UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3785
Fidelity Advisor Series I
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
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 |
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Date of reporting period: | November 30, 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 Class A, Class T, Class C, Class I and Class Z Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (6.12)% | 11.24% | 6.10% |
Class T (incl. 3.50% sales charge) | (4.09)% | 11.54% | 6.15% |
Class C (incl. contingent deferred sales charge) | (2.11)% | 11.73% | 5.94% |
Class I | (0.12)% | 12.91% | 7.08% |
Class Z | 0.02% | 13.01% | 7.13% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on August 13, 2013. Returns prior to August 13, 2013, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Equity Growth Fund - Class A on November 30, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186130875_740.jpg)
Period Ending Values | ||
$18,082 | Fidelity Advisor® Equity Growth Fund - Class A | |
$21,953 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.’s June 23 vote to exit the European Union – dubbed “Brexit” – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager Jason Weiner: For the year, most of the fund’s share classes (excluding sales charges, if applicable) modestly declined, underperforming the 4.25% gain of the benchmark Russell 3000 Growth Index. Versus the benchmark, picks in health care detracted most, with a non-index stake in Canada-based Valeant Pharmaceuticals International the fund’s largest individual detractor. Several factors contributed to the stock’s decline, including allegations of improper sales practices at the firm. Valeant also announced an accounting error that it said would likely lead to financial restatements. In June, the company paid $47 million to settle the U.S. Department of Justice investigation into its drug-pricing practices. We had sold our position in Valeant by period end. Gilead Sciences was another detractor and a large fund position. The stock was hurt by broad pricing pressures for biotechs, along with concerns about increased competition and expectations for slowing growth for Gilead’s hepatitis C drugs. Conversely, Facebook, the fund's largest holding, was its biggest relative contributor. The fund's shares rose about 13% on the strength of the company's revenue from mobile advertising, increasing sales of video advertisements, and ads on its mobile application Instagram.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Facebook, Inc. Class A | 9.2 | 12.6 |
Alphabet, Inc. Class A | 6.2 | 8.1 |
Amazon.com, Inc. | 3.9 | 3.2 |
Electronic Arts, Inc. | 3.1 | 2.3 |
Apple, Inc. | 3.1 | 0.0 |
Charter Communications, Inc. Class A | 2.9 | 0.0 |
Home Depot, Inc. | 2.6 | 2.5 |
Reynolds American, Inc. | 2.0 | 1.7 |
UnitedHealth Group, Inc. | 1.9 | 0.0 |
Global Payments, Inc. | 1.7 | 0.9 |
36.6 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 38.5 | 39.1 |
Consumer Discretionary | 18.1 | 15.3 |
Health Care | 13.9 | 12.2 |
Consumer Staples | 8.5 | 6.7 |
Industrials | 7.2 | 9.9 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016 * | ||
Stocks and Equity Futures | 97.9% | |
Convertible Securities | 1.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.0% |
* Foreign Investments 7.4%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 97.3% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 18.0% | |||
Diversified Consumer Services - 0.9% | |||
Bright Horizons Family Solutions, Inc. (a) | 166,600 | $11,465 | |
Houghton Mifflin Harcourt Co. (a) | 221,900 | 2,452 | |
Nord Anglia Education, Inc. (a) | 249,236 | 5,982 | |
ServiceMaster Global Holdings, Inc. (a) | 66,700 | 2,549 | |
22,448 | |||
Hotels, Restaurants & Leisure - 3.8% | |||
Buffalo Wild Wings, Inc. (a) | 12,800 | 2,158 | |
Dave & Buster's Entertainment, Inc. (a) | 388,700 | 18,211 | |
Domino's Pizza, Inc. | 62,200 | 10,452 | |
Papa John's International, Inc. | 160,800 | 14,208 | |
Popeyes Louisiana Kitchen, Inc. (a) | 116,700 | 6,988 | |
Starbucks Corp. | 694,002 | 40,231 | |
Wingstop, Inc. | 149,500 | 4,588 | |
96,836 | |||
Internet & Direct Marketing Retail - 5.0% | |||
Amazon.com, Inc. (a) | 134,100 | 100,651 | |
Ctrip.com International Ltd. ADR (a) | 291,800 | 13,198 | |
Netflix, Inc. (a) | 83,300 | 9,746 | |
NutriSystem, Inc. | 122,400 | 4,498 | |
128,093 | |||
Leisure Products - 0.0% | |||
NJOY, Inc. (a)(b) | 202,642 | 0 | |
Media - 3.5% | |||
Charter Communications, Inc. Class A (a) | 267,600 | 73,673 | |
Cinemark Holdings, Inc. | 135,700 | 5,406 | |
Sirius XM Holdings, Inc. (c) | 2,264,400 | 10,348 | |
89,427 | |||
Multiline Retail - 0.6% | |||
Dollar Tree, Inc. (a) | 100,000 | 8,816 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 211,800 | 6,365 | |
15,181 | |||
Specialty Retail - 3.4% | |||
AutoZone, Inc. (a) | 21,800 | 17,073 | |
Five Below, Inc. (a) | 5,700 | 224 | |
Home Depot, Inc. | 518,244 | 67,061 | |
MarineMax, Inc. (a) | 209,400 | 3,937 | |
88,295 | |||
Textiles, Apparel & Luxury Goods - 0.8% | |||
Kate Spade & Co. (a) | 824,824 | 12,249 | |
LVMH Moet Hennessy - Louis Vuitton SA | 40,002 | 7,279 | |
19,528 | |||
TOTAL CONSUMER DISCRETIONARY | 459,808 | ||
CONSUMER STAPLES - 8.5% | |||
Beverages - 3.8% | |||
Anheuser-Busch InBev SA NV ADR | 112,400 | 11,608 | |
Constellation Brands, Inc. Class A (sub. vtg.) | 71,000 | 10,731 | |
Kweichow Moutai Co. Ltd. (A Shares) | 64,130 | 2,973 | |
Molson Coors Brewing Co. Class B | 206,400 | 20,233 | |
PepsiCo, Inc. | 124,500 | 12,462 | |
Pernod Ricard SA ADR | 241,700 | 5,044 | |
The Coca-Cola Co. | 852,826 | 34,412 | |
97,463 | |||
Food & Staples Retailing - 0.8% | |||
Costco Wholesale Corp. | 106,100 | 15,927 | |
Whole Foods Market, Inc. | 162,383 | 4,935 | |
20,862 | |||
Food Products - 0.5% | |||
Danone SA | 189,500 | 11,869 | |
Gores Holdings, Inc. (a) | 57,100 | 739 | |
12,608 | |||
Household Products - 0.5% | |||
Procter & Gamble Co. | 161,900 | 13,350 | |
Personal Products - 0.9% | |||
Estee Lauder Companies, Inc. Class A | 176,900 | 13,745 | |
Herbalife Ltd. (a) | 200,500 | 9,831 | |
23,576 | |||
Tobacco - 2.0% | |||
Reynolds American, Inc. | 935,100 | 50,589 | |
TOTAL CONSUMER STAPLES | 218,448 | ||
ENERGY - 1.0% | |||
Energy Equipment & Services - 0.8% | |||
Baker Hughes, Inc. | 323,100 | 20,785 | |
Oil, Gas & Consumable Fuels - 0.2% | |||
Golar LNG Ltd. | 247,548 | 6,040 | |
TOTAL ENERGY | 26,825 | ||
FINANCIALS - 6.5% | |||
Banks - 1.8% | |||
First Republic Bank | 302,800 | 24,799 | |
HDFC Bank Ltd. | 68,446 | 1,370 | |
JPMorgan Chase & Co. | 216,600 | 17,365 | |
Metro Bank PLC | 50,300 | 2,055 | |
45,589 | |||
Capital Markets - 3.9% | |||
BlackRock, Inc. Class A | 30,800 | 11,420 | |
CME Group, Inc. | 331,054 | 37,379 | |
E*TRADE Financial Corp. (a) | 591,745 | 20,421 | |
JMP Group, Inc. | 141,100 | 879 | |
MSCI, Inc. | 191,600 | 15,098 | |
S&P Global, Inc. | 135,975 | 16,180 | |
101,377 | |||
Diversified Financial Services - 0.5% | |||
Bats Global Markets, Inc.(c) | 86,900 | 2,763 | |
Berkshire Hathaway, Inc. Class B (a) | 55,800 | 8,785 | |
Quantenna Communications, Inc. | 83,100 | 1,578 | |
13,126 | |||
Thrifts & Mortgage Finance - 0.3% | |||
Essent Group Ltd. (a) | 229,300 | 6,998 | |
TOTAL FINANCIALS | 167,090 | ||
HEALTH CARE - 13.9% | |||
Biotechnology - 6.3% | |||
Advanced Accelerator Applications SA sponsored ADR | 102,800 | 3,007 | |
Alexion Pharmaceuticals, Inc. (a) | 104,400 | 12,798 | |
Amgen, Inc. | 232,900 | 33,554 | |
Biogen, Inc. (a) | 33,800 | 9,940 | |
BioMarin Pharmaceutical, Inc. (a) | 161,679 | 13,845 | |
Cytokinetics, Inc. (a) | 73,800 | 886 | |
Cytokinetics, Inc. warrants 6/25/17 (a) | 856,620 | 965 | |
Gilead Sciences, Inc. | 170,147 | 12,540 | |
Insmed, Inc. (a) | 744,220 | 10,159 | |
Regeneron Pharmaceuticals, Inc. (a) | 43,100 | 16,345 | |
Samsung Biologics Co. Ltd. (a) | 2,090 | 273 | |
TESARO, Inc. (a) | 109,300 | 14,831 | |
Vertex Pharmaceuticals, Inc. (a) | 395,000 | 32,236 | |
161,379 | |||
Health Care Equipment & Supplies - 4.2% | |||
Boston Scientific Corp. (a) | 956,900 | 19,578 | |
Danaher Corp. | 290,314 | 22,694 | |
DexCom, Inc. (a) | 74,900 | 4,890 | |
Edwards Lifesciences Corp. (a) | 65,700 | 5,443 | |
Intuitive Surgical, Inc. (a) | 34,800 | 22,402 | |
Medtronic PLC | 235,200 | 17,172 | |
Novadaq Technologies, Inc. (a) | 683,800 | 5,436 | |
ResMed, Inc. | 138,400 | 8,509 | |
The Cooper Companies, Inc. | 14,800 | 2,434 | |
108,558 | |||
Health Care Providers & Services - 2.5% | |||
HealthEquity, Inc. (a) | 223,200 | 9,939 | |
Henry Schein, Inc. (a) | 25,900 | 3,858 | |
UnitedHealth Group, Inc. | 308,900 | 48,905 | |
VCA, Inc. (a) | 24,600 | 1,540 | |
64,242 | |||
Pharmaceuticals - 0.9% | |||
Allergan PLC | 53,800 | 10,453 | |
Collegium Pharmaceutical, Inc. (a)(c) | 69,300 | 1,148 | |
Patheon NV | 37,800 | 1,034 | |
Zoetis, Inc. Class A | 192,100 | 9,678 | |
22,313 | |||
TOTAL HEALTH CARE | 356,492 | ||
INDUSTRIALS - 7.2% | |||
Aerospace & Defense - 0.8% | |||
Rolls-Royce Holdings PLC | 273,000 | 2,308 | |
Taser International, Inc. (a)(c) | 392,000 | 10,674 | |
TransDigm Group, Inc. | 33,377 | 8,392 | |
21,374 | |||
Airlines - 0.3% | |||
Ryanair Holdings PLC sponsored ADR | 106,660 | 8,516 | |
Building Products - 0.3% | |||
A.O. Smith Corp. | 167,176 | 8,130 | |
Commercial Services & Supplies - 0.8% | |||
KAR Auction Services, Inc. | 461,600 | 19,461 | |
Electrical Equipment - 1.3% | |||
Acuity Brands, Inc. | 55,500 | 13,953 | |
Fortive Corp. | 337,107 | 18,538 | |
32,491 | |||
Industrial Conglomerates - 0.9% | |||
Honeywell International, Inc. | 129,100 | 14,710 | |
Roper Technologies, Inc. | 49,569 | 8,977 | |
23,687 | |||
Machinery - 0.3% | |||
Allison Transmission Holdings, Inc. | 181,600 | 6,024 | |
Rational AG | 3,600 | 1,585 | |
7,609 | |||
Professional Services - 2.4% | |||
Equifax, Inc. | 128,600 | 14,718 | |
Robert Half International, Inc. | 173,600 | 7,789 | |
TransUnion Holding Co., Inc. (a) | 248,600 | 7,416 | |
WageWorks, Inc. (a) | 418,792 | 30,928 | |
60,851 | |||
Road & Rail - 0.1% | |||
Swift Transporation Co. (a)(c) | 57,400 | 1,433 | |
TOTAL INDUSTRIALS | 183,552 | ||
INFORMATION TECHNOLOGY - 37.5% | |||
Electronic Equipment & Components - 0.2% | |||
CDW Corp. | 100,000 | 5,124 | |
Internet Software & Services - 18.4% | |||
Akamai Technologies, Inc. (a) | 256,100 | 17,082 | |
Alphabet, Inc. Class A (a) | 204,450 | 158,629 | |
CommerceHub, Inc.: | |||
Series A, (a) | 377,849 | 5,713 | |
Series C, (a) | 205,960 | 3,038 | |
Facebook, Inc. Class A (a) | 1,988,600 | 235,490 | |
GoDaddy, Inc. (a) | 294,900 | 10,422 | |
Just Dial Ltd. (a) | 139,013 | 769 | |
Just Eat Holding Ltd.(a) | 825,555 | 6,048 | |
Shopify, Inc. Class A (a) | 40,800 | 1,700 | |
Stamps.com, Inc. (a)(c) | 126,400 | 13,424 | |
Twilio, Inc. Class A(c) | 136,800 | 4,640 | |
VeriSign, Inc. (a)(c) | 170,600 | 13,452 | |
470,407 | |||
IT Services - 4.3% | |||
Cognizant Technology Solutions Corp. Class A (a) | 116,300 | 6,406 | |
Fidelity National Information Services, Inc. | 102,600 | 7,920 | |
Gartner, Inc. (a) | 29,200 | 3,002 | |
Global Payments, Inc. | 616,800 | 42,282 | |
Square, Inc. (a) | 103,800 | 1,343 | |
Vantiv, Inc. (a) | 156,500 | 8,831 | |
Visa, Inc. Class A | 503,832 | 38,956 | |
108,740 | |||
Semiconductors & Semiconductor Equipment - 1.1% | |||
Maxim Integrated Products, Inc. | 277,228 | 10,887 | |
Monolithic Power Systems, Inc. | 125,832 | 10,323 | |
Qualcomm, Inc. | 115,000 | 7,835 | |
29,045 | |||
Software - 9.9% | |||
Activision Blizzard, Inc. | 276,500 | 10,123 | |
Adobe Systems, Inc. (a) | 376,000 | 38,657 | |
Autodesk, Inc. (a) | 55,600 | 4,037 | |
Blackbaud, Inc. | 41,000 | 2,574 | |
Computer Modelling Group Ltd. | 541,600 | 3,548 | |
CyberArk Software Ltd. (a) | 53,100 | 2,709 | |
Electronic Arts, Inc. (a) | 1,010,645 | 80,084 | |
Intuit, Inc. | 81,700 | 9,288 | |
Microsoft Corp. | 429,700 | 25,894 | |
Mobileye NV (a)(c) | 759,800 | 28,287 | |
RealPage, Inc. (a) | 114,100 | 3,263 | |
Red Hat, Inc. (a) | 193,800 | 15,332 | |
Salesforce.com, Inc. (a) | 424,992 | 30,599 | |
254,395 | |||
Technology Hardware, Storage & Peripherals - 3.6% | |||
Apple, Inc. | 703,200 | 77,718 | |
Samsung Electronics Co. Ltd. | 9,061 | 13,435 | |
91,153 | |||
TOTAL INFORMATION TECHNOLOGY | 958,864 | ||
MATERIALS - 1.7% | |||
Chemicals - 1.0% | |||
CF Industries Holdings, Inc. | 2,600 | 75 | |
Monsanto Co. | 128,900 | 13,239 | |
Sherwin-Williams Co. | 44,500 | 11,956 | |
25,270 | |||
Construction Materials - 0.7% | |||
Eagle Materials, Inc. | 179,400 | 17,438 | |
TOTAL MATERIALS | 42,708 | ||
REAL ESTATE - 2.8% | |||
Equity Real Estate Investment Trusts (REITs) - 1.4% | |||
American Tower Corp. | 347,200 | 35,508 | |
Real Estate Management & Development - 1.4% | |||
Realogy Holdings Corp. | 1,465,618 | 35,395 | |
TOTAL REAL ESTATE | 70,903 | ||
TELECOMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.2% | |||
SBA Communications Corp. Class A (a) | 53,500 | 5,294 | |
TOTAL COMMON STOCKS | |||
(Cost $2,110,995) | 2,489,984 | ||
Convertible Preferred Stocks - 1.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Household Durables - 0.1% | |||
Blu Homes, Inc. Series A, 5.00% (a)(b) | 875,350 | 1,751 | |
INFORMATION TECHNOLOGY - 1.0% | |||
Internet Software & Services - 0.9% | |||
Uber Technologies, Inc. Series D, 8.00% (a)(b) | 485,012 | 23,655 | |
IT Services - 0.1% | |||
AppNexus, Inc. Series E (a)(b) | 105,425 | 2,741 | |
TOTAL INFORMATION TECHNOLOGY | 26,396 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $13,680) | 28,147 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.2% | |||
U.S. Treasury Bills, yield at date of purchase 0.3% to 0.37% 12/29/16 to 2/2/17 (d) | |||
(Cost $6,267) | 6,270 | 6,267 | |
Shares | Value (000s) | ||
Money Market Funds - 6.1% | |||
Fidelity Cash Central Fund, 0.39% (e) | 103,359,213 | $103,380 | |
Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 53,013,152 | 53,024 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $156,379) | 156,404 | ||
TOTAL INVESTMENT PORTFOLIO - 104.7% | |||
(Cost $2,287,321) | 2,680,802 | ||
NET OTHER ASSETS (LIABILITIES) - (4.7)% | (120,291) | ||
NET ASSETS - 100% | $2,560,511 |
Futures Contracts | |||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||
Equity Index Contracts | |||
84 CME E-mini S&P 500 Index Contracts (United States) | Dec. 2016 | 9,235 | $117 |
59 ICE Russell 1000 Growth Index Contracts (United States) | Dec. 2016 | 6,141 | 51 |
TOTAL FUTURES CONTRACTS | $168 |
The face value of futures purchased as a percentage of Net Assets is 0.6%
Values shown as $0 may reflect amounts less than $500.
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 $28,147,000 or 1.1% of net assets.
(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 $1,878,000.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm,are available on the SEC's website or upon request.
(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) |
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 | $693 |
Fidelity Securities Lending Cash Central Fund | 580 |
Total | $1,273 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $461,559 | $459,808 | $-- | $1,751 |
Consumer Staples | 218,448 | 203,606 | 14,842 | -- |
Energy | 26,825 | 26,825 | -- | -- |
Financials | 167,090 | 165,720 | 1,370 | -- |
Health Care | 356,492 | 355,527 | 965 | -- |
Industrials | 183,552 | 181,244 | 2,308 | -- |
Information Technology | 985,260 | 958,095 | 769 | 26,396 |
Materials | 42,708 | 42,708 | -- | -- |
Real Estate | 70,903 | 70,903 | -- | -- |
Telecommunication Services | 5,294 | 5,294 | -- | -- |
U.S. Government and Government Agency Obligations | 6,267 | -- | 6,267 | -- |
Money Market Funds | 156,404 | 156,404 | -- | -- |
Total Investments in Securities: | $2,680,802 | $2,626,134 | $26,521 | $28,147 |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $168 | $168 | $-- | $-- |
Total Assets | $168 | $168 | $-- | $-- |
Total Derivative Instruments: | $168 | $168 | $-- | $-- |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Beginning Balance | $25,124 | |||
Net Realized Gain (Loss) on Investment Securities | -- | |||
Net Unrealized Gain (Loss) on Investment Securities | 3,023 | |||
Cost of Purchases | -- | |||
Proceeds of Sales | -- | |||
Amortization/Accretion | -- | |||
Transfers into Level 3 | -- | |||
Transfers out of Level 3 | -- | |||
Ending Balance | $28,147 | |||
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2016 | $3,023 |
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.
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of November 30, 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 | |
(Amounts in thousands) | ||
Equity Risk | ||
Futures Contracts(a) | $168 | $- |
Total Equity Risk | 168 | - |
Total Value of Derivatives | $168 | $- |
(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) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $51,349) — See accompanying schedule: Unaffiliated issuers (cost $2,130,942) | $2,524,398 | |
Fidelity Central Funds (cost $156,379) | 156,404 | |
Total Investments (cost $2,287,321) | $2,680,802 | |
Receivable for investments sold | 943 | |
Receivable for fund shares sold | 1,192 | |
Dividends receivable | 2,628 | |
Interest receivable | 1 | |
Distributions receivable from Fidelity Central Funds | 92 | |
Prepaid expenses | 6 | |
Other receivables | 144 | |
Total assets | 2,685,808 | |
Liabilities | ||
Payable for investments purchased | $63,461 | |
Payable for fund shares redeemed | 6,017 | |
Accrued management fee | 1,174 | |
Distribution and service plan fees payable | 777 | |
Payable for daily variation margin for derivative instruments | 170 | |
Other affiliated payables | 492 | |
Other payables and accrued expenses | 192 | |
Collateral on securities loaned, at value | 53,014 | |
Total liabilities | 125,297 | |
Net Assets | $2,560,511 | |
Net Assets consist of: | ||
Paid in capital | $2,024,329 | |
Accumulated net investment loss | (10,392) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 152,931 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 393,643 | |
Net Assets | $2,560,511 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($803,315 ÷ 8,363.6 shares) | $96.05 | |
Maximum offering price per share (100/94.25 of $96.05) | $101.91 | |
Class T: | ||
Net Asset Value and redemption price per share ($1,129,340 ÷ 11,921.3 shares) | $94.73 | |
Maximum offering price per share (100/96.50 of $94.73) | $98.17 | |
Class C: | ||
Net Asset Value and offering price per share ($161,196 ÷ 1,904.0 shares)(a) | $84.66 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($433,602 ÷ 4,186.5 shares) | $103.57 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($33,058 ÷ 317.7 shares) | $104.05 |
(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 | Year ended November 30, 2016 | |
Investment Income | ||
Dividends | $19,978 | |
Interest | 8 | |
Income from Fidelity Central Funds | 1,273 | |
Total income | 21,259 | |
Expenses | ||
Management fee | $14,665 | |
Transfer agent fees | 5,243 | |
Distribution and service plan fees | 9,808 | |
Accounting and security lending fees | 801 | |
Custodian fees and expenses | 50 | |
Independent trustees' fees and expenses | 12 | |
Registration fees | 111 | |
Audit | 76 | |
Legal | 9 | |
Miscellaneous | 22 | |
Total expenses before reductions | 30,797 | |
Expense reductions | (99) | 30,698 |
Net investment income (loss) | (9,439) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 155,112 | |
Fidelity Central Funds | 52 | |
Foreign currency transactions | (58) | |
Futures contracts | 557 | |
Total net realized gain (loss) | 155,663 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (165,561) | |
Assets and liabilities in foreign currencies | 3 | |
Futures contracts | 168 | |
Total change in net unrealized appreciation (depreciation) | (165,390) | |
Net gain (loss) | (9,727) | |
Net increase (decrease) in net assets resulting from operations | $(19,166) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(9,439) | $(6,975) |
Net realized gain (loss) | 155,663 | 205,321 |
Change in net unrealized appreciation (depreciation) | (165,390) | (53,557) |
Net increase (decrease) in net assets resulting from operations | (19,166) | 144,789 |
Distributions to shareholders from net realized gain | (69,494) | – |
Share transactions - net increase (decrease) | (226,001) | (115,712) |
Total increase (decrease) in net assets | (314,661) | 29,077 |
Net Assets | ||
Beginning of period | 2,875,172 | 2,846,095 |
End of period | $2,560,511 | $2,875,172 |
Other Information | ||
Accumulated net investment loss end of period | $(10,392) | $(9,672) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Growth Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $98.79 | $93.78 | $80.87 | $61.77 | $54.56 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.24) | (.13) | (.07) | (.05) | .02 |
Net realized and unrealized gain (loss) | (.12) | 5.14 | 12.98 | 19.15 | 7.30 |
Total from investment operations | (.36) | 5.01 | 12.91 | 19.10 | 7.32 |
Distributions from net realized gain | (2.38) | – | – | – | (.11) |
Net asset value, end of period | $96.05 | $98.79 | $93.78 | $80.87 | $61.77 |
Total ReturnB,C | (.39)% | 5.34% | 15.96% | 30.92% | 13.45% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.05% | 1.05% | 1.07% | 1.11% | 1.14% |
Expenses net of fee waivers, if any | 1.05% | 1.05% | 1.07% | 1.11% | 1.14% |
Expenses net of all reductions | 1.05% | 1.04% | 1.07% | 1.10% | 1.14% |
Net investment income (loss) | (.25)% | (.13)% | (.08)% | (.07)% | .04% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $803 | $887 | $853 | $772 | $632 |
Portfolio turnover rateF | 60% | 63% | 49%G | 81% | 73% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Growth Fund Class T
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $97.68 | $92.94 | $80.31 | $61.45 | $54.26 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.44) | (.34) | (.25) | (.17) | (.08) |
Net realized and unrealized gain (loss) | (.13) | 5.08 | 12.88 | 19.03 | 7.27 |
Total from investment operations | (.57) | 4.74 | 12.63 | 18.86 | 7.19 |
Distributions from net realized gain | (2.38) | – | – | – | – |
Net asset value, end of period | $94.73 | $97.68 | $92.94 | $80.31 | $61.45 |
Total ReturnB,C | (.62)% | 5.10% | 15.73% | 30.69% | 13.25% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.28% | 1.27% | 1.28% | 1.29% | 1.31% |
Expenses net of fee waivers, if any | 1.27% | 1.27% | 1.28% | 1.29% | 1.31% |
Expenses net of all reductions | 1.27% | 1.27% | 1.28% | 1.28% | 1.31% |
Net investment income (loss) | (.48)% | (.36)% | (.29)% | (.25)% | (.13)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $1,129 | $1,306 | $1,368 | $1,283 | $1,108 |
Portfolio turnover rateF | 60% | 63% | 49%G | 81% | 73% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Growth Fund Class C
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $88.01 | $84.18 | $73.13 | $56.27 | $49.96 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.84) | (.77) | (.66) | (.50) | (.37) |
Net realized and unrealized gain (loss) | (.13) | 4.60 | 11.71 | 17.36 | 6.68 |
Total from investment operations | (.97) | 3.83 | 11.05 | 16.86 | 6.31 |
Distributions from net realized gain | (2.38) | – | – | – | – |
Net asset value, end of period | $84.66 | $88.01 | $84.18 | $73.13 | $56.27 |
Total ReturnB,C | (1.15)% | 4.55% | 15.11% | 29.96% | 12.63% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.81% | 1.81% | 1.81% | 1.84% | 1.86% |
Expenses net of fee waivers, if any | 1.81% | 1.81% | 1.81% | 1.84% | 1.86% |
Expenses net of all reductions | 1.81% | 1.80% | 1.81% | 1.83% | 1.86% |
Net investment income (loss) | (1.01)% | (.89)% | (.83)% | (.79)% | (.68)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $161 | $183 | $175 | $157 | $133 |
Portfolio turnover rateF | 60% | 63% | 49%G | 81% | 73% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the contingent deferred sales charge.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Growth Fund Class I
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $106.06 | $100.40 | $86.32 | $65.92 | $58.24 |
Income from Investment Operations | |||||
Net investment income (loss)A | .02 | .15 | .20 | .20 | .25 |
Net realized and unrealized gain (loss) | (.13) | 5.51 | 13.88 | 20.40 | 7.75 |
Total from investment operations | (.11) | 5.66 | 14.08 | 20.60 | 8.00 |
Distributions from net investment income | – | – | – | (.20) | – |
Distributions from net realized gain | (2.38) | – | – | – | (.32) |
Total distributions | (2.38) | – | – | (.20) | (.32) |
Net asset value, end of period | $103.57 | $106.06 | $100.40 | $86.32 | $65.92 |
Total ReturnB | (.12)% | 5.64% | 16.31% | 31.36% | 13.83% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | .78% | .78% | .77% | .78% | .80% |
Expenses net of fee waivers, if any | .78% | .77% | .77% | .78% | .80% |
Expenses net of all reductions | .77% | .77% | .77% | .77% | .79% |
Net investment income (loss) | .02% | .14% | .21% | .27% | .39% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $434 | $463 | $432 | $1,266 | $1,063 |
Portfolio turnover rateE | 60% | 63% | 49%F | 81% | 73% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C 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.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or 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.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F 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
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 | .17 | .29 | .33 | .09 |
Net realized and unrealized gain (loss) | (.13) | 5.51 | 13.90 | 7.78 |
Total from investment operations | .04 | 5.80 | 14.23 | 7.87 |
Distributions from net realized gain | (2.38) | – | – | – |
Net asset value, end of period | $104.05 | $106.39 | $100.59 | $86.36 |
Total ReturnC,D | .02% | 5.77% | 16.48% | 10.03% |
Ratios to Average Net AssetsE,F | ||||
Expenses before reductions | .64% | .64% | .64% | .64%G |
Expenses net of fee waivers, if any | .63% | .64% | .64% | .64%G |
Expenses net of all reductions | .63% | .63% | .64% | .63%G |
Net investment income (loss) | .16% | .28% | .35% | .38%G |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $33,058 | $25,638 | $122 | $110 |
Portfolio turnover rateH | 60% | 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
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available, are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. 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.
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 11/30/16 | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $28,147 | Market approach | Discount rate | 15.0% - 50.0% / 32.5% | Decrease |
Transaction price | $26.00 - $48.77 / $46.41 | Increase | |||
Discount for lack of marketability | 20.0% | Decrease | |||
Liquidity preference | $3.23 | Increase | |||
Market comparable | Price/Earnings multiple (P/E) | 5.3 | Increase | ||
Recovery value | Recovery value | 0.0% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, partnerships, non-taxable dividends, deferred trustees compensation, capital loss carryforwards, 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 | $515,395 |
Gross unrealized depreciation | (121,987) |
Net unrealized appreciation (depreciation) on securities | $393,408 |
Tax Cost | $2,287,394 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $153,172 |
Net unrealized appreciation (depreciation) on securities and other investments | $ 393,401 |
The Fund intends to elect to defer to its next fiscal year $10,260 of ordinary losses recognized during the period January 1, 2016 to November 30, 2016.
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Long-term Capital Gains | $69,494 | $ 0 |
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 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 $557 and a change in net unrealized appreciation (depreciation) of $168 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 $1,523,059 and $1,709,196, 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. For the reporting period, the total annual 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% | $2,075 | $7 |
Class T | .25% | .25% | 5,982 | – |
Class B | .75% | .25% | 45 | 34 |
Class C | .75% | .25% | 1,706 | 126 |
$9,808 | $167 |
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 | $95 |
Class T | 26 |
Class B(a) | 1 |
Class C(a) | 9 |
$131 |
(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 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 | |
Class A | $1,756 | .21 |
Class T | 2,239 | .19 |
Class B | 12 | .28 |
Class C | 381 | .22 |
Class I | 841 | .19 |
Class Z | 14 | .05 |
$5,243 |
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 $27 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 $7 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 $580, including $117 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 $78 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 $21.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 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 | $– |
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 | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 1,246 | 1,688 | $115,920 | $162,907 |
Reinvestment of distributions | 205 | – | 19,967 | – |
Shares redeemed | (2,066) | (1,807) | (193,544) | (173,253) |
Net increase (decrease) | (615) | (119) | $(57,657) | $(10,346) |
Class T | ||||
Shares sold | 1,348 | 1,492 | $123,818 | $141,497 |
Reinvestment of distributions | 321 | – | 30,879 | – |
Shares redeemed | (3,117) | (2,839) | (288,966) | (269,251) |
Net increase (decrease) | (1,448) | (1,347) | $(134,269) | $(127,754) |
Class B | ||||
Shares sold | 2 | 2 | $126 | $164 |
Reinvestment of distributions | 3 | – | 278 | – |
Shares redeemed | (129) | (95) | (10,265) | (7,987) |
Net increase (decrease) | (124) | (93) | $(9,861) | $(7,823) |
Class C | ||||
Shares sold | 215 | 365 | $17,757 | $31,362 |
Reinvestment of distributions | 52 | – | 4,525 | – |
Shares redeemed | (442) | (360) | (36,398) | (30,838) |
Net increase (decrease) | (175) | 5 | $(14,116) | $524 |
Class I | ||||
Shares sold | 822 | 1,565 | $82,756 | $159,813 |
Reinvestment of distributions | 95 | – | 9,952 | – |
Shares redeemed | (1,094) | (1,508) | (110,841) | (155,242) |
Net increase (decrease) | (177) | 57 | $(18,133) | $4,571 |
Class Z | ||||
Shares sold | 111 | 259 | $11,539 | $27,086 |
Reinvestment of distributions | 6 | – | 579 | – |
Shares redeemed | (40) | (19) | (4,083) | (1,970) |
Net increase (decrease) | 77 | 240 | $8,035 | $25,116 |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Equity Growth Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Equity Growth Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Equity Growth Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | 1.05% | |||
Actual | $1,000.00 | $1,013.70 | $5.29 | |
Hypothetical-C | $1,000.00 | $1,019.75 | $5.30 | |
Class T | 1.27% | |||
Actual | $1,000.00 | $1,012.50 | $6.39 | |
Hypothetical-C | $1,000.00 | $1,018.65 | $6.41 | |
Class C | 1.81% | |||
Actual | $1,000.00 | $1,009.80 | $9.09 | |
Hypothetical-C | $1,000.00 | $1,015.95 | $9.12 | |
Class I | .78% | |||
Actual | $1,000.00 | $1,015.10 | $3.93 | |
Hypothetical-C | $1,000.00 | $1,021.10 | $3.94 | |
Class Z | .63% | |||
Actual | $1,000.00 | $1,015.70 | $3.17 | |
Hypothetical-C | $1,000.00 | $1,021.85 | $3.18 |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Equity Growth Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Equity Growth Fund | ||||
Class A | 12/28/16 | 12/27/16 | $0.000 | $5.721 |
1/17/17 | 1/13/17 | $0.000 | $0.112 | |
Class T | 12/28/16 | 12/27/16 | $0.000 | $5.721 |
1/17/17 | 1/13/17 | $0.000 | $0.112 | |
Class C | 12/28/16 | 12/27/16 | $0.000 | $5.721 |
1/17/17 | 1/13/17 | $0.000 | $0.112 | |
Class I | 12/28/16 | 12/27/16 | $0.000 | $5.721 |
1/17/17 | 1/13/17 | $0.000 | $0.112 | |
Class Z | 12/28/16 | 12/27/16 | $0.000 | $5.721 |
1/17/17 | 1/13/17 | $0.000 | $0.112 | |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30 2016, $152,382,649, or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Equity Growth Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Equity Growth Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190621411.jpg)
Fidelity Advisor Equity Growth Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190621759.jpg)
EPG-ANN-0117
1.539469.119
Fidelity Advisor® Dividend Growth Fund Class A, Class T, Class C, Class I and Class Z Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (1.64)% | 11.24% | 5.18% |
Class T (incl. 3.50% sales charge) | 0.50% | 11.52% | 5.19% |
Class C (incl. contingent deferred sales charge) | 2.61% | 11.74% | 5.03% |
Class I | 4.60% | 12.85% | 6.12% |
Class Z | 4.80% | 12.98% | 6.18% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on August 13, 2013. Returns prior to August 13, 2013, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Dividend Growth Fund - Class A on November 30, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186133680_740.jpg)
Period Ending Values | ||
$16,571 | Fidelity Advisor® Dividend Growth Fund - Class A | |
$19,462 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.’s June 23 vote to exit the European Union – dubbed “Brexit” – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager Ramona Persaud: For the year, the fund’s shares classes (excluding sales charges, if applicable) advanced roughly 4% to 5%, lagging the benchmark S&P 500 index. Versus the benchmark, security selection hurt most, especially within consumer staples and industrials. A non-benchmark position in Israel-based Teva Pharmaceutical Industries was the biggest relative detractor. Teva shares returned about -39% for the fund, largely due to concerns regarding the pricing environment for generic drugs. In addition, investors grew critical when Teva’s acquisition of Allergan's generic-drug business took longer than anticipated; the deal closed in August. Another notable detractor was retail pharmacy and health care company CVS Health. In November, the stock fell after the firm warned of lower-than-expected profitability due to increasing competition. On the positive side, timely positioning in Gilead Sciences was the biggest relative contributor. We beneficially avoided some of the losses the stock experienced through the end of June, and then established an underweighted position in July. This stance helped because the stock continued to struggle due to broad pricing pressure and concerns about increased competition.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Apple, Inc. | 3.6 | 4.1 |
Microsoft Corp. | 3.4 | 3.1 |
Wells Fargo & Co. | 3.0 | 2.4 |
Johnson & Johnson | 3.0 | 3.0 |
Bank of America Corp. | 2.9 | 1.7 |
Alphabet, Inc. Class C | 2.8 | 2.0 |
JPMorgan Chase & Co. | 2.7 | 2.5 |
Exxon Mobil Corp. | 2.6 | 2.8 |
Chevron Corp. | 2.5 | 2.4 |
Comcast Corp. Class A | 2.0 | 1.4 |
28.5 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 18.4 | 21.0 |
Financials | 18.0 | 16.5 |
Consumer Staples | 12.4 | 13.9 |
Health Care | 10.7 | 11.6 |
Consumer Discretionary | 9.6 | 8.7 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016 * | ||
Stocks | 94.0% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.9% |
* Foreign investments - 12.1%
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%
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 94.0% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 9.6% | |||
Diversified Consumer Services - 0.5% | |||
H&R Block, Inc. | 97,206 | $2,154 | |
Service Corp. International | 37,800 | 1,020 | |
ServiceMaster Global Holdings, Inc. (a) | 54,200 | 2,072 | |
5,246 | |||
Hotels, Restaurants & Leisure - 2.0% | |||
Cedar Fair LP (depositary unit) | 41,409 | 2,527 | |
Las Vegas Sands Corp. | 66,400 | 4,161 | |
McDonald's Corp. | 93,400 | 11,140 | |
Wyndham Worldwide Corp. | 32,352 | 2,329 | |
20,157 | |||
Internet & Direct Marketing Retail - 0.4% | |||
Liberty Interactive Corp. QVC Group Series A (a) | 165,700 | 3,432 | |
Media - 2.4% | |||
Charter Communications, Inc. Class A (a) | 14,200 | 3,909 | |
Comcast Corp. Class A | 276,925 | 19,249 | |
23,158 | |||
Multiline Retail - 0.5% | |||
Target Corp. | 64,500 | 4,982 | |
Specialty Retail - 3.3% | |||
AutoZone, Inc. (a) | 14,800 | 11,591 | |
Foot Locker, Inc. | 142,491 | 10,212 | |
Kingfisher PLC | 4,121 | 18 | |
L Brands, Inc. | 97,700 | 6,860 | |
Ross Stores, Inc. | 61,200 | 4,137 | |
32,818 | |||
Textiles, Apparel & Luxury Goods - 0.5% | |||
VF Corp. | 86,300 | 4,704 | |
TOTAL CONSUMER DISCRETIONARY | 94,497 | ||
CONSUMER STAPLES - 12.4% | |||
Beverages - 5.6% | |||
Anheuser-Busch InBev SA NV | 19,500 | 2,026 | |
Coca-Cola European Partners PLC | 59,400 | 1,928 | |
Constellation Brands, Inc. Class A (sub. vtg.) | 56,600 | 8,555 | |
Dr. Pepper Snapple Group, Inc. | 81,111 | 7,036 | |
Molson Coors Brewing Co. Class B | 87,000 | 8,529 | |
PepsiCo, Inc. | 141,800 | 14,194 | |
The Coca-Cola Co. | 308,910 | 12,465 | |
54,733 | |||
Food & Staples Retailing - 2.4% | |||
CVS Health Corp. | 167,700 | 12,894 | |
Kroger Co. | 110,920 | 3,583 | |
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 48,780 | 1,923 | |
Rite Aid Corp. (a) | 118,300 | 942 | |
Walgreens Boots Alliance, Inc. | 55,323 | 4,688 | |
24,030 | |||
Food Products - 0.5% | |||
Gores Holdings, Inc. (a) | 76,900 | 996 | |
Greencore Group PLC | 506,105 | 1,843 | |
Hilton Food Group PLC | 243,744 | 1,784 | |
4,623 | |||
Household Products - 1.5% | |||
Procter & Gamble Co. | 185,188 | 15,271 | |
Personal Products - 0.8% | |||
Coty, Inc. Class A | 405,584 | 7,588 | |
Tobacco - 1.6% | |||
British American Tobacco PLC (United Kingdom) | 83,657 | 4,579 | |
Reynolds American, Inc. | 213,700 | 11,561 | |
16,140 | |||
TOTAL CONSUMER STAPLES | 122,385 | ||
ENERGY - 9.2% | |||
Energy Equipment & Services - 0.4% | |||
Baker Hughes, Inc. | 58,400 | 3,757 | |
Oil, Gas & Consumable Fuels - 8.8% | |||
Chevron Corp. | 216,890 | 24,196 | |
ConocoPhillips Co. | 247,400 | 12,004 | |
Exxon Mobil Corp. | 293,222 | 25,598 | |
Imperial Oil Ltd. | 247,700 | 8,480 | |
Kinder Morgan, Inc. | 194,700 | 4,322 | |
Northern Oil & Gas, Inc. (a)(b) | 128,694 | 290 | |
PrairieSky Royalty Ltd. (b) | 119,900 | 2,927 | |
Suncor Energy, Inc. | 289,980 | 9,235 | |
87,052 | |||
TOTAL ENERGY | 90,809 | ||
FINANCIALS - 18.0% | |||
Banks - 13.7% | |||
Bank of America Corp. | 1,350,103 | 28,514 | |
Citigroup, Inc. | 303,223 | 17,099 | |
JPMorgan Chase & Co. | 334,693 | 26,832 | |
PacWest Bancorp | 159,000 | 8,149 | |
Stock Yards Bancorp, Inc. | 20,700 | 853 | |
SunTrust Banks, Inc. | 163,100 | 8,473 | |
U.S. Bancorp | 306,517 | 15,209 | |
Wells Fargo & Co. | 560,090 | 29,640 | |
134,769 | |||
Capital Markets - 2.1% | |||
Diamond Hill Investment Group, Inc. | 15,100 | 3,157 | |
MSCI, Inc. | 70,700 | 5,571 | |
S&P Global, Inc. | 101,567 | 12,085 | |
20,813 | |||
Consumer Finance - 0.4% | |||
Capital One Financial Corp. | 41,400 | 3,479 | |
Imperial Holdings, Inc. warrants 4/11/19 (a) | 4,481 | 0 | |
3,479 | |||
Diversified Financial Services - 1.0% | |||
Berkshire Hathaway, Inc. Class B (a) | 65,400 | 10,297 | |
Insurance - 0.8% | |||
Chubb Ltd. | 63,600 | 8,141 | |
TOTAL FINANCIALS | 177,499 | ||
HEALTH CARE - 10.7% | |||
Biotechnology - 1.9% | |||
Alexion Pharmaceuticals, Inc. (a) | 17,200 | 2,109 | |
Amgen, Inc. | 90,337 | 13,015 | |
Gilead Sciences, Inc. | 46,800 | 3,449 | |
United Therapeutics Corp. (a) | 1,200 | 151 | |
18,724 | |||
Health Care Equipment & Supplies - 2.2% | |||
Danaher Corp. | 123,094 | 9,622 | |
Medtronic PLC | 162,402 | 11,857 | |
21,479 | |||
Health Care Providers & Services - 0.4% | |||
McKesson Corp. | 30,432 | 4,376 | |
Health Care Technology - 0.2% | |||
CompuGroup Medical AG | 43,779 | 1,726 | |
Pharmaceuticals - 6.0% | |||
Allergan PLC | 56,900 | 11,056 | |
Astellas Pharma, Inc. | 45,800 | 639 | |
Bristol-Myers Squibb Co. | 26,600 | 1,501 | |
GlaxoSmithKline PLC | 167,900 | 3,133 | |
Johnson & Johnson | 264,002 | 29,383 | |
Sanofi SA sponsored ADR | 62,800 | 2,525 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 293,800 | 11,076 | |
59,313 | |||
TOTAL HEALTH CARE | 105,618 | ||
INDUSTRIALS - 8.1% | |||
Aerospace & Defense - 1.8% | |||
BWX Technologies, Inc. | 36,600 | 1,433 | |
General Dynamics Corp. | 46,500 | 8,154 | |
United Technologies Corp. | 70,800 | 7,627 | |
17,214 | |||
Commercial Services & Supplies - 0.3% | |||
Deluxe Corp. | 39,500 | 2,674 | |
Electrical Equipment - 1.5% | |||
AMETEK, Inc. | 224,800 | 10,644 | |
Fortive Corp. | 83,197 | 4,575 | |
15,219 | |||
Industrial Conglomerates - 3.5% | |||
General Electric Co. | 573,400 | 17,638 | |
Honeywell International, Inc. | 55,400 | 6,312 | |
Roper Technologies, Inc. | 60,096 | 10,884 | |
34,834 | |||
Machinery - 0.9% | |||
Caterpillar, Inc. | 68,100 | 6,508 | |
Wabtec Corp. | 31,700 | 2,684 | |
9,192 | |||
Professional Services - 0.1% | |||
Recruit Holdings Co. Ltd. | 24,800 | 954 | |
Trading Companies & Distributors - 0.0% | |||
Now, Inc. (a) | 17,720 | 382 | |
TOTAL INDUSTRIALS | 80,469 | ||
INFORMATION TECHNOLOGY - 18.4% | |||
Communications Equipment - 1.3% | |||
Cisco Systems, Inc. | 431,179 | 12,858 | |
Electronic Equipment & Components - 0.3% | |||
Dell Technologies, Inc. (a) | 59,207 | 3,171 | |
Internet Software & Services - 2.8% | |||
Alphabet, Inc. Class C (a) | 36,428 | 27,614 | |
IT Services - 3.0% | |||
Accenture PLC Class A | 102,000 | 12,182 | |
Fidelity National Information Services, Inc. | 91,698 | 7,078 | |
Sabre Corp. | 147,600 | 3,815 | |
Total System Services, Inc. | 140,700 | 6,925 | |
30,000 | |||
Semiconductors & Semiconductor Equipment - 1.2% | |||
NXP Semiconductors NV (a) | 11,800 | 1,170 | |
Qualcomm, Inc. | 149,578 | 10,191 | |
11,361 | |||
Software - 6.2% | |||
Activision Blizzard, Inc. | 316,517 | 11,588 | |
Constellation Software, Inc. | 2,400 | 1,119 | |
Micro Focus International PLC | 291,300 | 7,694 | |
Microsoft Corp. | 551,963 | 33,261 | |
Oracle Corp. | 124,528 | 5,005 | |
SAP AG | 23,762 | 1,984 | |
60,651 | |||
Technology Hardware, Storage & Peripherals - 3.6% | |||
Apple, Inc. | 324,024 | 35,811 | |
TOTAL INFORMATION TECHNOLOGY | 181,466 | ||
MATERIALS - 4.9% | |||
Chemicals - 3.9% | |||
E.I. du Pont de Nemours & Co. | 151,800 | 11,174 | |
LyondellBasell Industries NV Class A | 112,800 | 10,188 | |
Monsanto Co. | 71,900 | 7,385 | |
The Dow Chemical Co. | 88,300 | 4,920 | |
The Scotts Miracle-Gro Co. Class A | 23,535 | 2,148 | |
W.R. Grace & Co. | 37,700 | 2,460 | |
38,275 | |||
Containers & Packaging - 1.0% | |||
Ball Corp. | 130,192 | 9,772 | |
TOTAL MATERIALS | 48,047 | ||
REAL ESTATE - 0.9% | |||
Equity Real Estate Investment Trusts (REITs) - 0.9% | |||
American Tower Corp. | 86,400 | 8,836 | |
TELECOMMUNICATION SERVICES - 1.8% | |||
Diversified Telecommunication Services - 1.8% | |||
AT&T, Inc. | 449,200 | 17,353 | |
TOTAL COMMON STOCKS | |||
(Cost $758,797) | 926,979 | ||
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 | 727 | |
Shares | Value (000s) | ||
Money Market Funds - 6.1% | |||
Fidelity Cash Central Fund, 0.39% (c) | 57,729,550 | 57,741 | |
Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 2,700,110 | 2,701 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $60,434) | 60,442 | ||
TOTAL INVESTMENT PORTFOLIO - 100.2% | |||
(Cost $820,022) | 988,148 | ||
NET OTHER ASSETS (LIABILITIES) - (0.2)% | (1,879) | ||
NET ASSETS - 100% | $986,269 |
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) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $193 |
Fidelity Securities Lending Cash Central Fund | 26 |
Total | $219 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $94,497 | $94,479 | $18 | $-- |
Consumer Staples | 122,385 | 117,806 | 4,579 | -- |
Energy | 90,809 | 90,809 | -- | -- |
Financials | 177,499 | 177,499 | -- | -- |
Health Care | 105,618 | 101,846 | 3,772 | -- |
Industrials | 80,469 | 79,515 | 954 | -- |
Information Technology | 181,466 | 179,482 | 1,984 | -- |
Materials | 48,047 | 48,047 | -- | -- |
Real Estate | 8,836 | 8,836 | -- | -- |
Telecommunication Services | 17,353 | 17,353 | -- | -- |
Corporate Bonds | 727 | -- | -- | 727 |
Money Market Funds | 60,442 | 60,442 | -- | -- |
Total Investments in Securities: | $988,148 | $976,114 | $11,307 | $727 |
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 | 87.9% |
Ireland | 3.7% |
Canada | 2.2% |
United Kingdom | 1.9% |
Israel | 1.3% |
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) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $2,740) — See accompanying schedule: Unaffiliated issuers (cost $759,588) | $927,706 | |
Fidelity Central Funds (cost $60,434) | 60,442 | |
Total Investments (cost $820,022) | $988,148 | |
Receivable for investments sold | 179 | |
Receivable for fund shares sold | 679 | |
Dividends receivable | 2,536 | |
Interest receivable | 6 | |
Distributions receivable from Fidelity Central Funds | 16 | |
Prepaid expenses | 2 | |
Other receivables | 2 | |
Total assets | 991,568 | |
Liabilities | ||
Payable for investments purchased | $229 | |
Payable for fund shares redeemed | 1,497 | |
Accrued management fee | 271 | |
Distribution and service plan fees payable | 344 | |
Other affiliated payables | 195 | |
Other payables and accrued expenses | 63 | |
Collateral on securities loaned, at value | 2,700 | |
Total liabilities | 5,299 | |
Net Assets | $986,269 | |
Net Assets consist of: | ||
Paid in capital | $818,456 | |
Undistributed net investment income | 9,822 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (10,133) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 168,124 | |
Net Assets | $986,269 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($355,151 ÷ 21,011.63 shares) | $16.90 | |
Maximum offering price per share (100/94.25 of $16.90) | $17.93 | |
Class T: | ||
Net Asset Value and redemption price per share ($351,358 ÷ 20,904.76 shares) | $16.81 | |
Maximum offering price per share (100/96.50 of $16.81) | $17.42 | |
Class C: | ||
Net Asset Value and offering price per share ($153,838 ÷ 9,579.65 shares)(a) | $16.06 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($123,467 ÷ 6,975.25 shares) | $17.70 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($2,455 ÷ 136.79 shares) | $17.95 |
(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 | Year ended November 30, 2016 | |
Investment Income | ||
Dividends | $21,670 | |
Interest | 24 | |
Income from Fidelity Central Funds | 219 | |
Total income | 21,913 | |
Expenses | ||
Management fee | ||
Basic fee | $5,385 | |
Performance adjustment | (1,580) | |
Transfer agent fees | 2,059 | |
Distribution and service plan fees | 4,221 | |
Accounting and security lending fees | 328 | |
Custodian fees and expenses | 32 | |
Independent trustees' fees and expenses | 4 | |
Registration fees | 93 | |
Audit | 69 | |
Legal | 9 | |
Miscellaneous | 8 | |
Total expenses before reductions | 10,628 | |
Expense reductions | (18) | 10,610 |
Net investment income (loss) | 11,303 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (3,767) | |
Fidelity Central Funds | 12 | |
Foreign currency transactions | (13) | |
Total net realized gain (loss) | (3,768) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 31,303 | |
Assets and liabilities in foreign currencies | 1 | |
Total change in net unrealized appreciation (depreciation) | 31,304 | |
Net gain (loss) | 27,536 | |
Net increase (decrease) in net assets resulting from operations | $38,839 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $11,303 | $10,156 |
Net realized gain (loss) | (3,768) | 57,657 |
Change in net unrealized appreciation (depreciation) | 31,304 | (74,633) |
Net increase (decrease) in net assets resulting from operations | 38,839 | (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) | (21,716) | 43,684 |
Total increase (decrease) in net assets | (48,078) | (85,373) |
Net Assets | ||
Beginning of period | 1,034,347 | 1,119,720 |
End of period | $986,269 | $1,034,347 |
Other Information | ||
Undistributed net investment income end of period | $9,822 | $8,234 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Dividend Growth Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $17.35 | $19.65 | $17.23 | $13.33 | $11.45 |
Income from Investment Operations | |||||
Net investment income (loss)A | .21 | .20 | .23B | .13 | .07 |
Net realized and unrealized gain (loss) | .46 | (.34)C | 2.29 | 3.87 | 1.81 |
Total from investment operations | .67 | (.14) | 2.52 | 4.00 | 1.88 |
Distributions from net investment income | (.18) | (.19) | (.09) | (.10) | – |
Distributions from net realized gain | (.94) | (1.96) | (.01) | – | – |
Total distributions | (1.12) | (2.16)D | (.10) | (.10) | – |
Net asset value, end of period | $16.90 | $17.35 | $19.65 | $17.23 | $13.33 |
Total ReturnE,F | 4.36% | (.41)%C | 14.70% | 30.26% | 16.42% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .90% | 1.01% | .94% | .98% | 1.21% |
Expenses net of fee waivers, if any | .90% | 1.00% | .94% | .98% | 1.21% |
Expenses net of all reductions | .90% | 1.00% | .94% | .97% | 1.20% |
Net investment income (loss) | 1.33% | 1.13% | 1.29%B | .87% | .53% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $355 | $356 | $386 | $369 | $301 |
Portfolio turnover rateI | 31% | 56% | 106% | 70% | 64% |
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 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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $17.25 | $19.55 | $17.15 | $13.26 | $11.42 |
Income from Investment Operations | |||||
Net investment income (loss)A | .17 | .15 | .19B | .10 | .04 |
Net realized and unrealized gain (loss) | .47 | (.34)C | 2.27 | 3.86 | 1.80 |
Total from investment operations | .64 | (.19) | 2.46 | 3.96 | 1.84 |
Distributions from net investment income | (.14) | (.15) | (.06) | (.07) | – |
Distributions from net realized gain | (.94) | (1.96) | (.01) | – | – |
Total distributions | (1.08) | (2.11) | (.06)D | (.07) | – |
Net asset value, end of period | $16.81 | $17.25 | $19.55 | $17.15 | $13.26 |
Total ReturnE,F | 4.15% | (.67)%C | 14.41% | 30.05% | 16.11% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.14% | 1.24% | 1.18% | 1.20% | 1.42% |
Expenses net of fee waivers, if any | 1.14% | 1.24% | 1.18% | 1.20% | 1.42% |
Expenses net of all reductions | 1.14% | 1.24% | 1.17% | 1.19% | 1.42% |
Net investment income (loss) | 1.09% | .89% | 1.05%B | .65% | .32% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $351 | $372 | $412 | $375 | $304 |
Portfolio turnover rateI | 31% | 56% | 106% | 70% | 64% |
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 $.55 and distributions from net realized gain of $.007 per share.
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 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.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Dividend Growth Fund Class C
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $16.53 | $18.82 | $16.54 | $12.79 | $11.07 |
Income from Investment Operations | |||||
Net investment income (loss)A | .09 | .06 | .09B | .02 | (.02) |
Net realized and unrealized gain (loss) | .44 | (.32)C | 2.20 | 3.73 | 1.74 |
Total from investment operations | .53 | (.26) | 2.29 | 3.75 | 1.72 |
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 | $16.06 | $16.53 | $18.82 | $16.54 | $12.79 |
Total ReturnE,F | 3.58% | (1.16)%C | 13.83% | 29.36% | 15.54% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.66% | 1.76% | 1.69% | 1.72% | 1.94% |
Expenses net of fee waivers, if any | 1.66% | 1.76% | 1.69% | 1.72% | 1.94% |
Expenses net of all reductions | 1.66% | 1.76% | 1.69% | 1.71% | 1.93% |
Net investment income (loss) | .57% | .37% | .54%B | .13% | (.20)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $154 | $167 | $179 | $160 | $123 |
Portfolio turnover rateI | 31% | 56% | 106% | 70% | 64% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividends 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 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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.12 | $20.42 | $17.91 | $13.86 | $11.88 |
Income from Investment Operations | |||||
Net investment income (loss)A | .26 | .25 | .29B | .18 | .11 |
Net realized and unrealized gain (loss) | .49 | (.35)C | 2.37 | 4.02 | 1.87 |
Total from investment operations | .75 | (.10) | 2.66 | 4.20 | 1.98 |
Distributions from net investment income | (.22) | (.24) | (.14) | (.15) | – |
Distributions from net realized gain | (.94) | (1.96) | (.01) | – | – |
Total distributions | (1.17)D | (2.20) | (.15) | (.15) | – |
Net asset value, end of period | $17.70 | $18.12 | $20.42 | $17.91 | $13.86 |
Total ReturnE | 4.60% | (.14)%C | 14.99% | 30.63% | 16.67% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .67% | .76% | .69% | .70% | .91% |
Expenses net of fee waivers, if any | .67% | .76% | .69% | .70% | .91% |
Expenses net of all reductions | .66% | .76% | .69% | .69% | .90% |
Net investment income (loss) | 1.57% | 1.37% | 1.54%B | 1.15% | .83% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $123 | $125 | $131 | $135 | $103 |
Portfolio turnover rateH | 31% | 56% | 106% | 70% | 64% |
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 inclome of $.224 and distributions from net realized gain of $.941 per share.
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 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
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 | .29 | .28 | .31C | .06 |
Net realized and unrealized gain (loss) | .50 | (.35)D | 2.38 | 1.27 |
Total from investment operations | .79 | (.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 | $17.95 | $18.36 | $20.44 | $17.92 |
Total ReturnF,G | 4.80% | (.01)%D | 15.20% | 8.02% |
Ratios to Average Net AssetsH,I | ||||
Expenses before reductions | .49% | .59% | .52% | .54%J |
Expenses net of fee waivers, if any | .49% | .59% | .52% | .54%J |
Expenses net of all reductions | .49% | .59% | .52% | .52%J |
Net investment income (loss) | 1.74% | 1.54% | 1.71%C | 1.26%J |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $2,455 | $8,642 | $118 | $7,394 |
Portfolio turnover rateK | 31% | 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
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, 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 | $194,771 |
Gross unrealized depreciation | (27,024) |
Net unrealized appreciation (depreciation) on securities | $167,747 |
Tax Cost | $820,401 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $9,822 |
Capital loss carryforward | $(9,753) |
Net unrealized appreciation (depreciation) on securities and other investments | $167,745 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(9,753) |
Long-term | (–) |
Total no expiration | (9,753) |
Total capital loss carryforward | $(9,753) |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $8,944 | $ 23,853 |
Long-term Capital Gains | 56,257 | 98,384 |
Total | $65,201 | $ 122,237 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $287,193 and $372,981 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 annual management fee rate, including the performance adjustment, was .39% 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% | $861 | $1 |
Class T | .25% | .25% | 1,762 | – |
Class B | .75% | .25% | 29 | 21 |
Class C | .75% | .25% | 1,569 | 62 |
$4,221 | $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 | $78 |
Class T | 16 |
Class B(a) | 1 |
Class C(a) | 8 |
$103 |
(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 | |
Class A | $733 | .21 |
Class T | 702 | .20 |
Class B | 8 | .28 |
Class C | 346 | .22 |
Class I | 268 | .22 |
Class Z | 2 | .05 |
$2,059 |
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 $8 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 $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. 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 $26. 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 $11 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.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $3,750 | $3,806 |
Class T | 2,967 | 3,175 |
Class B | – | 5 |
Class C | 563 | 609 |
Class I | 1,543 | 1,536 |
Class Z | 121 | –(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 | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 3,281 | 2,750 | $52,651 | $48,068 |
Reinvestment of distributions | 1,348 | 2,322 | 21,238 | 39,381 |
Shares redeemed | (4,157) | (4,182) | (66,836) | (72,975) |
Net increase (decrease) | 472 | 890 | $7,053 | $14,474 |
Class T | ||||
Shares sold | 3,492 | 3,861 | $55,838 | $67,241 |
Reinvestment of distributions | 1,444 | 2,576 | 22,671 | 43,556 |
Shares redeemed | (5,580) | (5,958) | (89,471) | (103,477) |
Net increase (decrease) | (644) | 479 | $(10,962) | $7,320 |
Class B | ||||
Shares sold | 10 | 11 | $140 | $199 |
Reinvestment of distributions | 22 | 68 | 337 | 1,105 |
Shares redeemed | (423) | (286) | (6,401) | (4,794) |
Net increase (decrease) | (391) | (207) | $(5,924) | $(3,490) |
Class C | ||||
Shares sold | 946 | 1,178 | $14,422 | $19,680 |
Reinvestment of distributions | 579 | 1,033 | 8,736 | 16,812 |
Shares redeemed | (2,021) | (1,654) | (31,096) | (27,529) |
Net increase (decrease) | (496) | 557 | $(7,938) | $8,963 |
Class I | ||||
Shares sold | 1,496 | 1,619 | $25,131 | $29,609 |
Reinvestment of distributions | 451 | 752 | 7,424 | 13,280 |
Shares redeemed | (1,850) | (1,918) | (30,828) | (35,222) |
Net increase (decrease) | 97 | 453 | $1,727 | $7,667 |
Class Z | ||||
Shares sold | 23 | 511 | $389 | $9,593 |
Reinvestment of distributions | 34 | 1 | 565 | 11 |
Shares redeemed | (391) | (47) | (6,626) | (854) |
Net increase (decrease) | (334) | 465 | $(5,672) | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Dividend Growth Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Advisor Dividend Growth Fund (a fund of Fidelity Advisor Series I) at November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the period then indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Advisor Dividend Growth Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at November 30, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | .88% | |||
Actual | $1,000.00 | $1,047.10 | $4.50 | |
Hypothetical-C | $1,000.00 | $1,020.60 | $4.45 | |
Class T | 1.11% | |||
Actual | $1,000.00 | $1,046.00 | $5.68 | |
Hypothetical-C | $1,000.00 | $1,019.45 | $5.60 | |
Class C | 1.63% | |||
Actual | $1,000.00 | $1,043.50 | $8.33 | |
Hypothetical-C | $1,000.00 | $1,016.85 | $8.22 | |
Class I | .64% | |||
Actual | $1,000.00 | $1,048.60 | $3.28 | |
Hypothetical-C | $1,000.00 | $1,021.80 | $3.23 | |
Class Z | .40% | |||
Actual | $1,000.00 | $1,049.70 | $2.05 | |
Hypothetical-C | $1,000.00 | $1,023.00 | $2.02 |
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
Distributions (Unaudited)
Class A, Class T, Class C, Class I and Class Z designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class C, Class I and Class Z designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Dividend Growth Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Dividend Growth Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190618682.jpg)
Fidelity Advisor Dividend Growth Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190619214.jpg)
ADGF-ANN-0117
1.733548.117
Fidelity Advisor® Growth & Income Fund Class A, Class T, Class C and Class I Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 4.23% | 12.93% | 5.62% |
Class T (incl. 3.50% sales charge) | 6.49% | 13.20% | 5.61% |
Class C (incl. contingent deferred sales charge) | 8.81% | 13.44% | 5.47% |
Class I | 10.91% | 14.65% | 6.58% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Growth & Income Fund - Class A on November 30, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186132830_740.jpg)
Period Ending Values | ||
$17,270 | Fidelity Advisor® Growth & Income Fund - Class A | |
$19,462 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.'s June 23 vote to exit the European Union – dubbed "Brexit" – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager Matthew Fruhan: The fund's share classes (excluding sales charges, if applicable) gained between roughly 10% and 11% for the fiscal year, handily outpacing the benchmark S&P 500. The attractively valued stocks that the fund favors fared well in a relatively hospitable market environment. Relative outperformance was largely attributable to positioning in the strong-performing energy and financials sectors. Within energy, the fund's largest relative contributors included master limited partnership and non-benchmark holding Williams Partners, and its majority-owned energy transportation company Williams Companies. Both benefited from a better energy pricing environment this period. In financials, JPMorgan Chase and Bank of America – two of the fund's biggest holdings – were among the largest relative contributors. Elsewhere, communications equipment manufacturer Qualcomm added value, as the stock bounced back from challenges early in the period. On the negative side, stock picking in health care detracted. Here, industrywide concerns about generic drug pricing weighed on Teva Pharmaceutical Industries, an Israeli drug manufacturer not found in the index and the fund's biggest individual detractor by far. Greater scrutiny of U.S. drug pricing also hurt pharmaceutical distributor McKesson, whose stock dropped on weaker-than-expected earnings results.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
JPMorgan Chase & Co.(a) | 3.9 | 3.6 |
Bank of America Corp.(a) | 3.8 | 2.7 |
Microsoft Corp. | 3.3 | 3.2 |
Apple, Inc. | 3.2 | 2.7 |
Citigroup, Inc.(a) | 2.9 | 2.4 |
General Electric Co.(a) | 2.7 | 3.1 |
Qualcomm, Inc.(a) | 2.1 | 2.0 |
Chevron Corp. | 2.0 | 2.4 |
Comcast Corp. Class A | 1.9 | 1.7 |
State Street Corp. | 1.7 | 1.4 |
27.5 |
(a) Security or a portion of the security is pledged as collateral for call options written.
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 24.9 | 21.5 |
Information Technology | 18.0 | 20.5 |
Energy | 13.5 | 12.0 |
Health Care | 12.3 | 13.6 |
Industrials | 11.5 | 12.3 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016*,** | ||
Stocks | 98.5% | |
Convertible Securities | 1.2% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
* Foreign investments - 10.1%
** Written options - (0.4)%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 8.7% | |||
Automobiles - 0.1% | |||
General Motors Co. | 22,500 | $777 | |
Hotels, Restaurants & Leisure - 0.6% | |||
Cedar Fair LP (depositary unit) | 3,000 | 183 | |
Dunkin' Brands Group, Inc. | 11,300 | 613 | |
Las Vegas Sands Corp. (a) | 12,900 | 808 | |
Starbucks Corp. | 900 | 52 | |
Whitbread PLC | 7,095 | 308 | |
Wingstop, Inc. | 10,600 | 325 | |
Yum! Brands, Inc. | 12,561 | 796 | |
3,085 | |||
Leisure Products - 0.2% | |||
NJOY, Inc. (b)(c) | 52,210 | 0 | |
Polaris Industries, Inc. (d) | 9,600 | 834 | |
834 | |||
Media - 4.9% | |||
AMC Networks, Inc. Class A (b) | 2,400 | 133 | |
Comcast Corp. Class A | 147,329 | 10,241 | |
Scripps Networks Interactive, Inc. Class A | 45,072 | 3,122 | |
Sinclair Broadcast Group, Inc. Class A | 24,127 | 785 | |
The Walt Disney Co. | 23,300 | 2,309 | |
Time Warner, Inc. | 84,418 | 7,751 | |
Viacom, Inc. Class B (non-vtg.) | 60,600 | 2,271 | |
26,612 | |||
Multiline Retail - 1.5% | |||
Dollar General Corp. | 3,900 | 302 | |
Kohl's Corp. | 10,300 | 554 | |
Macy's, Inc. | 13,000 | 549 | |
Target Corp. | 89,899 | 6,944 | |
8,349 | |||
Specialty Retail - 1.3% | |||
Foot Locker, Inc. | 17,100 | 1,226 | |
L Brands, Inc. | 19,000 | 1,334 | |
Lowe's Companies, Inc. | 64,757 | 4,569 | |
7,129 | |||
Textiles, Apparel & Luxury Goods - 0.1% | |||
NIKE, Inc. Class B | 1,500 | 75 | |
Ralph Lauren Corp. | 3,800 | 398 | |
VF Corp. | 1,900 | 104 | |
577 | |||
TOTAL CONSUMER DISCRETIONARY | 47,363 | ||
CONSUMER STAPLES - 5.8% | |||
Beverages - 1.7% | |||
Britvic PLC | 14,300 | 102 | |
Cott Corp. | 4,500 | 51 | |
Diageo PLC | 73,273 | 1,832 | |
Molson Coors Brewing Co. Class B | 1,600 | 157 | |
PepsiCo, Inc. | 13,443 | 1,346 | |
The Coca-Cola Co. | 147,084 | 5,935 | |
9,423 | |||
Food & Staples Retailing - 1.4% | |||
Costco Wholesale Corp. | 6,800 | 1,021 | |
CVS Health Corp. | 55,451 | 4,264 | |
Kroger Co. | 30,400 | 982 | |
Walgreens Boots Alliance, Inc. | 11,182 | 947 | |
Whole Foods Market, Inc. | 7,800 | 237 | |
7,451 | |||
Food Products - 0.4% | |||
B&G Foods, Inc. Class A | 11,600 | 496 | |
Gores Holdings, Inc. (b) | 11,100 | 144 | |
Mead Johnson Nutrition Co. Class A | 23,800 | 1,716 | |
2,356 | |||
Household Products - 1.6% | |||
Procter & Gamble Co. | 107,635 | 8,876 | |
Personal Products - 0.1% | |||
Edgewell Personal Care Co. (b) | 8,000 | 633 | |
Tobacco - 0.6% | |||
Altria Group, Inc. | 8,900 | 569 | |
Philip Morris International, Inc. | 7,338 | 648 | |
Reynolds American, Inc. | 32,800 | 1,774 | |
2,991 | |||
TOTAL CONSUMER STAPLES | 31,730 | ||
ENERGY - 13.2% | |||
Energy Equipment & Services - 1.1% | |||
Baker Hughes, Inc. | 30,500 | 1,962 | |
National Oilwell Varco, Inc. | 49,500 | 1,849 | |
Oceaneering International, Inc. | 52,500 | 1,399 | |
Schlumberger Ltd. | 9,834 | 827 | |
6,037 | |||
Oil, Gas & Consumable Fuels - 12.1% | |||
Amyris, Inc. (b) | 18,722 | 17 | |
Anadarko Petroleum Corp. | 18,400 | 1,272 | |
Apache Corp. | 77,241 | 5,094 | |
Cabot Oil & Gas Corp. | 22,200 | 491 | |
Cenovus Energy, Inc. | 216,300 | 3,344 | |
Chevron Corp. | 96,763 | 10,795 | |
ConocoPhillips Co. | 178,900 | 8,680 | |
EQT Midstream Partners LP | 4,100 | 300 | |
Golar LNG Ltd. | 47,500 | 1,159 | |
Imperial Oil Ltd. | 117,800 | 4,033 | |
Kinder Morgan, Inc. | 253,900 | 5,637 | |
Legacy Reserves LP | 100,900 | 194 | |
MPLX LP | 11,126 | 365 | |
Plains GP Holdings LP Class A | 5,037 | 177 | |
PrairieSky Royalty Ltd. | 56,440 | 1,378 | |
Suncor Energy, Inc. | 275,990 | 8,789 | |
Teekay LNG Partners LP | 39,500 | 606 | |
The Williams Companies, Inc. | 296,631 | 9,107 | |
Williams Partners LP | 115,520 | 4,216 | |
65,654 | |||
TOTAL ENERGY | 71,691 | ||
FINANCIALS - 24.9% | |||
Banks - 17.4% | |||
Bank of America Corp. (a) | 978,842 | 20,673 | |
Citigroup, Inc. (a) | 277,327 | 15,638 | |
Comerica, Inc. (a) | 55,000 | 3,506 | |
Cullen/Frost Bankers, Inc. | 4,000 | 329 | |
JPMorgan Chase & Co. (a) | 267,443 | 21,446 | |
Lloyds Banking Group PLC | 136,800 | 99 | |
M&T Bank Corp. | 21,200 | 3,052 | |
PNC Financial Services Group, Inc. | 36,316 | 4,014 | |
Regions Financial Corp. (a) | 346,200 | 4,688 | |
Standard Chartered PLC (United Kingdom) (b) | 31,968 | 256 | |
SunTrust Banks, Inc. (a) | 131,535 | 6,833 | |
U.S. Bancorp (a) | 140,130 | 6,953 | |
Wells Fargo & Co. | 135,950 | 7,194 | |
94,681 | |||
Capital Markets - 6.5% | |||
Apollo Global Management LLC Class A | 49,300 | 950 | |
Ashmore Group PLC | 76,200 | 261 | |
CBOE Holdings, Inc. | 15,000 | 1,034 | |
Charles Schwab Corp. (a) | 97,913 | 3,785 | |
Intertrust NV | 15,300 | 267 | |
KKR & Co. LP | 191,213 | 2,926 | |
Morgan Stanley (a) | 111,030 | 4,592 | |
Northern Trust Corp. (a) | 71,937 | 5,910 | |
Oaktree Capital Group LLC Class A | 19,700 | 817 | |
S&P Global, Inc. | 12,900 | 1,535 | |
State Street Corp. | 115,770 | 9,123 | |
The Blackstone Group LP | 153,400 | 3,949 | |
35,149 | |||
Insurance - 0.8% | |||
Marsh & McLennan Companies, Inc. | 29,566 | 2,049 | |
MetLife, Inc. | 21,505 | 1,183 | |
Principal Financial Group, Inc. | 13,700 | 790 | |
Willis Group Holdings PLC | 2,700 | 336 | |
4,358 | |||
Thrifts & Mortgage Finance - 0.2% | |||
Radian Group, Inc. | 87,990 | 1,281 | |
TOTAL FINANCIALS | 135,469 | ||
HEALTH CARE - 11.3% | |||
Biotechnology - 2.3% | |||
Alexion Pharmaceuticals, Inc. (b) | 15,000 | 1,839 | |
Amgen, Inc. | 23,292 | 3,356 | |
Biogen, Inc. (b) | 8,700 | 2,558 | |
Gilead Sciences, Inc. | 34,600 | 2,550 | |
Grifols SA | 16,200 | 318 | |
Intercept Pharmaceuticals, Inc. (b) | 3,700 | 374 | |
Shire PLC sponsored ADR | 8,800 | 1,536 | |
Vertex Pharmaceuticals, Inc. (b) | 1,300 | 106 | |
12,637 | |||
Health Care Equipment & Supplies - 1.7% | |||
Abbott Laboratories | 52,426 | 1,996 | |
Becton, Dickinson & Co. | 1,800 | 304 | |
Medtronic PLC | 66,442 | 4,851 | |
Zimmer Biomet Holdings, Inc. | 20,990 | 2,138 | |
9,289 | |||
Health Care Providers & Services - 1.6% | |||
Anthem, Inc. | 10,800 | 1,539 | |
Cigna Corp. | 18,900 | 2,547 | |
McKesson Corp. | 22,733 | 3,269 | |
Patterson Companies, Inc. | 27,600 | 1,069 | |
8,424 | |||
Life Sciences Tools & Services - 0.4% | |||
Agilent Technologies, Inc. | 50,100 | 2,203 | |
Pharmaceuticals - 5.3% | |||
Allergan PLC | 2,400 | 466 | |
AstraZeneca PLC sponsored ADR | 51,600 | 1,349 | |
Bayer AG | 3,700 | 348 | |
Bristol-Myers Squibb Co. | 62,400 | 3,522 | |
GlaxoSmithKline PLC sponsored ADR | 196,009 | 7,407 | |
Innoviva, Inc. (b)(d) | 22,000 | 227 | |
Johnson & Johnson | 78,301 | 8,715 | |
Novartis AG sponsored ADR | 2,201 | 151 | |
Sanofi SA | 20,098 | 1,620 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 138,274 | 5,213 | |
29,018 | |||
TOTAL HEALTH CARE | 61,571 | ||
INDUSTRIALS - 11.4% | |||
Aerospace & Defense - 2.1% | |||
General Dynamics Corp. | 7,700 | 1,350 | |
Meggitt PLC | 20,306 | 120 | |
Rolls-Royce Holdings PLC | 95,600 | 808 | |
The Boeing Co. | 30,594 | 4,606 | |
United Technologies Corp. | 40,531 | 4,366 | |
11,250 | |||
Air Freight & Logistics - 1.3% | |||
C.H. Robinson Worldwide, Inc. | 20,000 | 1,497 | |
PostNL NV (b) | 92,300 | 455 | |
United Parcel Service, Inc. Class B (a) | 43,879 | 5,086 | |
7,038 | |||
Airlines - 0.2% | |||
Copa Holdings SA Class A | 13,400 | 1,191 | |
Building Products - 0.1% | |||
Tyco International Ltd. | 14,665 | 660 | |
Commercial Services & Supplies - 0.1% | |||
KAR Auction Services, Inc. | 15,100 | 637 | |
Construction & Engineering - 0.1% | |||
Fluor Corp. | 6,600 | 353 | |
Electrical Equipment - 0.5% | |||
AMETEK, Inc. | 23,300 | 1,103 | |
Hubbell, Inc. Class B | 15,712 | 1,764 | |
2,867 | |||
Industrial Conglomerates - 2.7% | |||
General Electric Co. (a) | 482,093 | 14,829 | |
Machinery - 1.1% | |||
Burckhardt Compression Holding AG | 780 | 188 | |
Caterpillar, Inc. | 2,700 | 258 | |
CLARCOR, Inc. | 1,200 | 85 | |
Deere & Co. | 14,900 | 1,493 | |
Donaldson Co., Inc. | 19,500 | 791 | |
Flowserve Corp. | 34,000 | 1,613 | |
IMI PLC | 6,600 | 80 | |
Pentair PLC | 700 | 40 | |
Wabtec Corp. | 13,100 | 1,109 | |
Xylem, Inc. | 4,600 | 237 | |
5,894 | |||
Professional Services - 0.2% | |||
Nielsen Holdings PLC | 15,000 | 647 | |
Robert Half International, Inc. | 9,900 | 444 | |
1,091 | |||
Road & Rail - 2.4% | |||
CSX Corp. | 135,133 | 4,839 | |
J.B. Hunt Transport Services, Inc. | 42,320 | 4,036 | |
Kansas City Southern | 11,705 | 1,038 | |
Norfolk Southern Corp. | 17,108 | 1,821 | |
Union Pacific Corp. | 14,000 | 1,419 | |
13,153 | |||
Trading Companies & Distributors - 0.6% | |||
Fastenal Co. | 10,600 | 502 | |
Howden Joinery Group PLC | 8,800 | 40 | |
W.W. Grainger, Inc. | 2,600 | 599 | |
Watsco, Inc. | 13,364 | 1,991 | |
3,132 | |||
TOTAL INDUSTRIALS | 62,095 | ||
INFORMATION TECHNOLOGY - 18.0% | |||
Communications Equipment - 1.5% | |||
Cisco Systems, Inc. | 279,071 | 8,322 | |
Internet Software & Services - 2.8% | |||
Alphabet, Inc.: | |||
Class A (b) | 10,768 | 8,355 | |
Class C (b) | 9,063 | 6,870 | |
15,225 | |||
IT Services - 4.2% | |||
First Data Corp. (e) | 126,726 | 1,846 | |
First Data Corp. Class A (b) | 54,300 | 791 | |
IBM Corp. | 8,700 | 1,411 | |
MasterCard, Inc. Class A (a) | 50,490 | 5,160 | |
Paychex, Inc. | 76,309 | 4,498 | |
Sabre Corp. | 37,700 | 975 | |
Unisys Corp. (b)(d) | 98,392 | 1,461 | |
Visa, Inc. Class A | 88,040 | 6,807 | |
22,949 | |||
Semiconductors & Semiconductor Equipment - 2.3% | |||
Maxim Integrated Products, Inc. | 25,300 | 994 | |
Qualcomm, Inc. (a) | 167,908 | 11,440 | |
12,434 | |||
Software - 3.6% | |||
Microsoft Corp. | 302,373 | 18,221 | |
Oracle Corp. | 24,384 | 980 | |
SS&C Technologies Holdings, Inc. | 24,600 | 738 | |
19,939 | |||
Technology Hardware, Storage & Peripherals - 3.6% | |||
Apple, Inc. | 154,678 | 17,095 | |
Western Digital Corp. | 37,300 | 2,375 | |
19,470 | |||
TOTAL INFORMATION TECHNOLOGY | 98,339 | ||
MATERIALS - 2.8% | |||
Chemicals - 2.3% | |||
CF Industries Holdings, Inc. | 49,200 | 1,424 | |
E.I. du Pont de Nemours & Co. | 20,131 | 1,482 | |
Johnson Matthey PLC | 1,400 | 55 | |
LyondellBasell Industries NV Class A | 26,500 | 2,393 | |
Monsanto Co. | 37,401 | 3,841 | |
Olin Corp. | 7,700 | 200 | |
Potash Corp. of Saskatchewan, Inc. | 132,500 | 2,417 | |
PPG Industries, Inc. | 2,000 | 192 | |
W.R. Grace & Co. | 12,700 | 829 | |
12,833 | |||
Containers & Packaging - 0.5% | |||
Ball Corp. | 5,200 | 390 | |
Graphic Packaging Holding Co. | 3,900 | 49 | |
Packaging Corp. of America | 5,400 | 458 | |
WestRock Co. | 34,500 | 1,766 | |
2,663 | |||
TOTAL MATERIALS | 15,496 | ||
REAL ESTATE - 0.7% | |||
Equity Real Estate Investment Trusts (REITs) - 0.7% | |||
American Tower Corp. | 7,600 | 777 | |
Crown Castle International Corp. | 19,700 | 1,644 | |
First Potomac Realty Trust | 4,672 | 46 | |
Omega Healthcare Investors, Inc. | 9,000 | 265 | |
Public Storage | 4,800 | 1,005 | |
Sabra Health Care REIT, Inc. | 13,500 | 299 | |
4,036 | |||
TELECOMMUNICATION SERVICES - 0.9% | |||
Diversified Telecommunication Services - 0.9% | |||
Verizon Communications, Inc. | 97,009 | 4,841 | |
UTILITIES - 0.8% | |||
Electric Utilities - 0.8% | |||
Exelon Corp. | 127,900 | 4,158 | |
TOTAL COMMON STOCKS | |||
(Cost $404,662) | 536,789 | ||
Preferred Stocks - 1.0% | |||
Convertible Preferred Stocks - 1.0% | |||
HEALTH CARE - 0.9% | |||
Health Care Equipment & Supplies - 0.9% | |||
Alere, Inc. 3.00% | 14,554 | 4,715 | |
INDUSTRIALS - 0.1% | |||
Commercial Services & Supplies - 0.1% | |||
Stericycle, Inc. 2.25% | 11,200 | 688 | |
UTILITIES - 0.0% | |||
Independent Power and Renewable Electricity Producers - 0.0% | |||
Dynegy, Inc. 7.00% (b) | 3,300 | 215 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 5,618 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
INDUSTRIALS - 0.0% | |||
Aerospace & Defense - 0.0% | |||
Rolls-Royce Holdings PLC: | |||
(C Shares) (b) | 8,614,630 | 11 | |
(C Shares) | 4,434,400 | 6 | |
17 | |||
TOTAL PREFERRED STOCKS | |||
(Cost $5,366) | 5,635 | ||
Principal Amount (000s)(f) | Value (000s) | ||
Convertible Bonds - 0.2% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Amyris, Inc. 9.5% 4/15/19 pay-in-kind | 697 | 484 | |
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Bayer Capital Corp. BV 5.625% 11/22/19 (e) | EUR | 500 | 535 |
TOTAL CONVERTIBLE BONDS | |||
(Cost $1,231) | 1,019 | ||
Shares | Value (000s) | ||
Other - 0.2% | |||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) unit (c)(g) | |||
(Cost $980) | 979,864 | 980 | |
Money Market Funds - 0.5% | |||
Fidelity Cash Central Fund, 0.39% (h) | 1,520,997 | 1,521 | |
Fidelity Securities Lending Cash Central Fund 0.48% (h)(i) | 1,018,329 | 1,019 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $2,539) | 2,540 | ||
TOTAL INVESTMENT PORTFOLIO - 100.4% | |||
(Cost $414,778) | 546,963 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (2,040) | ||
NET ASSETS - 100% | $544,923 |
Written Options | ||||
Expiration Date/Exercise Price | Number of Contracts | Premium (000s) | Value (000s) | |
Call Options | ||||
Bank of America Corp. | 1/20/17 - $18.00 | 987 | $24 | $(321) |
Bank of America Corp. | 1/20/17 - $20.00 | 1,475 | 65 | (232) |
Charles Schwab Corp. | 1/20/17 - $35.00 | 186 | 11 | (77) |
Citigroup, Inc. | 1/20/17 - $50.00 | 272 | 55 | (187) |
Citigroup, Inc. | 1/20/17 - $55.00 | 273 | 12 | (81) |
Citigroup, Inc. | 2/17/17 - $60.00 | 135 | 16 | (17) |
Comerica, Inc. | 1/20/17 - $55.00 | 143 | 18 | (125) |
General Electric | 1/20/17 - $32.00 | 491 | 15 | (11) |
JPMorgan Chase & Co. | 1/20/17 - $72.50 | 550 | 38 | (443) |
JPMorgan Chase & Co. | 2/17/17 - $85.00 | 266 | 31 | (31) |
Las Vegas Sands Corp. | 1/20/17 - $62.50 | 45 | 8 | (10) |
MasterCard, Inc. Class A | 1/20/17 - $105.00 | 101 | 28 | (16) |
Morgan Stanley | 1/20/17 - $36.00 | 165 | 8 | (96) |
Northern Trust Corp. | 1/20/17 - $75.00 | 74 | 11 | (60) |
Qualcomm, Inc. | 1/20/17 - $67.50 | 261 | 31 | (70) |
Regions Financial Corp. | 1/20/17 - $11.00 | 349 | 12 | (89) |
Regions Financial Corp. | 2/17/17 - $13.00 | 528 | 18 | (56) |
Regions Financial Corp. | 1/20/17 - $14.00 | 695 | 24 | (27) |
SunTrust Banks, Inc. | 1/20/17 - $46.00 | 274 | 31 | (175) |
SunTrust Banks, Inc. | 1/20/17 - $50.00 | 137 | 8 | (42) |
SunTrust Banks, Inc. | 1/20/17 - $55.00 | 129 | 9 | (8) |
U.S. Bancorp | 1/20/17 - $50.00 | 210 | 8 | (20) |
United Parcel Service, Inc. Class B | 4/21/17 - $115.00 | 74 | 11 | (35) |
TOTAL WRITTEN OPTIONS | $492 | $(2,229) |
Currency Abbreviations
EUR – European Monetary Unit
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 $29,934,000.
(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 $980,000 or 0.2% 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 $2,381,000 or 0.4% of net assets.
(f) Amount is stated in United States dollars unless otherwise noted.
(g) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(i) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
NJOY, Inc. | 2/14/14 | $91 |
Utica Shale Drilling Program (non-operating revenue interest) unit | 10/5/16 - 11/4/16 | $980 |
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 | $39 |
Fidelity Securities Lending Cash Central Fund | 38 |
Total | $77 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $47,363 | $47,363 | $-- | $-- |
Consumer Staples | 31,730 | 29,898 | 1,832 | -- |
Energy | 71,691 | 71,691 | -- | -- |
Financials | 135,469 | 135,370 | 99 | -- |
Health Care | 66,286 | 59,603 | 6,683 | -- |
Industrials | 62,800 | 61,992 | 808 | -- |
Information Technology | 98,339 | 98,339 | -- | -- |
Materials | 15,496 | 15,496 | -- | -- |
Real Estate | 4,036 | 4,036 | -- | -- |
Telecommunication Services | 4,841 | 4,841 | -- | -- |
Utilities | 4,373 | 4,373 | -- | -- |
Corporate Bonds | 1,019 | -- | 1,019 | -- |
Other | 980 | -- | -- | 980 |
Money Market Funds | 2,540 | 2,540 | -- | -- |
Total Investments in Securities: | $546,963 | $535,542 | $10,441 | $980 |
Derivative Instruments: | ||||
Liabilities | ||||
Written Options | $(2,229) | $(2,229) | $-- | $-- |
Total Liabilities | $(2,229) | $(2,229) | $-- | $-- |
Total Derivative Instruments: | $(2,229) | $(2,229) | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of November 30, 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 | |
(Amounts in thousands) | ||
Equity Risk | ||
Written Options(a) | $0 | $(2,229) |
Total Equity Risk | 0 | (2,229) |
Total Value of Derivatives | $0 | $(2,229) |
(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 | 89.9% |
Canada | 3.7% |
United Kingdom | 2.3% |
Ireland | 1.1% |
Israel | 1.0% |
Others (Individually Less Than 1%) | 2.0% |
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) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $994) — See accompanying schedule: Unaffiliated issuers (cost $412,239) | $544,423 | |
Fidelity Central Funds (cost $2,539) | 2,540 | |
Total Investments (cost $414,778) | $546,963 | |
Cash | 43 | |
Receivable for investments sold | 1,118 | |
Receivable for fund shares sold | 391 | |
Dividends receivable | 1,372 | |
Interest receivable | 21 | |
Distributions receivable from Fidelity Central Funds | 2 | |
Prepaid expenses | 1 | |
Total assets | 549,911 | |
Liabilities | ||
Payable for investments purchased | $701 | |
Payable for fund shares redeemed | 489 | |
Accrued management fee | 199 | |
Distribution and service plan fees payable | 188 | |
Written options, at value (premium received $492) | 2,229 | |
Other affiliated payables | 109 | |
Other payables and accrued expenses | 55 | |
Collateral on securities loaned, at value | 1,018 | |
Total liabilities | 4,988 | |
Net Assets | $544,923 | |
Net Assets consist of: | ||
Paid in capital | $403,535 | |
Undistributed net investment income | 5,976 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 4,970 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 130,442 | |
Net Assets | $544,923 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($253,498 ÷ 9,425.9 shares) | $26.89 | |
Maximum offering price per share (100/94.25 of $26.89) | $28.53 | |
Class T: | ||
Net Asset Value and redemption price per share ($176,043 ÷ 6,551.8 shares) | $26.87 | |
Maximum offering price per share (100/96.50 of $26.87) | $27.84 | |
Class C: | ||
Net Asset Value and offering price per share ($79,904 ÷ 3,154.9 shares)(a) | $25.33 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($35,478 ÷ 1,294.4 shares) | $27.41 |
(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 | Year ended November 30, 2016 | |
Investment Income | ||
Dividends | $12,708 | |
Interest | 93 | |
Income from Fidelity Central Funds | 77 | |
Total income | 12,878 | |
Expenses | ||
Management fee | $2,307 | |
Transfer agent fees | 1,118 | |
Distribution and service plan fees | 2,189 | |
Accounting and security lending fees | 199 | |
Custodian fees and expenses | 45 | |
Independent trustees' fees and expenses | 2 | |
Registration fees | 72 | |
Audit | 65 | |
Legal | 9 | |
Miscellaneous | 5 | |
Total expenses before reductions | 6,011 | |
Expense reductions | (12) | 5,999 |
Net investment income (loss) | 6,879 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 6,878 | |
Fidelity Central Funds | 3 | |
Foreign currency transactions | (6) | |
Written options | 609 | |
Total net realized gain (loss) | 7,484 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 38,385 | |
Assets and liabilities in foreign currencies | 8 | |
Written options | (1,737) | |
Total change in net unrealized appreciation (depreciation) | 36,656 | |
Net gain (loss) | 44,140 | |
Net increase (decrease) in net assets resulting from operations | $51,019 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $6,879 | $7,971 |
Net realized gain (loss) | 7,484 | 33,814 |
Change in net unrealized appreciation (depreciation) | 36,656 | (48,443) |
Net increase (decrease) in net assets resulting from operations | 51,019 | (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) | (9,916) | (16,615) |
Total increase (decrease) in net assets | 1,456 | (70,316) |
Net Assets | ||
Beginning of period | 543,467 | 613,783 |
End of period | $544,923 | $543,467 |
Other Information | ||
Undistributed net investment income end of period | $5,976 | $6,597 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth & Income Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $26.36 | $28.95 | $25.87 | $19.67 | $17.00 |
Income from Investment Operations | |||||
Net investment income (loss)A | .37 | .42 | .40 | .37 | .33 |
Net realized and unrealized gain (loss) | 2.12 | (.76)B | 2.97 | 5.88 | 2.90 |
Total from investment operations | 2.49 | (.34) | 3.37 | 6.25 | 3.23 |
Distributions from net investment income | (.39) | (.36) | (.11) | (.05) | (.53) |
Distributions from net realized gain | (1.57) | (1.88) | (.18) | – | (.03) |
Total distributions | (1.96) | (2.25)C | (.29) | (.05) | (.56) |
Net asset value, end of period | $26.89 | $26.36 | $28.95 | $25.87 | $19.67 |
Total ReturnD,E | 10.59% | (.96)%B | 13.20% | 31.86% | 19.20% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .99% | .99% | 1.01% | 1.02% | 1.05% |
Expenses net of fee waivers, if any | .99% | .98% | 1.01% | 1.02% | 1.05% |
Expenses net of all reductions | .99% | .98% | 1.01% | 1.00% | 1.04% |
Net investment income (loss) | 1.51% | 1.57% | 1.48% | 1.61% | 1.75% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $253 | $244 | $276 | $255 | $183 |
Portfolio turnover rateH | 31% | 35% | 44% | 48% | 57% |
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 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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $26.32 | $28.91 | $25.84 | $19.68 | $16.97 |
Income from Investment Operations | |||||
Net investment income (loss)A | .31 | .35 | .33 | .32 | .29 |
Net realized and unrealized gain (loss) | 2.12 | (.76)B | 2.97 | 5.89 | 2.89 |
Total from investment operations | 2.43 | (.41) | 3.30 | 6.21 | 3.18 |
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 | $26.87 | $26.32 | $28.91 | $25.84 | $19.68 |
Total ReturnE,F | 10.36% | (1.22)%B | 12.91% | 31.62% | 18.93% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.24% | 1.23% | 1.25% | 1.25% | 1.27% |
Expenses net of fee waivers, if any | 1.24% | 1.23% | 1.25% | 1.25% | 1.27% |
Expenses net of all reductions | 1.24% | 1.23% | 1.24% | 1.23% | 1.26% |
Net investment income (loss) | 1.26% | 1.32% | 1.24% | 1.38% | 1.53% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $176 | $180 | $216 | $214 | $166 |
Portfolio turnover rateI | 31% | 35% | 44% | 48% | 57% |
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 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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $24.92 | $27.51 | $24.66 | $18.87 | $16.23 |
Income from Investment Operations | |||||
Net investment income (loss)A | .17 | .21 | .19 | .19 | .19 |
Net realized and unrealized gain (loss) | 2.01 | (.73)B | 2.84 | 5.64 | 2.77 |
Total from investment operations | 2.18 | (.52) | 3.03 | 5.83 | 2.96 |
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 | $25.33 | $24.92 | $27.51 | $24.66 | $18.87 |
Total ReturnE,F | 9.81% | (1.74)%B | 12.38% | 30.95% | 18.33% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.74% | 1.73% | 1.74% | 1.74% | 1.76% |
Expenses net of fee waivers, if any | 1.74% | 1.73% | 1.74% | 1.74% | 1.76% |
Expenses net of all reductions | 1.74% | 1.73% | 1.74% | 1.73% | 1.76% |
Net investment income (loss) | .76% | .82% | .74% | .89% | 1.04% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $80 | $79 | $85 | $74 | $58 |
Portfolio turnover rateI | 31% | 35% | 44% | 48% | 57% |
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 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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $26.85 | $29.47 | $26.13 | $19.79 | $17.16 |
Income from Investment Operations | |||||
Net investment income (loss)A | .44 | .50 | .49 | .43 | .40 |
Net realized and unrealized gain (loss) | 2.16 | (.78)B | 3.03 | 5.97 | 2.91 |
Total from investment operations | 2.60 | (.28) | 3.52 | 6.40 | 3.31 |
Distributions from net investment income | (.48) | (.45) | – | (.06) | (.65) |
Distributions from net realized gain | (1.57) | (1.88) | (.18) | – | (.03) |
Total distributions | (2.04)C | (2.34)D | (.18) | (.06) | (.68) |
Net asset value, end of period | $27.41 | $26.85 | $29.47 | $26.13 | $19.79 |
Total ReturnE | 10.91% | (.70)%B | 13.56% | 32.41% | 19.59% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .73% | .71% | .70% | .70% | .71% |
Expenses net of fee waivers, if any | .73% | .70% | .70% | .70% | .71% |
Expenses net of all reductions | .73% | .70% | .70% | .68% | .70% |
Net investment income (loss) | 1.77% | 1.86% | 1.78% | 1.93% | 2.09% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $35 | $36 | $28 | $24 | $1,031 |
Portfolio turnover rateH | 31% | 35% | 44% | 48% | 57% |
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 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, equity-debt classifications, 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 | $148,957 |
Gross unrealized depreciation | (20,752) |
Net unrealized appreciation (depreciation) on securities | $128,205 |
Tax Cost | $418,758 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $7,095 |
Undistributed long-term capital gain | $8,595 |
Net unrealized appreciation (depreciation) on securities and other investments | $125,697 |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $7,087 | $ 10,140 |
Long-term Capital Gains | 32,560 | 36,903 |
Total | $39,647 | $ 47,043 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $980 in this Subsidiary, representing 0.18% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
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 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 $609 and a change in net unrealized appreciation (depreciation) of $(1,737) 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 | 22 | 1,488 |
Options Exercised | (2) | (185) |
Options Closed | (8) | (514) |
Options Expired | (4) | (297) |
Outstanding at end of period | 8 | $492 |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $158,044 and $196,783, 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 annual 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% | $583 | $– |
Class T | .25% | .25% | 838 | – |
Class B | .75% | .25% | 20 | 15 |
Class C | .75% | .25% | 748 | 56 |
$2,189 | $71 |
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 | $60 |
Class T | 14 |
Class B(a) | –(b) |
Class C(a) | 7 |
$81 |
(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 | |
Class A | $505 | .22 |
Class T | 367 | .22 |
Class B | 6 | .28 |
Class C | 164 | .22 |
Class I | 76 | .21 |
$1,118 |
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 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 $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.
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 $143. 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 $38, including less than five hundred dollars 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 $8 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.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 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 | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 1,081 | 1,359 | $26,026 | $36,064 |
Reinvestment of distributions | 720 | 778 | 16,776 | 19,973 |
Shares redeemed | (1,618) | (2,428) | (38,962) | (64,761) |
Net increase (decrease) | 183 | (291) | $3,840 | $(8,724) |
Class T | ||||
Shares sold | 433 | 490 | $10,470 | $12,982 |
Reinvestment of distributions | 536 | 618 | 12,512 | 15,887 |
Shares redeemed | (1,248) | (1,760) | (30,152) | (46,877) |
Net increase (decrease) | (279) | (652) | $(7,170) | $(18,008) |
Class B | ||||
Shares sold | 3 | 10 | $51 | $251 |
Reinvestment of distributions | 12 | 23 | 278 | 570 |
Shares redeemed | (202) | (153) | (4,522) | (3,905) |
Net increase (decrease) | (187) | (120) | $(4,193) | $(3,084) |
Class C | ||||
Shares sold | 388 | 460 | $8,771 | $11,623 |
Reinvestment of distributions | 224 | 231 | 4,961 | 5,657 |
Shares redeemed | (627) | (620) | (14,174) | (15,418) |
Net increase (decrease) | (15) | 71 | $(442) | $1,862 |
Class I | ||||
Shares sold | 600 | 615 | $15,066 | $16,671 |
Reinvestment of distributions | 101 | 71 | 2,390 | 1,846 |
Shares redeemed | (760) | (272) | (19,407) | (7,178) |
Net increase (decrease) | (59) | 414 | $(1,951) | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Growth & Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Growth & Income Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Growth & Income Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 12, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | .98% | |||
Actual | $1,000.00 | $1,099.80 | $5.14 | |
Hypothetical-C | $1,000.00 | $1,020.10 | $4.95 | |
Class T | 1.23% | |||
Actual | $1,000.00 | $1,098.50 | $6.45 | |
Hypothetical-C | $1,000.00 | $1,018.85 | $6.21 | |
Class C | 1.74% | |||
Actual | $1,000.00 | $1,095.60 | $9.12 | |
Hypothetical-C | $1,000.00 | $1,016.30 | $8.77 | |
Class I | .73% | |||
Actual | $1,000.00 | $1,101.20 | $3.83 | |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Growth & Income Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Growth & Income Fund | ||||
Class A | 12/28/16 | 12/27/16 | $0.408 | $0.431 |
Class T | 12/28/16 | 12/27/16 | $0.343 | $0.431 |
Class C | 12/28/16 | 12/27/16 | $0.240 | $0.431 |
Class I | 12/28/16 | 12/27/16 | $0.465 | $0.431 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2016, $9,098,531, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class T, Class B, Class C and Class I designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class B, Class C and Class I designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Growth & Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Growth & Income Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190627251.jpg)
Fidelity Advisor Growth & Income Fund
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AGAI-ANN-0117
1.539472.119
Fidelity Advisor® Small Cap Fund Class A, Class T, Class C, Class I and Class Z Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (4.52)% | 9.28% | 6.47% |
Class T (incl. 3.50% sales charge) | (2.44)% | 9.56% | 6.50% |
Class C (incl. contingent deferred sales charge) | (0.39)% | 9.75% | 6.30% |
Class I | 1.58% | 10.89% | 7.42% |
Class Z | 1.73% | 11.00% | 7.47% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on August 13, 2013. Returns prior to August 13, 2013, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Small Cap Fund - Class A on November 30, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186133935_740.jpg)
Period Ending Values | ||
$18,725 | Fidelity Advisor® Small Cap Fund - Class A | |
$19,318 | Russell 2000® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.'s June 23 vote to exit the European Union – dubbed "Brexit" – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500® advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager James Harmon: The fund's share classes (excluding sales charges, if applicable) gained just 1% to 2% for the fiscal year ending November 30, 2016, significantly trailing the 12.08% increase in the benchmark Russell 2000® Index. Performance suffered as market sentiment shifted in favor of lower-quality, higher-priced stocks that we tend to avoid. Relative to the benchmark, stock picking in information technology and industrials detracted the most. Within the former, Syntel, an Indian provider of technology and business processing outsourcing services, was the biggest individual detractor, as the company reported slower revenue growth and generally disappointing financial results. Other lagging technology holdings included Zebra Technologies, a maker of bar-code printers and scanners, and Blackhawk Network Holdings, a provider of gift cards to retailers. I sold Zebra's stock from the portfolio in June but took advantage of Blackhawk's reduced valuation to add to the fund's position. Within industrials, the biggest detractor was Mitie Group, a U.K.-based company focused on facilities-maintenance outsourcing; this out-of-benchmark stock plunged in September after the company preannounced much-weaker-than-expected sales and profits. Elsewhere, a position in First NBC Bank Holding fared poorly, and I sold the stock in June. In contrast, the fund benefited from its stake in a couple of insurance names – Reinsurance Group of America and Primerica – while a stake in lead-acid battery manufacturer EnerSys also contributed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
CDW Corp. | 2.5 | 2.6 |
SYNNEX Corp. | 2.4 | 1.8 |
WEX, Inc. | 2.1 | 1.6 |
Blackhawk Network Holdings, Inc. | 2.0 | 1.4 |
EnerSys | 1.8 | 1.4 |
The Ensign Group, Inc. | 1.7 | 1.8 |
Univar, Inc. | 1.7 | 0.0 |
Reinsurance Group of America, Inc. | 1.5 | 1.2 |
Premier, Inc. | 1.5 | 0.0 |
Marriott Vacations Worldwide Corp. | 1.5 | 0.0 |
18.7 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 19.9 | 19.3 |
Industrials | 17.7 | 14.3 |
Financials | 16.7 | 22.8 |
Health Care | 11.1 | 17.0 |
Consumer Discretionary | 10.2 | 12.1 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016* | ||
Stocks and Equity Futures | 99.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.6% |
* Foreign investments - 20.2%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 96.6% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 10.2% | |||
Auto Components - 2.6% | |||
Gentherm, Inc. (a) | 330,000 | $10,511 | |
Standard Motor Products, Inc. | 400,000 | 19,976 | |
Tenneco, Inc. (a) | 650,000 | 38,318 | |
68,805 | |||
Diversified Consumer Services - 1.8% | |||
Grand Canyon Education, Inc. (a) | 500,000 | 28,550 | |
Meiko Network Japan Co. Ltd. | 138,800 | 1,205 | |
Tsukada Global Holdings, Inc. (b) | 2,800,000 | 17,683 | |
47,438 | |||
Hotels, Restaurants & Leisure - 1.7% | |||
Bojangles', Inc. (a)(c) | 367,794 | 6,584 | |
Marriott Vacations Worldwide Corp. | 500,000 | 38,820 | |
45,404 | |||
Household Durables - 2.0% | |||
PulteGroup, Inc. | 1,800,000 | 33,948 | |
Tupperware Brands Corp. | 350,000 | 19,404 | |
53,352 | |||
Internet & Direct Marketing Retail - 0.4% | |||
Duluth Holdings, Inc. (c) | 350,000 | 11,729 | |
Leisure Products - 0.7% | |||
Nautilus, Inc. (a) | 1,100,000 | 18,920 | |
Textiles, Apparel & Luxury Goods - 1.0% | |||
Steven Madden Ltd. (a) | 700,000 | 25,935 | |
TOTAL CONSUMER DISCRETIONARY | 271,583 | ||
CONSUMER STAPLES - 2.1% | |||
Beverages - 0.4% | |||
Britvic PLC | 1,600,000 | 11,441 | |
Food & Staples Retailing - 1.7% | |||
McColl's Retail Group PLC | 4,712,237 | 10,318 | |
Sundrug Co. Ltd. | 230,000 | 16,115 | |
Tsuruha Holdings, Inc. | 190,000 | 19,471 | |
45,904 | |||
TOTAL CONSUMER STAPLES | 57,345 | ||
ENERGY - 2.3% | |||
Oil, Gas & Consumable Fuels - 2.3% | |||
HollyFrontier Corp. (c) | 1,000,000 | 28,770 | |
World Fuel Services Corp. | 740,000 | 32,900 | |
61,670 | |||
FINANCIALS - 16.7% | |||
Banks - 9.3% | |||
Allegiance Bancshares, Inc. (a) | 360,000 | 11,016 | |
Bank of Hawaii Corp. (c) | 400,000 | 33,348 | |
Bank of the Ozarks, Inc. | 560,000 | 27,171 | |
ConnectOne Bancorp, Inc. | 1,500,000 | 35,250 | |
East West Bancorp, Inc. | 230,000 | 11,012 | |
German American Bancorp, Inc. | 575,604 | 27,307 | |
Great Western Bancorp, Inc. | 562,250 | 22,490 | |
Home Bancshares, Inc. | 800,000 | 20,696 | |
Investors Bancorp, Inc. | 2,200,000 | 29,788 | |
ServisFirst Bancshares, Inc. | 381,629 | 28,096 | |
246,174 | |||
Diversified Financial Services - 0.6% | |||
Scandinavian Tobacco Group A/S | 1,000,000 | 15,811 | |
Insurance - 5.5% | |||
Enstar Group Ltd. (a) | 130,000 | 25,565 | |
James River Group Holdings Ltd. | 580,000 | 22,608 | |
Primerica, Inc. (c) | 420,000 | 29,694 | |
Reinsurance Group of America, Inc. | 330,000 | 40,277 | |
Selective Insurance Group, Inc. | 700,000 | 28,770 | |
146,914 | |||
Thrifts & Mortgage Finance - 1.3% | |||
Essent Group Ltd. (a) | 568,423 | 17,348 | |
Meridian Bancorp, Inc. | 1,000,000 | 17,750 | |
35,098 | |||
TOTAL FINANCIALS | 443,997 | ||
HEALTH CARE - 11.1% | |||
Health Care Equipment & Supplies - 1.4% | |||
Ansell Ltd. (a) | 740,000 | 12,336 | |
Fukuda Denshi Co. Ltd. | 130,000 | 7,107 | |
LivaNova PLC (a) | 430,000 | 19,036 | |
38,479 | |||
Health Care Providers & Services - 6.1% | |||
American Renal Associates Holdings, Inc. (c) | 910,250 | 22,228 | |
MEDNAX, Inc. (a) | 400,000 | 26,188 | |
Premier, Inc. (a) | 1,300,300 | 39,191 | |
Providence Service Corp. (a) | 267,632 | 9,825 | |
Ship Healthcare Holdings, Inc. | 470,000 | 12,377 | |
Sigma Pharmaceuticals Ltd. | 6,200,000 | 5,637 | |
The Ensign Group, Inc. | 2,100,000 | 45,402 | |
160,848 | |||
Life Sciences Tools & Services - 2.3% | |||
ICON PLC (a) | 350,000 | 26,474 | |
VWR Corp. (a) | 1,300,000 | 35,360 | |
61,834 | |||
Pharmaceuticals - 1.3% | |||
Akorn, Inc. (a) | 800,000 | 16,976 | |
Kaken Pharmaceutical Co. Ltd. | 330,000 | 17,703 | |
34,679 | |||
TOTAL HEALTH CARE | 295,840 | ||
INDUSTRIALS - 17.7% | |||
Aerospace & Defense - 2.2% | |||
Moog, Inc. Class A (a) | 467,595 | 32,652 | |
Teledyne Technologies, Inc. (a) | 200,000 | 24,974 | |
57,626 | |||
Air Freight & Logistics - 0.9% | |||
Hub Group, Inc. Class A (a) | 550,000 | 23,568 | |
Commercial Services & Supplies - 4.4% | |||
Coor Service Management Holding AB | 1,535,502 | 8,657 | |
Deluxe Corp. | 500,000 | 33,850 | |
Loomis AB (B Shares) | 540,000 | 14,286 | |
Mitie Group PLC (c) | 6,100,000 | 15,692 | |
UniFirst Corp. | 200,000 | 28,270 | |
West Corp. | 647,000 | 15,437 | |
116,192 | |||
Construction & Engineering - 2.2% | |||
Argan, Inc. | 400,000 | 24,180 | |
EMCOR Group, Inc. | 500,000 | 34,685 | |
58,865 | |||
Electrical Equipment - 1.8% | |||
EnerSys | 620,000 | 49,340 | |
Machinery - 1.8% | |||
Hy-Lok Corp. (b) | 594,001 | 11,375 | |
Standex International Corp. | 405,561 | 35,730 | |
47,105 | |||
Marine - 0.4% | |||
SITC International Holdings Co. Ltd. | 19,000,000 | 11,758 | |
Professional Services - 2.3% | |||
Benefit One, Inc. | 550,000 | 12,995 | |
ICF International, Inc. (a) | 379,145 | 20,986 | |
On Assignment, Inc. (a) | 330,000 | 13,626 | |
WS Atkins PLC | 770,000 | 13,517 | |
61,124 | |||
Trading Companies & Distributors - 1.7% | |||
Univar, Inc. (a) | 1,800,000 | 44,820 | |
TOTAL INDUSTRIALS | 470,398 | ||
INFORMATION TECHNOLOGY - 19.9% | |||
Electronic Equipment & Components - 7.7% | |||
CDW Corp. | 1,300,000 | 66,610 | |
ePlus, Inc. (a) | 127,888 | 14,221 | |
Fabrinet (a) | 700,000 | 29,960 | |
Insight Enterprises, Inc. (a) | 860,000 | 30,117 | |
SYNNEX Corp. | 540,000 | 63,131 | |
204,039 | |||
Internet Software & Services - 1.9% | |||
j2 Global, Inc. | 400,000 | 29,404 | |
Stamps.com, Inc. (a)(c) | 210,000 | 22,302 | |
51,706 | |||
IT Services - 7.5% | |||
Blackhawk Network Holdings, Inc. (a) | 1,461,900 | 52,628 | |
EVERTEC, Inc. | 1,319,600 | 24,083 | |
Global Payments, Inc. | 360,000 | 24,678 | |
Maximus, Inc. | 420,000 | 23,222 | |
Syntel, Inc. (c) | 950,000 | 18,430 | |
WEX, Inc. (a) | 500,000 | 55,255 | |
198,296 | |||
Semiconductors & Semiconductor Equipment - 0.5% | |||
Integrated Device Technology, Inc. (a) | 605,100 | 14,159 | |
Software - 1.1% | |||
NIIT Technologies Ltd. | 500,000 | 3,096 | |
Zensar Technologies Ltd. | 1,768,049 | 25,896 | |
28,992 | |||
Technology Hardware, Storage & Peripherals - 1.2% | |||
NCR Corp. (a) | 800,000 | 31,000 | |
TOTAL INFORMATION TECHNOLOGY | 528,192 | ||
MATERIALS - 7.1% | |||
Chemicals - 2.2% | |||
Ingevity Corp. (a) | 260,000 | 13,616 | |
PolyOne Corp. | 1,000,000 | 32,970 | |
SK Kaken Co. Ltd. | 130,000 | 12,423 | |
59,009 | |||
Containers & Packaging - 3.6% | |||
Berry Plastics Group, Inc. (a) | 700,000 | 34,839 | |
Greif, Inc. Class A | 650,000 | 33,391 | |
Silgan Holdings, Inc. | 520,000 | 25,745 | |
93,975 | |||
Paper & Forest Products - 1.3% | |||
Neenah Paper, Inc. | 410,000 | 34,809 | |
TOTAL MATERIALS | 187,793 | ||
REAL ESTATE - 7.5% | |||
Equity Real Estate Investment Trusts (REITs) - 3.1% | |||
CBL & Associates Properties, Inc. | 2,000,000 | 23,720 | |
National Health Investors, Inc. | 330,000 | 23,351 | |
Tanger Factory Outlet Centers, Inc. | 650,000 | 22,406 | |
VEREIT, Inc. | 1,600,000 | 13,264 | |
82,741 | |||
Real Estate Management & Development - 4.4% | |||
CBRE Group, Inc. (a) | 1,000,000 | 29,040 | |
Daito Trust Construction Co. Ltd. | 130,000 | 20,260 | |
Open House Co. Ltd. | 500,000 | 12,492 | |
Relo Holdings Corp. | 140,000 | 19,321 | |
Savills PLC | 1,400,000 | 11,736 | |
Sumitomo Real Estate Sales Co. Ltd. | 620,000 | 15,300 | |
Takara Leben Co. Ltd. | 550,000 | 3,280 | |
The RMR Group, Inc. | 100,000 | 4,150 | |
115,579 | |||
TOTAL REAL ESTATE | 198,320 | ||
TELECOMMUNICATION SERVICES - 0.1% | |||
Diversified Telecommunication Services - 0.1% | |||
APT Satellite Holdings Ltd. | 3,900,000 | 2,117 | |
Asia Satellite Telecommunications Holdings Ltd. | 900,000 | 1,160 | |
3,277 | |||
UTILITIES - 1.9% | |||
Gas Utilities - 1.3% | |||
Amerigas Partners LP | 630,000 | 28,274 | |
Star Gas Partners LP | 600,000 | 5,850 | |
34,124 | |||
Multi-Utilities - 0.6% | |||
Telecom Plus PLC | 1,000,000 | 15,653 | |
TOTAL UTILITIES | 49,777 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,041,681) | 2,568,192 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.1% | |||
U.S. Treasury Bills, yield at date of purchase 0.28% to 0.49% 12/15/16 to 2/23/17 (d) | |||
(Cost $3,468) | 3,470 | 3,468 | |
Shares | Value (000s) | ||
Money Market Funds - 6.4% | |||
Fidelity Cash Central Fund, 0.39% (e) | 92,691,415 | $92,710 | |
Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 77,030,943 | 77,046 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $169,742) | 169,756 | ||
TOTAL INVESTMENT PORTFOLIO - 103.1% | |||
(Cost $2,214,891) | 2,741,416 | ||
NET OTHER ASSETS (LIABILITIES) - (3.1)% | (83,164) | ||
NET ASSETS - 100% | $2,658,252 |
Futures Contracts | |||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||
Equity Index Contracts | |||
561 ICE Russell 2000 Index Contracts (United States) | Dec. 2016 | 74,181 | $6,595 |
The face value of futures purchased as a percentage of Net Assets is 2.8%
For the period, the average monthly underlying face amount at value for futures contracts in the aggregate was $119,587,000.
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 $3,468,000.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 | $564 |
Fidelity Securities Lending Cash Central Fund | 435 |
Total | $999 |
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 | $-- | $852 | $-- | $-- |
ConnectOne Bancorp, Inc. | 30,241 | 728 | 1,731 | 470 | -- |
First NBC Bank Holding Co. | 43,456 | 75 | 21,684 | -- | -- |
Hy-Lok Corp. | 15,207 | -- | 2,039 | 200 | 11,375 |
Meiko Network Japan Co. Ltd. | 17,932 | -- | 13,365 | 479 | -- |
NIIT Technologies Ltd. | 32,572 | -- | 20,204 | 566 | -- |
Sword Group | 14,676 | -- | 15,281 | 454 | -- |
Tsukada Global Holdings, Inc. | 18,583 | -- | -- | 227 | 17,683 |
Zensar Technologies Ltd. | 57,126 | -- | 28,086 | 625 | -- |
Total | $231,254 | $803 | $103,242 | $3,021 | $29,058 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $271,583 | $252,695 | $18,888 | $-- |
Consumer Staples | 57,345 | 21,759 | 35,586 | -- |
Energy | 61,670 | 61,670 | -- | -- |
Financials | 443,997 | 443,997 | -- | -- |
Health Care | 295,840 | 240,680 | 55,160 | -- |
Industrials | 470,398 | 457,403 | 12,995 | -- |
Information Technology | 528,192 | 499,200 | 28,992 | -- |
Materials | 187,793 | 175,370 | 12,423 | -- |
Real Estate | 198,320 | 127,667 | 70,653 | -- |
Telecommunication Services | 3,277 | 3,277 | -- | -- |
Utilities | 49,777 | 49,777 | -- | -- |
U.S. Government and Government Agency Obligations | 3,468 | -- | 3,468 | -- |
Money Market Funds | 169,756 | 169,756 | -- | -- |
Total Investments in Securities: | $2,741,416 | $2,503,251 | $238,165 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $6,595 | $6,595 | $-- | $-- |
Total Assets | $6,595 | $6,595 | $-- | $-- |
Total Derivative Instruments: | $6,595 | $6,595 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended November 30, 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) |
(Amounts in thousands) | |
Level 1 to Level 2 | $235,350 |
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 November 30, 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) | $6,595 | $0 |
Total Equity Risk | 6,595 | 0 |
Total Value of Derivatives | $6,595 | $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 | 79.8% |
Japan | 7.2% |
United Kingdom | 3.6% |
Bermuda | 2.5% |
Cayman Islands | 1.5% |
India | 1.1% |
Ireland | 1.0% |
Others (Individually Less Than 1%) | 3.3% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $74,916) — See accompanying schedule: Unaffiliated issuers (cost $2,020,452) | $2,542,602 | |
Fidelity Central Funds (cost $169,742) | 169,756 | |
Other affiliated issuers (cost $24,697) | 29,058 | |
Total Investments (cost $2,214,891) | $2,741,416 | |
Cash | 1,493 | |
Foreign currency held at value (cost $195) | 195 | |
Receivable for investments sold | 3,538 | |
Receivable for fund shares sold | 2,513 | |
Dividends receivable | 2,557 | |
Distributions receivable from Fidelity Central Funds | 73 | |
Prepaid expenses | 6 | |
Other receivables | 26 | |
Total assets | 2,751,817 | |
Liabilities | ||
Payable for investments purchased | $7,826 | |
Payable for fund shares redeemed | 5,730 | |
Accrued management fee | 1,291 | |
Distribution and service plan fees payable | 718 | |
Payable for daily variation margin for derivative instruments | 365 | |
Other affiliated payables | 512 | |
Other payables and accrued expenses | 92 | |
Collateral on securities loaned, at value | 77,031 | |
Total liabilities | 93,565 | |
Net Assets | $2,658,252 | |
Net Assets consist of: | ||
Paid in capital | $2,094,755 | |
Undistributed net investment income | 5,060 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 25,410 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 533,027 | |
Net Assets | $2,658,252 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($932,050 ÷ 36,521.8 shares) | $25.52 | |
Maximum offering price per share (100/94.25 of $25.52) | $27.08 | |
Class T: | ||
Net Asset Value and redemption price per share ($755,650 ÷ 31,650.1 shares) | $23.88 | |
Maximum offering price per share (100/96.50 of $23.88) | $24.75 | |
Class C: | ||
Net Asset Value and offering price per share ($274,198 ÷ 13,591.9 shares)(a) | $20.17 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($652,108 ÷ 23,583.9 shares) | $27.65 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($44,246 ÷ 1,601.2 shares) | $27.63 |
(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 | Year ended November 30, 2016 | |
Investment Income | ||
Dividends (including $3,021 earned from other affiliated issuers) | $35,868 | |
Special dividends | 11,964 | |
Interest | 22 | |
Income from Fidelity Central Funds | 999 | |
Total income | 48,853 | |
Expenses | ||
Management fee | ||
Basic fee | $18,646 | |
Performance adjustment | 2,718 | |
Transfer agent fees | 5,593 | |
Distribution and service plan fees | 9,087 | |
Accounting and security lending fees | 803 | |
Custodian fees and expenses | 175 | |
Independent trustees' fees and expenses | 12 | |
Registration fees | 143 | |
Audit | 71 | |
Legal | 6 | |
Miscellaneous | 22 | |
Total expenses before reductions | 37,276 | |
Expense reductions | (200) | 37,076 |
Net investment income (loss) | 11,777 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 52,527 | |
Fidelity Central Funds | 25 | |
Other affiliated issuers | (16,154) | |
Foreign currency transactions | (102) | |
Futures contracts | (7,208) | |
Total net realized gain (loss) | 29,088 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (26,850) | |
Assets and liabilities in foreign currencies | (39) | |
Futures contracts | (220) | |
Total change in net unrealized appreciation (depreciation) | (27,109) | |
Net gain (loss) | 1,979 | |
Net increase (decrease) in net assets resulting from operations | $13,756 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $11,777 | $(784) |
Net realized gain (loss) | 29,088 | 272,853 |
Change in net unrealized appreciation (depreciation) | (27,109) | (152,796) |
Net increase (decrease) in net assets resulting from operations | 13,756 | 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) | (125,212) | 204,314 |
Total increase (decrease) in net assets | (360,492) | (32,052) |
Net Assets | ||
Beginning of period | 3,018,744 | 3,050,796 |
End of period | $2,658,252 | $3,018,744 |
Other Information | ||
Undistributed net investment income end of period | $5,060 | $– |
Accumulated net investment loss end of period | $– | $(3,498) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Small Cap Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $27.56 | $29.85 | $30.96 | $22.45 | $23.60 |
Income from Investment Operations | |||||
Net investment income (loss)A | .12B | .02C | .04 | .12D | (.03) |
Net realized and unrealized gain (loss) | .05 | 1.10 | 2.36 | 8.45 | .79 |
Total from investment operations | .17 | 1.12 | 2.40 | 8.57 | .76 |
Distributions from net investment income | – | – | (.01) | (.05) | – |
Distributions from net realized gain | (2.21) | (3.41) | (3.50) | (.01) | (1.91) |
Total distributions | (2.21) | (3.41) | (3.51) | (.06) | (1.91) |
Net asset value, end of period | $25.52 | $27.56 | $29.85 | $30.96 | $22.45 |
Total ReturnE,F | 1.31% | 4.17% | 9.06% | 38.30% | 3.87% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.32% | 1.26% | .98% | 1.01% | 1.06% |
Expenses net of fee waivers, if any | 1.32% | 1.26% | .98% | 1.01% | 1.06% |
Expenses net of all reductions | 1.31% | 1.25% | .97% | 1.00% | 1.06% |
Net investment income (loss) | .52%B | .07%C | .14% | .46%D | (.13)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $932 | $1,047 | $1,097 | $1,263 | $1,212 |
Portfolio turnover rateI | 81% | 33% | 39% | 34% | 69% |
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 .07 %.
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 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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $25.99 | $28.40 | $29.69 | $21.52 | $22.75 |
Income from Investment Operations | |||||
Net investment income (loss)A | .07B | (.04)C | (.02) | .06D | (.07) |
Net realized and unrealized gain (loss) | .03 | 1.04 | 2.23 | 8.13 | .75 |
Total from investment operations | .10 | 1.00 | 2.21 | 8.19 | .68 |
Distributions from net investment income | – | – | – | (.01) | – |
Distributions from net realized gain | (2.21) | (3.41) | (3.50) | (.01) | (1.91) |
Total distributions | (2.21) | (3.41) | (3.50) | (.02) | (1.91) |
Net asset value, end of period | $23.88 | $25.99 | $28.40 | $29.69 | $21.52 |
Total ReturnE,F | 1.10% | 3.93% | 8.79% | 38.11% | 3.64% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.54% | 1.49% | 1.20% | 1.22% | 1.26% |
Expenses net of fee waivers, if any | 1.54% | 1.49% | 1.20% | 1.22% | 1.26% |
Expenses net of all reductions | 1.54% | 1.49% | 1.20% | 1.21% | 1.25% |
Net investment income (loss) | .29%B | (.16)%C | (.08)% | .25%D | (.33)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $756 | $888 | $958 | $1,113 | $1,054 |
Portfolio turnover rateI | 81% | 33% | 39% | 34% | 69% |
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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.16) %.
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 (.39) %.
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 .09%.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $22.44 | $25.10 | $26.77 | $19.50 | $20.90 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.05)B | (.16)C | (.15) | (.07)D | (.17) |
Net realized and unrealized gain (loss) | (.01)E | .91 | 1.98 | 7.34 | .68 |
Total from investment operations | (.06) | .75 | 1.83 | 7.27 | .51 |
Distributions from net realized gain | (2.21) | (3.41) | (3.50) | – | (1.91) |
Net asset value, end of period | $20.17 | $22.44 | $25.10 | $26.77 | $19.50 |
Total ReturnF,G | .50% | 3.38% | 8.26% | 37.28% | 3.10% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 2.08% | 2.02% | 1.73% | 1.76% | 1.81% |
Expenses net of fee waivers, if any | 2.08% | 2.02% | 1.73% | 1.76% | 1.81% |
Expenses net of all reductions | 2.07% | 2.01% | 1.73% | 1.75% | 1.80% |
Net investment income (loss) | (.24)%B | (.69)%C | (.62)% | (.29)%D | (.88)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $274 | $318 | $317 | $334 | $284 |
Portfolio turnover rateJ | 81% | 33% | 39% | 34% | 69% |
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 (.69) %.
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 (.91) %.
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 (.45) %.
E The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $29.59 | $31.80 | $32.73 | $23.73 | $24.77 |
Income from Investment Operations | |||||
Net investment income (loss)A | .20B | .10C | .13 | .21D | .04 |
Net realized and unrealized gain (loss) | .07 | 1.18 | 2.50 | 8.94 | .83 |
Total from investment operations | .27 | 1.28 | 2.63 | 9.15 | .87 |
Distributions from net investment income | – | (.08) | (.06) | (.13) | – |
Distributions from net realized gain | (2.21) | (3.41) | (3.50) | (.01) | (1.91) |
Total distributions | (2.21) | (3.49) | (3.56) | (.15)E | (1.91) |
Net asset value, end of period | $27.65 | $29.59 | $31.80 | $32.73 | $23.73 |
Total ReturnF | 1.58% | 4.46% | 9.33% | 38.79% | 4.15% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.05% | .99% | .70% | .71% | .75% |
Expenses net of fee waivers, if any | 1.04% | .99% | .70% | .71% | .75% |
Expenses net of all reductions | 1.04% | .99% | .70% | .70% | .74% |
Net investment income (loss) | .79%B | .34%C | .41% | .76%D | .18% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $652 | $704 | $627 | $718 | $1,141 |
Portfolio turnover rateI | 81% | 33% | 39% | 34% | 69% |
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 .34%.
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 .11%.
D 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%.
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 would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Small Cap Fund Class Z
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 | .24C | .14D | .17 | .02E |
Net realized and unrealized gain (loss) | .07 | 1.17 | 2.51 | 2.93 |
Total from investment operations | .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)F | (3.66) | – |
Net asset value, end of period | $27.63 | $29.53 | $31.76 | $32.74 |
Total ReturnG,H | 1.73% | 4.59% | 9.52% | 9.90% |
Ratios to Average Net AssetsI,J | ||||
Expenses before reductions | .89% | .84% | .55% | .56%K |
Expenses net of fee waivers, if any | .89% | .84% | .55% | .56%K |
Expenses net of all reductions | .89% | .84% | .54% | .55%K |
Net investment income (loss) | .94%C | .48%D | .57% | .26%E,K |
Supplemental Data | ||||
Net assets, end of period (in millions) | $44 | $41 | $20 | $5 |
Portfolio turnover rateL | 81% | 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 $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .50%.
D 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%.
E 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%.
F 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.
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 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.
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.
Notes to Financial Statements
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to 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 | $607,138 |
Gross unrealized depreciation | (80,496) |
Net unrealized appreciation (depreciation) on securities | $526,642 |
Tax Cost | $2,214,774 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $5,067 |
Undistributed long-term capital gain | $26,799 |
Net unrealized appreciation (depreciation) on securities and other investments | $526,540 |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $– | $ 1,701 |
Long-term Capital Gains | 249,036 | 353,938 |
Total | $249,036 | $ 355,639 |
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 $(7,208) and a change in net unrealized appreciation (depreciation) of $(220) 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 $2,051,784 and $2,231,378, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company 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 annual 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.
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% | $2,333 | $– |
Class T | .25% | .25% | 3,865 | – |
Class B | .75% | .25% | 88 | 66 |
Class C | .75% | .25% | 2,801 | 217 |
$9,087 | $283 |
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 | $130 |
Class T | 22 |
Class B(a) | 1 |
Class C(a) | 15 |
$168 |
(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 | |
Class A | $2,099 | .22 |
Class T | 1,531 | .20 |
Class B | 25 | .29 |
Class C | 653 | .23 |
Class I | 1,266 | .20 |
Class Z | 19 | .05 |
$5,593 |
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 $95 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 $12.
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 $7 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 $1,147. 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 $435, including $19 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 $179 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 $21.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 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 | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 5,928 | 7,266 | $140,735 | $201,961 |
Reinvestment of distributions | 3,443 | 4,474 | 81,777 | 119,319 |
Shares redeemed | (10,822) | (10,527) | (258,061) | (292,656) |
Net increase (decrease) | (1,451) | 1,213 | $(35,549) | $28,624 |
Class T | ||||
Shares sold | 4,643 | 6,096 | $103,682 | $160,232 |
Reinvestment of distributions | 3,332 | 4,384 | 74,245 | 110,516 |
Shares redeemed | (10,503) | (10,046) | (234,117) | (263,505) |
Net increase (decrease) | (2,528) | 434 | $(56,190) | $7,243 |
Class B | ||||
Shares sold | 6 | 21 | $95 | $461 |
Reinvestment of distributions | 108 | 189 | 2,016 | 4,069 |
Shares redeemed | (1,070) | (510) | (19,638) | (11,385) |
Net increase (decrease) | (956) | (300) | $(17,527) | $(6,855) |
Class C | ||||
Shares sold | 1,506 | 1,967 | $28,368 | $44,618 |
Reinvestment of distributions | 1,552 | 1,812 | 29,420 | 39,668 |
Shares redeemed | (3,634) | (2,262) | (69,050) | (51,403) |
Net increase (decrease) | (576) | 1,517 | $(11,262) | $32,883 |
Class I | ||||
Shares sold | 7,918 | 8,618 | $201,293 | $256,826 |
Reinvestment of distributions | 1,747 | 2,131 | 44,806 | 60,822 |
Shares redeemed | (9,861) | (6,687) | (256,027) | (197,913) |
Net increase (decrease) | (196) | 4,062 | $(9,928) | $119,735 |
Class Z | ||||
Shares sold | 590 | 1,152 | $15,126 | $33,575 |
Reinvestment of distributions | 120 | 77 | 3,081 | 2,198 |
Shares redeemed | (500) | (454) | (12,963) | (13,089) |
Net increase (decrease) | 210 | 775 | $5,244 | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Small Cap Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Advisor Small Cap Fund (a fund of Fidelity Advisor Series I) at November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Advisor Small Cap Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at November 30, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | 1.22% | |||
Actual | $1,000.00 | $1,060.20 | $6.28 | |
Hypothetical-C | $1,000.00 | $1,018.90 | $6.16 | |
Class T | 1.45% | |||
Actual | $1,000.00 | $1,059.40 | $7.47 | |
Hypothetical-C | $1,000.00 | $1,017.75 | $7.31 | |
Class C | 1.98% | |||
Actual | $1,000.00 | $1,056.00 | $10.18 | |
Hypothetical-C | $1,000.00 | $1,015.10 | $9.97 | |
Class I | .95% | |||
Actual | $1,000.00 | $1,061.80 | $4.90 | |
Hypothetical-C | $1,000.00 | $1,020.25 | $4.80 | |
Class Z | .81% | |||
Actual | $1,000.00 | $1,062.30 | $4.18 | |
Hypothetical-C | $1,000.00 | $1,020.95 | $4.09 |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Small Cap Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Small Cap Fund | ||||
Class A | 12/28/16 | 12/27/16 | $0.078 | $0.253 |
Class T | 12/28/16 | 12/27/16 | $0.026 | $0.253 |
Class C | 12/28/16 | 12/27/16 | $0.000 | $0.253 |
Class I | 12/28/16 | 12/27/16 | $0.152 | $0.253 |
Class Z | 12/28/16 | 12/27/16 | $0.198 | $0.253 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2016, $27,541,627, or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Small Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Small Cap Fund
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Fidelity Advisor Small Cap Fund
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ASCF-ANN-0117
1.713164.119
Fidelity® Value Strategies Fund Class K Annual Report November 30, 2016 (A class of Fidelity Advisor® Value Strategies Fund) |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class K | 4.76% | 13.40% | 6.05% |
The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008 are those of Fidelity Advisor® Value Strategies Fund, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Value Strategies Fund - Class K on November 30, 2006. The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Value Index performed over the same period. See above for additional information regarding the performance of Class K.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186131385_740.jpg)
Period Ending Values | ||
$17,993 | Fidelity® Value Strategies Fund - Class K | |
$20,622 | Russell Midcap® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.'s June 23 vote to exit the European Union – dubbed "Brexit" – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Thomas Soviero, Portfolio Manager until September 14, 2016, and his successor, Portfolio Manager Matthew Friedman: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) posted gains in the range of 3% to 5%, significantly lagging the 14.25% return of the benchmark Russell Midcap Value Index. Security selection was by far the biggest driver of the fund's disappointing relative result, as some of our largest holdings remained pressured. Sector allocations also hurt. Individual detractors included Netherlands-based LyondellBasell Industries, which saw low oil prices wipe out the relative cost advantage it had enjoyed from using natural-gas derivatives in its chemicals-related products. Shares of Citigroup and Bank of America also detracted from relative performance, due to continued-low interest rates, increased regulation and sluggish economic growth. All three stocks were large, non-benchmark positions for much of the period. Citigroup and Bank of America were not held at period end, and Lyondell was notably reduced. By contrast, the timely purchase of consumer finance company Synchrony Financial helped relative performance, as better-than-expected revenues, write-offs that were not as bad as feared and a post-election rally in financials lifted the stock.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Edison International | 3.1 | 0.0 |
Sempra Energy | 3.0 | 1.3 |
Synchrony Financial | 2.7 | 0.0 |
U.S. Bancorp | 2.6 | 3.3 |
American Tower Corp. | 2.4 | 0.0 |
American Electric Power Co., Inc. | 2.0 | 0.0 |
Wells Fargo & Co. | 2.0 | 1.3 |
Essex Property Trust, Inc. | 1.9 | 0.0 |
Extra Space Storage, Inc. | 1.9 | 0.0 |
E.I. du Pont de Nemours & Co. | 1.8 | 0.0 |
23.4 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 18.3 | 18.0 |
Consumer Discretionary | 12.5 | 15.6 |
Information Technology | 11.8 | 3.9 |
Real Estate | 11.2 | 0.0 |
Industrials | 10.2 | 9.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016 * | ||
Stocks | 99.0% | |
Convertible Securities | 0.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
* Foreign investments - 16.3%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.5% | |||
Auto Components - 1.4% | |||
Delphi Automotive PLC | 289,177 | $18,507 | |
Diversified Consumer Services - 3.3% | |||
H&R Block, Inc. | 533,002 | 11,811 | |
Houghton Mifflin Harcourt Co. (a) | 1,204,356 | 13,308 | |
Service Corp. International | 760,450 | 20,525 | |
45,644 | |||
Hotels, Restaurants & Leisure - 1.0% | |||
Wyndham Worldwide Corp. | 184,467 | 13,280 | |
Household Durables - 0.8% | |||
Tupperware Brands Corp. | 198,997 | 11,032 | |
Internet & Direct Marketing Retail - 1.2% | |||
Liberty Interactive Corp. QVC Group Series A (a) | 815,336 | 16,886 | |
Media - 4.2% | |||
DISH Network Corp. Class A (a) | 247,845 | 14,239 | |
Liberty Broadband Corp. Class C (a) | 130,715 | 9,321 | |
Sinclair Broadcast Group, Inc. Class A | 597,899 | 19,462 | |
Twenty-First Century Fox, Inc. Class A | 504,100 | 14,170 | |
57,192 | |||
Specialty Retail - 0.6% | |||
GameStop Corp. Class A | 313,213 | 7,733 | |
TOTAL CONSUMER DISCRETIONARY | 170,274 | ||
CONSUMER STAPLES - 2.8% | |||
Beverages - 0.9% | |||
Cott Corp. | 1,152,064 | 13,096 | |
Food & Staples Retailing - 1.2% | |||
Whole Foods Market, Inc. | 527,056 | 16,017 | |
Food Products - 0.7% | |||
Darling International, Inc. (a) | 718,222 | 9,703 | |
TOTAL CONSUMER STAPLES | 38,816 | ||
ENERGY - 7.2% | |||
Energy Equipment & Services - 1.5% | |||
Baker Hughes, Inc. | 309,730 | 19,925 | |
Oil, Gas & Consumable Fuels - 5.7% | |||
Anadarko Petroleum Corp. | 195,300 | 13,505 | |
Boardwalk Pipeline Partners, LP | 733,436 | 12,593 | |
ConocoPhillips Co. | 409,800 | 19,883 | |
GasLog Ltd. (b) | 694,861 | 10,909 | |
Teekay Corp. | 1,472,713 | 11,620 | |
Teekay Offshore Partners LP | 1,647,200 | 9,010 | |
77,520 | |||
TOTAL ENERGY | 97,445 | ||
FINANCIALS - 18.3% | |||
Banks - 4.6% | |||
U.S. Bancorp | 731,584 | 36,301 | |
Wells Fargo & Co. | 507,070 | 26,834 | |
63,135 | |||
Capital Markets - 4.6% | |||
Apollo Global Management LLC Class A | 763,750 | 14,710 | |
Legg Mason, Inc. | 511,517 | 16,317 | |
NorthStar Asset Management Group, Inc. | 1,470,900 | 21,710 | |
The Blackstone Group LP | 379,500 | 9,768 | |
62,505 | |||
Consumer Finance - 5.1% | |||
Discover Financial Services | 307,700 | 20,853 | |
OneMain Holdings, Inc. (a) | 580,900 | 11,833 | |
Synchrony Financial | 1,065,213 | 36,814 | |
69,500 | |||
Insurance - 4.0% | |||
Brown & Brown, Inc. | 368,286 | 15,965 | |
Chubb Ltd. | 130,082 | 16,650 | |
FNF Group | 673,759 | 21,520 | |
54,135 | |||
TOTAL FINANCIALS | 249,275 | ||
HEALTH CARE - 7.7% | |||
Biotechnology - 1.9% | |||
Amgen, Inc. | 65,700 | 9,465 | |
United Therapeutics Corp. (a) | 135,400 | 17,008 | |
26,473 | |||
Health Care Providers & Services - 2.9% | |||
Cigna Corp. | 103,446 | 13,938 | |
Envision Healthcare Holdings, Inc. (a) | 617,818 | 14,037 | |
Laboratory Corp. of America Holdings (a) | 89,478 | 11,261 | |
39,236 | |||
Pharmaceuticals - 2.9% | |||
Jazz Pharmaceuticals PLC (a) | 205,700 | 21,317 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 363,700 | 13,711 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 309,000 | 4,879 | |
39,907 | |||
TOTAL HEALTH CARE | 105,616 | ||
INDUSTRIALS - 10.2% | |||
Aerospace & Defense - 2.1% | |||
General Dynamics Corp. | 98,654 | 17,299 | |
KLX, Inc. (a) | 272,410 | 10,621 | |
27,920 | |||
Airlines - 1.2% | |||
Delta Air Lines, Inc. | 347,100 | 16,723 | |
Construction & Engineering - 1.3% | |||
AECOM (a) | 477,500 | 17,357 | |
Machinery - 2.9% | |||
Allison Transmission Holdings, Inc. | 640,875 | 21,258 | |
Ingersoll-Rand PLC | 247,900 | 18,478 | |
39,736 | |||
Trading Companies & Distributors - 2.7% | |||
AerCap Holdings NV (a) | 536,937 | 23,008 | |
Univar, Inc. (a) | 577,224 | 14,373 | |
37,381 | |||
TOTAL INDUSTRIALS | 139,117 | ||
INFORMATION TECHNOLOGY - 11.8% | |||
Communications Equipment - 1.3% | |||
CommScope Holding Co., Inc. (a) | 491,668 | 17,690 | |
Electronic Equipment & Components - 2.2% | |||
Flextronics International Ltd. (a) | 960,578 | 13,679 | |
TE Connectivity Ltd. | 232,881 | 15,752 | |
29,431 | |||
IT Services - 4.0% | |||
Cognizant Technology Solutions Corp. Class A (a) | 177,300 | 9,766 | |
Computer Sciences Corp. | 360,400 | 21,851 | |
First Data Corp. Class A (a) | 1,126,240 | 16,409 | |
Total System Services, Inc. | 138,900 | 6,837 | |
54,863 | |||
Semiconductors & Semiconductor Equipment - 4.3% | |||
Cree, Inc. (a) | 455,155 | 11,525 | |
Marvell Technology Group Ltd. | 930,591 | 13,345 | |
Qorvo, Inc. (a) | 249,300 | 13,315 | |
Qualcomm, Inc. | 300,400 | 20,466 | |
58,651 | |||
TOTAL INFORMATION TECHNOLOGY | 160,635 | ||
MATERIALS - 9.2% | |||
Chemicals - 7.5% | |||
CF Industries Holdings, Inc. | 568,453 | 16,451 | |
E.I. du Pont de Nemours & Co. | 340,800 | 25,086 | |
Eastman Chemical Co. | 305,934 | 22,982 | |
LyondellBasell Industries NV Class A | 204,292 | 18,452 | |
Westlake Chemical Corp. | 331,303 | 19,603 | |
102,574 | |||
Containers & Packaging - 0.9% | |||
Ball Corp. | 169,233 | 12,703 | |
Metals & Mining - 0.8% | |||
Compass Minerals International, Inc. | 128,831 | 9,991 | |
TOTAL MATERIALS | 125,268 | ||
REAL ESTATE - 11.2% | |||
Equity Real Estate Investment Trusts (REITs) - 9.6% | |||
American Tower Corp. | 314,308 | 32,144 | |
Equity Lifestyle Properties, Inc. | 151,300 | 10,505 | |
Essex Property Trust, Inc. | 119,682 | 25,842 | |
Extra Space Storage, Inc. | 367,128 | 25,758 | |
Outfront Media, Inc. | 933,804 | 23,541 | |
WP Glimcher, Inc. | 1,241,156 | 12,436 | |
130,226 | |||
Real Estate Management & Development - 1.6% | |||
CBRE Group, Inc. (a) | 767,400 | 22,285 | |
TOTAL REAL ESTATE | 152,511 | ||
UTILITIES - 8.1% | |||
Electric Utilities - 5.1% | |||
American Electric Power Co., Inc. | 458,342 | 27,065 | |
Edison International | 618,871 | 42,563 | |
69,628 | |||
Multi-Utilities - 3.0% | |||
Sempra Energy | 407,288 | 40,647 | |
TOTAL UTILITIES | 110,275 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,266,674) | 1,349,232 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.7% | |||
ENERGY - 0.7% | |||
Oil, Gas & Consumable Fuels - 0.7% | |||
Cobalt International Energy, Inc. 2.625% 12/1/19 (Cost $10,618) | 21,550 | 9,231 | |
Shares | Value (000s) | ||
Money Market Funds - 0.7% | |||
Fidelity Cash Central Fund, 0.39% (c) | 4,235,754 | 4,237 | |
Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 5,884,783 | 5,886 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $10,122) | 10,123 | ||
TOTAL INVESTMENT PORTFOLIO - 100.4% | |||
(Cost $1,287,414) | 1,368,586 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (5,476) | ||
NET ASSETS - 100% | $1,363,110 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $271 |
Fidelity Securities Lending Cash Central Fund | 351 |
Total | $622 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $170,274 | $170,274 | $-- | $-- |
Consumer Staples | 38,816 | 38,816 | -- | -- |
Energy | 97,445 | 97,445 | -- | -- |
Financials | 249,275 | 249,275 | -- | -- |
Health Care | 105,616 | 105,616 | -- | -- |
Industrials | 139,117 | 139,117 | -- | -- |
Information Technology | 160,635 | 160,635 | -- | -- |
Materials | 125,268 | 125,268 | -- | -- |
Real Estate | 152,511 | 152,511 | -- | -- |
Utilities | 110,275 | 110,275 | -- | -- |
Corporate Bonds | 9,231 | -- | 9,231 | -- |
Money Market Funds | 10,123 | 10,123 | -- | -- |
Total Investments in Securities: | $1,368,586 | $1,359,355 | $9,231 | $-- |
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 | 83.7% |
Netherlands | 3.1% |
Ireland | 2.9% |
Switzerland | 2.4% |
Bermuda | 1.8% |
Marshall Islands | 1.5% |
Bailiwick of Jersey | 1.4% |
Canada | 1.2% |
Israel | 1.0% |
Singapore | 1.0% |
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) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $6,059) — See accompanying schedule: Unaffiliated issuers (cost $1,277,292) | $1,358,463 | |
Fidelity Central Funds (cost $10,122) | 10,123 | |
Total Investments (cost $1,287,414) | $1,368,586 | |
Receivable for fund shares sold | 461 | |
Dividends receivable | 2,017 | |
Interest receivable | 283 | |
Distributions receivable from Fidelity Central Funds | 5 | |
Prepaid expenses | 3 | |
Other receivables | 15 | |
Total assets | 1,371,370 | |
Liabilities | ||
Payable for fund shares redeemed | $1,521 | |
Accrued management fee | 368 | |
Distribution and service plan fees payable | 185 | |
Other affiliated payables | 236 | |
Other payables and accrued expenses | 65 | |
Collateral on securities loaned, at value | 5,885 | |
Total liabilities | 8,260 | |
Net Assets | $1,363,110 | |
Net Assets consist of: | ||
Paid in capital | $1,035,708 | |
Undistributed net investment income | 15,960 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 230,270 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 81,172 | |
Net Assets | $1,363,110 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($203,077 ÷ 5,045.72 shares) | $40.25 | |
Maximum offering price per share (100/94.25 of $40.25) | $42.71 | |
Class T: | ||
Net Asset Value and redemption price per share ($262,710 ÷ 6,297.62 shares) | $41.72 | |
Maximum offering price per share (100/96.50 of $41.72) | $43.23 | |
Class C: | ||
Net Asset Value and offering price per share ($44,155 ÷ 1,219.92 shares)(a) | $36.19 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($712,725 ÷ 15,779.43 shares) | $45.17 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($67,671 ÷ 1,497.80 shares) | $45.18 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($72,772 ÷ 1,689.55 shares) | $43.07 |
(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 | Year ended November 30, 2016 | |
Investment Income | ||
Dividends | $26,032 | |
Interest | 5,557 | |
Income from Fidelity Central Funds | 622 | |
Total income | 32,211 | |
Expenses | ||
Management fee | ||
Basic fee | $7,534 | |
Performance adjustment | (2,910) | |
Transfer agent fees | 2,463 | |
Distribution and service plan fees | 2,281 | |
Accounting and security lending fees | 442 | |
Custodian fees and expenses | 33 | |
Independent trustees' fees and expenses | 6 | |
Registration fees | 159 | |
Audit | 68 | |
Legal | 5 | |
Interest | 2 | |
Miscellaneous | 12 | |
Total expenses before reductions | 10,095 | |
Expense reductions | (70) | 10,025 |
Net investment income (loss) | 22,186 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 391,640 | |
Fidelity Central Funds | 26 | |
Foreign currency transactions | 10 | |
Futures contracts | 735 | |
Total net realized gain (loss) | 392,411 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (369,931) | |
Total change in net unrealized appreciation (depreciation) | (369,931) | |
Net gain (loss) | 22,480 | |
Net increase (decrease) in net assets resulting from operations | $44,666 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $22,186 | $14,207 |
Net realized gain (loss) | 392,411 | 117,291 |
Change in net unrealized appreciation (depreciation) | (369,931) | (113,531) |
Net increase (decrease) in net assets resulting from operations | 44,666 | 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) | (80,508) | (175,423) |
Total increase (decrease) in net assets | (51,526) | (170,475) |
Net Assets | ||
Beginning of period | 1,414,636 | 1,585,111 |
End of period | $1,363,110 | $1,414,636 |
Other Information | ||
Undistributed net investment income end of period | $15,960 | $12,741 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.01 | $38.91 | $36.02 | $27.62 | $22.71 |
Income from Investment Operations | |||||
Net investment income (loss)A | .56 | .35 | .25 | .23 | –B |
Net realized and unrealized gain (loss) | 1.09 | .06 | 2.87 | 8.25 | 5.03 |
Total from investment operations | 1.65 | .41 | 3.12 | 8.48 | 5.03 |
Distributions from net investment income | (.40) | (.28)C | (.23) | (.08) | (.12) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.41) | (.31) | (.23) | (.08) | (.12) |
Net asset value, end of period | $40.25 | $39.01 | $38.91 | $36.02 | $27.62 |
Total ReturnD,E | 4.33% | 1.07% | 8.74% | 30.77% | 22.29% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .86% | .93% | .96% | 1.04% | 1.21% |
Expenses net of fee waivers, if any | .86% | .93% | .96% | 1.04% | 1.21% |
Expenses net of all reductions | .86% | .93% | .96% | 1.03% | 1.21% |
Net investment income (loss) | 1.48% | .89% | .68% | .73% | - %B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $203 | $215 | $233 | $243 | $203 |
Portfolio turnover rateH | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $40.40 | $40.28 | $37.28 | $28.58 | $23.48 |
Income from Investment Operations | |||||
Net investment income (loss)A | .49 | .28 | .18 | .18 | (.05)B |
Net realized and unrealized gain (loss) | 1.14 | .06 | 2.98 | 8.54 | 5.22 |
Total from investment operations | 1.63 | .34 | 3.16 | 8.72 | 5.17 |
Distributions from net investment income | (.30) | (.19)C | (.16) | (.02) | (.07) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.31) | (.22) | (.16) | (.02) | (.07) |
Net asset value, end of period | $41.72 | $40.40 | $40.28 | $37.28 | $28.58 |
Total ReturnD,E | 4.11% | .86% | 8.51% | 30.52% | 22.08% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.08% | 1.15% | 1.17% | 1.23% | 1.38% |
Expenses net of fee waivers, if any | 1.08% | 1.14% | 1.17% | 1.23% | 1.38% |
Expenses net of all reductions | 1.07% | 1.14% | 1.17% | 1.22% | 1.38% |
Net investment income (loss) | 1.27% | .68% | .47% | .54% | (.17)%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $263 | $294 | $324 | $335 | $283 |
Portfolio turnover rateH | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $35.12 | $35.07 | $32.52 | $25.06 | $20.64 |
Income from Investment Operations | |||||
Net investment income (loss)A | .24 | .05 | (.03) | (.01) | (.17)B |
Net realized and unrealized gain (loss) | .97 | .07 | 2.60 | 7.47 | 4.59 |
Total from investment operations | 1.21 | .12 | 2.57 | 7.46 | 4.42 |
Distributions from net investment income | (.13) | (.04)C | (.02) | – | – |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.14) | (.07) | (.02) | – | – |
Net asset value, end of period | $36.19 | $35.12 | $35.07 | $32.52 | $25.06 |
Total ReturnD,E | 3.49% | .33% | 7.91% | 29.77% | 21.41% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.63% | 1.70% | 1.72% | 1.78% | 1.95% |
Expenses net of fee waivers, if any | 1.63% | 1.69% | 1.72% | 1.78% | 1.95% |
Expenses net of all reductions | 1.63% | 1.69% | 1.72% | 1.77% | 1.95% |
Net investment income (loss) | .72% | .13% | (.08)% | (.02)% | (.75)%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $44 | $49 | $53 | $54 | $43 |
Portfolio turnover rateH | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $43.72 | $43.56 | $40.28 | $30.89 | $25.37 |
Income from Investment Operations | |||||
Net investment income (loss)A | .76 | .51 | .40 | .37 | .09B |
Net realized and unrealized gain (loss) | 1.21 | .07 | 3.21 | 9.20 | 5.62 |
Total from investment operations | 1.97 | .58 | 3.61 | 9.57 | 5.71 |
Distributions from net investment income | (.51) | (.39)C | (.33) | (.18) | (.19) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.52) | (.42) | (.33) | (.18) | (.19) |
Net asset value, end of period | $45.17 | $43.72 | $43.56 | $40.28 | $30.89 |
Total ReturnD | 4.64% | 1.35% | 9.05% | 31.14% | 22.69% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .56% | .67% | .69% | .73% | .89% |
Expenses net of fee waivers, if any | .56% | .67% | .69% | .73% | .89% |
Expenses net of all reductions | .55% | .66% | .69% | .72% | .89% |
Net investment income (loss) | 1.79% | 1.16% | .95% | 1.03% | .31%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $713 | $716 | $786 | $681 | $396 |
Portfolio turnover rateG | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $43.74 | $43.57 | $40.28 | $30.89 | $25.38 |
Income from Investment Operations | |||||
Net investment income (loss)A | .80 | .58 | .47 | .43 | .14B |
Net realized and unrealized gain (loss) | 1.22 | .07 | 3.20 | 9.18 | 5.61 |
Total from investment operations | 2.02 | .65 | 3.67 | 9.61 | 5.75 |
Distributions from net investment income | (.57) | (.45)C | (.38) | (.22) | (.24) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.58) | (.48) | (.38) | (.22) | (.24) |
Net asset value, end of period | $45.18 | $43.74 | $43.57 | $40.28 | $30.89 |
Total ReturnD | 4.76% | 1.51% | 9.21% | 31.34% | 22.93% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .44% | .51% | .53% | .58% | .71% |
Expenses net of fee waivers, if any | .44% | .51% | .53% | .58% | .71% |
Expenses net of all reductions | .43% | .51% | .53% | .57% | .71% |
Net investment income (loss) | 1.91% | 1.31% | 1.11% | 1.18% | .50%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $68 | $72 | $97 | $119 | $70 |
Portfolio turnover rateG | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.71 | $41.57 | $38.46 | $29.51 | $24.26 |
Income from Investment Operations | |||||
Net investment income (loss)A | .70 | .48 | .37 | .34 | .08B |
Net realized and unrealized gain (loss) | 1.15 | .08 | 3.06 | 8.79 | 5.37 |
Total from investment operations | 1.85 | .56 | 3.43 | 9.13 | 5.45 |
Distributions from net investment income | (.48) | (.39)C | (.32) | (.18) | (.20) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.49) | (.42) | (.32) | (.18) | (.20) |
Net asset value, end of period | $43.07 | $41.71 | $41.57 | $38.46 | $29.51 |
Total ReturnD | 4.57% | 1.36% | 9.01% | 31.11% | 22.67% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .61% | .68% | .71% | .76% | .90% |
Expenses net of fee waivers, if any | .61% | .68% | .71% | .76% | .90% |
Expenses net of all reductions | .61% | .68% | .71% | .75% | .90% |
Net investment income (loss) | 1.74% | 1.14% | .93% | 1.00% | .31%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $73 | $65 | $86 | $74 | $66 |
Portfolio turnover rateG | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, futures contracts, passive foreign investment companies (PFIC), partnerships, market discount, 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 | $141,526 |
Gross unrealized depreciation | (59,492) |
Net unrealized appreciation (depreciation) on securities | $82,034 |
Tax Cost | $1,286,552 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $15,540 |
Undistributed long-term capital gain | $229,829 |
Net unrealized appreciation (depreciation) on securities and other investments | $82,034 |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $15,684 | $ 13,019 |
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 $735 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 $1,665,640 and $1,581,067, 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 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 annual management fee rate, including the performance adjustment, was .34% 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% | $500 | $– |
Class T | .25% | .25% | 1,325 | 6 |
Class B | .75% | .25% | 16 | 12 |
Class C | .75% | .25% | 440 | 20 |
$2,281 | $38 |
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 | $16 |
Class T | 7 |
Class B(a) | –(b) |
Class C(a) | 1 |
$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, 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 | |
Class A | $452 | .23 |
Class T | 497 | .19 |
Class B | 4 | .28 |
Class C | 107 | .24 |
Fidelity Value Strategies Fund | 1,229 | .17 |
Class K | 33 | .05 |
Class I | 141 | .22 |
$2,463 |
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 $96 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 | $4,699 | .59% | $1 |
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.
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 $4 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 $351. During the period, there were no securities loaned to FCM.
9. 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 $3,746. The weighted average interest rate was .91%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. 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 $60 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.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $2,186 | $1,691 |
Class T | 2,155 | 1,553 |
Class C | 187 | 56 |
Fidelity Value Strategies Fund | 9,139 | 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 |
12. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 471 | 391 | $17,474 | $15,470 |
Reinvestment of distributions | 58 | 46 | 2,110 | 1,760 |
Shares redeemed | (998) | (904) | (37,279) | (35,567) |
Net increase (decrease) | (469) | (467) | $(17,695) | $(18,337) |
Class T | ||||
Shares sold | 349 | 486 | $13,447 | $19,926 |
Reinvestment of distributions | 54 | 41 | 2,045 | 1,646 |
Shares redeemed | (1,385) | (1,296) | (53,890) | (52,610) |
Net increase (decrease) | (982) | (769) | $(38,398) | $(31,038) |
Class B | ||||
Shares sold | – | – | $9 | $12 |
Shares redeemed | (110) | (95) | (3,723) | (3,438) |
Net increase (decrease) | (110) | (95) | $(3,714) | $(3,426) |
Class C | ||||
Shares sold | 78 | 131 | $2,605 | $4,724 |
Reinvestment of distributions | 6 | 3 | 191 | 95 |
Shares redeemed | (263) | (237) | (8,759) | (8,407) |
Net increase (decrease) | (179) | (103) | $(5,963) | $(3,588) |
Fidelity Value Strategies Fund | ||||
Shares sold | 9,301 | 3,980 | $395,357 | $174,437 |
Reinvestment of distributions | 182 | 106 | 7,409 | 4,551 |
Shares redeemed | (10,077) | (5,750) | (417,147) | (250,149) |
Net increase (decrease) | (594) | (1,664) | $(14,381) | $(71,161) |
Class K | ||||
Shares sold | 480 | 390 | $20,396 | $17,106 |
Reinvestment of distributions | 24 | 22 | 970 | 954 |
Shares redeemed | (644) | (1,001) | (27,300) | (44,142) |
Net increase (decrease) | (140) | (589) | $(5,934) | $(26,082) |
Class I | ||||
Shares sold | 445 | 288 | $18,090 | $12,081 |
Reinvestment of distributions | 19 | 18 | 723 | 748 |
Shares redeemed | (330) | (809) | (13,236) | (34,620) |
Net increase (decrease) | 134 | (503) | $5,577 | $(21,791) |
13. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Value Strategies Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Value Strategies Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Value Strategies Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | .86% | |||
Actual | $1,000.00 | $1,041.10 | $4.39 | |
Hypothetical-C | $1,000.00 | $1,020.70 | $4.34 | |
Class T | 1.08% | |||
Actual | $1,000.00 | $1,039.90 | $5.51 | |
Hypothetical-C | $1,000.00 | $1,019.60 | $5.45 | |
Class C | 1.63% | |||
Actual | $1,000.00 | $1,037.00 | $8.30 | |
Hypothetical-C | $1,000.00 | $1,016.85 | $8.22 | |
Fidelity Value Strategies Fund | .55% | |||
Actual | $1,000.00 | $1,042.70 | $2.81 | |
Hypothetical-C | $1,000.00 | $1,022.25 | $2.78 | |
Class K | .44% | |||
Actual | $1,000.00 | $1,043.20 | $2.25 | |
Hypothetical-C | $1,000.00 | $1,022.80 | $2.23 | |
Class I | .61% | |||
Actual | $1,000.00 | $1,042.10 | $3.11 | |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Value Strategies Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Value Strategies Fund | ||||
Class A | 12/28/2016 | 12/27/2016 | $0.555 | $7.517 |
Class T | 12/28/2016 | 12/27/2016 | $0.456 | $7.517 |
Class C | 12/28/2016 | 12/27/2016 | $0.295 | $7.517 |
Fidelity Value Strategies Fund | 12/28/2016 | 12/27/2016 | $0.663 | $7.517 |
Class I | 12/28/2016 | 12/27/2016 | $0.662 | $7.517 |
Class K | 12/28/2016 | 12/27/2016 | $0.723 | $7.517 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2016, $257,335,586, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class T, Class C, Fidelity Value Strategies Fund, Class I, Class K and designates 100%, 100%, 100%, 89%, 95% and 80% of the dividends distributed in December 18th 2015, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class C, Fidelity Value Strategies Fund, Class I, Class K designates 100%, 100%, 100%, 86%, 91% and 77% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Value Strategies Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Value Strategies Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190643368.jpg)
Fidelity Advisor Value Strategies Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190644205.jpg)
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
SOI-K-ANN-0117
1.863336.108
Fidelity Advisor® Series Growth Opportunities Fund Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Life of fundA |
Fidelity Advisor® Series Growth Opportunities Fund | (2.09)% | 6.79% |
A From November 7, 2013
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Series Growth Opportunities Fund on November 7, 2013, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186133170_740.jpg)
Period Ending Values | ||
$12,230 | Fidelity Advisor® Series Growth Opportunities Fund | |
$13,395 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.'s June 23 vote to exit the European Union – dubbed "Brexit" – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager Kyle Weaver: For the year, the fund returned -2.09%, considerably trailing the 4.25% gain of the benchmark Russell 3000 Growth Index. Versus the benchmark, stock selection in health care and information technology hampered performance. A non-index position in web-hosting firm Endurance International Group Holdings was the fund’s largest individual detractor. Also curbing results was a sizable underweighting in software giant and index name Microsoft, which returned 14% this period. In health care, Ireland’s Endo International and Israel-based Teva Pharmaceutical Industries, the latter a non-index position, detracted. Both are major players in the generic-drug industry. Overweighting biotech Alnylam Pharmaceuticals also hurt. Conversely, picks in consumer discretionary and energy helped results. The fund’s top relative contributor was an out-of-benchmark stake in Wix.com, a competitor of Endurance International in the web-hosting space. A sizable overweighting in wireless carrier T-Mobile US also paid off, as did overweighting cable company Charter Communications.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: Effective September 30, 2016, Kyle Weaver became sole Portfolio Manager of the fund, after having served as Co-Manager since 2015.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Apple, Inc. | 6.0 | 5.3 |
Alphabet, Inc. Class C | 3.7 | 3.0 |
American Tower Corp. | 3.2 | 2.1 |
Amazon.com, Inc. | 3.0 | 3.6 |
Alliance Data Systems Corp. | 2.9 | 1.9 |
Charter Communications, Inc. Class A | 2.8 | 1.7 |
Microsoft Corp. | 2.7 | 1.5 |
Facebook, Inc. Class A | 2.5 | 2.5 |
Tesla Motors, Inc. | 2.3 | 2.2 |
Alphabet, Inc. Class A | 2.2 | 2.7 |
31.3 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 40.0 | 37.2 |
Health Care | 17.2 | 17.1 |
Consumer Discretionary | 14.6 | 17.5 |
Consumer Staples | 7.2 | 7.8 |
Real Estate | 4.9 | 0.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016* | ||
Stocks | 97.8% | |
Convertible Securities | 1.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.2% |
* Foreign investments - 12.2%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 97.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 14.6% | |||
Automobiles - 2.3% | |||
Tesla Motors, Inc. (a)(b) | 72,221 | $13,678,657 | |
Hotels, Restaurants & Leisure - 2.2% | |||
Chipotle Mexican Grill, Inc. (a) | 3,200 | 1,268,256 | |
Starbucks Corp. | 167,600 | 9,715,772 | |
U.S. Foods Holding Corp. | 98,200 | 2,244,852 | |
13,228,880 | |||
Household Durables - 0.3% | |||
Newell Brands, Inc. | 38,100 | 1,791,081 | |
Internet & Direct Marketing Retail - 3.9% | |||
Amazon.com, Inc. (a) | 23,900 | 17,938,623 | |
Expedia, Inc. | 3,500 | 434,175 | |
Groupon, Inc. Class A (a) | 222,300 | 882,531 | |
Priceline Group, Inc. (a) | 1,500 | 2,255,520 | |
Takeaway.com Holding BV (c) | 15,800 | 393,522 | |
Wayfair LLC Class A (a) | 24,100 | 878,445 | |
22,782,816 | |||
Media - 4.2% | |||
Charter Communications, Inc. Class A (a) | 59,262 | 16,315,421 | |
Comcast Corp. Class A | 73,000 | 5,074,230 | |
Liberty Global PLC: | |||
Class A (a) | 31,300 | 980,316 | |
LiLAC Class A (a) | 2 | 43 | |
Lions Gate Entertainment Corp. (b) | 60,200 | 1,408,680 | |
The Walt Disney Co. | 8,900 | 882,168 | |
24,660,858 | |||
Specialty Retail - 0.9% | |||
Home Depot, Inc. | 21,700 | 2,807,980 | |
TJX Companies, Inc. | 35,300 | 2,765,402 | |
5,573,382 | |||
Textiles, Apparel & Luxury Goods - 0.8% | |||
lululemon athletica, Inc. (a) | 22,600 | 1,287,974 | |
NIKE, Inc. Class B | 35,500 | 1,777,485 | |
VF Corp. | 26,100 | 1,422,711 | |
4,488,170 | |||
TOTAL CONSUMER DISCRETIONARY | 86,203,844 | ||
CONSUMER STAPLES - 6.9% | |||
Beverages - 1.7% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 12,600 | 1,904,364 | |
Molson Coors Brewing Co. Class B | 24,600 | 2,411,538 | |
Monster Beverage Corp. (a) | 78,300 | 3,503,925 | |
The Coca-Cola Co. | 56,600 | 2,283,810 | |
10,103,637 | |||
Food & Staples Retailing - 1.7% | |||
Costco Wholesale Corp. | 34,200 | 5,133,762 | |
CVS Health Corp. | 54,800 | 4,213,572 | |
Walgreens Boots Alliance, Inc. | 8,000 | 677,840 | |
10,025,174 | |||
Food Products - 0.3% | |||
Mead Johnson Nutrition Co. Class A | 20,600 | 1,485,054 | |
Personal Products - 0.4% | |||
Coty, Inc. Class A | 137,100 | 2,565,141 | |
Tobacco - 2.8% | |||
Altria Group, Inc. | 9,300 | 594,549 | |
British American Tobacco PLC: | |||
(United Kingdom) | 41,700 | 2,282,668 | |
sponsored ADR | 13,400 | 1,461,136 | |
Imperial Tobacco Group PLC | 31,577 | 1,356,349 | |
Philip Morris International, Inc. | 19,900 | 1,756,772 | |
Reynolds American, Inc. | 167,700 | 9,072,570 | |
16,524,044 | |||
TOTAL CONSUMER STAPLES | 40,703,050 | ||
ENERGY - 1.3% | |||
Oil, Gas & Consumable Fuels - 1.3% | |||
Cabot Oil & Gas Corp. | 54,900 | 1,214,388 | |
Devon Energy Corp. | 34,300 | 1,657,719 | |
PDC Energy, Inc. (a) | 20,500 | 1,526,225 | |
Teekay LNG Partners LP | 44,800 | 687,680 | |
The Williams Companies, Inc. | 31,200 | 957,840 | |
Williams Partners LP | 39,800 | 1,452,700 | |
7,496,552 | |||
FINANCIALS - 2.4% | |||
Banks - 0.6% | |||
Bank of the Ozarks, Inc. | 15,800 | 766,616 | |
HDFC Bank Ltd. sponsored ADR | 46,500 | 3,000,180 | |
3,766,796 | |||
Capital Markets - 1.3% | |||
BlackRock, Inc. Class A | 1,600 | 593,264 | |
CBOE Holdings, Inc. | 59,928 | 4,129,039 | |
MSCI, Inc. | 37,700 | 2,970,760 | |
7,693,063 | |||
Consumer Finance - 0.3% | |||
Synchrony Financial | 44,200 | 1,527,552 | |
Insurance - 0.2% | |||
FNF Group | 36,200 | 1,156,228 | |
TOTAL FINANCIALS | 14,143,639 | ||
HEALTH CARE - 17.2% | |||
Biotechnology - 9.1% | |||
ACADIA Pharmaceuticals, Inc. (a) | 43,246 | 1,167,210 | |
Agios Pharmaceuticals, Inc. (a) | 7,800 | 454,038 | |
Alexion Pharmaceuticals, Inc. (a) | 90,700 | 11,118,913 | |
Alkermes PLC (a) | 17,261 | 980,943 | |
Alnylam Pharmaceuticals, Inc. (a) | 46,377 | 2,034,559 | |
Amgen, Inc. | 62,800 | 9,047,596 | |
Amicus Therapeutics, Inc.(a) | 159,400 | 953,212 | |
BioMarin Pharmaceutical, Inc. (a) | 28,900 | 2,474,707 | |
bluebird bio, Inc. (a) | 24,200 | 1,460,470 | |
Coherus BioSciences, Inc. (a) | 19,000 | 511,100 | |
Five Prime Therapeutics, Inc. (a) | 14,300 | 822,536 | |
Genocea Biosciences, Inc. (a)(b) | 14,933 | 60,031 | |
Gilead Sciences, Inc. | 10,800 | 795,960 | |
Global Blood Therapeutics, Inc. (a) | 6,400 | 122,560 | |
Insmed, Inc. (a) | 69,900 | 954,135 | |
Intercept Pharmaceuticals, Inc. (a) | 2,900 | 293,248 | |
Ionis Pharmaceuticals, Inc. (a) | 100,656 | 4,404,707 | |
Merrimack Pharmaceuticals, Inc. (a) | 79,600 | 438,596 | |
Prothena Corp. PLC (a) | 31,005 | 1,829,915 | |
Regeneron Pharmaceuticals, Inc. (a) | 14,500 | 5,498,980 | |
Regulus Therapeutics, Inc. (a) | 8,700 | 21,315 | |
Rigel Pharmaceuticals, Inc. (a) | 181,900 | 472,940 | |
Sage Therapeutics, Inc. (a) | 6,000 | 300,660 | |
Spark Therapeutics, Inc. (a) | 2,700 | 148,527 | |
TESARO, Inc. (a) | 7,400 | 1,004,106 | |
Vertex Pharmaceuticals, Inc. (a) | 78,000 | 6,365,580 | |
XOMA Corp. (a)(b) | 10,526 | 58,735 | |
53,795,279 | |||
Health Care Equipment & Supplies - 2.5% | |||
Boston Scientific Corp. (a) | 290,700 | 5,947,722 | |
Danaher Corp. | 16,800 | 1,313,256 | |
Insulet Corp. (a) | 44,100 | 1,483,965 | |
Medtronic PLC | 80,600 | 5,884,606 | |
14,629,549 | |||
Health Care Providers & Services - 2.4% | |||
Anthem, Inc. | 53,800 | 7,668,114 | |
Cigna Corp. | 15,900 | 2,142,366 | |
McKesson Corp. | 5,200 | 747,812 | |
UnitedHealth Group, Inc. | 22,000 | 3,483,040 | |
14,041,332 | |||
Health Care Technology - 0.4% | |||
athenahealth, Inc. (a)(b) | 22,723 | 2,149,596 | |
Castlight Health, Inc. Class B (a) | 28,800 | 133,920 | |
2,283,516 | |||
Pharmaceuticals - 2.8% | |||
Allergan PLC | 28,160 | 5,471,488 | |
Endo International PLC (a) | 254,000 | 4,066,540 | |
Innoviva, Inc. (a) | 31,800 | 328,812 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 183,200 | 6,906,640 | |
16,773,480 | |||
TOTAL HEALTH CARE | 101,523,156 | ||
INDUSTRIALS - 4.2% | |||
Air Freight & Logistics - 0.3% | |||
FedEx Corp. | 5,700 | 1,092,519 | |
United Parcel Service, Inc. Class B | 5,700 | 660,744 | |
1,753,263 | |||
Airlines - 1.3% | |||
JetBlue Airways Corp. (a) | 6,700 | 134,603 | |
Southwest Airlines Co. | 4,300 | 200,423 | |
Spirit Airlines, Inc. (a) | 128,600 | 7,150,160 | |
7,485,186 | |||
Electrical Equipment - 0.6% | |||
Acuity Brands, Inc. | 7,700 | 1,935,857 | |
Fortive Corp. | 8,400 | 461,916 | |
Sunrun, Inc. (a)(b) | 281,200 | 1,434,120 | |
3,831,893 | |||
Industrial Conglomerates - 0.4% | |||
3M Co. | 7,400 | 1,270,876 | |
Honeywell International, Inc. | 10,900 | 1,241,946 | |
2,512,822 | |||
Machinery - 0.6% | |||
Allison Transmission Holdings, Inc. | 73,199 | 2,428,011 | |
Caterpillar, Inc. | 13,700 | 1,309,172 | |
3,737,183 | |||
Professional Services - 0.4% | |||
Equifax, Inc. | 5,200 | 595,140 | |
TransUnion Holding Co., Inc. (a) | 56,100 | 1,673,463 | |
2,268,603 | |||
Road & Rail - 0.1% | |||
J.B. Hunt Transport Services, Inc. | 7,300 | 696,201 | |
Trading Companies & Distributors - 0.5% | |||
HD Supply Holdings, Inc. (a) | 68,400 | 2,684,016 | |
TOTAL INDUSTRIALS | 24,969,167 | ||
INFORMATION TECHNOLOGY - 39.5% | |||
Electronic Equipment & Components - 0.4% | |||
CDW Corp. | 7,200 | 368,928 | |
Jabil Circuit, Inc. | 85,102 | 1,799,907 | |
2,168,835 | |||
Internet Software & Services - 11.2% | |||
Alphabet, Inc.: | |||
Class A (a) | 16,800 | 13,034,784 | |
Class C (a) | 29,100 | 22,058,964 | |
Apptio, Inc. | 900 | 17,829 | |
Coupa Software, Inc. | 800 | 25,392 | |
Criteo SA sponsored ADR (a) | 400 | 16,508 | |
Endurance International Group Holdings, Inc. (a) | 806,394 | 6,410,832 | |
Facebook, Inc. Class A (a) | 123,600 | 14,636,712 | |
GoDaddy, Inc. (a)(b) | 115,800 | 4,092,372 | |
The Trade Desk, Inc. | 3,000 | 79,740 | |
Wix.com Ltd. (a) | 120,673 | 5,973,314 | |
66,346,447 | |||
IT Services - 13.0% | |||
Alliance Data Systems Corp. | 74,700 | 17,089,866 | |
Booz Allen Hamilton Holding Corp. Class A | 54,100 | 2,045,521 | |
Capgemini SA | 36,300 | 2,866,205 | |
Cognizant Technology Solutions Corp. Class A (a) | 200,800 | 11,060,064 | |
EPAM Systems, Inc. (a) | 124,300 | 8,191,370 | |
Euronet Worldwide, Inc. (a) | 19,700 | 1,412,884 | |
First Data Corp. Class A (a) | 23,400 | 340,938 | |
Global Payments, Inc. | 69,900 | 4,791,645 | |
Luxoft Holding, Inc. (a) | 115,800 | 6,351,630 | |
MasterCard, Inc. Class A | 59,400 | 6,070,680 | |
PayPal Holdings, Inc. (a) | 32,100 | 1,260,888 | |
Sabre Corp. | 136,300 | 3,523,355 | |
Total System Services, Inc. | 18,300 | 900,726 | |
Travelport Worldwide Ltd. | 205,300 | 2,874,200 | |
Visa, Inc. Class A | 103,100 | 7,971,692 | |
76,751,664 | |||
Semiconductors & Semiconductor Equipment - 1.9% | |||
NVIDIA Corp. | 16,600 | 1,530,520 | |
NXP Semiconductors NV (a) | 61,200 | 6,067,980 | |
Qualcomm, Inc. | 9,200 | 626,796 | |
SolarEdge Technologies, Inc. (a)(b) | 217,511 | 2,871,145 | |
11,096,441 | |||
Software - 7.0% | |||
Activision Blizzard, Inc. | 88,900 | 3,254,629 | |
Adobe Systems, Inc. (a) | 29,500 | 3,032,895 | |
Autodesk, Inc. (a) | 48,400 | 3,514,324 | |
Electronic Arts, Inc. (a) | 39,800 | 3,153,752 | |
Microsoft Corp. | 269,000 | 16,209,940 | |
Paycom Software, Inc. (a) | 13,023 | 584,342 | |
Red Hat, Inc. (a) | 7,700 | 609,147 | |
Salesforce.com, Inc. (a) | 122,348 | 8,809,056 | |
Tyler Technologies, Inc. (a) | 8,800 | 1,310,320 | |
Workday, Inc. Class A (a) | 13,200 | 1,113,024 | |
41,591,429 | |||
Technology Hardware, Storage & Peripherals - 6.0% | |||
Apple, Inc. | 324,100 | 35,819,531 | |
TOTAL INFORMATION TECHNOLOGY | 233,774,347 | ||
MATERIALS - 4.8% | |||
Chemicals - 3.7% | |||
E.I. du Pont de Nemours & Co. | 49,000 | 3,606,890 | |
LyondellBasell Industries NV Class A | 120,600 | 10,892,592 | |
Monsanto Co. | 26,300 | 2,701,273 | |
PPG Industries, Inc. | 42,100 | 4,038,653 | |
The Dow Chemical Co. | 14,800 | 824,656 | |
22,064,064 | |||
Containers & Packaging - 1.1% | |||
Ball Corp. | 87,700 | 6,582,762 | |
TOTAL MATERIALS | 28,646,826 | ||
REAL ESTATE - 4.7% | |||
Equity Real Estate Investment Trusts (REITs) - 4.7% | |||
American Tower Corp. | 183,500 | 18,766,545 | |
Extra Space Storage, Inc. | 80,900 | 5,675,944 | |
Public Storage | 15,800 | 3,306,940 | |
27,749,429 | |||
TELECOMMUNICATION SERVICES - 2.2% | |||
Diversified Telecommunication Services - 1.2% | |||
SBA Communications Corp. Class A (a) | 68,800 | 6,808,448 | |
Wireless Telecommunication Services - 1.0% | |||
T-Mobile U.S., Inc. (a) | 111,300 | 6,033,573 | |
TOTAL TELECOMMUNICATION SERVICES | 12,842,021 | ||
UTILITIES - 0.0% | |||
Electric Utilities - 0.0% | |||
DONG Energy A/S | 1,600 | 54,584 | |
TOTAL COMMON STOCKS | |||
(Cost $506,918,970) | 578,106,615 | ||
Convertible Preferred Stocks - 1.0% | |||
CONSUMER STAPLES - 0.3% | |||
Food & Staples Retailing - 0.2% | |||
Blue Apron, Inc. Series D (a)(d) | 56,277 | 814,328 | |
Tobacco - 0.1% | |||
PAX Labs, Inc. Series C (a)(d) | 273,248 | 811,547 | |
TOTAL CONSUMER STAPLES | 1,625,875 | ||
INFORMATION TECHNOLOGY - 0.5% | |||
Internet Software & Services - 0.5% | |||
Uber Technologies, Inc. Series D, 8.00% (a)(d) | 55,696 | 2,716,418 | |
Software - 0.0% | |||
Cloudera, Inc. Series F (a)(d) | 10,396 | 312,314 | |
TOTAL INFORMATION TECHNOLOGY | 3,028,732 | ||
REAL ESTATE - 0.2% | |||
Real Estate Management & Development - 0.2% | |||
Redfin Corp. Series G (a)(d) | 282,324 | 1,332,569 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $3,748,404) | 5,987,176 | ||
Money Market Funds - 4.4% | |||
Fidelity Cash Central Fund, 0.39% (e) | 6,083,582 | 6,084,798 | |
Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 19,707,131 | 19,711,073 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $25,794,387) | 25,795,871 | ||
TOTAL INVESTMENT PORTFOLIO - 103.2% | |||
(Cost $536,461,761) | 609,889,662 | ||
NET OTHER ASSETS (LIABILITIES) - (3.2)% | (18,901,774) | ||
NET ASSETS - 100% | $590,987,888 |
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 $393,522 or 0.1% 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 $5,987,176 or 1.0% 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 |
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 | $37,446 |
Fidelity Securities Lending Cash Central Fund | 949,879 |
Total | $987,325 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $86,203,844 | $86,203,844 | $-- | $-- |
Consumer Staples | 42,328,925 | 38,420,382 | 2,282,668 | 1,625,875 |
Energy | 7,496,552 | 7,496,552 | -- | -- |
Financials | 14,143,639 | 14,143,639 | -- | -- |
Health Care | 101,523,156 | 101,523,156 | -- | -- |
Industrials | 24,969,167 | 24,969,167 | -- | -- |
Information Technology | 236,803,079 | 233,774,347 | -- | 3,028,732 |
Materials | 28,646,826 | 28,646,826 | -- | -- |
Real Estate | 29,081,998 | 27,749,429 | -- | 1,332,569 |
Telecommunication Services | 12,842,021 | 12,842,021 | -- | -- |
Utilities | 54,584 | 54,584 | -- | -- |
Money Market Funds | 25,795,871 | 25,795,871 | -- | -- |
Total Investments in Securities: | $609,889,662 | $601,619,818 | $2,282,668 | $5,987,176 |
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 | 87.8% |
Ireland | 3.1% |
Netherlands | 2.9% |
Israel | 2.2% |
British Virgin Islands | 1.1% |
United Kingdom | 1.1% |
Others (Individually Less Than 1%) | 1.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2016 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $19,252,447) — See accompanying schedule: Unaffiliated issuers (cost $510,667,374) | $584,093,791 | |
Fidelity Central Funds (cost $25,794,387) | 25,795,871 | |
Total Investments (cost $536,461,761) | $609,889,662 | |
Receivable for investments sold | 2,874,088 | |
Receivable for fund shares sold | 1,519,104 | |
Dividends receivable | 579,715 | |
Distributions receivable from Fidelity Central Funds | 21,553 | |
Prepaid expenses | 1,360 | |
Other receivables | 1,657 | |
Total assets | 614,887,139 | |
Liabilities | ||
Payable for investments purchased | $1,941,566 | |
Payable for fund shares redeemed | 1,941,645 | |
Accrued management fee | 147,806 | |
Other affiliated payables | 105,934 | |
Other payables and accrued expenses | 51,900 | |
Collateral on securities loaned, at value | 19,710,400 | |
Total liabilities | 23,899,251 | |
Net Assets | $590,987,888 | |
Net Assets consist of: | ||
Paid in capital | $498,179,223 | |
Undistributed net investment income | 1,780,441 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 17,600,484 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 73,427,740 | |
Net Assets, for 55,647,262 shares outstanding | $590,987,888 | |
Net Asset Value, offering price and redemption price per share ($590,987,888 ÷ 55,647,262 shares) | $10.62 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2016 | ||
Investment Income | ||
Dividends | $5,298,769 | |
Income from Fidelity Central Funds (including $949,879 from security lending) | 987,325 | |
Total income | 6,286,094 | |
Expenses | ||
Management fee | ||
Basic fee | $3,241,599 | |
Performance adjustment | (978,795) | |
Transfer agent fees | 1,045,077 | |
Accounting and security lending fees | 223,840 | |
Custodian fees and expenses | 35,599 | |
Independent trustees' fees and expenses | 2,586 | |
Audit | 71,797 | |
Legal | 2,105 | |
Interest | 221 | |
Miscellaneous | 5,923 | |
Total expenses before reductions | 3,649,952 | |
Expense reductions | (18,726) | 3,631,226 |
Net investment income (loss) | 2,654,868 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 21,126,120 | |
Fidelity Central Funds | 2,273 | |
Foreign currency transactions | (1,136) | |
Total net realized gain (loss) | 21,127,257 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (36,293,229) | |
Assets and liabilities in foreign currencies | (154) | |
Total change in net unrealized appreciation (depreciation) | (36,293,383) | |
Net gain (loss) | (15,166,126) | |
Net increase (decrease) in net assets resulting from operations | $(12,511,258) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2016 | Year ended November 30, 2015 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,654,868 | $3,766,873 |
Net realized gain (loss) | 21,127,257 | 61,593,311 |
Change in net unrealized appreciation (depreciation) | (36,293,383) | (21,665,232) |
Net increase (decrease) in net assets resulting from operations | (12,511,258) | 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 | 82,016,938 | 49,421,613 |
Reinvestment of distributions | 69,381,877 | 17,614,189 |
Cost of shares redeemed | (111,626,598) | (434,471,004) |
Net increase (decrease) in net assets resulting from share transactions | 39,772,217 | (367,435,202) |
Total increase (decrease) in net assets | (42,120,919) | (341,354,440) |
Net Assets | ||
Beginning of period | 633,108,807 | 974,463,247 |
End of period | $590,987,888 | $633,108,807 |
Other Information | ||
Undistributed net investment income end of period | $1,780,441 | $3,441,800 |
Shares | ||
Sold | 7,910,300 | 4,216,771 |
Issued in reinvestment of distributions | 6,584,295 | 1,574,182 |
Redeemed | (10,624,052) | (36,674,390) |
Net increase (decrease) | 3,870,543 | (30,883,437) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Series Growth Opportunities Fund
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 | .05 | .05C | .02 | –D |
Net realized and unrealized gain (loss) | (.32) | .60 | 1.56 | .23 |
Total from investment operations | (.27) | .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 | $10.62 | $12.23 | $11.79 | $10.23 |
Total ReturnF,G | (2.09)% | 5.71% | 15.51% | 2.30% |
Ratios to Average Net AssetsH,I | ||||
Expenses before reductions | .62% | .74% | .77% | .85%J |
Expenses net of fee waivers, if any | .62% | .74% | .77% | .85%J |
Expenses net of all reductions | .61% | .74% | .77% | .85%J |
Net investment income (loss) | .45% | .44%C | .16% | .38%J |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $590,988 | $633,109 | $974,463 | $852,281 |
Portfolio turnover rateK | 67% | 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
For the period ended November 30, 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 invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, 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 | $102,799,357 |
Gross unrealized depreciation | (31,204,056) |
Net unrealized appreciation (depreciation) on securities | $71,595,301 |
Tax Cost | $538,294,361 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $1,780,442 |
Undistributed long-term capital gain | $19,433,085 |
Net unrealized appreciation (depreciation) on securities and other investments | $71,595,140 |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $4,137,359 | $ 17,366,174 |
Long-term Capital Gains | 65,244,519 | 248,016 |
Total | $69,381,878 | $ 17,614,190 |
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 $389,917,620 and $419,477,798, 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 annual management fee rate, including the performance adjustment, was .38% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annual rate of .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 $8,887 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 | $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 $1,517 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. 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 $14,266 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $4,460.
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 the outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Series Growth Opportunities Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Series Growth Opportunities Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended and for the period from November 7, 2013 (commencement of operations) to November 30, 2013. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Series Growth Opportunities Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended and for the period from November 7, 2013 (commencement of operations) to November 30, 2013, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 19, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Actual | .58% | $1,000.00 | $1,011.40 | $2.92 |
Hypothetical-C | $1,000.00 | $1,022.10 | $2.93 |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Series Growth Opportunities Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Series Growth Opportunities | 12/19/16 | 12/16/16 | $0.037 | $0.355 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30 2016, $19,433,085, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 92% of the dividends distributed, during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 92% of the dividends distributed, during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Series Growth Opportunities Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there were portfolio management changes for the fund in March 2015 and July 2015.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-year period, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Series Growth Opportunities Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190635715.jpg)
Fidelity Advisor Series Growth Opportunities Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190636938.jpg)
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
AXS3-ANN-0117
1.967930.103
Fidelity Advisor® Series Small Cap Fund Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Life of fundA |
Fidelity Advisor® Series Small Cap Fund | 1.96% | 5.81% |
A From November 7, 2013
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Series Small Cap Fund on November 7, 2013, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186133510_740.jpg)
Period Ending Values | ||
$11,890 | Fidelity Advisor® Series Small Cap Fund | |
$12,789 | Russell 2000® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.’s June 23 vote to exit the European Union – dubbed “Brexit” – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500® advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager James Harmon: For the year, the fund gained 1.96%, significantly trailing the 12.08% increase of the benchmark Russell 2000 Index. Performance suffered as market sentiment shifted in favor of lower-quality, higher-priced stocks that we tend to avoid. Relative to the benchmark, stock picking in the information technology and industrials sectors detracted the most. Within the former, an out-of-index stake in Zebra Technologies, a maker of bar-code printers and scanners, was the fund's biggest individual detractor versus the index. The stock fell sharply in May on the firm's weaker-than-expected earnings results. I sold Zebra from the portfolio in June. Also detracting here was Syntel, an Indian provider of technology and business processing outsourcing services, and Blackhawk Network Holdings, a provider of gift cards to retailers. Within industrials, the biggest detractor was Mitie Group, a U.K.-based company focused on facilities-maintenance outsourcing; this out-of-benchmark stock plunged in September after the company preannounced much-weaker-than-expected sales and profits. Elsewhere, a position in First NBC Bank Holding fared poorly, and I eliminated it in June. In contrast, the fund benefited from its stake in a couple of insurance names – Reinsurance Group of America and Primerica – while a stake in lead-acid battery manufacturer EnerSys also contributed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
CDW Corp. | 2.5 | 2.6 |
SYNNEX Corp. | 2.4 | 1.8 |
WEX, Inc. | 2.1 | 1.6 |
Blackhawk Network Holdings, Inc. | 2.0 | 1.4 |
EnerSys | 1.8 | 1.3 |
The Ensign Group, Inc. | 1.7 | 1.7 |
Univar, Inc. | 1.7 | 0.0 |
Premier, Inc. | 1.5 | 0.0 |
Reinsurance Group of America, Inc. | 1.5 | 1.2 |
Marriott Vacations Worldwide Corp. | 1.5 | 0.0 |
18.7 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 19.9 | 17.2 |
Industrials | 17.7 | 14.0 |
Financials | 16.7 | 22.1 |
Health Care | 11.3 | 16.5 |
Consumer Discretionary | 10.0 | 11.7 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016* | ||
Stocks and Equity Futures | 98.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.2% |
* Foreign investments - 20.4%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 96.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 10.0% | |||
Auto Components - 2.6% | |||
Gentherm, Inc. (a) | 55,500 | $1,767,675 | |
Standard Motor Products, Inc. | 67,275 | 3,359,714 | |
Tenneco, Inc. (a) | 109,300 | 6,443,235 | |
11,570,624 | |||
Diversified Consumer Services - 1.6% | |||
Grand Canyon Education, Inc. (a) | 84,100 | 4,802,110 | |
Meiko Network Japan Co. Ltd. | 23,900 | 207,427 | |
Tsukada Global Holdings, Inc. | 392,500 | 2,478,773 | |
7,488,310 | |||
Hotels, Restaurants & Leisure - 1.7% | |||
Bojangles', Inc. (a) | 61,838 | 1,106,900 | |
Marriott Vacations Worldwide Corp. | 84,100 | 6,529,524 | |
7,636,424 | |||
Household Durables - 2.0% | |||
PulteGroup, Inc. | 302,700 | 5,708,922 | |
Tupperware Brands Corp. | 58,900 | 3,265,416 | |
8,974,338 | |||
Internet & Direct Marketing Retail - 0.4% | |||
Duluth Holdings, Inc. (b) | 58,900 | 1,973,739 | |
Leisure Products - 0.7% | |||
Nautilus, Inc. (a) | 185,000 | 3,182,000 | |
Textiles, Apparel & Luxury Goods - 1.0% | |||
Steven Madden Ltd. (a) | 117,700 | 4,360,785 | |
TOTAL CONSUMER DISCRETIONARY | 45,186,220 | ||
CONSUMER STAPLES - 2.2% | |||
Beverages - 0.4% | |||
Britvic PLC | 267,900 | 1,915,648 | |
Food & Staples Retailing - 1.8% | |||
McColl's Retail Group PLC | 823,600 | 1,803,355 | |
Sundrug Co. Ltd. | 41,000 | 2,872,753 | |
Tsuruha Holdings, Inc. | 33,900 | 3,474,007 | |
8,150,115 | |||
TOTAL CONSUMER STAPLES | 10,065,763 | ||
ENERGY - 2.3% | |||
Oil, Gas & Consumable Fuels - 2.3% | |||
HollyFrontier Corp. | 168,200 | 4,839,114 | |
World Fuel Services Corp. | 124,415 | 5,531,491 | |
10,370,605 | |||
FINANCIALS - 16.7% | |||
Banks - 9.3% | |||
Allegiance Bancshares, Inc. (a) | 63,420 | 1,940,652 | |
Bank of Hawaii Corp. | 67,300 | 5,610,801 | |
Bank of the Ozarks, Inc. | 94,200 | 4,570,584 | |
ConnectOne Bancorp, Inc. | 259,294 | 6,093,409 | |
East West Bancorp, Inc. | 38,700 | 1,852,956 | |
German American Bancorp, Inc. | 96,794 | 4,591,907 | |
Great Western Bancorp, Inc. | 98,316 | 3,932,640 | |
Home Bancshares, Inc. | 134,500 | 3,479,515 | |
Investors Bancorp, Inc. | 369,999 | 5,009,786 | |
ServisFirst Bancshares, Inc. | 68,850 | 5,068,737 | |
42,150,987 | |||
Diversified Financial Services - 0.6% | |||
Scandinavian Tobacco Group A/S | 168,135 | 2,658,412 | |
Insurance - 5.4% | |||
Enstar Group Ltd. (a) | 21,900 | 4,306,635 | |
James River Group Holdings Ltd. | 95,100 | 3,706,998 | |
Primerica, Inc. (b) | 70,659 | 4,995,591 | |
Reinsurance Group of America, Inc. | 55,500 | 6,773,775 | |
Selective Insurance Group, Inc. | 117,700 | 4,837,470 | |
24,620,469 | |||
Thrifts & Mortgage Finance - 1.4% | |||
Essent Group Ltd. (a) | 103,400 | 3,155,768 | |
Meridian Bancorp, Inc. | 174,710 | 3,101,103 | |
6,256,871 | |||
TOTAL FINANCIALS | 75,686,739 | ||
HEALTH CARE - 11.3% | |||
Health Care Equipment & Supplies - 1.5% | |||
Ansell Ltd. (a) | 131,692 | 2,195,278 | |
Fukuda Denshi Co. Ltd. | 22,600 | 1,235,594 | |
LivaNova PLC (a) | 72,400 | 3,205,148 | |
6,636,020 | |||
Health Care Providers & Services - 6.1% | |||
American Renal Associates Holdings, Inc. | 153,069 | 3,737,945 | |
MEDNAX, Inc. (a) | 67,220 | 4,400,893 | |
Premier, Inc. (a) | 231,882 | 6,988,923 | |
Providence Service Corp. (a) | 45,821 | 1,682,089 | |
Ship Healthcare Holdings, Inc. | 83,700 | 2,204,090 | |
Sigma Pharmaceuticals Ltd. | 1,104,203 | 1,003,982 | |
The Ensign Group, Inc. | 353,100 | 7,634,022 | |
27,651,944 | |||
Life Sciences Tools & Services - 2.3% | |||
ICON PLC (a) | 58,800 | 4,447,632 | |
VWR Corp. (a) | 218,600 | 5,945,920 | |
10,393,552 | |||
Pharmaceuticals - 1.4% | |||
Akorn, Inc. (a) | 134,500 | 2,854,090 | |
Kaken Pharmaceutical Co. Ltd. | 58,800 | 3,154,371 | |
6,008,461 | |||
TOTAL HEALTH CARE | 50,689,977 | ||
INDUSTRIALS - 17.7% | |||
Aerospace & Defense - 2.2% | |||
Moog, Inc. Class A (a) | 81,490 | 5,690,447 | |
Teledyne Technologies, Inc. (a) | 33,600 | 4,195,632 | |
9,886,079 | |||
Air Freight & Logistics - 0.9% | |||
Hub Group, Inc. Class A (a) | 92,500 | 3,963,625 | |
Commercial Services & Supplies - 4.3% | |||
Coor Service Management Holding AB | 263,300 | 1,484,538 | |
Deluxe Corp. | 84,100 | 5,693,570 | |
Loomis AB (B Shares) | 90,800 | 2,402,221 | |
Mitie Group PLC | 1,025,600 | 2,638,322 | |
UniFirst Corp. | 33,600 | 4,749,360 | |
West Corp. | 108,800 | 2,595,968 | |
19,563,979 | |||
Construction & Engineering - 2.2% | |||
Argan, Inc. | 67,300 | 4,068,285 | |
EMCOR Group, Inc. | 84,100 | 5,834,017 | |
9,902,302 | |||
Electrical Equipment - 1.8% | |||
EnerSys | 104,300 | 8,300,194 | |
Machinery - 1.8% | |||
Hy-Lok Corp. | 101,581 | 1,945,228 | |
Standex International Corp. | 71,829 | 6,328,135 | |
8,273,363 | |||
Marine - 0.5% | |||
SITC International Holdings Co. Ltd. | 3,384,000 | 2,094,140 | |
Professional Services - 2.3% | |||
Benefit One, Inc. | 98,000 | 2,315,465 | |
ICF International, Inc. (a) | 63,776 | 3,530,002 | |
On Assignment, Inc. (a) | 55,500 | 2,291,595 | |
WS Atkins PLC | 129,500 | 2,273,287 | |
10,410,349 | |||
Trading Companies & Distributors - 1.7% | |||
Univar, Inc. (a) | 302,700 | 7,537,230 | |
TOTAL INDUSTRIALS | 79,931,261 | ||
INFORMATION TECHNOLOGY - 19.9% | |||
Electronic Equipment & Components - 7.7% | |||
CDW Corp. | 218,600 | 11,201,063 | |
ePlus, Inc. (a) | 23,841 | 2,651,119 | |
Fabrinet (a) | 117,700 | 5,037,560 | |
Insight Enterprises, Inc. (a) | 144,600 | 5,063,892 | |
SYNNEX Corp. | 90,813 | 10,616,948 | |
34,570,582 | |||
Internet Software & Services - 1.9% | |||
j2 Global, Inc. | 67,300 | 4,947,223 | |
Stamps.com, Inc. (a)(b) | 35,300 | 3,748,860 | |
8,696,083 | |||
IT Services - 7.5% | |||
Blackhawk Network Holdings, Inc. (a) | 257,800 | 9,280,800 | |
EVERTEC, Inc. | 225,400 | 4,113,550 | |
Global Payments, Inc. | 60,500 | 4,147,275 | |
Maximus, Inc. | 70,800 | 3,914,532 | |
Syntel, Inc. | 159,800 | 3,100,120 | |
WEX, Inc. (a) | 84,100 | 9,293,891 | |
33,850,168 | |||
Semiconductors & Semiconductor Equipment - 0.5% | |||
Integrated Device Technology, Inc. (a) | 101,800 | 2,382,120 | |
Software - 1.1% | |||
NIIT Technologies Ltd. | 87,437 | 541,427 | |
Zensar Technologies Ltd. | 315,574 | 4,622,075 | |
5,163,502 | |||
Technology Hardware, Storage & Peripherals - 1.2% | |||
NCR Corp. (a) | 134,500 | 5,211,875 | |
TOTAL INFORMATION TECHNOLOGY | 89,874,330 | ||
MATERIALS - 7.0% | |||
Chemicals - 2.2% | |||
Ingevity Corp. (a) | 43,700 | 2,288,569 | |
PolyOne Corp. | 168,200 | 5,545,554 | |
SK Kaken Co. Ltd. | 23,000 | 2,197,922 | |
10,032,045 | |||
Containers & Packaging - 3.5% | |||
Berry Plastics Group, Inc. (a) | 117,700 | 5,857,929 | |
Greif, Inc. Class A | 109,300 | 5,614,741 | |
Silgan Holdings, Inc. | 87,400 | 4,327,174 | |
15,799,844 | |||
Paper & Forest Products - 1.3% | |||
Neenah Paper, Inc. | 69,108 | 5,867,269 | |
TOTAL MATERIALS | 31,699,158 | ||
REAL ESTATE - 7.6% | |||
Equity Real Estate Investment Trusts (REITs) - 3.1% | |||
CBL & Associates Properties, Inc. | 336,300 | 3,988,518 | |
National Health Investors, Inc. | 55,500 | 3,927,180 | |
Tanger Factory Outlet Centers, Inc. | 109,300 | 3,767,571 | |
VEREIT, Inc. | 269,100 | 2,230,839 | |
13,914,108 | |||
Real Estate Management & Development - 4.5% | |||
CBRE Group, Inc. (a) | 168,200 | 4,884,528 | |
Daito Trust Construction Co. Ltd. | 23,200 | 3,615,711 | |
Open House Co. Ltd. | 89,000 | 2,223,502 | |
Relo Holdings Corp. | 24,900 | 3,436,377 | |
Savills PLC | 234,400 | 1,964,985 | |
Sumitomo Real Estate Sales Co. Ltd. | 110,300 | 2,721,881 | |
Takara Leben Co. Ltd. | 92,700 | 552,824 | |
The RMR Group, Inc. | 17,100 | 709,650 | |
20,109,458 | |||
TOTAL REAL ESTATE | 34,023,566 | ||
TELECOMMUNICATION SERVICES - 0.1% | |||
Diversified Telecommunication Services - 0.1% | |||
APT Satellite Holdings Ltd. | 694,750 | 377,090 | |
Asia Satellite Telecommunications Holdings Ltd. | 160,500 | 206,923 | |
584,013 | |||
UTILITIES - 1.9% | |||
Gas Utilities - 1.3% | |||
Amerigas Partners LP | 105,900 | 4,752,792 | |
Star Gas Partners LP | 100,800 | 982,800 | |
5,735,592 | |||
Multi-Utilities - 0.6% | |||
Telecom Plus PLC | 168,100 | 2,631,187 | |
TOTAL UTILITIES | 8,366,779 | ||
TOTAL COMMON STOCKS | |||
(Cost $376,052,209) | 436,478,411 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.3% | |||
U.S. Treasury Bills, yield at date of purchase 0.33% to 0.49% 12/1/16 to 3/2/17 (c) | |||
(Cost $1,279,486) | 1,280,000 | 1,279,496 | |
Shares | Value | ||
Money Market Funds - 6.7% | |||
Fidelity Cash Central Fund, 0.39% (d) | 22,382,478 | $22,386,954 | |
Fidelity Securities Lending Cash Central Fund 0.48% (d)(e) | 8,106,290 | 8,107,911 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $30,492,747) | 30,494,865 | ||
TOTAL INVESTMENT PORTFOLIO - 103.7% | |||
(Cost $407,824,442) | 468,252,772 | ||
NET OTHER ASSETS (LIABILITIES) - (3.7)% | (16,884,517) | ||
NET ASSETS - 100% | $451,368,255 |
Futures Contracts | |||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||
Equity Index Contracts | |||
73 ICE Russell 2000 Index Contracts (United States) | Dec. 2016 | 9,652,790 | $1,096,795 |
The face value of futures purchased as a percentage of Net Assets is 2.1%
For the period, the average monthly underlying face amount at value for futures contracts in the aggregate was $25,131,308.
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 $919,933.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 | $105,315 |
Fidelity Securities Lending Cash Central Fund | 92,947 |
Total | $198,262 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $45,186,220 | $42,500,020 | $2,686,200 | $-- |
Consumer Staples | 10,065,763 | 3,719,003 | 6,346,760 | -- |
Energy | 10,370,605 | 10,370,605 | -- | -- |
Financials | 75,686,739 | 75,686,739 | -- | -- |
Health Care | 50,689,977 | 40,896,662 | 9,793,315 | -- |
Industrials | 79,931,261 | 77,615,796 | 2,315,465 | -- |
Information Technology | 89,874,330 | 84,710,828 | 5,163,502 | -- |
Materials | 31,699,158 | 29,501,236 | 2,197,922 | -- |
Real Estate | 34,023,566 | 21,473,271 | 12,550,295 | -- |
Telecommunication Services | 584,013 | 584,013 | -- | -- |
Utilities | 8,366,779 | 8,366,779 | -- | -- |
U.S. Government and Government Agency Obligations | 1,279,496 | -- | 1,279,496 | -- |
Money Market Funds | 30,494,865 | 30,494,865 | -- | -- |
Total Investments in Securities: | $468,252,772 | $425,919,817 | $42,332,955 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $1,096,795 | $1,096,795 | $-- | $-- |
Total Assets | $1,096,795 | $1,096,795 | $-- | $-- |
Total Derivative Instruments: | $1,096,795 | $1,096,795 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended November 30, 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 | $27,129,755 |
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 November 30, 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) | $1,096,795 | $0 |
Total Equity Risk | 1,096,795 | 0 |
Total Value of Derivatives | $1,096,795 | $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 | 79.6% |
Japan | 7.2% |
United Kingdom | 3.6% |
Bermuda | 2.5% |
Cayman Islands | 1.6% |
India | 1.1% |
Ireland | 1.0% |
Others (Individually Less Than 1%) | 3.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2016 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $7,762,297) — See accompanying schedule: Unaffiliated issuers (cost $377,331,695) | $437,757,907 | |
Fidelity Central Funds (cost $30,492,747) | 30,494,865 | |
Total Investments (cost $407,824,442) | $468,252,772 | |
Foreign currency held at value (cost $27,038) | 27,038 | |
Receivable for investments sold | 15,162,045 | |
Receivable for fund shares sold | 2,738 | |
Dividends receivable | 448,600 | |
Distributions receivable from Fidelity Central Funds | 11,917 | |
Receivable for daily variation margin for derivative instruments | 1,005,333 | |
Prepaid expenses | 1,029 | |
Other receivables | 4,414 | |
Total assets | 484,915,886 | |
Liabilities | ||
Payable for investments purchased | $1,521,765 | |
Payable for fund shares redeemed | 22,462,584 | |
Accrued management fee | 219,996 | |
Payable for daily variation margin for derivative instruments | 1,093,857 | |
Other affiliated payables | 80,700 | |
Other payables and accrued expenses | 61,633 | |
Collateral on securities loaned, at value | 8,107,096 | |
Total liabilities | 33,547,631 | |
Net Assets | $451,368,255 | |
Net Assets consist of: | ||
Paid in capital | $403,425,448 | |
Undistributed net investment income | 2,900,515 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (16,465,433) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 61,507,725 | |
Net Assets, for 41,300,623 shares outstanding | $451,368,255 | |
Net Asset Value, offering price and redemption price per share ($451,368,255 ÷ 41,300,623 shares) | $10.93 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2016 | ||
Investment Income | ||
Dividends | $5,932,600 | |
Special dividends | 2,041,487 | |
Interest | 5,144 | |
Income from Fidelity Central Funds | 198,262 | |
Total income | 8,177,493 | |
Expenses | ||
Management fee | ||
Basic fee | $3,136,998 | |
Performance adjustment | 129,226 | |
Transfer agent fees | 794,569 | |
Accounting and security lending fees | 177,874 | |
Custodian fees and expenses | 68,114 | |
Independent trustees' fees and expenses | 1,954 | |
Audit | 61,551 | |
Legal | 820 | |
Miscellaneous | 3,890 | |
Total expenses before reductions | 4,374,996 | |
Expense reductions | (34,376) | 4,340,620 |
Net investment income (loss) | 3,836,873 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (17,829,700) | |
Fidelity Central Funds | 3,377 | |
Foreign currency transactions | (39,122) | |
Futures contracts | 1,725,254 | |
Total net realized gain (loss) | (16,140,191) | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $238,915) | 21,128,669 | |
Assets and liabilities in foreign currencies | (9,336) | |
Futures contracts | 246,092 | |
Total change in net unrealized appreciation (depreciation) | 21,365,425 | |
Net gain (loss) | 5,225,234 | |
Net increase (decrease) in net assets resulting from operations | $9,062,107 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2016 | Year ended November 30, 2015 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,836,873 | $1,512,532 |
Net realized gain (loss) | (16,140,191) | 21,148,401 |
Change in net unrealized appreciation (depreciation) | 21,365,425 | (1,844,045) |
Net increase (decrease) in net assets resulting from operations | 9,062,107 | 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 | 74,361,903 | 62,308,107 |
Reinvestment of distributions | 22,495,871 | 15,779,312 |
Cost of shares redeemed | (115,621,992) | (117,385,403) |
Net increase (decrease) in net assets resulting from share transactions | (18,764,218) | (39,297,984) |
Total increase (decrease) in net assets | (32,197,982) | (34,260,408) |
Net Assets | ||
Beginning of period | 483,566,237 | 517,826,645 |
End of period | $451,368,255 | $483,566,237 |
Other Information | ||
Undistributed net investment income end of period | $2,900,515 | $721,035 |
Shares | ||
Sold | 7,404,925 | 5,521,950 |
Issued in reinvestment of distributions | 2,149,872 | 1,453,584 |
Redeemed | (11,192,117) | (10,299,915) |
Net increase (decrease) | (1,637,320) | (3,324,381) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Series Small Cap Fund
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 | .09C | .03D | .02 | –E,F |
Net realized and unrealized gain (loss) | .10 | .38 | .82 | .39 |
Total from investment operations | .19 | .41 | .84 | .39 |
Distributions from net investment income | (.03) | (.02) | (.01) | – |
Distributions from net realized gain | (.50) | (.32) | (.03) | – |
Total distributions | (.52)G | (.34) | (.04) | – |
Net asset value, end of period | $10.93 | $11.26 | $11.19 | $10.39 |
Total ReturnH,I | 1.96% | 3.81% | 8.12% | 3.90% |
Ratios to Average Net AssetsJ,K | ||||
Expenses before reductions | .97% | 1.04% | .94% | 1.07%L |
Expenses net of fee waivers, if any | .97% | 1.03% | .94% | .95%L |
Expenses net of all reductions | .97% | 1.02% | .94% | .95%L |
Net investment income (loss) | .85%C | .30%D | .16% | (.25)%E,L |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $451,368 | $483,566 | $517,827 | $485,539 |
Portfolio turnover rateM | 90% | 35% | 58% | 4%N |
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 $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%.
D Net Investment income per share reflects a large, non-recurring dividends 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%.
E 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)%.
F Amount represents less than $.005 per share.
G 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.
H Total returns for periods of less than one year are not annualized.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J 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.
K 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.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
N Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, market discount, 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 | $76,260,235 |
Gross unrealized depreciation | (15,881,375) |
Net unrealized appreciation (depreciation) on securities | $60,378,860 |
Tax Cost | $407,873,912 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $2,901,205 |
Capital loss carryforward | $(15,318,328) |
Net unrealized appreciation (depreciation) on securities and other investments | $60,360,072 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(6,074,982) |
Long-term | (9,243,346) |
Total capital loss carryforward | $(15,318,328) |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $1,156,042 | $ 15,779,312 |
Long-term Capital Gains | 21,339,829 | – |
Total | $22,495,871 | $ 15,779,312 |
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 $1,725,254 and a change in net unrealized appreciation (depreciation) of $246,092 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 $380,803,171 and $398,388,851, 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 annual management fee rate, including the performance adjustment, was .73% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annual rate of .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 $16,480 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 $1,730.
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 $1,147 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 $92,947. 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 $31,039 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $3,337.
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Series Small Cap Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Advisor Series Small Cap Fund (a fund of Fidelity Advisor Series I) at November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Advisor Series Small Cap Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at November 30, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 19, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Actual | .90% | $1,000.00 | $1,063.20 | $4.64 |
Hypothetical-C | $1,000.00 | $1,020.50 | $4.55 |
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
Distributions (Unaudited)
The fund designates 89% of the dividend distributed in December 2015 during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 100% of the dividend distributed in December 2015 during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Series Small Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-year period, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Series Small Cap Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190638203.jpg)
Fidelity Advisor Series Small Cap Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190638813.jpg)
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
AXS5-ANN-0117
1.967941.103
Fidelity Advisor® Series Equity Growth Fund Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Life of fundA |
Fidelity Advisor® Series Equity Growth Fund | (0.11)% | 4.83% |
A From June 6, 2014
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Series Equity Growth Fund on June 6, 2014, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186131725_740.jpg)
Period Ending Values | ||
$ 11,244 | Fidelity Advisor® Series Equity Growth Fund | |
$ 11,927 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.’s June 23 vote to exit the European Union – dubbed “Brexit” – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager Jason Weiner: For the year, the fund returned -0.11%, underperforming the 4.25% gain of the benchmark Russell 3000 Growth Index. Versus the benchmark, picks in health care detracted most by far, with a non-index stake in Canada-based Valeant Pharmaceuticals International the fund’s largest individual detractor. Several factors contributed to the stock’s decline, including allegations of improper sales practices at the company. Valeant also announced an accounting error that it said would likely lead to financial restatements. In June, Valeant paid $47 million to settle the U.S. Department of Justice investigation into its drug-pricing practices. We had sold our position in Valeant by period end. Gilead Sciences was another detractor and a large fund position. The stock was hurt by broad pricing pressures for biotech firms, along with concerns about increased competition and expectations for slowing growth for Gilead’s hepatitis C drugs. Conversely, Facebook, the fund's largest holding, was its biggest relative contributor. Shares rose about 14% on the strength of its revenue from mobile advertising, increasing sales of video advertisements, and ads on its mobile application Instagram.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Facebook, Inc. Class A | 9.0 | 12.7 |
Alphabet, Inc. Class A | 6.0 | 8.1 |
Amazon.com, Inc. | 3.9 | 3.2 |
Electronic Arts, Inc. | 3.0 | 2.3 |
Apple, Inc. | 3.0 | 0.0 |
Charter Communications, Inc. Class A | 2.7 | 0.0 |
Home Depot, Inc. | 2.7 | 2.7 |
Reynolds American, Inc. | 1.8 | 1.7 |
UnitedHealth Group, Inc. | 1.8 | 0.0 |
Global Payments, Inc. | 1.6 | 0.9 |
35.5 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 36.7 | 38.4 |
Consumer Discretionary | 17.4 | 15.1 |
Health Care | 13.4 | 12.0 |
Consumer Staples | 8.1 | 6.6 |
Industrials | 6.8 | 9.9 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016* | ||
Stocks and Equity Futures | 98.6% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.3% |
* Foreign investments - 7.1%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 94.1% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 17.4% | |||
Diversified Consumer Services - 0.8% | |||
Bright Horizons Family Solutions, Inc. (a) | 55,500 | $3,819,510 | |
Houghton Mifflin Harcourt Co. (a) | 73,500 | 812,175 | |
Nord Anglia Education, Inc. (a) | 81,129 | 1,947,096 | |
ServiceMaster Global Holdings, Inc. (a) | 22,200 | 848,484 | |
7,427,265 | |||
Hotels, Restaurants & Leisure - 3.6% | |||
Buffalo Wild Wings, Inc. (a) | 4,600 | 775,560 | |
Dave & Buster's Entertainment, Inc. (a) | 129,000 | 6,043,650 | |
Domino's Pizza, Inc. | 23,689 | 3,980,700 | |
Papa John's International, Inc. | 56,300 | 4,974,668 | |
Popeyes Louisiana Kitchen, Inc. (a) | 38,600 | 2,311,368 | |
Starbucks Corp. | 223,400 | 12,950,498 | |
Wingstop, Inc. | 49,700 | 1,525,293 | |
32,561,737 | |||
Internet & Direct Marketing Retail - 4.9% | |||
Amazon.com, Inc. (a) | 46,500 | 34,901,505 | |
Ctrip.com International Ltd. ADR (a) | 102,300 | 4,627,029 | |
Netflix, Inc. (a) | 28,700 | 3,357,900 | |
NutriSystem, Inc. | 38,600 | 1,418,550 | |
44,304,984 | |||
Media - 3.3% | |||
Charter Communications, Inc. Class A (a) | 89,600 | 24,667,776 | |
Cinemark Holdings, Inc. | 46,800 | 1,864,512 | |
Sirius XM Holdings, Inc. (b) | 750,200 | 3,428,414 | |
29,960,702 | |||
Multiline Retail - 0.6% | |||
Dollar Tree, Inc. (a) | 33,300 | 2,935,728 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 71,300 | 2,142,565 | |
5,078,293 | |||
Specialty Retail - 3.5% | |||
AutoZone, Inc. (a) | 7,100 | 5,560,578 | |
Five Below, Inc. (a) | 1,900 | 74,784 | |
Home Depot, Inc. | 186,700 | 24,158,980 | |
MarineMax, Inc. (a) | 65,600 | 1,233,280 | |
31,027,622 | |||
Textiles, Apparel & Luxury Goods - 0.7% | |||
Kate Spade & Co. (a) | 282,723 | 4,198,437 | |
LVMH Moet Hennessy - Louis Vuitton SA | 13,465 | 2,450,310 | |
6,648,747 | |||
TOTAL CONSUMER DISCRETIONARY | 157,009,350 | ||
CONSUMER STAPLES - 8.1% | |||
Beverages - 3.6% | |||
Anheuser-Busch InBev SA NV ADR | 39,400 | 4,068,838 | |
Constellation Brands, Inc. Class A (sub. vtg.) | 23,400 | 3,536,676 | |
Kweichow Moutai Co. Ltd. (A Shares) | 21,780 | 1,009,529 | |
Molson Coors Brewing Co. Class B | 68,500 | 6,715,055 | |
PepsiCo, Inc. | 41,500 | 4,154,150 | |
Pernod Ricard SA ADR | 81,400 | 1,698,818 | |
The Coca-Cola Co. | 281,300 | 11,350,455 | |
32,533,521 | |||
Food & Staples Retailing - 0.8% | |||
Costco Wholesale Corp. | 35,400 | 5,313,894 | |
Whole Foods Market, Inc. | 54,900 | 1,668,411 | |
6,982,305 | |||
Food Products - 0.5% | |||
Danone SA | 63,100 | 3,952,272 | |
Gores Holdings, Inc. (a) | 19,800 | 256,410 | |
4,208,682 | |||
Household Products - 0.5% | |||
Procter & Gamble Co. | 54,200 | 4,469,332 | |
Personal Products - 0.9% | |||
Estee Lauder Companies, Inc. Class A | 59,300 | 4,607,610 | |
Herbalife Ltd. (a) | 69,200 | 3,392,876 | |
8,000,486 | |||
Tobacco - 1.8% | |||
Reynolds American, Inc. | 310,100 | 16,776,410 | |
TOTAL CONSUMER STAPLES | 72,970,736 | ||
ENERGY - 1.0% | |||
Energy Equipment & Services - 0.8% | |||
Baker Hughes, Inc. | 106,600 | 6,857,578 | |
Oil, Gas & Consumable Fuels - 0.2% | |||
Golar LNG Ltd. | 85,974 | 2,097,766 | |
TOTAL ENERGY | 8,955,344 | ||
FINANCIALS - 6.3% | |||
Banks - 1.7% | |||
First Republic Bank | 109,100 | 8,935,290 | |
JPMorgan Chase & Co. | 75,900 | 6,084,903 | |
Metro Bank PLC | 16,900 | 690,393 | |
15,710,586 | |||
Capital Markets - 3.8% | |||
BlackRock, Inc. Class A | 9,200 | 3,411,268 | |
CME Group, Inc. | 110,938 | 12,526,010 | |
E*TRADE Financial Corp. (a) | 216,200 | 7,461,062 | |
JMP Group, Inc. | 50,300 | 313,369 | |
MSCI, Inc. | 64,500 | 5,082,600 | |
S&P Global, Inc. | 45,600 | 5,425,944 | |
34,220,253 | |||
Diversified Financial Services - 0.5% | |||
Bats Global Markets, Inc. | 30,000 | 954,000 | |
Berkshire Hathaway, Inc. Class B (a) | 18,600 | 2,928,384 | |
Quantenna Communications, Inc. | 28,800 | 546,912 | |
4,429,296 | |||
Thrifts & Mortgage Finance - 0.3% | |||
Essent Group Ltd. (a) | 72,000 | 2,197,440 | |
TOTAL FINANCIALS | 56,557,575 | ||
HEALTH CARE - 13.4% | |||
Biotechnology - 6.1% | |||
Advanced Accelerator Applications SA sponsored ADR | 35,500 | 1,038,375 | |
Alexion Pharmaceuticals, Inc. (a) | 35,200 | 4,315,168 | |
Amgen, Inc. | 80,800 | 11,640,856 | |
Biogen, Inc. (a) | 11,200 | 3,293,584 | |
BioMarin Pharmaceutical, Inc. (a) | 58,300 | 4,992,229 | |
Cytokinetics, Inc. (a) | 26,210 | 314,520 | |
Gilead Sciences, Inc. | 56,900 | 4,193,530 | |
Insmed, Inc. (a) | 247,875 | 3,383,494 | |
Regeneron Pharmaceuticals, Inc. (a) | 14,200 | 5,385,208 | |
Samsung Biologics Co. Ltd. (a) | 726 | 94,944 | |
TESARO, Inc. (a) | 36,500 | 4,952,685 | |
Vertex Pharmaceuticals, Inc. (a) | 136,500 | 11,139,765 | |
54,744,358 | |||
Health Care Equipment & Supplies - 4.1% | |||
Boston Scientific Corp. (a) | 318,200 | 6,510,372 | |
Danaher Corp. | 110,000 | 8,598,700 | |
DexCom, Inc. (a) | 25,200 | 1,645,308 | |
Edwards Lifesciences Corp. (a) | 21,800 | 1,806,130 | |
Intuitive Surgical, Inc. (a) | 11,700 | 7,531,758 | |
Medtronic PLC | 76,200 | 5,563,362 | |
Novadaq Technologies, Inc. (a) | 219,200 | 1,742,640 | |
ResMed, Inc. | 45,600 | 2,803,488 | |
The Cooper Companies, Inc. | 5,100 | 838,899 | |
37,040,657 | |||
Health Care Providers & Services - 2.4% | |||
HealthEquity, Inc. (a) | 76,700 | 3,415,451 | |
Henry Schein, Inc. (a) | 9,100 | 1,355,536 | |
UnitedHealth Group, Inc. | 104,500 | 16,544,440 | |
VCA, Inc. (a) | 8,100 | 507,060 | |
21,822,487 | |||
Pharmaceuticals - 0.8% | |||
Allergan PLC | 18,100 | 3,516,830 | |
Collegium Pharmaceutical, Inc. (a)(b) | 23,500 | 389,160 | |
Patheon NV | 12,700 | 347,472 | |
Zoetis, Inc. Class A | 64,200 | 3,234,396 | |
7,487,858 | |||
TOTAL HEALTH CARE | 121,095,360 | ||
INDUSTRIALS - 6.8% | |||
Aerospace & Defense - 0.8% | |||
Rolls-Royce Holdings PLC | 95,700 | 808,953 | |
Taser International, Inc. (a) | 134,500 | 3,662,435 | |
TransDigm Group, Inc. | 10,900 | 2,740,587 | |
7,211,975 | |||
Airlines - 0.4% | |||
Ryanair Holdings PLC sponsored ADR | 42,280 | 3,375,635 | |
Building Products - 0.3% | |||
A.O. Smith Corp. | 55,666 | 2,707,038 | |
Commercial Services & Supplies - 0.7% | |||
KAR Auction Services, Inc. | 154,300 | 6,505,288 | |
Electrical Equipment - 1.3% | |||
Acuity Brands, Inc. | 19,300 | 4,852,213 | |
Fortive Corp. | 121,450 | 6,678,536 | |
11,530,749 | |||
Industrial Conglomerates - 0.8% | |||
Honeywell International, Inc. | 41,100 | 4,682,934 | |
Roper Technologies, Inc. | 16,000 | 2,897,760 | |
7,580,694 | |||
Machinery - 0.3% | |||
Allison Transmission Holdings, Inc. | 63,100 | 2,093,027 | |
Rational AG | 1,200 | 528,314 | |
2,621,341 | |||
Professional Services - 2.2% | |||
Equifax, Inc. | 41,900 | 4,795,455 | |
Robert Half International, Inc. | 48,400 | 2,171,708 | |
TransUnion Holding Co., Inc. (a) | 85,100 | 2,538,533 | |
WageWorks, Inc. (a) | 136,634 | 10,090,421 | |
19,596,117 | |||
Road & Rail - 0.0% | |||
Swift Transporation Co. (a) | 19,300 | 481,921 | |
TOTAL INDUSTRIALS | 61,610,758 | ||
INFORMATION TECHNOLOGY - 36.6% | |||
Electronic Equipment & Components - 0.2% | |||
CDW Corp. | 34,700 | 1,778,028 | |
Internet Software & Services - 18.0% | |||
Akamai Technologies, Inc. (a) | 88,600 | 5,909,620 | |
Alphabet, Inc. Class A (a) | 68,900 | 53,458,132 | |
CommerceHub, Inc.: | |||
Series A, (a) | 129,269 | 1,954,547 | |
Series C, (a) | 70,820 | 1,044,595 | |
Facebook, Inc. Class A (a) | 686,500 | 81,295,329 | |
GoDaddy, Inc. (a) | 128,600 | 4,544,724 | |
Just Dial Ltd. (a) | 43,239 | 239,138 | |
Just Eat Holding Ltd.(a) | 235,622 | 1,726,114 | |
Shopify, Inc. Class A (a) | 26,000 | 1,083,420 | |
Stamps.com, Inc. (a) | 43,800 | 4,651,560 | |
Twilio, Inc. Class A (b) | 47,100 | 1,597,632 | |
VeriSign, Inc. (a) | 58,500 | 4,612,725 | |
162,117,536 | |||
IT Services - 4.2% | |||
Cognizant Technology Solutions Corp. Class A (a) | 40,700 | 2,241,756 | |
Fidelity National Information Services, Inc. | 34,500 | 2,663,055 | |
Gartner, Inc. (a) | 10,300 | 1,059,046 | |
Global Payments, Inc. | 210,800 | 14,450,340 | |
Square, Inc. (a) | 36,918 | 477,719 | |
Vantiv, Inc. (a) | 54,500 | 3,075,435 | |
Visa, Inc. Class A | 185,500 | 14,342,860 | |
38,310,211 | |||
Semiconductors & Semiconductor Equipment - 1.0% | |||
Maxim Integrated Products, Inc. | 88,814 | 3,487,726 | |
Monolithic Power Systems, Inc. | 41,148 | 3,375,782 | |
Qualcomm, Inc. | 40,200 | 2,738,826 | |
9,602,334 | |||
Software - 9.7% | |||
Activision Blizzard, Inc. | 102,000 | 3,734,220 | |
Adobe Systems, Inc. (a) | 124,500 | 12,799,845 | |
Autodesk, Inc. (a) | 19,500 | 1,415,895 | |
Blackbaud, Inc. | 13,800 | 866,364 | |
Computer Modelling Group Ltd. | 166,300 | 1,089,436 | |
CyberArk Software Ltd. (a) | 16,600 | 846,766 | |
Electronic Arts, Inc. (a) | 340,000 | 26,941,600 | |
Intuit, Inc. | 28,000 | 3,183,040 | |
Microsoft Corp. | 150,700 | 9,081,182 | |
Mobileye NV (a)(b) | 251,100 | 9,348,453 | |
RealPage, Inc. (a) | 38,100 | 1,089,660 | |
Red Hat, Inc. (a) | 64,100 | 5,070,951 | |
Salesforce.com, Inc. (a) | 163,600 | 11,779,200 | |
87,246,612 | |||
Technology Hardware, Storage & Peripherals - 3.5% | |||
Apple, Inc. | 242,600 | 26,812,152 | |
Samsung Electronics Co. Ltd. | 3,179 | 4,713,529 | |
31,525,681 | |||
TOTAL INFORMATION TECHNOLOGY | 330,580,402 | ||
MATERIALS - 1.6% | |||
Chemicals - 0.9% | |||
AdvanSix, Inc. (a) | 2,152 | 40,242 | |
Monsanto Co. | 43,000 | 4,416,530 | |
Sherwin-Williams Co. | 15,000 | 4,030,050 | |
8,486,822 | |||
Construction Materials - 0.7% | |||
Eagle Materials, Inc. | 61,800 | 6,006,960 | |
TOTAL MATERIALS | 14,493,782 | ||
REAL ESTATE - 2.7% | |||
Equity Real Estate Investment Trusts (REITs) - 1.4% | |||
American Tower Corp. | 120,200 | 12,292,854 | |
Real Estate Management & Development - 1.3% | |||
Realogy Holdings Corp. | 481,400 | 11,625,810 | |
TOTAL REAL ESTATE | 23,918,664 | ||
TELECOMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.2% | |||
SBA Communications Corp. Class A (a) | 16,800 | 1,662,528 | |
TOTAL COMMON STOCKS | |||
(Cost $726,320,044) | 848,854,499 | ||
Convertible Preferred Stocks - 0.1% | |||
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
AppNexus, Inc. Series E (a)(c) | |||
(Cost $769,617) | 38,419 | 998,894 | |
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.3% | |||
U.S. Treasury Bills, yield at date of purchase 0.3% to 0.49% 12/29/16 to 2/9/17 (d) | |||
(Cost $3,028,168) | 3,030,000 | 3,028,182 | |
Shares | Value | ||
Money Market Funds - 8.6% | |||
Fidelity Cash Central Fund, 0.39% (e) | 68,255,020 | $68,268,671 | |
Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 8,842,991 | 8,844,760 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $77,099,053) | 77,113,431 | ||
TOTAL INVESTMENT PORTFOLIO - 103.1% | |||
(Cost $807,216,882) | 929,995,006 | ||
NET OTHER ASSETS (LIABILITIES) - (3.1)% | (28,005,518) | ||
NET ASSETS - 100% | $901,989,488 |
Futures Contracts | |||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||
Equity Index Contracts | |||
221 CME E-mini S&P 500 Index Contracts (United States) | Dec. 2016 | 24,296,740 | $380,908 |
156 ICE Russell 1000 Growth Index Contracts (United States) | Dec. 2016 | 16,238,040 | 174,145 |
TOTAL FUTURES CONTRACTS | $555,053 |
The face value of futures purchased as a percentage of Net Assets is 4.5%
For the period, the average monthly underlying face amount at value for futures contracts in the aggregate was $18,527,397.
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 $998,894 or 0.1% 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 $2,117,738.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 |
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 | $252,027 |
Fidelity Securities Lending Cash Central Fund | 163,318 |
Total | $415,345 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $157,009,350 | $157,009,350 | $-- | $-- |
Consumer Staples | 72,970,736 | 68,008,935 | 4,961,801 | -- |
Energy | 8,955,344 | 8,955,344 | -- | -- |
Financials | 56,557,575 | 56,557,575 | -- | -- |
Health Care | 121,095,360 | 121,095,360 | -- | -- |
Industrials | 61,610,758 | 60,801,805 | 808,953 | -- |
Information Technology | 331,579,296 | 330,341,264 | 239,138 | 998,894 |
Materials | 14,493,782 | 14,493,782 | -- | -- |
Real Estate | 23,918,664 | 23,918,664 | -- | -- |
Telecommunication Services | 1,662,528 | 1,662,528 | -- | -- |
U.S. Government and Government Agency Obligations | 3,028,182 | -- | 3,028,182 | -- |
Money Market Funds | 77,113,431 | 77,113,431 | -- | -- |
Total Investments in Securities: | $929,995,006 | $919,958,038 | $9,038,074 | $998,894 |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $555,053 | $555,053 | $-- | $-- |
Total Assets | $555,053 | $555,053 | $-- | $-- |
Total Derivative Instruments: | $555,053 | $555,053 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of November 30, 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) | $555,053 | $0 |
Total Equity Risk | 555,053 | 0 |
Total Value of Derivatives | $555,053 | $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
November 30, 2016 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $8,559,872) — See accompanying schedule: Unaffiliated issuers (cost $730,117,829) | $852,881,575 | |
Fidelity Central Funds (cost $77,099,053) | 77,113,431 | |
Total Investments (cost $807,216,882) | $929,995,006 | |
Receivable for investments sold | 318,947 | |
Receivable for fund shares sold | 4,209,875 | |
Dividends receivable | 898,690 | |
Distributions receivable from Fidelity Central Funds | 36,238 | |
Prepaid expenses | 2,081 | |
Other receivables | 4,588 | |
Total assets | 935,465,425 | |
Liabilities | ||
Payable for investments purchased | $22,311,201 | |
Payable for fund shares redeemed | 1,607,188 | |
Accrued management fee | 280,754 | |
Payable for daily variation margin for derivative instruments | 236,405 | |
Other affiliated payables | 159,054 | |
Other payables and accrued expenses | 39,735 | |
Collateral on securities loaned, at value | 8,841,600 | |
Total liabilities | 33,475,937 | |
Net Assets | $901,989,488 | |
Net Assets consist of: | ||
Paid in capital | $783,622,428 | |
Undistributed net investment income | 475,461 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (5,438,773) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 123,330,372 | |
Net Assets, for 80,408,759 shares outstanding | $901,989,488 | |
Net Asset Value, offering price and redemption price per share ($901,989,488 ÷ 80,408,759 shares) | $11.22 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2016 | ||
Investment Income | ||
Dividends | $6,731,425 | |
Interest | 2,492 | |
Income from Fidelity Central Funds | 415,345 | |
Total income | 7,149,262 | |
Expenses | ||
Management fee | ||
Basic fee | $4,947,203 | |
Performance adjustment | (1,071,433) | |
Transfer agent fees | 1,595,730 | |
Accounting and security lending fees | 306,942 | |
Custodian fees and expenses | 36,851 | |
Independent trustees' fees and expenses | 3,923 | |
Audit | 43,573 | |
Legal | 1,650 | |
Miscellaneous | 7,497 | |
Total expenses before reductions | 5,871,936 | |
Expense reductions | (33,040) | 5,838,896 |
Net investment income (loss) | 1,310,366 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 14,050,026 | |
Fidelity Central Funds | 15,226 | |
Foreign currency transactions | (32,220) | |
Futures contracts | 237,191 | |
Total net realized gain (loss) | 14,270,223 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (18,081,921) | |
Assets and liabilities in foreign currencies | 1,106 | |
Futures contracts | 555,053 | |
Total change in net unrealized appreciation (depreciation) | (17,525,762) | |
Net gain (loss) | (3,255,539) | |
Net increase (decrease) in net assets resulting from operations | $(1,945,173) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2016 | Year ended November 30, 2015 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,310,366 | $1,774,441 |
Net realized gain (loss) | 14,270,223 | (9,803,089) |
Change in net unrealized appreciation (depreciation) | (17,525,762) | 67,261,344 |
Net increase (decrease) in net assets resulting from operations | (1,945,173) | 59,232,696 |
Distributions to shareholders from net investment income | (1,456,889) | (554,508) |
Share transactions | ||
Proceeds from sales of shares | 132,279,798 | 190,823,867 |
Reinvestment of distributions | 1,456,889 | 554,508 |
Cost of shares redeemed | (193,262,817) | (271,672,435) |
Net increase (decrease) in net assets resulting from share transactions | (59,526,130) | (80,294,060) |
Total increase (decrease) in net assets | (62,928,192) | (21,615,872) |
Net Assets | ||
Beginning of period | 964,917,680 | 986,533,552 |
End of period | $901,989,488 | $964,917,680 |
Other Information | ||
Undistributed net investment income end of period | $475,461 | $465,556 |
Shares | ||
Sold | 12,128,698 | 17,849,661 |
Issued in reinvestment of distributions | 133,293 | 53,627 |
Redeemed | (17,651,190) | (24,778,896) |
Net increase (decrease) | (5,389,199) | (6,875,608) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Series Equity Growth Fund
Years ended November 30, | 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 | .02 | .02 | .01 |
Net realized and unrealized gain (loss) | (.03) | .59 | .64 |
Total from investment operations | (.01) | .61 | .65 |
Distributions from net investment income | (.02) | (.01) | – |
Total distributions | (.02) | (.01) | – |
Net asset value, end of period | $11.22 | $11.25 | $10.65 |
Total ReturnC,D | (.11)% | 5.70% | 6.50% |
Ratios to Average Net AssetsE,F | |||
Expenses before reductions | .65% | .74% | .77%G |
Expenses net of fee waivers, if any | .65% | .74% | .77%G |
Expenses net of all reductions | .65% | .73% | .77%G |
Net investment income (loss) | .15% | .19% | .23%G |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $901,989 | $964,918 | $986,534 |
Portfolio turnover rateH | 60% | 65% | 26%I,J |
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 Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
J Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, market discount, 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 | $156,670,426 |
Gross unrealized depreciation | (34,435,177) |
Net unrealized appreciation (depreciation) on securities | $122,235,249 |
Tax Cost | $ 807,759,757 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $475,154 |
Capital loss carryforward | $(4,340,537) |
Net unrealized appreciation (depreciation) on securities and other investments | $122,237,444 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(4,340,537) |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $1,456,889 | $ 554,508 |
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 $237,191 and a change in net unrealized appreciation (depreciation) of $555,053 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 $510,202,671 and $587,426,074, 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 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 annual 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.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annual rate of .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 $9,281 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 $2,318 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 $163,318, including $39,611 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 $26,101 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 $95.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $6,844.
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Series Equity Growth Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Advisor Series Equity Growth Fund (a fund of Fidelity Advisor Series I) at November 30,2016, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Advisor Series Equity Growth Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at November 30, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 19, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Actual | .63% | $1,000.00 | $1,018.10 | $3.18 |
Hypothetical-C | $1,000.00 | $1,021.85 | $3.18 |
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
Distributions (Unaudited)
Fidelity Advisor Series Growth Fund designates 63% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Fidelity Advisor Series Growth Fund designates 73% of the dividends distributed in during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Series Equity Growth Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-year period, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Series Equity Growth Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190633101.jpg)
Fidelity Advisor Series Equity Growth Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190633506.jpg)
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
AXM1-ANN-0117
1.9860268.102
Fidelity® Value Strategies Fund Annual Report November 30, 2016 Fidelity® Value Strategies Fund is a class of Fidelity Advisor® Value Strategies Fund |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Value Strategies Fund | 4.64% | 13.22% | 5.88% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Value Strategies Fund, a class of the fund, on November 30, 2006.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Value Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186130535_740.jpg)
Period Ending Values | ||
$17,703 | Fidelity® Value Strategies Fund | |
$20,622 | Russell Midcap® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.'s June 23 vote to exit the European Union – dubbed "Brexit" – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Thomas Soviero, Portfolio Manager until September 14, 2016, and his successor, Portfolio Manager Matthew Friedman: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) posted gains in the range of 3% to 5%, significantly lagging the 14.25% return of the benchmark Russell Midcap Value Index. Security selection was by far the biggest driver of the fund's disappointing relative result, as some of our largest holdings remained pressured. Sector allocations also hurt. Individual detractors included Netherlands-based LyondellBasell Industries, which saw low oil prices wipe out the relative cost advantage it had enjoyed from using natural-gas derivatives in its chemicals-related products. Shares of Citigroup and Bank of America also detracted from relative performance, due to continued-low interest rates, increased regulation and sluggish economic growth. All three stocks were large, non-benchmark positions for much of the period. Citigroup and Bank of America were not held at period end, and Lyondell was notably reduced. By contrast, the timely purchase of consumer finance company Synchrony Financial helped relative performance, as better-than-expected revenues, write-offs that were not as bad as feared and a post-election rally in financials lifted the stock.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Edison International | 3.1 | 0.0 |
Sempra Energy | 3.0 | 1.3 |
Synchrony Financial | 2.7 | 0.0 |
U.S. Bancorp | 2.6 | 3.3 |
American Tower Corp. | 2.4 | 0.0 |
American Electric Power Co., Inc. | 2.0 | 0.0 |
Wells Fargo & Co. | 2.0 | 1.3 |
Essex Property Trust, Inc. | 1.9 | 0.0 |
Extra Space Storage, Inc. | 1.9 | 0.0 |
E.I. du Pont de Nemours & Co. | 1.8 | 0.0 |
23.4 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 18.3 | 18.0 |
Consumer Discretionary | 12.5 | 15.6 |
Information Technology | 11.8 | 3.9 |
Real Estate | 11.2 | 0.0 |
Industrials | 10.2 | 9.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016 * | ||
Stocks | 99.0% | |
Convertible Securities | 0.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
* Foreign investments - 16.3%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.5% | |||
Auto Components - 1.4% | |||
Delphi Automotive PLC | 289,177 | $18,507 | |
Diversified Consumer Services - 3.3% | |||
H&R Block, Inc. | 533,002 | 11,811 | |
Houghton Mifflin Harcourt Co. (a) | 1,204,356 | 13,308 | |
Service Corp. International | 760,450 | 20,525 | |
45,644 | |||
Hotels, Restaurants & Leisure - 1.0% | |||
Wyndham Worldwide Corp. | 184,467 | 13,280 | |
Household Durables - 0.8% | |||
Tupperware Brands Corp. | 198,997 | 11,032 | |
Internet & Direct Marketing Retail - 1.2% | |||
Liberty Interactive Corp. QVC Group Series A (a) | 815,336 | 16,886 | |
Media - 4.2% | |||
DISH Network Corp. Class A (a) | 247,845 | 14,239 | |
Liberty Broadband Corp. Class C (a) | 130,715 | 9,321 | |
Sinclair Broadcast Group, Inc. Class A | 597,899 | 19,462 | |
Twenty-First Century Fox, Inc. Class A | 504,100 | 14,170 | |
57,192 | |||
Specialty Retail - 0.6% | |||
GameStop Corp. Class A | 313,213 | 7,733 | |
TOTAL CONSUMER DISCRETIONARY | 170,274 | ||
CONSUMER STAPLES - 2.8% | |||
Beverages - 0.9% | |||
Cott Corp. | 1,152,064 | 13,096 | |
Food & Staples Retailing - 1.2% | |||
Whole Foods Market, Inc. | 527,056 | 16,017 | |
Food Products - 0.7% | |||
Darling International, Inc. (a) | 718,222 | 9,703 | |
TOTAL CONSUMER STAPLES | 38,816 | ||
ENERGY - 7.2% | |||
Energy Equipment & Services - 1.5% | |||
Baker Hughes, Inc. | 309,730 | 19,925 | |
Oil, Gas & Consumable Fuels - 5.7% | |||
Anadarko Petroleum Corp. | 195,300 | 13,505 | |
Boardwalk Pipeline Partners, LP | 733,436 | 12,593 | |
ConocoPhillips Co. | 409,800 | 19,883 | |
GasLog Ltd. (b) | 694,861 | 10,909 | |
Teekay Corp. | 1,472,713 | 11,620 | |
Teekay Offshore Partners LP | 1,647,200 | 9,010 | |
77,520 | |||
TOTAL ENERGY | 97,445 | ||
FINANCIALS - 18.3% | |||
Banks - 4.6% | |||
U.S. Bancorp | 731,584 | 36,301 | |
Wells Fargo & Co. | 507,070 | 26,834 | |
63,135 | |||
Capital Markets - 4.6% | |||
Apollo Global Management LLC Class A | 763,750 | 14,710 | |
Legg Mason, Inc. | 511,517 | 16,317 | |
NorthStar Asset Management Group, Inc. | 1,470,900 | 21,710 | |
The Blackstone Group LP | 379,500 | 9,768 | |
62,505 | |||
Consumer Finance - 5.1% | |||
Discover Financial Services | 307,700 | 20,853 | |
OneMain Holdings, Inc. (a) | 580,900 | 11,833 | |
Synchrony Financial | 1,065,213 | 36,814 | |
69,500 | |||
Insurance - 4.0% | |||
Brown & Brown, Inc. | 368,286 | 15,965 | |
Chubb Ltd. | 130,082 | 16,650 | |
FNF Group | 673,759 | 21,520 | |
54,135 | |||
TOTAL FINANCIALS | 249,275 | ||
HEALTH CARE - 7.7% | |||
Biotechnology - 1.9% | |||
Amgen, Inc. | 65,700 | 9,465 | |
United Therapeutics Corp. (a) | 135,400 | 17,008 | |
26,473 | |||
Health Care Providers & Services - 2.9% | |||
Cigna Corp. | 103,446 | 13,938 | |
Envision Healthcare Holdings, Inc. (a) | 617,818 | 14,037 | |
Laboratory Corp. of America Holdings (a) | 89,478 | 11,261 | |
39,236 | |||
Pharmaceuticals - 2.9% | |||
Jazz Pharmaceuticals PLC (a) | 205,700 | 21,317 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 363,700 | 13,711 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 309,000 | 4,879 | |
39,907 | |||
TOTAL HEALTH CARE | 105,616 | ||
INDUSTRIALS - 10.2% | |||
Aerospace & Defense - 2.1% | |||
General Dynamics Corp. | 98,654 | 17,299 | |
KLX, Inc. (a) | 272,410 | 10,621 | |
27,920 | |||
Airlines - 1.2% | |||
Delta Air Lines, Inc. | 347,100 | 16,723 | |
Construction & Engineering - 1.3% | |||
AECOM (a) | 477,500 | 17,357 | |
Machinery - 2.9% | |||
Allison Transmission Holdings, Inc. | 640,875 | 21,258 | |
Ingersoll-Rand PLC | 247,900 | 18,478 | |
39,736 | |||
Trading Companies & Distributors - 2.7% | |||
AerCap Holdings NV (a) | 536,937 | 23,008 | |
Univar, Inc. (a) | 577,224 | 14,373 | |
37,381 | |||
TOTAL INDUSTRIALS | 139,117 | ||
INFORMATION TECHNOLOGY - 11.8% | |||
Communications Equipment - 1.3% | |||
CommScope Holding Co., Inc. (a) | 491,668 | 17,690 | |
Electronic Equipment & Components - 2.2% | |||
Flextronics International Ltd. (a) | 960,578 | 13,679 | |
TE Connectivity Ltd. | 232,881 | 15,752 | |
29,431 | |||
IT Services - 4.0% | |||
Cognizant Technology Solutions Corp. Class A (a) | 177,300 | 9,766 | |
Computer Sciences Corp. | 360,400 | 21,851 | |
First Data Corp. Class A (a) | 1,126,240 | 16,409 | |
Total System Services, Inc. | 138,900 | 6,837 | |
54,863 | |||
Semiconductors & Semiconductor Equipment - 4.3% | |||
Cree, Inc. (a) | 455,155 | 11,525 | |
Marvell Technology Group Ltd. | 930,591 | 13,345 | |
Qorvo, Inc. (a) | 249,300 | 13,315 | |
Qualcomm, Inc. | 300,400 | 20,466 | |
58,651 | |||
TOTAL INFORMATION TECHNOLOGY | 160,635 | ||
MATERIALS - 9.2% | |||
Chemicals - 7.5% | |||
CF Industries Holdings, Inc. | 568,453 | 16,451 | |
E.I. du Pont de Nemours & Co. | 340,800 | 25,086 | |
Eastman Chemical Co. | 305,934 | 22,982 | |
LyondellBasell Industries NV Class A | 204,292 | 18,452 | |
Westlake Chemical Corp. | 331,303 | 19,603 | |
102,574 | |||
Containers & Packaging - 0.9% | |||
Ball Corp. | 169,233 | 12,703 | |
Metals & Mining - 0.8% | |||
Compass Minerals International, Inc. | 128,831 | 9,991 | |
TOTAL MATERIALS | 125,268 | ||
REAL ESTATE - 11.2% | |||
Equity Real Estate Investment Trusts (REITs) - 9.6% | |||
American Tower Corp. | 314,308 | 32,144 | |
Equity Lifestyle Properties, Inc. | 151,300 | 10,505 | |
Essex Property Trust, Inc. | 119,682 | 25,842 | |
Extra Space Storage, Inc. | 367,128 | 25,758 | |
Outfront Media, Inc. | 933,804 | 23,541 | |
WP Glimcher, Inc. | 1,241,156 | 12,436 | |
130,226 | |||
Real Estate Management & Development - 1.6% | |||
CBRE Group, Inc. (a) | 767,400 | 22,285 | |
TOTAL REAL ESTATE | 152,511 | ||
UTILITIES - 8.1% | |||
Electric Utilities - 5.1% | |||
American Electric Power Co., Inc. | 458,342 | 27,065 | |
Edison International | 618,871 | 42,563 | |
69,628 | |||
Multi-Utilities - 3.0% | |||
Sempra Energy | 407,288 | 40,647 | |
TOTAL UTILITIES | 110,275 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,266,674) | 1,349,232 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.7% | |||
ENERGY - 0.7% | |||
Oil, Gas & Consumable Fuels - 0.7% | |||
Cobalt International Energy, Inc. 2.625% 12/1/19 (Cost $10,618) | 21,550 | 9,231 | |
Shares | Value (000s) | ||
Money Market Funds - 0.7% | |||
Fidelity Cash Central Fund, 0.39% (c) | 4,235,754 | 4,237 | |
Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 5,884,783 | 5,886 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $10,122) | 10,123 | ||
TOTAL INVESTMENT PORTFOLIO - 100.4% | |||
(Cost $1,287,414) | 1,368,586 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (5,476) | ||
NET ASSETS - 100% | $1,363,110 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $271 |
Fidelity Securities Lending Cash Central Fund | 351 |
Total | $622 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $170,274 | $170,274 | $-- | $-- |
Consumer Staples | 38,816 | 38,816 | -- | -- |
Energy | 97,445 | 97,445 | -- | -- |
Financials | 249,275 | 249,275 | -- | -- |
Health Care | 105,616 | 105,616 | -- | -- |
Industrials | 139,117 | 139,117 | -- | -- |
Information Technology | 160,635 | 160,635 | -- | -- |
Materials | 125,268 | 125,268 | -- | -- |
Real Estate | 152,511 | 152,511 | -- | -- |
Utilities | 110,275 | 110,275 | -- | -- |
Corporate Bonds | 9,231 | -- | 9,231 | -- |
Money Market Funds | 10,123 | 10,123 | -- | -- |
Total Investments in Securities: | $1,368,586 | $1,359,355 | $9,231 | $-- |
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 | 83.7% |
Netherlands | 3.1% |
Ireland | 2.9% |
Switzerland | 2.4% |
Bermuda | 1.8% |
Marshall Islands | 1.5% |
Bailiwick of Jersey | 1.4% |
Canada | 1.2% |
Israel | 1.0% |
Singapore | 1.0% |
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) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $6,059) — See accompanying schedule: Unaffiliated issuers (cost $1,277,292) | $1,358,463 | |
Fidelity Central Funds (cost $10,122) | 10,123 | |
Total Investments (cost $1,287,414) | $1,368,586 | |
Receivable for fund shares sold | 461 | |
Dividends receivable | 2,017 | |
Interest receivable | 283 | |
Distributions receivable from Fidelity Central Funds | 5 | |
Prepaid expenses | 3 | |
Other receivables | 15 | |
Total assets | 1,371,370 | |
Liabilities | ||
Payable for fund shares redeemed | $1,521 | |
Accrued management fee | 368 | |
Distribution and service plan fees payable | 185 | |
Other affiliated payables | 236 | |
Other payables and accrued expenses | 65 | |
Collateral on securities loaned, at value | 5,885 | |
Total liabilities | 8,260 | |
Net Assets | $1,363,110 | |
Net Assets consist of: | ||
Paid in capital | $1,035,708 | |
Undistributed net investment income | 15,960 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 230,270 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 81,172 | |
Net Assets | $1,363,110 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($203,077 ÷ 5,045.72 shares) | $40.25 | |
Maximum offering price per share (100/94.25 of $40.25) | $42.71 | |
Class T: | ||
Net Asset Value and redemption price per share ($262,710 ÷ 6,297.62 shares) | $41.72 | |
Maximum offering price per share (100/96.50 of $41.72) | $43.23 | |
Class C: | ||
Net Asset Value and offering price per share ($44,155 ÷ 1,219.92 shares)(a) | $36.19 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($712,725 ÷ 15,779.43 shares) | $45.17 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($67,671 ÷ 1,497.80 shares) | $45.18 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($72,772 ÷ 1,689.55 shares) | $43.07 |
(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 | Year ended November 30, 2016 | |
Investment Income | ||
Dividends | $26,032 | |
Interest | 5,557 | |
Income from Fidelity Central Funds | 622 | |
Total income | 32,211 | |
Expenses | ||
Management fee | ||
Basic fee | $7,534 | |
Performance adjustment | (2,910) | |
Transfer agent fees | 2,463 | |
Distribution and service plan fees | 2,281 | |
Accounting and security lending fees | 442 | |
Custodian fees and expenses | 33 | |
Independent trustees' fees and expenses | 6 | |
Registration fees | 159 | |
Audit | 68 | |
Legal | 5 | |
Interest | 2 | |
Miscellaneous | 12 | |
Total expenses before reductions | 10,095 | |
Expense reductions | (70) | 10,025 |
Net investment income (loss) | 22,186 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 391,640 | |
Fidelity Central Funds | 26 | |
Foreign currency transactions | 10 | |
Futures contracts | 735 | |
Total net realized gain (loss) | 392,411 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (369,931) | |
Total change in net unrealized appreciation (depreciation) | (369,931) | |
Net gain (loss) | 22,480 | |
Net increase (decrease) in net assets resulting from operations | $44,666 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $22,186 | $14,207 |
Net realized gain (loss) | 392,411 | 117,291 |
Change in net unrealized appreciation (depreciation) | (369,931) | (113,531) |
Net increase (decrease) in net assets resulting from operations | 44,666 | 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) | (80,508) | (175,423) |
Total increase (decrease) in net assets | (51,526) | (170,475) |
Net Assets | ||
Beginning of period | 1,414,636 | 1,585,111 |
End of period | $1,363,110 | $1,414,636 |
Other Information | ||
Undistributed net investment income end of period | $15,960 | $12,741 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.01 | $38.91 | $36.02 | $27.62 | $22.71 |
Income from Investment Operations | |||||
Net investment income (loss)A | .56 | .35 | .25 | .23 | –B |
Net realized and unrealized gain (loss) | 1.09 | .06 | 2.87 | 8.25 | 5.03 |
Total from investment operations | 1.65 | .41 | 3.12 | 8.48 | 5.03 |
Distributions from net investment income | (.40) | (.28)C | (.23) | (.08) | (.12) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.41) | (.31) | (.23) | (.08) | (.12) |
Net asset value, end of period | $40.25 | $39.01 | $38.91 | $36.02 | $27.62 |
Total ReturnD,E | 4.33% | 1.07% | 8.74% | 30.77% | 22.29% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .86% | .93% | .96% | 1.04% | 1.21% |
Expenses net of fee waivers, if any | .86% | .93% | .96% | 1.04% | 1.21% |
Expenses net of all reductions | .86% | .93% | .96% | 1.03% | 1.21% |
Net investment income (loss) | 1.48% | .89% | .68% | .73% | - %B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $203 | $215 | $233 | $243 | $203 |
Portfolio turnover rateH | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $40.40 | $40.28 | $37.28 | $28.58 | $23.48 |
Income from Investment Operations | |||||
Net investment income (loss)A | .49 | .28 | .18 | .18 | (.05)B |
Net realized and unrealized gain (loss) | 1.14 | .06 | 2.98 | 8.54 | 5.22 |
Total from investment operations | 1.63 | .34 | 3.16 | 8.72 | 5.17 |
Distributions from net investment income | (.30) | (.19)C | (.16) | (.02) | (.07) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.31) | (.22) | (.16) | (.02) | (.07) |
Net asset value, end of period | $41.72 | $40.40 | $40.28 | $37.28 | $28.58 |
Total ReturnD,E | 4.11% | .86% | 8.51% | 30.52% | 22.08% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.08% | 1.15% | 1.17% | 1.23% | 1.38% |
Expenses net of fee waivers, if any | 1.08% | 1.14% | 1.17% | 1.23% | 1.38% |
Expenses net of all reductions | 1.07% | 1.14% | 1.17% | 1.22% | 1.38% |
Net investment income (loss) | 1.27% | .68% | .47% | .54% | (.17)%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $263 | $294 | $324 | $335 | $283 |
Portfolio turnover rateH | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $35.12 | $35.07 | $32.52 | $25.06 | $20.64 |
Income from Investment Operations | |||||
Net investment income (loss)A | .24 | .05 | (.03) | (.01) | (.17)B |
Net realized and unrealized gain (loss) | .97 | .07 | 2.60 | 7.47 | 4.59 |
Total from investment operations | 1.21 | .12 | 2.57 | 7.46 | 4.42 |
Distributions from net investment income | (.13) | (.04)C | (.02) | – | – |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.14) | (.07) | (.02) | – | – |
Net asset value, end of period | $36.19 | $35.12 | $35.07 | $32.52 | $25.06 |
Total ReturnD,E | 3.49% | .33% | 7.91% | 29.77% | 21.41% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.63% | 1.70% | 1.72% | 1.78% | 1.95% |
Expenses net of fee waivers, if any | 1.63% | 1.69% | 1.72% | 1.78% | 1.95% |
Expenses net of all reductions | 1.63% | 1.69% | 1.72% | 1.77% | 1.95% |
Net investment income (loss) | .72% | .13% | (.08)% | (.02)% | (.75)%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $44 | $49 | $53 | $54 | $43 |
Portfolio turnover rateH | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $43.72 | $43.56 | $40.28 | $30.89 | $25.37 |
Income from Investment Operations | |||||
Net investment income (loss)A | .76 | .51 | .40 | .37 | .09B |
Net realized and unrealized gain (loss) | 1.21 | .07 | 3.21 | 9.20 | 5.62 |
Total from investment operations | 1.97 | .58 | 3.61 | 9.57 | 5.71 |
Distributions from net investment income | (.51) | (.39)C | (.33) | (.18) | (.19) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.52) | (.42) | (.33) | (.18) | (.19) |
Net asset value, end of period | $45.17 | $43.72 | $43.56 | $40.28 | $30.89 |
Total ReturnD | 4.64% | 1.35% | 9.05% | 31.14% | 22.69% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .56% | .67% | .69% | .73% | .89% |
Expenses net of fee waivers, if any | .56% | .67% | .69% | .73% | .89% |
Expenses net of all reductions | .55% | .66% | .69% | .72% | .89% |
Net investment income (loss) | 1.79% | 1.16% | .95% | 1.03% | .31%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $713 | $716 | $786 | $681 | $396 |
Portfolio turnover rateG | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $43.74 | $43.57 | $40.28 | $30.89 | $25.38 |
Income from Investment Operations | |||||
Net investment income (loss)A | .80 | .58 | .47 | .43 | .14B |
Net realized and unrealized gain (loss) | 1.22 | .07 | 3.20 | 9.18 | 5.61 |
Total from investment operations | 2.02 | .65 | 3.67 | 9.61 | 5.75 |
Distributions from net investment income | (.57) | (.45)C | (.38) | (.22) | (.24) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.58) | (.48) | (.38) | (.22) | (.24) |
Net asset value, end of period | $45.18 | $43.74 | $43.57 | $40.28 | $30.89 |
Total ReturnD | 4.76% | 1.51% | 9.21% | 31.34% | 22.93% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .44% | .51% | .53% | .58% | .71% |
Expenses net of fee waivers, if any | .44% | .51% | .53% | .58% | .71% |
Expenses net of all reductions | .43% | .51% | .53% | .57% | .71% |
Net investment income (loss) | 1.91% | 1.31% | 1.11% | 1.18% | .50%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $68 | $72 | $97 | $119 | $70 |
Portfolio turnover rateG | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.71 | $41.57 | $38.46 | $29.51 | $24.26 |
Income from Investment Operations | |||||
Net investment income (loss)A | .70 | .48 | .37 | .34 | .08B |
Net realized and unrealized gain (loss) | 1.15 | .08 | 3.06 | 8.79 | 5.37 |
Total from investment operations | 1.85 | .56 | 3.43 | 9.13 | 5.45 |
Distributions from net investment income | (.48) | (.39)C | (.32) | (.18) | (.20) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.49) | (.42) | (.32) | (.18) | (.20) |
Net asset value, end of period | $43.07 | $41.71 | $41.57 | $38.46 | $29.51 |
Total ReturnD | 4.57% | 1.36% | 9.01% | 31.11% | 22.67% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .61% | .68% | .71% | .76% | .90% |
Expenses net of fee waivers, if any | .61% | .68% | .71% | .76% | .90% |
Expenses net of all reductions | .61% | .68% | .71% | .75% | .90% |
Net investment income (loss) | 1.74% | 1.14% | .93% | 1.00% | .31%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $73 | $65 | $86 | $74 | $66 |
Portfolio turnover rateG | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, futures contracts, passive foreign investment companies (PFIC), partnerships, market discount, 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 | $141,526 |
Gross unrealized depreciation | (59,492) |
Net unrealized appreciation (depreciation) on securities | $82,034 |
Tax Cost | $1,286,552 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $15,540 |
Undistributed long-term capital gain | $229,829 |
Net unrealized appreciation (depreciation) on securities and other investments | $82,034 |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $15,684 | $ 13,019 |
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 $735 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 $1,665,640 and $1,581,067, 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 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 annual management fee rate, including the performance adjustment, was .34% 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% | $500 | $– |
Class T | .25% | .25% | 1,325 | 6 |
Class B | .75% | .25% | 16 | 12 |
Class C | .75% | .25% | 440 | 20 |
$2,281 | $38 |
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 | $16 |
Class T | 7 |
Class B(a) | –(b) |
Class C(a) | 1 |
$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, 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 | |
Class A | $452 | .23 |
Class T | 497 | .19 |
Class B | 4 | .28 |
Class C | 107 | .24 |
Fidelity Value Strategies Fund | 1,229 | .17 |
Class K | 33 | .05 |
Class I | 141 | .22 |
$2,463 |
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 $96 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 | $4,699 | .59% | $1 |
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.
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 $4 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 $351. During the period, there were no securities loaned to FCM.
9. 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 $3,746. The weighted average interest rate was .91%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. 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 $60 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.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $2,186 | $1,691 |
Class T | 2,155 | 1,553 |
Class C | 187 | 56 |
Fidelity Value Strategies Fund | 9,139 | 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 |
12. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 471 | 391 | $17,474 | $15,470 |
Reinvestment of distributions | 58 | 46 | 2,110 | 1,760 |
Shares redeemed | (998) | (904) | (37,279) | (35,567) |
Net increase (decrease) | (469) | (467) | $(17,695) | $(18,337) |
Class T | ||||
Shares sold | 349 | 486 | $13,447 | $19,926 |
Reinvestment of distributions | 54 | 41 | 2,045 | 1,646 |
Shares redeemed | (1,385) | (1,296) | (53,890) | (52,610) |
Net increase (decrease) | (982) | (769) | $(38,398) | $(31,038) |
Class B | ||||
Shares sold | – | – | $9 | $12 |
Shares redeemed | (110) | (95) | (3,723) | (3,438) |
Net increase (decrease) | (110) | (95) | $(3,714) | $(3,426) |
Class C | ||||
Shares sold | 78 | 131 | $2,605 | $4,724 |
Reinvestment of distributions | 6 | 3 | 191 | 95 |
Shares redeemed | (263) | (237) | (8,759) | (8,407) |
Net increase (decrease) | (179) | (103) | $(5,963) | $(3,588) |
Fidelity Value Strategies Fund | ||||
Shares sold | 9,301 | 3,980 | $395,357 | $174,437 |
Reinvestment of distributions | 182 | 106 | 7,409 | 4,551 |
Shares redeemed | (10,077) | (5,750) | (417,147) | (250,149) |
Net increase (decrease) | (594) | (1,664) | $(14,381) | $(71,161) |
Class K | ||||
Shares sold | 480 | 390 | $20,396 | $17,106 |
Reinvestment of distributions | 24 | 22 | 970 | 954 |
Shares redeemed | (644) | (1,001) | (27,300) | (44,142) |
Net increase (decrease) | (140) | (589) | $(5,934) | $(26,082) |
Class I | ||||
Shares sold | 445 | 288 | $18,090 | $12,081 |
Reinvestment of distributions | 19 | 18 | 723 | 748 |
Shares redeemed | (330) | (809) | (13,236) | (34,620) |
Net increase (decrease) | 134 | (503) | $5,577 | $(21,791) |
13. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Value Strategies Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Value Strategies Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Value Strategies Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | .86% | |||
Actual | $1,000.00 | $1,041.10 | $4.39 | |
Hypothetical-C | $1,000.00 | $1,020.70 | $4.34 | |
Class T | 1.08% | |||
Actual | $1,000.00 | $1,039.90 | $5.51 | |
Hypothetical-C | $1,000.00 | $1,019.60 | $5.45 | |
Class C | 1.63% | |||
Actual | $1,000.00 | $1,037.00 | $8.30 | |
Hypothetical-C | $1,000.00 | $1,016.85 | $8.22 | |
Fidelity Value Strategies Fund | .55% | |||
Actual | $1,000.00 | $1,042.70 | $2.81 | |
Hypothetical-C | $1,000.00 | $1,022.25 | $2.78 | |
Class K | .44% | |||
Actual | $1,000.00 | $1,043.20 | $2.25 | |
Hypothetical-C | $1,000.00 | $1,022.80 | $2.23 | |
Class I | .61% | |||
Actual | $1,000.00 | $1,042.10 | $3.11 | |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Value Strategies Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Value Strategies Fund | ||||
Class A | 12/28/2016 | 12/27/2016 | $0.555 | $7.517 |
Class T | 12/28/2016 | 12/27/2016 | $0.456 | $7.517 |
Class C | 12/28/2016 | 12/27/2016 | $0.295 | $7.517 |
Fidelity Value Strategies Fund | 12/28/2016 | 12/27/2016 | $0.663 | $7.517 |
Class I | 12/28/2016 | 12/27/2016 | $0.662 | $7.517 |
Class K | 12/28/2016 | 12/27/2016 | $0.723 | $7.517 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2016, $257,335,586, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class T, Class C, Fidelity Value Strategies Fund, Class I, Class K and designates 100%, 100%, 100%, 89%, 95% and 80% of the dividends distributed in December 18th 2015, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class C, Fidelity Value Strategies Fund, Class I, Class K designates 100%, 100%, 100%, 86%, 91% and 77% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Value Strategies Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Value Strategies Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190643368.jpg)
Fidelity Advisor Value Strategies Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190644205.jpg)
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
SOI-ANN-0117
1.539183.119
Fidelity Advisor® Equity Value Fund Class A, Class T, Class C and Class I Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 1.55% | 12.71% | 4.82% |
Class T (incl. 3.50% sales charge) | 3.73% | 12.95% | 4.81% |
Class C (incl. contingent deferred sales charge) | 5.95% | 13.19% | 4.66% |
Class I | 8.02% | 14.38% | 5.75% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Equity Value Fund - Class A on November 30, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Value Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186130790_740.jpg)
Period Ending Values | ||
$16,018 | Fidelity Advisor® Equity Value Fund - Class A | |
$17,420 | Russell 3000® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.'s June 23 vote to exit the European Union – dubbed "Brexit" – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager Sean Gavin: For the year, the fund's share classes (excluding sales charges, if applicable) gained roughly 7% to 8%, trailing the 12.59% advance of the benchmark Russell 3000 Value Index. Broadly speaking, the high-quality, low-valuation stocks I favor were not in favor for most of the past 12 months. Weak security selection, especially in health care and materials, hampered results versus the benchmark. Within health care, a sizable non-benchmark stake in Teva Pharmaceutical Industries, an Israel-based drug manufacturer, hurt the fund quite a bit. Teva struggled this period, partly due to the market's concern about generic competition for the company's key multiple sclerosis drug. In industrials, the biggest individual detractor was fertilizer maker CF Industries Holdings, which underperformed due to a scuttled merger and lower profitability stemming from a drop in global nitrogen prices. Elsewhere, a position in media company Viacom weighed on results. On the positive side, my bottom-up investment approach left the fund well-positioned in various sectors, especially financials. Higher interest rates boosted the performance of fund holdings Regions Financial, a banking company and our top relative contributor, and Goldman Sachs, a diversified financial services company that also benefited from the potential for favorable tax and regulatory changes.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
JPMorgan Chase & Co. | 4.2 | 3.6 |
Berkshire Hathaway, Inc. Class B | 3.4 | 3.1 |
Johnson & Johnson | 3.1 | 3.8 |
Wells Fargo & Co. | 3.0 | 2.7 |
General Electric Co. | 2.8 | 3.0 |
Chevron Corp. | 2.4 | 2.1 |
Amgen, Inc. | 2.1 | 1.9 |
Alphabet, Inc. Class A | 2.0 | 1.7 |
U.S. Bancorp | 1.9 | 1.7 |
Apple, Inc. | 1.9 | 2.0 |
26.8 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 28.7 | 26.1 |
Information Technology | 14.4 | 14.9 |
Health Care | 13.5 | 16.3 |
Consumer Discretionary | 10.4 | 10.6 |
Energy | 9.7 | 9.1 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016 * | ||
Stocks | 94.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 6.0% |
* Foreign investments - 19.8%
As of May 31, 2016 * | ||
Stocks | 93.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 6.9% |
* Foreign investments - 18.3%
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 94.0% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 10.4% | |||
Auto Components - 0.5% | |||
Hyundai Mobis | 3,682 | $778,564 | |
Media - 8.1% | |||
CBS Corp. Class B | 35,000 | 2,125,200 | |
Charter Communications, Inc. Class A (a) | 1,611 | 443,524 | |
Corus Entertainment, Inc. Class B (non-vtg.) (b) | 65,800 | 594,664 | |
Discovery Communications, Inc. Class A (a) | 58,800 | 1,592,892 | |
John Wiley & Sons, Inc. Class A | 22,715 | 1,245,918 | |
Lions Gate Entertainment Corp. (b) | 40,500 | 947,700 | |
Starz Series A (a) | 62,400 | 2,112,864 | |
Time Warner, Inc. | 20,300 | 1,863,946 | |
Twenty-First Century Fox, Inc. Class A | 63,900 | 1,796,229 | |
Viacom, Inc. Class B (non-vtg.) | 36,400 | 1,364,272 | |
14,087,209 | |||
Specialty Retail - 0.2% | |||
GNC Holdings, Inc. | 27,600 | 398,820 | |
Textiles, Apparel & Luxury Goods - 1.6% | |||
Christian Dior SA | 5,600 | 1,089,102 | |
PVH Corp. | 16,300 | 1,726,822 | |
2,815,924 | |||
TOTAL CONSUMER DISCRETIONARY | 18,080,517 | ||
CONSUMER STAPLES - 3.9% | |||
Beverages - 0.6% | |||
C&C Group PLC | 301,377 | 1,111,243 | |
Food & Staples Retailing - 2.0% | |||
CVS Health Corp. | 27,300 | 2,099,097 | |
Rite Aid Corp. (a) | 61,300 | 487,948 | |
Wal-Mart Stores, Inc. | 12,500 | 880,375 | |
3,467,420 | |||
Food Products - 1.3% | |||
Seaboard Corp. (a) | 300 | 1,227,900 | |
The J.M. Smucker Co. | 7,479 | 941,980 | |
2,169,880 | |||
TOTAL CONSUMER STAPLES | 6,748,543 | ||
ENERGY - 9.7% | |||
Energy Equipment & Services - 0.6% | |||
BW Offshore Ltd. (a) | 24,151,242 | 1,106,333 | |
Oil, Gas & Consumable Fuels - 9.1% | |||
BW LPG Ltd. (b) | 80,080 | 256,784 | |
Chevron Corp. | 36,497 | 4,071,605 | |
GasLog Ltd. | 30,800 | 483,560 | |
GasLog Partners LP | 68,900 | 1,402,115 | |
Golar LNG Partners LP | 65,700 | 1,463,796 | |
Hoegh LNG Partners LP | 22,900 | 432,810 | |
Phillips 66 Co. | 22,500 | 1,869,300 | |
Suncor Energy, Inc. | 49,100 | 1,563,685 | |
Teekay Corp. | 135,500 | 1,069,095 | |
Teekay LNG Partners LP | 92,500 | 1,419,875 | |
Teekay Offshore Partners LP | 307,500 | 1,682,025 | |
15,714,650 | |||
TOTAL ENERGY | 16,820,983 | ||
FINANCIALS - 28.7% | |||
Banks - 12.4% | |||
JPMorgan Chase & Co. | 90,852 | 7,283,603 | |
Regions Financial Corp. | 217,900 | 2,950,366 | |
SunTrust Banks, Inc. | 53,100 | 2,758,545 | |
U.S. Bancorp | 67,566 | 3,352,625 | |
Wells Fargo & Co. | 98,532 | 5,214,313 | |
21,559,452 | |||
Capital Markets - 2.0% | |||
Goldman Sachs Group, Inc. | 14,500 | 3,179,705 | |
GP Investments Ltd. Class A (depositary receipt) (a) | 167,900 | 326,164 | |
3,505,869 | |||
Consumer Finance - 3.9% | |||
American Express Co. | 15,200 | 1,095,008 | |
Capital One Financial Corp. | 19,118 | 1,606,677 | |
Discover Financial Services | 32,400 | 2,195,748 | |
Synchrony Financial | 51,300 | 1,772,928 | |
6,670,361 | |||
Diversified Financial Services - 3.4% | |||
Berkshire Hathaway, Inc. Class B (a) | 37,369 | 5,883,375 | |
Insurance - 5.4% | |||
Allied World Assurance Co. Holdings AG | 33,800 | 1,582,178 | |
Allstate Corp. | 22,700 | 1,587,184 | |
Chubb Ltd. | 14,300 | 1,830,400 | |
FNF Group | 27,080 | 864,935 | |
FNFV Group (a) | 33,892 | 433,818 | |
Prudential PLC | 51,514 | 994,594 | |
The Travelers Companies, Inc. | 18,687 | 2,118,171 | |
9,411,280 | |||
Mortgage Real Estate Investment Trusts - 1.6% | |||
Agnc Investment Corp. | 34,801 | 649,387 | |
Annaly Capital Management, Inc. | 106,405 | 1,087,459 | |
MFA Financial, Inc. | 131,636 | 1,029,394 | |
2,766,240 | |||
TOTAL FINANCIALS | 49,796,577 | ||
HEALTH CARE - 13.5% | |||
Biotechnology - 3.0% | |||
Amgen, Inc. | 25,600 | 3,688,192 | |
Dyax Corp. rights 12/31/19 (a) | 58,900 | 145,483 | |
Shire PLC sponsored ADR | 7,443 | 1,299,548 | |
5,133,223 | |||
Health Care Providers & Services - 3.7% | |||
Aetna, Inc. | 7,200 | 942,048 | |
Anthem, Inc. | 2,600 | 370,578 | |
Cigna Corp. | 18,500 | 2,492,690 | |
McKesson Corp. | 17,500 | 2,516,675 | |
6,321,991 | |||
Pharmaceuticals - 6.8% | |||
Allergan PLC | 7,700 | 1,496,110 | |
Bayer AG | 2,800 | 263,686 | |
Johnson & Johnson | 47,992 | 5,341,510 | |
Sanofi SA sponsored ADR | 49,900 | 2,005,980 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 73,032 | 2,753,306 | |
11,860,592 | |||
TOTAL HEALTH CARE | 23,315,806 | ||
INDUSTRIALS - 7.8% | |||
Aerospace & Defense - 1.4% | |||
United Technologies Corp. | 22,800 | 2,456,016 | |
Industrial Conglomerates - 2.8% | |||
General Electric Co. | 156,500 | 4,813,940 | |
Machinery - 1.8% | |||
Deere & Co. | 32,110 | 3,217,422 | |
Professional Services - 1.2% | |||
Dun & Bradstreet Corp. | 16,700 | 2,032,724 | |
Trading Companies & Distributors - 0.6% | |||
AerCap Holdings NV (a) | 25,000 | 1,071,250 | |
TOTAL INDUSTRIALS | 13,591,352 | ||
INFORMATION TECHNOLOGY - 14.4% | |||
Communications Equipment - 3.8% | |||
Cisco Systems, Inc. | 99,182 | 2,957,607 | |
Harris Corp. | 24,000 | 2,485,440 | |
Juniper Networks, Inc. | 38,900 | 1,071,306 | |
6,514,353 | |||
Electronic Equipment & Components - 1.3% | |||
Dell Technologies, Inc. (a) | 26,267 | 1,406,861 | |
TE Connectivity Ltd. | 13,198 | 892,713 | |
2,299,574 | |||
Internet Software & Services - 4.0% | |||
Alphabet, Inc. Class A (a) | 4,400 | 3,413,872 | |
eBay, Inc. (a) | 79,700 | 2,216,457 | |
VeriSign, Inc. (a)(b) | 15,600 | 1,230,060 | |
6,860,389 | |||
IT Services - 1.7% | |||
Cognizant Technology Solutions Corp. Class A (a) | 21,000 | 1,156,680 | |
The Western Union Co. | 83,400 | 1,753,902 | |
2,910,582 | |||
Semiconductors & Semiconductor Equipment - 0.2% | |||
NXP Semiconductors NV (a) | 4,100 | 406,515 | |
Software - 0.7% | |||
Oracle Corp. | 30,087 | 1,209,197 | |
Technology Hardware, Storage & Peripherals - 2.7% | |||
Apple, Inc. | 29,800 | 3,293,496 | |
Samsung Electronics Co. Ltd. | 929 | 1,377,436 | |
4,670,932 | |||
TOTAL INFORMATION TECHNOLOGY | 24,871,542 | ||
MATERIALS - 3.1% | |||
Chemicals - 2.5% | |||
CF Industries Holdings, Inc. | 34,075 | 986,131 | |
LyondellBasell Industries NV Class A | 21,800 | 1,968,976 | |
Monsanto Co. | 2,500 | 256,775 | |
Syngenta AG sponsored ADR | 5,500 | 420,310 | |
Valspar Corp. | 6,300 | 643,167 | |
4,275,359 | |||
Containers & Packaging - 0.6% | |||
Graphic Packaging Holding Co. | 85,800 | 1,078,506 | |
TOTAL MATERIALS | 5,353,865 | ||
REAL ESTATE - 0.9% | |||
Real Estate Management & Development - 0.9% | |||
CBRE Group, Inc. (a) | 51,400 | 1,492,656 | |
UTILITIES - 1.6% | |||
Electric Utilities - 1.6% | |||
DONG Energy A/S | 14,800 | 504,904 | |
Exelon Corp. | 72,200 | 2,347,222 | |
2,852,126 | |||
TOTAL COMMON STOCKS | |||
(Cost $143,968,147) | 162,923,967 | ||
Money Market Funds - 8.6% | |||
Fidelity Cash Central Fund, 0.39% (c) | 11,934,626 | 11,937,013 | |
Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 2,935,162 | 2,935,749 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $14,871,709) | 14,872,762 | ||
TOTAL INVESTMENT PORTFOLIO - 102.6% | |||
(Cost $158,839,856) | 177,796,729 | ||
NET OTHER ASSETS (LIABILITIES) - (2.6)% | (4,466,723) | ||
NET ASSETS - 100% | $173,330,006 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $28,727 |
Fidelity Securities Lending Cash Central Fund | 31,848 |
Total | $60,575 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $18,080,517 | $18,080,517 | $-- | $-- |
Consumer Staples | 6,748,543 | 6,748,543 | -- | -- |
Energy | 16,820,983 | 16,820,983 | -- | -- |
Financials | 49,796,577 | 48,801,983 | 994,594 | -- |
Health Care | 23,315,806 | 22,906,637 | 263,686 | 145,483 |
Industrials | 13,591,352 | 13,591,352 | -- | -- |
Information Technology | 24,871,542 | 24,871,542 | -- | -- |
Materials | 5,353,865 | 5,353,865 | -- | -- |
Real Estate | 1,492,656 | 1,492,656 | -- | -- |
Utilities | 2,852,126 | 2,852,126 | -- | -- |
Money Market Funds | 14,872,762 | 14,872,762 | -- | -- |
Total Investments in Securities: | $177,796,729 | $176,392,966 | $1,258,280 | $145,483 |
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 | 80.2% |
Marshall Islands | 3.5% |
Switzerland | 2.7% |
Netherlands | 1.9% |
Canada | 1.8% |
France | 1.7% |
Israel | 1.6% |
Ireland | 1.5% |
Korea (South) | 1.3% |
Bermuda | 1.2% |
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
November 30, 2016 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $2,849,654) — See accompanying schedule: Unaffiliated issuers (cost $143,968,147) | $162,923,967 | |
Fidelity Central Funds (cost $14,871,709) | 14,872,762 | |
Total Investments (cost $158,839,856) | $177,796,729 | |
Receivable for fund shares sold | 191,747 | |
Dividends receivable | 337,584 | |
Distributions receivable from Fidelity Central Funds | 3,315 | |
Prepaid expenses | 394 | |
Other receivables | 233 | |
Total assets | 178,330,002 | |
Liabilities | ||
Payable for investments purchased | $786,193 | |
Payable for fund shares redeemed | 1,062,151 | |
Accrued management fee | 69,871 | |
Distribution and service plan fees payable | 58,755 | |
Other affiliated payables | 35,572 | |
Other payables and accrued expenses | 52,616 | |
Collateral on securities loaned, at value | 2,934,838 | |
Total liabilities | 4,999,996 | |
Net Assets | $173,330,006 | |
Net Assets consist of: | ||
Paid in capital | $156,741,119 | |
Undistributed net investment income | 985,499 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (3,352,548) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 18,955,936 | |
Net Assets | $173,330,006 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($77,786,953 ÷ 4,725,404 shares) | $16.46 | |
Maximum offering price per share (100/94.25 of $16.46) | $17.46 | |
Class T: | ||
Net Asset Value and redemption price per share ($38,564,979 ÷ 2,347,498 shares) | $16.43 | |
Maximum offering price per share (100/96.50 of $16.43) | $17.03 | |
Class C: | ||
Net Asset Value and offering price per share ($34,006,050 ÷ 2,120,692 shares)(a) | $16.04 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($22,972,024 ÷ 1,371,935 shares) | $16.74 |
(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
Year ended November 30, 2016 | ||
Investment Income | ||
Dividends | $3,664,581 | |
Interest | 283 | |
Income from Fidelity Central Funds | 60,575 | |
Total income | 3,725,439 | |
Expenses | ||
Management fee | ||
Basic fee | $899,462 | |
Performance adjustment | 59,306 | |
Transfer agent fees | 369,585 | |
Distribution and service plan fees | 678,194 | |
Accounting and security lending fees | 64,380 | |
Custodian fees and expenses | 19,078 | |
Independent trustees' fees and expenses | 707 | |
Registration fees | 68,926 | |
Audit | 66,246 | |
Legal | 4,350 | |
Miscellaneous | 1,265 | |
Total expenses before reductions | 2,231,499 | |
Expense reductions | (8,863) | 2,222,636 |
Net investment income (loss) | 1,502,803 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (1,735,281) | |
Fidelity Central Funds | 1,902 | |
Foreign currency transactions | (4,473) | |
Futures contracts | 58,155 | |
Total net realized gain (loss) | (1,679,697) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 13,412,416 | |
Assets and liabilities in foreign currencies | (601) | |
Total change in net unrealized appreciation (depreciation) | 13,411,815 | |
Net gain (loss) | 11,732,118 | |
Net increase (decrease) in net assets resulting from operations | $13,234,921 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2016 | Year ended November 30, 2015 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,502,803 | $2,901,174 |
Net realized gain (loss) | (1,679,697) | 3,727,271 |
Change in net unrealized appreciation (depreciation) | 13,411,815 | (9,228,700) |
Net increase (decrease) in net assets resulting from operations | 13,234,921 | (2,600,255) |
Distributions to shareholders from net investment income | (2,149,087) | (1,112,123) |
Distributions to shareholders from net realized gain | (1,357,985) | – |
Total distributions | (3,507,072) | (1,112,123) |
Share transactions - net increase (decrease) | 5,898,818 | 52,856,883 |
Total increase (decrease) in net assets | 15,626,667 | 49,144,505 |
Net Assets | ||
Beginning of period | 157,703,339 | 108,558,834 |
End of period | $173,330,006 | $157,703,339 |
Other Information | ||
Undistributed net investment income end of period | $985,499 | $1,900,740 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Value Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.66 | $16.00 | $13.93 | $10.60 | $9.09 |
Income from Investment Operations | |||||
Net investment income (loss)A | .17 | .35B | .17 | .13 | .12 |
Net realized and unrealized gain (loss) | 1.00 | (.50)C | 2.01 | 3.33 | 1.44 |
Total from investment operations | 1.17 | (.15) | 2.18 | 3.46 | 1.56 |
Distributions from net investment income | (.24)D | (.19) | (.11) | (.13) | (.05) |
Distributions from net realized gain | (.13)D | – | – | – | – |
Total distributions | (.37) | (.19) | (.11) | (.13) | (.05) |
Net asset value, end of period | $16.46 | $15.66 | $16.00 | $13.93 | $10.60 |
Total ReturnE,F | 7.75% | (.91)%C | 15.79% | 33.09% | 17.27% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.19% | 1.24% | 1.23% | 1.22% | 1.30% |
Expenses net of fee waivers, if any | 1.19% | 1.23% | 1.23% | 1.22% | 1.25% |
Expenses net of all reductions | 1.19% | 1.23% | 1.23% | 1.20% | 1.25% |
Net investment income (loss) | 1.08% | 2.23%B | 1.15% | 1.07% | 1.20% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $77,787 | $67,005 | $50,957 | $39,538 | $29,282 |
Portfolio turnover rateI | 46% | 49% | 68% | 68% | 77% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.62 | $15.96 | $13.90 | $10.57 | $9.06 |
Income from Investment Operations | |||||
Net investment income (loss)A | .12 | .31B | .13 | .10 | .09 |
Net realized and unrealized gain (loss) | 1.01 | (.50)C | 2.01 | 3.34 | 1.44 |
Total from investment operations | 1.13 | (.19) | 2.14 | 3.44 | 1.53 |
Distributions from net investment income | (.19)D | (.15) | (.08) | (.11) | (.02) |
Distributions from net realized gain | (.13)D | – | – | – | – |
Total distributions | (.32) | (.15) | (.08) | (.11) | (.02) |
Net asset value, end of period | $16.43 | $15.62 | $15.96 | $13.90 | $10.57 |
Total ReturnE,F | 7.49% | (1.19)%C | 15.46% | 32.82% | 16.94% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.46% | 1.50% | 1.49% | 1.48% | 1.55% |
Expenses net of fee waivers, if any | 1.46% | 1.50% | 1.49% | 1.48% | 1.50% |
Expenses net of all reductions | 1.45% | 1.50% | 1.49% | 1.46% | 1.50% |
Net investment income (loss) | .81% | 1.96%B | .88% | .81% | .95% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $38,565 | $34,643 | $31,087 | $27,241 | $21,212 |
Portfolio turnover rateI | 46% | 49% | 68% | 68% | 77% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.27 | $15.63 | $13.63 | $10.37 | $8.91 |
Income from Investment Operations | |||||
Net investment income (loss)A | .05 | .23B | .06 | .04 | .04 |
Net realized and unrealized gain (loss) | .98 | (.49)C | 1.97 | 3.28 | 1.42 |
Total from investment operations | 1.03 | (.26) | 2.03 | 3.32 | 1.46 |
Distributions from net investment income | (.13)D | (.10) | (.03) | (.06) | – |
Distributions from net realized gain | (.13)D | – | – | – | – |
Total distributions | (.26) | (.10) | (.03) | (.06) | – |
Net asset value, end of period | $16.04 | $15.27 | $15.63 | $13.63 | $10.37 |
Total ReturnE,F | 6.95% | (1.68)%C | 14.90% | 32.16% | 16.39% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.96% | 2.00% | 2.00% | 1.97% | 2.05% |
Expenses net of fee waivers, if any | 1.96% | 2.00% | 2.00% | 1.97% | 2.00% |
Expenses net of all reductions | 1.95% | 2.00% | 1.99% | 1.96% | 2.00% |
Net investment income (loss) | .31% | 1.46%B | .38% | .32% | .45% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $34,006 | $28,295 | $18,614 | $12,329 | $8,785 |
Portfolio turnover rateI | 46% | 49% | 68% | 68% | 77% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.93 | $16.27 | $14.16 | $10.75 | $9.22 |
Income from Investment Operations | |||||
Net investment income (loss)A | .21 | .40B | .22 | .17 | .15 |
Net realized and unrealized gain (loss) | 1.02 | (.50)C | 2.04 | 3.39 | 1.45 |
Total from investment operations | 1.23 | (.10) | 2.26 | 3.56 | 1.60 |
Distributions from net investment income | (.29)D | (.24) | (.15) | (.15) | (.07) |
Distributions from net realized gain | (.13)D | – | – | – | – |
Total distributions | (.42) | (.24) | (.15) | (.15) | (.07) |
Net asset value, end of period | $16.74 | $15.93 | $16.27 | $14.16 | $10.75 |
Total ReturnE | 8.02% | (.60)%C | 16.16% | 33.61% | 17.49% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .91% | .93% | .91% | .89% | .96% |
Expenses net of fee waivers, if any | .91% | .93% | .91% | .89% | .96% |
Expenses net of all reductions | .91% | .93% | .91% | .87% | .96% |
Net investment income (loss) | 1.36% | 2.53%B | 1.46% | 1.40% | 1.49% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $22,972 | $25,984 | $5,162 | $3,126 | $2,123 |
Portfolio turnover rateH | 46% | 49% | 68% | 68% | 77% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences resulted in distribution reclassifications. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), 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 | $25,167,326 |
Gross unrealized depreciation | (6,567,109) |
Net unrealized appreciation (depreciation) on securities | $18,600,217 |
Tax Cost | $159,196,512 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $985,499 |
Capital loss carryforward | $(2,995,892) |
Net unrealized appreciation (depreciation) on securities and other investments | $18,599,280 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(923,409) |
Long-term | (2,072,483) |
Total capital loss carryforward | $(2,995,892) |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $2,149,087 | $ 1,112,123 |
Long-term Capital Gains | 1,357,985 | – |
Total | $3,507,072 | $ 1,112,123 |
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 $76,826,759 and $72,643,899, 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 annual management fee rate, including the performance adjustment, was .58% 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% | $179,163 | $2,514 |
Class T | .25% | .25% | 184,718 | – |
Class B | .75% | .25% | 8,129 | 6,097 |
Class C | .75% | .25% | 306,184 | 47,760 |
$678,194 | $56,371 |
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 | $38,137 |
Class T | 12,282 |
Class B(a) | 148 |
Class C(a) | 3,501 |
$54,068 |
(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 | |
Class A | $159,118 | .22 |
Class T | 88,585 | .24 |
Class B | 2,306 | .29 |
Class C | 73,807 | .24 |
Class I | 45,769 | .19 |
$ 369,585 |
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 $2,256 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 $417 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 $31,848. 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 B | 2.00% | $688 |
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 $7,061 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 $1,114.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $1,016,439 | $615,978 |
Class T | 418,210 | 290,749 |
Class B | 6,399 | 10,041 |
Class C | 238,977 | 117,971 |
Class I | 469,062 | 77,384 |
Total | $2,149,087 | $1,112,123 |
From net realized gain | ||
Class A | $575,983 | $– |
Class T | 299,128 | – |
Class B | 15,117 | – |
Class C | 251,699 | – |
Class I | 216,058 | – |
Total | $1,357,985 | $– |
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 | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 1,835,762 | 2,015,005 | $27,477,630 | $32,448,584 |
Reinvestment of distributions | 104,688 | 38,605 | 1,546,248 | 595,591 |
Shares redeemed | (1,492,894) | (960,120) | (22,929,181) | (15,261,622) |
Net increase (decrease) | 447,556 | 1,093,490 | $6,094,697 | $17,782,553 |
Class T | ||||
Shares sold | 779,181 | 826,030 | $11,489,838 | $13,376,322 |
Reinvestment of distributions | 47,581 | 18,532 | 703,253 | 286,169 |
Shares redeemed | (696,531) | (575,170) | (10,727,723) | (9,138,418) |
Net increase (decrease) | 130,231 | 269,392 | $1,465,368 | $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 | (126,900) | (94,699) | (1,883,482) | (1,497,315) |
Net increase (decrease) | (114,688) | (58,513) | $(1,709,298) | $(910,223) |
Class C | ||||
Shares sold | 699,956 | 1,023,935 | $10,471,711 | $15,818,813 |
Reinvestment of distributions | 31,568 | 7,049 | 457,733 | 107,103 |
Shares redeemed | (463,673) | (369,314) | (6,944,408) | (5,731,970) |
Net increase (decrease) | 267,851 | 661,670 | $3,985,036 | $10,193,946 |
Class I | ||||
Shares sold | 849,680 | 1,650,138 | $13,106,075 | $26,551,745 |
Reinvestment of distributions | 30,682 | 4,819 | 459,926 | 75,344 |
Shares redeemed | (1,139,412) | (341,188) | (17,502,986) | (5,360,555) |
Net increase (decrease) | (259,050) | 1,313,769 | $(3,936,985) | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Equity Value Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Equity Value Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Equity Value Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | 1.14% | |||
Actual | $1,000.00 | $1,064.00 | $5.88 | |
Hypothetical-C | $1,000.00 | $1,019.30 | $5.76 | |
Class T | 1.42% | |||
Actual | $1,000.00 | $1,062.70 | $7.32 | |
Hypothetical-C | $1,000.00 | $1,017.90 | $7.16 | |
Class C | 1.93% | |||
Actual | $1,000.00 | $1,060.80 | $9.94 | |
Hypothetical-C | $1,000.00 | $1,015.35 | $9.72 | |
Class I | .83% | |||
Actual | $1,000.00 | $1,065.60 | $4.29 | |
Hypothetical-C | $1,000.00 | $1,020.85 | $4.19 |
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
Distributions (Unaudited)
Class A, Class T, Class B, Class C, and Class I designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class B, Class C, and Class I designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Equity Value Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Equity Value Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190625973.jpg)
Fidelity Advisor Equity Value Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190626168.jpg)
AEV-ANN-0117
1.767075.115
Fidelity Advisor® Equity Income Fund Class A, Class T, Class C, Class I and Class Z Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 7.00% | 11.33% | 4.01% |
Class T (incl. 3.50% sales charge) | 9.27% | 11.62% | 4.03% |
Class C (incl. contingent deferred sales charge) | 11.63% | 11.81% | 3.83% |
Class I | 13.82% | 12.96% | 4.91% |
Class Z | 13.96% | 13.08% | 4.97% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on August 13, 2013. Returns prior to August 13, 2013, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Equity Income Fund - Class A on November 30, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Value Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186133765_740.jpg)
Period Ending Values | ||
$14,814 | Fidelity Advisor® Equity Income Fund - Class A | |
$17,420 | Russell 3000® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.'s June 23 vote to exit the European Union – dubbed "Brexit" – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager James Morrow: For the year, the fund's share classes (excluding sales charges, if applicable) posted gains in roughly the 13% to 14% range for the fiscal year, outpacing the 12.59% advance of the benchmark Russell 3000 Value Index. The fund's relative outperformance largely was due to stock picking in the energy sector, especially a trio of interrelated energy transportation companies – Williams Partners (WP); Energy Transfer Equity; and Williams Companies, parent of WP and the only one of the three in the benchmark. An overweighting in the strong telecommunication services sector also helped. Qualcomm, a maker of communications equipment found in mobile phones, performed well for the fund. So did drug maker and health care products company Johnson & Johnson, as well as a covered call that we wrote on this stock. In contrast, security selection in industrials detracted, as did the fund's cash stake. On an individual basis, the fund's results were hampered by non-benchmark stakes in alternative asset managers Blackstone Group and KKR. Other detractors were CVS Health, which runs the CVS chain of drug stores and also operates a pharmacy benefits management (PBM) division, and Teva Pharmaceutical Industries, an out-of-benchmark drug manufacturer based in Israel. The health care industry struggled amid concerns about drug pricing that weighed down both names.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
JPMorgan Chase & Co.(a) | 4.4 | 3.4 |
Cisco Systems, Inc. | 3.2 | 2.5 |
Chevron Corp.(a) | 3.1 | 4.1 |
Johnson & Johnson | 2.7 | 3.6 |
Procter & Gamble Co. | 2.7 | 3.5 |
General Electric Co.(a) | 2.6 | 2.7 |
Verizon Communications, Inc. | 2.1 | 2.0 |
Bank of America Corp.(a) | 2.1 | 1.5 |
The Williams Companies, Inc. | 2.0 | 1.2 |
Comcast Corp. Class A | 2.0 | 0.9 |
26.9 |
(a) Security or a portion of the security is pledged as collateral for call options written.
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 24.6 | 23.9 |
Energy | 13.0 | 11.9 |
Industrials | 10.3 | 11.4 |
Consumer Discretionary | 9.3 | 7.5 |
Information Technology | 9.1 | 11.1 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016 *,** | ||
Stocks | 95.0% | |
Bonds | 0.1% | |
Convertible Securities | 0.5% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.2% |
* Foreign investments - 10.5%
** Written options - (0.2)%
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)%
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 95.0% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 9.3% | |||
Auto Components - 0.1% | |||
Delphi Automotive PLC | 15,800 | $1,011 | |
Automobiles - 1.6% | |||
Fiat Chrysler Automobiles NV | 434,700 | 3,359 | |
Ford Motor Co. | 301,800 | 3,610 | |
General Motors Co. | 806,400 | 27,845 | |
34,814 | |||
Hotels, Restaurants & Leisure - 1.0% | |||
Dunkin' Brands Group, Inc. | 329,000 | 17,861 | |
Whitbread PLC | 101,916 | 4,417 | |
22,278 | |||
Household Durables - 0.6% | |||
M.D.C. Holdings, Inc. | 273,600 | 7,354 | |
Tupperware Brands Corp. | 104,500 | 5,793 | |
13,147 | |||
Leisure Products - 1.1% | |||
Mattel, Inc. | 375,700 | 11,861 | |
New Academy Holding Co. LLC unit (a)(b)(c) | 52,800 | 6,392 | |
Polaris Industries, Inc. (d) | 65,700 | 5,707 | |
23,960 | |||
Media - 2.5% | |||
Comcast Corp. Class A | 605,674 | 42,100 | |
Time Warner, Inc. | 117,600 | 10,798 | |
52,898 | |||
Multiline Retail - 1.7% | |||
Kohl's Corp. (d) | 168,948 | 9,094 | |
Macy's, Inc. | 247,200 | 10,432 | |
Target Corp. | 213,355 | 16,480 | |
36,006 | |||
Specialty Retail - 0.7% | |||
Foot Locker, Inc. | 93,100 | 6,672 | |
GNC Holdings, Inc. | 151,116 | 2,184 | |
L Brands, Inc. | 40,400 | 2,837 | |
Stage Stores, Inc. (d) | 247,000 | 1,074 | |
Williams-Sonoma, Inc. | 42,100 | 2,306 | |
15,073 | |||
TOTAL CONSUMER DISCRETIONARY | 199,187 | ||
CONSUMER STAPLES - 8.4% | |||
Beverages - 0.6% | |||
Molson Coors Brewing Co. Class B | 14,905 | 1,461 | |
The Coca-Cola Co. | 279,500 | 11,278 | |
12,739 | |||
Food & Staples Retailing - 3.9% | |||
CVS Health Corp. | 372,600 | 28,649 | |
Kroger Co. | 97,400 | 3,146 | |
Wal-Mart Stores, Inc. | 320,850 | 22,597 | |
Walgreens Boots Alliance, Inc. | 279,244 | 23,660 | |
Whole Foods Market, Inc. | 176,800 | 5,373 | |
83,425 | |||
Food Products - 0.8% | |||
B&G Foods, Inc. Class A | 192,754 | 8,250 | |
The Hain Celestial Group, Inc. (a) | 43,900 | 1,720 | |
The Hershey Co. (e) | 74,900 | 7,238 | |
17,208 | |||
Household Products - 2.8% | |||
Kimberly-Clark Corp. | 21,900 | 2,532 | |
Procter & Gamble Co. | 695,317 | 57,336 | |
59,868 | |||
Personal Products - 0.1% | |||
Unilever NV (NY Reg.) | 56,500 | 2,250 | |
Tobacco - 0.2% | |||
Reynolds American, Inc. | 78,300 | 4,236 | |
TOTAL CONSUMER STAPLES | 179,726 | ||
ENERGY - 12.6% | |||
Energy Equipment & Services - 1.0% | |||
Baker Hughes, Inc. | 102,200 | 6,575 | |
Halliburton Co. | 118,700 | 6,302 | |
Oceaneering International, Inc. | 66,800 | 1,780 | |
Schlumberger Ltd. | 92,000 | 7,733 | |
22,390 | |||
Oil, Gas & Consumable Fuels - 11.6% | |||
Anadarko Petroleum Corp. | 155,945 | 10,784 | |
Apache Corp. | 188,327 | 12,420 | |
Chevron Corp. (e) | 595,469 | 66,431 | |
ConocoPhillips Co. | 617,000 | 29,937 | |
CONSOL Energy, Inc. | 227,175 | 4,675 | |
Energy Transfer Equity LP | 40,800 | 695 | |
EQT Midstream Partners LP | 5,400 | 395 | |
Golar LNG Ltd. | 72,443 | 1,768 | |
Imperial Oil Ltd. | 103,300 | 3,537 | |
Kinder Morgan, Inc. | 633,300 | 14,059 | |
Legacy Reserves LP | 505,299 | 973 | |
MPLX LP | 218,830 | 7,189 | |
Suncor Energy, Inc. | 850,200 | 27,076 | |
The Williams Companies, Inc. | 1,419,350 | 43,574 | |
Williams Partners LP | 681,715 | 24,883 | |
248,396 | |||
TOTAL ENERGY | 270,786 | ||
FINANCIALS - 24.5% | |||
Banks - 13.9% | |||
Bank of America Corp. (e) | 2,122,700 | 44,831 | |
Comerica, Inc. | 203,780 | 12,991 | |
Huntington Bancshares, Inc. | 200,000 | 2,492 | |
JPMorgan Chase & Co. (e) | 1,170,957 | 93,877 | |
KeyCorp | 821,320 | 14,217 | |
Lloyds Banking Group PLC | 3,444,300 | 2,488 | |
M&T Bank Corp. | 218,017 | 31,381 | |
Prosperity Bancshares, Inc. | 17,500 | 1,157 | |
Regions Financial Corp. (e) | 979,300 | 13,260 | |
Standard Chartered PLC (United Kingdom) (a) | 381,284 | 3,058 | |
SunTrust Banks, Inc. | 343,500 | 17,845 | |
U.S. Bancorp (e) | 581,500 | 28,854 | |
Wells Fargo & Co. | 591,550 | 31,305 | |
297,756 | |||
Capital Markets - 5.7% | |||
Apollo Global Management LLC Class A | 77,300 | 1,489 | |
Apollo Investment Corp. | 245,682 | 1,513 | |
Ares Capital Corp. (d) | 313,142 | 5,023 | |
Ares Management LP | 80,234 | 1,372 | |
KKR & Co. LP | 1,818,896 | 27,829 | |
Morgan Stanley | 463,442 | 19,168 | |
State Street Corp. | 382,799 | 30,165 | |
The Blackstone Group LP | 1,330,703 | 34,252 | |
TPG Specialty Lending, Inc. | 97,270 | 1,783 | |
122,594 | |||
Insurance - 4.5% | |||
Chubb Ltd. | 314,184 | 40,216 | |
Marsh & McLennan Companies, Inc. | 88,200 | 6,113 | |
MetLife, Inc. | 647,657 | 35,628 | |
Prudential Financial, Inc. | 135,798 | 13,661 | |
95,618 | |||
Mortgage Real Estate Investment Trusts - 0.2% | |||
Agnc Investment Corp. | 68,580 | 1,280 | |
Annaly Capital Management, Inc. | 155,394 | 1,588 | |
Two Harbors Investment Corp. | 275,941 | 2,392 | |
5,260 | |||
Thrifts & Mortgage Finance - 0.2% | |||
Radian Group, Inc. | 226,490 | 3,298 | |
TOTAL FINANCIALS | 524,526 | ||
HEALTH CARE - 9.0% | |||
Biotechnology - 1.3% | |||
Amgen, Inc. | 94,549 | 13,622 | |
Gilead Sciences, Inc. | 186,800 | 13,767 | |
27,389 | |||
Health Care Equipment & Supplies - 1.9% | |||
Dentsply Sirona, Inc. | 97,300 | 5,661 | |
Medtronic PLC | 470,282 | 34,335 | |
39,996 | |||
Health Care Providers & Services - 0.2% | |||
AmerisourceBergen Corp. | 12,000 | 936 | |
Anthem, Inc. | 8,200 | 1,169 | |
McKesson Corp. | 13,100 | 1,884 | |
3,989 | |||
Pharmaceuticals - 5.6% | |||
Astellas Pharma, Inc. | 70,700 | 986 | |
Bristol-Myers Squibb Co. | 98,900 | 5,582 | |
GlaxoSmithKline PLC | 1,118,900 | 20,880 | |
Johnson & Johnson | 516,218 | 57,455 | |
Merck & Co., Inc. | 207,400 | 12,691 | |
Pfizer, Inc. | 229,013 | 7,360 | |
Sanofi SA | 76,347 | 6,153 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 258,000 | 9,727 | |
120,834 | |||
TOTAL HEALTH CARE | 192,208 | ||
INDUSTRIALS - 10.3% | |||
Aerospace & Defense - 3.4% | |||
General Dynamics Corp. | 111,500 | 19,552 | |
Raytheon Co. | 74,400 | 11,126 | |
The Boeing Co. | 72,100 | 10,855 | |
United Technologies Corp. | 291,507 | 31,401 | |
72,934 | |||
Air Freight & Logistics - 2.3% | |||
C.H. Robinson Worldwide, Inc. | 34,879 | 2,611 | |
PostNL NV (a) | 1,705,200 | 8,404 | |
United Parcel Service, Inc. Class B | 324,390 | 37,603 | |
48,618 | |||
Airlines - 0.3% | |||
Allegiant Travel Co. | 5,000 | 817 | |
Copa Holdings SA Class A | 61,200 | 5,439 | |
JetBlue Airways Corp. (a) | 5,491 | 110 | |
6,366 | |||
Commercial Services & Supplies - 0.7% | |||
KAR Auction Services, Inc. | 286,604 | 12,083 | |
Waste Connection, Inc. (Canada) | 32,193 | 2,458 | |
14,541 | |||
Electrical Equipment - 0.9% | |||
AMETEK, Inc. | 44,700 | 2,117 | |
Eaton Corp. PLC | 161,400 | 10,735 | |
Emerson Electric Co. | 47,170 | 2,662 | |
Regal Beloit Corp. | 51,900 | 3,784 | |
19,298 | |||
Industrial Conglomerates - 2.6% | |||
General Electric Co. (e) | 1,856,954 | 57,120 | |
Machinery - 0.1% | |||
Allison Transmission Holdings, Inc. | 67,600 | 2,242 | |
TOTAL INDUSTRIALS | 221,119 | ||
INFORMATION TECHNOLOGY - 8.9% | |||
Communications Equipment - 3.2% | |||
Cisco Systems, Inc. | 2,267,253 | 67,609 | |
Electronic Equipment & Components - 0.6% | |||
Dell Technologies, Inc. (a) | 124,300 | 6,658 | |
TE Connectivity Ltd. | 102,130 | 6,908 | |
13,566 | |||
IT Services - 1.3% | |||
First Data Corp. (f) | 779,769 | 11,361 | |
First Data Corp. Class A (a) | 237,900 | 3,466 | |
Paychex, Inc. | 141,078 | 8,317 | |
Sabre Corp. | 153,900 | 3,978 | |
27,122 | |||
Semiconductors & Semiconductor Equipment - 1.7% | |||
Maxim Integrated Products, Inc. | 184,900 | 7,261 | |
Qualcomm, Inc. | 415,089 | 28,280 | |
35,541 | |||
Software - 1.1% | |||
Microsoft Corp. | 385,938 | 23,257 | |
SS&C Technologies Holdings, Inc. | 34,000 | 1,020 | |
24,277 | |||
Technology Hardware, Storage & Peripherals - 1.0% | |||
Apple, Inc. | 185,500 | 20,501 | |
Inventec Corp. | 2,172,000 | 1,466 | |
21,967 | |||
TOTAL INFORMATION TECHNOLOGY | 190,082 | ||
MATERIALS - 1.9% | |||
Chemicals - 1.3% | |||
LyondellBasell Industries NV Class A | 124,000 | 11,200 | |
Potash Corp. of Saskatchewan, Inc. | 245,200 | 4,472 | |
The Dow Chemical Co. | 234,400 | 13,061 | |
28,733 | |||
Containers & Packaging - 0.6% | |||
Packaging Corp. of America | 15,670 | 1,328 | |
WestRock Co. | 203,600 | 10,424 | |
11,752 | |||
Metals & Mining - 0.0% | |||
Walter Energy Guc Trust | 17 | 5 | |
TOTAL MATERIALS | 40,490 | ||
REAL ESTATE - 2.0% | |||
Equity Real Estate Investment Trusts (REITs) - 2.0% | |||
American Tower Corp. | 39,900 | 4,081 | |
Cousins Properties, Inc. | 431,600 | 3,414 | |
Crown Castle International Corp. | 106,400 | 8,880 | |
Duke Realty LP | 189,400 | 4,816 | |
First Potomac Realty Trust | 452,777 | 4,451 | |
Parkway, Inc. (a)(g) | 10 | 0 | |
Piedmont Office Realty Trust, Inc. Class A | 262,635 | 5,158 | |
Public Storage | 31,600 | 6,614 | |
Sabra Health Care REIT, Inc. | 70,700 | 1,565 | |
Ventas, Inc. | 64,294 | 3,885 | |
42,864 | |||
TELECOMMUNICATION SERVICES - 3.6% | |||
Diversified Telecommunication Services - 3.5% | |||
AT&T, Inc. | 764,627 | 29,538 | |
Verizon Communications, Inc. | 933,290 | 46,571 | |
76,109 | |||
Wireless Telecommunication Services - 0.1% | |||
KDDI Corp. | 94,900 | 2,485 | |
TOTAL TELECOMMUNICATION SERVICES | 78,594 | ||
UTILITIES - 4.5% | |||
Electric Utilities - 4.0% | |||
American Electric Power Co., Inc. | 103,315 | 6,101 | |
Duke Energy Corp. | 80,400 | 5,931 | |
Entergy Corp. | 154,800 | 10,639 | |
Exelon Corp. | 1,095,100 | 35,602 | |
PPL Corp. (e) | 409,100 | 13,688 | |
Southern Co. | 214,725 | 10,053 | |
Xcel Energy, Inc. | 111,900 | 4,365 | |
86,379 | |||
Multi-Utilities - 0.5% | |||
CenterPoint Energy, Inc. | 272,200 | 6,495 | |
Public Service Enterprise Group, Inc. | 102,100 | 4,218 | |
10,713 | |||
TOTAL UTILITIES | 97,092 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,721,409) | 2,036,674 | ||
Convertible Preferred Stocks - 0.1% | |||
ENERGY - 0.0% | |||
Oil, Gas & Consumable Fuels - 0.0% | |||
Southwestern Energy Co. Series B 6.25% | 15,900 | 434 | |
HEALTH CARE - 0.1% | |||
Health Care Providers & Services - 0.0% | |||
AmSurg Corp. Series A-1, 5.25% | 2,700 | 333 | |
Pharmaceuticals - 0.1% | |||
Allergan PLC 5.50% | 937 | 672 | |
TOTAL HEALTH CARE | 1,005 | ||
TELECOMMUNICATION SERVICES - 0.0% | |||
Wireless Telecommunication Services - 0.0% | |||
T-Mobile U.S., Inc. Series A 5.50% | 4,300 | 383 | |
UTILITIES - 0.0% | |||
Multi-Utilities - 0.0% | |||
CenterPoint Energy, Inc. 2.00% ZENS | 5,250 | 336 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $1,957) | 2,158 | ||
Principal Amount (000s) | Value (000s) | ||
Corporate Bonds - 0.5% | |||
Convertible Bonds - 0.4% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Media - 0.0% | |||
DISH Network Corp. 3.375% 8/15/26 (f) | 760 | 849 | |
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Amyris, Inc. 3% 2/27/17 | 516 | 474 | |
Chesapeake Energy Corp. 5.5% 9/15/26 (f) | 600 | 635 | |
Scorpio Tankers, Inc. 2.375% 7/1/19 (f) | 2,840 | 2,199 | |
3,308 | |||
INFORMATION TECHNOLOGY - 0.2% | |||
Communications Equipment - 0.1% | |||
InterDigital, Inc. 1.5% 3/1/20 | 1,800 | 2,184 | |
Internet Software & Services - 0.1% | |||
Twitter, Inc. 1% 9/15/21 | 1,270 | 1,176 | |
Semiconductors & Semiconductor Equipment - 0.0% | |||
NXP Semiconductors NV 1% 12/1/19 | 520 | 593 | |
TOTAL INFORMATION TECHNOLOGY | 3,953 | ||
TOTAL CONVERTIBLE BONDS | 8,110 | ||
Nonconvertible Bonds - 0.1% | |||
FINANCIALS - 0.1% | |||
Thrifts & Mortgage Finance - 0.1% | |||
Prime Securities Services Borrower LLC/Prime Finance, Inc. 9.25% 5/15/23 (f) | 680 | 731 | |
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Valeant Pharmaceuticals International, Inc. 6.125% 4/15/25 (f) | 880 | 651 | |
UTILITIES - 0.0% | |||
Independent Power and Renewable Electricity Producers - 0.0% | |||
Dynegy, Inc. 7.375% 11/1/22 | 455 | 432 | |
TOTAL NONCONVERTIBLE BONDS | 1,814 | ||
TOTAL CORPORATE BONDS | |||
(Cost $10,012) | 9,924 | ||
Shares | Value (000s) | ||
Other - 0.2% | |||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) unit (c)(h) | |||
(Cost $3,910) | 3,910,236 | 3,910 | |
Money Market Funds - 6.2% | |||
Fidelity Cash Central Fund, 0.39% (i) | 121,155,951 | 121,180 | |
Fidelity Securities Lending Cash Central Fund 0.48% (i)(j) | 12,366,780 | 12,369 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $133,534) | 133,549 | ||
TOTAL INVESTMENT PORTFOLIO - 102.0% | |||
(Cost $1,870,822) | 2,186,215 | ||
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (43,589) | ||
NET ASSETS - 100% | $2,142,626 |
Written Options | ||||
Expiration Date/Exercise Price | Number of Contracts | Premium (000s) | Value (000s) | |
Call Options | ||||
Bank of America Corp. | 1/20/17 - $19.00 | 3,492 | $286 | $(826) |
Chevron Corp. | 1/20/17 - $105.00 | 2,850 | 466 | (2,229) |
General Electric Co. | 1/20/17 - $32.00 | 2,043 | 63 | (47) |
JPMorgan Chase & Co. | 12/16/16 - $80.00 | 1,785 | 109 | (267) |
PPL Corp. | 1/20/17 - $38.00 | 1,448 | 43 | (4) |
Regions Financial Corp. | 2/17/17 - $13.00 | 1,731 | 59 | (183) |
The Hershey Co. | 1/20/17 - $100.00 | 119 | 22 | (14) |
U.S. Bancorp | 1/20/17 - $49.00 | 856 | 58 | (129) |
TOTAL WRITTEN OPTIONS | $1,106 | $(3,699) |
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 $10,302,000 or 0.5% 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 $41,788,000.
(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 $16,426,000 or 0.8% of net assets.
(g) Affiliated company
(h) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(i) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(j) 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 |
Utica Shale Drilling Program (non-operating revenue interest) unit | 10/5/16 - 11/4/16 | $3,910 |
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 | $301 |
Fidelity Securities Lending Cash Central Fund | 161 |
Total | $462 |
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 |
Parkway, Inc. | $-- | $1,074 | $828 | $-- | $-- |
Total | $-- | $1,074 | $828 | $-- | $-- |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $199,187 | $192,795 | $-- | $6,392 |
Consumer Staples | 179,726 | 179,726 | -- | -- |
Energy | 271,220 | 271,220 | -- | -- |
Financials | 524,526 | 522,038 | 2,488 | -- |
Health Care | 193,213 | 165,194 | 28,019 | -- |
Industrials | 221,119 | 221,119 | -- | -- |
Information Technology | 190,082 | 190,082 | -- | -- |
Materials | 40,490 | 40,485 | -- | 5 |
Real Estate | 42,864 | 42,864 | -- | -- |
Telecommunication Services | 78,977 | 76,492 | 2,485 | -- |
Utilities | 97,428 | 97,092 | 336 | -- |
Corporate Bonds | 9,924 | -- | 9,450 | 474 |
Other | 3,910 | -- | -- | 3,910 |
Money Market Funds | 133,549 | 133,549 | -- | -- |
Total Investments in Securities: | $2,186,215 | $2,132,656 | $42,778 | $10,781 |
Derivative Instruments: | ||||
Liabilities | ||||
Written Options | $(3,699) | $(1,470) | $(2,229) | $-- |
Total Liabilities | $(3,699) | $(1,470) | $(2,229) | $-- |
Total Derivative Instruments: | $(3,699) | $(1,470) | $(2,229) | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of November 30, 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 | |
(Amounts in thousands) | ||
Equity Risk | ||
Written Options(a) | $0 | $(3,699) |
Total Equity Risk | 0 | (3,699) |
Total Value of Derivatives | $0 | $(3,699) |
(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 | 89.5% |
Switzerland | 2.2% |
Ireland | 2.2% |
Canada | 1.8% |
United Kingdom | 1.4% |
Netherlands | 1.1% |
Others (Individually Less Than 1%) | 1.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $12,068) — See accompanying schedule: Unaffiliated issuers (cost $1,737,288) | $2,052,666 | |
Fidelity Central Funds (cost $133,534) | 133,549 | |
Total Investments (cost $1,870,822) | $2,186,215 | |
Cash | 29 | |
Receivable for investments sold | 3,329 | |
Receivable for fund shares sold | 2,106 | |
Dividends receivable | 5,621 | |
Interest receivable | 70 | |
Distributions receivable from Fidelity Central Funds | 46 | |
Prepaid expenses | 5 | |
Other receivables | 100 | |
Total assets | 2,197,521 | |
Liabilities | ||
Payable for investments purchased | $23,383 | |
Payable for fund shares redeemed | 13,497 | |
Accrued management fee | 783 | |
Distribution and service plan fees payable | 624 | |
Written options, at value (premium received $1,106) | 3,699 | |
Other affiliated payables | 395 | |
Other payables and accrued expenses | 147 | |
Collateral on securities loaned, at value | 12,367 | |
Total liabilities | 54,895 | |
Net Assets | $2,142,626 | |
Net Assets consist of: | ||
Paid in capital | $1,797,119 | |
Undistributed net investment income | 7,460 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 25,253 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 312,794 | |
Net Assets | $2,142,626 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($703,051 ÷ 21,938.3 shares) | $32.05 | |
Maximum offering price per share (100/94.25 of $32.05) | $34.01 | |
Class T: | ||
Net Asset Value and redemption price per share ($787,407 ÷ 24,107.7 shares) | $32.66 | |
Maximum offering price per share (100/96.50 of $32.66) | $33.84 | |
Class C: | ||
Net Asset Value and offering price per share ($197,890 ÷ 6,143.0 shares)(a) | $32.21 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($439,221 ÷ 13,185.4 shares) | $33.31 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($15,057 ÷ 452.1 shares) | $33.30 |
(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 | Year ended November 30, 2016 | |
Investment Income | ||
Dividends | $60,051 | |
Interest | 419 | |
Income from Fidelity Central Funds | 462 | |
Total income | 60,932 | |
Expenses | ||
Management fee | $9,232 | |
Transfer agent fees | 4,116 | |
Distribution and service plan fees | 7,395 | |
Accounting and security lending fees | 626 | |
Custodian fees and expenses | 48 | |
Independent trustees' fees and expenses | 9 | |
Registration fees | 104 | |
Audit | 79 | |
Legal | 9 | |
Miscellaneous | 18 | |
Total expenses before reductions | 21,636 | |
Expense reductions | (76) | 21,560 |
Net investment income (loss) | 39,372 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 16,022 | |
Fidelity Central Funds | 5 | |
Other affiliated issuers | (246) | |
Foreign currency transactions | (49) | |
Written options | 4,453 | |
Total net realized gain (loss) | 20,185 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 201,954 | |
Assets and liabilities in foreign currencies | 10 | |
Written options | (2,274) | |
Total change in net unrealized appreciation (depreciation) | 199,690 | |
Net gain (loss) | 219,875 | |
Net increase (decrease) in net assets resulting from operations | $259,247 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $39,372 | $63,860 |
Net realized gain (loss) | 20,185 | 155,192 |
Change in net unrealized appreciation (depreciation) | 199,690 | (305,503) |
Net increase (decrease) in net assets resulting from operations | 259,247 | (86,451) |
Distributions to shareholders from net investment income | (43,001) | (66,216) |
Distributions to shareholders from net realized gain | (143,228) | (81,483) |
Total distributions | (186,229) | (147,699) |
Share transactions - net increase (decrease) | (70,794) | (126,756) |
Total increase (decrease) in net assets | 2,224 | (360,906) |
Net Assets | ||
Beginning of period | 2,140,402 | 2,501,308 |
End of period | $2,142,626 | $2,140,402 |
Other Information | ||
Undistributed net investment income end of period | $7,460 | $16,088 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Income Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.10 | $34.44 | $31.60 | $25.55 | $22.18 |
Income from Investment Operations | |||||
Net investment income (loss)A | .59 | .92 | .84B | .60 | .61 |
Net realized and unrealized gain (loss) | 3.13 | (2.15) | 2.67 | 6.06 | 3.32 |
Total from investment operations | 3.72 | (1.23) | 3.51 | 6.66 | 3.93 |
Distributions from net investment income | (.66) | (.98) | (.64) | (.58) | (.56) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | (.03) | – |
Total distributions | (2.77) | (2.11)C | (.67)D | (.61) | (.56) |
Net asset value, end of period | $32.05 | $31.10 | $34.44 | $31.60 | $25.55 |
Total ReturnE,F | 13.52% | (3.61)% | 11.28% | 26.43% | 17.90% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .95% | .95% | .96% | .98% | 1.02% |
Expenses net of fee waivers, if any | .95% | .95% | .96% | .98% | 1.02% |
Expenses net of all reductions | .95% | .94% | .95% | .97% | 1.01% |
Net investment income (loss) | 2.01% | 2.85% | 2.55%B | 2.07% | 2.52% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $703 | $688 | $794 | $777 | $646 |
Portfolio turnover rateI | 36% | 53% | 33% | 34% | 49% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.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 $2.11 per share is comprised of distributions from net investment income of $.975 and distributions from net realized gain of $1.136 per share.
D 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.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.64 | $34.99 | $32.09 | $25.94 | $22.50 |
Income from Investment Operations | |||||
Net investment income (loss)A | .53 | .86 | .78B | .55 | .57 |
Net realized and unrealized gain (loss) | 3.19 | (2.18) | 2.72 | 6.15 | 3.37 |
Total from investment operations | 3.72 | (1.32) | 3.50 | 6.70 | 3.94 |
Distributions from net investment income | (.59) | (.89) | (.56) | (.52) | (.50) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | (.03) | – |
Total distributions | (2.70) | (2.03) | (.60) | (.55) | (.50) |
Net asset value, end of period | $32.66 | $31.64 | $34.99 | $32.09 | $25.94 |
Total ReturnC,D | 13.24% | (3.83)% | 11.04% | 26.14% | 17.70% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.18% | 1.18% | 1.18% | 1.19% | 1.21% |
Expenses net of fee waivers, if any | 1.18% | 1.18% | 1.18% | 1.19% | 1.21% |
Expenses net of all reductions | 1.18% | 1.17% | 1.18% | 1.18% | 1.21% |
Net investment income (loss) | 1.78% | 2.62% | 2.33%B | 1.86% | 2.32% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $787 | $813 | $974 | $984 | $854 |
Portfolio turnover rateG | 36% | 53% | 33% | 34% | 49% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.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 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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.24 | $34.57 | $31.73 | $25.66 | $22.27 |
Income from Investment Operations | |||||
Net investment income (loss)A | .37 | .68 | .59B | .38 | .43 |
Net realized and unrealized gain (loss) | 3.14 | (2.15) | 2.69 | 6.09 | 3.33 |
Total from investment operations | 3.51 | (1.47) | 3.28 | 6.47 | 3.76 |
Distributions from net investment income | (.43) | (.72) | (.40) | (.37) | (.37) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | (.03) | – |
Total distributions | (2.54) | (1.86) | (.44) | (.40) | (.37) |
Net asset value, end of period | $32.21 | $31.24 | $34.57 | $31.73 | $25.66 |
Total ReturnC,D | 12.63% | (4.34)% | 10.44% | 25.46% | 17.03% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.72% | 1.72% | 1.72% | 1.74% | 1.77% |
Expenses net of fee waivers, if any | 1.72% | 1.71% | 1.72% | 1.74% | 1.77% |
Expenses net of all reductions | 1.71% | 1.71% | 1.71% | 1.73% | 1.77% |
Net investment income (loss) | 1.24% | 2.09% | 1.79%B | 1.32% | 1.76% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $198 | $187 | $214 | $195 | $143 |
Portfolio turnover rateG | 36% | 53% | 33% | 34% | 49% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.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 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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.21 | $35.59 | $32.62 | $26.36 | $22.86 |
Income from Investment Operations | |||||
Net investment income (loss)A | .69 | 1.04 | .95B | .70 | .70 |
Net realized and unrealized gain (loss) | 3.26 | (2.23) | 2.77 | 6.24 | 3.43 |
Total from investment operations | 3.95 | (1.19)�� | 3.72 | 6.94 | 4.13 |
Distributions from net investment income | (.74) | (1.06) | (.72) | (.65) | (.63) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | (.03) | – |
Total distributions | (2.85) | (2.19)C | (.75)D | (.68) | (.63) |
Net asset value, end of period | $33.31 | $32.21 | $35.59 | $32.62 | $26.36 |
Total ReturnE | 13.82% | (3.37)% | 11.59% | 26.72% | 18.27% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .69% | .69% | .70% | .72% | .73% |
Expenses net of fee waivers, if any | .69% | .69% | .70% | .72% | .73% |
Expenses net of all reductions | .68% | .69% | .70% | .71% | .73% |
Net investment income (loss) | 2.27% | 3.11% | 2.81%B | 2.34% | 2.80% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $439 | $428 | $496 | $483 | $445 |
Portfolio turnover rateH | 36% | 53% | 33% | 34% | 49% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.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 $2.19 per share is comprised of distributions from net investment income of $1.058 and distributions from net realized gain of $1.136 per share.
D 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.
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 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
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 | .74 | 1.08 | 1.03C | .23 |
Net realized and unrealized gain (loss) | 3.24 | (2.21) | 2.74 | 1.12 |
Total from investment operations | 3.98 | (1.13) | 3.77 | 1.35 |
Distributions from net investment income | (.79) | (1.11) | (.78) | (.16) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | – |
Total distributions | (2.89)D | (2.25) | (.81)E | (.16) |
Net asset value, end of period | $33.30 | $32.21 | $35.59 | $32.63 |
Total ReturnF,G | 13.96% | (3.20)% | 11.75% | 4.30% |
Ratios to Average Net AssetsH,I | ||||
Expenses before reductions | .54% | .54% | .54% | .54%J |
Expenses net of fee waivers, if any | .54% | .54% | .54% | .54%J |
Expenses net of all reductions | .53% | .53% | .54% | .54%J |
Net investment income (loss) | 2.42% | 3.26% | 2.97%C | 2.37%J |
Supplemental Data | ||||
Net assets, end of period (in millions) | $15 | $14 | $4 | $– |
Portfolio turnover rateK | 36% | 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 $2.89 per share is comprised of distributions from net investment income of $.788 and distributions from net realized gain of $2.106 per share.
E 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.
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
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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. Options traded over-the-counter are valued using broker-supplied valuations and are categorized as Level 2 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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, deferred trustees compensation, contingent 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 | $407,247 |
Gross unrealized depreciation | (94,680) |
Net unrealized appreciation (depreciation) on securities | $312,567 |
Tax Cost | $1,873,648 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $18,886 |
Undistributed long-term capital gain | $21,883 |
Net unrealized appreciation (depreciation) on securities and other investments | $304,826 |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $44,080 | $ 66,216 |
Long-term Capital Gains | 142,149 | 81,483 |
Total | $186,229 | $ 147,699 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $3,910 in this Subsidiary, representing .18% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
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. On certain OTC derivatives such as options, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement upon the deterioration in the credit quality of the counterparty beyond specified levels. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk on bi-lateral OTC derivatives, the Fund receives collateral in the form of cash or securities once the Fund's net unrealized appreciation on outstanding derivative contracts under an ISDA Master Agreement exceeds certain applicable thresholds, subject to certain minimum transfer provisions. The collateral received is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the counterparty and the Fund's custodian bank. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk related to bi-lateral OTC derivatives is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty 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 used exchange-traded and OTC 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 $4,453 and a change in net unrealized appreciation (depreciation) of $(2,274) 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 | 96 | 6,814 |
Options Exercised | (39) | (2,319) |
Options Closed | (23) | (1,692) |
Options Expired | (40) | (3,337) |
Outstanding at end of period | 14 | $1,106 |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $712,542 and $910,763, 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 annual 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% | $1,661 | $– |
Class T | .25% | .25% | 3,854 | – |
Class B | .75% | .25% | 43 | 32 |
Class C | .75% | .25% | 1,837 | 86 |
$7,395 | $118 |
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 | $117 |
Class T | 26 |
Class B(a) | –(b) |
Class C(a) | 10 |
$153 |
(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 | |
Class A | $1,392 | .21 |
Class T | 1,456 | .19 |
Class B | 12 | .28 |
Class C | 419 | .23 |
Class I | 830 | .20 |
Class Z | 7 | .05 |
$ 4,116 |
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 $17 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 $5 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 $161, including less than five hundred dollars 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 $61 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 $15.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $14,760 | $22,360 |
Class T | 15,119 | 24,297 |
Class B | 95 | 312 |
Class C | 2,618 | 4,432 |
Class I | 10,055 | 14,486 |
Class Z | 354 | 329 |
Total | $43,001 | $66,216 |
From net realized gain | ||
Class A | $46,541 | $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 | $143,228 | $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 | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 2,420 | 2,362 | $70,433 | $75,894 |
Reinvestment of distributions | 2,081 | 1,433 | 57,784 | 45,794 |
Shares redeemed | (4,679) | (4,745) | (136,659) | (152,883) |
Net increase (decrease) | (178) | (950) | $(8,442) | $(31,195) |
Class T | ||||
Shares sold | 2,416 | 2,316 | $71,773 | $76,171 |
Reinvestment of distributions | 2,392 | 1,671 | 67,591 | 54,352 |
Shares redeemed | (6,397) | (6,115) | (190,578) | (200,386) |
Net increase (decrease) | (1,589) | (2,128) | $(51,214) | $(69,863) |
Class B | ||||
Shares sold | 4 | 9 | $155 | $284 |
Reinvestment of distributions | 25 | 26 | 692 | 855 |
Shares redeemed | (351) | (270) | (10,124) | (8,810) |
Net increase (decrease) | (322) | (235) | $(9,277) | $(7,671) |
Class C | ||||
Shares sold | 806 | 655 | $23,799 | $21,329 |
Reinvestment of distributions | 494 | 323 | 13,767 | 10,405 |
Shares redeemed | (1,149) | (1,186) | (33,678) | (38,343) |
Net increase (decrease) | 151 | (208) | $3,888 | $(6,609) |
Class I | ||||
Shares sold | 2,077 | 1,946 | $63,265 | $64,288 |
Reinvestment of distributions | 1,284 | 888 | 37,038 | 29,367 |
Shares redeemed | (3,464) | (3,471) | (106,411) | (116,106) |
Net increase (decrease) | (103) | (637) | $(6,108) | $(22,451) |
Class Z | ||||
Shares sold | 132 | 374 | $3,920 | $12,522 |
Reinvestment of distributions | 45 | 15 | 1,309 | 484 |
Shares redeemed | (168) | (60) | (4,870) | (1,973) |
Net increase (decrease) | 9 | 329 | $359 | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Equity Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Equity Income Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Equity Income Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 18, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | .95% | |||
Actual | $1,000.00 | $1,096.90 | $4.98 | |
Hypothetical-C | $1,000.00 | $1,020.25 | $4.80 | |
Class T | 1.18% | |||
Actual | $1,000.00 | $1,095.50 | $6.18 | |
Hypothetical-C | $1,000.00 | $1,019.10 | $5.96 | |
Class C | 1.71% | |||
Actual | $1,000.00 | $1,092.30 | $8.94 | |
Hypothetical-C | $1,000.00 | $1,016.45 | $8.62 | |
Class I | .68% | |||
Actual | $1,000.00 | $1,098.20 | $3.57 | |
Hypothetical-C | $1,000.00 | $1,021.60 | $3.44 | |
Class Z | .54% | |||
Actual | $1,000.00 | $1,099.00 | $2.83 | |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Equity Income voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Equity Income Fund | ||||
Class A | 12/28/16 | 12/27/16 | $0.293 | $0.402 |
Class T | 12/28/16 | 12/27/16 | $0.272 | $0.402 |
Class C | 12/28/16 | 12/27/16 | $0.230 | $0.402 |
Class I | 12/28/16 | 12/27/16 | $0.313 | $0.402 |
Class Z | 12/28/16 | 12/27/16 | $0.325 | $0.402 |
Subsequent to ex dividend date, a portion of the dividend was designated as capital gain.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2016 $21,883,487, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.13% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
Class A designates 85%, 100%, 100% and 100%; Class T designates 89%, 100%, 100% and 100%; Class I designates 80%, 100%, 100% and 100%; Class Z designates 77%, 100%, 100% and 100%; of the dividends distributed in December, April, July and October, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders. Class B and Class C designate 100% of the dividends distributed during the year as qualifying for the dividends–received deduction for corporate shareholders.
Class A designates 80%, 100%, 100% and 100%; Class T designates 85%, 100%, 100% and 100%; Class C designates 97%, 100%, 100% and 100%; Class I designates 75%, 100%, 100% and 100%; Class Z designates 73%, 100%, 100% and 100%; of the dividends distributed in December, April, July and October, respectively during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code. Class B designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Equity Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Equity Income Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190623650.jpg)
Fidelity Advisor Equity Income Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190623927.jpg)
EPI-ANN-0117
1.539449.120
Fidelity Advisor® Stock Selector Mid Cap Fund Class A, Class T, Class C and Class I Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (0.58)% | 10.99% | 4.46% |
Class T (incl. 3.50% sales charge) | 1.54% | 11.27% | 4.50% |
Class C (incl. contingent deferred sales charge) | 3.71% | 11.48% | 4.31% |
Class I | 5.75% | 12.59% | 5.38% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Stock Selector Mid Cap Fund - Class A on November 30, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P MidCap 400® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186134190_740.jpg)
Period Ending Values | ||
$15,477 | Fidelity Advisor® Stock Selector Mid Cap Fund - Class A | |
$23,390 | S&P MidCap 400® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.’s June 23 vote to exit the European Union – dubbed “Brexit” – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Co-Portfolio Manager Eddie Yoon: For the year, the fund’s share classes posted gains in the range of roughly 5% to 6%, trailing the 13.23% return of their index, the S&P MidCap 400. Overall, stock selection detracted most versus the index. Choices in the industrials, materials and information technology sectors disappointed, with choices in the capital goods segment of industrials doing the most damage. Here, an out-of benchmark position in electronic instrument manufacturer Ametek was by far the fund’s largest relative detractor. Ametek remained among the fund’s largest holdings at period end, even though we sold some of the position to invest elsewhere. Shares of generic drug maker Endo International also detracted. We sold this holding in November because we didn’t see a clear path to value creation. Conversely, positioning in energy and consumer staples helped performance this period, as did a stake in SVB Financial Group, a holding company for a Silicon Valley bank.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On May 13, 2016, Christopher Lin became Co-Manager of the fund, responsible for its information technology and telecommunication services sleeves, succeeding Rayna Lesser Hannaway. On October 24, 2016, John Mirshekari became Co-Manager overseeing the fund's industrials sector assets, while Co-Manager Shadman Riaz assumed responsibility for its materials sleeve, each succeeding Monty Kori.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Capital One Financial Corp. | 2.0 | 1.4 |
Huntington Bancshares, Inc. | 1.8 | 1.2 |
Steel Dynamics, Inc. | 1.5 | 0.0 |
SLM Corp. | 1.3 | 0.7 |
AMETEK, Inc. | 1.2 | 3.9 |
MRC Global, Inc. | 1.1 | 0.0 |
Aerojet Rocketdyne Holdings, Inc. | 1.1 | 0.0 |
Arthur J. Gallagher & Co. | 1.0 | 1.5 |
Fortive Corp. | 1.0 | 0.0 |
Signature Bank | 1.0 | 0.7 |
13.0 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 17.1 | 16.7 |
Financials | 16.7 | 25.2 |
Industrials | 13.6 | 14.1 |
Consumer Discretionary | 12.4 | 12.0 |
Real Estate | 10.5 | 0.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016* | ||
Stocks and Equity Futures | 98.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.5% |
* Foreign investments - 7.9%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.4% | |||
Distributors - 0.6% | |||
LKQ Corp. (a) | 360,700 | $11,842 | |
Diversified Consumer Services - 1.2% | |||
Grand Canyon Education, Inc. (a) | 115,300 | 6,584 | |
ServiceMaster Global Holdings, Inc. (a) | 453,684 | 17,340 | |
23,924 | |||
Hotels, Restaurants & Leisure - 2.0% | |||
ARAMARK Holdings Corp. | 295,300 | 10,161 | |
Dunkin' Brands Group, Inc. | 362,600 | 19,686 | |
Restaurant Brands International, Inc. | 233,700 | 11,129 | |
40,976 | |||
Household Durables - 0.8% | |||
NVR, Inc. (a) | 9,500 | 15,153 | |
Internet & Direct Marketing Retail - 0.8% | |||
Liberty Expedia Holdings, Inc. (a) | 49,160 | 2,161 | |
Liberty Interactive Corp.: | |||
(Venture Group) Series A (a) | 102,640 | 4,005 | |
QVC Group Series A (a) | 504,910 | 10,457 | |
16,623 | |||
Media - 4.8% | |||
AMC Networks, Inc. Class A (a) | 251,300 | 13,884 | |
Discovery Communications, Inc. Class A (a) | 443,200 | 12,006 | |
Liberty Broadband Corp. Class A (a) | 124,800 | 8,677 | |
Liberty Global PLC LiLAC Class C (a) | 282,600 | 5,983 | |
Liberty Media Corp. Liberty Media Class A (a) | 304,000 | 9,512 | |
Live Nation Entertainment, Inc. (a) | 419,500 | 11,612 | |
Scripps Networks Interactive, Inc. Class A (b) | 180,900 | 12,529 | |
Starz Series A (a) | 418,500 | 14,170 | |
The Madison Square Garden Co. (a) | 54,000 | 9,377 | |
97,750 | |||
Multiline Retail - 0.7% | |||
Dollar General Corp. | 180,800 | 13,979 | |
Specialty Retail - 0.3% | |||
Ross Stores, Inc. | 71,700 | 4,846 | |
Textiles, Apparel & Luxury Goods - 1.2% | |||
Hanesbrands, Inc. | 200,100 | 4,648 | |
PVH Corp. | 105,000 | 11,124 | |
VF Corp. | 161,800 | 8,820 | |
24,592 | |||
TOTAL CONSUMER DISCRETIONARY | 249,685 | ||
CONSUMER STAPLES - 3.8% | |||
Beverages - 1.3% | |||
Coca-Cola European Partners PLC | 301,400 | 9,783 | |
Dr. Pepper Snapple Group, Inc. | 49,300 | 4,276 | |
Molson Coors Brewing Co. Class B | 121,600 | 11,920 | |
25,979 | |||
Food & Staples Retailing - 0.4% | |||
United Natural Foods, Inc. (a) | 169,200 | 7,944 | |
Food Products - 1.2% | |||
ConAgra Foods, Inc. | 117,500 | 4,311 | |
Gores Holdings, Inc.(a)(b) | 604,000 | 7,822 | |
Lamb Weston Holdings, Inc. (a) | 39,166 | 1,311 | |
Mead Johnson Nutrition Co. Class A | 108,900 | 7,851 | |
WhiteWave Foods Co. (a) | 69,300 | 3,818 | |
25,113 | |||
Household Products - 0.7% | |||
Church & Dwight Co., Inc. | 197,800 | 8,662 | |
Energizer Holdings, Inc. (b) | 47,300 | 2,122 | |
Spectrum Brands Holdings, Inc. | 32,300 | 3,872 | |
14,656 | |||
Personal Products - 0.2% | |||
Coty, Inc. Class A | 193,800 | 3,626 | |
TOTAL CONSUMER STAPLES | 77,318 | ||
ENERGY - 4.2% | |||
Energy Equipment & Services - 1.4% | |||
Dril-Quip, Inc. (a) | 136,000 | 7,691 | |
Nabors Industries Ltd. | 738,500 | 11,890 | |
Oil States International, Inc. (a) | 226,500 | 8,120 | |
27,701 | |||
Oil, Gas & Consumable Fuels - 2.8% | |||
Cabot Oil & Gas Corp. | 62,300 | 1,378 | |
Cimarex Energy Co. | 50,200 | 6,922 | |
Energen Corp. | 207,500 | 12,880 | |
HollyFrontier Corp. | 361,800 | 10,409 | |
PDC Energy, Inc. (a) | 76,100 | 5,666 | |
Whiting Petroleum Corp. (a)(b) | 552,700 | 6,754 | |
WPX Energy, Inc. (a) | 820,700 | 12,754 | |
56,763 | |||
TOTAL ENERGY | 84,464 | ||
FINANCIALS - 16.7% | |||
Banks - 6.1% | |||
Aldermore Group PLC (a) | 2,170,700 | 5,796 | |
CIT Group, Inc. | 470,000 | 19,200 | |
Comerica, Inc. | 63,300 | 4,035 | |
Huntington Bancshares, Inc. | 2,911,206 | 36,274 | |
Shawbrook Group PLC (a) | 1,401,100 | 4,391 | |
Signature Bank (a) | 136,100 | 20,403 | |
SVB Financial Group (a) | 117,700 | 18,600 | |
Synovus Financial Corp. | 302,327 | 11,703 | |
The Jammu & Kashmir Bank Ltd. (a) | 2,407,373 | 2,132 | |
122,534 | |||
Capital Markets - 2.2% | |||
CBOE Holdings, Inc. | 173,300 | 11,940 | |
Interactive Brokers Group, Inc. | 101,367 | 3,722 | |
MSCI, Inc. | 176,500 | 13,908 | |
Virtu Financial, Inc. Class A | 616,800 | 8,543 | |
WisdomTree Investments, Inc. (b) | 569,300 | 6,296 | |
44,409 | |||
Consumer Finance - 3.9% | |||
Capital One Financial Corp. | 478,400 | 40,208 | |
First Cash Financial Services, Inc. | 70,700 | 3,245 | |
OneMain Holdings, Inc. (a) | 461,780 | 9,406 | |
SLM Corp. (a) | 2,571,216 | 25,892 | |
78,751 | |||
Diversified Financial Services - 0.3% | |||
On Deck Capital, Inc. (a)(b) | 1,310,058 | 6,026 | |
Insurance - 2.8% | |||
Allied World Assurance Co. Holdings AG | 160,100 | 7,494 | |
Arthur J. Gallagher & Co. | 418,200 | 21,056 | |
Direct Line Insurance Group PLC | 1,973,558 | 8,573 | |
Employers Holdings, Inc. | 187,900 | 6,642 | |
FNF Group | 100,000 | 3,194 | |
Hanover Insurance Group, Inc. | 67,900 | 5,879 | |
ProAssurance Corp. | 81,200 | 4,551 | |
57,389 | |||
Mortgage Real Estate Investment Trusts - 0.7% | |||
Altisource Residential Corp. Class B | 660,721 | 7,783 | |
Redwood Trust, Inc. | 476,000 | 7,245 | |
15,028 | |||
Thrifts & Mortgage Finance - 0.7% | |||
Essent Group Ltd. (a) | 278,100 | 8,488 | |
LIC Housing Finance Ltd. | 719,652 | 5,916 | |
14,404 | |||
TOTAL FINANCIALS | 338,541 | ||
HEALTH CARE - 7.2% | |||
Biotechnology - 0.7% | |||
Puma Biotechnology, Inc. (a) | 65,000 | 2,798 | |
Vertex Pharmaceuticals, Inc. (a) | 126,000 | 10,283 | |
13,081 | |||
Health Care Equipment & Supplies - 3.2% | |||
Boston Scientific Corp. (a) | 620,000 | 12,685 | |
Insulet Corp. (a) | 190,600 | 6,414 | |
The Cooper Companies, Inc. | 58,000 | 9,540 | |
The Spectranetics Corp. (a) | 330,000 | 7,211 | |
Wright Medical Group NV (a) | 500,000 | 11,520 | |
Zeltiq Aesthetics, Inc. (a) | 179,328 | 7,892 | |
Zimmer Biomet Holdings, Inc. | 90,000 | 9,167 | |
64,429 | |||
Health Care Providers & Services - 2.2% | |||
American Renal Associates Holdings, Inc. | 290,000 | 7,082 | |
AmSurg Corp. (a) | 184,000 | 12,534 | |
MEDNAX, Inc. (a) | 200,000 | 13,094 | |
Premier, Inc. (a) | 206,000 | 6,209 | |
Surgical Care Affiliates, Inc. (a) | 140,000 | 5,887 | |
44,806 | |||
Life Sciences Tools & Services - 0.3% | |||
Agilent Technologies, Inc. | 155,000 | 6,817 | |
Pharmaceuticals - 0.8% | |||
Catalent, Inc. (a) | 670,000 | 16,033 | |
TOTAL HEALTH CARE | 145,166 | ||
INDUSTRIALS - 13.6% | |||
Aerospace & Defense - 2.4% | |||
Aerojet Rocketdyne Holdings, Inc. (a) | 1,057,020 | 21,479 | |
Taser International, Inc. (a)(b) | 444,800 | 12,112 | |
Teledyne Technologies, Inc. (a) | 116,308 | 14,523 | |
48,114 | |||
Airlines - 0.4% | |||
American Airlines Group, Inc. | 191,700 | 8,903 | |
Building Products - 0.7% | |||
Allegion PLC | 223,510 | 14,955 | |
Commercial Services & Supplies - 0.2% | |||
Aggreko PLC | 294,700 | 3,014 | |
Construction & Engineering - 0.8% | |||
Fluor Corp. | 302,857 | 16,206 | |
Electrical Equipment - 2.2% | |||
AMETEK, Inc. | 487,672 | 23,091 | |
Fortive Corp. | 378,600 | 20,819 | |
Sensata Technologies Holding BV (a) | 8,000 | 299 | |
44,209 | |||
Industrial Conglomerates - 0.6% | |||
Roper Technologies, Inc. | 64,830 | 11,741 | |
Machinery - 3.6% | |||
AGCO Corp. | 271,500 | 15,150 | |
Allison Transmission Holdings, Inc. | 474,463 | 15,738 | |
Flowserve Corp. | 318,625 | 15,119 | |
IDEX Corp. | 195,400 | 18,291 | |
TriMas Corp. (a) | 281,113 | 6,030 | |
WABCO Holdings, Inc. (a) | 28,500 | 2,808 | |
73,136 | |||
Professional Services - 0.6% | |||
Robert Half International, Inc. | 201,100 | 9,023 | |
Verisk Analytics, Inc. (a) | 33,270 | 2,764 | |
11,787 | |||
Road & Rail - 0.7% | |||
CSX Corp. | 412,800 | 14,782 | |
Trading Companies & Distributors - 1.4% | |||
Fastenal Co. | 130,700 | 6,195 | |
MRC Global, Inc. (a) | 1,121,900 | 22,584 | |
28,779 | |||
TOTAL INDUSTRIALS | 275,626 | ||
INFORMATION TECHNOLOGY - 17.1% | |||
Communications Equipment - 0.9% | |||
Brocade Communications Systems, Inc. | 51,200 | 632 | |
CommScope Holding Co., Inc. (a) | 291,100 | 10,474 | |
F5 Networks, Inc. (a) | 51,230 | 7,211 | |
18,317 | |||
Electronic Equipment & Components - 2.9% | |||
Arrow Electronics, Inc. (a) | 147,000 | 10,036 | |
CDW Corp. | 238,500 | 12,221 | |
IPG Photonics Corp. (a) | 116,500 | 11,175 | |
Jabil Circuit, Inc. | 832,600 | 17,609 | |
Keysight Technologies, Inc. (a) | 186,900 | 6,884 | |
57,925 | |||
Internet Software & Services - 1.1% | |||
SPS Commerce, Inc. (a) | 113,400 | 7,855 | |
Stamps.com, Inc. (a) | 136,900 | 14,539 | |
Velti PLC (a)(c) | 215,084 | 1 | |
22,395 | |||
IT Services - 3.8% | |||
Capgemini SA | 106,100 | 8,378 | |
Cognizant Technology Solutions Corp. Class A (a) | 208,800 | 11,501 | |
Computer Sciences Corp. | 184,000 | 11,156 | |
EPAM Systems, Inc. (a) | 158,500 | 10,445 | |
Global Payments, Inc. | 139,300 | 9,549 | |
Maximus, Inc. | 145,200 | 8,028 | |
Reply SpA | 77,283 | 8,928 | |
Sabre Corp. | 361,300 | 9,340 | |
77,325 | |||
Semiconductors & Semiconductor Equipment - 2.9% | |||
Dialog Semiconductor PLC (a) | 234,700 | 9,304 | |
Lam Research Corp. | 103,800 | 11,005 | |
Maxim Integrated Products, Inc. | 84,500 | 3,318 | |
NXP Semiconductors NV (a) | 120,600 | 11,957 | |
Qorvo, Inc. (a) | 210,700 | 11,253 | |
Skyworks Solutions, Inc. | 160,800 | 12,357 | |
59,194 | |||
Software - 4.9% | |||
ANSYS, Inc. (a) | 116,800 | 10,983 | |
CDK Global, Inc. | 321,400 | 18,545 | |
Fair Isaac Corp. | 42,100 | 4,786 | |
Salesforce.com, Inc. (a) | 167,500 | 12,060 | |
SS&C Technologies Holdings, Inc. | 128,000 | 3,841 | |
Synchronoss Technologies, Inc. (a) | 191,700 | 9,294 | |
Synopsys, Inc. (a) | 140,300 | 8,485 | |
Tableau Software, Inc. (a) | 198,600 | 8,913 | |
Tyler Technologies, Inc. (a) | 43,700 | 6,507 | |
Ultimate Software Group, Inc. (a) | 79,000 | 16,189 | |
99,603 | |||
Technology Hardware, Storage & Peripherals - 0.6% | |||
HP, Inc. | 732,100 | 11,274 | |
TOTAL INFORMATION TECHNOLOGY | 346,033 | ||
MATERIALS - 7.4% | |||
Chemicals - 4.1% | |||
Ashland Global Holdings, Inc. | 166,800 | 18,798 | |
Axalta Coating Systems (a) | 342,700 | 9,054 | |
CF Industries Holdings, Inc. | 278,200 | 8,051 | |
Olin Corp. | 648,400 | 16,858 | |
PPG Industries, Inc. | 79,500 | 7,626 | |
RPM International, Inc. | 254,900 | 13,487 | |
W.R. Grace & Co. | 134,497 | 8,777 | |
82,651 | |||
Containers & Packaging - 1.8% | |||
Ball Corp. | 164,563 | 12,352 | |
Sealed Air Corp. | 219,600 | 10,014 | |
WestRock Co. | 268,100 | 13,727 | |
36,093 | |||
Metals & Mining - 1.5% | |||
Steel Dynamics, Inc. | 894,700 | 31,744 | |
TOTAL MATERIALS | 150,488 | ||
REAL ESTATE - 10.5% | |||
Equity Real Estate Investment Trusts (REITs) - 10.2% | |||
Apartment Investment & Management Co. Class A | 224,600 | 9,456 | |
Communications Sales & Leasing, Inc. | 283,900 | 7,078 | |
Corrections Corp. of America | 109,996 | 2,498 | |
DCT Industrial Trust, Inc. | 324,890 | 14,929 | |
Douglas Emmett, Inc. | 550,000 | 20,180 | |
Duke Realty LP | 523,900 | 13,323 | |
Equity Lifestyle Properties, Inc. | 166,100 | 11,532 | |
Extra Space Storage, Inc. | 67,500 | 4,736 | |
FelCor Lodging Trust, Inc. | 1,380,600 | 10,023 | |
Healthcare Realty Trust, Inc. | 590,800 | 17,358 | |
Hudson Pacific Properties, Inc. | 244,600 | 8,529 | |
Mack-Cali Realty Corp. | 538,500 | 14,566 | |
Outfront Media, Inc. | 284,300 | 7,167 | |
Post Properties, Inc. | 44,500 | 2,893 | |
Potlatch Corp. | 149,600 | 6,145 | |
Ramco-Gershenson Properties Trust (SBI) | 340,000 | 5,770 | |
Sabra Health Care REIT, Inc. | 412,700 | 9,133 | |
Taubman Centers, Inc. | 170,200 | 12,368 | |
The GEO Group, Inc. | 55,600 | 1,849 | |
Urban Edge Properties | 566,600 | 15,349 | |
VEREIT, Inc. | 1,494,300 | 12,388 | |
207,270 | |||
Real Estate Management & Development - 0.3% | |||
CBRE Group, Inc. (a) | 190,450 | 5,531 | |
TOTAL REAL ESTATE | 212,801 | ||
TELECOMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.1% | |||
SBA Communications Corp. Class A (a) | 14,570 | 1,442 | |
Wireless Telecommunication Services - 0.1% | |||
T-Mobile U.S., Inc. (a) | 33,350 | 1,808 | |
TOTAL TELECOMMUNICATION SERVICES | 3,250 | ||
UTILITIES - 5.1% | |||
Electric Utilities - 2.2% | |||
Great Plains Energy, Inc. | 514,600 | 13,580 | |
OGE Energy Corp. | 423,126 | 13,392 | |
PNM Resources, Inc. | 300,400 | 9,493 | |
Westar Energy, Inc. | 143,075 | 8,150 | |
44,615 | |||
Gas Utilities - 1.6% | |||
Atmos Energy Corp. | 231,740 | 16,481 | |
National Fuel Gas Co. | 198,011 | 11,164 | |
South Jersey Industries, Inc. | 163,400 | 5,392 | |
33,037 | |||
Multi-Utilities - 1.3% | |||
Avangrid, Inc. | 209,600 | 7,581 | |
Black Hills Corp. | 243,705 | 14,318 | |
MDU Resources Group, Inc. | 146,805 | 4,084 | |
25,983 | |||
TOTAL UTILITIES | 103,635 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,820,106) | 1,987,007 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 0.24% to 0.43% 12/29/16 to 2/16/17 (d) | |||
(Cost $680) | 680 | 680 | |
Shares | Value (000s) | ||
Money Market Funds - 4.0% | |||
Fidelity Cash Central Fund, 0.39% (e) | 50,071,740 | $50,082 | |
Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 30,138,329 | 30,144 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $80,220) | 80,226 | ||
TOTAL INVESTMENT PORTFOLIO - 102.2% | |||
(Cost $1,901,006) | 2,067,913 | ||
NET OTHER ASSETS (LIABILITIES) - (2.2)% | (44,971) | ||
NET ASSETS - 100% | $2,022,942 |
Futures Contracts | |||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||
Equity Index Contracts | |||
37 CME E-mini S&P MidCap 400 Index Contracts (United States) | Dec. 2016 | 6,020 | $80 |
The face value of futures purchased as a percentage of Net Assets is 0.3%
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 $271,000.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 | $156 |
Fidelity Securities Lending Cash Central Fund | 510 |
Total | $666 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $249,685 | $249,685 | $-- | $-- |
Consumer Staples | 77,318 | 77,318 | -- | -- |
Energy | 84,464 | 84,464 | -- | -- |
Financials | 338,541 | 330,493 | 8,048 | -- |
Health Care | 145,166 | 145,166 | -- | -- |
Industrials | 275,626 | 275,626 | -- | -- |
Information Technology | 346,033 | 346,032 | 1 | -- |
Materials | 150,488 | 150,488 | -- | -- |
Real Estate | 212,801 | 212,801 | -- | -- |
Telecommunication Services | 3,250 | 3,250 | -- | -- |
Utilities | 103,635 | 103,635 | -- | -- |
U.S. Government and Government Agency Obligations | 680 | -- | 680 | -- |
Money Market Funds | 80,226 | 80,226 | -- | -- |
Total Investments in Securities: | $2,067,913 | $2,059,184 | $8,729 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $80 | $80 | $-- | $-- |
Total Assets | $80 | $80 | $-- | $-- |
Total Derivative Instruments: | $80 | $80 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of November 30, 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 | |
(Amounts in thousands) | ||
Equity Risk | ||
Futures Contracts(a) | $80 | $0 |
Total Equity Risk | 80 | 0 |
Total Value of Derivatives | $80 | $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) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $29,999) — See accompanying schedule: Unaffiliated issuers (cost $1,820,786) | $1,987,687 | |
Fidelity Central Funds (cost $80,220) | 80,226 | |
Total Investments (cost $1,901,006) | $2,067,913 | |
Cash | 48 | |
Receivable for investments sold | 33,917 | |
Receivable for fund shares sold | 1,173 | |
Dividends receivable | 1,893 | |
Distributions receivable from Fidelity Central Funds | 32 | |
Prepaid expenses | 5 | |
Other receivables | 21 | |
Total assets | 2,105,002 | |
Liabilities | ||
Payable for investments purchased | $48,284 | |
Payable for fund shares redeemed | 2,188 | |
Accrued management fee | 521 | |
Distribution and service plan fees payable | 467 | |
Payable for daily variation margin for derivative instruments | 15 | |
Other affiliated payables | 378 | |
Other payables and accrued expenses | 63 | |
Collateral on securities loaned, at value | 30,144 | |
Total liabilities | 82,060 | |
Net Assets | $2,022,942 | |
Net Assets consist of: | ||
Paid in capital | $1,938,149 | |
Undistributed net investment income | 8,778 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (90,959) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 166,974 | |
Net Assets | $2,022,942 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($545,934 ÷ 16,479 shares) | $33.13 | |
Maximum offering price per share (100/94.25 of $33.13) | $35.15 | |
Class T: | ||
Net Asset Value and redemption price per share ($591,064 ÷ 17,777 shares) | $33.25 | |
Maximum offering price per share (100/96.50 of $33.25) | $34.46 | |
Class C: | ||
Net Asset Value and offering price per share ($140,118 ÷ 4,628 shares)(a) | $30.28 | |
Fidelity Stock Selector Mid Cap Fund: | ||
Net Asset Value, offering price and redemption price per share ($222,387 ÷ 6,441 shares) | $34.53 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($523,439 ÷ 15,130 shares) | $34.60 |
(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 | Year ended November 30, 2016 | |
Investment Income | ||
Dividends | $30,497 | |
Interest | 2 | |
Income from Fidelity Central Funds | 666 | |
Total income | 31,165 | |
Expenses | ||
Management fee | ||
Basic fee | $11,253 | |
Performance adjustment | (3,465) | |
Transfer agent fees | 4,266 | |
Distribution and service plan fees | 5,810 | |
Accounting and security lending fees | 629 | |
Custodian fees and expenses | 60 | |
Independent trustees' fees and expenses | 9 | |
Registration fees | 115 | |
Audit | 69 | |
Legal | 18 | |
Interest | 4 | |
Miscellaneous | 17 | |
Total expenses before reductions | 18,785 | |
Expense reductions | (157) | 18,628 |
Net investment income (loss) | 12,537 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $2) | (88,910) | |
Fidelity Central Funds | (1) | |
Foreign currency transactions | 3 | |
Futures contracts | 19 | |
Total net realized gain (loss) | (88,889) | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $7) | 160,810 | |
Assets and liabilities in foreign currencies | (1) | |
Futures contracts | (139) | |
Total change in net unrealized appreciation (depreciation) | 160,670 | |
Net gain (loss) | 71,781 | |
Net increase (decrease) in net assets resulting from operations | $84,318 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $12,537 | $4,877 |
Net realized gain (loss) | (88,889) | 274,812 |
Change in net unrealized appreciation (depreciation) | 160,670 | (264,502) |
Net increase (decrease) in net assets resulting from operations | 84,318 | 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) | (421,318) | (166,510) |
Total increase (decrease) in net assets | (380,175) | (154,076) |
Net Assets | ||
Beginning of period | 2,403,117 | 2,557,193 |
End of period | $2,022,942 | $2,403,117 |
Other Information | ||
Undistributed net investment income end of period | $8,778 | $1,101 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.01 | $31.80 | $28.37 | $22.16 | $19.15 |
Income from Investment Operations | |||||
Net investment income (loss)A | .20 | .08 | .08 | .10 | .09 |
Net realized and unrealized gain (loss) | 1.49 | .13 | 3.36 | 6.29 | 3.02 |
Total from investment operations | 1.69 | .21 | 3.44 | 6.39 | 3.11 |
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 | $33.13 | $32.01 | $31.80 | $28.37 | $22.16 |
Total ReturnB,C | 5.49% | .66% | 12.11% | 29.07% | 16.32% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .88% | .98% | 1.05% | .95% | .94% |
Expenses net of fee waivers, if any | .88% | .98% | 1.05% | .95% | .94% |
Expenses net of all reductions | .88% | .97% | 1.05% | .92% | .94% |
Net investment income (loss) | .64% | .24% | .26% | .39% | .41% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $546 | $593 | $652 | $692 | $593 |
Portfolio turnover rateF | 98% | 109% | 89% | 79%G | 72% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.16 | $32.02 | $28.63 | $22.36 | $19.30 |
Income from Investment Operations | |||||
Net investment income (loss)A | .13 | – | .01 | .04 | .05 |
Net realized and unrealized gain (loss) | 1.49 | .14 | 3.38 | 6.36 | 3.05 |
Total from investment operations | 1.62 | .14 | 3.39 | 6.40 | 3.10 |
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 | $33.25 | $32.16 | $32.02 | $28.63 | $22.36 |
Total ReturnB,C | 5.22% | .44% | 11.84% | 28.80% | 16.12% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.12% | 1.22% | 1.28% | 1.16% | 1.14% |
Expenses net of fee waivers, if any | 1.12% | 1.21% | 1.28% | 1.16% | 1.14% |
Expenses net of all reductions | 1.11% | 1.21% | 1.27% | 1.13% | 1.13% |
Net investment income (loss) | .41% | .01% | .03% | .17% | .22% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $591 | $681 | $794 | $817 | $755 |
Portfolio turnover rateF | 98% | 109% | 89% | 79%G | 72% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $29.48 | $29.51 | $26.52 | $20.73 | $17.95 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.03) | (.15) | (.14) | (.09) | (.06) |
Net realized and unrealized gain (loss) | 1.36 | .12 | 3.13 | 5.91 | 2.84 |
Total from investment operations | 1.33 | (.03) | 2.99 | 5.82 | 2.78 |
Distributions from net investment income | – | – | – | (.02) | – |
Distributions from net realized gain | (.53) | – | – | (.01) | – |
Total distributions | (.53) | – | – | (.03) | – |
Net asset value, end of period | $30.28 | $29.48 | $29.51 | $26.52 | $20.73 |
Total ReturnB,C | 4.71% | (.10)% | 11.27% | 28.09% | 15.49% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.63% | 1.74% | 1.80% | 1.69% | 1.68% |
Expenses net of fee waivers, if any | 1.63% | 1.73% | 1.80% | 1.69% | 1.68% |
Expenses net of all reductions | 1.63% | 1.73% | 1.80% | 1.67% | 1.68% |
Net investment income (loss) | (.11)% | (.51)% | (.49)% | (.36)% | (.33)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $140 | $155 | $172 | $172 | $141 |
Portfolio turnover rateF | 98% | 109% | 89% | 79%G | 72% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the contingent deferred sales charge.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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 Stock Selector Mid Cap Fund
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 | .28 | .16 | .16 | .17 | .09 |
Net realized and unrealized gain (loss) | 1.55 | .14 | 3.49 | 6.54 | 1.85 |
Total from investment operations | 1.83 | .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 | $34.53 | $33.34 | $33.14 | $29.56 | $23.14 |
Total ReturnD,E | 5.73% | .90% | 12.38% | 29.36% | 9.15% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .64% | .75% | .81% | .71% | .59%H |
Expenses net of fee waivers, if any | .64% | .74% | .81% | .71% | .59%H |
Expenses net of all reductions | .63% | .74% | .81% | .69% | .58%H |
Net investment income (loss) | .89% | .48% | .50% | .62% | .86%H |
Supplemental Data | |||||
Net assets, end of period (in millions) | $222 | $486 | $553 | $225 | $1 |
Portfolio turnover rateI | 98% | 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.39 | $33.22 | $29.64 | $23.14 | $20.01 |
Income from Investment Operations | |||||
Net investment income (loss)A | .28 | .13 | .16 | .18 | .15 |
Net realized and unrealized gain (loss) | 1.56 | .14 | 3.50 | 6.56 | 3.15 |
Total from investment operations | 1.84 | .27 | 3.66 | 6.74 | 3.30 |
Distributions from net investment income | (.11) | (.10) | (.08) | (.20) | (.17) |
Distributions from net realized gain | (.53) | – | – | (.04) | – |
Total distributions | (.63)B | (.10) | (.08) | (.24) | (.17) |
Net asset value, end of period | $34.60 | $33.39 | $33.22 | $29.64 | $23.14 |
Total ReturnC | 5.75% | .80% | 12.39% | 29.44% | 16.66% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .64% | .83% | .80% | .67% | .65% |
Expenses net of fee waivers, if any | .64% | .83% | .80% | .67% | .65% |
Expenses net of all reductions | .64% | .82% | .80% | .65% | .64% |
Net investment income (loss) | .88% | .39% | .51% | .66% | .71% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $523 | $479 | $371 | $214 | $172 |
Portfolio turnover rateF | 98% | 109% | 89% | 79%G | 72% |
A Calculated based on average shares outstanding during the period.
B 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.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, market discount, foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards, expiring 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 | $255,815 |
Gross unrealized depreciation | (93,227) |
Net unrealized appreciation (depreciation) on securities | $162,588 |
Tax Cost | $1,905,325 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $9,020 |
Capital loss carryforward | $(86,801) |
Net unrealized appreciation (depreciation) on securities and other investments | $162,576 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
No expiration | |
Short-term | $(52,961) |
Long-term | (33,840) |
Total capital loss carryforward | $(86,801) |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $3,959 | $ 2,753 |
Long-term Capital Gains | 39,216 | – |
Total | $43,175 | $ 2,753 |
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 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 $19 and a change in net unrealized appreciation (depreciation) of $(139) 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 $1,998,553 and $2,391,630, 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 annual management fee rate, including the performance adjustment, was .38% 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% | $1,353 | $–(a) |
Class T | .25% | .25% | 3,015 | – |
Class B | .75% | .25% | 41 | 31 |
Class C | .75% | .25% | 1,401 | 17 |
$5,810 | $48 |
(a) In the amount of less than five hundred dollars.
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 | $24 |
Class T | 14 |
Class B(a) | 1 |
Class C(a) | 4 |
$43 |
(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 applicable class were as follows:
Amount | % of Class-Level Average Net Assets | |
Class A | $1,132 | .21 |
Class T | 1,166 | .19 |
Class B | 11 | .28 |
Class C | 296 | .21 |
Fidelity Stock Selector Mid Cap Fund | 606 | .21 |
Class I | 1,055 | .22 |
$4,266 |
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 $76 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 $5 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 $1,596. 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 $510, including $17 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 $140 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 $17.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 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 | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 1,039 | 1,378 | $31,500 | $44,847 |
Reinvestment of distributions | 331 | – | 9,838 | – |
Shares redeemed | (3,402) | (3,369) | (104,169) | (109,342) |
Net increase (decrease) | (2,032) | (1,991) | $(62,831) | $(64,495) |
Class T | ||||
Shares sold | 1,180 | 1,615 | $36,250 | $53,028 |
Reinvestment of distributions | 356 | – | 10,639 | – |
Shares redeemed | (4,950) | (5,214) | (152,516) | (170,224) |
Net increase (decrease) | (3,414) | (3,599) | $(105,627) | $(117,196) |
Class B | ||||
Shares sold | 1 | 2 | $31 | $36 |
Reinvestment of distributions | 5 | – | 145 | – |
Shares redeemed | (331) | (219) | (9,046) | (6,583) |
Net increase (decrease) | (325) | (217) | $(8,870) | $(6,547) |
Class C | ||||
Shares sold | 114 | 234 | $3,221 | $7,096 |
Reinvestment of distributions | 90 | – | 2,469 | – |
Shares redeemed | (819) | (818) | (23,061) | (24,477) |
Net increase (decrease) | (615) | (584) | $(17,371) | $(17,381) |
Fidelity Stock Selector Mid Cap Fund | ||||
Shares sold | 1,163 | 939 | $37,438 | $31,733 |
Reinvestment of distributions | 300 | 49 | 9,281 | 1,651 |
Shares redeemed | (9,609) | (3,087) | (298,117) | (101,545) |
Net increase (decrease) | (8,146) | (2,099) | $(251,398) | $(68,161) |
Class I | ||||
Shares sold | 5,294 | 5,194 | $166,666 | $175,072 |
Reinvestment of distributions | 291 | 30 | 9,016 | 1,015 |
Shares redeemed | (4,795) | (2,041) | (150,903) | (68,817) |
Net increase (decrease) | 790 | 3,183 | $24,779 | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Stock Selector Mid Cap Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Stock Selector Mid Cap Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Stock Selector Mid Cap Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 18, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | .83% | |||
Actual | $1,000.00 | $1,067.00 | $4.29 | |
Hypothetical-C | $1,000.00 | $1,020.85 | $4.19 | |
Class T | 1.06% | |||
Actual | $1,000.00 | $1,065.70 | $5.47 | |
Hypothetical-C | $1,000.00 | $1,019.70 | $5.35 | |
Class C | 1.58% | |||
Actual | $1,000.00 | $1,062.80 | $8.15 | |
Hypothetical-C | $1,000.00 | $1,017.10 | $7.97 | |
Fidelity Stock Selector Mid Cap Fund | .54% | |||
Actual | $1,000.00 | $1,068.00 | $2.79 | |
Hypothetical-C | $1,000.00 | $1,022.30 | $2.73 | |
Class I | .58% | |||
Actual | $1,000.00 | $1,068.20 | $3.00 | |
Hypothetical-C | $1,000.00 | $1,022.10 | $2.93 |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Stock Selector Mid Cap Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Stock Selector Mid Cap Fund | ||||
Class A | 12/28/2016 | 12/27/2016 | $0.189 | $0.006 |
Class T | 12/28/2016 | 12/27/2016 | $0.106 | $0.006 |
Class C | 12/28/2016 | 12/27/2016 | $0.000 | $0.000 |
Fidelity Stock Selector Mid Cap Fund | 12/28/2016 | 12/27/2016 | $0.255 | $0.006 |
Class I | 12/28/2016 | 12/27/2016 | $0.273 | $0.006 |
Class A, Class I, and Fidelity Stock Selector Mid Cap Fund designate 100%, 100% and 95% of the dividends distributed in December 18th 2015 respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class I, and Fidelity Stock Selector Mid Cap Fund designate 100%, 100% and 95% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Stock Selector Mid Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Stock Selector Mid Cap Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190641699.jpg)
Fidelity Advisor Stock Selector Mid Cap Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190642045.jpg)
MC-ANN-0117
1.539186.119
Fidelity Advisor® Large Cap Fund Class A, Class T, Class C and Class I Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 4.71% | 14.23% | 7.04% |
Class T (incl. 3.50% sales charge) | 6.93% | 14.48% | 7.01% |
Class C (incl. contingent deferred sales charge) | 9.21% | 14.73% | 6.86% |
Class I | 11.34% | 15.92% | 8.00% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Large Cap Fund - Class A on November 30, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186134105_740.jpg)
Period Ending Values | ||
$19,739 | Fidelity Advisor® Large Cap Fund - Class A | |
$19,462 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.’s June 23 vote to exit the European Union – dubbed “Brexit” – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager Matthew Fruhan: The fund’s share classes (excluding sales charges, if applicable) gained roughly 10%-11% for the fiscal year, handily outpacing the benchmark S&P 500®. The attractively valued stocks that the fund favors fared well in a relatively hospitable market environment. The fund’s relative outperformance was largely attributable to positioning in the strong-performing energy and financials sectors. Within energy, the fund’s largest relative contributors included master limited partnership and non-benchmark holding Williams Partners and its majority-owned energy transportation company, Williams Companies. Both benefited from a better energy pricing environment this period. In financials, Bank of America and JPMorgan Chase – two of the fund’s biggest holdings – were among the largest relative contributors. Elsewhere, communications equipment manufacturer Qualcomm added value, as the stock bounced back from challenges early in the period. On the negative side, stock picking in health care detracted. Here, industrywide concerns about generic drug pricing weighed on Teva Pharmaceutical Industries, an Israeli drug manufacturer not found in the index. Greater scrutiny of U.S. drug pricing also hurt pharmaceutical distributor McKesson, whose stock dropped on weaker-than-expected earnings results.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Bank of America Corp. | 3.6 | 2.9 |
JPMorgan Chase & Co. | 3.5 | 3.6 |
Apple, Inc. | 3.1 | 2.6 |
Microsoft Corp. | 2.9 | 2.7 |
Citigroup, Inc. | 2.7 | 2.4 |
General Electric Co. | 2.5 | 2.9 |
Qualcomm, Inc. | 2.0 | 2.0 |
The Williams Companies, Inc. | 1.9 | 1.1 |
Comcast Corp. Class A | 1.9 | 1.7 |
State Street Corp. | 1.9 | 1.5 |
26.0 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 23.4 | 20.6 |
Information Technology | 19.0 | 21.4 |
Energy | 14.0 | 13.0 |
Health Care | 13.1 | 13.6 |
Industrials | 11.2 | 12.2 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016 * | ||
Stocks | 99.2% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.6% |
* Foreign investments - 8.8%
As of May 31, 2016 * | ||
Stocks | 99.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 9.2%
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 99.2% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 8.6% | |||
Automobiles - 0.1% | |||
Fiat Chrysler Automobiles NV | 105,100 | $812,035 | |
General Motors Co. | 9,400 | 324,582 | |
1,136,617 | |||
Hotels, Restaurants & Leisure - 0.3% | |||
Las Vegas Sands Corp. | 16,900 | 1,059,123 | |
Starbucks Corp. | 2,200 | 127,534 | |
Yum! Brands, Inc. | 44,738 | 2,835,942 | |
4,022,599 | |||
Household Durables - 0.6% | |||
KB Home | 298,200 | 4,723,488 | |
Taylor Morrison Home Corp. (a) | 140,900 | 2,791,229 | |
7,514,717 | |||
Leisure Products - 0.1% | |||
NJOY, Inc. (a)(b) | 417,589 | 4 | |
Polaris Industries, Inc. | 16,600 | 1,441,876 | |
1,441,880 | |||
Media - 5.3% | |||
AMC Networks, Inc. Class A (a) | 55,800 | 3,082,950 | |
Comcast Corp. Class A | 328,037 | 22,801,852 | |
Scripps Networks Interactive, Inc. Class A | 104,100 | 7,209,966 | |
Sinclair Broadcast Group, Inc. Class A | 86,100 | 2,802,555 | |
The Walt Disney Co. | 38,500 | 3,816,120 | |
Time Warner, Inc. | 202,459 | 18,589,785 | |
Viacom, Inc. Class B (non-vtg.) | 167,800 | 6,289,144 | |
64,592,372 | |||
Multiline Retail - 1.3% | |||
Target Corp. | 214,040 | 16,532,450 | |
Specialty Retail - 0.9% | |||
Lowe's Companies, Inc. | 158,179 | 11,159,528 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
NIKE, Inc. Class B | 2,300 | 115,161 | |
TOTAL CONSUMER DISCRETIONARY | 106,515,324 | ||
CONSUMER STAPLES - 5.1% | |||
Beverages - 1.4% | |||
Diageo PLC | 166,861 | 4,171,988 | |
The Coca-Cola Co. | 320,875 | 12,947,306 | |
17,119,294 | |||
Food & Staples Retailing - 1.2% | |||
Costco Wholesale Corp. | 18,100 | 2,716,991 | |
CVS Health Corp. | 101,711 | 7,820,559 | |
Kroger Co. | 10,300 | 332,690 | |
Walgreens Boots Alliance, Inc. | 27,255 | 2,309,316 | |
Whole Foods Market, Inc. | 52,800 | 1,604,592 | |
14,784,148 | |||
Food Products - 0.5% | |||
Amplify Snack Brands, Inc. (a) | 104,700 | 994,650 | |
Gores Holdings, Inc. (a) | 113,200 | 1,465,940 | |
Mead Johnson Nutrition Co. Class A | 50,300 | 3,626,127 | |
6,086,717 | |||
Household Products - 1.7% | |||
Procter & Gamble Co. | 262,252 | 21,625,300 | |
Tobacco - 0.3% | |||
Altria Group, Inc. | 5,800 | 370,794 | |
Reynolds American, Inc. | 63,100 | 3,413,710 | |
3,784,504 | |||
TOTAL CONSUMER STAPLES | 63,399,963 | ||
ENERGY - 13.8% | |||
Energy Equipment & Services - 1.4% | |||
Baker Hughes, Inc. | 91,900 | 5,911,927 | |
Ensco PLC Class A | 53,550 | 517,293 | |
National Oilwell Varco, Inc. | 148,532 | 5,549,156 | |
Oceaneering International, Inc. | 134,500 | 3,584,425 | |
Schlumberger Ltd. | 24,705 | 2,076,455 | |
17,639,256 | |||
Oil, Gas & Consumable Fuels - 12.4% | |||
Amyris, Inc. (a)(c) | 634,300 | 559,706 | |
Anadarko Petroleum Corp. | 71,300 | 4,930,395 | |
Apache Corp. | 201,510 | 13,289,585 | |
Cabot Oil & Gas Corp. | 190,800 | 4,220,496 | |
Cenovus Energy, Inc. | 432,900 | 6,693,466 | |
Chevron Corp. | 183,407 | 20,460,885 | |
ConocoPhillips Co. | 411,500 | 19,965,980 | |
Devon Energy Corp. | 15,800 | 763,614 | |
Golar LNG Ltd. | 61,700 | 1,505,480 | |
Imperial Oil Ltd. | 252,100 | 8,631,042 | |
Kinder Morgan, Inc. | 537,600 | 11,934,720 | |
Legacy Reserves LP | 97,600 | 187,880 | |
Noble Energy, Inc. | 18,200 | 694,512 | |
PDC Energy, Inc. (a) | 5,000 | 372,250 | |
SM Energy Co. | 99,700 | 3,974,042 | |
Suncor Energy, Inc. | 629,700 | 20,054,021 | |
Teekay Offshore Partners LP | 80,600 | 440,882 | |
The Williams Companies, Inc. | 753,729 | 23,139,480 | |
Williams Partners LP | 276,500 | 10,092,250 | |
151,910,686 | |||
TOTAL ENERGY | 169,549,942 | ||
FINANCIALS - 23.4% | |||
Banks - 15.4% | |||
Bank of America Corp. | 2,089,000 | 44,119,679 | |
Citigroup, Inc. | 589,897 | 33,264,292 | |
Comerica, Inc. | 127,900 | 8,153,625 | |
JPMorgan Chase & Co. | 543,868 | 43,601,898 | |
PNC Financial Services Group, Inc. | 63,985 | 7,072,902 | |
Regions Financial Corp. | 725,200 | 9,819,208 | |
Standard Chartered PLC (United Kingdom) (a) | 141,316 | 1,133,558 | |
SunTrust Banks, Inc. | 261,408 | 13,580,146 | |
U.S. Bancorp | 284,765 | 14,130,039 | |
Wells Fargo & Co. | 278,094 | 14,716,734 | |
189,592,081 | |||
Capital Markets - 6.2% | |||
CBOE Holdings, Inc. | 10,700 | 737,230 | |
Charles Schwab Corp. | 231,553 | 8,951,839 | |
Goldman Sachs Group, Inc. | 6,500 | 1,425,385 | |
KKR & Co. LP | 328,436 | 5,025,071 | |
Morgan Stanley | 383,043 | 15,842,658 | |
Northern Trust Corp. | 152,086 | 12,493,865 | |
State Street Corp. | 287,858 | 22,683,210 | |
The Blackstone Group LP | 338,400 | 8,710,416 | |
75,869,674 | |||
Diversified Financial Services - 0.4% | |||
KKR Renaissance Co-Invest LP unit (a)(b) | 29,500 | 4,817,350 | |
Insurance - 0.5% | |||
MetLife, Inc. | 84,485 | 4,647,520 | |
Principal Financial Group, Inc. | 36,700 | 2,117,223 | |
6,764,743 | |||
Thrifts & Mortgage Finance - 0.9% | |||
MGIC Investment Corp. (a) | 254,092 | 2,304,614 | |
Radian Group, Inc. | 595,068 | 8,664,190 | |
10,968,804 | |||
TOTAL FINANCIALS | 288,012,652 | ||
HEALTH CARE - 13.1% | |||
Biotechnology - 3.2% | |||
Alexion Pharmaceuticals, Inc. (a) | 49,005 | 6,007,523 | |
Alnylam Pharmaceuticals, Inc. (a) | 12,400 | 543,988 | |
Amgen, Inc. | 46,947 | 6,763,654 | |
Biogen, Inc. (a) | 25,800 | 7,587,006 | |
BioMarin Pharmaceutical, Inc. (a) | 28,300 | 2,423,329 | |
Celldex Therapeutics, Inc. (a) | 5,100 | 19,431 | |
Genocea Biosciences, Inc. (a) | 18,400 | 73,968 | |
Gilead Sciences, Inc. | 68,600 | 5,055,820 | |
Insmed, Inc. (a) | 63,764 | 870,379 | |
Intercept Pharmaceuticals, Inc. (a) | 42,831 | 4,331,071 | |
Regeneron Pharmaceuticals, Inc. (a) | 2,400 | 910,176 | |
Spark Therapeutics, Inc. (a) | 22,400 | 1,232,224 | |
TESARO, Inc. (a) | 1,300 | 176,397 | |
Vertex Pharmaceuticals, Inc. (a) | 42,800 | 3,492,908 | |
Windtree Therapeutics, Inc. (a)(c) | 38,252 | 55,465 | |
39,543,339 | |||
Health Care Equipment & Supplies - 3.2% | |||
Abbott Laboratories | 113,425 | 4,318,090 | |
Alere, Inc. (a) | 179,700 | 7,137,684 | |
Boston Scientific Corp. (a) | 723,286 | 14,798,432 | |
Medtronic PLC | 98,800 | 7,213,388 | |
NxStage Medical, Inc. (a) | 101,800 | 2,516,496 | |
Zeltiq Aesthetics, Inc. (a) | 3,200 | 140,832 | |
Zimmer Biomet Holdings, Inc. | 36,700 | 3,738,262 | |
39,863,184 | |||
Health Care Providers & Services - 1.6% | |||
Anthem, Inc. | 20,200 | 2,879,106 | |
Cigna Corp. | 38,800 | 5,227,912 | |
Express Scripts Holding Co. (a) | 49,610 | 3,764,407 | |
McKesson Corp. | 54,596 | 7,851,451 | |
19,722,876 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B(a) | 34,700 | 161,355 | |
Life Sciences Tools & Services - 0.4% | |||
Agilent Technologies, Inc. | 110,200 | 4,846,596 | |
Pharmaceuticals - 4.7% | |||
Allergan PLC | 11,329 | 2,201,225 | |
AstraZeneca PLC sponsored ADR | 61,100 | 1,597,154 | |
Bayer AG | 1,200 | 113,008 | |
Bristol-Myers Squibb Co. | 125,300 | 7,071,932 | |
GlaxoSmithKline PLC sponsored ADR | 418,929 | 15,831,327 | |
Jazz Pharmaceuticals PLC (a) | 45,507 | 4,715,890 | |
Johnson & Johnson | 101,663 | 11,315,092 | |
Novartis AG sponsored ADR | 1,400 | 96,264 | |
Sanofi SA | 12,285 | 990,127 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 309,691 | 11,675,351 | |
TherapeuticsMD, Inc. (a) | 365,100 | 2,168,694 | |
57,776,064 | |||
TOTAL HEALTH CARE | 161,913,414 | ||
INDUSTRIALS - 11.2% | |||
Aerospace & Defense - 1.5% | |||
General Dynamics Corp. | 7,800 | 1,367,730 | |
The Boeing Co. | 53,863 | 8,109,613 | |
United Technologies Corp. | 78,772 | 8,485,320 | |
17,962,663 | |||
Air Freight & Logistics - 1.3% | |||
C.H. Robinson Worldwide, Inc. | 9,959 | 745,431 | |
FedEx Corp. | 25,700 | 4,925,919 | |
United Parcel Service, Inc. Class B | 91,975 | 10,661,742 | |
16,333,092 | |||
Building Products - 0.1% | |||
Tyco International Ltd. | 31,387 | 1,411,787 | |
Commercial Services & Supplies - 0.1% | |||
Stericycle, Inc. (a) | 20,500 | 1,495,885 | |
Electrical Equipment - 0.8% | |||
AMETEK, Inc. | 120,130 | 5,688,156 | |
Hubbell, Inc. Class B | 22,782 | 2,557,963 | |
Melrose Industries PLC | 862,740 | 1,978,111 | |
10,224,230 | |||
Industrial Conglomerates - 2.5% | |||
General Electric Co. | 1,015,744 | 31,244,285 | |
Machinery - 1.5% | |||
Caterpillar, Inc. | 5,600 | 535,136 | |
Colfax Corp. (a) | 26,300 | 989,143 | |
Deere & Co. | 44,400 | 4,448,880 | |
Flowserve Corp. | 67,700 | 3,212,365 | |
Ingersoll-Rand PLC | 32,983 | 2,458,553 | |
Rexnord Corp. (a) | 180,900 | 3,979,800 | |
Wabtec Corp. | 22,200 | 1,879,674 | |
Xylem, Inc. | 7,187 | 370,705 | |
17,874,256 | |||
Professional Services - 0.4% | |||
Acacia Research Corp. (a) | 36,900 | 254,610 | |
IHS Markit Ltd. (a) | 24,336 | 874,636 | |
Verisk Analytics, Inc. (a) | 37,500 | 3,115,500 | |
4,244,746 | |||
Road & Rail - 3.0% | |||
Celadon Group, Inc. | 12,100 | 97,405 | |
CSX Corp. | 343,501 | 12,300,771 | |
Genesee & Wyoming, Inc. Class A (a) | 80,300 | 6,134,920 | |
J.B. Hunt Transport Services, Inc. | 63,700 | 6,075,069 | |
Kansas City Southern | 33,800 | 2,998,398 | |
Norfolk Southern Corp. | 36,858 | 3,923,903 | |
Old Dominion Freight Lines, Inc. (a) | 36,800 | 3,212,640 | |
Union Pacific Corp. | 19,200 | 1,945,536 | |
36,688,642 | |||
Trading Companies & Distributors - 0.0% | |||
United Rentals, Inc. (a) | 2,500 | 252,775 | |
TOTAL INDUSTRIALS | 137,732,361 | ||
INFORMATION TECHNOLOGY - 19.0% | |||
Communications Equipment - 1.6% | |||
Cisco Systems, Inc. | 666,554 | 19,876,640 | |
Internet Software & Services - 3.8% | |||
Alphabet, Inc.: | |||
Class A (a) | 26,856 | 20,837,033 | |
Class C (a) | 23,137 | 17,538,771 | |
Facebook, Inc. Class A (a) | 63,500 | 7,519,670 | |
45,895,474 | |||
IT Services - 4.1% | |||
Cognizant Technology Solutions Corp. Class A (a) | 40,784 | 2,246,383 | |
First Data Corp. Class A (a) | 321,730 | 4,687,606 | |
MasterCard, Inc. Class A | 130,600 | 13,347,320 | |
Paychex, Inc. | 115,622 | 6,815,917 | |
PayPal Holdings, Inc. (a) | 61,800 | 2,427,504 | |
Unisys Corp. (a)(c) | 306,587 | 4,552,817 | |
Visa, Inc. Class A | 210,920 | 16,308,334 | |
50,385,881 | |||
Semiconductors & Semiconductor Equipment - 2.1% | |||
Maxim Integrated Products, Inc. | 19,900 | 781,473 | |
Qualcomm, Inc. | 370,950 | 25,272,824 | |
26,054,297 | |||
Software - 3.9% | |||
Adobe Systems, Inc. (a) | 38,310 | 3,938,651 | |
Autodesk, Inc. (a) | 77,481 | 5,625,895 | |
Microsoft Corp. | 599,854 | 36,147,202 | |
Mobileye NV (a) | 34,800 | 1,295,604 | |
Salesforce.com, Inc. (a) | 17,100 | 1,231,200 | |
48,238,552 | |||
Technology Hardware, Storage & Peripherals - 3.5% | |||
Apple, Inc. | 343,321 | 37,943,837 | |
Western Digital Corp. | 77,500 | 4,933,650 | |
42,877,487 | |||
TOTAL INFORMATION TECHNOLOGY | 233,328,331 | ||
MATERIALS - 3.3% | |||
Chemicals - 2.6% | |||
CF Industries Holdings, Inc. | 110,700 | 3,203,658 | |
E.I. du Pont de Nemours & Co. | 37,015 | 2,724,674 | |
Intrepid Potash, Inc. (a) | 271,760 | 372,311 | |
LyondellBasell Industries NV Class A | 49,800 | 4,497,936 | |
Monsanto Co. | 109,617 | 11,258,762 | |
Potash Corp. of Saskatchewan, Inc. | 311,400 | 5,679,521 | |
W.R. Grace & Co. | 56,600 | 3,693,716 | |
31,430,578 | |||
Containers & Packaging - 0.5% | |||
WestRock Co. | 124,089 | 6,353,357 | |
Metals & Mining - 0.2% | |||
Freeport-McMoRan, Inc. | 171,400 | 2,630,990 | |
TOTAL MATERIALS | 40,414,925 | ||
REAL ESTATE - 0.1% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
American Tower Corp. | 2,300 | 235,221 | |
Crown Castle International Corp. | 4,100 | 342,186 | |
Public Storage | 4,200 | 879,060 | |
1,456,467 | |||
TELECOMMUNICATION SERVICES - 0.7% | |||
Diversified Telecommunication Services - 0.7% | |||
Verizon Communications, Inc. | 165,394 | 8,253,161 | |
UTILITIES - 0.9% | |||
Electric Utilities - 0.7% | |||
Exelon Corp. | 267,400 | 8,693,174 | |
Independent Power and Renewable Electricity Producers - 0.2% | |||
Dynegy, Inc. (a) | 258,400 | 2,235,160 | |
TOTAL UTILITIES | 10,928,334 | ||
TOTAL COMMON STOCKS | |||
(Cost $969,556,885) | 1,221,504,874 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
ENERGY - 0.0% | |||
Oil, Gas & Consumable Fuels - 0.0% | |||
Amyris, Inc. 9.5% 4/15/19 pay-in-kind (Cost $676,000) | 676,000 | 469,398 | |
Shares | Value | ||
Other - 0.2% | |||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) unit (b)(d) | |||
(Cost $2,201,072) | 2,201,072 | 2,201,072 | |
Money Market Funds - 0.8% | |||
Fidelity Cash Central Fund, 0.39% (e) | 6,460,604 | 6,461,896 | |
Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 2,966,500 | 2,967,094 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $9,428,656) | 9,428,990 | ||
TOTAL INVESTMENT PORTFOLIO - 100.2% | |||
(Cost $981,862,613) | 1,233,604,334 | ||
NET OTHER ASSETS (LIABILITIES) - (0.2)% | (2,700,869) | ||
NET ASSETS - 100% | $1,230,903,465 |
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 $7,018,426 or 0.6% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 |
Utica Shale Drilling Program (non-operating revenue interest) unit | 10/5/16 - 11/4/16 | $2,201,072 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $11,491 |
Fidelity Securities Lending Cash Central Fund | 206,735 |
Total | $218,226 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $106,515,324 | $106,515,320 | $-- | $4 |
Consumer Staples | 63,399,963 | 59,227,975 | 4,171,988 | -- |
Energy | 169,549,942 | 169,549,942 | -- | -- |
Financials | 288,012,652 | 283,195,302 | -- | 4,817,350 |
Health Care | 161,913,414 | 160,810,279 | 1,103,135 | -- |
Industrials | 137,732,361 | 137,732,361 | -- | -- |
Information Technology | 233,328,331 | 233,328,331 | -- | -- |
Materials | 40,414,925 | 40,414,925 | -- | -- |
Real Estate | 1,456,467 | 1,456,467 | -- | -- |
Telecommunication Services | 8,253,161 | 8,253,161 | -- | -- |
Utilities | 10,928,334 | 10,928,334 | -- | -- |
Corporate Bonds | 469,398 | -- | 469,398 | -- |
Other | 2,201,072 | -- | -- | 2,201,072 |
Money Market Funds | 9,428,990 | 9,428,990 | -- | -- |
Total Investments in Securities: | $1,233,604,334 | $1,220,841,387 | $5,744,521 | $7,018,426 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2016 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $2,828,455) — See accompanying schedule: Unaffiliated issuers (cost $972,433,957) | $1,224,175,344 | |
Fidelity Central Funds (cost $9,428,656) | 9,428,990 | |
Total Investments (cost $981,862,613) | $1,233,604,334 | |
Receivable for investments sold | 11,304,105 | |
Receivable for fund shares sold | 2,165,631 | |
Dividends receivable | 2,516,337 | |
Interest receivable | 8,292 | |
Distributions receivable from Fidelity Central Funds | 11,031 | |
Prepaid expenses | 2,739 | |
Other receivables | 1,363 | |
Total assets | 1,249,613,832 | |
Liabilities | ||
Payable for investments purchased | $5,790,778 | |
Payable for fund shares redeemed | 8,927,775 | |
Accrued management fee | 440,529 | |
Distribution and service plan fees payable | 297,686 | |
Other affiliated payables | 226,260 | |
Other payables and accrued expenses | 60,864 | |
Collateral on securities loaned, at value | 2,966,475 | |
Total liabilities | 18,710,367 | |
Net Assets | $1,230,903,465 | |
Net Assets consist of: | ||
Paid in capital | $963,994,771 | |
Undistributed net investment income | 12,332,373 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 2,839,962 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 251,736,359 | |
Net Assets | $1,230,903,465 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($455,182,009 ÷ 15,039,725 shares) | $30.27 | |
Maximum offering price per share (100/94.25 of $30.27) | $32.12 | |
Class T: | ||
Net Asset Value and redemption price per share ($173,118,620 ÷ 5,738,964 shares) | $30.17 | |
Maximum offering price per share (100/96.50 of $30.17) | $31.26 | |
Class C: | ||
Net Asset Value and offering price per share ($169,524,227 ÷ 6,145,578 shares)(a) | $27.58 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($433,078,609 ÷ 13,716,623 shares) | $31.57 |
(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
Year ended November 30, 2016 | ||
Investment Income | ||
Dividends | $25,556,904 | |
Interest | 64,144 | |
Income from Fidelity Central Funds | 218,226 | |
Total income | 25,839,274 | |
Expenses | ||
Management fee | ||
Basic fee | $6,540,718 | |
Performance adjustment | (1,603,312) | |
Transfer agent fees | 2,392,494 | |
Distribution and service plan fees | 3,546,915 | |
Accounting and security lending fees | 386,921 | |
Custodian fees and expenses | 53,012 | |
Independent trustees' fees and expenses | 5,238 | |
Registration fees | 86,767 | |
Audit | 60,160 | |
Legal | 8,298 | |
Interest | 501 | |
Miscellaneous | 10,420 | |
Total expenses before reductions | 11,488,132 | |
Expense reductions | (29,163) | 11,458,969 |
Net investment income (loss) | 14,380,305 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 7,393,539 | |
Fidelity Central Funds | 2,256 | |
Foreign currency transactions | 8,497 | |
Total net realized gain (loss) | 7,404,292 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 95,980,291 | |
Assets and liabilities in foreign currencies | (252) | |
Total change in net unrealized appreciation (depreciation) | 95,980,039 | |
Net gain (loss) | 103,384,331 | |
Net increase (decrease) in net assets resulting from operations | $117,764,636 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2016 | Year ended November 30, 2015 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $14,380,305 | $11,443,757 |
Net realized gain (loss) | 7,404,292 | 29,727,618 |
Change in net unrealized appreciation (depreciation) | 95,980,039 | (64,007,130) |
Net increase (decrease) in net assets resulting from operations | 117,764,636 | (22,835,755) |
Distributions to shareholders from net investment income | (10,152,553) | (5,828,260) |
Distributions to shareholders from net realized gain | (28,234,872) | (37,026,970) |
Total distributions | (38,387,425) | (42,855,230) |
Share transactions - net increase (decrease) | (180,256,330) | 119,504,310 |
Total increase (decrease) in net assets | (100,879,119) | 53,813,325 |
Net Assets | ||
Beginning of period | 1,331,782,584 | 1,277,969,259 |
End of period | $1,230,903,465 | $1,331,782,584 |
Other Information | ||
Undistributed net investment income end of period | $12,332,373 | $9,266,812 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Large Cap Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.12 | $29.60 | $28.11 | $20.43 | $17.57 |
Income from Investment Operations | |||||
Net investment income (loss)A | .34 | .25 | .20 | .16 | .15 |
Net realized and unrealized gain (loss) | 2.64 | (.74) | 3.45 | 7.61 | 3.30 |
Total from investment operations | 2.98 | (.49) | 3.65 | 7.77 | 3.45 |
Distributions from net investment income | (.23) | (.14) | (.22) | (.02) | (.18) |
Distributions from net realized gain | (.60) | (.85) | (1.94) | (.07) | (.41) |
Total distributions | (.83) | (.99) | (2.16) | (.09) | (.59) |
Net asset value, end of period | $30.27 | $28.12 | $29.60 | $28.11 | $20.43 |
Total ReturnB,C | 11.09% | (1.57)% | 14.13% | 38.16% | 19.69% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .92% | 1.15% | 1.30% | 1.26% | 1.25% |
Expenses net of fee waivers, if any | .92% | 1.15% | 1.25% | 1.26% | 1.25% |
Expenses net of all reductions | .91% | 1.15% | 1.25% | 1.24% | 1.24% |
Net investment income (loss) | 1.25% | .90% | .72% | .68% | .76% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $455,182 | $469,026 | $414,421 | $214,686 | $123,303 |
Portfolio turnover rateF | 28% | 31% | 28% | 54% | 59% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Large Cap Fund Class T
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.02 | $29.50 | $28.02 | $20.41 | $17.51 |
Income from Investment Operations | |||||
Net investment income (loss)A | .27 | .18 | .13 | .10 | .10 |
Net realized and unrealized gain (loss) | 2.64 | (.74) | 3.44 | 7.59 | 3.29 |
Total from investment operations | 2.91 | (.56) | 3.57 | 7.69 | 3.39 |
Distributions from net investment income | (.16) | (.07) | (.15) | (.01) | (.10) |
Distributions from net realized gain | (.60) | (.85) | (1.94) | (.07) | (.39) |
Total distributions | (.76) | (.92) | (2.09) | (.08) | (.49) |
Net asset value, end of period | $30.17 | $28.02 | $29.50 | $28.02 | $20.41 |
Total ReturnB,C | 10.81% | (1.84)% | 13.83% | 37.82% | 19.39% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.18% | 1.41% | 1.56% | 1.51% | 1.49% |
Expenses net of fee waivers, if any | 1.18% | 1.41% | 1.50% | 1.51% | 1.49% |
Expenses net of all reductions | 1.18% | 1.41% | 1.50% | 1.49% | 1.49% |
Net investment income (loss) | .99% | .63% | .47% | .42% | .52% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $173,119 | $177,560 | $170,613 | $114,864 | $76,151 |
Portfolio turnover rateF | 28% | 31% | 28% | 54% | 59% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Large Cap Fund Class C
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $25.70 | $27.21 | $26.07 | $19.08 | $16.41 |
Income from Investment Operations | |||||
Net investment income (loss)A | .12 | .04 | (.01) | (.02) | –B |
Net realized and unrealized gain (loss) | 2.40 | (.69) | 3.19 | 7.08 | 3.09 |
Total from investment operations | 2.52 | (.65) | 3.18 | 7.06 | 3.09 |
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 | $27.58 | $25.70 | $27.21 | $26.07 | $19.08 |
Total ReturnC,D | 10.21% | (2.33)% | 13.31% | 37.14% | 18.83% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.67% | 1.90% | 2.05% | 2.00% | 2.00% |
Expenses net of fee waivers, if any | 1.67% | 1.90% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 1.67% | 1.90% | 2.00% | 1.99% | 1.99% |
Net investment income (loss) | .49% | .14% | (.03)% | (.07)% | .01% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $169,524 | $181,957 | $168,763 | $67,780 | $28,856 |
Portfolio turnover rateG | 28% | 31% | 28% | 54% | 59% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $29.30 | $30.78 | $29.03 | $21.03 | $18.13 |
Income from Investment Operations | |||||
Net investment income (loss)A | .43 | .34 | .28 | .24 | .22 |
Net realized and unrealized gain (loss) | 2.74 | (.78) | 3.59 | 7.85 | 3.40 |
Total from investment operations | 3.17 | (.44) | 3.87 | 8.09 | 3.62 |
Distributions from net investment income | (.30) | (.20) | (.18) | (.02) | (.31) |
Distributions from net realized gain | (.60) | (.85) | (1.94) | (.07) | (.41) |
Total distributions | (.90) | (1.04)B | (2.12) | (.09) | (.72) |
Net asset value, end of period | $31.57 | $29.30 | $30.78 | $29.03 | $21.03 |
Total ReturnC | 11.34% | (1.33)% | 14.43% | 38.62% | 20.10% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .65% | .89% | 1.04% | .95% | .91% |
Expenses net of fee waivers, if any | .65% | .89% | 1.00% | .95% | .91% |
Expenses net of all reductions | .65% | .89% | 1.00% | .94% | .91% |
Net investment income (loss) | 1.51% | 1.15% | .97% | .98% | 1.10% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $433,079 | $498,404 | $515,771 | $242,897 | $1,071,491 |
Portfolio turnover rateF | 28% | 31% | 28% | 54% | 59% |
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 would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 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 shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015, through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to 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 | $303,664,707 |
Gross unrealized depreciation | (59,211,036) |
Net unrealized appreciation (depreciation) on securities | $244,453,671 |
Tax Cost | $989,150,663 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $12,832,031 |
Undistributed long-term capital gain | $10,128,013 |
Net unrealized appreciation (depreciation) on securities and other investments | $243,948,664 |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income�� | $10,152,553 | $ 11,250,007 |
Long-term Capital Gains | 28,234,872 | 31,605,223 |
Total | $38,387,425 | $ 42,855,230 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $2,201,072 in this Subsidiary, representing .18% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $331,957,076 and $530,363,359, 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 annual 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% | $1,083,181 | $36,682 |
Class T | .25% | .25% | 828,454 | - |
Class B | .75% | .25% | 19,965 | 15,071 |
Class C | .75% | .25% | 1,615,315 | 245,619 |
$3,546,915 | $297,372 |
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 | $120,103 |
Class T | 18,179 |
Class B(a) | 280 |
Class C(a) | 23,411 |
$161,973 |
(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 | |
Class A | $873,660 | .20 |
Class T | 358,845 | .22 |
Class B | 5,577 | .28 |
Class C | 337,216 | .21 |
Class I | 817,196 | .19 |
$2,392,494 |
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 $11,397 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 $3,069 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 $206,735, 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 $19,957 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 $9,206.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 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 | 3,809,662 | 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 | $28,234,872 | $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 | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 3,471,102 | 6,318,731 | $92,742,592 | $179,805,007 |
Reinvestment of distributions | 506,726 | 488,972 | 13,174,015 | 13,432,055 |
Shares redeemed | (5,617,229) | (4,126,969) | (150,837,777) | (116,797,696) |
Net increase (decrease) | (1,639,401) | 2,680,734 | $(44,921,170) | $76,439,366 |
Class T | ||||
Shares sold | 838,207 | 1,467,747 | $22,424,576 | $41,749,475 |
Reinvestment of distributions | 178,870 | 188,811 | 4,645,631 | 5,182,860 |
Shares redeemed | (1,614,297) | (1,103,079) | (43,435,570) | (31,222,052) |
Net increase (decrease) | (597,220) | 553,479 | $(16,365,363) | $15,710,283 |
Class B | ||||
Shares sold | 1,731 | 8,184 | $41,950 | $216,847 |
Reinvestment of distributions | 4,310 | 8,005 | 104,666 | 205,898 |
Shares redeemed | (191,235) | (136,299) | (4,624,336) | (3,621,450) |
Net increase (decrease) | (185,194) | (120,110) | $(4,477,720) | $(3,198,705) |
Class C | ||||
Shares sold | 967,123 | 2,311,592 | $24,084,991 | $60,389,767 |
Reinvestment of distributions | 161,472 | 182,523 | 3,852,174 | 4,616,012 |
Shares redeemed | (2,063,532) | (1,616,562) | (50,478,565) | (41,900,226) |
Net increase (decrease) | (934,937) | 877,553 | $(22,541,400) | $23,105,553 |
Class I | ||||
Shares sold | 3,784,048 | 7,784,685 | $106,099,731 | $230,249,704 |
Reinvestment of distributions | 510,015 | 563,541 | 13,796,737 | 16,089,097 |
Shares redeemed | (7,590,256) | (8,094,060) | (211,847,145) | (238,890,988) |
Net increase (decrease) | (3,296,193) | 254,166 | $(91,950,677) | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Large Cap Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Large Cap Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Large Cap Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | .89% | |||
Actual | $1,000.00 | $1,104.30 | $4.68 | |
Hypothetical-C | $1,000.00 | $1,020.55 | $4.50 | |
Class T | 1.16% | |||
Actual | $1,000.00 | $1,103.10 | $6.10 | |
Hypothetical-C | $1,000.00 | $1,019.20 | $5.86 | |
Class C | 1.65% | |||
Actual | $1,000.00 | $1,100.10 | $8.66 | |
Hypothetical-C | $1,000.00 | $1,016.75 | $8.32 | |
Class I | .63% | |||
Actual | $1,000.00 | $1,105.80 | $3.32 | |
Hypothetical-C | $1,000.00 | $1,021.85 | $3.18 |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Large Cap Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Large Cap Fund | ||||
Class A | 12/28/16 | 12/27/16 | $0.334 | $0.273 |
Class T | 12/28/16 | 12/27/16 | $0.256 | $0.273 |
Class C | 12/28/16 | 12/27/16 | $0.152 | $0.273 |
Class I | 12/28/16 | 12/27/16 | $0.404 | $0.273 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2016, $11,237,370, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class T, Class C, and Class I designates100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class C, and Class I designates 100% of the, dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Large Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Large Cap Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190630623.jpg)
Fidelity Advisor Large Cap Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190630833.jpg)
LC-ANN-0117
1.539156.119
Fidelity Advisor® Value Strategies Fund Class A, Class T, Class C and Class I Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (1.67)% | 11.56% | 4.96% |
Class T (incl. 3.50% sales charge) | 0.46% | 11.87% | 5.00% |
Class C (incl. contingent deferred sales charge) | 2.49% | 12.04% | 4.78% |
Class I | 4.57% | 13.19% | 5.89% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Value Strategies Fund - Class A on November 30, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Value Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186133255_740.jpg)
Period Ending Values | ||
$16,223 | Fidelity Advisor® Value Strategies Fund - Class A | |
$20,622 | Russell Midcap® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.'s June 23 vote to exit the European Union – dubbed "Brexit" – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Thomas Soviero, Portfolio Manager until September 14, 2016, and his successor, Portfolio Manager Matthew Friedman: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) posted gains in the range of 3% to 5%, significantly lagging the 14.25% return of the benchmark Russell Midcap Value Index. Security selection was by far the biggest driver of the fund's disappointing relative result, as some of our largest holdings remained pressured. Sector allocations also hurt. Individual detractors included Netherlands-based LyondellBasell Industries, which saw low oil prices wipe out the relative cost advantage it had enjoyed from using natural-gas derivatives in its chemicals-related products. Shares of Citigroup and Bank of America also detracted from relative performance, due to continued-low interest rates, increased regulation and sluggish economic growth. All three stocks were large, non-benchmark positions for much of the period. Citigroup and Bank of America were not held at period end, and Lyondell was notably reduced. By contrast, the timely purchase of consumer finance company Synchrony Financial helped relative performance, as better-than-expected revenues, write-offs that were not as bad as feared and a post-election rally in financials lifted the stock.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Edison International | 3.1 | 0.0 |
Sempra Energy | 3.0 | 1.3 |
Synchrony Financial | 2.7 | 0.0 |
U.S. Bancorp | 2.6 | 3.3 |
American Tower Corp. | 2.4 | 0.0 |
American Electric Power Co., Inc. | 2.0 | 0.0 |
Wells Fargo & Co. | 2.0 | 1.3 |
Essex Property Trust, Inc. | 1.9 | 0.0 |
Extra Space Storage, Inc. | 1.9 | 0.0 |
E.I. du Pont de Nemours & Co. | 1.8 | 0.0 |
23.4 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 18.3 | 18.0 |
Consumer Discretionary | 12.5 | 15.6 |
Information Technology | 11.8 | 3.9 |
Real Estate | 11.2 | 0.0 |
Industrials | 10.2 | 9.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016 * | ||
Stocks | 99.0% | |
Convertible Securities | 0.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
* Foreign investments - 16.3%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.5% | |||
Auto Components - 1.4% | |||
Delphi Automotive PLC | 289,177 | $18,507 | |
Diversified Consumer Services - 3.3% | |||
H&R Block, Inc. | 533,002 | 11,811 | |
Houghton Mifflin Harcourt Co. (a) | 1,204,356 | 13,308 | |
Service Corp. International | 760,450 | 20,525 | |
45,644 | |||
Hotels, Restaurants & Leisure - 1.0% | |||
Wyndham Worldwide Corp. | 184,467 | 13,280 | |
Household Durables - 0.8% | |||
Tupperware Brands Corp. | 198,997 | 11,032 | |
Internet & Direct Marketing Retail - 1.2% | |||
Liberty Interactive Corp. QVC Group Series A (a) | 815,336 | 16,886 | |
Media - 4.2% | |||
DISH Network Corp. Class A (a) | 247,845 | 14,239 | |
Liberty Broadband Corp. Class C (a) | 130,715 | 9,321 | |
Sinclair Broadcast Group, Inc. Class A | 597,899 | 19,462 | |
Twenty-First Century Fox, Inc. Class A | 504,100 | 14,170 | |
57,192 | |||
Specialty Retail - 0.6% | |||
GameStop Corp. Class A | 313,213 | 7,733 | |
TOTAL CONSUMER DISCRETIONARY | 170,274 | ||
CONSUMER STAPLES - 2.8% | |||
Beverages - 0.9% | |||
Cott Corp. | 1,152,064 | 13,096 | |
Food & Staples Retailing - 1.2% | |||
Whole Foods Market, Inc. | 527,056 | 16,017 | |
Food Products - 0.7% | |||
Darling International, Inc. (a) | 718,222 | 9,703 | |
TOTAL CONSUMER STAPLES | 38,816 | ||
ENERGY - 7.2% | |||
Energy Equipment & Services - 1.5% | |||
Baker Hughes, Inc. | 309,730 | 19,925 | |
Oil, Gas & Consumable Fuels - 5.7% | |||
Anadarko Petroleum Corp. | 195,300 | 13,505 | |
Boardwalk Pipeline Partners, LP | 733,436 | 12,593 | |
ConocoPhillips Co. | 409,800 | 19,883 | |
GasLog Ltd. (b) | 694,861 | 10,909 | |
Teekay Corp. | 1,472,713 | 11,620 | |
Teekay Offshore Partners LP | 1,647,200 | 9,010 | |
77,520 | |||
TOTAL ENERGY | 97,445 | ||
FINANCIALS - 18.3% | |||
Banks - 4.6% | |||
U.S. Bancorp | 731,584 | 36,301 | |
Wells Fargo & Co. | 507,070 | 26,834 | |
63,135 | |||
Capital Markets - 4.6% | |||
Apollo Global Management LLC Class A | 763,750 | 14,710 | |
Legg Mason, Inc. | 511,517 | 16,317 | |
NorthStar Asset Management Group, Inc. | 1,470,900 | 21,710 | |
The Blackstone Group LP | 379,500 | 9,768 | |
62,505 | |||
Consumer Finance - 5.1% | |||
Discover Financial Services | 307,700 | 20,853 | |
OneMain Holdings, Inc. (a) | 580,900 | 11,833 | |
Synchrony Financial | 1,065,213 | 36,814 | |
69,500 | |||
Insurance - 4.0% | |||
Brown & Brown, Inc. | 368,286 | 15,965 | |
Chubb Ltd. | 130,082 | 16,650 | |
FNF Group | 673,759 | 21,520 | |
54,135 | |||
TOTAL FINANCIALS | 249,275 | ||
HEALTH CARE - 7.7% | |||
Biotechnology - 1.9% | |||
Amgen, Inc. | 65,700 | 9,465 | |
United Therapeutics Corp. (a) | 135,400 | 17,008 | |
26,473 | |||
Health Care Providers & Services - 2.9% | |||
Cigna Corp. | 103,446 | 13,938 | |
Envision Healthcare Holdings, Inc. (a) | 617,818 | 14,037 | |
Laboratory Corp. of America Holdings (a) | 89,478 | 11,261 | |
39,236 | |||
Pharmaceuticals - 2.9% | |||
Jazz Pharmaceuticals PLC (a) | 205,700 | 21,317 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 363,700 | 13,711 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 309,000 | 4,879 | |
39,907 | |||
TOTAL HEALTH CARE | 105,616 | ||
INDUSTRIALS - 10.2% | |||
Aerospace & Defense - 2.1% | |||
General Dynamics Corp. | 98,654 | 17,299 | |
KLX, Inc. (a) | 272,410 | 10,621 | |
27,920 | |||
Airlines - 1.2% | |||
Delta Air Lines, Inc. | 347,100 | 16,723 | |
Construction & Engineering - 1.3% | |||
AECOM (a) | 477,500 | 17,357 | |
Machinery - 2.9% | |||
Allison Transmission Holdings, Inc. | 640,875 | 21,258 | |
Ingersoll-Rand PLC | 247,900 | 18,478 | |
39,736 | |||
Trading Companies & Distributors - 2.7% | |||
AerCap Holdings NV (a) | 536,937 | 23,008 | |
Univar, Inc. (a) | 577,224 | 14,373 | |
37,381 | |||
TOTAL INDUSTRIALS | 139,117 | ||
INFORMATION TECHNOLOGY - 11.8% | |||
Communications Equipment - 1.3% | |||
CommScope Holding Co., Inc. (a) | 491,668 | 17,690 | |
Electronic Equipment & Components - 2.2% | |||
Flextronics International Ltd. (a) | 960,578 | 13,679 | |
TE Connectivity Ltd. | 232,881 | 15,752 | |
29,431 | |||
IT Services - 4.0% | |||
Cognizant Technology Solutions Corp. Class A (a) | 177,300 | 9,766 | |
Computer Sciences Corp. | 360,400 | 21,851 | |
First Data Corp. Class A (a) | 1,126,240 | 16,409 | |
Total System Services, Inc. | 138,900 | 6,837 | |
54,863 | |||
Semiconductors & Semiconductor Equipment - 4.3% | |||
Cree, Inc. (a) | 455,155 | 11,525 | |
Marvell Technology Group Ltd. | 930,591 | 13,345 | |
Qorvo, Inc. (a) | 249,300 | 13,315 | |
Qualcomm, Inc. | 300,400 | 20,466 | |
58,651 | |||
TOTAL INFORMATION TECHNOLOGY | 160,635 | ||
MATERIALS - 9.2% | |||
Chemicals - 7.5% | |||
CF Industries Holdings, Inc. | 568,453 | 16,451 | |
E.I. du Pont de Nemours & Co. | 340,800 | 25,086 | |
Eastman Chemical Co. | 305,934 | 22,982 | |
LyondellBasell Industries NV Class A | 204,292 | 18,452 | |
Westlake Chemical Corp. | 331,303 | 19,603 | |
102,574 | |||
Containers & Packaging - 0.9% | |||
Ball Corp. | 169,233 | 12,703 | |
Metals & Mining - 0.8% | |||
Compass Minerals International, Inc. | 128,831 | 9,991 | |
TOTAL MATERIALS | 125,268 | ||
REAL ESTATE - 11.2% | |||
Equity Real Estate Investment Trusts (REITs) - 9.6% | |||
American Tower Corp. | 314,308 | 32,144 | |
Equity Lifestyle Properties, Inc. | 151,300 | 10,505 | |
Essex Property Trust, Inc. | 119,682 | 25,842 | |
Extra Space Storage, Inc. | 367,128 | 25,758 | |
Outfront Media, Inc. | 933,804 | 23,541 | |
WP Glimcher, Inc. | 1,241,156 | 12,436 | |
130,226 | |||
Real Estate Management & Development - 1.6% | |||
CBRE Group, Inc. (a) | 767,400 | 22,285 | |
TOTAL REAL ESTATE | 152,511 | ||
UTILITIES - 8.1% | |||
Electric Utilities - 5.1% | |||
American Electric Power Co., Inc. | 458,342 | 27,065 | |
Edison International | 618,871 | 42,563 | |
69,628 | |||
Multi-Utilities - 3.0% | |||
Sempra Energy | 407,288 | 40,647 | |
TOTAL UTILITIES | 110,275 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,266,674) | 1,349,232 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.7% | |||
ENERGY - 0.7% | |||
Oil, Gas & Consumable Fuels - 0.7% | |||
Cobalt International Energy, Inc. 2.625% 12/1/19 (Cost $10,618) | 21,550 | 9,231 | |
Shares | Value (000s) | ||
Money Market Funds - 0.7% | |||
Fidelity Cash Central Fund, 0.39% (c) | 4,235,754 | 4,237 | |
Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 5,884,783 | 5,886 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $10,122) | 10,123 | ||
TOTAL INVESTMENT PORTFOLIO - 100.4% | |||
(Cost $1,287,414) | 1,368,586 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (5,476) | ||
NET ASSETS - 100% | $1,363,110 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $271 |
Fidelity Securities Lending Cash Central Fund | 351 |
Total | $622 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $170,274 | $170,274 | $-- | $-- |
Consumer Staples | 38,816 | 38,816 | -- | -- |
Energy | 97,445 | 97,445 | -- | -- |
Financials | 249,275 | 249,275 | -- | -- |
Health Care | 105,616 | 105,616 | -- | -- |
Industrials | 139,117 | 139,117 | -- | -- |
Information Technology | 160,635 | 160,635 | -- | -- |
Materials | 125,268 | 125,268 | -- | -- |
Real Estate | 152,511 | 152,511 | -- | -- |
Utilities | 110,275 | 110,275 | -- | -- |
Corporate Bonds | 9,231 | -- | 9,231 | -- |
Money Market Funds | 10,123 | 10,123 | -- | -- |
Total Investments in Securities: | $1,368,586 | $1,359,355 | $9,231 | $-- |
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 | 83.7% |
Netherlands | 3.1% |
Ireland | 2.9% |
Switzerland | 2.4% |
Bermuda | 1.8% |
Marshall Islands | 1.5% |
Bailiwick of Jersey | 1.4% |
Canada | 1.2% |
Israel | 1.0% |
Singapore | 1.0% |
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) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $6,059) — See accompanying schedule: Unaffiliated issuers (cost $1,277,292) | $1,358,463 | |
Fidelity Central Funds (cost $10,122) | 10,123 | |
Total Investments (cost $1,287,414) | $1,368,586 | |
Receivable for fund shares sold | 461 | |
Dividends receivable | 2,017 | |
Interest receivable | 283 | |
Distributions receivable from Fidelity Central Funds | 5 | |
Prepaid expenses | 3 | |
Other receivables | 15 | |
Total assets | 1,371,370 | |
Liabilities | ||
Payable for fund shares redeemed | $1,521 | |
Accrued management fee | 368 | |
Distribution and service plan fees payable | 185 | |
Other affiliated payables | 236 | |
Other payables and accrued expenses | 65 | |
Collateral on securities loaned, at value | 5,885 | |
Total liabilities | 8,260 | |
Net Assets | $1,363,110 | |
Net Assets consist of: | ||
Paid in capital | $1,035,708 | |
Undistributed net investment income | 15,960 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 230,270 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 81,172 | |
Net Assets | $1,363,110 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($203,077 ÷ 5,045.72 shares) | $40.25 | |
Maximum offering price per share (100/94.25 of $40.25) | $42.71 | |
Class T: | ||
Net Asset Value and redemption price per share ($262,710 ÷ 6,297.62 shares) | $41.72 | |
Maximum offering price per share (100/96.50 of $41.72) | $43.23 | |
Class C: | ||
Net Asset Value and offering price per share ($44,155 ÷ 1,219.92 shares)(a) | $36.19 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($712,725 ÷ 15,779.43 shares) | $45.17 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($67,671 ÷ 1,497.80 shares) | $45.18 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($72,772 ÷ 1,689.55 shares) | $43.07 |
(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 | Year ended November 30, 2016 | |
Investment Income | ||
Dividends | $26,032 | |
Interest | 5,557 | |
Income from Fidelity Central Funds | 622 | |
Total income | 32,211 | |
Expenses | ||
Management fee | ||
Basic fee | $7,534 | |
Performance adjustment | (2,910) | |
Transfer agent fees | 2,463 | |
Distribution and service plan fees | 2,281 | |
Accounting and security lending fees | 442 | |
Custodian fees and expenses | 33 | |
Independent trustees' fees and expenses | 6 | |
Registration fees | 159 | |
Audit | 68 | |
Legal | 5 | |
Interest | 2 | |
Miscellaneous | 12 | |
Total expenses before reductions | 10,095 | |
Expense reductions | (70) | 10,025 |
Net investment income (loss) | 22,186 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 391,640 | |
Fidelity Central Funds | 26 | |
Foreign currency transactions | 10 | |
Futures contracts | 735 | |
Total net realized gain (loss) | 392,411 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (369,931) | |
Total change in net unrealized appreciation (depreciation) | (369,931) | |
Net gain (loss) | 22,480 | |
Net increase (decrease) in net assets resulting from operations | $44,666 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $22,186 | $14,207 |
Net realized gain (loss) | 392,411 | 117,291 |
Change in net unrealized appreciation (depreciation) | (369,931) | (113,531) |
Net increase (decrease) in net assets resulting from operations | 44,666 | 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) | (80,508) | (175,423) |
Total increase (decrease) in net assets | (51,526) | (170,475) |
Net Assets | ||
Beginning of period | 1,414,636 | 1,585,111 |
End of period | $1,363,110 | $1,414,636 |
Other Information | ||
Undistributed net investment income end of period | $15,960 | $12,741 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.01 | $38.91 | $36.02 | $27.62 | $22.71 |
Income from Investment Operations | |||||
Net investment income (loss)A | .56 | .35 | .25 | .23 | –B |
Net realized and unrealized gain (loss) | 1.09 | .06 | 2.87 | 8.25 | 5.03 |
Total from investment operations | 1.65 | .41 | 3.12 | 8.48 | 5.03 |
Distributions from net investment income | (.40) | (.28)C | (.23) | (.08) | (.12) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.41) | (.31) | (.23) | (.08) | (.12) |
Net asset value, end of period | $40.25 | $39.01 | $38.91 | $36.02 | $27.62 |
Total ReturnD,E | 4.33% | 1.07% | 8.74% | 30.77% | 22.29% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .86% | .93% | .96% | 1.04% | 1.21% |
Expenses net of fee waivers, if any | .86% | .93% | .96% | 1.04% | 1.21% |
Expenses net of all reductions | .86% | .93% | .96% | 1.03% | 1.21% |
Net investment income (loss) | 1.48% | .89% | .68% | .73% | - %B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $203 | $215 | $233 | $243 | $203 |
Portfolio turnover rateH | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $40.40 | $40.28 | $37.28 | $28.58 | $23.48 |
Income from Investment Operations | |||||
Net investment income (loss)A | .49 | .28 | .18 | .18 | (.05)B |
Net realized and unrealized gain (loss) | 1.14 | .06 | 2.98 | 8.54 | 5.22 |
Total from investment operations | 1.63 | .34 | 3.16 | 8.72 | 5.17 |
Distributions from net investment income | (.30) | (.19)C | (.16) | (.02) | (.07) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.31) | (.22) | (.16) | (.02) | (.07) |
Net asset value, end of period | $41.72 | $40.40 | $40.28 | $37.28 | $28.58 |
Total ReturnD,E | 4.11% | .86% | 8.51% | 30.52% | 22.08% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.08% | 1.15% | 1.17% | 1.23% | 1.38% |
Expenses net of fee waivers, if any | 1.08% | 1.14% | 1.17% | 1.23% | 1.38% |
Expenses net of all reductions | 1.07% | 1.14% | 1.17% | 1.22% | 1.38% |
Net investment income (loss) | 1.27% | .68% | .47% | .54% | (.17)%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $263 | $294 | $324 | $335 | $283 |
Portfolio turnover rateH | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $35.12 | $35.07 | $32.52 | $25.06 | $20.64 |
Income from Investment Operations | |||||
Net investment income (loss)A | .24 | .05 | (.03) | (.01) | (.17)B |
Net realized and unrealized gain (loss) | .97 | .07 | 2.60 | 7.47 | 4.59 |
Total from investment operations | 1.21 | .12 | 2.57 | 7.46 | 4.42 |
Distributions from net investment income | (.13) | (.04)C | (.02) | – | – |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.14) | (.07) | (.02) | – | – |
Net asset value, end of period | $36.19 | $35.12 | $35.07 | $32.52 | $25.06 |
Total ReturnD,E | 3.49% | .33% | 7.91% | 29.77% | 21.41% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.63% | 1.70% | 1.72% | 1.78% | 1.95% |
Expenses net of fee waivers, if any | 1.63% | 1.69% | 1.72% | 1.78% | 1.95% |
Expenses net of all reductions | 1.63% | 1.69% | 1.72% | 1.77% | 1.95% |
Net investment income (loss) | .72% | .13% | (.08)% | (.02)% | (.75)%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $44 | $49 | $53 | $54 | $43 |
Portfolio turnover rateH | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $43.72 | $43.56 | $40.28 | $30.89 | $25.37 |
Income from Investment Operations | |||||
Net investment income (loss)A | .76 | .51 | .40 | .37 | .09B |
Net realized and unrealized gain (loss) | 1.21 | .07 | 3.21 | 9.20 | 5.62 |
Total from investment operations | 1.97 | .58 | 3.61 | 9.57 | 5.71 |
Distributions from net investment income | (.51) | (.39)C | (.33) | (.18) | (.19) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.52) | (.42) | (.33) | (.18) | (.19) |
Net asset value, end of period | $45.17 | $43.72 | $43.56 | $40.28 | $30.89 |
Total ReturnD | 4.64% | 1.35% | 9.05% | 31.14% | 22.69% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .56% | .67% | .69% | .73% | .89% |
Expenses net of fee waivers, if any | .56% | .67% | .69% | .73% | .89% |
Expenses net of all reductions | .55% | .66% | .69% | .72% | .89% |
Net investment income (loss) | 1.79% | 1.16% | .95% | 1.03% | .31%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $713 | $716 | $786 | $681 | $396 |
Portfolio turnover rateG | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $43.74 | $43.57 | $40.28 | $30.89 | $25.38 |
Income from Investment Operations | |||||
Net investment income (loss)A | .80 | .58 | .47 | .43 | .14B |
Net realized and unrealized gain (loss) | 1.22 | .07 | 3.20 | 9.18 | 5.61 |
Total from investment operations | 2.02 | .65 | 3.67 | 9.61 | 5.75 |
Distributions from net investment income | (.57) | (.45)C | (.38) | (.22) | (.24) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.58) | (.48) | (.38) | (.22) | (.24) |
Net asset value, end of period | $45.18 | $43.74 | $43.57 | $40.28 | $30.89 |
Total ReturnD | 4.76% | 1.51% | 9.21% | 31.34% | 22.93% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .44% | .51% | .53% | .58% | .71% |
Expenses net of fee waivers, if any | .44% | .51% | .53% | .58% | .71% |
Expenses net of all reductions | .43% | .51% | .53% | .57% | .71% |
Net investment income (loss) | 1.91% | 1.31% | 1.11% | 1.18% | .50%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $68 | $72 | $97 | $119 | $70 |
Portfolio turnover rateG | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.71 | $41.57 | $38.46 | $29.51 | $24.26 |
Income from Investment Operations | |||||
Net investment income (loss)A | .70 | .48 | .37 | .34 | .08B |
Net realized and unrealized gain (loss) | 1.15 | .08 | 3.06 | 8.79 | 5.37 |
Total from investment operations | 1.85 | .56 | 3.43 | 9.13 | 5.45 |
Distributions from net investment income | (.48) | (.39)C | (.32) | (.18) | (.20) |
Distributions from net realized gain | (.01) | (.03)C | – | – | – |
Total distributions | (.49) | (.42) | (.32) | (.18) | (.20) |
Net asset value, end of period | $43.07 | $41.71 | $41.57 | $38.46 | $29.51 |
Total ReturnD | 4.57% | 1.36% | 9.01% | 31.11% | 22.67% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .61% | .68% | .71% | .76% | .90% |
Expenses net of fee waivers, if any | .61% | .68% | .71% | .76% | .90% |
Expenses net of all reductions | .61% | .68% | .71% | .75% | .90% |
Net investment income (loss) | 1.74% | 1.14% | .93% | 1.00% | .31%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $73 | $65 | $86 | $74 | $66 |
Portfolio turnover rateG | 121% | 9% | 6% | 22% | 23% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, futures contracts, passive foreign investment companies (PFIC), partnerships, market discount, 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 | $141,526 |
Gross unrealized depreciation | (59,492) |
Net unrealized appreciation (depreciation) on securities | $82,034 |
Tax Cost | $1,286,552 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $15,540 |
Undistributed long-term capital gain | $229,829 |
Net unrealized appreciation (depreciation) on securities and other investments | $82,034 |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $15,684 | $ 13,019 |
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 $735 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 $1,665,640 and $1,581,067, 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 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 annual management fee rate, including the performance adjustment, was .34% 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% | $500 | $– |
Class T | .25% | .25% | 1,325 | 6 |
Class B | .75% | .25% | 16 | 12 |
Class C | .75% | .25% | 440 | 20 |
$2,281 | $38 |
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 | $16 |
Class T | 7 |
Class B(a) | –(b) |
Class C(a) | 1 |
$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, 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 | |
Class A | $452 | .23 |
Class T | 497 | .19 |
Class B | 4 | .28 |
Class C | 107 | .24 |
Fidelity Value Strategies Fund | 1,229 | .17 |
Class K | 33 | .05 |
Class I | 141 | .22 |
$2,463 |
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 $96 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 | $4,699 | .59% | $1 |
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.
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 $4 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 $351. During the period, there were no securities loaned to FCM.
9. 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 $3,746. The weighted average interest rate was .91%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. 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 $60 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.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $2,186 | $1,691 |
Class T | 2,155 | 1,553 |
Class C | 187 | 56 |
Fidelity Value Strategies Fund | 9,139 | 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 |
12. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 471 | 391 | $17,474 | $15,470 |
Reinvestment of distributions | 58 | 46 | 2,110 | 1,760 |
Shares redeemed | (998) | (904) | (37,279) | (35,567) |
Net increase (decrease) | (469) | (467) | $(17,695) | $(18,337) |
Class T | ||||
Shares sold | 349 | 486 | $13,447 | $19,926 |
Reinvestment of distributions | 54 | 41 | 2,045 | 1,646 |
Shares redeemed | (1,385) | (1,296) | (53,890) | (52,610) |
Net increase (decrease) | (982) | (769) | $(38,398) | $(31,038) |
Class B | ||||
Shares sold | – | – | $9 | $12 |
Shares redeemed | (110) | (95) | (3,723) | (3,438) |
Net increase (decrease) | (110) | (95) | $(3,714) | $(3,426) |
Class C | ||||
Shares sold | 78 | 131 | $2,605 | $4,724 |
Reinvestment of distributions | 6 | 3 | 191 | 95 |
Shares redeemed | (263) | (237) | (8,759) | (8,407) |
Net increase (decrease) | (179) | (103) | $(5,963) | $(3,588) |
Fidelity Value Strategies Fund | ||||
Shares sold | 9,301 | 3,980 | $395,357 | $174,437 |
Reinvestment of distributions | 182 | 106 | 7,409 | 4,551 |
Shares redeemed | (10,077) | (5,750) | (417,147) | (250,149) |
Net increase (decrease) | (594) | (1,664) | $(14,381) | $(71,161) |
Class K | ||||
Shares sold | 480 | 390 | $20,396 | $17,106 |
Reinvestment of distributions | 24 | 22 | 970 | 954 |
Shares redeemed | (644) | (1,001) | (27,300) | (44,142) |
Net increase (decrease) | (140) | (589) | $(5,934) | $(26,082) |
Class I | ||||
Shares sold | 445 | 288 | $18,090 | $12,081 |
Reinvestment of distributions | 19 | 18 | 723 | 748 |
Shares redeemed | (330) | (809) | (13,236) | (34,620) |
Net increase (decrease) | 134 | (503) | $5,577 | $(21,791) |
13. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Value Strategies Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Value Strategies Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Value Strategies Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | .86% | |||
Actual | $1,000.00 | $1,041.10 | $4.39 | |
Hypothetical-C | $1,000.00 | $1,020.70 | $4.34 | |
Class T | 1.08% | |||
Actual | $1,000.00 | $1,039.90 | $5.51 | |
Hypothetical-C | $1,000.00 | $1,019.60 | $5.45 | |
Class C | 1.63% | |||
Actual | $1,000.00 | $1,037.00 | $8.30 | |
Hypothetical-C | $1,000.00 | $1,016.85 | $8.22 | |
Fidelity Value Strategies Fund | .55% | |||
Actual | $1,000.00 | $1,042.70 | $2.81 | |
Hypothetical-C | $1,000.00 | $1,022.25 | $2.78 | |
Class K | .44% | |||
Actual | $1,000.00 | $1,043.20 | $2.25 | |
Hypothetical-C | $1,000.00 | $1,022.80 | $2.23 | |
Class I | .61% | |||
Actual | $1,000.00 | $1,042.10 | $3.11 | |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Value Strategies Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Value Strategies Fund | ||||
Class A | 12/28/2016 | 12/27/2016 | $0.555 | $7.517 |
Class T | 12/28/2016 | 12/27/2016 | $0.456 | $7.517 |
Class C | 12/28/2016 | 12/27/2016 | $0.295 | $7.517 |
Fidelity Value Strategies Fund | 12/28/2016 | 12/27/2016 | $0.663 | $7.517 |
Class I | 12/28/2016 | 12/27/2016 | $0.662 | $7.517 |
Class K | 12/28/2016 | 12/27/2016 | $0.723 | $7.517 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2016, $257,335,586, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class T, Class C, Fidelity Value Strategies Fund, Class I, Class K and designates 100%, 100%, 100%, 89%, 95% and 80% of the dividends distributed in December 18th 2015, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class C, Fidelity Value Strategies Fund, Class I, Class K designates 100%, 100%, 100%, 86%, 91% and 77% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Value Strategies Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Value Strategies Fund
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Fidelity Advisor Value Strategies Fund
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SO-ANN-0117
1.539180.119
Fidelity® Stock Selector Mid Cap Fund Annual Report November 30, 2016 Fidelity® Stock Selector Mid Cap Fund is a class of Fidelity Advisor® Stock Selector Mid Cap Fund |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Stock Selector Mid Cap Fund | 5.73% | 12.59% | 5.38% |
The initial offering of Fidelity® Stock Selector Mid Cap Fund took place on June 6, 2012. Returns prior to June 6, 2012, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Stock Selector Mid Cap Fund, a class of the fund, on November 30, 2006. The chart shows how the value of your investment would have changed, and also shows how the S&P MidCap 400® Index performed over the same period. See above for additional information regarding the performance of Fidelity® Stock Selector Mid Cap Fund.
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Period Ending Values | ||
$16,889 | Fidelity® Stock Selector Mid Cap Fund | |
$23,390 | S&P MidCap 400® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.’s June 23 vote to exit the European Union – dubbed “Brexit” – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500 advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Co-Portfolio Manager Eddie Yoon: For the year, the fund’s share classes posted gains in the range of roughly 5% to 6%, trailing the 13.23% return of their index, the S&P MidCap 400. Overall, stock selection detracted most versus the index. Choices in the industrials, materials and information technology sectors disappointed, with choices in the capital goods segment of industrials doing the most damage. Here, an out-of benchmark position in electronic instrument manufacturer Ametek was by far the fund’s largest relative detractor. Ametek remained among the fund’s largest holdings at period end, even though we sold some of the position to invest elsewhere. Shares of generic drug maker Endo International also detracted. We sold this holding in November because we didn’t see a clear path to value creation. Conversely, positioning in energy and consumer staples helped performance this period, as did a stake in SVB Financial Group, a holding company for a Silicon Valley bank.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On May 13, 2016, Christopher Lin became Co-Manager of the fund, responsible for its information technology and telecommunication services sleeves, succeeding Rayna Lesser Hannaway. On October 24, 2016, John Mirshekari became Co-Manager overseeing the fund's industrials sector assets, while Co-Manager Shadman Riaz assumed responsibility for its materials sleeve, each succeeding Monty Kori.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Capital One Financial Corp. | 2.0 | 1.4 |
Huntington Bancshares, Inc. | 1.8 | 1.2 |
Steel Dynamics, Inc. | 1.5 | 0.0 |
SLM Corp. | 1.3 | 0.7 |
AMETEK, Inc. | 1.2 | 3.9 |
MRC Global, Inc. | 1.1 | 0.0 |
Aerojet Rocketdyne Holdings, Inc. | 1.1 | 0.0 |
Arthur J. Gallagher & Co. | 1.0 | 1.5 |
Fortive Corp. | 1.0 | 0.0 |
Signature Bank | 1.0 | 0.7 |
13.0 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 17.1 | 16.7 |
Financials | 16.7 | 25.2 |
Industrials | 13.6 | 14.1 |
Consumer Discretionary | 12.4 | 12.0 |
Real Estate | 10.5 | 0.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016* | ||
Stocks and Equity Futures | 98.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.5% |
* Foreign investments - 7.9%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.4% | |||
Distributors - 0.6% | |||
LKQ Corp. (a) | 360,700 | $11,842 | |
Diversified Consumer Services - 1.2% | |||
Grand Canyon Education, Inc. (a) | 115,300 | 6,584 | |
ServiceMaster Global Holdings, Inc. (a) | 453,684 | 17,340 | |
23,924 | |||
Hotels, Restaurants & Leisure - 2.0% | |||
ARAMARK Holdings Corp. | 295,300 | 10,161 | |
Dunkin' Brands Group, Inc. | 362,600 | 19,686 | |
Restaurant Brands International, Inc. | 233,700 | 11,129 | |
40,976 | |||
Household Durables - 0.8% | |||
NVR, Inc. (a) | 9,500 | 15,153 | |
Internet & Direct Marketing Retail - 0.8% | |||
Liberty Expedia Holdings, Inc. (a) | 49,160 | 2,161 | |
Liberty Interactive Corp.: | |||
(Venture Group) Series A (a) | 102,640 | 4,005 | |
QVC Group Series A (a) | 504,910 | 10,457 | |
16,623 | |||
Media - 4.8% | |||
AMC Networks, Inc. Class A (a) | 251,300 | 13,884 | |
Discovery Communications, Inc. Class A (a) | 443,200 | 12,006 | |
Liberty Broadband Corp. Class A (a) | 124,800 | 8,677 | |
Liberty Global PLC LiLAC Class C (a) | 282,600 | 5,983 | |
Liberty Media Corp. Liberty Media Class A (a) | 304,000 | 9,512 | |
Live Nation Entertainment, Inc. (a) | 419,500 | 11,612 | |
Scripps Networks Interactive, Inc. Class A (b) | 180,900 | 12,529 | |
Starz Series A (a) | 418,500 | 14,170 | |
The Madison Square Garden Co. (a) | 54,000 | 9,377 | |
97,750 | |||
Multiline Retail - 0.7% | |||
Dollar General Corp. | 180,800 | 13,979 | |
Specialty Retail - 0.3% | |||
Ross Stores, Inc. | 71,700 | 4,846 | |
Textiles, Apparel & Luxury Goods - 1.2% | |||
Hanesbrands, Inc. | 200,100 | 4,648 | |
PVH Corp. | 105,000 | 11,124 | |
VF Corp. | 161,800 | 8,820 | |
24,592 | |||
TOTAL CONSUMER DISCRETIONARY | 249,685 | ||
CONSUMER STAPLES - 3.8% | |||
Beverages - 1.3% | |||
Coca-Cola European Partners PLC | 301,400 | 9,783 | |
Dr. Pepper Snapple Group, Inc. | 49,300 | 4,276 | |
Molson Coors Brewing Co. Class B | 121,600 | 11,920 | |
25,979 | |||
Food & Staples Retailing - 0.4% | |||
United Natural Foods, Inc. (a) | 169,200 | 7,944 | |
Food Products - 1.2% | |||
ConAgra Foods, Inc. | 117,500 | 4,311 | |
Gores Holdings, Inc.(a)(b) | 604,000 | 7,822 | |
Lamb Weston Holdings, Inc. (a) | 39,166 | 1,311 | |
Mead Johnson Nutrition Co. Class A | 108,900 | 7,851 | |
WhiteWave Foods Co. (a) | 69,300 | 3,818 | |
25,113 | |||
Household Products - 0.7% | |||
Church & Dwight Co., Inc. | 197,800 | 8,662 | |
Energizer Holdings, Inc. (b) | 47,300 | 2,122 | |
Spectrum Brands Holdings, Inc. | 32,300 | 3,872 | |
14,656 | |||
Personal Products - 0.2% | |||
Coty, Inc. Class A | 193,800 | 3,626 | |
TOTAL CONSUMER STAPLES | 77,318 | ||
ENERGY - 4.2% | |||
Energy Equipment & Services - 1.4% | |||
Dril-Quip, Inc. (a) | 136,000 | 7,691 | |
Nabors Industries Ltd. | 738,500 | 11,890 | |
Oil States International, Inc. (a) | 226,500 | 8,120 | |
27,701 | |||
Oil, Gas & Consumable Fuels - 2.8% | |||
Cabot Oil & Gas Corp. | 62,300 | 1,378 | |
Cimarex Energy Co. | 50,200 | 6,922 | |
Energen Corp. | 207,500 | 12,880 | |
HollyFrontier Corp. | 361,800 | 10,409 | |
PDC Energy, Inc. (a) | 76,100 | 5,666 | |
Whiting Petroleum Corp. (a)(b) | 552,700 | 6,754 | |
WPX Energy, Inc. (a) | 820,700 | 12,754 | |
56,763 | |||
TOTAL ENERGY | 84,464 | ||
FINANCIALS - 16.7% | |||
Banks - 6.1% | |||
Aldermore Group PLC (a) | 2,170,700 | 5,796 | |
CIT Group, Inc. | 470,000 | 19,200 | |
Comerica, Inc. | 63,300 | 4,035 | |
Huntington Bancshares, Inc. | 2,911,206 | 36,274 | |
Shawbrook Group PLC (a) | 1,401,100 | 4,391 | |
Signature Bank (a) | 136,100 | 20,403 | |
SVB Financial Group (a) | 117,700 | 18,600 | |
Synovus Financial Corp. | 302,327 | 11,703 | |
The Jammu & Kashmir Bank Ltd. (a) | 2,407,373 | 2,132 | |
122,534 | |||
Capital Markets - 2.2% | |||
CBOE Holdings, Inc. | 173,300 | 11,940 | |
Interactive Brokers Group, Inc. | 101,367 | 3,722 | |
MSCI, Inc. | 176,500 | 13,908 | |
Virtu Financial, Inc. Class A | 616,800 | 8,543 | |
WisdomTree Investments, Inc. (b) | 569,300 | 6,296 | |
44,409 | |||
Consumer Finance - 3.9% | |||
Capital One Financial Corp. | 478,400 | 40,208 | |
First Cash Financial Services, Inc. | 70,700 | 3,245 | |
OneMain Holdings, Inc. (a) | 461,780 | 9,406 | |
SLM Corp. (a) | 2,571,216 | 25,892 | |
78,751 | |||
Diversified Financial Services - 0.3% | |||
On Deck Capital, Inc. (a)(b) | 1,310,058 | 6,026 | |
Insurance - 2.8% | |||
Allied World Assurance Co. Holdings AG | 160,100 | 7,494 | |
Arthur J. Gallagher & Co. | 418,200 | 21,056 | |
Direct Line Insurance Group PLC | 1,973,558 | 8,573 | |
Employers Holdings, Inc. | 187,900 | 6,642 | |
FNF Group | 100,000 | 3,194 | |
Hanover Insurance Group, Inc. | 67,900 | 5,879 | |
ProAssurance Corp. | 81,200 | 4,551 | |
57,389 | |||
Mortgage Real Estate Investment Trusts - 0.7% | |||
Altisource Residential Corp. Class B | 660,721 | 7,783 | |
Redwood Trust, Inc. | 476,000 | 7,245 | |
15,028 | |||
Thrifts & Mortgage Finance - 0.7% | |||
Essent Group Ltd. (a) | 278,100 | 8,488 | |
LIC Housing Finance Ltd. | 719,652 | 5,916 | |
14,404 | |||
TOTAL FINANCIALS | 338,541 | ||
HEALTH CARE - 7.2% | |||
Biotechnology - 0.7% | |||
Puma Biotechnology, Inc. (a) | 65,000 | 2,798 | |
Vertex Pharmaceuticals, Inc. (a) | 126,000 | 10,283 | |
13,081 | |||
Health Care Equipment & Supplies - 3.2% | |||
Boston Scientific Corp. (a) | 620,000 | 12,685 | |
Insulet Corp. (a) | 190,600 | 6,414 | |
The Cooper Companies, Inc. | 58,000 | 9,540 | |
The Spectranetics Corp. (a) | 330,000 | 7,211 | |
Wright Medical Group NV (a) | 500,000 | 11,520 | |
Zeltiq Aesthetics, Inc. (a) | 179,328 | 7,892 | |
Zimmer Biomet Holdings, Inc. | 90,000 | 9,167 | |
64,429 | |||
Health Care Providers & Services - 2.2% | |||
American Renal Associates Holdings, Inc. | 290,000 | 7,082 | |
AmSurg Corp. (a) | 184,000 | 12,534 | |
MEDNAX, Inc. (a) | 200,000 | 13,094 | |
Premier, Inc. (a) | 206,000 | 6,209 | |
Surgical Care Affiliates, Inc. (a) | 140,000 | 5,887 | |
44,806 | |||
Life Sciences Tools & Services - 0.3% | |||
Agilent Technologies, Inc. | 155,000 | 6,817 | |
Pharmaceuticals - 0.8% | |||
Catalent, Inc. (a) | 670,000 | 16,033 | |
TOTAL HEALTH CARE | 145,166 | ||
INDUSTRIALS - 13.6% | |||
Aerospace & Defense - 2.4% | |||
Aerojet Rocketdyne Holdings, Inc. (a) | 1,057,020 | 21,479 | |
Taser International, Inc. (a)(b) | 444,800 | 12,112 | |
Teledyne Technologies, Inc. (a) | 116,308 | 14,523 | |
48,114 | |||
Airlines - 0.4% | |||
American Airlines Group, Inc. | 191,700 | 8,903 | |
Building Products - 0.7% | |||
Allegion PLC | 223,510 | 14,955 | |
Commercial Services & Supplies - 0.2% | |||
Aggreko PLC | 294,700 | 3,014 | |
Construction & Engineering - 0.8% | |||
Fluor Corp. | 302,857 | 16,206 | |
Electrical Equipment - 2.2% | |||
AMETEK, Inc. | 487,672 | 23,091 | |
Fortive Corp. | 378,600 | 20,819 | |
Sensata Technologies Holding BV (a) | 8,000 | 299 | |
44,209 | |||
Industrial Conglomerates - 0.6% | |||
Roper Technologies, Inc. | 64,830 | 11,741 | |
Machinery - 3.6% | |||
AGCO Corp. | 271,500 | 15,150 | |
Allison Transmission Holdings, Inc. | 474,463 | 15,738 | |
Flowserve Corp. | 318,625 | 15,119 | |
IDEX Corp. | 195,400 | 18,291 | |
TriMas Corp. (a) | 281,113 | 6,030 | |
WABCO Holdings, Inc. (a) | 28,500 | 2,808 | |
73,136 | |||
Professional Services - 0.6% | |||
Robert Half International, Inc. | 201,100 | 9,023 | |
Verisk Analytics, Inc. (a) | 33,270 | 2,764 | |
11,787 | |||
Road & Rail - 0.7% | |||
CSX Corp. | 412,800 | 14,782 | |
Trading Companies & Distributors - 1.4% | |||
Fastenal Co. | 130,700 | 6,195 | |
MRC Global, Inc. (a) | 1,121,900 | 22,584 | |
28,779 | |||
TOTAL INDUSTRIALS | 275,626 | ||
INFORMATION TECHNOLOGY - 17.1% | |||
Communications Equipment - 0.9% | |||
Brocade Communications Systems, Inc. | 51,200 | 632 | |
CommScope Holding Co., Inc. (a) | 291,100 | 10,474 | |
F5 Networks, Inc. (a) | 51,230 | 7,211 | |
18,317 | |||
Electronic Equipment & Components - 2.9% | |||
Arrow Electronics, Inc. (a) | 147,000 | 10,036 | |
CDW Corp. | 238,500 | 12,221 | |
IPG Photonics Corp. (a) | 116,500 | 11,175 | |
Jabil Circuit, Inc. | 832,600 | 17,609 | |
Keysight Technologies, Inc. (a) | 186,900 | 6,884 | |
57,925 | |||
Internet Software & Services - 1.1% | |||
SPS Commerce, Inc. (a) | 113,400 | 7,855 | |
Stamps.com, Inc. (a) | 136,900 | 14,539 | |
Velti PLC (a)(c) | 215,084 | 1 | |
22,395 | |||
IT Services - 3.8% | |||
Capgemini SA | 106,100 | 8,378 | |
Cognizant Technology Solutions Corp. Class A (a) | 208,800 | 11,501 | |
Computer Sciences Corp. | 184,000 | 11,156 | |
EPAM Systems, Inc. (a) | 158,500 | 10,445 | |
Global Payments, Inc. | 139,300 | 9,549 | |
Maximus, Inc. | 145,200 | 8,028 | |
Reply SpA | 77,283 | 8,928 | |
Sabre Corp. | 361,300 | 9,340 | |
77,325 | |||
Semiconductors & Semiconductor Equipment - 2.9% | |||
Dialog Semiconductor PLC (a) | 234,700 | 9,304 | |
Lam Research Corp. | 103,800 | 11,005 | |
Maxim Integrated Products, Inc. | 84,500 | 3,318 | |
NXP Semiconductors NV (a) | 120,600 | 11,957 | |
Qorvo, Inc. (a) | 210,700 | 11,253 | |
Skyworks Solutions, Inc. | 160,800 | 12,357 | |
59,194 | |||
Software - 4.9% | |||
ANSYS, Inc. (a) | 116,800 | 10,983 | |
CDK Global, Inc. | 321,400 | 18,545 | |
Fair Isaac Corp. | 42,100 | 4,786 | |
Salesforce.com, Inc. (a) | 167,500 | 12,060 | |
SS&C Technologies Holdings, Inc. | 128,000 | 3,841 | |
Synchronoss Technologies, Inc. (a) | 191,700 | 9,294 | |
Synopsys, Inc. (a) | 140,300 | 8,485 | |
Tableau Software, Inc. (a) | 198,600 | 8,913 | |
Tyler Technologies, Inc. (a) | 43,700 | 6,507 | |
Ultimate Software Group, Inc. (a) | 79,000 | 16,189 | |
99,603 | |||
Technology Hardware, Storage & Peripherals - 0.6% | |||
HP, Inc. | 732,100 | 11,274 | |
TOTAL INFORMATION TECHNOLOGY | 346,033 | ||
MATERIALS - 7.4% | |||
Chemicals - 4.1% | |||
Ashland Global Holdings, Inc. | 166,800 | 18,798 | |
Axalta Coating Systems (a) | 342,700 | 9,054 | |
CF Industries Holdings, Inc. | 278,200 | 8,051 | |
Olin Corp. | 648,400 | 16,858 | |
PPG Industries, Inc. | 79,500 | 7,626 | |
RPM International, Inc. | 254,900 | 13,487 | |
W.R. Grace & Co. | 134,497 | 8,777 | |
82,651 | |||
Containers & Packaging - 1.8% | |||
Ball Corp. | 164,563 | 12,352 | |
Sealed Air Corp. | 219,600 | 10,014 | |
WestRock Co. | 268,100 | 13,727 | |
36,093 | |||
Metals & Mining - 1.5% | |||
Steel Dynamics, Inc. | 894,700 | 31,744 | |
TOTAL MATERIALS | 150,488 | ||
REAL ESTATE - 10.5% | |||
Equity Real Estate Investment Trusts (REITs) - 10.2% | |||
Apartment Investment & Management Co. Class A | 224,600 | 9,456 | |
Communications Sales & Leasing, Inc. | 283,900 | 7,078 | |
Corrections Corp. of America | 109,996 | 2,498 | |
DCT Industrial Trust, Inc. | 324,890 | 14,929 | |
Douglas Emmett, Inc. | 550,000 | 20,180 | |
Duke Realty LP | 523,900 | 13,323 | |
Equity Lifestyle Properties, Inc. | 166,100 | 11,532 | |
Extra Space Storage, Inc. | 67,500 | 4,736 | |
FelCor Lodging Trust, Inc. | 1,380,600 | 10,023 | |
Healthcare Realty Trust, Inc. | 590,800 | 17,358 | |
Hudson Pacific Properties, Inc. | 244,600 | 8,529 | |
Mack-Cali Realty Corp. | 538,500 | 14,566 | |
Outfront Media, Inc. | 284,300 | 7,167 | |
Post Properties, Inc. | 44,500 | 2,893 | |
Potlatch Corp. | 149,600 | 6,145 | |
Ramco-Gershenson Properties Trust (SBI) | 340,000 | 5,770 | |
Sabra Health Care REIT, Inc. | 412,700 | 9,133 | |
Taubman Centers, Inc. | 170,200 | 12,368 | |
The GEO Group, Inc. | 55,600 | 1,849 | |
Urban Edge Properties | 566,600 | 15,349 | |
VEREIT, Inc. | 1,494,300 | 12,388 | |
207,270 | |||
Real Estate Management & Development - 0.3% | |||
CBRE Group, Inc. (a) | 190,450 | 5,531 | |
TOTAL REAL ESTATE | 212,801 | ||
TELECOMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.1% | |||
SBA Communications Corp. Class A (a) | 14,570 | 1,442 | |
Wireless Telecommunication Services - 0.1% | |||
T-Mobile U.S., Inc. (a) | 33,350 | 1,808 | |
TOTAL TELECOMMUNICATION SERVICES | 3,250 | ||
UTILITIES - 5.1% | |||
Electric Utilities - 2.2% | |||
Great Plains Energy, Inc. | 514,600 | 13,580 | |
OGE Energy Corp. | 423,126 | 13,392 | |
PNM Resources, Inc. | 300,400 | 9,493 | |
Westar Energy, Inc. | 143,075 | 8,150 | |
44,615 | |||
Gas Utilities - 1.6% | |||
Atmos Energy Corp. | 231,740 | 16,481 | |
National Fuel Gas Co. | 198,011 | 11,164 | |
South Jersey Industries, Inc. | 163,400 | 5,392 | |
33,037 | |||
Multi-Utilities - 1.3% | |||
Avangrid, Inc. | 209,600 | 7,581 | |
Black Hills Corp. | 243,705 | 14,318 | |
MDU Resources Group, Inc. | 146,805 | 4,084 | |
25,983 | |||
TOTAL UTILITIES | 103,635 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,820,106) | 1,987,007 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 0.24% to 0.43% 12/29/16 to 2/16/17 (d) | |||
(Cost $680) | 680 | 680 | |
Shares | Value (000s) | ||
Money Market Funds - 4.0% | |||
Fidelity Cash Central Fund, 0.39% (e) | 50,071,740 | $50,082 | |
Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 30,138,329 | 30,144 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $80,220) | 80,226 | ||
TOTAL INVESTMENT PORTFOLIO - 102.2% | |||
(Cost $1,901,006) | 2,067,913 | ||
NET OTHER ASSETS (LIABILITIES) - (2.2)% | (44,971) | ||
NET ASSETS - 100% | $2,022,942 |
Futures Contracts | |||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||
Equity Index Contracts | |||
37 CME E-mini S&P MidCap 400 Index Contracts (United States) | Dec. 2016 | 6,020 | $80 |
The face value of futures purchased as a percentage of Net Assets is 0.3%
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 $271,000.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 | $156 |
Fidelity Securities Lending Cash Central Fund | 510 |
Total | $666 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $249,685 | $249,685 | $-- | $-- |
Consumer Staples | 77,318 | 77,318 | -- | -- |
Energy | 84,464 | 84,464 | -- | -- |
Financials | 338,541 | 330,493 | 8,048 | -- |
Health Care | 145,166 | 145,166 | -- | -- |
Industrials | 275,626 | 275,626 | -- | -- |
Information Technology | 346,033 | 346,032 | 1 | -- |
Materials | 150,488 | 150,488 | -- | -- |
Real Estate | 212,801 | 212,801 | -- | -- |
Telecommunication Services | 3,250 | 3,250 | -- | -- |
Utilities | 103,635 | 103,635 | -- | -- |
U.S. Government and Government Agency Obligations | 680 | -- | 680 | -- |
Money Market Funds | 80,226 | 80,226 | -- | -- |
Total Investments in Securities: | $2,067,913 | $2,059,184 | $8,729 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $80 | $80 | $-- | $-- |
Total Assets | $80 | $80 | $-- | $-- |
Total Derivative Instruments: | $80 | $80 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of November 30, 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 | |
(Amounts in thousands) | ||
Equity Risk | ||
Futures Contracts(a) | $80 | $0 |
Total Equity Risk | 80 | 0 |
Total Value of Derivatives | $80 | $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) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $29,999) — See accompanying schedule: Unaffiliated issuers (cost $1,820,786) | $1,987,687 | |
Fidelity Central Funds (cost $80,220) | 80,226 | |
Total Investments (cost $1,901,006) | $2,067,913 | |
Cash | 48 | |
Receivable for investments sold | 33,917 | |
Receivable for fund shares sold | 1,173 | |
Dividends receivable | 1,893 | |
Distributions receivable from Fidelity Central Funds | 32 | |
Prepaid expenses | 5 | |
Other receivables | 21 | |
Total assets | 2,105,002 | |
Liabilities | ||
Payable for investments purchased | $48,284 | |
Payable for fund shares redeemed | 2,188 | |
Accrued management fee | 521 | |
Distribution and service plan fees payable | 467 | |
Payable for daily variation margin for derivative instruments | 15 | |
Other affiliated payables | 378 | |
Other payables and accrued expenses | 63 | |
Collateral on securities loaned, at value | 30,144 | |
Total liabilities | 82,060 | |
Net Assets | $2,022,942 | |
Net Assets consist of: | ||
Paid in capital | $1,938,149 | |
Undistributed net investment income | 8,778 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (90,959) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 166,974 | |
Net Assets | $2,022,942 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($545,934 ÷ 16,479 shares) | $33.13 | |
Maximum offering price per share (100/94.25 of $33.13) | $35.15 | |
Class T: | ||
Net Asset Value and redemption price per share ($591,064 ÷ 17,777 shares) | $33.25 | |
Maximum offering price per share (100/96.50 of $33.25) | $34.46 | |
Class C: | ||
Net Asset Value and offering price per share ($140,118 ÷ 4,628 shares)(a) | $30.28 | |
Fidelity Stock Selector Mid Cap Fund: | ||
Net Asset Value, offering price and redemption price per share ($222,387 ÷ 6,441 shares) | $34.53 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($523,439 ÷ 15,130 shares) | $34.60 |
(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 | Year ended November 30, 2016 | |
Investment Income | ||
Dividends | $30,497 | |
Interest | 2 | |
Income from Fidelity Central Funds | 666 | |
Total income | 31,165 | |
Expenses | ||
Management fee | ||
Basic fee | $11,253 | |
Performance adjustment | (3,465) | |
Transfer agent fees | 4,266 | |
Distribution and service plan fees | 5,810 | |
Accounting and security lending fees | 629 | |
Custodian fees and expenses | 60 | |
Independent trustees' fees and expenses | 9 | |
Registration fees | 115 | |
Audit | 69 | |
Legal | 18 | |
Interest | 4 | |
Miscellaneous | 17 | |
Total expenses before reductions | 18,785 | |
Expense reductions | (157) | 18,628 |
Net investment income (loss) | 12,537 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $2) | (88,910) | |
Fidelity Central Funds | (1) | |
Foreign currency transactions | 3 | |
Futures contracts | 19 | |
Total net realized gain (loss) | (88,889) | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $7) | 160,810 | |
Assets and liabilities in foreign currencies | (1) | |
Futures contracts | (139) | |
Total change in net unrealized appreciation (depreciation) | 160,670 | |
Net gain (loss) | 71,781 | |
Net increase (decrease) in net assets resulting from operations | $84,318 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $12,537 | $4,877 |
Net realized gain (loss) | (88,889) | 274,812 |
Change in net unrealized appreciation (depreciation) | 160,670 | (264,502) |
Net increase (decrease) in net assets resulting from operations | 84,318 | 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) | (421,318) | (166,510) |
Total increase (decrease) in net assets | (380,175) | (154,076) |
Net Assets | ||
Beginning of period | 2,403,117 | 2,557,193 |
End of period | $2,022,942 | $2,403,117 |
Other Information | ||
Undistributed net investment income end of period | $8,778 | $1,101 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.01 | $31.80 | $28.37 | $22.16 | $19.15 |
Income from Investment Operations | |||||
Net investment income (loss)A | .20 | .08 | .08 | .10 | .09 |
Net realized and unrealized gain (loss) | 1.49 | .13 | 3.36 | 6.29 | 3.02 |
Total from investment operations | 1.69 | .21 | 3.44 | 6.39 | 3.11 |
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 | $33.13 | $32.01 | $31.80 | $28.37 | $22.16 |
Total ReturnB,C | 5.49% | .66% | 12.11% | 29.07% | 16.32% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .88% | .98% | 1.05% | .95% | .94% |
Expenses net of fee waivers, if any | .88% | .98% | 1.05% | .95% | .94% |
Expenses net of all reductions | .88% | .97% | 1.05% | .92% | .94% |
Net investment income (loss) | .64% | .24% | .26% | .39% | .41% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $546 | $593 | $652 | $692 | $593 |
Portfolio turnover rateF | 98% | 109% | 89% | 79%G | 72% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.16 | $32.02 | $28.63 | $22.36 | $19.30 |
Income from Investment Operations | |||||
Net investment income (loss)A | .13 | – | .01 | .04 | .05 |
Net realized and unrealized gain (loss) | 1.49 | .14 | 3.38 | 6.36 | 3.05 |
Total from investment operations | 1.62 | .14 | 3.39 | 6.40 | 3.10 |
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 | $33.25 | $32.16 | $32.02 | $28.63 | $22.36 |
Total ReturnB,C | 5.22% | .44% | 11.84% | 28.80% | 16.12% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.12% | 1.22% | 1.28% | 1.16% | 1.14% |
Expenses net of fee waivers, if any | 1.12% | 1.21% | 1.28% | 1.16% | 1.14% |
Expenses net of all reductions | 1.11% | 1.21% | 1.27% | 1.13% | 1.13% |
Net investment income (loss) | .41% | .01% | .03% | .17% | .22% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $591 | $681 | $794 | $817 | $755 |
Portfolio turnover rateF | 98% | 109% | 89% | 79%G | 72% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $29.48 | $29.51 | $26.52 | $20.73 | $17.95 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.03) | (.15) | (.14) | (.09) | (.06) |
Net realized and unrealized gain (loss) | 1.36 | .12 | 3.13 | 5.91 | 2.84 |
Total from investment operations | 1.33 | (.03) | 2.99 | 5.82 | 2.78 |
Distributions from net investment income | – | – | – | (.02) | – |
Distributions from net realized gain | (.53) | – | – | (.01) | – |
Total distributions | (.53) | – | – | (.03) | – |
Net asset value, end of period | $30.28 | $29.48 | $29.51 | $26.52 | $20.73 |
Total ReturnB,C | 4.71% | (.10)% | 11.27% | 28.09% | 15.49% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.63% | 1.74% | 1.80% | 1.69% | 1.68% |
Expenses net of fee waivers, if any | 1.63% | 1.73% | 1.80% | 1.69% | 1.68% |
Expenses net of all reductions | 1.63% | 1.73% | 1.80% | 1.67% | 1.68% |
Net investment income (loss) | (.11)% | (.51)% | (.49)% | (.36)% | (.33)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $140 | $155 | $172 | $172 | $141 |
Portfolio turnover rateF | 98% | 109% | 89% | 79%G | 72% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the contingent deferred sales charge.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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 Stock Selector Mid Cap Fund
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 | .28 | .16 | .16 | .17 | .09 |
Net realized and unrealized gain (loss) | 1.55 | .14 | 3.49 | 6.54 | 1.85 |
Total from investment operations | 1.83 | .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 | $34.53 | $33.34 | $33.14 | $29.56 | $23.14 |
Total ReturnD,E | 5.73% | .90% | 12.38% | 29.36% | 9.15% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .64% | .75% | .81% | .71% | .59%H |
Expenses net of fee waivers, if any | .64% | .74% | .81% | .71% | .59%H |
Expenses net of all reductions | .63% | .74% | .81% | .69% | .58%H |
Net investment income (loss) | .89% | .48% | .50% | .62% | .86%H |
Supplemental Data | |||||
Net assets, end of period (in millions) | $222 | $486 | $553 | $225 | $1 |
Portfolio turnover rateI | 98% | 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
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.39 | $33.22 | $29.64 | $23.14 | $20.01 |
Income from Investment Operations | |||||
Net investment income (loss)A | .28 | .13 | .16 | .18 | .15 |
Net realized and unrealized gain (loss) | 1.56 | .14 | 3.50 | 6.56 | 3.15 |
Total from investment operations | 1.84 | .27 | 3.66 | 6.74 | 3.30 |
Distributions from net investment income | (.11) | (.10) | (.08) | (.20) | (.17) |
Distributions from net realized gain | (.53) | – | – | (.04) | – |
Total distributions | (.63)B | (.10) | (.08) | (.24) | (.17) |
Net asset value, end of period | $34.60 | $33.39 | $33.22 | $29.64 | $23.14 |
Total ReturnC | 5.75% | .80% | 12.39% | 29.44% | 16.66% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .64% | .83% | .80% | .67% | .65% |
Expenses net of fee waivers, if any | .64% | .83% | .80% | .67% | .65% |
Expenses net of all reductions | .64% | .82% | .80% | .65% | .64% |
Net investment income (loss) | .88% | .39% | .51% | .66% | .71% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $523 | $479 | $371 | $214 | $172 |
Portfolio turnover rateF | 98% | 109% | 89% | 79%G | 72% |
A Calculated based on average shares outstanding during the period.
B 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.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, market discount, foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards, expiring 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 | $255,815 |
Gross unrealized depreciation | (93,227) |
Net unrealized appreciation (depreciation) on securities | $162,588 |
Tax Cost | $1,905,325 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $9,020 |
Capital loss carryforward | $(86,801) |
Net unrealized appreciation (depreciation) on securities and other investments | $162,576 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
No expiration | |
Short-term | $(52,961) |
Long-term | (33,840) |
Total capital loss carryforward | $(86,801) |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Ordinary Income | $3,959 | $ 2,753 |
Long-term Capital Gains | 39,216 | – |
Total | $43,175 | $ 2,753 |
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 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 $19 and a change in net unrealized appreciation (depreciation) of $(139) 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 $1,998,553 and $2,391,630, 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 annual management fee rate, including the performance adjustment, was .38% 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% | $1,353 | $–(a) |
Class T | .25% | .25% | 3,015 | – |
Class B | .75% | .25% | 41 | 31 |
Class C | .75% | .25% | 1,401 | 17 |
$5,810 | $48 |
(a) In the amount of less than five hundred dollars.
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 | $24 |
Class T | 14 |
Class B(a) | 1 |
Class C(a) | 4 |
$43 |
(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 applicable class were as follows:
Amount | % of Class-Level Average Net Assets | |
Class A | $1,132 | .21 |
Class T | 1,166 | .19 |
Class B | 11 | .28 |
Class C | 296 | .21 |
Fidelity Stock Selector Mid Cap Fund | 606 | .21 |
Class I | 1,055 | .22 |
$4,266 |
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 $76 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 $5 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 $1,596. 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 $510, including $17 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 $140 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 $17.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 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 | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 1,039 | 1,378 | $31,500 | $44,847 |
Reinvestment of distributions | 331 | – | 9,838 | – |
Shares redeemed | (3,402) | (3,369) | (104,169) | (109,342) |
Net increase (decrease) | (2,032) | (1,991) | $(62,831) | $(64,495) |
Class T | ||||
Shares sold | 1,180 | 1,615 | $36,250 | $53,028 |
Reinvestment of distributions | 356 | – | 10,639 | – |
Shares redeemed | (4,950) | (5,214) | (152,516) | (170,224) |
Net increase (decrease) | (3,414) | (3,599) | $(105,627) | $(117,196) |
Class B | ||||
Shares sold | 1 | 2 | $31 | $36 |
Reinvestment of distributions | 5 | – | 145 | – |
Shares redeemed | (331) | (219) | (9,046) | (6,583) |
Net increase (decrease) | (325) | (217) | $(8,870) | $(6,547) |
Class C | ||||
Shares sold | 114 | 234 | $3,221 | $7,096 |
Reinvestment of distributions | 90 | – | 2,469 | – |
Shares redeemed | (819) | (818) | (23,061) | (24,477) |
Net increase (decrease) | (615) | (584) | $(17,371) | $(17,381) |
Fidelity Stock Selector Mid Cap Fund | ||||
Shares sold | 1,163 | 939 | $37,438 | $31,733 |
Reinvestment of distributions | 300 | 49 | 9,281 | 1,651 |
Shares redeemed | (9,609) | (3,087) | (298,117) | (101,545) |
Net increase (decrease) | (8,146) | (2,099) | $(251,398) | $(68,161) |
Class I | ||||
Shares sold | 5,294 | 5,194 | $166,666 | $175,072 |
Reinvestment of distributions | 291 | 30 | 9,016 | 1,015 |
Shares redeemed | (4,795) | (2,041) | (150,903) | (68,817) |
Net increase (decrease) | 790 | 3,183 | $24,779 | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Stock Selector Mid Cap Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Stock Selector Mid Cap Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Stock Selector Mid Cap Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 18, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | .83% | |||
Actual | $1,000.00 | $1,067.00 | $4.29 | |
Hypothetical-C | $1,000.00 | $1,020.85 | $4.19 | |
Class T | 1.06% | |||
Actual | $1,000.00 | $1,065.70 | $5.47 | |
Hypothetical-C | $1,000.00 | $1,019.70 | $5.35 | |
Class C | 1.58% | |||
Actual | $1,000.00 | $1,062.80 | $8.15 | |
Hypothetical-C | $1,000.00 | $1,017.10 | $7.97 | |
Fidelity Stock Selector Mid Cap Fund | .54% | |||
Actual | $1,000.00 | $1,068.00 | $2.79 | |
Hypothetical-C | $1,000.00 | $1,022.30 | $2.73 | |
Class I | .58% | |||
Actual | $1,000.00 | $1,068.20 | $3.00 | |
Hypothetical-C | $1,000.00 | $1,022.10 | $2.93 |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Stock Selector Mid Cap Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Stock Selector Mid Cap Fund | ||||
Class A | 12/28/2016 | 12/27/2016 | $0.189 | $0.006 |
Class T | 12/28/2016 | 12/27/2016 | $0.106 | $0.006 |
Class C | 12/28/2016 | 12/27/2016 | $0.000 | $0.000 |
Fidelity Stock Selector Mid Cap Fund | 12/28/2016 | 12/27/2016 | $0.255 | $0.006 |
Class I | 12/28/2016 | 12/27/2016 | $0.273 | $0.006 |
Class A, Class I, and Fidelity Stock Selector Mid Cap Fund designate 100%, 100% and 95% of the dividends distributed in December 18th 2015 respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class I, and Fidelity Stock Selector Mid Cap Fund designate 100%, 100% and 95% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Stock Selector Mid Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Stock Selector Mid Cap Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190641699.jpg)
Fidelity Advisor Stock Selector Mid Cap Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190642045.jpg)
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
SKD-ANN-0117
1.940899.104
Fidelity Advisor® Growth Opportunities Fund Class A, Class T, Class C, Class I and Class Z Annual Report November 30, 2016 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 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. © 2017 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2016 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (7.98)% | 11.70% | 5.83% |
Class T (incl. 3.50% sales charge) | (6.00)% | 11.99% | 5.87% |
Class C (incl. contingent deferred sales charge) | (3.96)% | 12.19% | 5.67% |
Class I | (2.09)% | 13.37% | 6.81% |
Class Z | (1.96)% | 13.47% | 6.86% |
Prior to February 1, 2007, the fund operated under certain different investment policies and compared its performance to a different index. The fund's historical performance may not represent its current investment policies.
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on August 13, 2013. Returns prior to August 13, 2013, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Growth Opportunities Fund - Class A on November 30, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Growth Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img186130705_740.jpg)
Period Ending Values | ||
$17,631 | Fidelity Advisor® Growth Opportunities Fund - Class A | |
$22,068 | Russell 1000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500 index returned 8.06% for the 12 months ending November 30, 2016, rising sharply in the final month on post-election optimism for economic growth. The period began during a fairly volatile stretch, with stocks hampered by persistent oil-price weakness and U.S.-dollar strength. Markets regained positive momentum in February amid U.S. job gains, a rally in energy and other stimuli that helped keep the roughly seven-year uptrend intact. Markets tumbled briefly following the U.K.’s June 23 vote to exit the European Union – dubbed “Brexit” – then recovered quickly and settled into a flattish stretch until the November 8 U.S. presidential election. For the year, 10 of the 11 sectors in the S&P 500® advanced, with six posting double-digit gains. Telecommunication services (+16%) led the way, its strength attributable to demand for dividend-paying equities early in the period, as well as to company-specific news. Cyclical sectors including industrials (+15%), financials (+14%), energy (+13%) and materials (+12%) posted strong gains, the latter two driven by a rebound in commodity prices. Conversely, real estate (+1%) lagged the index due to a late-period slump related to expectations for rising interest rates. Consumer discretionary (+3%) also underperformed, as competitive pressure continued to weigh on brick-and-mortar retailers.Comments from Portfolio Manager Kyle Weaver: For the year, the fund’s share classes (excluding sales charges, if applicable) posted returns in the range of -2% to -3%, considerably trailing the 4.22% gain of the benchmark Russell 1000 Growth Index. Versus the benchmark, stock selection in health care and information technology hampered performance. A non-index position in web-hosting firm Endurance International Group Holdings was the fund’s largest individual detractor. Also curbing results was a sizable underweighting in software giant and index name Microsoft, which returned 14% this period. Detractors in health care included Ireland’s Endo International and Israel-based Teva Pharmaceutical Industries, the latter a non-index position. Both are major players in the generic drug industry. Overweighting biotech Alnylam Pharmaceuticals also hurt. Conversely, picks in consumer discretionary and energy helped results. The fund’s top relative contributor was an out-of-benchmark stake in Wix.com, a competitor of Endurance International in the web-hosting space. A sizable overweighting in wireless carrier T-Mobile US also paid off, as did overweighting cable company Charter Communications.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: Effective September 30, 2016, Kyle Weaver became sole Portfolio Manager of the fund, after having served as Co-Manager since 2015.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Apple, Inc. | 5.8 | 5.3 |
Alphabet, Inc. Class C | 3.6 | 2.9 |
American Tower Corp. | 3.2 | 2.1 |
Amazon.com, Inc. | 3.0 | 3.6 |
Alliance Data Systems Corp. | 2.9 | 2.0 |
Microsoft Corp. | 2.8 | 1.5 |
Charter Communications, Inc. Class A | 2.7 | 1.7 |
Facebook, Inc. Class A | 2.5 | 2.4 |
Tesla Motors, Inc. | 2.3 | 2.2 |
Alphabet, Inc. Class A | 2.2 | 2.7 |
31.0 |
Top Five Market Sectors as of November 30, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 39.9 | 37.6 |
Health Care | 18.0 | 17.7 |
Consumer Discretionary | 14.6 | 17.7 |
Consumer Staples | 7.1 | 7.9 |
Real Estate | 4.9 | 0.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Asset Allocation (% of fund's net assets)
As of November 30, 2016* | ||
Stocks | 98.4% | |
Convertible Securities | 1.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 12.7%
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%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2016
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 14.6% | |||
Automobiles - 2.3% | |||
Tesla Motors, Inc. (a)(b) | 306,277 | $58,009 | |
Hotels, Restaurants & Leisure - 2.3% | |||
Chipotle Mexican Grill, Inc. (a) | 13,700 | 5,430 | |
Starbucks Corp. | 710,600 | 41,193 | |
U.S. Foods Holding Corp. | 419,700 | 9,594 | |
56,217 | |||
Household Durables - 0.3% | |||
Newell Brands, Inc. | 162,000 | 7,616 | |
Internet & Direct Marketing Retail - 3.8% | |||
Amazon.com, Inc. (a) | 100,400 | 75,357 | |
Expedia, Inc. | 15,100 | 1,873 | |
Groupon, Inc. Class A (a) | 945,800 | 3,755 | |
Priceline Group, Inc. (a) | 6,100 | 9,172 | |
Takeaway.com Holding BV (c) | 68,400 | 1,704 | |
Wayfair LLC Class A (a) | 115,200 | 4,199 | |
96,060 | |||
Media - 4.2% | |||
Charter Communications, Inc. Class A (a) | 248,960 | 68,541 | |
Comcast Corp. Class A | 308,300 | 21,430 | |
Liberty Global PLC Class A (a) | 148,500 | 4,651 | |
Lions Gate Entertainment Corp. (b) | 272,500 | 6,377 | |
The Walt Disney Co. | 37,800 | 3,747 | |
104,746 | |||
Specialty Retail - 0.9% | |||
Home Depot, Inc. | 87,100 | 11,271 | |
TJX Companies, Inc. | 145,500 | 11,398 | |
22,669 | |||
Textiles, Apparel & Luxury Goods - 0.8% | |||
lululemon athletica, Inc. (a) | 105,716 | 6,025 | |
NIKE, Inc. Class B | 150,800 | 7,551 | |
VF Corp. | 116,200 | 6,334 | |
19,910 | |||
TOTAL CONSUMER DISCRETIONARY | 365,227 | ||
CONSUMER STAPLES - 6.9% | |||
Beverages - 1.7% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 53,800 | 8,131 | |
Molson Coors Brewing Co. Class B | 101,200 | 9,921 | |
Monster Beverage Corp. (a) | 314,300 | 14,065 | |
The Coca-Cola Co. | 233,700 | 9,430 | |
41,547 | |||
Food & Staples Retailing - 1.7% | |||
Costco Wholesale Corp. | 143,900 | 21,601 | |
CVS Health Corp. | 230,900 | 17,754 | |
Walgreens Boots Alliance, Inc. | 37,800 | 3,203 | |
42,558 | |||
Food Products - 0.3% | |||
Mead Johnson Nutrition Co. Class A | 87,600 | 6,315 | |
Personal Products - 0.4% | |||
Coty, Inc. Class A | 579,100 | 10,835 | |
Tobacco - 2.8% | |||
Altria Group, Inc. | 40,000 | 2,557 | |
British American Tobacco PLC: | |||
(United Kingdom) | 178,400 | 9,766 | |
sponsored ADR | 57,300 | 6,248 | |
Imperial Tobacco Group PLC | 134,074 | 5,759 | |
Philip Morris International, Inc. | 87,300 | 7,707 | |
Reynolds American, Inc. | 704,900 | 38,135 | |
70,172 | |||
TOTAL CONSUMER STAPLES | 171,427 | ||
ENERGY - 1.3% | |||
Oil, Gas & Consumable Fuels - 1.3% | |||
Cabot Oil & Gas Corp. | 233,500 | 5,165 | |
Devon Energy Corp. | 153,000 | 7,394 | |
PDC Energy, Inc. (a) | 100,600 | 7,490 | |
Teekay LNG Partners LP | 214,200 | 3,288 | |
The Williams Companies, Inc. | 135,500 | 4,160 | |
Williams Partners LP | 170,200 | 6,212 | |
33,709 | |||
FINANCIALS - 2.4% | |||
Banks - 0.6% | |||
Bank of the Ozarks, Inc. | 72,900 | 3,537 | |
HDFC Bank Ltd. sponsored ADR | 195,911 | 12,640 | |
16,177 | |||
Capital Markets - 1.3% | |||
BlackRock, Inc. Class A | 6,800 | 2,521 | |
CBOE Holdings, Inc. | 249,762 | 17,209 | |
MSCI, Inc. | 160,500 | 12,647 | |
32,377 | |||
Consumer Finance - 0.3% | |||
Synchrony Financial | 188,700 | 6,521 | |
Insurance - 0.2% | |||
FNF Group | 155,000 | 4,951 | |
TOTAL FINANCIALS | 60,026 | ||
HEALTH CARE - 18.0% | |||
Biotechnology - 10.0% | |||
ACADIA Pharmaceuticals, Inc. (a) | 243,800 | 6,580 | |
Agios Pharmaceuticals, Inc. (a) | 83,700 | 4,872 | |
Alexion Pharmaceuticals, Inc. (a) | 383,800 | 47,050 | |
Alkermes PLC (a) | 245,000 | 13,923 | |
Alnylam Pharmaceuticals, Inc. (a) | 243,112 | 10,665 | |
Amgen, Inc. | 265,700 | 38,279 | |
Amicus Therapeutics, Inc. (a) | 681,100 | 4,073 | |
aTyr Pharma, Inc. (a)(c) | 124,876 | 387 | |
BioMarin Pharmaceutical, Inc. (a) | 117,500 | 10,062 | |
bluebird bio, Inc. (a) | 125,200 | 7,556 | |
Coherus BioSciences, Inc. (a) | 88,294 | 2,375 | |
Five Prime Therapeutics, Inc. (a) | 67,100 | 3,860 | |
Genocea Biosciences, Inc. (a)(b) | 76,716 | 308 | |
Gilead Sciences, Inc. | 49,700 | 3,663 | |
Global Blood Therapeutics, Inc. (a) | 30,000 | 575 | |
Insmed, Inc. (a) | 365,479 | 4,989 | |
Intercept Pharmaceuticals, Inc. (a)(b) | 10,235 | 1,035 | |
Ionis Pharmaceuticals, Inc. (a) | 427,053 | 18,688 | |
Merrimack Pharmaceuticals, Inc. (a) | 437,800 | 2,412 | |
Opko Health, Inc. (a) | 1 | 0 | |
Prothena Corp. PLC (a) | 132,702 | 7,832 | |
Regeneron Pharmaceuticals, Inc. (a) | 61,200 | 23,209 | |
Regulus Therapeutics, Inc. (a) | 318,000 | 779 | |
Rigel Pharmaceuticals, Inc. (a) | 498,548 | 1,296 | |
Sage Therapeutics, Inc. (a) | 29,144 | 1,460 | |
Spark Therapeutics, Inc. (a) | 12,100 | 666 | |
TESARO, Inc. (a) | 34,300 | 4,654 | |
Vertex Pharmaceuticals, Inc. (a) | 329,690 | 26,906 | |
XOMA Corp. (a) | 54,237 | 303 | |
248,457 | |||
Health Care Equipment & Supplies - 2.5% | |||
Boston Scientific Corp. (a) | 1,236,400 | 25,297 | |
Danaher Corp. | 75,700 | 5,917 | |
Insulet Corp. (a) | 195,000 | 6,562 | |
Medtronic PLC | 342,000 | 24,969 | |
62,745 | |||
Health Care Providers & Services - 2.3% | |||
Anthem, Inc. | 220,700 | 31,456 | |
Cigna Corp. | 68,400 | 9,216 | |
McKesson Corp. | 22,500 | 3,236 | |
UnitedHealth Group, Inc. | 90,900 | 14,391 | |
58,299 | |||
Health Care Technology - 0.4% | |||
athenahealth, Inc. (a)(b) | 92,600 | 8,760 | |
Castlight Health, Inc. Class B (a) | 117,900 | 548 | |
9,308 | |||
Pharmaceuticals - 2.8% | |||
Allergan PLC | 119,590 | 23,236 | |
Endo International PLC (a) | 1,085,800 | 17,384 | |
Innoviva, Inc. (a) | 115,000 | 1,189 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 773,400 | 29,157 | |
70,966 | |||
TOTAL HEALTH CARE | 449,775 | ||
INDUSTRIALS - 4.3% | |||
Air Freight & Logistics - 0.3% | |||
FedEx Corp. | 28,000 | 5,367 | |
United Parcel Service, Inc. Class B | 27,600 | 3,199 | |
8,566 | |||
Airlines - 1.3% | |||
JetBlue Airways Corp. (a) | 31,400 | 631 | |
Southwest Airlines Co. | 18,600 | 867 | |
Spirit Airlines, Inc. (a) | 542,700 | 30,174 | |
31,672 | |||
Electrical Equipment - 0.7% | |||
Acuity Brands, Inc. | 32,900 | 8,271 | |
Fortive Corp. | 39,400 | 2,167 | |
Sunrun, Inc. (a)(b) | 1,254,600 | 6,398 | |
16,836 | |||
Industrial Conglomerates - 0.4% | |||
3M Co. | 31,700 | 5,444 | |
Honeywell International, Inc. | 46,800 | 5,332 | |
10,776 | |||
Machinery - 0.7% | |||
Allison Transmission Holdings, Inc. | 311,900 | 10,346 | |
Caterpillar, Inc. | 62,900 | 6,011 | |
16,357 | |||
Professional Services - 0.4% | |||
Equifax, Inc. | 22,200 | 2,541 | |
TransUnion Holding Co., Inc. (a) | 239,100 | 7,132 | |
9,673 | |||
Road & Rail - 0.1% | |||
J.B. Hunt Transport Services, Inc. | 33,900 | 3,233 | |
Trading Companies & Distributors - 0.4% | |||
HD Supply Holdings, Inc. (a) | 287,500 | 11,282 | |
TOTAL INDUSTRIALS | 108,395 | ||
INFORMATION TECHNOLOGY - 39.2% | |||
Electronic Equipment & Components - 0.4% | |||
CDW Corp. | 34,500 | 1,768 | |
Jabil Circuit, Inc. | 361,561 | 7,647 | |
9,415 | |||
Internet Software & Services - 11.1% | |||
Alphabet, Inc.: | |||
Class A (a) | 69,065 | 53,586 | |
Class C (a) | 120,075 | 91,022 | |
Apptio, Inc. | 4,000 | 79 | |
Coupa Software, Inc. | 3,600 | 114 | |
Criteo SA sponsored ADR (a) | 400 | 17 | |
Endurance International Group Holdings, Inc. (a)(b) | 3,472,037 | 27,603 | |
Facebook, Inc. Class A (a) | 523,841 | 62,033 | |
GoDaddy, Inc. (a)(b) | 485,949 | 17,173 | |
The Trade Desk, Inc. | 12,800 | 340 | |
Wix.com Ltd. (a) | 515,212 | 25,503 | |
277,470 | |||
IT Services - 13.0% | |||
Alliance Data Systems Corp. | 313,600 | 71,745 | |
Booz Allen Hamilton Holding Corp. Class A | 231,200 | 8,742 | |
Capgemini SA | 153,500 | 12,120 | |
Cognizant Technology Solutions Corp. Class A (a) | 851,292 | 46,889 | |
EPAM Systems, Inc. (a) | 524,700 | 34,578 | |
Euronet Worldwide, Inc. (a) | 83,900 | 6,017 | |
First Data Corp. Class A (a) | 100,200 | 1,460 | |
Global Payments, Inc. | 297,500 | 20,394 | |
Luxoft Holding, Inc. (a) | 488,500 | 26,794 | |
MasterCard, Inc. Class A | 250,800 | 25,632 | |
PayPal Holdings, Inc. (a) | 136,600 | 5,366 | |
Sabre Corp. | 577,300 | 14,923 | |
Total System Services, Inc. | 78,300 | 3,854 | |
Travelport Worldwide Ltd. | 866,700 | 12,134 | |
Visa, Inc. Class A | 434,400 | 33,588 | |
324,236 | |||
Semiconductors & Semiconductor Equipment - 1.8% | |||
NVIDIA Corp. | 71,030 | 6,549 | |
NXP Semiconductors NV (a) | 246,700 | 24,460 | |
Qualcomm, Inc. | 39,700 | 2,705 | |
SolarEdge Technologies, Inc. (a)(b) | 929,557 | 12,270 | |
45,984 | |||
Software - 7.1% | |||
Activision Blizzard, Inc. | 378,700 | 13,864 | |
Adobe Systems, Inc. (a) | 126,000 | 12,954 | |
Autodesk, Inc. (a) | 204,400 | 14,841 | |
Electronic Arts, Inc. (a) | 164,700 | 13,051 | |
Microsoft Corp. | 1,145,200 | 69,010 | |
Paycom Software, Inc. (a) | 55,587 | 2,494 | |
Red Hat, Inc. (a) | 38,230 | 3,024 | |
Salesforce.com, Inc. (a) | 518,600 | 37,339 | |
Tyler Technologies, Inc. (a) | 37,700 | 5,614 | |
Workday, Inc. Class A (a) | 61,300 | 5,169 | |
177,360 | |||
Technology Hardware, Storage & Peripherals - 5.8% | |||
Apple, Inc. | 1,303,906 | 144,110 | |
TOTAL INFORMATION TECHNOLOGY | 978,575 | ||
MATERIALS - 4.8% | |||
Chemicals - 3.7% | |||
E.I. du Pont de Nemours & Co. | 196,500 | 14,464 | |
LyondellBasell Industries NV Class A | 506,600 | 45,756 | |
Monsanto Co. | 109,300 | 11,226 | |
PPG Industries, Inc. | 168,600 | 16,174 | |
The Dow Chemical Co. | 63,200 | 3,522 | |
91,142 | |||
Containers & Packaging - 1.1% | |||
Ball Corp. | 372,100 | 27,930 | |
TOTAL MATERIALS | 119,072 | ||
REAL ESTATE - 4.7% | |||
Equity Real Estate Investment Trusts (REITs) - 4.7% | |||
American Tower Corp. | 774,600 | 79,218 | |
Extra Space Storage, Inc. | 344,400 | 24,163 | |
Public Storage | 66,500 | 13,918 | |
117,299 | |||
TELECOMMUNICATION SERVICES - 2.2% | |||
Diversified Telecommunication Services - 1.2% | |||
SBA Communications Corp. Class A (a) | 291,100 | 28,807 | |
Wireless Telecommunication Services - 1.0% | |||
T-Mobile U.S., Inc. (a) | 469,100 | 25,430 | |
TOTAL TELECOMMUNICATION SERVICES | 54,237 | ||
UTILITIES - 0.0% | |||
Electric Utilities - 0.0% | |||
DONG Energy A/S | 7,867 | 268 | |
TOTAL COMMON STOCKS | |||
(Cost $1,817,550) | 2,458,010 | ||
Convertible Preferred Stocks - 1.1% | |||
CONSUMER STAPLES - 0.2% | |||
Food & Staples Retailing - 0.1% | |||
Blue Apron, Inc. Series D (a)(d) | 217,605 | 3,149 | |
Tobacco - 0.1% | |||
PAX Labs, Inc. Series C (a)(d) | 1,069,313 | 3,176 | |
TOTAL CONSUMER STAPLES | 6,325 | ||
INFORMATION TECHNOLOGY - 0.7% | |||
Internet Software & Services - 0.5% | |||
Uber Technologies, Inc. Series D, 8.00% (a)(d) | 221,104 | 10,784 | |
Software - 0.2% | |||
Cloudera, Inc. Series F (a)(d) | 41,786 | 1,255 | |
MongoDB, Inc. Series F, 8.00% (a)(d) | 515,124 | 4,360 | |
5,615 | |||
TOTAL INFORMATION TECHNOLOGY | 16,399 | ||
REAL ESTATE - 0.2% | |||
Real Estate Management & Development - 0.2% | |||
Redfin Corp. Series G (a)(d) | 1,081,736 | 5,106 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $23,237) | 27,830 | ||
Money Market Funds - 3.5% | |||
Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | |||
(Cost $88,350) | 88,339,978 | 88,358 | |
TOTAL INVESTMENT PORTFOLIO - 103.0% | |||
(Cost $1,929,137) | 2,574,198 | ||
NET OTHER ASSETS (LIABILITIES) - (3.0)% | (75,238) | ||
NET ASSETS - 100% | $2,498,960 |
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) 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 $2,091,000 or 0.1% 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 $27,830,000 or 1.1% 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 | $34 |
Fidelity Securities Lending Cash Central Fund | 2,471 |
Total | $2,505 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 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 | $365,227 | $365,227 | $-- | $-- |
Consumer Staples | 177,752 | 161,661 | 9,766 | 6,325 |
Energy | 33,709 | 33,709 | -- | -- |
Financials | 60,026 | 60,026 | -- | -- |
Health Care | 449,775 | 449,775 | -- | -- |
Industrials | 108,395 | 108,395 | -- | -- |
Information Technology | 994,974 | 978,575 | -- | 16,399 |
Materials | 119,072 | 119,072 | -- | -- |
Real Estate | 122,405 | 117,299 | -- | 5,106 |
Telecommunication Services | 54,237 | 54,237 | -- | -- |
Utilities | 268 | 268 | -- | -- |
Money Market Funds | 88,358 | 88,358 | -- | -- |
Total Investments in Securities: | $2,574,198 | $2,536,602 | $9,766 | $27,830 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities | ||||
Beginning Balance | $25,240 | |||
Net Realized Gain (Loss) on Investment Securities | -- | |||
Net Unrealized Gain (Loss) on Investment Securities | 2,590 | |||
Cost of Purchases | -- | |||
Proceeds of Sales | -- | |||
Amortization/Accretion | -- | |||
Transfers into Level 3 | -- | |||
Transfers out of Level 3 | -- | |||
Ending Balance | $27,830 | |||
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2016 | $2,590 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 87.3% |
Ireland | 3.5% |
Netherlands | 2.9% |
Israel | 2.2% |
British Virgin Islands | 1.1% |
United Kingdom | 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) | November 30, 2016 | |
Assets | ||
Investment in securities, at value (including securities loaned of $86,273) — See accompanying schedule: Unaffiliated issuers (cost $1,840,787) | $2,485,840 | |
Fidelity Central Funds (cost $88,350) | 88,358 | |
Total Investments (cost $1,929,137) | $2,574,198 | |
Cash | 1 | |
Receivable for investments sold | 31,547 | |
Receivable for fund shares sold | 777 | |
Dividends receivable | 2,456 | |
Distributions receivable from Fidelity Central Funds | 81 | |
Prepaid expenses | 6 | |
Other receivables | 112 | |
Total assets | 2,609,178 | |
Liabilities | ||
Payable for investments purchased | $7,290 | |
Payable for fund shares redeemed | 5,393 | |
Accrued management fee | 597 | |
Distribution and service plan fees payable | 776 | |
Notes payable to affiliates | 7,150 | |
Other affiliated payables | 478 | |
Other payables and accrued expenses | 183 | |
Collateral on securities loaned, at value | 88,351 | |
Total liabilities | 110,218 | |
Net Assets | $2,498,960 | |
Net Assets consist of: | ||
Paid in capital | $1,560,308 | |
Accumulated net investment loss | (105) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 293,697 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 645,060 | |
Net Assets | $2,498,960 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($501,818 ÷ 8,616.55 shares) | $58.24 | |
Maximum offering price per share (100/94.25 of $58.24) | $61.79 | |
Class T: | ||
Net Asset Value and redemption price per share ($1,249,705 ÷ 21,549.68 shares) | $57.99 | |
Maximum offering price per share (100/96.50 of $57.99) | $60.09 | |
Class C: | ||
Net Asset Value and offering price per share ($178,201 ÷ 3,392.92 shares)(a) | $52.52 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($561,833 ÷ 9,133.24 shares) | $61.52 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($7,403 ÷ 119.75 shares) | $61.82 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2016 | |
Investment Income | ||
Dividends | $25,125 | |
Income from Fidelity Central Funds (including $2,471 from security lending) | 2,505 | |
Total income | 27,630 | |
Expenses | ||
Management fee | ||
Basic fee | $15,361 | |
Performance adjustment | (5,305) | |
Transfer agent fees | 5,369 | |
Distribution and service plan fees | 10,059 | |
Accounting and security lending fees | 850 | |
Custodian fees and expenses | 100 | |
Independent trustees' fees and expenses | 13 | |
Registration fees | 113 | |
Audit | 70 | |
Legal | 9 | |
Interest | 15 | |
Miscellaneous | 23 | |
Total expenses before reductions | 26,677 | |
Expense reductions | (98) | 26,579 |
Net investment income (loss) | 1,051 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 350,780 | |
Fidelity Central Funds | 3 | |
Foreign currency transactions | 10 | |
Total net realized gain (loss) | 350,793 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (466,911) | |
Total change in net unrealized appreciation (depreciation) | (466,911) | |
Net gain (loss) | (116,118) | |
Net increase (decrease) in net assets resulting from operations | $(115,067) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2016 | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,051 | $(6,115) |
Net realized gain (loss) | 350,793 | 500,028 |
Change in net unrealized appreciation (depreciation) | (466,911) | (309,232) |
Net increase (decrease) in net assets resulting from operations | (115,067) | 184,681 |
Distributions to shareholders from net realized gain | (371,621) | – |
Share transactions - net increase (decrease) | (448,647) | (483,133) |
Total increase (decrease) in net assets | (935,335) | (298,452) |
Net Assets | ||
Beginning of period | 3,434,295 | 3,732,747 |
End of period | $2,498,960 | $3,434,295 |
Other Information | ||
Accumulated net investment loss end of period | $(105) | $(4,687) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth Opportunities Fund Class A
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $66.87 | $63.52 | $54.89 | $41.34 | $35.39 |
Income from Investment Operations | |||||
Net investment income (loss)A | .07 | (.08) | (.11) | (.10) | (.11) |
Net realized and unrealized gain (loss) | (1.46) | 3.43 | 8.74 | 13.65 | 6.06 |
Total from investment operations | (1.39) | 3.35 | 8.63 | 13.55 | 5.95 |
Distributions from net realized gain | (7.24) | – | – | – | – |
Total distributions | (7.24) | – | – | – | – |
Net asset value, end of period | $58.24 | $66.87 | $63.52 | $54.89 | $41.34 |
Total ReturnB,C | (2.37)% | 5.27% | 15.72% | 32.78% | 16.81% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .86% | 1.05% | 1.08% | 1.23% | 1.30% |
Expenses net of fee waivers, if any | .86% | 1.05% | 1.08% | 1.23% | 1.29% |
Expenses net of all reductions | .86% | 1.05% | 1.08% | 1.23% | 1.29% |
Net investment income (loss) | .13% | (.12)% | (.18)% | (.20)% | (.29)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $502 | $664 | $648 | $555 | $359 |
Portfolio turnover rateF | 66% | 51% | 13% | 17% | 34% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth Opportunities Fund Class T
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $66.75 | $63.55 | $55.04 | $41.54 | $35.62 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.06) | (.23) | (.24) | (.19) | (.19) |
Net realized and unrealized gain (loss) | (1.46) | 3.43 | 8.75 | 13.69 | 6.11 |
Total from investment operations | (1.52) | 3.20 | 8.51 | 13.50 | 5.92 |
Distributions from net realized gain | (7.24) | – | – | – | – |
Total distributions | (7.24) | – | – | – | – |
Net asset value, end of period | $57.99 | $66.75 | $63.55 | $55.04 | $41.54 |
Total ReturnB,C | (2.59)% | 5.04% | 15.46% | 32.50% | 16.62% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.09% | 1.28% | 1.31% | 1.43% | 1.48% |
Expenses net of fee waivers, if any | 1.09% | 1.28% | 1.31% | 1.43% | 1.48% |
Expenses net of all reductions | 1.09% | 1.28% | 1.31% | 1.43% | 1.48% |
Net investment income (loss) | (.10)% | (.35)% | (.40)% | (.40)% | (.48)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $1,250 | $1,461 | $1,504 | $1,426 | $1,187 |
Portfolio turnover rateF | 66% | 51% | 13% | 17% | 34% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth Opportunities Fund Class C
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $61.42 | $58.78 | $51.17 | $38.83 | $33.48 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.32) | (.52) | (.50) | (.42) | (.38) |
Net realized and unrealized gain (loss) | (1.34) | 3.16 | 8.11 | 12.76 | 5.73 |
Total from investment operations | (1.66) | 2.64 | 7.61 | 12.34 | 5.35 |
Distributions from net realized gain | (7.24) | – | – | – | – |
Total distributions | (7.24) | – | – | – | – |
Net asset value, end of period | $52.52 | $61.42 | $58.78 | $51.17 | $38.83 |
Total ReturnB,C | (3.10)% | 4.49% | 14.87% | 31.78% | 15.98% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.61% | 1.80% | 1.83% | 1.96% | 2.04% |
Expenses net of fee waivers, if any | 1.61% | 1.80% | 1.83% | 1.96% | 2.03% |
Expenses net of all reductions | 1.61% | 1.80% | 1.83% | 1.96% | 2.02% |
Net investment income (loss) | (.62)% | (.87)% | (.93)% | (.93)% | (1.02)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $178 | $238 | $212 | $159 | $71 |
Portfolio turnover rateF | 66% | 51% | 13% | 17% | 34% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the contingent deferred sales charge.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth Opportunities Fund Class I
Years ended November 30, | 2016 | 2015 | 2014 | 2013 | 2012 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $70.05 | $66.35 | $57.18 | $42.94 | $36.63 |
Income from Investment Operations | |||||
Net investment income (loss)A | .25 | .11 | .05 | .05 | .01 |
Net realized and unrealized gain (loss) | (1.54) | 3.59 | 9.12 | 14.19 | 6.30 |
Total from investment operations | (1.29) | 3.70 | 9.17 | 14.24 | 6.31 |
Distributions from net realized gain | (7.24) | – | – | – | – |
Total distributions | (7.24) | – | – | – | – |
Net asset value, end of period | $61.52 | $70.05 | $66.35 | $57.18 | $42.94 |
Total ReturnB | (2.09)% | 5.58% | 16.04% | 33.16% | 17.23% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | .58% | .77% | .81% | .93% | .97% |
Expenses net of fee waivers, if any | .58% | .77% | .81% | .93% | .97% |
Expenses net of all reductions | .58% | .77% | .81% | .93% | .97% |
Net investment income (loss) | .41% | .16% | .09% | .09% | .04% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $562 | $1,061 | $1,357 | $1,112 | $475 |
Portfolio turnover rateE | 66% | 51% | 13% | 17% | 34% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C 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.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or 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.
E 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
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 | .33 | .20 | .14 | .02 |
Net realized and unrealized gain (loss) | (1.54) | 3.59 | 9.14 | 3.88 |
Total from investment operations | (1.21) | 3.79 | 9.28 | 3.90 |
Distributions from net realized gain | (7.24) | – | – | – |
Total distributions | (7.24) | – | – | – |
Net asset value, end of period | $61.82 | $70.27 | $66.48 | $57.20 |
Total ReturnC,D | (1.96)% | 5.70% | 16.22% | 7.32% |
Ratios to Average Net AssetsE,F | ||||
Expenses before reductions | .45% | .64% | .67% | .78%G |
Expenses net of fee waivers, if any | .45% | .64% | .67% | .78%G |
Expenses net of all reductions | .45% | .64% | .67% | .78%G |
Net investment income (loss) | .54% | .29% | .24% | .14%G |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $7,403 | $4,597 | $2,955 | $107 |
Portfolio turnover rateH | 66% | 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
For the period ended November 30, 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period December 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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 11/30/16 | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $ 27,830 | Market approach | Discount rate | 3.0% - 63.0% / 26.8% | Decrease |
Transaction price | $48.77 | Increase | |||
Discount for lack of marketability | 4.0% - 15.0% / 11.0% | Decrease | |||
Premium rate | 8.0% - 130.0% / 33.4% | Increase | |||
Market comparable | Enterprise value/Sales multiple (EV/S) | 1.7 - 5.6 / 3.3 | Increase | ||
Enterprise value/Gross profit multiple (EV/GP) | 5.1 | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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. As of November 30, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, passive foreign investment companies (PFIC), deferred trustees compensation, 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 | $762,626 |
Gross unrealized depreciation | (130,424) |
Net unrealized appreciation (depreciation) on securities | $632,202 |
Tax Cost | $1,941,996 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $306,557 |
Net unrealized appreciation (depreciation) on securities and other investments | $632,201 |
The tax character of distributions paid was as follows:
November 30, 2016 | November 30, 2015 | |
Long-term Capital Gains | $ 371,621 | $ - |
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 $1,850,659 and $2,679,531, 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 annual management fee rate, including the performance adjustment, was .36% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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% | $1,431 | $15 |
Class T | .25% | .25% | 6,536 | – |
Class B | .75% | .25% | 23 | 17 |
Class C | .75% | .25% | 2,069 | 232 |
$10,059 | $264 |
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 | $100 |
Class T | 29 |
Class B(a) | –(b) |
Class C(a) | 23 |
$152 |
(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 | |
Class A | $1,215 | .21 |
Class T | 2,447 | .19 |
Class B | 6 | .28 |
Class C | 435 | .21 |
Class I | 1,263 | .18 |
Class Z | 3 | .05 |
$5,369 |
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 $58 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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Fund's Statement of Assets and Liabilities. 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 | $12,534 | .60% | $14 |
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 $43.
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 $7 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 $20. 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 $76 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 $1 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 $74 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 $24.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2016 | Year ended November 30, 2015 | |
From net realized gain | ||
Class A | $72,321 | $– |
Class T | 159,663 | – |
Class B | 693 | – |
Class C | 28,157 | – |
Class I | 110,148 | – |
Class Z | 639 | – |
Total | $371,621 | $– |
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 | |
Year ended November 30, 2016 | Year ended November 30, 2015 | Year ended November 30, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 1,311 | 2,042 | $74,507 | $132,799 |
Reinvestment of distributions | 1,108 | – | 66,937 | – |
Shares redeemed | (3,734) | (2,310) | (212,794) | (150,069) |
Net increase (decrease) | (1,315) | (268) | $(71,350) | $(17,270) |
Class T | ||||
Shares sold | 1,836 | 2,048 | $103,265 | $132,934 |
Reinvestment of distributions | 2,514 | – | 151,539 | – |
Shares redeemed | (4,690) | (3,816) | (265,874) | (247,857) |
Net increase (decrease) | (340) | (1,768) | $(11,070) | $(114,923) |
Class B | ||||
Shares sold | 1 | 8 | $86 | $496 |
Reinvestment of distributions | 12 | – | 660 | – |
Shares redeemed | (109) | (60) | (5,429) | (3,572) |
Net increase (decrease) | (96) | (52) | $(4,683) | $(3,076) |
Class C | ||||
Shares sold | 580 | 976 | $30,299 | $58,121 |
Reinvestment of distributions | 428 | – | 23,475 | – |
Shares redeemed | (1,488) | (715) | (77,315) | (42,885) |
Net increase (decrease) | (480) | 261 | $(23,541) | $15,236 |
Class I | ||||
Shares sold | 2,036 | 3,352 | $122,538 | $227,344 |
Reinvestment of distributions | 1,258 | – | 79,978 | – |
Shares redeemed | (9,303) | (8,670) | (544,163) | (591,814) |
Net increase (decrease) | (6,009) | (5,318) | $(341,647) | $(364,470) |
Class Z | ||||
Shares sold | 79 | 30 | $5,053 | $1,991 |
Reinvestment of distributions | 10 | – | 639 | – |
Shares redeemed | (34) | (9) | (2,048) | (621) |
Net increase (decrease) | 55 | 21 | $3,644 | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Growth Opportunities Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Growth Opportunities Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of November 30, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Growth Opportunities Fund as of November 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present) and the Finance Committee of the Asolo Repertory Theatre (2016-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and currently Vice Chair of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including 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 (June 1, 2016 to November 30, 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 June 1, 2016 | Ending Account Value November 30, 2016 | Expenses Paid During Period-B June 1, 2016 to November 30, 2016 | |
Class A | .80% | |||
Actual | $1,000.00 | $1,011.60 | $4.02 | |
Hypothetical-C | $1,000.00 | $1,021.00 | $4.04 | |
Class T | 1.03% | |||
Actual | $1,000.00 | $1,010.50 | $5.18 | |
Hypothetical-C | $1,000.00 | $1,019.85 | $5.20 | |
Class C | 1.55% | |||
Actual | $1,000.00 | $1,007.90 | $7.78 | |
Hypothetical-C | $1,000.00 | $1,017.25 | $7.82 | |
Class I | .50% | |||
Actual | $1,000.00 | $1,013.20 | $2.52 | |
Hypothetical-C | $1,000.00 | $1,022.50 | $2.53 | |
Class Z | .40% | |||
Actual | $1,000.00 | $1,013.80 | $2.01 | |
Hypothetical-C | $1,000.00 | $1,023.00 | $2.02 |
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
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Growth Opportunities Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Growth Opportunities Fund | ||||
Class A | 12/28/16 | 12/27/16 | $0.000 | $7.382 |
Class T | 12/28/16 | 12/27/16 | $0.000 | $7.382 |
Class C | 12/28/16 | 12/27/16 | $0.000 | $7.382 |
Class I | 12/28/16 | 12/27/16 | $0.000 | $7.382 |
Class Z | 12/28/16 | 12/27/16 | $0.000 | $7.382 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 2016, $358,341,907 or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Growth Opportunities Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there were portfolio management changes for the fund in March 2015 and July 2015.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Growth Opportunities Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190629090.jpg)
Fidelity Advisor Growth Opportunities Fund
![](https://capedge.com/proxy/N-CSR/0001379491-17-000250/img190629341.jpg)
GO-ANN-0117
1.704314.119
Item 2.
Code of Ethics
As of the end of the period, November 30, 2016, Fidelity Advisor Series I (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its
President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity 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 Growth Opportunities Fund, Fidelity Advisor Stock Selector Mid Cap Fund, and Fidelity Advisor Value Strategies Fund (the “Funds”):
Services Billed by Deloitte Entities
November 30, 2016 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Equity Growth Fund | $49,000 | $- | $6,200 | $1,400 |
Fidelity Advisor Equity Income Fund | $47,000 | $- | $7,400 | $1,300 |
Fidelity Advisor Equity Value Fund | $50,000 | $- | $7,200 | $1,400 |
Fidelity Advisor Growth & Income Fund | $45,000 | $- | $5,500 | $1,300 |
Fidelity Advisor Growth Opportunities Fund | $53,000 | $- | $6,200 | $1,500 |
Fidelity Advisor Large Cap Fund | $46,000 | $- | $5,500 | $1,300 |
Fidelity Advisor Series Growth Opportunities Fund | $50,000 | $- | $6,500 | $1,400 |
Fidelity Advisor Stock Selector Mid Cap Fund | $45,000 | $- | $5,500 | $1,300 |
Fidelity Advisor Value Strategies Fund | $46,000 | $- | $7,200 | $1,300 |
November 30, 2015 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Equity Growth Fund | $54,000 | $- | $6,100 | $1,200 |
Fidelity Advisor Equity Income Fund | $45,000 | $- | $8,600 | $1,100 |
Fidelity Advisor Equity Value Fund | $49,000 | $- | $6,400 | $700 |
Fidelity Advisor Growth & Income Fund | $44,000 | $- | $6,000 | $700 |
Fidelity Advisor Growth Opportunities Fund | $50,000 | $- | $5,800 | $1,400 |
Fidelity Advisor Large Cap Fund | $44,000 | $- | $6,100 | $900 |
Fidelity Advisor Series Growth Opportunities Fund | $46,000 | $- | $5,800 | $800 |
Fidelity Advisor Stock Selector Mid Cap Fund | $45,000 | $- | $5,500 | $1,200 |
Fidelity Advisor Value Strategies Fund | $45,000 | $- | $6,900 | $900 |
A Amounts may reflect rounding.
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity Advisor Dividend Growth Fund, Fidelity Advisor Series Equity Growth Fund, Fidelity Advisor Series Small Cap Fund, and Fidelity Advisor Small Cap Fund (the “Funds”):
Services Billed by PwC
November 30, 2016 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Dividend Growth Fund | $59,000 | $- | $3,700 | $2,500 |
Fidelity Advisor Series Equity Growth Fund | $35,000 | $- | $3,000 | $1,500 |
Fidelity Advisor Series Small Cap Fund | $46,000 | $- | $3,700 | $2,000 |
Fidelity Advisor Small Cap Fund | $49,000 | $- | $3,700 | $2,200 |
November 30, 2015 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Dividend Growth Fund | $57,000 | $- | $5,400 | $2,100 |
Fidelity Advisor Series Equity Growth Fund | $32,000 | $- | $3,100 | $2,000 |
Fidelity Advisor Series Small Cap Fund | $45,000 | $- | $3,700 | $1,900 |
Fidelity Advisor Small Cap Fund | $50,000 | $- | $3,700 | $2,800 |
|
|
|
|
|
A Amounts may reflect rounding.
The following table presents fees billed by PwC and Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company (“FMR”) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (“Fund Service Providers”):
Services Billed by Deloitte Entities
| November 30, 2016A | November 30, 2015A |
Audit-Related Fees | $35,000 | $- |
Tax Fees | $- | $10,000 |
All Other Fees | $- | $10,000 |
A Amounts may reflect rounding.
Services Billed by PwC
| November 30, 2016A | November 30, 2015A |
Audit-Related Fees | $5,315,000 | $5,890,000 |
Tax Fees | $10,000 | $- |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by PwC and Deloitte Entities for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | November 30, 2016 A | November 30, 2015 A |
Deloitte Entities | $335,000 | $195,000 |
PwC | $6,620,000 | $7,075,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC and Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of PwC and Deloitte Entities in their audits of the Funds, taking into account representations from PwC and Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding their independence from the Funds and their related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) for each Fund provide reasonable assurances that material information relating to such Fund 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 a Fund’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, a Fund’s internal control over financial reporting.
Item 12.
Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Advisor Series I
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
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|
Date: | January 25, 2017 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
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|
Date: | January 25, 2017 |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
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|
Date: | January 25, 2017 |