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)
William C. Coffey, 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, 2018 |
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® Dividend Growth Fund Class A, Class M, Class C, Class I and Class Z Annual Report November 30, 2018 |
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Account Type | Website | Phone Number |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (1.33)% | 7.10% | 14.29% |
Class M (incl. 3.50% sales charge) | 0.73% | 7.34% | 14.29% |
Class C (incl. contingent deferred sales charge) | 2.97% | 7.55% | 14.12% |
Class I | 4.93% | 8.64% | 15.28% |
Class Z | 5.10% | 8.81% | 15.38% |
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.
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, 2008, 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/0001379491-19-000231/img446437713_740.jpg)
Period Ending Values | ||
$38,035 | Fidelity Advisor® Dividend Growth Fund - Class A | |
$38,109 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Gordon Scott: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 4% to 5%, trailing the benchmark S&P 500®. Versus the benchmark, stock picking in the consumer discretionary and consumer staples sectors detracted most from fund performance. Positioning among industrials and health care stocks also weighed on the portfolio’s relative result, although to a lesser extent. At the individual stock level, avoiding Amazon.com made this key benchmark component the fund’s largest relative detractor. Despite its strong performance, an elevated valuation and lack of a dividend made the stock inappropriate for the fund, in my view. An underweighting in software giant Microsoft - which I sold - also detracted from our relative result, as did positioning in General Electric. Conversely, stock picking in communication services and financials lifted our relative result, as did choices in energy by a smaller margin. Not owning social network provider Facebook made this weak-performing index name the fund’s top relative contributor. Our sizable overweight positions and confidence in cable and media giant Comcast and in conglomerate Berkshire Hathaway also were rewarded during the period. Berkshire was the fund’s largest holding as of November 30 and a position I meaningfully added to this period.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 January 1, 2018, Gordon Scott became sole Portfolio Manager of the fund, after having served as Co-Manager alongside Ramona Persaud since April 2017.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Berkshire Hathaway, Inc. Class B | 7.5 |
Comcast Corp. Class A | 5.9 |
Exxon Mobil Corp. | 3.8 |
Altria Group, Inc. | 3.3 |
General Electric Co. | 3.2 |
Verizon Communications, Inc. | 2.9 |
Chevron Corp. | 2.8 |
Johnson & Johnson | 2.5 |
Apple, Inc. | 2.4 |
Wells Fargo & Co. | 2.1 |
36.4 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 22.2 |
Industrials | 15.2 |
Health Care | 15.1 |
Communication Services | 11.0 |
Consumer Staples | 9.4 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018 * | ||
Stocks | 94.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.5% |
* Foreign investments - 2.7%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 94.5% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 11.0% | |||
Diversified Telecommunication Services - 2.9% | |||
Verizon Communications, Inc. | 491,200 | $29,619 | |
Media - 8.1% | |||
Comcast Corp. Class A | 1,555,650 | 60,686 | |
GCI Liberty, Inc. (a) | 82,700 | 3,959 | |
Interpublic Group of Companies, Inc. | 401,600 | 9,438 | |
Liberty Broadband Corp. Class A (a) | 41,400 | 3,524 | |
Omnicom Group, Inc. | 83,100 | 6,396 | |
84,003 | |||
TOTAL COMMUNICATION SERVICES | 113,622 | ||
CONSUMER DISCRETIONARY - 5.3% | |||
Auto Components - 0.9% | |||
BorgWarner, Inc. | 65,000 | 2,573 | |
Gentex Corp. | 187,700 | 4,227 | |
Lear Corp. | 21,500 | 2,929 | |
9,729 | |||
Distributors - 0.9% | |||
LKQ Corp. (a) | 349,100 | 9,719 | |
Diversified Consumer Services - 0.5% | |||
H&R Block, Inc. | 187,600 | 5,067 | |
Household Durables - 2.0% | |||
Lennar Corp.: | |||
Class A | 83,500 | 3,568 | |
Class B | 1,908 | 66 | |
Mohawk Industries, Inc. (a) | 40,900 | 5,238 | |
NVR, Inc. (a) | 4,900 | 12,005 | |
20,877 | |||
Multiline Retail - 0.7% | |||
Dollar Tree, Inc. (a) | 77,200 | 6,699 | |
Specialty Retail - 0.3% | |||
AutoZone, Inc. (a) | 3,500 | 2,832 | |
TOTAL CONSUMER DISCRETIONARY | 54,923 | ||
CONSUMER STAPLES - 9.4% | |||
Food & Staples Retailing - 1.1% | |||
Walgreens Boots Alliance, Inc. | 126,900 | 10,745 | |
Food Products - 2.3% | |||
Ingredion, Inc. | 48,600 | 5,077 | |
The Hershey Co. | 50,100 | 5,426 | |
The Kraft Heinz Co. | 262,800 | 13,434 | |
23,937 | |||
Household Products - 1.6% | |||
Kimberly-Clark Corp. | 80,300 | 9,264 | |
Spectrum Brands Holdings, Inc. | 144,514 | 7,136 | |
16,400 | |||
Tobacco - 4.4% | |||
Altria Group, Inc. | 619,213 | 33,951 | |
Philip Morris International, Inc. | 133,700 | 11,569 | |
45,520 | |||
TOTAL CONSUMER STAPLES | 96,602 | ||
ENERGY - 6.6% | |||
Oil, Gas & Consumable Fuels - 6.6% | |||
Chevron Corp. | 243,990 | 29,020 | |
Exxon Mobil Corp. | 486,322 | 38,663 | |
67,683 | |||
FINANCIALS - 22.2% | |||
Banks - 8.9% | |||
Bank of America Corp. | 680,203 | 19,318 | |
JPMorgan Chase & Co. | 89,893 | 9,995 | |
M&T Bank Corp. | 70,300 | 11,881 | |
PNC Financial Services Group, Inc. | 98,600 | 13,388 | |
Signature Bank | 18,200 | 2,245 | |
U.S. Bancorp | 241,500 | 13,152 | |
Wells Fargo & Co. | 396,190 | 21,505 | |
91,484 | |||
Capital Markets - 0.3% | |||
Oaktree Capital Group LLC Class A | 78,100 | 3,235 | |
Consumer Finance - 0.9% | |||
American Express Co. | 86,200 | 9,678 | |
Imperial Holdings, Inc. warrants 4/11/19 (a) | 4,481 | 0 | |
9,678 | |||
Diversified Financial Services - 7.5% | |||
Berkshire Hathaway, Inc. Class B (a) | 352,100 | 76,841 | |
Insurance - 4.6% | |||
Allstate Corp. | 73,800 | 6,582 | |
Chubb Ltd. | 95,100 | 12,719 | |
The Travelers Companies, Inc. | 140,400 | 18,304 | |
Torchmark Corp. | 117,500 | 10,153 | |
47,758 | |||
TOTAL FINANCIALS | 228,996 | ||
HEALTH CARE - 15.1% | |||
Biotechnology - 1.0% | |||
Amgen, Inc. | 28,037 | 5,839 | |
Gilead Sciences, Inc. | 59,900 | 4,309 | |
10,148 | |||
Health Care Providers & Services - 9.5% | |||
AmerisourceBergen Corp. | 51,700 | 4,596 | |
Anthem, Inc. | 59,400 | 17,230 | |
Cardinal Health, Inc. | 113,700 | 6,234 | |
Cigna Corp. | 70,600 | 15,771 | |
CVS Health Corp. | 216,900 | 17,395 | |
Express Scripts Holding Co. (a) | 13,600 | 1,380 | |
McKesson Corp. | 34,000 | 4,233 | |
Quest Diagnostics, Inc. | 95,100 | 8,423 | |
UnitedHealth Group, Inc. | 57,400 | 16,150 | |
Universal Health Services, Inc. Class B | 45,500 | 6,279 | |
97,691 | |||
Pharmaceuticals - 4.6% | |||
Bayer AG | 94,400 | 6,927 | |
Bristol-Myers Squibb Co. | 95,700 | 5,116 | |
Johnson & Johnson | 173,302 | 25,458 | |
Pfizer, Inc. | 211,400 | 9,773 | |
47,274 | |||
TOTAL HEALTH CARE | 155,113 | ||
INDUSTRIALS - 15.2% | |||
Aerospace & Defense - 0.6% | |||
United Technologies Corp. | 54,200 | 6,604 | |
Air Freight & Logistics - 1.4% | |||
United Parcel Service, Inc. Class B | 130,400 | 15,034 | |
Airlines - 1.3% | |||
Delta Air Lines, Inc. | 145,500 | 8,833 | |
Southwest Airlines Co. | 76,800 | 4,194 | |
13,027 | |||
Commercial Services & Supplies - 0.4% | |||
Deluxe Corp. | 79,800 | 4,018 | |
Electrical Equipment - 0.5% | |||
Acuity Brands, Inc. | 38,000 | 4,941 | |
Industrial Conglomerates - 3.2% | |||
General Electric Co. | 4,418,600 | 33,140 | |
Machinery - 3.9% | |||
Allison Transmission Holdings, Inc. | 87,143 | 4,105 | |
Cummins, Inc. | 40,600 | 6,133 | |
PACCAR, Inc. | 161,900 | 10,073 | |
Snap-On, Inc. | 58,400 | 9,708 | |
WABCO Holdings, Inc. (a) | 85,400 | 10,372 | |
40,391 | |||
Professional Services - 0.3% | |||
Dun & Bradstreet Corp. | 19,300 | 2,770 | |
Road & Rail - 3.6% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 340,300 | 11,795 | |
Norfolk Southern Corp. | 56,300 | 9,613 | |
Union Pacific Corp. | 99,700 | 15,332 | |
36,740 | |||
TOTAL INDUSTRIALS | 156,665 | ||
INFORMATION TECHNOLOGY - 7.2% | |||
Communications Equipment - 0.7% | |||
Cisco Systems, Inc. | 148,479 | 7,108 | |
IT Services - 1.5% | |||
Amdocs Ltd. | 131,200 | 8,516 | |
IBM Corp. | 52,500 | 6,524 | |
15,040 | |||
Semiconductors & Semiconductor Equipment - 0.5% | |||
Applied Materials, Inc. | 59,000 | 2,200 | |
KLA-Tencor Corp. | 16,200 | 1,597 | |
Lam Research Corp. | 10,200 | 1,601 | |
5,398 | |||
Software - 1.8% | |||
Oracle Corp. | 371,800 | 18,129 | |
Technology Hardware, Storage & Peripherals - 2.7% | |||
Apple, Inc. | 141,724 | 25,309 | |
HP, Inc. | 130,000 | 2,990 | |
28,299 | |||
TOTAL INFORMATION TECHNOLOGY | 73,974 | ||
MATERIALS - 1.1% | |||
Chemicals - 1.1% | |||
DowDuPont, Inc. | 189,700 | 10,974 | |
REAL ESTATE - 0.2% | |||
Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
CorePoint Lodging, Inc. | 120,500 | 1,695 | |
UTILITIES - 1.2% | |||
Electric Utilities - 1.2% | |||
PPL Corp. | 400,100 | 12,239 | |
TOTAL COMMON STOCKS | |||
(Cost $899,517) | 972,486 | ||
Money Market Funds - 6.0% | |||
Fidelity Cash Central Fund, 2.27% (b) | |||
(Cost $62,083) | 62,071,459 | 62,084 | |
TOTAL INVESTMENT IN SECURITIES - 100.5% | |||
(Cost $961,600) | 1,034,570 | ||
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (5,387) | ||
NET ASSETS - 100% | $1,029,183 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $942 |
Fidelity Securities Lending Cash Central Fund | 15 |
Total | $957 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $113,622 | $113,622 | $-- | $-- |
Consumer Discretionary | 54,923 | 54,923 | -- | -- |
Consumer Staples | 96,602 | 96,602 | -- | -- |
Energy | 67,683 | 67,683 | -- | -- |
Financials | 228,996 | 228,996 | -- | -- |
Health Care | 155,113 | 148,186 | 6,927 | -- |
Industrials | 156,665 | 156,665 | -- | -- |
Information Technology | 73,974 | 73,974 | -- | -- |
Materials | 10,974 | 10,974 | -- | -- |
Real Estate | 1,695 | 1,695 | -- | -- |
Utilities | 12,239 | 12,239 | -- | -- |
Money Market Funds | 62,084 | 62,084 | -- | -- |
Total Investments in Securities: | $1,034,570 | $1,027,643 | $6,927 | $-- |
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, 2018 | |
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $899,517) | $972,486 | |
Fidelity Central Funds (cost $62,083) | 62,084 | |
Total Investment in Securities (cost $961,600) | $1,034,570 | |
Receivable for fund shares sold | 282 | |
Dividends receivable | 2,571 | |
Distributions receivable from Fidelity Central Funds | 107 | |
Prepaid expenses | 2 | |
Other receivables | 65 | |
Total assets | 1,037,597 | |
Liabilities | ||
Payable for investments purchased | $6,146 | |
Payable for fund shares redeemed | 1,351 | |
Accrued management fee | 318 | |
Distribution and service plan fees payable | 337 | |
Other affiliated payables | 192 | |
Other payables and accrued expenses | 70 | |
Total liabilities | 8,414 | |
Net Assets | $1,029,183 | |
Net Assets consist of: | ||
Paid in capital | $818,265 | |
Total distributable earnings (loss) | 210,918 | |
Net Assets | $1,029,183 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($353,310 ÷ 19,661.9 shares) | $17.97 | |
Maximum offering price per share (100/94.25 of $17.97) | $19.07 | |
Class M: | ||
Net Asset Value and redemption price per share ($362,600 ÷ 20,308.1 shares) | $17.85 | |
Maximum offering price per share (100/96.50 of $17.85) | $18.50 | |
Class C: | ||
Net Asset Value and offering price per share ($137,002 ÷ 8,095.9 shares)(a) | $16.92 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($165,796 ÷ 8,738.4 shares) | $18.97 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($10,475 ÷ 543.3 shares) | $19.28 |
(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, 2018 | |
Investment Income | ||
Dividends | $24,367 | |
Interest | 32 | |
Income from Fidelity Central Funds | 957 | |
Total income | 25,356 | |
Expenses | ||
Management fee | ||
Basic fee | $5,675 | |
Performance adjustment | (2,007) | |
Transfer agent fees | 2,012 | |
Distribution and service plan fees | 4,213 | |
Accounting and security lending fees | 347 | |
Custodian fees and expenses | 46 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 86 | |
Audit | 68 | |
Legal | 8 | |
Miscellaneous | 7 | |
Total expenses before reductions | 10,460 | |
Expense reductions | (113) | |
Total expenses after reductions | 10,347 | |
Net investment income (loss) | 15,009 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 140,487 | |
Fidelity Central Funds | 1 | |
Foreign currency transactions | (9) | |
Total net realized gain (loss) | 140,479 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (109,063) | |
Fidelity Central Funds | (2) | |
Assets and liabilities in foreign currencies | (4) | |
Total change in net unrealized appreciation (depreciation) | (109,069) | |
Net gain (loss) | 31,410 | |
Net increase (decrease) in net assets resulting from operations | $46,419 |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $15,009 | $12,222 |
Net realized gain (loss) | 140,479 | 158,486 |
Change in net unrealized appreciation (depreciation) | (109,069) | 13,915 |
Net increase (decrease) in net assets resulting from operations | 46,419 | 184,623 |
Distributions to shareholders | (155,466) | – |
Distributions to shareholders from net investment income | – | (10,211) |
Total distributions | (155,466) | (10,211) |
Share transactions - net increase (decrease) | 51,408 | (73,859) |
Total increase (decrease) in net assets | (57,639) | 100,553 |
Net Assets | ||
Beginning of period | 1,086,822 | 986,269 |
End of period | $1,029,183 | $1,086,822 |
Other Information | ||
Undistributed net investment income end of period | $11,166 |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $20.01 | $16.90 | $17.35 | $19.65 | $17.23 |
Income from Investment Operations | |||||
Net investment income (loss)A | .28 | .25 | .21 | .20 | .23B |
Net realized and unrealized gain (loss) | .58 | 3.07 | .46 | (.34)C | 2.29 |
Total from investment operations | .86 | 3.32 | .67 | (.14) | 2.52 |
Distributions from net investment income | (.26) | (.21) | (.18) | (.19) | (.09) |
Distributions from net realized gain | (2.65) | – | (.94) | (1.96) | (.01) |
Total distributions | (2.90)D | (.21) | (1.12) | (2.16)E | (.10) |
Net asset value, end of period | $17.97 | $20.01 | $16.90 | $17.35 | $19.65 |
Total ReturnF,G | 4.69% | 19.81% | 4.36% | (.41)%C | 14.70% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .84% | .85% | .90% | 1.01% | .94% |
Expenses net of fee waivers, if any | .84% | .85% | .90% | 1.00% | .94% |
Expenses net of all reductions | .83% | .84% | .90% | 1.00% | .94% |
Net investment income (loss) | 1.58% | 1.36% | 1.33% | 1.13% | 1.29%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $353 | $376 | $355 | $356 | $386 |
Portfolio turnover rateJ | 110% | 73% | 31% | 56% | 106% |
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 $2.90 per share is comprised of distributions from net investment income of $.255 and distributions from net realized gain of $2.648 per share.
E 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.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J 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.
Fidelity Advisor Dividend Growth Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.90 | $16.81 | $17.25 | $19.55 | $17.15 |
Income from Investment Operations | |||||
Net investment income (loss)A | .24 | .20 | .17 | .15 | .19B |
Net realized and unrealized gain (loss) | .57 | 3.05 | .47 | (.34)C | 2.27 |
Total from investment operations | .81 | 3.25 | .64 | (.19) | 2.46 |
Distributions from net investment income | (.21) | (.16) | (.14) | (.15) | (.06) |
Distributions from net realized gain | (2.65) | – | (.94) | (1.96) | (.01) |
Total distributions | (2.86) | (.16) | (1.08) | (2.11) | (.06)D |
Net asset value, end of period | $17.85 | $19.90 | $16.81 | $17.25 | $19.55 |
Total ReturnE,F | 4.38% | 19.50% | 4.15% | (.67)%C | 14.41% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.09% | 1.09% | 1.14% | 1.24% | 1.18% |
Expenses net of fee waivers, if any | 1.09% | 1.09% | 1.14% | 1.24% | 1.18% |
Expenses net of all reductions | 1.08% | 1.09% | 1.14% | 1.24% | 1.17% |
Net investment income (loss) | 1.33% | 1.11% | 1.09% | .89% | 1.05%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $363 | $374 | $351 | $372 | $412 |
Portfolio turnover rateI | 110% | 73% | 31% | 56% | 106% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .83%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.77)%.
D Total distributions of $.06 per share is comprised of distributions from net investment income of $.055 and distributions from net realized gain of $.007 per share.
E Total returns 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.
Fidelity Advisor Dividend Growth Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.00 | $16.06 | $16.53 | $18.82 | $16.54 |
Income from Investment Operations | |||||
Net investment income (loss)A | .14 | .10 | .09 | .06 | .09B |
Net realized and unrealized gain (loss) | .54 | 2.92 | .44 | (.32)C | 2.20 |
Total from investment operations | .68 | 3.02 | .53 | (.26) | 2.29 |
Distributions from net investment income | (.12) | (.08) | (.06) | (.06) | – |
Distributions from net realized gain | (2.65) | – | (.94) | (1.96) | (.01) |
Total distributions | (2.76)D | (.08) | (1.00) | (2.03)E | (.01) |
Net asset value, end of period | $16.92 | $19.00 | $16.06 | $16.53 | $18.82 |
Total ReturnF,G | 3.86% | 18.88% | 3.58% | (1.16)%C | 13.83% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.61% | 1.61% | 1.66% | 1.76% | 1.69% |
Expenses net of fee waivers, if any | 1.61% | 1.61% | 1.66% | 1.76% | 1.69% |
Expenses net of all reductions | 1.60% | 1.61% | 1.66% | 1.76% | 1.69% |
Net investment income (loss) | .81% | .59% | .57% | .37% | .54%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $137 | $160 | $154 | $167 | $179 |
Portfolio turnover rateJ | 110% | 73% | 31% | 56% | 106% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .32%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (1.26)%.
D Total distributions of $2.76 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $2.648 per share.
E 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.
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.
Fidelity Advisor Dividend Growth Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $20.97 | $17.70 | $18.12 | $20.42 | $17.91 |
Income from Investment Operations | |||||
Net investment income (loss)A | .34 | .30 | .26 | .25 | .29B |
Net realized and unrealized gain (loss) | .61 | 3.21 | .49 | (.35)C | 2.37 |
Total from investment operations | .95 | 3.51 | .75 | (.10) | 2.66 |
Distributions from net investment income | (.30) | (.24) | (.22) | (.24) | (.14) |
Distributions from net realized gain | (2.65) | – | (.94) | (1.96) | (.01) |
Total distributions | (2.95) | (.24) | (1.17)D | (2.20) | (.15) |
Net asset value, end of period | $18.97 | $20.97 | $17.70 | $18.12 | $20.42 |
Total ReturnE | 4.93% | 20.07% | 4.60% | (.14)%C | 14.99% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .60% | .61% | .67% | .76% | .69% |
Expenses net of fee waivers, if any | .60% | .61% | .67% | .76% | .69% |
Expenses net of all reductions | .59% | .60% | .66% | .76% | .69% |
Net investment income (loss) | 1.82% | 1.59% | 1.57% | 1.37% | 1.54%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $166 | $170 | $123 | $125 | $131 |
Portfolio turnover rateH | 110% | 73% | 31% | 56% | 106% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.32%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.24)%.
D Total distributions of $1.17 per share is comprised of distributions from net investment income of $.224 and distributions from net realized gain of $.941 per share.
E Total returns 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.
Fidelity Advisor Dividend Growth Fund Class Z
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $21.27 | $17.95 | $18.36 | $20.44 | $17.92 |
Income from Investment Operations | |||||
Net investment income (loss)A | .38 | .34 | .29 | .28 | .31B |
Net realized and unrealized gain (loss) | .62 | 3.24 | .50 | (.35)C | 2.38 |
Total from investment operations | 1.00 | 3.58 | .79 | (.07) | 2.69 |
Distributions from net investment income | (.34) | (.26) | (.26) | (.05) | (.17) |
Distributions from net realized gain | (2.65) | – | (.94) | (1.96) | (.01) |
Total distributions | (2.99) | (.26) | (1.20) | (2.01) | (.17)D |
Net asset value, end of period | $19.28 | $21.27 | $17.95 | $18.36 | $20.44 |
Total ReturnE | 5.10% | 20.21% | 4.80% | (.01)%C | 15.20% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .45% | .45% | .49% | .59% | .52% |
Expenses net of fee waivers, if any | .45% | .45% | .49% | .59% | .52% |
Expenses net of all reductions | .44% | .44% | .49% | .59% | .52% |
Net investment income (loss) | 1.98% | 1.76% | 1.74% | 1.54% | 1.71%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $10 | $7 | $2 | $9 | $– |
Portfolio turnover rateH | 110% | 73% | 31% | 56% | 106% |
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 1.49%.
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 (.11)%.
D 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.
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, 2018
(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 M, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018 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 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. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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, 2018, 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 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, market discount, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $112,321 |
Gross unrealized depreciation | (42,140) |
Net unrealized appreciation (depreciation) | $70,181 |
Tax Cost | $964,389 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $33,011 |
Undistributed long-term capital gain | $107,726 |
Net unrealized appreciation (depreciation) on securities and other investments | $70,182 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $12,196 | $ 10,211 |
Long-term Capital Gains | 143,270 | – |
Total | $155,466 | $ 10,211 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,098,683 and $1,170,442, 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 .24% 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 the 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 .35% 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% | $911 | $15 |
Class M | .25% | .25% | 1,843 | 21 |
Class C | .75% | .25% | 1,459 | 81 |
$4,213 | $ 117 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $63 |
Class M | 15 |
Class C(a) | 7 |
$85 |
(a) When 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 | $691 | .19 |
Class M | 688 | .19 |
Class C | 303 | .21 |
Class I | 326 | .20 |
Class Z | 4 | .05 |
$2,012 |
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. For the period, the fees were equivalent to an annual rate of .03%.
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 $29 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 $11.
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. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $15, including less than five hundred dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $102 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $11.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $53,981 | $– |
Class M | 53,571 | – |
Class C | 23,071 | – |
Class I | 23,769 | – |
Class Z | 1,074 | – |
Total | $155,466 | $– |
From net investment income | ||
Class A | $– | $4,338 |
Class M | – | 3,360 |
Class C | – | 762 |
Class I | – | 1,715 |
Class Z | – | 36 |
Total | $– | $10,211 |
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, 2018 | Year ended November 30, 2017 | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Class A | ||||
Shares sold | 2,356 | 1,978 | $42,190 | $35,475 |
Reinvestment of distributions | 2,930 | 236 | 51,334 | 4,055 |
Shares redeemed | (4,414) | (4,436) | (78,366) | (80,259) |
Net increase (decrease) | 872 | (2,222) | $15,158 | $(40,729) |
Class M | ||||
Shares sold | 3,096 | 2,724 | $54,768 | $48,944 |
Reinvestment of distributions | 3,022 | 191 | 52,730 | 3,277 |
Shares redeemed | (4,622) | (5,008) | (81,811) | (90,160) |
Net increase (decrease) | 1,496 | (2,093) | $25,687 | $(37,939) |
Class C | ||||
Shares sold | 705 | 621 | $11,901 | $10,664 |
Reinvestment of distributions | 1,270 | 41 | 21,110 | 674 |
Shares redeemed | (2,281) | (1,840) | (38,527) | (31,830) |
Net increase (decrease) | (306) | (1,178) | $(5,516) | $(20,492) |
Class I | ||||
Shares sold | 1,553 | 2,821 | $29,414 | $53,367 |
Reinvestment of distributions | 1,201 | 89 | 22,163 | 1,608 |
Shares redeemed | (2,115) | (1,786) | (39,588) | (33,740) |
Net increase (decrease) | 639 | 1,124 | $11,989 | $21,235 |
Class Z | ||||
Shares sold | 234 | 343 | $4,538 | $6,879 |
Reinvestment of distributions | 54 | 2 | 1,003 | 36 |
Shares redeemed | (77) | (150) | (1,451) | (2,849) |
Net increase (decrease) | 211 | 195 | $4,090 | $4,066 |
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 Board of Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Dividend Growth Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Advisor Dividend Growth Fund (one of the funds constituting Fidelity Advisor Series I, referred to hereafter as the "Fund") as of November 30, 2018, the related statement of operations for the year ended November 30, 2018, the statement of changes in net assets for each of the two years in the period ended November 30, 2018, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 ended November 30, 2018 and the financial highlights for each of the five years in the period ended November 30, 2018 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 14, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .84% | |||
Actual | $1,000.00 | $1,052.70 | $4.32 | |
Hypothetical-C | $1,000.00 | $1,020.86 | $4.26 | |
Class M | 1.09% | |||
Actual | $1,000.00 | $1,051.20 | $5.60 | |
Hypothetical-C | $1,000.00 | $1,019.60 | $5.52 | |
Class C | 1.61% | |||
Actual | $1,000.00 | $1,049.00 | $8.27 | |
Hypothetical-C | $1,000.00 | $1,017.00 | $8.14 | |
Class I | .60% | |||
Actual | $1,000.00 | $1,053.90 | $3.09 | |
Hypothetical-C | $1,000.00 | $1,022.06 | $3.04 | |
Class Z | .45% | |||
Actual | $1,000.00 | $1,055.30 | $2.32 | |
Hypothetical-C | $1,000.00 | $1,022.81 | $2.28 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Dividend 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 Dividend Growth Fund | ||||
Class A | 12/27/18 | 12/26/18 | $0.269 | $2.268 |
Class M | 12/27/18 | 12/26/18 | $0.227 | $2.268 |
Class C | 12/27/18 | 12/26/18 | $0.136 | $2.268 |
Class I | 12/27/18 | 12/26/18 | $0.313 | $2.268 |
Class Z | 12/27/18 | 12/26/18 | $0.344 | $2.268 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $107,725,547, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class M, Class C, Class I, and Class Z designate 100% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class M, Class C, Class I, and Class Z designate 100% of the dividend 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Dividend Growth Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
ADGF-ANN-0119
1.733548.119
Fidelity Advisor® Equity Growth Fund Class A, Class M, Class C, Class I and Class Z Annual Report November 30, 2018 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 2.15% | 11.03% | 14.84% |
Class M (incl. 3.50% sales charge) | 4.29% | 11.29% | 14.88% |
Class C (incl. contingent deferred sales charge) | 6.55% | 11.49% | 14.66% |
Class I | 8.65% | 12.65% | 15.88% |
Class Z | 8.80% | 12.81% | 15.97% |
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 Growth Fund - Class A on November 30, 2008 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/0001379491-19-000231/img446433798_740.jpg)
Period Ending Values | ||
$39,913 | Fidelity Advisor® Equity Growth Fund - Class A | |
$45,893 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Lead Portfolio Manager Jason Weiner: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 8% to 9%, about in line with the 8.14% result of the benchmark Russell 3000® Growth Index. Choices and a sizable overweighting in the information technology sector’s software & services industry boosted the fund’s performance versus the benchmark most, as stocks in higher-growth industries rallied for much of the 12-month period. Meanwhile, positioning in the materials sector held back the fund’s relative result. At the stock level, a significant overweighting in publishing software maker Adobe added more value than any other fund position. The market rewarded the company's strong growth this period, with the stock gaining about 38%. Our sizable position in e-tailer Amazon.com rose about 44% for the fund, as the firm continued to grow market share. The company reported strong quarterly profits, largely driven by Amazon Web Services and its emerging advertising business. Conversely, Charles Schwab, a large fund holding during the period, was the fund’s biggest relative detractor. Shares of the bank and brokerage firm returned about -7%, in part due to competition concerns as well as a broader equity market correction that pulled down financials stocks late in the period. An overweighting in Insmed, a biopharmaceutical firm focused on treatments for rare diseases, also detracted.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, 2018
% of fund's net assets | |
Microsoft Corp. | 7.2 |
Alphabet, Inc. Class A | 6.5 |
Amazon.com, Inc. | 6.1 |
Apple, Inc. | 3.6 |
Visa, Inc. Class A | 3.3 |
Adobe, Inc. | 2.9 |
Home Depot, Inc. | 2.8 |
Charles Schwab Corp. | 2.5 |
American Tower Corp. | 2.1 |
CME Group, Inc. | 2.1 |
39.1 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 32.9 |
Consumer Discretionary | 15.7 |
Health Care | 14.8 |
Communication Services | 10.7 |
Financials | 7.6 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 99.3% | |
Convertible Securities | 0.9% | |
Short-Term Investments and Net Other Assets (Liabilities)** | (0.2)% |
* Foreign investments - 11.9%
** Short-Term Investments and Net Other Assets (Liabilities) are not included in the pie chart
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 9.9% | |||
Entertainment - 0.8% | |||
Activision Blizzard, Inc. | 256,200 | $12,779 | |
Electronic Arts, Inc. (a) | 155,645 | 13,085 | |
25,864 | |||
Interactive Media & Services - 8.1% | |||
Alphabet, Inc. Class A (a) | 183,550 | 203,676 | |
Facebook, Inc. Class A (a) | 157,900 | 22,202 | |
Tencent Holdings Ltd. | 720,200 | 28,793 | |
254,671 | |||
Media - 1.0% | |||
Charter Communications, Inc. Class A (a) | 101,100 | 33,282 | |
TOTAL COMMUNICATION SERVICES | 313,817 | ||
CONSUMER DISCRETIONARY - 15.7% | |||
Diversified Consumer Services - 1.0% | |||
Grand Canyon Education, Inc. (a) | 195,000 | 23,860 | |
Laureate Education, Inc. Class A (a) | 479,600 | 7,074 | |
30,934 | |||
Hotels, Restaurants & Leisure - 1.4% | |||
Domino's Pizza, Inc. | 48,100 | 13,339 | |
McDonald's Corp. | 109,700 | 20,680 | |
Wingstop, Inc. | 149,500 | 9,810 | |
43,829 | |||
Household Durables - 1.0% | |||
D.R. Horton, Inc. | 425,800 | 15,848 | |
NVR, Inc. (a) | 6,750 | 16,538 | |
32,386 | |||
Internet & Direct Marketing Retail - 7.8% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 111,900 | 18,000 | |
Amazon.com, Inc. (a) | 114,600 | 193,693 | |
MercadoLibre, Inc. | 36,700 | 12,917 | |
Stamps.com, Inc. (a) | 135,868 | 23,296 | |
247,906 | |||
Media - 0.0% | |||
China Literature Ltd. (a)(b) | 569 | 3 | |
Specialty Retail - 3.7% | |||
Home Depot, Inc. | 486,744 | 87,770 | |
Ross Stores, Inc. | 78,300 | 6,859 | |
Ulta Beauty, Inc. (a) | 70,300 | 20,935 | |
115,564 | |||
Textiles, Apparel & Luxury Goods - 0.8% | |||
LVMH Moet Hennessy - Louis Vuitton SA (c) | 65,777 | 18,806 | |
Michael Kors Holdings Ltd. (a) | 135,300 | 5,919 | |
Pinduoduo, Inc. ADR (c) | 26,300 | 604 | |
25,329 | |||
TOTAL CONSUMER DISCRETIONARY | 495,951 | ||
CONSUMER STAPLES - 3.9% | |||
Beverages - 1.6% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 67,000 | 13,116 | |
Fever-Tree Drinks PLC | 176,727 | 5,387 | |
Kweichow Moutai Co. Ltd. (A Shares) | 82,313 | 6,682 | |
Monster Beverage Corp. (a) | 140,400 | 8,379 | |
Pernod Ricard SA | 49,600 | 7,929 | |
Pernod Ricard SA ADR | 241,700 | 7,743 | |
49,236 | |||
Food Products - 0.5% | |||
McCormick & Co., Inc. (non-vtg.) | 66,800 | 10,020 | |
The Simply Good Foods Co. (a) | 254,700 | 5,176 | |
15,196 | |||
Household Products - 0.5% | |||
Energizer Holdings, Inc. | 358,300 | 16,063 | |
Personal Products - 1.3% | |||
Estee Lauder Companies, Inc. Class A | 142,600 | 20,343 | |
Unilever NV (NY Reg.) | 403,100 | 22,376 | |
42,719 | |||
TOTAL CONSUMER STAPLES | 123,214 | ||
ENERGY - 2.8% | |||
Oil, Gas & Consumable Fuels - 2.8% | |||
Anadarko Petroleum Corp. | 135,200 | 7,152 | |
Cheniere Energy, Inc. (a) | 796,700 | 48,694 | |
Range Resources Corp. | 873,800 | 12,714 | |
Reliance Industries Ltd. | 1,196,761 | 20,061 | |
88,621 | |||
FINANCIALS - 7.4% | |||
Banks - 2.2% | |||
First Republic Bank | 254,900 | 25,273 | |
HDFC Bank Ltd. | 68,446 | 2,094 | |
HDFC Bank Ltd. sponsored ADR | 172,300 | 17,475 | |
M&T Bank Corp. | 145,800 | 24,642 | |
Metro Bank PLC (a) | 50,300 | 1,347 | |
70,831 | |||
Capital Markets - 5.1% | |||
Charles Schwab Corp. | 1,773,300 | 79,444 | |
CME Group, Inc. | 339,854 | 64,599 | |
JMP Group, Inc. | 141,100 | 693 | |
MSCI, Inc. | 6,700 | 1,053 | |
The Blackstone Group LP | 488,700 | 16,484 | |
162,273 | |||
Diversified Financial Services - 0.1% | |||
Prosegur Cash SA (b) | 857,500 | 1,813 | |
TOTAL FINANCIALS | 234,917 | ||
HEALTH CARE - 14.7% | |||
Biotechnology - 3.4% | |||
AC Immune SA (a) | 244,700 | 2,721 | |
Acceleron Pharma, Inc. (a) | 68,600 | 3,631 | |
Affimed NV (a)(c) | 351,408 | 1,574 | |
Alexion Pharmaceuticals, Inc. (a) | 127,500 | 15,702 | |
Biogen, Inc. (a) | 106,000 | 35,374 | |
Calyxt, Inc. (a) | 179,700 | 2,070 | |
Cytokinetics, Inc. (a) | 270,110 | 2,123 | |
Gamida Cell Ltd. (a) | 34,700 | 535 | |
Insmed, Inc. (a) | 741,220 | 13,275 | |
Prothena Corp. PLC (a) | 166,900 | 2,004 | |
Rubius Therapeutics, Inc. | 32,000 | 684 | |
Vertex Pharmaceuticals, Inc. (a) | 163,964 | 29,643 | |
109,336 | |||
Health Care Equipment & Supplies - 5.7% | |||
Becton, Dickinson & Co. | 230,400 | 58,234 | |
Boston Scientific Corp. (a) | 799,100 | 30,102 | |
Danaher Corp. | 208,614 | 22,852 | |
Intuitive Surgical, Inc. (a) | 110,500 | 58,661 | |
ResMed, Inc. | 98,000 | 10,955 | |
180,804 | |||
Health Care Providers & Services - 1.2% | |||
Elanco Animal Health, Inc. | 16,200 | 541 | |
National Vision Holdings, Inc. (a) | 10,800 | 397 | |
Neuronetics, Inc. | 47,800 | 853 | |
UnitedHealth Group, Inc. | 126,400 | 35,564 | |
37,355 | |||
Health Care Technology - 0.3% | |||
Veeva Systems, Inc. Class A (a) | 100,700 | 9,683 | |
Life Sciences Tools & Services - 0.7% | |||
Codexis, Inc. (a) | 143,400 | 3,143 | |
Mettler-Toledo International, Inc. (a) | 22,100 | 14,070 | |
Sartorius Stedim Biotech | 49,000 | 4,959 | |
22,172 | |||
Pharmaceuticals - 3.4% | |||
AstraZeneca PLC sponsored ADR | 1,224,700 | 48,768 | |
Mallinckrodt PLC (a) | 310,000 | 7,375 | |
Mylan NV (a) | 403,400 | 13,659 | |
Novartis AG sponsored ADR | 177,500 | 16,247 | |
Perrigo Co. PLC | 324,900 | 20,235 | |
106,284 | |||
TOTAL HEALTH CARE | 465,634 | ||
INDUSTRIALS - 6.4% | |||
Aerospace & Defense - 0.4% | |||
TransDigm Group, Inc. (a) | 33,377 | 12,071 | |
Commercial Services & Supplies - 0.7% | |||
Copart, Inc. (a) | 420,000 | 21,496 | |
Electrical Equipment - 2.0% | |||
AMETEK, Inc. | 306,400 | 22,499 | |
Fortive Corp. | 400,407 | 30,459 | |
Nidec Corp. | 72,800 | 9,697 | |
62,655 | |||
Industrial Conglomerates - 0.5% | |||
Roper Technologies, Inc. | 50,169 | 14,930 | |
Machinery - 1.7% | |||
Allison Transmission Holdings, Inc. | 687,000 | 32,365 | |
Gardner Denver Holdings, Inc. (a) | 846,000 | 20,939 | |
53,304 | |||
Professional Services - 1.1% | |||
IHS Markit Ltd. (a) | 304,100 | 16,230 | |
TransUnion Holding Co., Inc. | 315,000 | 20,340 | |
36,570 | |||
TOTAL INDUSTRIALS | 201,026 | ||
INFORMATION TECHNOLOGY - 32.9% | |||
Electronic Equipment & Components - 0.6% | |||
Amphenol Corp. Class A | 87,300 | 7,677 | |
Zebra Technologies Corp. Class A (a) | 60,000 | 10,788 | |
18,465 | |||
IT Services - 9.2% | |||
Adyen BV | 6,100 | 3,156 | |
Elastic NV | 3,100 | 221 | |
Fidelity National Information Services, Inc. | 257,300 | 27,776 | |
Global Payments, Inc. | 192,100 | 21,479 | |
GoDaddy, Inc. (a) | 329,000 | 21,471 | |
MasterCard, Inc. Class A | 121,000 | 24,329 | |
Okta, Inc. (a) | 56,600 | 3,603 | |
PayPal Holdings, Inc. (a) | 466,700 | 40,048 | |
Shopify, Inc. Class A (a) | 78,700 | 11,979 | |
VeriSign, Inc. (a) | 156,200 | 24,377 | |
Visa, Inc. Class A | 744,432 | 105,493 | |
Wix.com Ltd. (a) | 80,000 | 7,534 | |
291,466 | |||
Semiconductors & Semiconductor Equipment - 3.5% | |||
ASML Holding NV | 83,400 | 14,291 | |
Broadcom, Inc. | 58,000 | 13,770 | |
Cree, Inc. (a) | 114,900 | 5,072 | |
Maxim Integrated Products, Inc. | 274,128 | 15,329 | |
Monolithic Power Systems, Inc. | 66,832 | 8,827 | |
NVIDIA Corp. | 186,900 | 30,545 | |
NXP Semiconductors NV | 95,200 | 7,937 | |
Semtech Corp. (a) | 270,500 | 14,428 | |
110,199 | |||
Software - 16.0% | |||
Adobe, Inc. (a) | 365,400 | 91,675 | |
Autodesk, Inc. (a) | 147,800 | 21,357 | |
Black Knight, Inc. (a) | 331,700 | 15,039 | |
DocuSign, Inc. | 188,800 | 7,884 | |
Intuit, Inc. | 154,300 | 33,102 | |
Microsoft Corp. | 2,043,300 | 226,579 | |
Pluralsight, Inc. (c) | 67,400 | 1,624 | |
Red Hat, Inc. (a) | 178,500 | 31,873 | |
Salesforce.com, Inc. (a) | 338,392 | 48,309 | |
SolarWinds, Inc. (a) | 505,100 | 8,036 | |
Splunk, Inc. (a) | 96,600 | 10,793 | |
Upwork, Inc. | 7,700 | 143 | |
Zscaler, Inc. (a)(c) | 227,600 | 8,936 | |
505,350 | |||
Technology Hardware, Storage & Peripherals - 3.6% | |||
Apple, Inc. | 635,200 | 113,434 | |
TOTAL INFORMATION TECHNOLOGY | 1,038,914 | ||
MATERIALS - 3.3% | |||
Chemicals - 3.0% | |||
CF Industries Holdings, Inc. | 291,000 | 12,277 | |
DowDuPont, Inc. | 639,200 | 36,978 | |
Sherwin-Williams Co. | 44,000 | 18,659 | |
The Chemours Co. LLC | 429,700 | 12,238 | |
Umicore SA | 357,628 | 15,515 | |
95,667 | |||
Containers & Packaging - 0.3% | |||
Aptargroup, Inc. | 75,800 | 7,887 | |
TOTAL MATERIALS | 103,554 | ||
REAL ESTATE - 2.1% | |||
Equity Real Estate Investment Trusts (REITs) - 2.1% | |||
American Tower Corp. | 394,000 | 64,809 | |
TOTAL COMMON STOCKS | |||
(Cost $2,187,692) | 3,130,457 | ||
Preferred Stocks - 1.1% | |||
Convertible Preferred Stocks - 0.9% | |||
COMMUNICATION SERVICES - 0.8% | |||
Interactive Media & Services - 0.8% | |||
Uber Technologies, Inc. Series D, 8.00% (a)(d)(e) | 485,012 | 23,654 | |
CONSUMER DISCRETIONARY - 0.0% | |||
Household Durables - 0.0% | |||
Blu Homes, Inc. Series A, 5.00% (a)(d)(e) | 875,350 | 18 | |
HEALTH CARE - 0.1% | |||
Biotechnology - 0.1% | |||
BioNTech AG Series A (d)(e) | 13,034 | 3,746 | |
INFORMATION TECHNOLOGY - 0.0% | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(d)(e) | 105,425 | 102 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 27,520 | ||
Nonconvertible Preferred Stocks - 0.2% | |||
FINANCIALS - 0.2% | |||
Banks - 0.2% | |||
Itau Unibanco Holding SA sponsored ADR | 713,850 | 6,660 | |
TOTAL PREFERRED STOCKS | |||
(Cost $21,088) | 34,180 | ||
Money Market Funds - 0.9% | |||
Fidelity Securities Lending Cash Central Fund 2.27% (f) | |||
(Cost $27,992) | 27,988,780 | 27,992 | |
TOTAL INVESTMENT IN SECURITIES - 101.1% | |||
(Cost $2,236,772) | 3,192,629 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (34,367) | ||
NET ASSETS - 100% | $3,158,262 |
Legend
(a) Non-income producing
(b) 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 $1,816,000 or 0.1% of net assets.
(c) Security or a portion of the security is on loan at period end.
(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 $27,520,000 or 0.9% of net assets.
(e) Level 3 security
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
AppNexus, Inc. Series E (Escrow) | 8/1/14 | $190 |
BioNTech AG Series A | 12/29/17 | $2,855 |
Blu Homes, Inc. Series A, 5.00% | 6/21/13 | $4,044 |
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 | $622 |
Fidelity Securities Lending Cash Central Fund | 99 |
Total | $721 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $337,471 | $285,024 | $28,793 | $23,654 |
Consumer Discretionary | 495,969 | 495,951 | -- | 18 |
Consumer Staples | 123,214 | 123,214 | -- | -- |
Energy | 88,621 | 88,621 | -- | -- |
Financials | 241,577 | 239,483 | 2,094 | -- |
Health Care | 469,380 | 465,634 | -- | 3,746 |
Industrials | 201,026 | 201,026 | -- | -- |
Information Technology | 1,039,016 | 1,038,914 | -- | 102 |
Materials | 103,554 | 103,554 | -- | -- |
Real Estate | 64,809 | 64,809 | -- | -- |
Money Market Funds | 27,992 | 27,992 | -- | -- |
Total Investments in Securities: | $3,192,629 | $3,134,222 | $30,887 | $27,520 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.1% |
Netherlands | 1.8% |
United Kingdom | 1.8% |
Cayman Islands | 1.5% |
France | 1.3% |
India | 1.2% |
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, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $26,616) — See accompanying schedule: Unaffiliated issuers (cost $2,208,780) | $3,164,637 | |
Fidelity Central Funds (cost $27,992) | 27,992 | |
Total Investment in Securities (cost $2,236,772) | $3,192,629 | |
Receivable for investments sold | 7,703 | |
Receivable for fund shares sold | 990 | |
Dividends receivable | 3,917 | |
Distributions receivable from Fidelity Central Funds | 49 | |
Prepaid expenses | 5 | |
Other receivables | 203 | |
Total assets | 3,205,496 | |
Liabilities | ||
Payable to custodian bank | $787 | |
Payable for investments purchased | 12,026 | |
Payable for fund shares redeemed | 3,374 | |
Accrued management fee | 1,401 | |
Distribution and service plan fees payable | 888 | |
Other affiliated payables | 550 | |
Other payables and accrued expenses | 221 | |
Collateral on securities loaned | 27,987 | |
Total liabilities | 47,234 | |
Net Assets | $3,158,262 | |
Net Assets consist of: | ||
Paid in capital | $2,018,168 | |
Total distributable earnings (loss) | 1,140,094 | |
Net Assets | $3,158,262 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($864,759 ÷ 73,067 shares) | $11.84 | |
Maximum offering price per share (100/94.25 of $11.84) | $12.56 | |
Class M: | ||
Net Asset Value and redemption price per share ($1,332,287 ÷ 114,738 shares) | $11.61 | |
Maximum offering price per share (100/96.50 of $11.61) | $12.03 | |
Class C: | ||
Net Asset Value and offering price per share ($195,708 ÷ 19,432 shares)(a) | $10.07 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($678,813 ÷ 52,308 shares) | $12.98 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($86,695 ÷ 6,635 shares) | $13.07 |
(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, 2018 | |
Investment Income | ||
Dividends | $29,186 | |
Income from Fidelity Central Funds | 721 | |
Total income | 29,907 | |
Expenses | ||
Management fee | $17,536 | |
Transfer agent fees | 5,726 | |
Distribution and service plan fees | 11,258 | |
Accounting and security lending fees | 955 | |
Custodian fees and expenses | 73 | |
Independent trustees' fees and expenses | 16 | |
Registration fees | 116 | |
Audit | 71 | |
Legal | 9 | |
Interest | 2 | |
Miscellaneous | 23 | |
Total expenses before reductions | 35,785 | |
Expense reductions | (236) | |
Total expenses after reductions | 35,549 | |
Net investment income (loss) | (5,642) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 204,097 | |
Fidelity Central Funds | 2 | |
Foreign currency transactions | (46) | |
Total net realized gain (loss) | 204,053 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 53,669 | |
Assets and liabilities in foreign currencies | (3) | |
Total change in net unrealized appreciation (depreciation) | 53,666 | |
Net gain (loss) | 257,719 | |
Net increase (decrease) in net assets resulting from operations | $252,077 |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(5,642) | $(6,082) |
Net realized gain (loss) | 204,053 | 354,388 |
Change in net unrealized appreciation (depreciation) | 53,666 | 508,546 |
Net increase (decrease) in net assets resulting from operations | 252,077 | 856,852 |
Distributions to shareholders | (337,553) | – |
Distributions to shareholders from net realized gain | – | (153,216) |
Total distributions | (337,553) | (153,216) |
Share transactions - net increase (decrease) | 111,564 | (131,973) |
Total increase (decrease) in net assets | 26,088 | 571,663 |
Net Assets | ||
Beginning of period | 3,132,174 | 2,560,511 |
End of period | $3,158,262 | $3,132,174 |
Other Information | ||
Accumulated net investment loss end of period | $(162) |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share DataA | |||||
Net asset value, beginning of period | $12.26 | $9.61 | $9.88 | $9.38 | $8.09 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.01) | (.01) | (.02) | (.01) | (.01) |
Net realized and unrealized gain (loss) | .93 | 3.24 | (.01) | .51 | 1.30 |
Total from investment operations | .92 | 3.23 | (.03) | .50 | 1.29 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (1.34) | (.58) | (.24) | – | – |
Total distributions | (1.34) | (.58) | (.24) | – | – |
Net asset value, end of period | $11.84 | $12.26 | $9.61 | $9.88 | $9.38 |
Total ReturnC,D | 8.38% | 35.72% | (.39)% | 5.34% | 15.96% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.02% | 1.03% | 1.05% | 1.05% | 1.07% |
Expenses net of fee waivers, if any | 1.01% | 1.03% | 1.05% | 1.05% | 1.07% |
Expenses net of all reductions | 1.01% | 1.03% | 1.05% | 1.04% | 1.07% |
Net investment income (loss) | (.09)% | (.12)% | (.25)% | (.13)% | (.08)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $865 | $843 | $803 | $887 | $853 |
Portfolio turnover rateG | 37% | 48% | 60% | 63% | 49%H |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
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.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Growth Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share DataA | |||||
Net asset value, beginning of period | $12.05 | $9.47 | $9.77 | $9.29 | $8.03 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.04) | (.04) | (.04) | (.03) | (.03) |
Net realized and unrealized gain (loss) | .91 | 3.20 | (.02) | .51 | 1.29 |
Total from investment operations | .87 | 3.16 | (.06) | .48 | 1.26 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (1.31) | (.58) | (.24) | – | – |
Total distributions | (1.31) | (.58) | (.24) | – | – |
Net asset value, end of period | $11.61 | $12.05 | $9.47 | $9.77 | $9.29 |
Total ReturnC,D | 8.07% | 35.41% | (.62)% | 5.10% | 15.73% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.25% | 1.26% | 1.28% | 1.27% | 1.28% |
Expenses net of fee waivers, if any | 1.25% | 1.26% | 1.27% | 1.27% | 1.28% |
Expenses net of all reductions | 1.24% | 1.26% | 1.27% | 1.27% | 1.28% |
Net investment income (loss) | (.32)% | (.36)% | (.48)% | (.36)% | (.29)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $1,332 | $1,353 | $1,129 | $1,306 | $1,368 |
Portfolio turnover rateG | 37% | 48% | 60% | 63% | 49%H |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
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.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Growth Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share DataA | |||||
Net asset value, beginning of period | $10.63 | $8.47 | $8.80 | $8.42 | $7.31 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.09) | (.08) | (.08) | (.08) | (.07) |
Net realized and unrealized gain (loss) | .80 | 2.82 | (.01) | .46 | 1.18 |
Total from investment operations | .71 | 2.74 | (.09) | .38 | 1.11 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (1.27) | (.58) | (.24) | – | – |
Total distributions | (1.27) | (.58) | (.24) | – | – |
Net asset value, end of period | $10.07 | $10.63 | $8.47 | $8.80 | $8.42 |
Total ReturnC,D | 7.50% | 34.70% | (1.15)% | 4.55% | 15.11% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.78% | 1.79% | 1.81% | 1.81% | 1.81% |
Expenses net of fee waivers, if any | 1.78% | 1.79% | 1.81% | 1.81% | 1.81% |
Expenses net of all reductions | 1.77% | 1.79% | 1.81% | 1.80% | 1.81% |
Net investment income (loss) | (.85)% | (.89)% | (1.01)% | (.89)% | (.83)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $196 | $200 | $161 | $183 | $175 |
Portfolio turnover rateG | 37% | 48% | 60% | 63% | 49%H |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
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.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Growth Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share DataA | |||||
Net asset value, beginning of period | $13.32 | $10.36 | $10.61 | $10.04 | $8.63 |
Income from Investment Operations | |||||
Net investment income (loss)B | .02 | .02 | –C | .02 | .02 |
Net realized and unrealized gain (loss) | 1.01 | 3.52 | (.01) | .55 | 1.39 |
Total from investment operations | 1.03 | 3.54 | (.01) | .57 | 1.41 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (1.37) | (.58) | (.24) | – | – |
Total distributions | (1.37) | (.58) | (.24) | – | – |
Net asset value, end of period | $12.98 | $13.32 | $10.36 | $10.61 | $10.04 |
Total ReturnD | 8.65% | 36.08% | (.12)% | 5.64% | 16.31% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .75% | .77% | .78% | .78% | .77% |
Expenses net of fee waivers, if any | .75% | .76% | .78% | .77% | .77% |
Expenses net of all reductions | .75% | .76% | .77% | .77% | .77% |
Net investment income (loss) | .17% | .14% | .02% | .14% | .21% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $679 | $677 | $434 | $463 | $432 |
Portfolio turnover rateG | 37% | 48% | 60% | 63% | 49%H |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Growth Fund Class Z
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share DataA | |||||
Net asset value, beginning of period | $13.40 | $10.41 | $10.64 | $10.06 | $8.64 |
Income from Investment Operations | |||||
Net investment income (loss)B | .04 | .03 | .02 | .03 | .03 |
Net realized and unrealized gain (loss) | 1.02 | 3.54 | (.01) | .55 | 1.39 |
Total from investment operations | 1.06 | 3.57 | .01 | .58 | 1.42 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (1.39) | (.58) | (.24) | – | – |
Total distributions | (1.39) | (.58) | (.24) | – | – |
Net asset value, end of period | $13.07 | $13.40 | $10.41 | $10.64 | $10.06 |
Total ReturnC | 8.80% | 36.27% | .02% | 5.77% | 16.48% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .62% | .63% | .64% | .64% | .64% |
Expenses net of fee waivers, if any | .62% | .63% | .63% | .64% | .64% |
Expenses net of all reductions | .62% | .63% | .63% | .63% | .64% |
Net investment income (loss) | .30% | .28% | .16% | .28% | .35% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $87 | $59 | $33 | $26 | $– |
Portfolio turnover rateF | 37% | 48% | 60% | 63% | 49%G |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
(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 M, 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.
Effective May 11, 2018, each class underwent a 10 for 1 share split. The effect of the share split transaction was to multiply the number of outstanding shares of the Class by a split factor of 10:1, with a corresponding decrease in net asset value (NAV) per share. This event does not impact the overall net assets of each class. The per share data presented in the Financial Highlights and Share Transactions presented in the Notes to Financial Statements have been retroactively adjusted to reflect this share split.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018 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 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) for the Fund, certain independent Trustees have elected 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 of $140 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
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, 2018, 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 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), partnerships, deferred trustees compensation, and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $1,034,121 |
Gross unrealized depreciation | (77,678) |
Net unrealized appreciation (depreciation) | $956,443 |
Tax Cost | $2,236,186 |
The Fund intends to elect to defer to its next fiscal year $5,908 of ordinary losses recognized during the period January 1, 2018 to November 30, 2018.
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $189,701 |
Net unrealized appreciation (depreciation) on securities and other investments | $956,441 |
The tax character of distributions paid was as follows:
November 30, 2018 | November, 30 2017 | |
Ordinary Income | $16,127 | $ - |
Long-term Capital Gains | 321,426 | 153,216 |
Total | $337,553 | $ 153,216 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,176,150 and $1,306,984, 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 .24% 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 .54% 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% | $2,221 | $64 |
Class M | .25% | .25% | 6,968 | 118 |
Class C | .75% | .25% | 2,069 | 178 |
$11,258 | $360 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $201 |
Class M | 29 |
Class C(a) | 19 |
$249 |
(a) When 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 | $1,661 | .19 |
Class M | 2,417 | .17 |
Class C | 413 | .20 |
Class I | 1,198 | .18 |
Class Z | 37 | .05 |
$5,726 |
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. For the period, the fees were equivalent to an annual rate of .03%.
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 $26 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $9,831 | 2.16% | $2 |
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 $9 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $99, including $4 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $204 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $31.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $91,591 | $– |
Class M | 146,455 | – |
Class C | 23,734 | – |
Class I | 68,882 | – |
Class Z | 6,891 | – |
Total | $337,553 | $– |
From net realized gain | ||
Class A | $– | $47,938 |
Class M | – | 68,793 |
Class C | – | 10,973 |
Class I | – | 23,651 |
Class Z | – | 1,861 |
Total | $– | $153,216 |
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, 2018(a) | Year ended November 30, 2017(a) | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Class A | ||||
Shares sold | 9,440 | 8,190 | $111,596 | $87,156 |
Reinvestment of distributions | 7,841 | 4,850 | 85,798 | 44,771 |
Shares redeemed | (13,004) | (27,890) | (153,755) | (287,483) |
Net increase (decrease) | 4,277 | (14,850) | $43,639 | $(155,556) |
Class M | ||||
Shares sold | 12,689 | 11,800 | $147,591 | $123,747 |
Reinvestment of distributions | 13,304 | 7,340 | 143,123 | 66,704 |
Shares redeemed | (23,515) | (26,090) | (273,304) | (271,208) |
Net increase (decrease) | 2,478 | (6,950) | $17,410 | $(80,757) |
Class C | ||||
Shares sold | 4,110 | 2,630 | $41,822 | $24,340 |
Reinvestment of distributions | 2,385 | 1,240 | 22,368 | 10,000 |
Shares redeemed | (5,863) | (4,110) | (59,709) | (38,054) |
Net increase (decrease) | 632 | (240) | $4,481 | $(3,714) |
Class I | ||||
Shares sold | 15,639 | 24,910 | $204,465 | $283,237 |
Reinvestment of distributions | 5,482 | 2,240 | 65,612 | 22,400 |
Shares redeemed | (19,663) | (18,170) | (252,991) | (211,175) |
Net increase (decrease) | 1,458 | 8,980 | $17,086 | $94,462 |
Class Z | ||||
Shares sold | 3,585 | 2,540 | $47,276 | $30,128 |
Reinvestment of distributions | 558 | 190 | 6,713 | 1,861 |
Shares redeemed | (1,888) | (1,530) | (25,041) | (18,397) |
Net increase (decrease) | 2,255 | 1,200 | $28,948 | $13,592 |
(a) Share activity prior to May 11, 2018 has been adjusted to reflect the impact of the 10 for 1 share split that occurred on that date.
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 Equity Growth Fund:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 14, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | 1.01% | |||
Actual | $1,000.00 | $995.00 | $5.05 | |
Hypothetical-C | $1,000.00 | $1,020.00 | $5.11 | |
Class M | 1.25% | |||
Actual | $1,000.00 | $993.20 | $6.25 | |
Hypothetical-C | $1,000.00 | $1,018.80 | $6.33 | |
Class C | 1.78% | |||
Actual | $1,000.00 | $990.20 | $8.88 | |
Hypothetical-C | $1,000.00 | $1,016.14 | $9.00 | |
Class I | .75% | |||
Actual | $1,000.00 | $996.20 | $3.75 | |
Hypothetical-C | $1,000.00 | $1,021.31 | $3.80 | |
Class Z | .62% | |||
Actual | $1,000.00 | $996.90 | $3.10 | |
Hypothetical-C | $1,000.00 | $1,021.96 | $3.14 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity 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:
Pay Date | Record Date | Capital Gains | |
Fidelity Advisor Equity Growth Fund | |||
Class A | 12/27/18 | 12/26/18 | $0.720 |
Class M | 12/27/18 | 12/26/18 | $0.720 |
Class C | 12/27/18 | 12/26/18 | $0.720 |
Class I | 12/27/18 | 12/26/18 | $0.720 |
Class Z | 12/27/18 | 12/26/18 | $0.720 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $204,989,734, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class M, 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 M, Class C, Class I and Class Z designate 100% of 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Equity Growth Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
EPG-ANN-0119
1.539469.121
Fidelity Advisor® Equity Income Fund Class A, Class M, Class C, Class I and Class Z Annual Report November 30, 2018 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (5.02)% | 5.41% | 10.47% |
Class M (incl. 3.50% sales charge) | (2.96)% | 5.67% | 10.50% |
Class C (incl. contingent deferred sales charge) | (0.92)% | 5.86% | 10.28% |
Class I | 1.05% | 6.96% | 11.43% |
Class Z | 1.16% | 7.10% | 11.51% |
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, 2008, 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/0001379491-19-000231/img447196094_740.jpg)
Period Ending Values | ||
$28,720 | Fidelity Advisor® Equity Income Fund - Class A | |
$32,382 | Russell 3000® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Lead Portfolio Manager John Sheehy: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) returned roughly 0% to 1%, trailing the 2.62% advance of the benchmark Russell 3000® Value Index. Versus the benchmark, positioning within the food, beverage & tobacco segment of the consumer staples sector detracted most. Stock selection in health care and materials also notably hurt. A large out-of-benchmark stake in British American Tobacco was by far the fund’s biggest detractor this period. Competition from e-cigarette products disrupted the industry, while regulatory headwinds increased. In health care, avoiding big pharma name and benchmark component Merck and having negligible exposure to Pfizer weighed on relative performance, given their strength the past 12 months. Bank OZK – formerly Bank of the Ozarks – was an overweighting in the fund that detracted. Conversely, positioning in communication services and information technology lifted relative performance most. In the former group, fund performance benefited from overweighting Verizon Communications, the fund’s largest holding at period end, and underweighting AT&T. Biotechnology leader Amgen rewarded our sizable overweighting, as did networking equipment maker Cisco Systems.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 December 30, 2017, former Lead Manager Jim Morrow retired from Fidelity, leaving John Sheehy as Lead Manager and Adam Kramer as Co-Manager.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Verizon Communications, Inc. | 4.4 |
Wells Fargo & Co. | 4.1 |
Chevron Corp. | 3.6 |
Johnson & Johnson | 3.0 |
United Technologies Corp. | 3.0 |
Amgen, Inc. | 2.5 |
Comcast Corp. Class A | 2.3 |
Chubb Ltd. | 2.2 |
Bank of America Corp. | 2.2 |
British American Tobacco PLC sponsored ADR | 1.9 |
29.2 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 22.2 |
Health Care | 14.8 |
Communication Services | 12.3 |
Energy | 10.4 |
Industrials | 9.1 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 98.7% | |
Bonds | 0.1% | |
Convertible Securities | 0.2% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.8% |
* Foreign investments - 17.1%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 12.3% | |||
Diversified Telecommunication Services - 4.8% | |||
AT&T, Inc. | 244,436 | $7,636 | |
Verizon Communications, Inc. | 1,225,890 | 73,924 | |
81,560 | |||
Entertainment - 2.4% | |||
Cinemark Holdings, Inc. | 383,700 | 14,723 | |
The Walt Disney Co. | 223,800 | 25,847 | |
40,570 | |||
Media - 5.1% | |||
Comcast Corp. Class A | 979,600 | 38,214 | |
Informa PLC | 1,219,872 | 10,744 | |
Interpublic Group of Companies, Inc. | 608,500 | 14,300 | |
Omnicom Group, Inc. | 298,900 | 23,006 | |
86,264 | |||
Wireless Telecommunication Services - 0.0% | |||
T-Mobile U.S., Inc. (a) | 1,323 | 91 | |
TOTAL COMMUNICATION SERVICES | 208,485 | ||
CONSUMER DISCRETIONARY - 2.6% | |||
Automobiles - 0.3% | |||
Subaru Corp. | 200,900 | 4,465 | |
Hotels, Restaurants & Leisure - 1.7% | |||
Six Flags Entertainment Corp. | 194,500 | 11,935 | |
Wyndham Destinations, Inc. | 266,800 | 11,064 | |
Wyndham Hotels & Resorts, Inc. | 131,500 | 6,592 | |
29,591 | |||
Leisure Products - 0.1% | |||
New Academy Holding Co. LLC unit (a)(b)(c)(d) | 52,800 | 1,703 | |
Specialty Retail - 0.4% | |||
Lowe's Companies, Inc. | 76,600 | 7,229 | |
Textiles, Apparel & Luxury Goods - 0.1% | |||
Tapestry, Inc. | 44,800 | 1,744 | |
TOTAL CONSUMER DISCRETIONARY | 44,732 | ||
CONSUMER STAPLES - 8.3% | |||
Beverages - 0.8% | |||
Molson Coors Brewing Co. Class B | 209,405 | 13,773 | |
Food Products - 2.2% | |||
General Mills, Inc. | 304,340 | 12,877 | |
Kellogg Co. | 80,900 | 5,149 | |
The J.M. Smucker Co. | 187,000 | 19,543 | |
37,569 | |||
Household Products - 0.6% | |||
Reckitt Benckiser Group PLC | 123,600 | 10,289 | |
Personal Products - 1.1% | |||
Unilever NV (NY Reg.) | 349,300 | 19,390 | |
Tobacco - 3.6% | |||
Altria Group, Inc. | 396,500 | 21,740 | |
British American Tobacco PLC sponsored ADR | 920,601 | 32,101 | |
Imperial Tobacco Group PLC | 208,598 | 6,406 | |
60,247 | |||
TOTAL CONSUMER STAPLES | 141,268 | ||
ENERGY - 10.1% | |||
Energy Equipment & Services - 0.6% | |||
Baker Hughes, a GE Co. Class A | 404,500 | 9,231 | |
Oil, Gas & Consumable Fuels - 9.5% | |||
BP PLC sponsored ADR | 316,600 | 12,775 | |
Chevron Corp. | 507,769 | 60,394 | |
Enterprise Products Partners LP | 809,400 | 21,247 | |
Suncor Energy, Inc. | 670,200 | 21,609 | |
Targa Resources Corp. | 101,000 | 4,508 | |
The Williams Companies, Inc. | 1,013,550 | 25,663 | |
Valero Energy Corp. | 193,000 | 15,421 | |
161,617 | |||
TOTAL ENERGY | 170,848 | ||
FINANCIALS - 22.2% | |||
Banks - 10.2% | |||
Bank of America Corp. | 1,309,000 | 37,176 | |
Bank of the Ozarks, Inc. | 321,700 | 8,718 | |
First Hawaiian, Inc. | 224,900 | 5,852 | |
Huntington Bancshares, Inc. | 662,800 | 9,670 | |
JPMorgan Chase & Co. | 249,857 | 27,782 | |
PNC Financial Services Group, Inc. | 98,600 | 13,388 | |
Wells Fargo & Co. | 1,285,850 | 69,796 | |
172,382 | |||
Capital Markets - 3.9% | |||
Apollo Global Management LLC Class A | 588,700 | 16,595 | |
Lazard Ltd. Class A | 138,700 | 5,565 | |
Northern Trust Corp. | 105,000 | 10,419 | |
OM Asset Management Ltd. | 249,000 | 3,279 | |
State Street Corp. | 308,599 | 22,534 | |
The Blackstone Group LP | 246,003 | 8,298 | |
66,690 | |||
Consumer Finance - 2.4% | |||
Capital One Financial Corp. | 239,400 | 21,469 | |
Discover Financial Services | 183,800 | 13,105 | |
Synchrony Financial | 219,800 | 5,710 | |
40,284 | |||
Insurance - 5.2% | |||
Chubb Ltd. | 283,784 | 37,953 | |
First American Financial Corp. | 141,500 | 6,839 | |
FNF Group | 247,600 | 8,319 | |
Principal Financial Group, Inc. | 154,500 | 7,620 | |
The Travelers Companies, Inc. | 206,800 | 26,961 | |
87,692 | |||
Mortgage Real Estate Investment Trusts - 0.5% | |||
AGNC Investment Corp. | 528,500 | 9,354 | |
TOTAL FINANCIALS | 376,402 | ||
HEALTH CARE - 14.8% | |||
Biotechnology - 2.5% | |||
Amgen, Inc. | 199,449 | 41,535 | |
Health Care Equipment & Supplies - 0.6% | |||
Becton, Dickinson & Co. | 42,800 | 10,818 | |
Health Care Providers & Services - 4.7% | |||
AmerisourceBergen Corp. | 122,300 | 10,872 | |
CVS Health Corp. | 385,136 | 30,888 | |
McKesson Corp. | 123,400 | 15,363 | |
UnitedHealth Group, Inc. | 80,300 | 22,593 | |
79,716 | |||
Pharmaceuticals - 7.0% | |||
Bayer AG | 86,400 | 6,340 | |
GlaxoSmithKline PLC | 1,122,600 | 23,271 | |
Johnson & Johnson | 343,918 | 50,522 | |
Roche Holding AG (participation certificate) | 64,620 | 16,774 | |
Sanofi SA sponsored ADR | 481,000 | 21,813 | |
118,720 | |||
TOTAL HEALTH CARE | 250,789 | ||
INDUSTRIALS - 9.1% | |||
Aerospace & Defense - 5.1% | |||
General Dynamics Corp. | 173,300 | 32,041 | |
Northrop Grumman Corp. | 15,700 | 4,080 | |
United Technologies Corp. | 409,707 | 49,919 | |
86,040 | |||
Industrial Conglomerates - 0.7% | |||
General Electric Co. | 1,665,554 | 12,492 | |
Machinery - 2.9% | |||
Allison Transmission Holdings, Inc. | 98,000 | 4,617 | |
Cummins, Inc. | 53,300 | 8,051 | |
Deere & Co. | 79,200 | 12,266 | |
Minebea Mitsumi, Inc. | 227,300 | 3,688 | |
Snap-On, Inc. | 38,800 | 6,450 | |
Stanley Black & Decker, Inc. | 113,500 | 14,851 | |
49,923 | |||
Professional Services - 0.4% | |||
Intertrust NV (e) | 320,400 | 5,140 | |
Nielsen Holdings PLC | 47,400 | 1,288 | |
6,428 | |||
TOTAL INDUSTRIALS | 154,883 | ||
INFORMATION TECHNOLOGY - 6.8% | |||
Communications Equipment - 1.8% | |||
Cisco Systems, Inc. | 640,353 | 30,654 | |
Electronic Equipment & Components - 0.9% | |||
TE Connectivity Ltd. | 191,830 | 14,757 | |
IT Services - 2.0% | |||
Amdocs Ltd. | 316,100 | 20,518 | |
Capgemini SA | 114,700 | 13,381 | |
33,899 | |||
Semiconductors & Semiconductor Equipment - 0.3% | |||
Qualcomm, Inc. | 80,089 | 4,666 | |
Software - 1.2% | |||
Microsoft Corp. | 192,238 | 21,317 | |
Technology Hardware, Storage & Peripherals - 0.6% | |||
Apple, Inc. | 59,200 | 10,572 | |
TOTAL INFORMATION TECHNOLOGY | 115,865 | ||
MATERIALS - 4.3% | |||
Chemicals - 1.7% | |||
DowDuPont, Inc. | 504,500 | 29,185 | |
Containers & Packaging - 2.6% | |||
Graphic Packaging Holding Co. | 1,317,400 | 15,796 | |
Silgan Holdings, Inc. | 364,800 | 9,394 | |
WestRock Co. | 401,000 | 18,891 | |
44,081 | |||
TOTAL MATERIALS | 73,266 | ||
REAL ESTATE - 3.3% | |||
Equity Real Estate Investment Trusts (REITs) - 3.3% | |||
Brandywine Realty Trust (SBI) | 693,400 | 9,895 | |
CorePoint Lodging, Inc. | 213,000 | 2,997 | |
Outfront Media, Inc. | 191,600 | 3,981 | |
Potlatch Corp. | 211,400 | 7,843 | |
SL Green Realty Corp. | 132,300 | 12,756 | |
VEREIT, Inc. | 1,661,700 | 12,712 | |
WP Carey, Inc. | 85,700 | 5,806 | |
55,990 | |||
UTILITIES - 4.9% | |||
Electric Utilities - 4.6% | |||
Duke Energy Corp. | 222,000 | 19,663 | |
Exelon Corp. | 660,000 | 30,617 | |
PPL Corp. | 545,600 | 16,690 | |
Xcel Energy, Inc. | 204,300 | 10,716 | |
77,686 | |||
Independent Power and Renewable Electricity Producers - 0.3% | |||
NRG Yield, Inc. Class C | 301,100 | 5,498 | |
TOTAL UTILITIES | 83,184 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,543,516) | 1,675,712 | ||
Convertible Preferred Stocks - 0.1% | |||
CONSUMER STAPLES - 0.0% | |||
Food Products - 0.0% | |||
Bunge Ltd. 4.875% | 1,300 | 130 | |
HEALTH CARE - 0.0% | |||
Health Care Equipment & Supplies - 0.0% | |||
Becton, Dickinson & Co. Series A, 6.125% | 1,850 | 117 | |
INDUSTRIALS - 0.0% | |||
Electrical Equipment - 0.0% | |||
Fortive Corp. Series A, 5.00% | 70 | 69 | |
UTILITIES - 0.1% | |||
Electric Utilities - 0.1% | |||
Vistra Energy Corp. 7.00% | 5,000 | 467 | |
Multi-Utilities - 0.0% | |||
CenterPoint Energy, Inc. 2.00% ZENS | 3,700 | 163 | |
TOTAL UTILITIES | 630 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $966) | 946 | ||
Principal Amount (000s) | Value (000s) | ||
Corporate Bonds - 0.2% | |||
Convertible Bonds - 0.1% | |||
COMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Intelsat SA 4.5% 6/15/25 (e) | 34 | 55 | |
Interactive Media & Services - 0.0% | |||
Twitter, Inc. 0.25% 6/15/24 (e) | 192 | 173 | |
Media - 0.0% | |||
DISH Network Corp. 3.375% 8/15/26 | 81 | 71 | |
Liberty Media Corp. 1.375% 10/15/23 | 274 | 305 | |
376 | |||
TOTAL COMMUNICATION SERVICES | 604 | ||
CONSUMER DISCRETIONARY - 0.0% | |||
Hotels, Restaurants & Leisure - 0.0% | |||
Caesars Entertainment Corp. 5% 10/1/24 | 35 | 49 | |
Internet & Direct Marketing Retail - 0.0% | |||
MercadoLibre, Inc. 2% 8/15/28 (e) | 113 | 113 | |
TOTAL CONSUMER DISCRETIONARY | 162 | ||
ENERGY - 0.0% | |||
Oil, Gas & Consumable Fuels - 0.0% | |||
Chesapeake Energy Corp. 5.5% 9/15/26 | 70 | 61 | |
Scorpio Tankers, Inc. 3% 5/15/22 | 595 | 492 | |
553 | |||
INDUSTRIALS - 0.0% | |||
Construction & Engineering - 0.0% | |||
Dycom Industries, Inc. 0.75% 9/15/21 | 60 | 59 | |
Electrical Equipment - 0.0% | |||
SolarCity Corp. 1.625% 11/1/19 | 34 | 32 | |
TOTAL INDUSTRIALS | 91 | ||
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.0% | |||
Okta, Inc. 0.25% 2/15/23 (e) | 25 | 36 | |
Square, Inc. 0.375% 3/1/22 | 24 | 72 | |
108 | |||
Semiconductors & Semiconductor Equipment - 0.1% | |||
Intel Corp. 3.25% 8/1/39 | 93 | 223 | |
Microchip Technology, Inc. 1.625% 2/15/25 | 124 | 181 | |
Micron Technology, Inc. 3% 11/15/43 | 183 | 242 | |
ON Semiconductor Corp. 1.625% 10/15/23 | 59 | 68 | |
714 | |||
Software - 0.0% | |||
Atlassian, Inc. 0.625% 5/1/23 (e) | 40 | 49 | |
Coupa Software, Inc. 0.375% 1/15/23 (e) | 31 | 48 | |
97 | |||
TOTAL INFORMATION TECHNOLOGY | 919 | ||
TOTAL CONVERTIBLE BONDS | 2,329 | ||
Nonconvertible Bonds - 0.1% | |||
COMMUNICATION SERVICES - 0.0% | |||
Entertainment - 0.0% | |||
Viacom, Inc. 6.25% 2/28/57 (f) | 250 | 240 | |
CONSUMER DISCRETIONARY - 0.0% | |||
Diversified Consumer Services - 0.0% | |||
Laureate Education, Inc. 8.25% 5/1/25 (e) | 80 | 85 | |
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
California Resources Corp. 8% 12/15/22 (e) | 335 | 255 | |
Southwestern Energy Co. 4.1% 3/15/22 | 145 | 140 | |
395 | |||
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Valeant Pharmaceuticals International, Inc. 5.875% 5/15/23 (e) | 270 | 262 | |
TOTAL NONCONVERTIBLE BONDS | 982 | ||
TOTAL CORPORATE BONDS | |||
(Cost $3,466) | 3,311 | ||
Bank Loan Obligations - 0.0% | |||
INDUSTRIALS - 0.0% | |||
Commercial Services & Supplies - 0.0% | |||
Lineage Logistics Holdings, LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.3446% 2/27/25(f)(g) | |||
(Cost $478) | 478 | 468 | |
Shares | Value (000s) | ||
Other - 0.2% | |||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) (c)(d)(h) | |||
(Cost $5,865) | 5,865,354 | 2,865 | |
Money Market Funds - 0.7% | |||
Fidelity Cash Central Fund, 2.27%(i) | |||
(Cost $11,645) | 11,642,462 | 11,645 | |
TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
(Cost $1,565,936) | 1,694,947 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 2,161 | ||
NET ASSETS - 100% | $1,697,108 |
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 $4,568,000 or 0.3% of net assets.
(d) Level 3 security
(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 $6,216,000 or 0.4% of net assets.
(f) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(g) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(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.
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) | 10/5/16 - 9/1/17 | $5,865 |
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 | $356 |
Fidelity Securities Lending Cash Central Fund | 41 |
Total | $397 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $208,485 | $208,485 | $-- | $-- |
Consumer Discretionary | 44,732 | 43,029 | -- | 1,703 |
Consumer Staples | 141,398 | 130,979 | 10,419 | -- |
Energy | 170,848 | 170,848 | -- | -- |
Financials | 376,402 | 376,402 | -- | -- |
Health Care | 250,906 | 204,404 | 46,502 | -- |
Industrials | 154,952 | 154,883 | 69 | -- |
Information Technology | 115,865 | 115,865 | -- | -- |
Materials | 73,266 | 73,266 | -- | -- |
Real Estate | 55,990 | 55,990 | -- | -- |
Utilities | 83,814 | 83,184 | 630 | -- |
Corporate Bonds | 3,311 | -- | 3,311 | -- |
Bank Loan Obligations | 468 | -- | 468 | -- |
Other | 2,865 | -- | -- | 2,865 |
Money Market Funds | 11,645 | 11,645 | -- | -- |
Total Investments in Securities: | $1,694,947 | $1,628,980 | $61,399 | $4,568 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 82.9% |
United Kingdom | 5.8% |
Switzerland | 4.1% |
France | 2.1% |
Netherlands | 1.4% |
Canada | 1.3% |
Bailiwick of Guernsey | 1.2% |
Others (Individually Less Than 1%) | 1.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2018 | |
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $1,554,291) | $1,683,302 | |
Fidelity Central Funds (cost $11,645) | 11,645 | |
Total Investment in Securities (cost $1,565,936) | $1,694,947 | |
Restricted cash | 146 | |
Receivable for investments sold | 7,822 | |
Receivable for fund shares sold | 385 | |
Dividends receivable | 5,667 | |
Interest receivable | 28 | |
Distributions receivable from Fidelity Central Funds | 19 | |
Prepaid expenses | 3 | |
Other receivables | 139 | |
Total assets | 1,709,156 | |
Liabilities | ||
Payable to custodian bank | $41 | |
Payable for investments purchased | 7,543 | |
Payable for fund shares redeemed | 2,841 | |
Accrued management fee | 620 | |
Distribution and service plan fees payable | 535 | |
Other affiliated payables | 313 | |
Other payables and accrued expenses | 155 | |
Total liabilities | 12,048 | |
Net Assets | $1,697,108 | |
Net Assets consist of: | ||
Paid in capital | $1,389,674 | |
Total distributable earnings (loss) | 307,434 | |
Net Assets | $1,697,108 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($609,067 ÷ 19,316 shares) | $31.53 | |
Maximum offering price per share (100/94.25 of $31.53) | $33.45 | |
Class M: | ||
Net Asset Value and redemption price per share ($662,350 ÷ 20,544 shares) | $32.24 | |
Maximum offering price per share (100/96.50 of $32.24) | $33.41 | |
Class C: | ||
Net Asset Value and offering price per share ($159,991 ÷ 5,042 shares)(a) | $31.73 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($243,385 ÷ 7,378 shares) | $32.99 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($22,315 ÷ 677 shares) | $32.96 |
(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, 2018 | |
Investment Income | ||
Dividends | $54,914 | |
Interest | 176 | |
Income from Fidelity Central Funds | 397 | |
Total income | 55,487 | |
Expenses | ||
Management fee | $8,068 | |
Transfer agent fees | 3,408 | |
Distribution and service plan fees | 7,030 | |
Accounting and security lending fees | 563 | |
Custodian fees and expenses | 42 | |
Independent trustees' fees and expenses | 9 | |
Registration fees | 90 | |
Audit | 77 | |
Legal | 6 | |
Miscellaneous | 13 | |
Total expenses before reductions | 19,306 | |
Expense reductions | (213) | |
Total expenses after reductions | 19,093 | |
Net investment income (loss) | 36,394 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 198,637 | |
Fidelity Central Funds | (3) | |
Foreign currency transactions | 7 | |
Total net realized gain (loss) | 198,641 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (220,233) | |
Assets and liabilities in foreign currencies | (31) | |
Total change in net unrealized appreciation (depreciation) | (220,264) | |
Net gain (loss) | (21,623) | |
Net increase (decrease) in net assets resulting from operations | $14,771 |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $36,394 | $36,396 |
Net realized gain (loss) | 198,641 | 167,705 |
Change in net unrealized appreciation (depreciation) | (220,264) | 36,469 |
Net increase (decrease) in net assets resulting from operations | 14,771 | 240,570 |
Distributions to shareholders | (201,687) | – |
Distributions to shareholders from net investment income | – | (32,834) |
Distributions to shareholders from net realized gain | – | (30,058) |
Total distributions | (201,687) | (62,892) |
Share transactions - net increase (decrease) | (62,649) | (373,631) |
Total increase (decrease) in net assets | (249,565) | (195,953) |
Net Assets | ||
Beginning of period | 1,946,673 | 2,142,626 |
End of period | $1,697,108 | $1,946,673 |
Other Information | ||
Undistributed net investment income end of period | $11,112 |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $34.96 | $32.05 | $31.10 | $34.44 | $31.60 |
Income from Investment Operations | |||||
Net investment income (loss)A | .68 | .62 | .59 | .92 | .84B |
Net realized and unrealized gain (loss) | (.37)C | 3.32 | 3.13 | (2.15) | 2.67 |
Total from investment operations | .31 | 3.94 | 3.72 | (1.23) | 3.51 |
Distributions from net investment income | (.78) | (.58)D | (.66) | (.98) | (.64) |
Distributions from net realized gain | (2.95) | (.46)D | (2.11) | (1.14) | (.04) |
Total distributions | (3.74)E | (1.03)F | (2.77) | (2.11)G | (.67)H |
Net asset value, end of period | $31.53 | $34.96 | $32.05 | $31.10 | $34.44 |
Total ReturnI,J | .77%C | 12.55% | 13.52% | (3.61)% | 11.28% |
Ratios to Average Net AssetsK,L | |||||
Expenses before reductions | .93% | .94% | .95% | .95% | .96% |
Expenses net of fee waivers, if any | .93% | .94% | .95% | .95% | .96% |
Expenses net of all reductions | .91% | .93% | .95% | .94% | .95% |
Net investment income (loss) | 2.11% | 1.88% | 2.01% | 2.85% | 2.55%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $609 | $686 | $703 | $688 | $794 |
Portfolio turnover rateM | 59% | 48% | 36% | 53% | 33% |
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 Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been .64%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $3.74 per share is comprised of distributions from net investment income of $.783 and distributions from net realized gain of $2.952 per share.
F Total distributions of $1.03 per share is comprised of distributions from net investment income of $.577 and distributions from net realized gain of $.456 per share.
G 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.
H 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.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J Total returns do not include the effect of the sales charges.
K 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.
L 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.
M 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.
Fidelity Advisor Equity Income Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $35.65 | $32.66 | $31.64 | $34.99 | $32.09 |
Income from Investment Operations | |||||
Net investment income (loss)A | .62 | .56 | .53 | .86 | .78B |
Net realized and unrealized gain (loss) | (.38)C | 3.38 | 3.19 | (2.18) | 2.72 |
Total from investment operations | .24 | 3.94 | 3.72 | (1.32) | 3.50 |
Distributions from net investment income | (.70) | (.50)D | (.59) | (.89) | (.56) |
Distributions from net realized gain | (2.95) | (.46)D | (2.11) | (1.14) | (.04) |
Total distributions | (3.65) | (.95)E | (2.70) | (2.03) | (.60) |
Net asset value, end of period | $32.24 | $35.65 | $32.66 | $31.64 | $34.99 |
Total ReturnF,G | .56%C | 12.29% | 13.24% | (3.83)% | 11.04% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.16% | 1.17% | 1.18% | 1.18% | 1.18% |
Expenses net of fee waivers, if any | 1.16% | 1.17% | 1.18% | 1.18% | 1.18% |
Expenses net of all reductions | 1.15% | 1.17% | 1.18% | 1.17% | 1.18% |
Net investment income (loss) | 1.88% | 1.64% | 1.78% | 2.62% | 2.33%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $662 | $775 | $787 | $813 | $974 |
Portfolio turnover rateJ | 59% | 48% | 36% | 53% | 33% |
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 Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been .43%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $.95 per share is comprised of distributions from net investment income of $.495 and distributions from net realized gain of $.456 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H��Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J 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.
Fidelity Advisor Equity Income Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $35.15 | $32.21 | $31.24 | $34.57 | $31.73 |
Income from Investment Operations | |||||
Net investment income (loss)A | .44 | .37 | .37 | .68 | .59B |
Net realized and unrealized gain (loss) | (.39)C | 3.35 | 3.14 | (2.15) | 2.69 |
Total from investment operations | .05 | 3.72 | 3.51 | (1.47) | 3.28 |
Distributions from net investment income | (.52) | (.32)D | (.43) | (.72) | (.40) |
Distributions from net realized gain | (2.95) | (.46)D | (2.11) | (1.14) | (.04) |
Total distributions | (3.47) | (.78) | (2.54) | (1.86) | (.44) |
Net asset value, end of period | $31.73 | $35.15 | $32.21 | $31.24 | $34.57 |
Total ReturnE,F | (.01)%C | 11.72% | 12.63% | (4.34)% | 10.44% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.70% | 1.70% | 1.72% | 1.72% | 1.72% |
Expenses net of fee waivers, if any | 1.69% | 1.70% | 1.72% | 1.71% | 1.72% |
Expenses net of all reductions | 1.68% | 1.70% | 1.71% | 1.71% | 1.71% |
Net investment income (loss) | 1.34% | 1.11% | 1.24% | 2.09% | 1.79%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $160 | $195 | $198 | $187 | $214 |
Portfolio turnover rateI | 59% | 48% | 36% | 53% | 33% |
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 Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been (.14)%.
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.
Fidelity Advisor Equity Income Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $36.40 | $33.31 | $32.21 | $35.59 | $32.62 |
Income from Investment Operations | |||||
Net investment income (loss)A | .80 | .74 | .69 | 1.04 | .95B |
Net realized and unrealized gain (loss) | (.39)C | 3.46 | 3.26 | (2.23) | 2.77 |
Total from investment operations | .41 | 4.20 | 3.95 | (1.19) | 3.72 |
Distributions from net investment income | (.87) | (.65)D | (.74) | (1.06) | (.72) |
Distributions from net realized gain | (2.95) | (.46)D | (2.11) | (1.14) | (.04) |
Total distributions | (3.82) | (1.11) | (2.85) | (2.19)E | (.75)F |
Net asset value, end of period | $32.99 | $36.40 | $33.31 | $32.21 | $35.59 |
Total ReturnG | 1.05%C | 12.86% | 13.82% | (3.37)% | 11.59% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .67% | .68% | .69% | .69% | .70% |
Expenses net of fee waivers, if any | .67% | .68% | .69% | .69% | .70% |
Expenses net of all reductions | .66% | .68% | .68% | .69% | .70% |
Net investment income (loss) | 2.37% | 2.14% | 2.27% | 3.11% | 2.81%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $243 | $269 | $439 | $428 | $496 |
Portfolio turnover rateJ | 59% | 48% | 36% | 53% | 33% |
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 Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been .92%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E 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.
F 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.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Income Fund Class Z
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $36.38 | $33.30 | $32.21 | $35.59 | $32.63 |
Income from Investment Operations | |||||
Net investment income (loss)A | .85 | .79 | .74 | 1.08 | 1.03B |
Net realized and unrealized gain (loss) | (.40)C | 3.46 | 3.24 | (2.21) | 2.74 |
Total from investment operations | .45 | 4.25 | 3.98 | (1.13) | 3.77 |
Distributions from net investment income | (.91) | (.71)D | (.79) | (1.11) | (.78) |
Distributions from net realized gain | (2.95) | (.46)D | (2.11) | (1.14) | (.04) |
Total distributions | (3.87)E | (1.17) | (2.89)F | (2.25) | (.81)G |
Net asset value, end of period | $32.96 | $36.38 | $33.30 | $32.21 | $35.59 |
Total ReturnH | 1.16%C | 13.02% | 13.96% | (3.20)% | 11.75% |
Ratios to Average Net AssetsI,J | |||||
Expenses before reductions | .53% | .54% | .54% | .54% | .54% |
Expenses net of fee waivers, if any | .53% | .53% | .54% | .54% | .54% |
Expenses net of all reductions | .52% | .53% | .53% | .53% | .54% |
Net investment income (loss) | 2.51% | 2.28% | 2.42% | 3.26% | 2.97%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $22 | $23 | $15 | $14 | $4 |
Portfolio turnover rateK | 59% | 48% | 36% | 53% | 33% |
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 2.62%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 1.03%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $3.87 per share is comprised of distributions from net investment income of $.914 and distributions from net realized gain of $2.952 per share.
F 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.
G 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.
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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 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, 2018
(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 M, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan 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.
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, 2018 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 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. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. 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) for the Fund, certain independent Trustees have elected 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 of $96 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
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, 2018, 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 declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences resulted in distribution reclassifications for the period ended November 30, 2017. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, contingent interest, equity-debt classifications, certain conversion ratio adjustments, partnerships, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $245,528 |
Gross unrealized depreciation | (123,633) |
Net unrealized appreciation (depreciation) | $121,895 |
Tax Cost | $1,573,052 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $8,126 |
Undistributed long-term capital gain | $177,522 |
Net unrealized appreciation (depreciation) on securities and other investments | $121,883 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $51,747 | $ 40,933 |
Long-term Capital Gains | 149,940 | 21,959 |
Total | $201,687 | $ 62,892 |
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.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
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 $3,011 in this Subsidiary, representing .18% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,060,978 and $1,271,393, 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 .20% of the Fund's average net assets and an annualized group fee rate that averaged .24% 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 .44% 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% | $1,631 | $33 |
Class M | .25% | .25% | 3,620 | 37 |
Class C | .75% | .25% | 1,779 | 106 |
$7,030 | $176 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $73 |
Class M | 18 |
Class C(a) | 7 |
$98 |
(a) When 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 | $1,251 | .19 |
Class M | 1,297 | .18 |
Class C | 373 | .21 |
Class I | 477 | .19 |
Class Z | 10 | .05 |
$3,408 |
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. For the period, the fees were equivalent to an annual rate of .03%.
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 Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $10,289 | 1.60% | $–(a) |
(a) In the amount of less than five hundred dollars.
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 $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.
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. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $41, including less than five hundred dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $193 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 $20.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $73,142 | $– |
Class M | 78,843 | – |
Class C | 19,047 | – |
Class I | 27,992 | – |
Class Z | 2,663 | – |
Total | $201,687 | $– |
From net investment income | ||
Class A | $– | $12,166 |
Class M | – | 11,510 |
Class C | – | 1,935 |
Class I | – | 6,869 |
Class Z | – | 354 |
Total | $– | $32,834 |
From net realized gain | ||
Class A | $– | $10,013 |
Class M | – | 10,945 |
Class C | – | 2,825 |
Class I | – | 6,056 |
Class Z | – | 219 |
Total | $– | $30,058 |
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, 2018 | Year ended November 30, 2017 | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Class A | ||||
Shares sold | 1,364 | 1,839 | $44,044 | $60,638 |
Reinvestment of distributions | 2,152 | 640 | 69,531 | 20,942 |
Shares redeemed | (3,817) | (4,800) | (123,111) | (159,493) |
Net increase (decrease) | (301) | (2,321) | $(9,536) | $(77,913) |
Class M | ||||
Shares sold | 1,528 | 2,155 | $50,532 | $72,567 |
Reinvestment of distributions | 2,346 | 657 | 77,501 | 21,912 |
Shares redeemed | (5,063) | (5,187) | (166,867) | (175,531) |
Net increase (decrease) | (1,189) | (2,375) | $(38,834) | $(81,052) |
Class C | ||||
Shares sold | 345 | 679 | $11,204 | $22,478 |
Reinvestment of distributions | 547 | 132 | 17,821 | 4,349 |
Shares redeemed | (1,391) | (1,413) | (45,224) | (47,260) |
Net increase (decrease) | (499) | (602) | $(16,199) | $(20,433) |
Class I | ||||
Shares sold | 1,108 | 2,331 | $37,371 | $80,541 |
Reinvestment of distributions | 755 | 359 | 25,471 | 12,182 |
Shares redeemed | (1,870) | (8,490) | (63,128) | (292,840) |
Net increase (decrease) | (7) | (5,800) | $(286) | $(200,117) |
Class Z | ||||
Shares sold | 292 | 366 | $10,001 | $12,769 |
Reinvestment of distributions | 75 | 17 | 2,537 | 567 |
Shares redeemed | (309) | (216) | (10,332) | (7,452) |
Net increase (decrease) | 58 | 167 | $2,206 | $5,884 |
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 Equity Income Fund:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 14, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .93% | |||
Actual | $1,000.00 | $1,023.60 | $4.72 | |
Hypothetical-C | $1,000.00 | $1,020.41 | $4.71 | |
Class M | 1.16% | |||
Actual | $1,000.00 | $1,022.40 | $5.88 | |
Hypothetical-C | $1,000.00 | $1,019.25 | $5.87 | |
Class C | 1.69% | |||
Actual | $1,000.00 | $1,019.50 | $8.56 | |
Hypothetical-C | $1,000.00 | $1,016.60 | $8.54 | |
Class I | .67% | |||
Actual | $1,000.00 | $1,025.00 | $3.40 | |
Hypothetical-C | $1,000.00 | $1,021.71 | $3.40 | |
Class Z | .53% | |||
Actual | $1,000.00 | $1,025.70 | $2.69 | |
Hypothetical-C | $1,000.00 | $1,022.41 | $2.69 |
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 183/365 (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 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 Income Fund | ||||
Class A | 12/27/18 | 12/26/18 | $0.224 | $3.407 |
Class M | 12/27/18 | 12/26/18 | $0.203 | $3.407 |
Class C | 12/27/18 | 12/26/18 | $0.158 | $3.407 |
Class I | 12/27/18 | 12/26/18 | $0.244 | $3.407 |
Class Z | 12/27/18 | 12/26/18 | $0.257 | $3.407 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30 2018, $194,150,226, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.17% 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 94%, 100%, 100%, and 100%; Class M designates 99%, 100%, 100%, and 100% ; Class C designates 100%, 100%, 100%, and 100%; Class I designates 90%, 100%, 100%, and 100%; and Class Z designates 87%, 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 A designates 99%, 100%, 100%, and 100%; Class M designates 100%, 100%, 100%, and 100%; Class C designates 100%, 100%, 100%, and 100%; Class I designates 95%, 100%, 100%, and 100%; and Class Z designates 92%, 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.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Equity Income Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
EPI-ANN-0119
1.539449.122
Fidelity Advisor® Equity Value Fund Class A, Class M, Class C, Class I and Class Z Annual Report November 30, 2018 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (5.25)% | 6.20% | 11.46% |
Class M (incl. 3.50% sales charge) | (3.26)% | 6.41% | 11.42% |
Class C (incl. contingent deferred sales charge) | (1.29)% | 6.63% | 11.26% |
Class I | 0.75% | 7.78% | 12.42% |
Class Z | 0.91% | 7.83% | 12.45% |
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 February 1, 2017. Returns prior to February 1, 2017, are those of Class I.
$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, 2008, 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/0001379491-19-000231/img446433373_740.jpg)
Period Ending Values | ||
$29,585 | Fidelity Advisor® Equity Value Fund - Class A | |
$32,382 | Russell 3000® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Sean Gavin: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) gained roughly 0% to 1%, trailing the 2.62% advance of the benchmark Russell 3000® Value Index. Versus the index, security selection in the health care and financials sectors detracted the most. Stock picking in communications services also hurt, though the impact was essentially offset by a beneficial overweighting in the sector. Security selection among industrials and information technology stocks also helped, as did underweighting the lagging consumer discretionary and industrials sectors. In terms of individual stocks, an out-of-benchmark position in Bayer, a Germany-based pharmaceutical and life sciences company, hurt the fund's relative result the most as the company's legal liabilities related to Monsanto, which Bayer acquired in June, weighed on shares. The portfolio's lack of exposure to pharmaceutical company Merck, a non-index stock, coupled with an underweighting in competitor Pfizer, also hurt results given the strong performance of both stocks. Other relative detractors included British American Tobacco – a non-index holding – as well as information-analytics company Nielsen Holdings, which I sold in September. In contrast, the fund benefited from not owning poor-performing benchmark component General Electric. Our overweight stake in Twenty-First Century Fox also performed well, as the company agreed to be acquired by Disney. Biotechnology firm Amgen also contributed this period.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, 2018
% of fund's net assets | |
Berkshire Hathaway, Inc. Class B | 3.9 |
Wells Fargo & Co. | 3.4 |
Exxon Mobil Corp. | 3.0 |
CVS Health Corp. | 2.8 |
Comcast Corp. Class A | 2.8 |
Amgen, Inc. | 2.3 |
Verizon Communications, Inc. | 2.3 |
Chevron Corp. | 2.3 |
U.S. Bancorp | 2.2 |
Twenty-First Century Fox, Inc. Class A | 2.0 |
27.0 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 25.1 |
Health Care | 15.8 |
Communication Services | 13.4 |
Energy | 11.1 |
Consumer Staples | 9.3 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018 * | ||
Stocks | 95.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.6% |
* Foreign investments - 17.8%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 95.4% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 13.4% | |||
Diversified Telecommunication Services - 2.3% | |||
Verizon Communications, Inc. | 93,800 | $5,656,140 | |
Entertainment - 5.0% | |||
Cinemark Holdings, Inc. | 44,700 | 1,715,139 | |
Lions Gate Entertainment Corp. Class B | 94,681 | 1,707,098 | |
The Walt Disney Co. | 34,300 | 3,961,307 | |
Twenty-First Century Fox, Inc. Class A | 99,400 | 4,917,318 | |
12,300,862 | |||
Interactive Media & Services - 1.3% | |||
Alphabet, Inc. Class A (a) | 2,800 | 3,107,020 | |
Media - 4.8% | |||
Comcast Corp. Class A | 173,200 | 6,756,532 | |
comScore, Inc. (a) | 53,100 | 837,918 | |
Entercom Communications Corp. Class A (b) | 135,100 | 882,203 | |
Interpublic Group of Companies, Inc. | 134,000 | 3,149,000 | |
11,625,653 | |||
TOTAL COMMUNICATION SERVICES | 32,689,675 | ||
CONSUMER DISCRETIONARY - 2.2% | |||
Internet & Direct Marketing Retail - 0.5% | |||
eBay, Inc. (a) | 40,200 | 1,199,970 | |
Multiline Retail - 1.0% | |||
Dollar General Corp. | 22,300 | 2,475,077 | |
Textiles, Apparel & Luxury Goods - 0.7% | |||
PVH Corp. | 15,800 | 1,746,058 | |
TOTAL CONSUMER DISCRETIONARY | 5,421,105 | ||
CONSUMER STAPLES - 9.3% | |||
Beverages - 2.6% | |||
C&C Group PLC | 375,520 | 1,296,635 | |
Coca-Cola European Partners PLC | 29,600 | 1,436,784 | |
PepsiCo, Inc. | 29,600 | 3,609,424 | |
6,342,843 | |||
Food & Staples Retailing - 1.7% | |||
Sysco Corp. | 37,800 | 2,547,720 | |
Walmart, Inc. | 16,800 | 1,640,520 | |
4,188,240 | |||
Food Products - 4.5% | |||
Danone SA | 28,000 | 2,090,634 | |
Mondelez International, Inc. | 28,900 | 1,299,922 | |
Seaboard Corp. | 228 | 848,616 | |
The Hershey Co. | 28,600 | 3,097,380 | |
The J.M. Smucker Co. | 35,379 | 3,697,459 | |
11,034,011 | |||
Tobacco - 0.5% | |||
British American Tobacco PLC sponsored ADR | 30,000 | 1,046,100 | |
TOTAL CONSUMER STAPLES | 22,611,194 | ||
ENERGY - 11.1% | |||
Energy Equipment & Services - 1.3% | |||
Baker Hughes, a GE Co. Class A | 94,600 | 2,158,772 | |
FLEX LNG Ltd. (a)(b) | 590,771 | 1,037,906 | |
3,196,678 | |||
Oil, Gas & Consumable Fuels - 9.8% | |||
Chevron Corp. | 47,297 | 5,625,505 | |
Exxon Mobil Corp. | 91,300 | 7,258,350 | |
GasLog Ltd. | 27,500 | 570,900 | |
GasLog Partners LP | 85,400 | 1,965,054 | |
Golar LNG Partners LP | 122,600 | 1,489,590 | |
Hoegh LNG Partners LP | 59,300 | 1,016,995 | |
Phillips 66 Co. | 25,900 | 2,422,168 | |
Suncor Energy, Inc. | 52,400 | 1,689,547 | |
Teekay Corp. (b) | 43,700 | 192,717 | |
Teekay LNG Partners LP | 85,300 | 1,154,962 | |
Teekay Offshore Partners LP | 247,613 | 411,038 | |
23,796,826 | |||
TOTAL ENERGY | 26,993,504 | ||
FINANCIALS - 25.1% | |||
Banks - 9.5% | |||
M&T Bank Corp. | 12,900 | 2,180,229 | |
PNC Financial Services Group, Inc. | 29,000 | 3,937,620 | |
SunTrust Banks, Inc. | 53,800 | 3,372,722 | |
U.S. Bancorp | 99,966 | 5,444,148 | |
Wells Fargo & Co. | 153,832 | 8,350,001 | |
23,284,720 | |||
Capital Markets - 2.1% | |||
Goldman Sachs Group, Inc. | 15,600 | 2,974,764 | |
State Street Corp. | 28,000 | 2,044,560 | |
5,019,324 | |||
Consumer Finance - 2.3% | |||
Capital One Financial Corp. | 22,118 | 1,983,542 | |
Discover Financial Services | 35,800 | 2,552,540 | |
Synchrony Financial | 39,800 | 1,034,004 | |
5,570,086 | |||
Diversified Financial Services - 4.3% | |||
Berkshire Hathaway, Inc. Class B (a) | 43,469 | 9,486,674 | |
Standard Life PLC | 307,649 | 1,040,426 | |
10,527,100 | |||
Insurance - 4.1% | |||
Allstate Corp. | 15,800 | 1,409,202 | |
Chubb Ltd. | 20,000 | 2,674,800 | |
FNF Group | 36,480 | 1,225,728 | |
Prudential PLC | 83,855 | 1,653,106 | |
The Travelers Companies, Inc. | 23,287 | 3,035,926 | |
9,998,762 | |||
Mortgage Real Estate Investment Trusts - 2.8% | |||
AGNC Investment Corp. | 142,001 | 2,513,418 | |
Annaly Capital Management, Inc. | 241,105 | 2,420,694 | |
MFA Financial, Inc. | 258,736 | 1,875,836 | |
6,809,948 | |||
TOTAL FINANCIALS | 61,209,940 | ||
HEALTH CARE - 15.8% | |||
Biotechnology - 4.1% | |||
Amgen, Inc. | 27,200 | 5,664,400 | |
Shire PLC sponsored ADR | 23,943 | 4,203,912 | |
9,868,312 | |||
Health Care Providers & Services - 6.9% | |||
Anthem, Inc. | 10,700 | 3,103,749 | |
Cigna Corp. | 19,100 | 4,266,558 | |
CVS Health Corp. | 85,004 | 6,817,321 | |
UnitedHealth Group, Inc. | 9,100 | 2,560,376 | |
16,748,004 | |||
Pharmaceuticals - 4.8% | |||
Allergan PLC | 17,800 | 2,787,480 | |
Bayer AG | 38,846 | 2,850,547 | |
Johnson & Johnson | 9,092 | 1,335,615 | |
Pfizer, Inc. | 25,300 | 1,169,619 | |
Roche Holding AG (participation certificate) | 5,684 | 1,475,476 | |
Sanofi SA sponsored ADR | 48,300 | 2,190,405 | |
11,809,142 | |||
TOTAL HEALTH CARE | 38,425,458 | ||
INDUSTRIALS - 5.1% | |||
Aerospace & Defense - 2.4% | |||
Harris Corp. | 11,300 | 1,615,335 | |
United Technologies Corp. | 34,300 | 4,179,112 | |
5,794,447 | |||
Air Freight & Logistics - 1.0% | |||
C.H. Robinson Worldwide, Inc. | 25,300 | 2,335,949 | |
Machinery - 1.0% | |||
Deere & Co. | 15,710 | 2,433,165 | |
Professional Services - 0.2% | |||
Nielsen Holdings PLC | 23,100 | 627,627 | |
Road & Rail - 0.5% | |||
Union Pacific Corp. | 8,500 | 1,307,130 | |
TOTAL INDUSTRIALS | 12,498,318 | ||
INFORMATION TECHNOLOGY - 3.2% | |||
Electronic Equipment & Components - 0.8% | |||
TE Connectivity Ltd. | 25,098 | 1,930,789 | |
IT Services - 2.4% | |||
Amdocs Ltd. | 30,400 | 1,973,264 | |
Cognizant Technology Solutions Corp. Class A | 36,900 | 2,628,387 | |
The Western Union Co. | 67,800 | 1,269,894 | |
5,871,545 | |||
TOTAL INFORMATION TECHNOLOGY | 7,802,334 | ||
MATERIALS - 3.2% | |||
Chemicals - 2.3% | |||
DowDuPont, Inc. | 28,300 | 1,637,155 | |
LyondellBasell Industries NV Class A | 27,600 | 2,575,356 | |
The Scotts Miracle-Gro Co. Class A | 17,600 | 1,337,248 | |
5,549,759 | |||
Containers & Packaging - 0.9% | |||
Ball Corp. | 11,100 | 545,121 | |
Graphic Packaging Holding Co. | 131,800 | 1,580,282 | |
2,125,403 | |||
TOTAL MATERIALS | 7,675,162 | ||
REAL ESTATE - 2.7% | |||
Equity Real Estate Investment Trusts (REITs) - 1.6% | |||
American Tower Corp. | 11,800 | 1,940,982 | |
Simon Property Group, Inc. | 9,900 | 1,838,331 | |
3,779,313 | |||
Real Estate Management & Development - 1.1% | |||
CBRE Group, Inc. (a) | 62,500 | 2,730,000 | |
TOTAL REAL ESTATE | 6,509,313 | ||
UTILITIES - 4.3% | |||
Electric Utilities - 3.4% | |||
Exelon Corp. | 93,700 | 4,346,743 | |
Xcel Energy, Inc. | 76,000 | 3,986,200 | |
8,332,943 | |||
Multi-Utilities - 0.9% | |||
Avista Corp. | 7,700 | 400,554 | |
WEC Energy Group, Inc. | 25,100 | 1,819,248 | |
2,219,802 | |||
TOTAL UTILITIES | 10,552,745 | ||
TOTAL COMMON STOCKS | |||
(Cost $205,872,068) | 232,388,748 | ||
Money Market Funds - 5.2% | |||
Fidelity Cash Central Fund, 2.27% (c) | 11,921,533 | 11,923,917 | |
Fidelity Securities Lending Cash Central Fund 2.27% (c)(d) | 887,690 | 887,778 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $12,811,644) | 12,811,695 | ||
TOTAL INVESTMENT IN SECURITIES - 100.6% | |||
(Cost $218,683,712) | 245,200,443 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (1,497,620) | ||
NET ASSETS - 100% | $243,702,823 |
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 | $112,026 |
Fidelity Securities Lending Cash Central Fund | 77,929 |
Total | $189,955 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $32,689,675 | $32,689,675 | $-- | $-- |
Consumer Discretionary | 5,421,105 | 5,421,105 | -- | -- |
Consumer Staples | 22,611,194 | 20,520,560 | 2,090,634 | -- |
Energy | 26,993,504 | 26,993,504 | -- | -- |
Financials | 61,209,940 | 59,556,834 | 1,653,106 | -- |
Health Care | 38,425,458 | 34,099,435 | 4,326,023 | -- |
Industrials | 12,498,318 | 12,498,318 | -- | -- |
Information Technology | 7,802,334 | 7,802,334 | -- | -- |
Materials | 7,675,162 | 7,675,162 | -- | -- |
Real Estate | 6,509,313 | 6,509,313 | -- | -- |
Utilities | 10,552,745 | 10,552,745 | -- | -- |
Money Market Funds | 12,811,695 | 12,811,695 | -- | -- |
Total Investments in Securities: | $245,200,443 | $237,130,680 | $8,069,763 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 82.2% |
Marshall Islands | 2.6% |
Switzerland | 2.5% |
United Kingdom | 2.4% |
France | 1.8% |
Bailiwick of Jersey | 1.8% |
Ireland | 1.6% |
Canada | 1.4% |
Germany | 1.2% |
Netherlands | 1.1% |
Others (Individually Less Than 1%) | 1.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $844,585) — See accompanying schedule: Unaffiliated issuers (cost $205,872,068) | $232,388,748 | |
Fidelity Central Funds (cost $12,811,644) | 12,811,695 | |
Total Investment in Securities (cost $218,683,712) | $245,200,443 | |
Receivable for investments sold | 1,137,623 | |
Receivable for fund shares sold | 44,377 | |
Dividends receivable | 662,781 | |
Distributions receivable from Fidelity Central Funds | 21,256 | |
Prepaid expenses | 432 | |
Other receivables | 6,139 | |
Total assets | 247,073,051 | |
Liabilities | ||
Payable to custodian bank | $10 | |
Payable for investments purchased | 938,834 | |
Payable for fund shares redeemed | 1,318,155 | |
Accrued management fee | 87,028 | |
Distribution and service plan fees payable | 43,484 | |
Other affiliated payables | 48,482 | |
Other payables and accrued expenses | 47,286 | |
Collateral on securities loaned | 886,949 | |
Total liabilities | 3,370,228 | |
Net Assets | $243,702,823 | |
Net Assets consist of: | ||
Paid in capital | $199,214,119 | |
Total distributable earnings (loss) | 44,488,704 | |
Net Assets | $243,702,823 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($67,457,436 ÷ 3,594,014 shares) | $18.77 | |
Maximum offering price per share (100/94.25 of $18.77) | $19.92 | |
Class M: | ||
Net Asset Value and redemption price per share ($30,029,993 ÷ 1,603,134 shares) | $18.73 | |
Maximum offering price per share (100/96.50 of $18.73) | $19.41 | |
Class C: | ||
Net Asset Value and offering price per share ($21,206,199 ÷ 1,161,855 shares)(a) | $18.25 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($122,602,843 ÷ 6,420,768 shares) | $19.09 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($2,406,352 ÷ 125,824 shares) | $19.12 |
(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, 2018 | ||
Investment Income | ||
Dividends | $6,160,860 | |
Income from Fidelity Central Funds | 189,955 | |
Total income | 6,350,815 | |
Expenses | ||
Management fee | ||
Basic fee | $1,439,653 | |
Performance adjustment | (250,880) | |
Transfer agent fees | 526,388 | |
Distribution and service plan fees | 580,911 | |
Accounting and security lending fees | 104,278 | |
Custodian fees and expenses | 16,462 | |
Independent trustees' fees and expenses | 1,377 | |
Registration fees | 73,112 | |
Audit | 59,275 | |
Legal | 4,882 | |
Miscellaneous | 1,749 | |
Total expenses before reductions | 2,557,207 | |
Expense reductions | (16,156) | |
Total expenses after reductions | 2,541,051 | |
Net investment income (loss) | 3,809,764 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 16,607,909 | |
Fidelity Central Funds | (120) | |
Foreign currency transactions | (4,416) | |
Total net realized gain (loss) | 16,603,373 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (18,702,825) | |
Fidelity Central Funds | (40) | |
Assets and liabilities in foreign currencies | (1,475) | |
Total change in net unrealized appreciation (depreciation) | (18,704,340) | |
Net gain (loss) | (2,100,967) | |
Net increase (decrease) in net assets resulting from operations | $1,708,797 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,809,764 | $2,567,475 |
Net realized gain (loss) | 16,603,373 | 3,171,857 |
Change in net unrealized appreciation (depreciation) | (18,704,340) | 26,265,201 |
Net increase (decrease) in net assets resulting from operations | 1,708,797 | 32,004,533 |
Distributions to shareholders | (2,675,097) | – |
Distributions to shareholders from net investment income | – | (1,129,904) |
Total distributions | (2,675,097) | (1,129,904) |
Share transactions - net increase (decrease) | (38,293,331) | 78,757,819 |
Total increase (decrease) in net assets | (39,259,631) | 109,632,448 |
Net Assets | ||
Beginning of period | 282,962,454 | 173,330,006 |
End of period | $243,702,823 | $282,962,454 |
Other Information | ||
Undistributed net investment income end of period | $1,877,265 |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.84 | $16.46 | $15.66 | $16.00 | $13.93 |
Income from Investment Operations | |||||
Net investment income (loss)A | .26 | .21 | .17 | .35B | .17 |
Net realized and unrealized gain (loss) | (.16) | 2.30 | 1.00 | (.50)C | 2.01 |
Total from investment operations | .10 | 2.51 | 1.17 | (.15) | 2.18 |
Distributions from net investment income | (.13) | (.13) | (.24)D | (.19) | (.11) |
Distributions from net realized gain | (.05) | – | (.13)D | – | – |
Total distributions | (.17)E | (.13) | (.37) | (.19) | (.11) |
Net asset value, end of period | $18.77 | $18.84 | $16.46 | $15.66 | $16.00 |
Total ReturnF,G | .53% | 15.35% | 7.75% | (.91)%C | 15.79% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.00% | 1.10% | 1.19% | 1.24% | 1.23% |
Expenses net of fee waivers, if any | 1.00% | 1.09% | 1.19% | 1.23% | 1.23% |
Expenses net of all reductions | 1.00% | 1.08% | 1.19% | 1.23% | 1.23% |
Net investment income (loss) | 1.39% | 1.18% | 1.08% | 2.23%B | 1.15% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $67,457 | $81,229 | $77,787 | $67,005 | $50,957 |
Portfolio turnover rateJ | 33% | 42% | 46% | 49% | 68% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.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 $.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 distributions of $.17 per share is comprised of distribution of $.126 from net investment income and distributions of $.045 from net realized gain per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J 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.
Fidelity Advisor Equity Value Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.80 | $16.43 | $15.62 | $15.96 | $13.90 |
Income from Investment Operations | |||||
Net investment income (loss)A | .21 | .16 | .12 | .31B | .13 |
Net realized and unrealized gain (loss) | (.16) | 2.30 | 1.01 | (.50)C | 2.01 |
Total from investment operations | .05 | 2.46 | 1.13 | (.19) | 2.14 |
Distributions from net investment income | (.07) | (.09) | (.19)D | (.15) | (.08) |
Distributions from net realized gain | (.05) | – | (.13)D | – | – |
Total distributions | (.12) | (.09) | (.32) | (.15) | (.08) |
Net asset value, end of period | $18.73 | $18.80 | $16.43 | $15.62 | $15.96 |
Total ReturnE,F | .25% | 15.02% | 7.49% | (1.19)%C | 15.46% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.27% | 1.36% | 1.46% | 1.50% | 1.49% |
Expenses net of fee waivers, if any | 1.27% | 1.35% | 1.46% | 1.50% | 1.49% |
Expenses net of all reductions | 1.26% | 1.35% | 1.45% | 1.50% | 1.49% |
Net investment income (loss) | 1.12% | .91% | .81% | 1.96%B | .88% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $30,030 | $38,976 | $38,565 | $34,643 | $31,087 |
Portfolio turnover rateI | 33% | 42% | 46% | 49% | 68% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.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 $.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.
Fidelity Advisor Equity Value Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.33 | $16.04 | $15.27 | $15.63 | $13.63 |
Income from Investment Operations | |||||
Net investment income (loss)A | .11 | .07 | .05 | .23B | .06 |
Net realized and unrealized gain (loss) | (.16) | 2.24 | .98 | (.49)C | 1.97 |
Total from investment operations | (.05) | 2.31 | 1.03 | (.26) | 2.03 |
Distributions from net investment income | – | (.02) | (.13)D | (.10) | (.03) |
Distributions from net realized gain | (.03) | – | (.13)D | – | – |
Total distributions | (.03) | (.02) | (.26) | (.10) | (.03) |
Net asset value, end of period | $18.25 | $18.33 | $16.04 | $15.27 | $15.63 |
Total ReturnE,F | (.29)% | 14.44% | 6.95% | (1.68)%C | 14.90% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.78% | 1.87% | 1.96% | 2.00% | 2.00% |
Expenses net of fee waivers, if any | 1.78% | 1.86% | 1.96% | 2.00% | 2.00% |
Expenses net of all reductions | 1.78% | 1.86% | 1.95% | 2.00% | 1.99% |
Net investment income (loss) | .61% | .40% | .31% | 1.46%B | .38% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $21,206 | $25,427 | $34,006 | $28,295 | $18,614 |
Portfolio turnover rateI | 33% | 42% | 46% | 49% | 68% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.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 $.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.
Fidelity Advisor Equity Value Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.18 | $16.74 | $15.93 | $16.27 | $14.16 |
Income from Investment Operations | |||||
Net investment income (loss)A | .32 | .26 | .21 | .40B | .22 |
Net realized and unrealized gain (loss) | (.17) | 2.35 | 1.02 | (.50)C | 2.04 |
Total from investment operations | .15 | 2.61 | 1.23 | (.10) | 2.26 |
Distributions from net investment income | (.19) | (.17) | (.29)D | (.24) | (.15) |
Distributions from net realized gain | (.05) | – | (.13)D | – | – |
Total distributions | (.24) | (.17) | (.42) | (.24) | (.15) |
Net asset value, end of period | $19.09 | $19.18 | $16.74 | $15.93 | $16.27 |
Total ReturnE | .75% | 15.73% | 8.02% | (.60)%C | 16.16% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .73% | .82% | .91% | .93% | .91% |
Expenses net of fee waivers, if any | .72% | .82% | .91% | .93% | .91% |
Expenses net of all reductions | .72% | .82% | .91% | .93% | .91% |
Net investment income (loss) | 1.66% | 1.45% | 1.36% | 2.53%B | 1.46% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $122,603 | $136,750 | $22,972 | $25,984 | $5,162 |
Portfolio turnover rateH | 33% | 42% | 46% | 49% | 68% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.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 $.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.
Fidelity Advisor Equity Value Fund Class Z
Years ended November 30, | 2018 | 2017 A |
Selected Per–Share Data | ||
Net asset value, beginning of period | $19.20 | $17.46 |
Income from Investment Operations | ||
Net investment income (loss)B | .34 | .24 |
Net realized and unrealized gain (loss) | (.16) | 1.50 |
Total from investment operations | .18 | 1.74 |
Distributions from net investment income | (.21) | – |
Distributions from net realized gain | (.05) | – |
Total distributions | (.26) | – |
Net asset value, end of period | $19.12 | $19.20 |
Total ReturnC,D | .91% | 9.97% |
Ratios to Average Net AssetsE,F | ||
Expenses before reductions | .59% | .69%G |
Expenses net of fee waivers, if any | .59% | .69%G |
Expenses net of all reductions | .58% | .68%G |
Net investment income (loss) | 1.80% | 1.59%G |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $2,406 | $581 |
Portfolio turnover rateH | 33% | 42% |
A For the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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, 2018
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 M, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs)and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018 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 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.
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, 2018, 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 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 and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $37,224,410 |
Gross unrealized depreciation | (11,182,612) |
Net unrealized appreciation (depreciation) | $26,041,798 |
Tax Cost | $219,158,645 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $3,336,531 |
Undistributed long-term capital gain | $15,205,952 |
Net unrealized appreciation (depreciation) on securities and other investments | $25,946,221 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $2,276,988 | $ 1,129,904 |
Long-term Capital Gains | 398,109 | – |
Total | $2,675,097 | $ 1,129,904 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $85,191,264 and $123,068,413, 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 .24% 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 .45% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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% | $183,598 | $2,955 |
Class M | .25% | .25% | 166,510 | 2,237 |
Class C | .75% | .25% | 230,803 | 19,664 |
$580,911 | $24,856 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $17,176 |
Class M | 3,349 |
Class C(a) | 1,579 |
$22,104 |
(a) When 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 | $151,619 | .21 |
Class M | 74,676 | .22 |
Class C | 54,298 | .24 |
Class I | 245,056 | .18 |
Class Z | 739 | .05 |
$526,388 |
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. For the period, the fees were equivalent to an annual rate of .04%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,951 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 $3,296.
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 $743 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 $77,929. 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 $13,269 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 fee by $53.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $2,834.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $728,057 | $– |
Class M | 243,030 | – |
Class C | 36,911 | – |
Class I | 1,656,313 | – |
Class Z | 10,786 | – |
Total | $2,675,097 | $– |
From net investment income | ||
Class A | $– | $626,176 |
Class M | – | 207,819 |
Class C | – | 51,210 |
Class I | – | 244,699 |
Total | $– | $1,129,904 |
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, 2018 | Year ended November 30, 2017(a) | Year ended November 30, 2018 | Year ended November 30, 2017(a) | |
Class A | ||||
Shares sold | 430,532 | 865,189 | $8,163,680 | $15,229,834 |
Reinvestment of distributions | 37,430 | 35,742 | 710,804 | 606,547 |
Shares redeemed | (1,184,591) | (1,315,692) | (22,299,608) | (23,326,026) |
Net increase (decrease) | (716,629) | (414,761) | $(13,425,124) | $(7,489,645) |
Class M | ||||
Shares sold | 115,992 | 330,063 | $2,192,989 | $5,777,329 |
Reinvestment of distributions | 12,686 | 12,052 | 241,033 | 204,639 |
Shares redeemed | (598,236) | (616,921) | (11,241,304) | (10,915,731) |
Net increase (decrease) | (469,558) | (274,806) | $(8,807,282) | $(4,933,763) |
Class C | ||||
Shares sold | 160,672 | 247,472 | $2,951,495 | $4,232,230 |
Reinvestment of distributions | 1,869 | 2,866 | 34,762 | 47,668 |
Shares redeemed | (387,892) | (983,824) | (7,170,975) | (16,852,316) |
Net increase (decrease) | (225,351) | (733,486) | $(4,184,718) | $(12,572,418) |
Class I | ||||
Shares sold | 1,756,303 | 7,069,018 | $33,530,713 | $126,873,595 |
Reinvestment of distributions | 77,656 | 8,771 | 1,495,652 | 151,116 |
Shares redeemed | (2,543,433) | (1,319,482) | (48,747,625) | (23,819,535) |
Net increase (decrease) | (709,474) | 5,758,307 | $(13,721,260) | $103,205,176 |
Class Z | ||||
Shares sold | 125,790 | 49,947 | $2,429,543 | $913,661 |
Reinvestment of distributions | 526 | – | 10,140 | – |
Shares redeemed | (30,752) | (19,687) | (594,630) | (365,192) |
Net increase (decrease) | 95,564 | 30,260 | $1,845,053 | $548,469 |
(a) Share transactions for Class Z are for the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
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 Equity Value Fund:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 16, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Boared (if any), 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 281 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .95% | |||
Actual | $1,000.00 | $1,019.60 | $4.81 | |
Hypothetical-C | $1,000.00 | $1,020.31 | $4.81 | |
Class M | 1.22% | |||
Actual | $1,000.00 | $1,017.90 | $6.17 | |
Hypothetical-C | $1,000.00 | $1,018.95 | $6.17 | |
Class C | 1.73% | |||
Actual | $1,000.00 | $1,015.00 | $8.74 | |
Hypothetical-C | $1,000.00 | $1,016.39 | $8.74 | |
Class I | .68% | |||
Actual | $1,000.00 | $1,020.30 | $3.44 | |
Hypothetical-C | $1,000.00 | $1,021.66 | $3.45 | |
Class Z | .57% | |||
Actual | $1,000.00 | $1,021.40 | $2.89 | |
Hypothetical-C | $1,000.00 | $1,022.21 | $2.89 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Equity Value 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 Value Fund | ||||
Class A | 12/27/18 | 12/26/18 | $0.283 | $1.185 |
Class M | 12/27/18 | 12/26/18 | $0.229 | $1.185 |
Class C | 12/27/18 | 12/26/18 | $0.131 | $1.185 |
Class I | 12/27/18 | 12/26/18 | $0.337 | $1.185 |
Class Z | 12/27/18 | 12/26/18 | $0.369 | $1.185 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $16,587,003, or, if subsequently determined to be different, the net capital gain of such year.
Class A designates 100%; Class M designates 100%; Class I designates 98%; and Class Z designates 89%; of the dividends distributed in November, as indicated in the Corporate Qualifying memo distributed by the Tax department, during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class M, 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Equity Value Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund’s Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund’s assets; (ii) the fees and expenses paid by shareholders, including the expense cap arrangement currently in place for the fund; (iii) the nature, extent or quality of services provided under the fund’s Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund’s Advisory Contracts are fair and reasonable, and that the fund’s Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund’s Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity’s non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund’s management fee structure is fair and reasonable, and that the continuation of the fund’s Advisory Contracts should be approved.
AEV-ANN-0119
1.767075.117
Fidelity Advisor® Growth & Income Fund Class A, Class M, Class C, Class I and Class Z Annual Report November 30, 2018 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (2.53)% | 7.02% | 12.31% |
Class M (incl. 3.50% sales charge) | (0.43)% | 7.26% | 12.30% |
Class C (incl. contingent deferred sales charge) | 1.70% | 7.49% | 12.14% |
Class I | 3.71% | 8.60% | 13.33% |
Class Z | 3.84% | 8.65% | 13.35% |
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 February 1, 2017. Returns prior to February 1, 2017, are those of Class I.
$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, 2008, 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/0001379491-19-000231/img446433543_740.jpg)
Period Ending Values | ||
$31,915 | Fidelity Advisor® Growth & Income Fund - Class A | |
$38,109 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Matthew Fruhan: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) gained roughly 3% to 4%, trailing the benchmark S&P 500® index. Versus the benchmark, a combination of unfavorable sector allocation and security selection weighed on our result. By sector, significant overweights in two lagging categories, energy and financials, detracted from relative performance, as did our large underweight in the outperforming consumer discretionary sector. Stock picking in consumer staples, industrials and health care also hurt relative performance, whereas picks in information technology and communication services were helpful. Our biggest individual detractors were an overweight in industrial conglomerate General Electric – which faced significant business challenges this period – and not owning benchmark component Amazon.com, which does not pay a dividend and whose valuation I found unattractive. Also detracting were our positions in financial services company State Street and diversified health care and agricultural company Bayer. On the positive side, relative performance benefited from not owning social-media giant and benchmark component Facebook, which faced concerns about the sustainability of revenue growth and costs related to privacy threats. Software company Microsoft – the fund's largest holding – added value, as did energy exploration and production company ConocoPhillips, which I sold from the portfolio in August.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, 2018
% of fund's net assets | |
Microsoft Corp. | 4.7 |
Exxon Mobil Corp. | 3.7 |
Comcast Corp. Class A | 3.6 |
Bank of America Corp. | 3.3 |
JPMorgan Chase & Co. | 2.7 |
Altria Group, Inc. | 2.7 |
Wells Fargo & Co. | 2.3 |
Chevron Corp. | 2.2 |
Apple, Inc.(a) | 2.2 |
CVS Health Corp. | 2.0 |
29.4 |
(a) Security or a portion of the security is pledged as collateral for call options written.
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 19.8 |
Health Care | 15.1 |
Information Technology | 14.9 |
Energy | 12.2 |
Industrials | 11.8 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018*,** | ||
Stocks | 97.5% | |
Convertible Securities | 0.3% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.1% |
* Foreign investments - 12.4%
** Written options - (0.0)%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 97.5% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 7.7% | |||
Diversified Telecommunication Services - 1.8% | |||
AT&T, Inc. | 31,354 | $979 | |
Verizon Communications, Inc. | 146,809 | 8,853 | |
9,832 | |||
Entertainment - 0.8% | |||
Activision Blizzard, Inc. | 8,000 | 399 | |
The Walt Disney Co. | 18,600 | 2,148 | |
Vivendi SA | 78,800 | 1,965 | |
4,512 | |||
Interactive Media & Services - 0.7% | |||
Alphabet, Inc.: | |||
Class A (a) | 1,873 | 2,078 | |
Class C (a) | 1,813 | 1,984 | |
4,062 | |||
Media - 4.4% | |||
Comcast Corp. Class A | 518,158 | 20,213 | |
Interpublic Group of Companies, Inc. | 144,600 | 3,398 | |
Omnicom Group, Inc. | 17,200 | 1,324 | |
24,935 | |||
TOTAL COMMUNICATION SERVICES | 43,341 | ||
CONSUMER DISCRETIONARY - 2.2% | |||
Auto Components - 0.1% | |||
Gentex Corp. | 24,500 | 552 | |
Hotels, Restaurants & Leisure - 0.0% | |||
Cedar Fair LP (depositary unit) | 3,100 | 170 | |
Multiline Retail - 0.2% | |||
Target Corp. | 15,299 | 1,086 | |
Specialty Retail - 1.9% | |||
L Brands, Inc. | 60,200 | 1,993 | |
Lowe's Companies, Inc. | 54,557 | 5,149 | |
Ross Stores, Inc. | 20,400 | 1,787 | |
TJX Companies, Inc. | 36,040 | 1,761 | |
10,690 | |||
TOTAL CONSUMER DISCRETIONARY | 12,498 | ||
CONSUMER STAPLES - 9.4% | |||
Beverages - 1.5% | |||
The Coca-Cola Co. | 167,784 | 8,456 | |
Food & Staples Retailing - 1.8% | |||
Walgreens Boots Alliance, Inc. | 21,300 | 1,803 | |
Walmart, Inc. | 85,510 | 8,350 | |
10,153 | |||
Food Products - 0.4% | |||
The Hershey Co. | 19,700 | 2,134 | |
The Kraft Heinz Co. | 2,600 | 133 | |
2,267 | |||
Household Products - 1.7% | |||
Kimberly-Clark Corp. | 9,100 | 1,050 | |
Procter & Gamble Co. | 85,535 | 8,084 | |
Spectrum Brands Holdings, Inc. | 11,900 | 588 | |
9,722 | |||
Tobacco - 4.0% | |||
Altria Group, Inc. | 275,920 | 15,129 | |
British American Tobacco PLC sponsored ADR | 170,900 | 5,959 | |
Philip Morris International, Inc. | 15,000 | 1,298 | |
22,386 | |||
TOTAL CONSUMER STAPLES | 52,984 | ||
ENERGY - 12.1% | |||
Energy Equipment & Services - 1.5% | |||
Baker Hughes, a GE Co. Class A | 103,700 | 2,366 | |
Nabors Industries Ltd. | 63,800 | 206 | |
National Oilwell Varco, Inc. | 46,000 | 1,477 | |
Oceaneering International, Inc. (a) | 60,900 | 1,023 | |
Schlumberger Ltd. | 47,800 | 2,156 | |
TechnipFMC PLC | 41,600 | 961 | |
8,189 | |||
Oil, Gas & Consumable Fuels - 10.6% | |||
BP PLC sponsored ADR | 173,988 | 7,020 | |
Cabot Oil & Gas Corp. | 88,900 | 2,237 | |
Cenovus Energy, Inc. | 3,000 | 22 | |
Cenovus Energy, Inc. (Canada) | 782,327 | 5,782 | |
Chevron Corp. | 105,563 | 12,556 | |
Enterprise Products Partners LP | 16,300 | 428 | |
Equinor ASA sponsored ADR | 176,700 | 4,131 | |
Exxon Mobil Corp. | 258,400 | 20,543 | |
Imperial Oil Ltd. (b) | 102,800 | 3,062 | |
Kosmos Energy Ltd. (a) | 220,100 | 1,184 | |
Legacy Reserves, Inc. (a) | 86,500 | 186 | |
Teekay LNG Partners LP | 1,800 | 24 | |
The Williams Companies, Inc. | 91,746 | 2,323 | |
Valero Energy Corp. | 2,600 | 208 | |
59,706 | |||
TOTAL ENERGY | 67,895 | ||
FINANCIALS - 19.8% | |||
Banks - 13.5% | |||
Bank of America Corp. | 660,842 | 18,768 | |
Citigroup, Inc. | 160,427 | 10,394 | |
First Hawaiian, Inc. | 28,800 | 749 | |
JPMorgan Chase & Co. | 136,143 | 15,138 | |
M&T Bank Corp. | 5,600 | 946 | |
PNC Financial Services Group, Inc. | 43,616 | 5,922 | |
SunTrust Banks, Inc. | 85,335 | 5,350 | |
U.S. Bancorp | 101,430 | 5,524 | |
Wells Fargo & Co. | 240,150 | 13,035 | |
75,826 | |||
Capital Markets - 4.9% | |||
Apollo Global Management LLC Class A | 28,100 | 792 | |
Brookfield Asset Management, Inc. | 4,200 | 184 | |
Cboe Global Markets, Inc. | 6,310 | 679 | |
Charles Schwab Corp. | 56,513 | 2,532 | |
KKR & Co. LP | 102,213 | 2,343 | |
Morgan Stanley | 72,730 | 3,228 | |
Northern Trust Corp. | 73,537 | 7,297 | |
Oaktree Capital Group LLC Class A | 31,694 | 1,313 | |
S&P Global, Inc. | 6,100 | 1,115 | |
State Street Corp. | 110,870 | 8,096 | |
27,579 | |||
Insurance - 1.1% | |||
Chubb Ltd. | 16,200 | 2,167 | |
Marsh & McLennan Companies, Inc. | 20,566 | 1,824 | |
MetLife, Inc. | 12,000 | 536 | |
The Travelers Companies, Inc. | 12,000 | 1,564 | |
6,091 | |||
Thrifts & Mortgage Finance - 0.3% | |||
Radian Group, Inc. | 75,790 | 1,395 | |
TOTAL FINANCIALS | 110,891 | ||
HEALTH CARE - 14.8% | |||
Biotechnology - 1.0% | |||
Alexion Pharmaceuticals, Inc. (a) | 32,100 | 3,953 | |
Intercept Pharmaceuticals, Inc. (a) | 15,795 | 1,752 | |
5,705 | |||
Health Care Equipment & Supplies - 0.7% | |||
Becton, Dickinson & Co. | 800 | 202 | |
Boston Scientific Corp. (a) | 29,200 | 1,100 | |
Danaher Corp. | 20,800 | 2,278 | |
Zimmer Biomet Holdings, Inc. | 4,590 | 537 | |
4,117 | |||
Health Care Providers & Services - 7.0% | |||
AmerisourceBergen Corp. | 44,100 | 3,920 | |
Anthem, Inc. | 13,300 | 3,858 | |
Cardinal Health, Inc. | 77,600 | 4,255 | |
Cigna Corp. | 22,900 | 5,115 | |
CVS Health Corp. | 143,251 | 11,489 | |
Humana, Inc. | 4,400 | 1,450 | |
McKesson Corp. | 38,033 | 4,735 | |
Patterson Companies, Inc. | 61,400 | 1,558 | |
UnitedHealth Group, Inc. | 10,200 | 2,870 | |
39,250 | |||
Pharmaceuticals - 6.1% | |||
Allergan PLC | 4,000 | 626 | |
AstraZeneca PLC sponsored ADR | 57,900 | 2,306 | |
Bayer AG | 61,138 | 4,486 | |
Eli Lilly & Co. | 9,200 | 1,091 | |
GlaxoSmithKline PLC sponsored ADR | 217,209 | 9,095 | |
Johnson & Johnson | 70,601 | 10,371 | |
Novartis AG sponsored ADR | 5,101 | 467 | |
Perrigo Co. PLC | 13,900 | 866 | |
Sanofi SA | 26,518 | 2,404 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 110,474 | 2,380 | |
34,092 | |||
TOTAL HEALTH CARE | 83,164 | ||
INDUSTRIALS - 11.8% | |||
Aerospace & Defense - 2.2% | |||
General Dynamics Corp. | 13,900 | 2,570 | |
Huntington Ingalls Industries, Inc. | 2,600 | 560 | |
Meggitt PLC | 17,233 | 114 | |
Rolls-Royce Holdings PLC | 99,000 | 1,075 | |
United Technologies Corp. | 64,631 | 7,875 | |
12,194 | |||
Air Freight & Logistics - 1.8% | |||
C.H. Robinson Worldwide, Inc. | 17,900 | 1,653 | |
Expeditors International of Washington, Inc. | 800 | 61 | |
United Parcel Service, Inc. Class B | 74,679 | 8,610 | |
10,324 | |||
Building Products - 0.0% | |||
A.O. Smith Corp. | 2,600 | 123 | |
Commercial Services & Supplies - 0.3% | |||
Healthcare Services Group, Inc. (b) | 19,500 | 920 | |
Interface, Inc. | 34,000 | 551 | |
Ritchie Brothers Auctioneers, Inc. | 1,700 | 59 | |
Stericycle, Inc. (a) | 6,825 | 328 | |
1,858 | |||
Electrical Equipment - 0.8% | |||
Acuity Brands, Inc. | 17,000 | 2,210 | |
Hubbell, Inc. Class B | 15,612 | 1,720 | |
Rockwell Automation, Inc. | 1,900 | 331 | |
4,261 | |||
Industrial Conglomerates - 1.9% | |||
3M Co. | 2,500 | 520 | |
General Electric Co. | 1,381,793 | 10,363 | |
10,883 | |||
Machinery - 0.9% | |||
Donaldson Co., Inc. | 18,200 | 1,020 | |
Flowserve Corp. | 59,900 | 2,906 | |
Wabtec Corp. (b) | 13,700 | 1,296 | |
5,222 | |||
Professional Services - 0.3% | |||
Nielsen Holdings PLC | 50,000 | 1,359 | |
Road & Rail - 2.6% | |||
J.B. Hunt Transport Services, Inc. | 31,020 | 3,299 | |
Knight-Swift Transportation Holdings, Inc. Class A | 51,400 | 1,782 | |
Norfolk Southern Corp. | 20,008 | 3,416 | |
Union Pacific Corp. (c) | 38,500 | 5,921 | |
14,418 | |||
Trading Companies & Distributors - 1.0% | |||
Fastenal Co. | 38,800 | 2,299 | |
MSC Industrial Direct Co., Inc. Class A | 8,900 | 788 | |
Watsco, Inc. | 15,564 | 2,392 | |
5,479 | |||
TOTAL INDUSTRIALS | 66,121 | ||
INFORMATION TECHNOLOGY - 14.9% | |||
Communications Equipment - 0.7% | |||
Cisco Systems, Inc. (c) | 87,271 | 4,178 | |
Electronic Equipment & Components - 0.1% | |||
Avnet, Inc. | 10,400 | 456 | |
Philips Lighting NV (d) | 12,618 | 336 | |
792 | |||
IT Services - 2.7% | |||
IBM Corp. | 9,300 | 1,156 | |
MasterCard, Inc. Class A | 4,490 | 903 | |
Paychex, Inc. | 55,809 | 3,949 | |
Unisys Corp. (a)(b) | 72,692 | 983 | |
Visa, Inc. Class A | 57,040 | 8,083 | |
15,074 | |||
Semiconductors & Semiconductor Equipment - 2.1% | |||
Analog Devices, Inc. | 5,800 | 533 | |
Applied Materials, Inc. | 52,900 | 1,972 | |
Lam Research Corp. | 6,000 | 942 | |
Qualcomm, Inc. | 143,698 | 8,372 | |
11,819 | |||
Software - 6.9% | |||
Micro Focus International PLC | 63,343 | 1,244 | |
Microsoft Corp. | 235,373 | 26,096 | |
Oracle Corp. | 156,284 | 7,620 | |
SAP SE sponsored ADR | 34,700 | 3,598 | |
38,558 | |||
Technology Hardware, Storage & Peripherals - 2.4% | |||
Apple, Inc. (c) | 69,773 | 12,460 | |
Western Digital Corp. | 19,900 | 903 | |
13,363 | |||
TOTAL INFORMATION TECHNOLOGY | 83,784 | ||
MATERIALS - 1.6% | |||
Chemicals - 1.6% | |||
CF Industries Holdings, Inc. | 15,400 | 650 | |
DowDuPont, Inc. | 32,200 | 1,863 | |
International Flavors & Fragrances, Inc. | 6,500 | 921 | |
Johnson Matthey PLC | 1,500 | 56 | |
LyondellBasell Industries NV Class A | 19,700 | 1,838 | |
Nutrien Ltd. | 55,480 | 2,858 | |
The Scotts Miracle-Gro Co. Class A | 11,800 | 897 | |
9,083 | |||
REAL ESTATE - 1.7% | |||
Equity Real Estate Investment Trusts (REITs) - 1.7% | |||
American Tower Corp. | 13,300 | 2,188 | |
CoreSite Realty Corp. | 14,000 | 1,364 | |
Equinix, Inc. | 5,810 | 2,238 | |
Omega Healthcare Investors, Inc. | 12,000 | 455 | |
Public Storage | 7,700 | 1,642 | |
Sabra Health Care REIT, Inc. | 21,600 | 417 | |
Simon Property Group, Inc. | 3,200 | 594 | |
Spirit MTA REIT | 8,030 | 78 | |
Spirit Realty Capital, Inc. | 80,300 | 596 | |
9,572 | |||
UTILITIES - 1.5% | |||
Electric Utilities - 1.3% | |||
Duke Energy Corp. | 10,100 | 895 | |
Exelon Corp. | 72,700 | 3,373 | |
PPL Corp. | 60,700 | 1,857 | |
Southern Co. | 27,700 | 1,311 | |
7,436 | |||
Multi-Utilities - 0.2% | |||
Sempra Energy | 7,400 | 853 | |
TOTAL UTILITIES | 8,289 | ||
TOTAL COMMON STOCKS | |||
(Cost $436,679) | 547,622 | ||
Preferred Stocks - 0.2% | |||
Convertible Preferred Stocks - 0.2% | |||
HEALTH CARE - 0.2% | |||
Health Care Equipment & Supplies - 0.2% | |||
Becton, Dickinson & Co. Series A, 6.125% | 13,400 | 848 | |
Nonconvertible Preferred Stocks - 0.0% | |||
INDUSTRIALS - 0.0% | |||
Aerospace & Defense - 0.0% | |||
Rolls-Royce Holdings PLC: | |||
(C Shares) | 33,847,830 | 43 | |
Series C (a) | 4,554,000 | 6 | |
49 | |||
TOTAL PREFERRED STOCKS | |||
(Cost $722) | 897 | ||
Principal Amount (000s)(e) | Value (000s) | ||
Convertible Bonds - 0.1% | |||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Bayer Capital Corp. BV 5.625% 11/22/19(d) | |||
(Cost $534) | EUR 500 | 450 | |
Shares | Value (000s) | ||
Other - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Utica Shale Drilling Program (non-operating revenue interest) (f)(g)(h) | |||
(Cost $1,470) | 1,469,796 | 718 | |
Money Market Funds - 3.1% | |||
Fidelity Cash Central Fund, 2.27% (i) | 11,910,115 | 11,912 | |
Fidelity Securities Lending Cash Central Fund 2.27% (i)(j) | 5,593,623 | 5,594 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $17,506) | 17,506 | ||
TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
(Cost $456,911) | 567,193 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (5,712) | ||
NET ASSETS - 100% | $561,481 |
Written Options | ||||||
Counterparty | Number of Contracts | Notional Amount (000s) | Exercise Price | Expiration Date | Value (000s) | |
Call Options | ||||||
Apple, Inc. | Chicago Board Options Exchange | 69 | $1,232 | $235.00 | 12/21/18 | $0 |
Cabot Oil & Gas Corp. | Bank of America NA | 870 | 2,189 | 27.00 | 12/21/18 | (37) |
Cisco Systems, Inc. | Chicago Board Options Exchange | 173 | 828 | 48.00 | 12/21/18 | (17) |
Union Pacific Corp. | Chicago Board Options Exchange | 37 | 569 | 160.00 | 12/21/18 | (4) |
TOTAL WRITTEN OPTIONS | $(58) |
Currency Abbreviations
EUR – European Monetary Unit
Values shown as $0 in the Schedule of Investments 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 or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $2,629,000.
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $786,000 or 0.1% of net assets.
(e) Amount is stated in United States dollars unless otherwise noted.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $718,000 or 0.1% of net assets.
(h) Level 3 security
(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) |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $1,470 |
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 | $142 |
Fidelity Securities Lending Cash Central Fund | 68 |
Total | $210 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $43,341 | $41,376 | $1,965 | $-- |
Consumer Discretionary | 12,498 | 12,498 | -- | -- |
Consumer Staples | 52,984 | 52,984 | -- | -- |
Energy | 67,895 | 67,895 | -- | -- |
Financials | 110,891 | 110,891 | -- | -- |
Health Care | 84,012 | 76,274 | 7,738 | -- |
Industrials | 66,170 | 65,095 | 1,075 | -- |
Information Technology | 83,784 | 82,540 | 1,244 | -- |
Materials | 9,083 | 9,083 | -- | -- |
Real Estate | 9,572 | 9,572 | -- | -- |
Utilities | 8,289 | 8,289 | -- | -- |
Corporate Bonds | 450 | -- | 450 | -- |
Other | 718 | -- | -- | 718 |
Money Market Funds | 17,506 | 17,506 | -- | -- |
Total Investments in Securities: | $567,193 | $554,003 | $12,472 | $718 |
Derivative Instruments: | ||||
Liabilities | ||||
Written Options | $(58) | $(21) | $(37) | $-- |
Total Liabilities | $(58) | $(21) | $(37) | $-- |
Total Derivative Instruments: | $(58) | $(21) | $(37) | $-- |
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, 2018. 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 | $(58) |
Total Equity Risk | 0 | (58) |
Total Value of Derivatives | $0 | $(58) |
(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 | 87.6% |
United Kingdom | 5.3% |
Canada | 2.1% |
Germany | 1.4% |
Others (Individually Less Than 1%) | 3.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $5,337) — See accompanying schedule: Unaffiliated issuers (cost $439,405) | $549,687 | |
Fidelity Central Funds (cost $17,506) | 17,506 | |
Total Investment in Securities (cost $456,911) | $567,193 | |
Cash | 42 | |
Restricted cash | 37 | |
Receivable for investments sold | 903 | |
Receivable for fund shares sold | 46 | |
Dividends receivable | 1,526 | |
Interest receivable | 13 | |
Distributions receivable from Fidelity Central Funds | 20 | |
Prepaid expenses | 1 | |
Other receivables | 13 | |
Total assets | 569,794 | |
Liabilities | ||
Payable for investments purchased | $1,722 | |
Payable for fund shares redeemed | 379 | |
Accrued management fee | 206 | |
Distribution and service plan fees payable | 186 | |
Written options, at value (premium received $90) | 58 | |
Other affiliated payables | 109 | |
Other payables and accrued expenses | 57 | |
Collateral on securities loaned | 5,596 | |
Total liabilities | 8,313 | |
Net Assets | $561,481 | |
Net Assets consist of: | ||
Paid in capital | $392,515 | |
Total distributable earnings (loss) | 168,966 | |
Net Assets | $561,481 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($243,138 ÷ 8,473.33 shares) | $28.69 | |
Maximum offering price per share (100/94.25 of $28.69) | $30.44 | |
Class M: | ||
Net Asset Value and redemption price per share ($174,770 ÷ 6,096.74 shares) | $28.67 | |
Maximum offering price per share (100/96.50 of $28.67) | $29.71 | |
Class C: | ||
Net Asset Value and offering price per share ($75,195 ÷ 2,807.10 shares)(a) | $26.79 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($46,731 ÷ 1,593.42 shares) | $29.33 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($21,647 ÷ 737.45 shares) | $29.35 |
(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, 2018 | |
Investment Income | ||
Dividends | $14,260 | |
Interest | 32 | |
Income from Fidelity Central Funds | 210 | |
Total income | 14,502 | |
Expenses | ||
Management fee | $2,614 | |
Transfer agent fees | 1,125 | |
Distribution and service plan fees | 2,359 | |
Accounting and security lending fees | 221 | |
Custodian fees and expenses | 40 | |
Independent trustees' fees and expenses | 3 | |
Registration fees | 79 | |
Audit | 72 | |
Legal | 4 | |
Miscellaneous | 6 | |
Total expenses before reductions | 6,523 | |
Expense reductions | (36) | |
Total expenses after reductions | 6,487 | |
Net investment income (loss) | 8,015 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 60,256 | |
Fidelity Central Funds | (2) | |
Foreign currency transactions | (6) | |
Written options | 890 | |
Total net realized gain (loss) | 61,138 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (49,689) | |
Assets and liabilities in foreign currencies | (1) | |
Written options | 205 | |
Total change in net unrealized appreciation (depreciation) | (49,485) | |
Net gain (loss) | 11,653 | |
Net increase (decrease) in net assets resulting from operations | $19,668 |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $8,015 | $7,388 |
Net realized gain (loss) | 61,138 | 47,220 |
Change in net unrealized appreciation (depreciation) | (49,485) | 29,353 |
Net increase (decrease) in net assets resulting from operations | 19,668 | 83,961 |
Distributions to shareholders | (50,628) | – |
Distributions to shareholders from net investment income | – | (7,084) |
Distributions to shareholders from net realized gain | – | (9,088) |
Total distributions | (50,628) | (16,172) |
Share transactions - net increase (decrease) | (3,254) | (17,017) |
Total increase (decrease) in net assets | (34,214) | 50,772 |
Net Assets | ||
Beginning of period | 595,695 | 544,923 |
End of period | $561,481 | $595,695 |
Other Information | ||
Undistributed net investment income end of period | $4,231 |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $30.29 | $26.89 | $26.36 | $28.95 | $25.87 |
Income from Investment Operations | |||||
Net investment income (loss)A | .43 | .41 | .37 | .42 | .40 |
Net realized and unrealized gain (loss) | .58 | 3.83 | 2.12 | (.76)B | 2.97 |
Total from investment operations | 1.01 | 4.24 | 2.49 | (.34) | 3.37 |
Distributions from net investment income | (.36) | (.39)C | (.39) | (.36) | (.11) |
Distributions from net realized gain | (2.26) | (.45)C | (1.57) | (1.88) | (.18) |
Total distributions | (2.61)D | (.84) | (1.96) | (2.25)E | (.29) |
Net asset value, end of period | $28.69 | $30.29 | $26.89 | $26.36 | $28.95 |
Total ReturnF,G | 3.42% | 16.15% | 10.59% | (.96)%B | 13.20% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .96% | .97% | .99% | .99% | 1.01% |
Expenses net of fee waivers, if any | .96% | .97% | .99% | .98% | 1.01% |
Expenses net of all reductions | .95% | .97% | .99% | .98% | 1.01% |
Net investment income (loss) | 1.49% | 1.47% | 1.51% | 1.57% | 1.48% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $243 | $255 | $253 | $244 | $276 |
Portfolio turnover rateJ | 40% | 36% | 31% | 35% | 44% |
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 $.04 per share. Excluding these litigation proceeds, the total return would have been (1.10)%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $2.61 per share is comprised of distributions from net investment income of $.355 and distributions from net realized gain of $2.257 per share.
E 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.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J 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.
Fidelity Advisor Growth & Income Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $30.26 | $26.87 | $26.32 | $28.91 | $25.84 |
Income from Investment Operations | |||||
Net investment income (loss)A | .36 | .34 | .31 | .35 | .33 |
Net realized and unrealized gain (loss) | .59 | 3.82 | 2.12 | (.76)B | 2.97 |
Total from investment operations | .95 | 4.16 | 2.43 | (.41) | 3.30 |
Distributions from net investment income | (.28) | (.32)C | (.32) | (.29) | (.05) |
Distributions from net realized gain | (2.26) | (.45)C | (1.57) | (1.88) | (.18) |
Total distributions | (2.54) | (.77) | (1.88)D | (2.18)E | (.23) |
Net asset value, end of period | $28.67 | $30.26 | $26.87 | $26.32 | $28.91 |
Total ReturnF,G | 3.19% | 15.85% | 10.36% | (1.22)%B | 12.91% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.21% | 1.23% | 1.24% | 1.23% | 1.25% |
Expenses net of fee waivers, if any | 1.21% | 1.22% | 1.24% | 1.23% | 1.25% |
Expenses net of all reductions | 1.20% | 1.22% | 1.24% | 1.23% | 1.24% |
Net investment income (loss) | 1.24% | 1.22% | 1.26% | 1.32% | 1.24% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $175 | $186 | $176 | $180 | $216 |
Portfolio turnover rateJ | 40% | 36% | 31% | 35% | 44% |
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 $.04 per share. Excluding these litigation proceeds, the total return would have been (1.36)%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D 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.
E 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.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J 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.
Fidelity Advisor Growth & Income Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.45 | $25.33 | $24.92 | $27.51 | $24.66 |
Income from Investment Operations | |||||
Net investment income (loss)A | .20 | .19 | .17 | .21 | .19 |
Net realized and unrealized gain (loss) | .55 | 3.60 | 2.01 | (.73)B | 2.84 |
Total from investment operations | .75 | 3.79 | 2.18 | (.52) | 3.03 |
Distributions from net investment income | (.15) | (.22)C | (.21) | (.18) | – |
Distributions from net realized gain | (2.26) | (.45)C | (1.57) | (1.88) | (.18) |
Total distributions | (2.41) | (.67) | (1.77)D | (2.07)E | (.18) |
Net asset value, end of period | $26.79 | $28.45 | $25.33 | $24.92 | $27.51 |
Total ReturnF,G | 2.64% | 15.28% | 9.81% | (1.74)%B | 12.38% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.72% | 1.73% | 1.74% | 1.73% | 1.74% |
Expenses net of fee waivers, if any | 1.71% | 1.73% | 1.74% | 1.73% | 1.74% |
Expenses net of all reductions | 1.71% | 1.72% | 1.74% | 1.73% | 1.74% |
Net investment income (loss) | .73% | .72% | .76% | .82% | .74% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $75 | $86 | $80 | $79 | $85 |
Portfolio turnover rateJ | 40% | 36% | 31% | 35% | 44% |
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 $.04 per share. Excluding these litigation proceeds, the total return would have been (1.88)%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D 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.
E 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.
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.
Fidelity Advisor Growth & Income Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $30.91 | $27.41 | $26.85 | $29.47 | $26.13 |
Income from Investment Operations | |||||
Net investment income (loss)A | .52 | .50 | .44 | .50 | .49 |
Net realized and unrealized gain (loss) | .60 | 3.90 | 2.16 | (.78)B | 3.03 |
Total from investment operations | 1.12 | 4.40 | 2.60 | (.28) | 3.52 |
Distributions from net investment income | (.44) | (.45)C | (.48) | (.45) | – |
Distributions from net realized gain | (2.26) | (.45)C | (1.57) | (1.88) | (.18) |
Total distributions | (2.70) | (.90) | (2.04)D | (2.34)E | (.18) |
Net asset value, end of period | $29.33 | $30.91 | $27.41 | $26.85 | $29.47 |
Total ReturnF | 3.71% | 16.45% | 10.91% | (.70)%B | 13.56% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .69% | .70% | .73% | .71% | .70% |
Expenses net of fee waivers, if any | .69% | .70% | .73% | .70% | .70% |
Expenses net of all reductions | .69% | .70% | .73% | .70% | .70% |
Net investment income (loss) | 1.75% | 1.74% | 1.77% | 1.86% | 1.78% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $47 | $53 | $35 | $36 | $28 |
Portfolio turnover rateI | 40% | 36% | 31% | 35% | 44% |
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 $.04 per share. Excluding these litigation proceeds, the total return would have been (.84)%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D 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.
E 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.
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.
Fidelity Advisor Growth & Income Fund Class Z
Years ended November 30, | 2018 | 2017 A |
Selected Per–Share Data | ||
Net asset value, beginning of period | $30.94 | $27.35 |
Income from Investment Operations | ||
Net investment income (loss)B | .56 | .51 |
Net realized and unrealized gain (loss) | .59 | 3.08 |
Total from investment operations | 1.15 | 3.59 |
Distributions from net investment income | (.49) | – |
Distributions from net realized gain | (2.26) | – |
Total distributions | (2.74)C | – |
Net asset value, end of period | $29.35 | $30.94 |
Total ReturnD,E | 3.84% | 13.13% |
Ratios to Average Net AssetsF,G | ||
Expenses before reductions | .56% | .57%H |
Expenses net of fee waivers, if any | .56% | .57%H |
Expenses net of all reductions | .55% | .57%H |
Net investment income (loss) | 1.89% | 2.13%H |
Supplemental Data | ||
Net assets, end of period (in millions) | $22 | $16 |
Portfolio turnover rateI | 40% | 36% |
A For the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Total distributions of $2.74 per share is comprised of distributions from net investment income of $.486 and distributions from net realized gain of $2.257 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.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
(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 M, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 vendor or 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, 2018 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 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, 2018, 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 declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences resulted in distribution reclassifications for the period ended November 30, 2017. 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, equity-debt classifications, certain conversion ratio adjustments and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $148,709 |
Gross unrealized depreciation | (41,032) |
Net unrealized appreciation (depreciation) | $107,677 |
Tax Cost | $459,458 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $7,267 |
Undistributed long-term capital gain | $54,676 |
Net unrealized appreciation (depreciation) on securities and other investments | $107,023 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $8,206 | $ 7,671 |
Long-term Capital Gains | 42,422 | 8,501 |
Total | $50,628 | $ 16,172 |
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 $755 in this Subsidiary, representing .13% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
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. The Fund may be required to pledge collateral for the benefit of the counterparties on bi-lateral OTC derivatives in an amount not less than each counterparty's unrealized appreciation on outstanding derivative contracts, subject to certain minimum transfer provisions, and any such pledged collateral is identified in the Schedule of Investments. 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 presented in 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" and are representative of volume of activity during the period.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $231,479 and $283,249, 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 .24% 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 .44% 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% | $636 | $13 |
Class M | .25% | .25% | 913 | 18 |
Class C | .75% | .25% | 810 | 66 |
$2,359 | $97 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $50 |
Class M | 14 |
Class C(a) | 6 |
$70 |
(a) When 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 | $500 | .20 |
Class M | 359 | .20 |
Class C | 164 | .20 |
Class I | 90 | .18 |
Class Z | 12 | .05 |
$1,125 |
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. For the period, the fees were equivalent to an annual rate of .04%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $5 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $68, including an amount 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 $30 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 an amount less than five hundred dollars.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $6.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $21,875 | $– |
Class M | 15,518 | – |
Class C | 7,230 | – |
Class I | 4,343 | – |
Class Z | 1,662 | – |
Total | $50,628 | $– |
From net investment income | ||
Class A | $– | $3,625 |
Class M | – | 2,157 |
Class C | – | 717 |
Class I | – | 585 |
Total | $– | $7,084 |
From net realized gain | ||
Class A | $– | $4,131 |
Class M | – | 2,946 |
Class C | – | 1,429 |
Class I | – | 582 |
Total | $– | $9,088 |
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, 2018 | Year ended November 30, 2017(a) | Year ended November 30, 2018 | Year ended November 30, 2017(a) | |
Class A | ||||
Shares sold | 693 | 831 | $20,030 | $23,130 |
Reinvestment of distributions | 728 | 268 | 20,716 | 7,224 |
Shares redeemed | (1,369) | (2,104) | (39,630) | (58,668) |
Net increase (decrease) | 52 | (1,005) | $1,116 | $(28,314) |
Class M | ||||
Shares sold | 403 | 474 | $11,720 | $13,200 |
Reinvestment of distributions | 533 | 183 | 15,179 | 4,948 |
Shares redeemed | (977) | (1,071) | (28,255) | (30,045) |
Net increase (decrease) | (41) | (414) | $(1,356) | $(11,897) |
Class C | ||||
Shares sold | 259 | 381 | $7,069 | $10,013 |
Reinvestment of distributions | 251 | 76 | 6,699 | 1,930 |
Shares redeemed | (729) | (586) | (19,873) | (15,527) |
Net increase (decrease) | (219) | (129) | $(6,105) | $(3,584) |
Class I | ||||
Shares sold | 464 | 1,079 | $13,745 | $30,698 |
Reinvestment of distributions | 136 | 39 | 3,952 | 1,063 |
Shares redeemed | (714) | (705) | (21,373) | (20,133) |
Net increase (decrease) | (114) | 413 | $(3,676) | $11,628 |
Class Z | ||||
Shares sold | 711 | 538 | $21,177 | $15,811 |
Reinvestment of distributions | 15 | – | 433 | – |
Shares redeemed | (505) | (22) | (14,843) | (661) |
Net increase (decrease) | 221 | 516 | $6,767 | $15,150 |
(a) Share transactions for Class Z are for the period February 1, 2017 (commencement of sale of shares) to November 30, 2017
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:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 16, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .96% | |||
Actual | $1,000.00 | $1,019.20 | $4.86 | |
Hypothetical-C | $1,000.00 | $1,020.26 | $4.86 | |
Class M | 1.21% | |||
Actual | $1,000.00 | $1,018.50 | $6.12 | |
Hypothetical-C | $1,000.00 | $1,019.00 | $6.12 | |
Class C | 1.71% | |||
Actual | $1,000.00 | $1,015.50 | $8.64 | |
Hypothetical-C | $1,000.00 | $1,016.50 | $8.64 | |
Class I | .69% | |||
Actual | $1,000.00 | $1,020.90 | $3.50 | |
Hypothetical-C | $1,000.00 | $1,021.61 | $3.50 | |
Class Z | .55% | |||
Actual | $1,000.00 | $1,021.20 | $2.79 | |
Hypothetical-C | $1,000.00 | $1,022.31 | $2.79 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity 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 | 12/27/18 | 12/26/18 | $0.467 | $2.869 |
Class M | 12/27/18 | 12/26/18 | $0.393 | $2.869 |
Class C | 12/27/18 | 12/26/18 | $0.255 | $2.869 |
Class I | 12/27/18 | 12/26/18 | $0.544 | $2.869 |
Class Z | 12/27/18 | 12/26/18 | $0.544 | $2.869 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $54,941,788, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class M, Class C, Class I, and Class Z designate 100% of the dividends distributed in December 2017, during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class M, 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Growth & Income Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
AGAI-ANN-0119
1.539472.121
Fidelity Advisor® Growth Opportunities Fund Class A, Class M, Class C, Class I and Class Z Annual Report November 30, 2018 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 13.43% | 12.68% | 18.14% |
Class M (incl. 3.50% sales charge) | 15.86% | 12.95% | 18.16% |
Class C (incl. contingent deferred sales charge) | 18.44% | 13.17% | 17.95% |
Class I | 20.67% | 14.34% | 19.21% |
Class Z | 20.82% | 14.49% | 19.29% |
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, 2008, 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/0001379491-19-000231/img446433883_740.jpg)
Period Ending Values | ||
$52,957 | Fidelity Advisor® Growth Opportunities Fund - Class A | |
$46,203 | Russell 1000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Kyle Weaver: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 19% to 21%, more than double the 8.59% advance of the benchmark Russell 1000® Growth Index. Versus the benchmark, stock picking in the consumer staples sector stood out, including top contributor Juul Labs, a privately traded maker of e-cigarettes. Sales of the company’s e-cigarette devices and pods increased significantly the past 12 months, leading to a higher valuation. The company and the industry face a number of social and public policy concerns. Stock choices in information technology, consumer discretionary, industrials and communication services also lifted the fund’s relative result. Two holdings in software & services were top contributors: The Trade Desk and Wix.com. Carvana, a fast-growing online provider of used cars, further contributed. All of the contributors I’ve mentioned were out-of-benchmark holdings. Conversely, positioning in the health care sector detracted this period, along with stock selection in financials and materials. A non-index stake in software engineering provider Luxoft Holding was the fund’s largest relative detractor. A large overweighting in the shares of chemical company Chemours also detracted, as did a sizable non-benchmark stake in London-based British American Tobacco, the latter of which we sold off during the period.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, 2018
% of fund's net assets | |
JUUL Labs, Inc. Series C | 5.5 |
Amazon.com, Inc. | 5.3 |
Microsoft Corp. | 5.3 |
Alphabet, Inc. Class C | 5.1 |
Apple, Inc. | 4.5 |
Facebook, Inc. Class A | 2.6 |
Alphabet, Inc. Class A | 2.2 |
Salesforce.com, Inc. | 2.1 |
Tesla, Inc. | 1.9 |
The Trade Desk, Inc. | 1.8 |
36.3 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 36.6 |
Communication Services | 16.3 |
Consumer Discretionary | 13.9 |
Health Care | 11.8 |
Consumer Staples | 7.0 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 93.0% | |
Convertible Securities | 6.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
* Foreign investments - 11.9%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 93.0% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 16.0% | |||
Entertainment - 2.0% | |||
Activision Blizzard, Inc. | 405,100 | $20,206 | |
Electronic Arts, Inc. (a) | 123,600 | 10,391 | |
Netflix, Inc. (a) | 88,000 | 25,179 | |
Take-Two Interactive Software, Inc. (a) | 18,300 | 2,007 | |
The Walt Disney Co. | 106,400 | 12,288 | |
70,071 | |||
Interactive Media & Services - 10.5% | |||
Alphabet, Inc.: | |||
Class A (a) | 68,665 | 76,194 | |
Class C (a) | 163,375 | 178,803 | |
Facebook, Inc. Class A (a) | 643,241 | 90,446 | |
IAC/InterActiveCorp (a) | 85,800 | 15,269 | |
Momo, Inc. ADR (a) | 274,800 | 8,615 | |
369,327 | |||
Media - 1.7% | |||
Charter Communications, Inc. Class A (a) | 108,960 | 35,870 | |
Criteo SA sponsored ADR (a)(b) | 129,700 | 3,022 | |
Naspers Ltd. Class N | 106,800 | 21,293 | |
60,185 | |||
Wireless Telecommunication Services - 1.8% | |||
T-Mobile U.S., Inc. (a) | 944,200 | 64,630 | |
TOTAL COMMUNICATION SERVICES | 564,213 | ||
CONSUMER DISCRETIONARY - 13.9% | |||
Automobiles - 1.9% | |||
Tesla, Inc. (a) | 192,977 | 67,635 | |
Hotels, Restaurants & Leisure - 0.6% | |||
Hilton Grand Vacations, Inc. (a) | 275,200 | 8,823 | |
Hilton Worldwide Holdings, Inc. | 32,500 | 2,455 | |
Marriott International, Inc. Class A | 2,500 | 288 | |
Planet Fitness, Inc. (a) | 157,900 | 8,719 | |
20,285 | |||
Household Durables - 1.0% | |||
Mohawk Industries, Inc. (a) | 45,800 | 5,865 | |
Roku, Inc. Class A (a)(b) | 735,240 | 29,961 | |
35,826 | |||
Internet & Direct Marketing Retail - 8.0% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 236,700 | 38,076 | |
Amazon.com, Inc. (a) | 111,600 | 188,623 | |
Gaia, Inc. Class A (a) | 146,800 | 1,914 | |
Groupon, Inc. (a) | 1,285,238 | 3,946 | |
GrubHub, Inc. (a) | 44,700 | 3,500 | |
JD.com, Inc. sponsored ADR (a) | 417,600 | 8,866 | |
Meituan Dianping Class B | 978,300 | 6,558 | |
The Booking Holdings, Inc. (a) | 5,200 | 9,838 | |
Wayfair LLC Class A (a) | 198,965 | 21,130 | |
282,451 | |||
Multiline Retail - 0.5% | |||
Dollar Tree, Inc. (a) | 207,300 | 17,987 | |
Specialty Retail - 1.1% | |||
Floor & Decor Holdings, Inc. Class A (a)(b) | 499,600 | 16,552 | |
Home Depot, Inc. | 56,500 | 10,188 | |
Lowe's Companies, Inc. | 126,500 | 11,938 | |
Tiffany & Co., Inc. | 3,100 | 282 | |
38,960 | |||
Textiles, Apparel & Luxury Goods - 0.8% | |||
Allbirds, Inc. (c)(d) | 4,746 | 260 | |
Axonics Modulation Technologies, Inc. (a) | 20,700 | 273 | |
Carbon Black, Inc. (b) | 4,900 | 80 | |
lululemon athletica, Inc. (a) | 76,416 | 10,129 | |
Pinduoduo, Inc. ADR (b) | 719,100 | 16,511 | |
27,253 | |||
TOTAL CONSUMER DISCRETIONARY | 490,397 | ||
CONSUMER STAPLES - 1.5% | |||
Beverages - 0.6% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 44,200 | 8,653 | |
Fever-Tree Drinks PLC | 406,217 | 12,382 | |
21,035 | |||
Food & Staples Retailing - 0.7% | |||
BJ's Wholesale Club Holdings, Inc. | 564,300 | 13,182 | |
Costco Wholesale Corp. | 3,300 | 763 | |
Performance Food Group Co. (a) | 332,850 | 11,470 | |
Walmart, Inc. | 3,700 | 361 | |
25,776 | |||
Food Products - 0.0% | |||
nLIGHT, Inc. (a)(b) | 66,900 | 1,278 | |
Personal Products - 0.2% | |||
Unilever NV (Certificaten Van Aandelen) (Bearer) | 89,900 | 4,989 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. (c)(d) | 2,772 | 596 | |
TOTAL CONSUMER STAPLES | 53,674 | ||
ENERGY - 1.1% | |||
Oil, Gas & Consumable Fuels - 1.1% | |||
Oasis Petroleum, Inc. (a) | 146,200 | 1,044 | |
Reliance Industries Ltd. | 2,040,897 | 34,212 | |
Whiting Petroleum Corp. (a) | 138,710 | 4,199 | |
39,455 | |||
FINANCIALS - 4.7% | |||
Banks - 0.3% | |||
HDFC Bank Ltd. sponsored ADR | 94,211 | 9,555 | |
Capital Markets - 2.4% | |||
BlackRock, Inc. Class A | 30,200 | 12,926 | |
Cboe Global Markets, Inc. | 144,700 | 15,573 | |
Charles Schwab Corp. | 545,700 | 24,447 | |
Morningstar, Inc. | 5,000 | 591 | |
S&P Global, Inc. | 10,800 | 1,975 | |
TD Ameritrade Holding Corp. | 446,800 | 24,042 | |
Virtu Financial, Inc. Class A | 241,300 | 6,074 | |
85,628 | |||
Diversified Financial Services - 0.8% | |||
GDS Holdings Ltd. ADR (a)(b) | 953,700 | 28,125 | |
Thrifts & Mortgage Finance - 1.2% | |||
LendingTree, Inc. (a)(b) | 158,100 | 41,160 | |
TOTAL FINANCIALS | 164,468 | ||
HEALTH CARE - 11.8% | |||
Biotechnology - 5.7% | |||
ACADIA Pharmaceuticals, Inc. (a) | 174,500 | 3,326 | |
Acceleron Pharma, Inc. (a) | 52,400 | 2,774 | |
Acorda Therapeutics, Inc. (a) | 172,300 | 3,520 | |
Agios Pharmaceuticals, Inc. (a) | 54,400 | 3,580 | |
Alexion Pharmaceuticals, Inc. (a) | 328,800 | 40,492 | |
Allakos, Inc. (a) | 50,900 | 2,999 | |
Alnylam Pharmaceuticals, Inc. (a) | 82,212 | 6,672 | |
AnaptysBio, Inc. (a) | 63,100 | 4,706 | |
Array BioPharma, Inc. (a) | 132,200 | 2,106 | |
Ascendis Pharma A/S sponsored ADR (a) | 35,900 | 2,424 | |
Atara Biotherapeutics, Inc. (a) | 49,500 | 1,978 | |
aTyr Pharma, Inc. (a) | 124,576 | 77 | |
Audentes Therapeutics, Inc. (a) | 63,100 | 1,543 | |
BeiGene Ltd. | 129,100 | 1,422 | |
bluebird bio, Inc. (a) | 56,600 | 6,956 | |
Blueprint Medicines Corp. (a) | 23,100 | 1,325 | |
Coherus BioSciences, Inc. (a) | 409,894 | 4,533 | |
Crinetics Pharmaceuticals, Inc. (a) | 75,100 | 2,624 | |
Epizyme, Inc. (a) | 114,500 | 850 | |
FibroGen, Inc. (a) | 80,600 | 3,495 | |
Five Prime Therapeutics, Inc. (a) | 121,500 | 1,560 | |
Insmed, Inc. (a) | 472,679 | 8,466 | |
Intercept Pharmaceuticals, Inc. (a) | 28,035 | 3,109 | |
Ionis Pharmaceuticals, Inc. (a) | 336,453 | 19,612 | |
La Jolla Pharmaceutical Co. (a) | 67,400 | 975 | |
Mirati Therapeutics, Inc. (a) | 129,100 | 4,982 | |
Neurocrine Biosciences, Inc. (a) | 149,675 | 13,212 | |
Opko Health, Inc. (a) | 1 | 0 | |
Regeneron Pharmaceuticals, Inc. (a) | 12,900 | 4,717 | |
Rigel Pharmaceuticals, Inc. (a) | 498,548 | 1,411 | |
Sage Therapeutics, Inc. (a) | 34,344 | 3,960 | |
Sarepta Therapeutics, Inc. (a) | 121,828 | 15,773 | |
Sienna Biopharmaceuticals, Inc. (a) | 46,400 | 469 | |
Spark Therapeutics, Inc. (a) | 118,700 | 5,001 | |
TESARO, Inc. (a)(b) | 131,100 | 6,080 | |
Vertex Pharmaceuticals, Inc. (a) | 64,490 | 11,659 | |
Xencor, Inc. (a) | 91,000 | 3,823 | |
202,211 | |||
Health Care Equipment & Supplies - 2.4% | |||
Becton, Dickinson & Co. | 35,400 | 8,947 | |
Boston Scientific Corp. (a) | 1,129,500 | 42,548 | |
Insulet Corp. (a) | 108,600 | 9,115 | |
Intuitive Surgical, Inc. (a) | 4,200 | 2,230 | |
Novocure Ltd. (a) | 292,500 | 10,039 | |
Penumbra, Inc. (a) | 65,200 | 9,077 | |
Wright Medical Group NV (a) | 73,400 | 2,052 | |
84,008 | |||
Health Care Providers & Services - 2.8% | |||
Cigna Corp. | 47,000 | 10,499 | |
Elanco Animal Health, Inc. | 17,000 | 568 | |
G1 Therapeutics, Inc. (a) | 83,500 | 3,192 | |
Henry Schein, Inc. (a) | 31,200 | 2,783 | |
Humana, Inc. | 75,500 | 24,875 | |
OptiNose, Inc. (a) | 39,400 | 310 | |
UnitedHealth Group, Inc. | 198,200 | 55,766 | |
97,993 | |||
Pharmaceuticals - 0.9% | |||
Akcea Therapeutics, Inc. (a)(b) | 257,023 | 8,711 | |
AstraZeneca PLC sponsored ADR | 8,900 | 354 | |
Nabriva Therapeutics PLC (a) | 1,261,600 | 2,574 | |
Nektar Therapeutics (a) | 310,000 | 12,521 | |
Perrigo Co. PLC | 24,200 | 1,507 | |
TherapeuticsMD, Inc. (a)(b) | 323,000 | 1,625 | |
Theravance Biopharma, Inc. (a) | 152,125 | 4,200 | |
31,492 | |||
TOTAL HEALTH CARE | 415,704 | ||
INDUSTRIALS - 3.9% | |||
Aerospace & Defense - 0.0% | |||
The Boeing Co. | 1,800 | 624 | |
Air Freight & Logistics - 0.1% | |||
FedEx Corp. | 15,100 | 3,458 | |
Airlines - 1.2% | |||
JetBlue Airways Corp. (a) | 69,800 | 1,362 | |
Southwest Airlines Co. | 69,200 | 3,779 | |
Spirit Airlines, Inc. (a) | 562,500 | 36,068 | |
41,209 | |||
Commercial Services & Supplies - 0.2% | |||
HomeServe PLC | 194,900 | 2,361 | |
Tomra Systems ASA | 168,100 | 4,567 | |
6,928 | |||
Electrical Equipment - 0.5% | |||
Sunrun, Inc. (a)(b) | 1,162,200 | 17,026 | |
Machinery - 0.0% | |||
Deere & Co. | 4,500 | 697 | |
Professional Services - 0.8% | |||
CoStar Group, Inc. (a) | 45,000 | 16,623 | |
TransUnion Holding Co., Inc. | 188,300 | 12,159 | |
28,782 | |||
Trading Companies & Distributors - 1.1% | |||
Bunzl PLC | 1,187,200 | 36,549 | |
Watsco, Inc. | 9,000 | 1,383 | |
37,932 | |||
TOTAL INDUSTRIALS | 136,656 | ||
INFORMATION TECHNOLOGY - 36.3% | |||
Communications Equipment - 1.1% | |||
Carvana Co. Class A (a)(b) | 917,955 | 39,738 | |
Electronic Equipment & Components - 0.3% | |||
SYNNEX Corp. | 4,500 | 363 | |
TTM Technologies, Inc. (a) | 741,609 | 8,818 | |
9,181 | |||
Internet Software & Services - 0.7% | |||
ANGI Homeservices, Inc. Class A (a)(b) | 547,700 | 9,601 | |
CarGurus, Inc. Class A (a) | 438,000 | 17,043 | |
26,644 | |||
IT Services - 8.7% | |||
Accenture PLC Class A | 6,200 | 1,020 | |
Adyen BV | 7,517 | 3,889 | |
Alliance Data Systems Corp. | 173,900 | 34,843 | |
Elastic NV | 3,200 | 229 | |
EPAM Systems, Inc. (a) | 53,400 | 6,955 | |
First Data Corp. Class A (a) | 107,400 | 2,049 | |
Global Payments, Inc. | 236,900 | 26,488 | |
GoDaddy, Inc. (a) | 308,549 | 20,136 | |
Interxion Holding N.V. (a) | 26,600 | 1,656 | |
Luxoft Holding, Inc. (a) | 597,774 | 19,738 | |
MasterCard, Inc. Class A | 193,700 | 38,947 | |
MongoDB, Inc. Class A (a)(b) | 82,633 | 6,850 | |
Netcompany Group A/S | 33,500 | 1,105 | |
Okta, Inc. (a) | 51,300 | 3,265 | |
PayPal Holdings, Inc. (a) | 235,400 | 20,200 | |
Visa, Inc. Class A | 359,200 | 50,902 | |
Wix.com Ltd. (a) | 656,335 | 61,814 | |
Worldpay, Inc. (a) | 92,500 | 7,937 | |
308,023 | |||
Semiconductors & Semiconductor Equipment - 6.0% | |||
Analog Devices, Inc. | 164,700 | 15,139 | |
Applied Materials, Inc. | 514,900 | 19,195 | |
Broadcom, Inc. | 169,000 | 40,122 | |
Lam Research Corp. | 118,300 | 18,568 | |
Marvell Technology Group Ltd. | 886,100 | 14,275 | |
Micron Technology, Inc. (a) | 656,600 | 25,318 | |
NVIDIA Corp. | 326,230 | 53,316 | |
NXP Semiconductors NV | 177,500 | 14,798 | |
ON Semiconductor Corp. (a) | 518,700 | 9,949 | |
Semtech Corp. (a) | 7,100 | 379 | |
211,059 | |||
Software - 15.0% | |||
Adobe, Inc. (a) | 178,800 | 44,859 | |
Autodesk, Inc. (a) | 199,100 | 28,770 | |
Avalara, Inc. (b) | 21,080 | 674 | |
Citrix Systems, Inc. | 148,700 | 16,204 | |
Cloudera, Inc. (a) | 221,600 | 2,735 | |
DocuSign, Inc. | 8,500 | 355 | |
Dropbox, Inc. Class A (a) | 368,900 | 8,629 | |
Intuit, Inc. | 47,000 | 10,083 | |
Microsoft Corp. | 1,673,000 | 185,519 | |
Nutanix, Inc. Class A (a) | 120,200 | 5,374 | |
Parametric Technology Corp. (a) | 215,100 | 18,604 | |
Q2 Holdings, Inc. (a) | 20,400 | 1,108 | |
RingCentral, Inc. (a) | 46,200 | 3,830 | |
Salesforce.com, Inc. (a) | 527,900 | 75,363 | |
ServiceNow, Inc. (a) | 147,200 | 27,272 | |
Splunk, Inc. (a) | 3,800 | 425 | |
SurveyMonkey | 8,400 | 120 | |
The Trade Desk, Inc. (a) | 454,300 | 64,715 | |
Workday, Inc. Class A (a) | 163,200 | 26,765 | |
Zscaler, Inc. (a) | 6,300 | 247 | |
Zuora, Inc. | 307,200 | 5,846 | |
527,497 | |||
Technology Hardware, Storage & Peripherals - 4.5% | |||
Apple, Inc. | 882,806 | 157,651 | |
TOTAL INFORMATION TECHNOLOGY | 1,279,793 | ||
MATERIALS - 1.7% | |||
Chemicals - 1.6% | |||
LG Chemical Ltd. | 52,716 | 16,258 | |
LyondellBasell Industries NV Class A | 248,600 | 23,197 | |
The Chemours Co. LLC | 622,400 | 17,726 | |
57,181 | |||
Containers & Packaging - 0.1% | |||
Crown Holdings, Inc. (a) | 15,400 | 790 | |
TOTAL MATERIALS | 57,971 | ||
REAL ESTATE - 2.1% | |||
Equity Real Estate Investment Trusts (REITs) - 2.1% | |||
American Tower Corp. | 387,900 | 63,806 | |
Equinix, Inc. | 27,200 | 10,480 | |
74,286 | |||
TOTAL COMMON STOCKS | |||
(Cost $2,121,718) | 3,276,617 | ||
Preferred Stocks - 6.3% | |||
Convertible Preferred Stocks - 6.3% | |||
COMMUNICATION SERVICES - 0.3% | |||
Interactive Media & Services - 0.3% | |||
Uber Technologies, Inc. Series D, 8.00% (a)(c)(d) | 218,981 | 10,680 | |
CONSUMER DISCRETIONARY - 0.0% | |||
Hotels, Restaurants & Leisure - 0.0% | |||
Neutron Holdings, Inc. Series C (c)(d) | 6,477,300 | 1,184 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (c)(d) | 1,873 | 103 | |
Series B (c)(d) | 329 | 18 | |
Series C (c)(d) | 3,146 | 173 | |
294 | |||
TOTAL CONSUMER DISCRETIONARY | 1,478 | ||
CONSUMER STAPLES - 5.5% | |||
Tobacco - 5.5% | |||
JUUL Labs, Inc.: | |||
Series C (a)(c)(d)(e) | 898,438 | 193,155 | |
Series D (c)(d) | 3,671 | 789 | |
193,944 | |||
FINANCIALS - 0.1% | |||
Insurance - 0.1% | |||
Clover Health Series D (a)(c)(d) | 282,226 | 2,647 | |
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series I (c)(d) | 16,438 | 2,778 | |
INFORMATION TECHNOLOGY - 0.3% | |||
Internet Software & Services - 0.3% | |||
Lyft, Inc. Series I (c)(d) | 215,858 | 10,222 | |
Software - 0.0% | |||
Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 60,400 | 664 | |
TOTAL INFORMATION TECHNOLOGY | 10,886 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 222,413 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (c)(d) | 1,006 | 55 | |
TOTAL PREFERRED STOCKS | |||
(Cost $24,457) | 222,468 | ||
Money Market Funds - 4.6% | |||
Fidelity Cash Central Fund, 2.27% (f) | 3,437,788 | 3,438 | |
Fidelity Securities Lending Cash Central Fund 2.27% (f)(g) | 157,725,036 | 157,741 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $161,179) | 161,179 | ||
TOTAL INVESTMENT IN SECURITIES - 103.9% | |||
(Cost $2,307,354) | 3,660,264 | ||
NET OTHER ASSETS (LIABILITIES) - (3.9)% | (135,728) | ||
NET ASSETS - 100% | $3,524,536 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $223,333,000 or 6.3% of net assets.
(d) Level 3 security
(e) A portion of the security sold on a delayed delivery basis.
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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.
(g) 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) |
Allbirds, Inc. | 10/9/18 | $260 |
Allbirds, Inc. | 10/9/18 | $55 |
Allbirds, Inc. Series A | 10/9/18 | $103 |
Allbirds, Inc. Series B | 10/9/18 | $18 |
Allbirds, Inc. Series C | 10/9/18 | $173 |
Cloudflare, Inc. Series D, 8.00% | 9/10/18 | $664 |
Clover Health Series D | 6/7/17 | $2,647 |
JUUL Labs, Inc. | 11/21/17 | $9 |
JUUL Labs, Inc. Series C | 5/22/15 | $2,794 |
JUUL Labs, Inc. Series D | 6/25/18 | $422 |
Lyft, Inc. Series I | 6/27/18 | $10,222 |
Neutron Holdings, Inc. Series C | 7/3/18 | $1,184 |
Space Exploration Technologies Corp. Series I | 4/5/18 | $2,778 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $3,397 |
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 | $402 |
Fidelity Securities Lending Cash Central Fund | 2,438 |
Total | $2,840 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $574,893 | $564,213 | $-- | $10,680 |
Consumer Discretionary | 491,930 | 490,137 | -- | 1,793 |
Consumer Staples | 247,618 | 48,089 | 4,989 | 194,540 |
Energy | 39,455 | 39,455 | -- | -- |
Financials | 167,115 | 164,468 | -- | 2,647 |
Health Care | 415,704 | 415,704 | -- | -- |
Industrials | 139,434 | 136,656 | -- | 2,778 |
Information Technology | 1,290,679 | 1,279,793 | -- | 10,886 |
Materials | 57,971 | 57,971 | -- | -- |
Real Estate | 74,286 | 74,286 | -- | -- |
Money Market Funds | 161,179 | 161,179 | -- | -- |
Total Investments in Securities: | $3,660,264 | $3,431,951 | $4,989 | $223,324 |
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 - Consumer Staples | |
Beginning Balance | $22,993 |
Net Realized Gain (Loss) on Investment Securities | 36,667 |
Net Unrealized Gain (Loss) on Investment Securities | 172,447 |
Cost of Purchases | 422 |
Proceeds of Sales | (37,989) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $194,540 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $173,131 |
Other Investments in Securities | |
Beginning Balance | $10,289 |
Net Realized Gain (Loss) on Investment Securities | 52 |
Net Unrealized Gain (Loss) on Investment Securities | 3,071 |
Cost of Purchases | 15,457 |
Proceeds of Sales | (85) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $28,784 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $3,071 |
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 reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.1% |
Cayman Islands | 3.1% |
Israel | 1.8% |
United Kingdom | 1.5% |
Netherlands | 1.4% |
India | 1.3% |
Others (Individually Less Than 1%) | 2.8% |
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, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $152,541) — See accompanying schedule: Unaffiliated issuers (cost $2,146,175) | $3,499,085 | |
Fidelity Central Funds (cost $161,179) | 161,179 | |
Total Investment in Securities (cost $2,307,354) | $3,660,264 | |
Receivable for investments sold | ||
Regular delivery | 387 | |
Delayed delivery | 36,738 | |
Receivable for fund shares sold | 3,630 | |
Dividends receivable | 2,040 | |
Distributions receivable from Fidelity Central Funds | 226 | |
Prepaid expenses | 5 | |
Other receivables | 133 | |
Total assets | 3,703,423 | |
Liabilities | ||
Payable for investments purchased | $12,181 | |
Payable for fund shares redeemed | 4,774 | |
Accrued management fee | 2,021 | |
Distribution and service plan fees payable | 1,007 | |
Other affiliated payables | 580 | |
Other payables and accrued expenses | 594 | |
Collateral on securities loaned | 157,730 | |
Total liabilities | 178,887 | |
Net Assets | $3,524,536 | |
Net Assets consist of: | ||
Paid in capital | $1,800,030 | |
Total distributable earnings (loss) | 1,724,506 | |
Net Assets | $3,524,536 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($672,506 ÷ 8,749 shares) | $76.87 | |
Maximum offering price per share (100/94.25 of $76.87) | $81.56 | |
Class M: | ||
Net Asset Value and redemption price per share ($1,670,675 ÷ 21,902 shares) | $76.28 | |
Maximum offering price per share (100/96.50 of $76.28) | $79.05 | |
Class C: | ||
Net Asset Value and offering price per share ($243,723 ÷ 3,636 shares)(a) | $67.03 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($849,768 ÷ 10,310 shares) | $82.42 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($87,864 ÷ 1,059 shares) | $83.00 |
(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, 2018 | |
Investment Income | ||
Dividends | $20,472 | |
Income from Fidelity Central Funds (including $2,438 from security lending) | 2,840 | |
Total income | 23,312 | |
Expenses | ||
Management fee | ||
Basic fee | $17,660 | |
Performance adjustment | 1,112 | |
Transfer agent fees | 5,633 | |
Distribution and service plan fees | 11,883 | |
Accounting and security lending fees | 979 | |
Custodian fees and expenses | 105 | |
Independent trustees' fees and expenses | 17 | |
Registration fees | 113 | |
Audit | 71 | |
Legal | 9 | |
Interest | 4 | |
Miscellaneous | 19 | |
Total expenses before reductions | 37,605 | |
Expense reductions | (184) | |
Total expenses after reductions | 37,421 | |
Net investment income (loss) | (14,109) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $42) | 421,241 | |
Fidelity Central Funds | 1 | |
Foreign currency transactions | (10) | |
Total net realized gain (loss) | 421,232 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $409) | 166,661 | |
Assets and liabilities in foreign currencies | (5) | |
Total change in net unrealized appreciation (depreciation) | 166,656 | |
Net gain (loss) | 587,888 | |
Net increase (decrease) in net assets resulting from operations | $573,779 |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(14,109) | $(1,058) |
Net realized gain (loss) | 421,232 | 247,904 |
Change in net unrealized appreciation (depreciation) | 166,656 | 540,784 |
Net increase (decrease) in net assets resulting from operations | 573,779 | 787,630 |
Distributions to shareholders | (214,543) | – |
Distributions to shareholders from net realized gain | – | (308,776) |
Total distributions | (214,543) | (308,776) |
Share transactions - net increase (decrease) | 138,173 | 49,313 |
Total increase (decrease) in net assets | 497,409 | 528,167 |
Net Assets | ||
Beginning of period | 3,027,127 | 2,498,960 |
End of period | $3,524,536 | $3,027,127 |
Other Information | ||
Accumulated net investment loss end of period | $(1,119) |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $68.76 | $58.24 | $66.87 | $63.52 | $54.89 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.25) | .04 | .07 | (.08) | (.11) |
Net realized and unrealized gain (loss) | 13.33 | 17.86 | (1.46) | 3.43 | 8.74 |
Total from investment operations | 13.08 | 17.90 | (1.39) | 3.35 | 8.63 |
Distributions from net realized gain | (4.97) | (7.38) | (7.24) | – | – |
Total distributions | (4.97) | (7.38) | (7.24) | – | – |
Net asset value, end of period | $76.87 | $68.76 | $58.24 | $66.87 | $63.52 |
Total ReturnB,C | 20.35% | 34.64% | (2.37)% | 5.27% | 15.72% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.05% | .91% | .86% | 1.05% | 1.08% |
Expenses net of fee waivers, if any | 1.05% | .91% | .86% | 1.05% | 1.08% |
Expenses net of all reductions | 1.05% | .91% | .86% | 1.05% | 1.08% |
Net investment income (loss) | (.33)% | .06% | .13% | (.12)% | (.18)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $673 | $540 | $502 | $664 | $648 |
Portfolio turnover rateF | 46% | 52% | 66% | 51% | 13% |
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.
Fidelity Advisor Growth Opportunities Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $68.27 | $57.99 | $66.75 | $63.55 | $55.04 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.41) | (.10) | (.06) | (.23) | (.24) |
Net realized and unrealized gain (loss) | 13.24 | 17.76 | (1.46) | 3.43 | 8.75 |
Total from investment operations | 12.83 | 17.66 | (1.52) | 3.20 | 8.51 |
Distributions from net realized gain | (4.82) | (7.38) | (7.24) | – | – |
Total distributions | (4.82) | (7.38) | (7.24) | – | – |
Net asset value, end of period | $76.28 | $68.27 | $57.99 | $66.75 | $63.55 |
Total ReturnB,C | 20.07% | 34.34% | (2.59)% | 5.04% | 15.46% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.28% | 1.14% | 1.09% | 1.28% | 1.31% |
Expenses net of fee waivers, if any | 1.28% | 1.14% | 1.09% | 1.28% | 1.31% |
Expenses net of all reductions | 1.28% | 1.13% | 1.09% | 1.28% | 1.31% |
Net investment income (loss) | (.57)% | (.17)% | (.10)% | (.35)% | (.40)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $1,671 | $1,492 | $1,250 | $1,461 | $1,504 |
Portfolio turnover rateF | 46% | 52% | 66% | 51% | 13% |
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.
Fidelity Advisor Growth Opportunities Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $60.60 | $52.52 | $61.42 | $58.78 | $51.17 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.70) | (.37) | (.32) | (.52) | (.50) |
Net realized and unrealized gain (loss) | 11.68 | 15.83 | (1.34) | 3.16 | 8.11 |
Total from investment operations | 10.98 | 15.46 | (1.66) | 2.64 | 7.61 |
Distributions from net realized gain | (4.55) | (7.38) | (7.24) | – | – |
Total distributions | (4.55) | (7.38) | (7.24) | – | – |
Net asset value, end of period | $67.03 | $60.60 | $52.52 | $61.42 | $58.78 |
Total ReturnB,C | 19.44% | 33.64% | (3.10)% | 4.49% | 14.87% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.81% | 1.66% | 1.61% | 1.80% | 1.83% |
Expenses net of fee waivers, if any | 1.81% | 1.66% | 1.61% | 1.80% | 1.83% |
Expenses net of all reductions | 1.80% | 1.66% | 1.61% | 1.80% | 1.83% |
Net investment income (loss) | (1.09)% | (.69)% | (.62)% | (.87)% | (.93)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $244 | $201 | $178 | $238 | $212 |
Portfolio turnover rateF | 46% | 52% | 66% | 51% | 13% |
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.
Fidelity Advisor Growth Opportunities Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $73.38 | $61.52 | $70.05 | $66.35 | $57.18 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.05) | .22 | .25 | .11 | .05 |
Net realized and unrealized gain (loss) | 14.25 | 19.02 | (1.54) | 3.59 | 9.12 |
Total from investment operations | 14.20 | 19.24 | (1.29) | 3.70 | 9.17 |
Distributions from net realized gain | (5.16) | (7.38) | (7.24) | – | – |
Total distributions | (5.16) | (7.38) | (7.24) | – | – |
Net asset value, end of period | $82.42 | $73.38 | $61.52 | $70.05 | $66.35 |
Total ReturnB | 20.67% | 35.01% | (2.09)% | 5.58% | 16.04% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | .78% | .63% | .58% | .77% | .81% |
Expenses net of fee waivers, if any | .78% | .63% | .58% | .77% | .81% |
Expenses net of all reductions | .78% | .63% | .58% | .77% | .81% |
Net investment income (loss) | (.06)% | .34% | .41% | .16% | .09% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $850 | $642 | $562 | $1,061 | $1,357 |
Portfolio turnover rateE | 46% | 52% | 66% | 51% | 13% |
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.
Fidelity Advisor Growth Opportunities Fund Class Z
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $73.88 | $61.82 | $70.27 | $66.48 | $57.20 |
Income from Investment Operations | |||||
Net investment income (loss)A | .04 | .32 | .33 | .20 | .14 |
Net realized and unrealized gain (loss) | 14.35 | 19.12 | (1.54) | 3.59 | 9.14 |
Total from investment operations | 14.39 | 19.44 | (1.21) | 3.79 | 9.28 |
Distributions from net investment income | (.05) | – | – | – | – |
Distributions from net realized gain | (5.22) | (7.38) | (7.24) | – | – |
Total distributions | (5.27) | (7.38) | (7.24) | – | – |
Net asset value, end of period | $83.00 | $73.88 | $61.82 | $70.27 | $66.48 |
Total ReturnB | 20.82% | 35.18% | (1.96)% | 5.70% | 16.22% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | .66% | .51% | .45% | .64% | .67% |
Expenses net of fee waivers, if any | .66% | .50% | .45% | .64% | .67% |
Expenses net of all reductions | .65% | .50% | .45% | .64% | .67% |
Net investment income (loss) | .06% | .47% | .54% | .29% | .24% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $88 | $152 | $7 | $5 | $3 |
Portfolio turnover rateE | 46% | 52% | 66% | 51% | 13% |
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.
Notes to Financial Statements
For the period ended November 30, 2018
(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 M, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3– unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equity | $ 223,324 | Market approach | Transaction price | $0.18-$215.00/$194.19 | 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, 2018, 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 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) for the Fund, certain independent Trustees have elected 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 of $94 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
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, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income 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, certain foreign taxes, passive foreign investment companies (PFIC), deferred trustees compensation, net operating losses and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $1,473,788 |
Gross unrealized depreciation | (124,448) |
Net unrealized appreciation (depreciation) | $1,349,340 |
Tax Cost | $2,310,924 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $375,670 |
Net unrealized appreciation (depreciation) on securities and other investments | $1,349,339 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $32,569 | $ - |
Long-term Capital Gains | 181,974 | 308,776 |
Total | $214,543 | $ 308,776 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,492,556 and $1,606,181, 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 .24% 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 .57% 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% | $1,531 | $50 |
Class M | .25% | .25% | 8,151 | 193 |
Class C | .75% | .25% | 2,201 | 166 |
$11,883 | $409 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $226 |
Class C(a) | 20 |
$246 |
(a) When 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 | $1,158 | .19 |
Class M | 2,796 | .17 |
Class C | 431 | .20 |
Class I | 1,208 | .17 |
Class Z | 40 | .05 |
$5,633 |
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. For the period, the fees were equivalent to an annual rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $36 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $8,929 | 1.64% | $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.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $2.
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 $9 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 $2,604. 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 $268 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $153 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $30.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $38,843 | $– |
Class M | 104,766 | – |
Class C | 14,984 | – |
Class I | 45,003 | – |
Class Z | 10,947 | – |
Total | $214,543 | $– |
From net realized gain | ||
Class A | $– | $61,177 |
Class M | – | 157,755 |
Class C | – | 23,721 |
Class I | – | 65,238 |
Class Z | – | 885 |
Total | $– | $308,776 |
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, 2018 | Year ended November 30, 2017 | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Class A | ||||
Shares sold | 1,765 | 965 | $132,452 | $59,048 |
Reinvestment of distributions | 567 | 1,085 | 36,792 | 57,029 |
Shares redeemed | (1,443) | (2,807) | (104,059) | (166,066) |
Net increase (decrease) | 889 | (757) | $65,185 | $(49,989) |
Class M | ||||
Shares sold | 2,091 | 1,699 | $152,273 | $101,570 |
Reinvestment of distributions | 1,564 | 2,861 | 100,981 | 149,667 |
Shares redeemed | (3,604) | (4,259) | (258,947) | (254,711) |
Net increase (decrease) | 51 | 301 | $(5,693) | $(3,474) |
Class C | ||||
Shares sold | 889 | 530 | $58,616 | $28,137 |
Reinvestment of distributions | 240 | 437 | 13,699 | 20,384 |
Shares redeemed | (811) | (1,042) | (51,367) | (54,837) |
Net increase (decrease) | 318 | (75) | $20,948 | $(6,316) |
Class I | ||||
Shares sold | 3,407 | 2,197 | $274,660 | $141,765 |
Reinvestment of distributions | 448 | 782 | 31,123 | 43,776 |
Shares redeemed | (2,298) | (3,359) | (178,161) | (209,655) |
Net increase (decrease) | 1,557 | (380) | $127,622 | $(24,114) |
Class Z | ||||
Shares sold | 1,090 | 2,133 | $88,159 | $146,967 |
Reinvestment of distributions | 150 | 16 | 10,497 | 885 |
Shares redeemed | (2,233) | (217) | (168,545) | (14,646) |
Net increase (decrease) | (993) | 1,932 | $(69,889) | $133,206 |
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 Growth Opportunities Fund:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 15, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | 1.15% | |||
Actual | $1,000.00 | $1,076.00 | $5.98 | |
Hypothetical-C | $1,000.00 | $1,019.30 | $5.82 | |
Class M | 1.39% | |||
Actual | $1,000.00 | $1,074.70 | $7.23 | |
Hypothetical-C | $1,000.00 | $1,018.10 | $7.03 | |
Class C | 1.91% | |||
Actual | $1,000.00 | $1,071.80 | $9.92 | |
Hypothetical-C | $1,000.00 | $1,015.49 | $9.65 | |
Class I | .87% | |||
Actual | $1,000.00 | $1,077.40 | $4.53 | |
Hypothetical-C | $1,000.00 | $1,020.71 | $4.41 | |
Class Z | .87% | |||
Actual | $1,000.00 | $1,078.10 | $4.53 | |
Hypothetical-C | $1,000.00 | $1,020.71 | $4.41 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity 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 | 12/27/18 | 12/26/18 | $0.000 | $7.896 |
Class M | 12/27/18 | 12/26/18 | $0.000 | $7.896 |
Class C | 12/27/18 | 12/26/18 | $0.000 | $7.896 |
Class I | 12/27/18 | 12/26/18 | $0.000 | $7.896 |
Class Z | 12/27/18 | 12/26/18 | $0.000 | $7.896 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $387,811,847, or, if subsequently determined to be different, the net capital gain of such year.
Class A designates 45%; Class M designates 56%; Class C designates 95%; Class I designates 37%; and Class Z designates 33%; of the dividend distributed in December, as qualifying for the dividends–received deduction for corporate shareholders.
Class A designates 61%; Class M designates 75%; Class C designates 100%; Class I designates 49%; and Class Z designates 44%; of the dividend distributed in December, 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Growth Opportunities Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
GO-ANN-0119
1.704314.121
Fidelity Advisor® Large Cap Fund Class A, Class M, Class C, Class I and Class Z Annual Report November 30, 2018 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (2.20)% | 7.54% | 15.41% |
Class M (incl. 3.50% sales charge) | (0.12)% | 7.77% | 15.39% |
Class C (incl. contingent deferred sales charge) | 2.05% | 8.00% | 15.22% |
Class I | 4.05% | 9.10% | 16.43% |
Class Z | 4.19% | 9.15% | 16.46% |
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 February 1, 2017. Returns prior to February 1, 2017, are those of Class I.
$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, 2008, 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/0001379491-19-000231/img446433628_740.jpg)
Period Ending Values | ||
$41,935 | Fidelity Advisor® Large Cap Fund - Class A | |
$38,109 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Matthew Fruhan: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) gained roughly 3% to 4%, trailing the benchmark S&P 500® index. Versus the benchmark, unfavorable sector allocation and security selection weighed on our result. Stock picking in the industrials and consumer staples sectors, and to a lesser extent in health care, hurt relative performance, whereas picks in information technology and communication services were helpful. By sector, significant overweights in two lagging categories, energy and financials, detracted, as did our large underweight in consumer discretionary, one of the strongest-performing sectors this period. Our biggest individual detractors were an overweight in industrial conglomerate General Electric – which faced multiple business challenges this period – and not owning e-commerce firm and benchmark component Amazon.com, whose lofty valuation made it an increasingly risky investment. Also detracting were financial services company State Street and diversified health care and agricultural firm Bayer. On the positive side, relative performance benefited from largely avoiding social-media giant and benchmark component Facebook, which faced concerns about the sustainability of revenue growth and costs related to privacy threats. In health care, it helped to hold medical technology company Boston Scientific and an out-of-benchmark stake in U.K.-based GlaxoSmithKline, a diversified health care company. Lastly, we benefited from energy exploration and production company ConocoPhillips, which I sold from the portfolio in August.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, 2018
% of fund's net assets | |
Microsoft Corp. | 4.9 |
Exxon Mobil Corp. | 3.7 |
Comcast Corp. Class A | 3.6 |
Bank of America Corp. | 3.5 |
JPMorgan Chase & Co. | 2.9 |
Altria Group, Inc. | 2.7 |
Wells Fargo & Co. | 2.2 |
Apple, Inc. | 2.2 |
Chevron Corp. | 2.1 |
CVS Health Corp. | 2.0 |
29.8 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 20.5 |
Health Care | 17.0 |
Information Technology | 15.7 |
Energy | 12.4 |
Industrials | 10.5 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 98.9% | |
Convertible Securities | 0.2% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
* Foreign investments – 13.0%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 98.9% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 8.1% | |||
Diversified Telecommunication Services - 1.4% | |||
AT&T, Inc. | 42,772 | $1,336,197 | |
Verizon Communications, Inc. | 259,794 | 15,665,578 | |
17,001,775 | |||
Entertainment - 1.0% | |||
Electronic Arts, Inc. (a) | 31,600 | 2,656,612 | |
The Walt Disney Co. | 39,600 | 4,573,404 | |
Vivendi SA | 199,800 | 4,983,459 | |
12,213,475 | |||
Interactive Media & Services - 1.0% | |||
Alphabet, Inc.: | |||
Class A (a) | 5,036 | 5,588,197 | |
Class C (a) | 4,717 | 5,162,426 | |
Snap, Inc. Class A (a)(b) | 87,300 | 568,323 | |
11,318,946 | |||
Media - 4.7% | |||
Charter Communications, Inc. Class A (a) | 10,800 | 3,555,360 | |
Comcast Corp. Class A | 1,123,774 | 43,838,424 | |
Discovery Communications, Inc. Class A (a)(b) | 91,200 | 2,801,664 | |
Interpublic Group of Companies, Inc. | 239,900 | 5,637,650 | |
Omnicom Group, Inc. | 19,400 | 1,493,218 | |
57,326,316 | |||
TOTAL COMMUNICATION SERVICES | 97,860,512 | ||
CONSUMER DISCRETIONARY - 2.6% | |||
Auto Components - 0.0% | |||
Gentex Corp. | 16,100 | 362,572 | |
Distributors - 0.1% | |||
LKQ Corp. (a) | 46,200 | 1,286,208 | |
Hotels, Restaurants & Leisure - 0.0% | |||
Drive Shack, Inc. (a) | 78,700 | 367,529 | |
Household Durables - 0.4% | |||
Mohawk Industries, Inc. (a) | 30,800 | 3,944,248 | |
NVR, Inc. (a) | 270 | 661,500 | |
4,605,748 | |||
Multiline Retail - 0.4% | |||
Dollar Tree, Inc. (a) | 28,200 | 2,446,914 | |
Target Corp. | 35,540 | 2,521,918 | |
4,968,832 | |||
Specialty Retail - 1.7% | |||
L Brands, Inc. | 106,800 | 3,536,148 | |
Lowe's Companies, Inc. | 117,479 | 11,086,493 | |
Ross Stores, Inc. | 4,600 | 402,960 | |
Sally Beauty Holdings, Inc. (a) | 49,600 | 1,047,056 | |
TJX Companies, Inc. | 86,700 | 4,235,295 | |
20,307,952 | |||
TOTAL CONSUMER DISCRETIONARY | 31,898,841 | ||
CONSUMER STAPLES - 9.0% | |||
Beverages - 1.4% | |||
The Coca-Cola Co. | 336,575 | 16,963,380 | |
Food & Staples Retailing - 1.8% | |||
Walgreens Boots Alliance, Inc. | 47,000 | 3,979,490 | |
Walmart, Inc. | 183,600 | 17,928,540 | |
21,908,030 | |||
Food Products - 0.3% | |||
The Hershey Co. | 35,100 | 3,801,330 | |
Household Products - 1.5% | |||
Procter & Gamble Co. | 184,752 | 17,460,912 | |
Spectrum Brands Holdings, Inc. | 3,700 | 182,706 | |
17,643,618 | |||
Tobacco - 4.0% | |||
Altria Group, Inc. | 596,400 | 32,700,612 | |
British American Tobacco PLC sponsored ADR | 362,400 | 12,636,888 | |
Philip Morris International, Inc. | 30,900 | 2,673,777 | |
48,011,277 | |||
TOTAL CONSUMER STAPLES | 108,327,635 | ||
ENERGY - 12.2% | |||
Energy Equipment & Services - 1.6% | |||
Baker Hughes, a GE Co. Class A | 233,000 | 5,317,060 | |
Ensco PLC Class A | 102,850 | 583,160 | |
National Oilwell Varco, Inc. | 131,132 | 4,210,649 | |
Oceaneering International, Inc. (a) | 133,100 | 2,234,749 | |
Schlumberger Ltd. | 101,100 | 4,559,610 | |
TechnipFMC PLC | 114,400 | 2,641,496 | |
Transocean Ltd. (United States) (a) | 23,700 | 219,936 | |
19,766,660 | |||
Oil, Gas & Consumable Fuels - 10.6% | |||
BP PLC sponsored ADR | 400,969 | 16,179,099 | |
Cabot Oil & Gas Corp. | 50,800 | 1,278,128 | |
Cenovus Energy, Inc. (Canada) | 1,825,450 | 13,491,829 | |
Chevron Corp. | 214,407 | 25,501,569 | |
EQT Corp. | 58,100 | 1,087,051 | |
Equinor ASA sponsored ADR (b) | 425,300 | 9,943,514 | |
Exxon Mobil Corp. | 559,100 | 44,448,450 | |
Hess Corp. | 4,900 | 264,061 | |
Imperial Oil Ltd. (b) | 223,000 | 6,641,410 | |
Kosmos Energy Ltd. (a) | 589,600 | 3,172,048 | |
Legacy Reserves, Inc. (a) | 147,100 | 316,265 | |
Teekay Offshore Partners LP | 157,500 | 261,450 | |
The Williams Companies, Inc. | 203,197 | 5,144,948 | |
Valero Energy Corp. | 4,600 | 367,540 | |
128,097,362 | |||
TOTAL ENERGY | 147,864,022 | ||
FINANCIALS - 20.5% | |||
Banks - 13.5% | |||
Bank of America Corp. | 1,483,389 | 42,128,248 | |
BNP Paribas SA | 6,500 | 326,540 | |
Citigroup, Inc. | 346,597 | 22,456,020 | |
First Hawaiian, Inc. | 21,300 | 554,226 | |
JPMorgan Chase & Co. | 310,768 | 34,554,294 | |
M&T Bank Corp. | 10,200 | 1,723,902 | |
PNC Financial Services Group, Inc. | 94,485 | 12,829,173 | |
Standard Chartered PLC (United Kingdom) | 481 | 3,735 | |
SunTrust Banks, Inc. | 180,303 | 11,303,195 | |
U.S. Bancorp | 205,665 | 11,200,516 | |
Wells Fargo & Co. | 493,994 | 26,813,994 | |
163,893,843 | |||
Capital Markets - 4.8% | |||
Cboe Global Markets, Inc. | 16,000 | 1,721,920 | |
Charles Schwab Corp. | 159,153 | 7,130,054 | |
KKR & Co. LP | 213,036 | 4,882,785 | |
Morgan Stanley | 218,033 | 9,678,485 | |
Northern Trust Corp. | 156,486 | 15,528,106 | |
State Street Corp. | 258,658 | 18,887,207 | |
Virtu Financial, Inc. Class A | 19,300 | 485,781 | |
58,314,338 | |||
Diversified Financial Services - 0.4% | |||
KKR Renaissance Co-Invest LP unit (a)(c) | 14,257 | 4,274,391 | |
Insurance - 0.6% | |||
Chubb Ltd. | 26,900 | 3,597,606 | |
MetLife, Inc. | 26,100 | 1,164,843 | |
The Travelers Companies, Inc. | 23,300 | 3,037,621 | |
7,800,070 | |||
Thrifts & Mortgage Finance - 1.2% | |||
MGIC Investment Corp. (a) | 249,592 | 2,922,722 | |
Radian Group, Inc. | 599,668 | 11,033,891 | |
13,956,613 | |||
TOTAL FINANCIALS | 248,239,255 | ||
HEALTH CARE - 17.0% | |||
Biotechnology - 2.1% | |||
Alexion Pharmaceuticals, Inc. (a) | 85,005 | 10,468,366 | |
Alnylam Pharmaceuticals, Inc. (a) | 16,000 | 1,298,560 | |
AnaptysBio, Inc. (a) | 7,100 | 529,518 | |
Atara Biotherapeutics, Inc. (a) | 39,000 | 1,558,050 | |
Insmed, Inc. (a) | 81,464 | 1,459,020 | |
Intercept Pharmaceuticals, Inc. (a) | 69,231 | 7,678,410 | |
Mirati Therapeutics, Inc. (a) | 25,100 | 968,609 | |
Spark Therapeutics, Inc. (a) | 20,500 | 863,665 | |
TESARO, Inc. (a) | 6,700 | 310,746 | |
25,134,944 | |||
Health Care Equipment & Supplies - 1.9% | |||
Boston Scientific Corp. (a) | 449,486 | 16,932,138 | |
Danaher Corp. | 44,000 | 4,819,760 | |
Zimmer Biomet Holdings, Inc. | 15,600 | 1,825,512 | |
23,577,410 | |||
Health Care Providers & Services - 6.8% | |||
AmerisourceBergen Corp. | 90,300 | 8,027,670 | |
Anthem, Inc. | 23,495 | 6,815,195 | |
Cardinal Health, Inc. | 169,500 | 9,293,685 | |
Cigna Corp. | 52,800 | 11,794,464 | |
CVS Health Corp. | 296,711 | 23,796,222 | |
Henry Schein, Inc. (a) | 3,400 | 303,280 | |
Humana, Inc. | 9,400 | 3,097,018 | |
McKesson Corp. | 98,896 | 12,312,552 | |
MEDNAX, Inc. (a) | 11,500 | 462,300 | |
UnitedHealth Group, Inc. | 21,000 | 5,908,560 | |
81,810,946 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B (a) | 126,880 | 331,157 | |
Pharmaceuticals - 6.2% | |||
Allergan PLC | 10,229 | 1,601,861 | |
AstraZeneca PLC sponsored ADR | 74,100 | 2,950,662 | |
Bayer AG | 132,726 | 9,739,528 | |
Eli Lilly & Co. | 17,500 | 2,076,200 | |
GlaxoSmithKline PLC sponsored ADR | 468,629 | 19,621,496 | |
Jazz Pharmaceuticals PLC (a) | 45,907 | 6,941,138 | |
Johnson & Johnson | 119,463 | 17,549,115 | |
Perrigo Co. PLC | 17,300 | 1,077,444 | |
Sanofi SA | 34,791 | 3,154,163 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR (b) | 267,691 | 5,766,064 | |
The Medicines Company (a) | 11,748 | 259,983 | |
TherapeuticsMD, Inc. (a)(b) | 748,200 | 3,763,446 | |
74,501,100 | |||
TOTAL HEALTH CARE | 205,355,557 | ||
INDUSTRIALS - 10.5% | |||
Aerospace & Defense - 1.8% | |||
General Dynamics Corp. | 21,100 | 3,901,179 | |
Huntington Ingalls Industries, Inc. | 5,600 | 1,206,800 | |
United Technologies Corp. | 139,882 | 17,043,223 | |
22,151,202 | |||
Air Freight & Logistics - 2.0% | |||
C.H. Robinson Worldwide, Inc. | 34,559 | 3,190,832 | |
FedEx Corp. | 9,100 | 2,083,900 | |
United Parcel Service, Inc. Class B | 162,775 | 18,766,330 | |
24,041,062 | |||
Building Products - 0.0% | |||
A.O. Smith Corp. | 5,500 | 260,590 | |
Commercial Services & Supplies - 0.1% | |||
Stericycle, Inc. (a) | 23,800 | 1,144,066 | |
Electrical Equipment - 0.6% | |||
Acuity Brands, Inc. | 42,000 | 5,460,840 | |
Hubbell, Inc. Class B | 21,382 | 2,355,441 | |
Melrose Industries PLC | 1 | 2 | |
7,816,283 | |||
Industrial Conglomerates - 2.0% | |||
3M Co. | 1,900 | 395,048 | |
General Electric Co. | 3,163,044 | 23,722,830 | |
24,117,878 | |||
Machinery - 0.9% | |||
Flowserve Corp. | 154,400 | 7,489,944 | |
Wabtec Corp. (b) | 31,300 | 2,960,980 | |
10,450,924 | |||
Professional Services - 0.3% | |||
Acacia Research Corp. (a) | 36,900 | 117,342 | |
IHS Markit Ltd. (a) | 61,736 | 3,294,850 | |
3,412,192 | |||
Road & Rail - 2.7% | |||
CSX Corp. | 27,201 | 1,975,609 | |
J.B. Hunt Transport Services, Inc. | 66,600 | 7,083,576 | |
Knight-Swift Transportation Holdings, Inc. Class A | 145,900 | 5,056,894 | |
Norfolk Southern Corp. | 39,858 | 6,805,355 | |
Union Pacific Corp. | 76,800 | 11,810,304 | |
32,731,738 | |||
Trading Companies & Distributors - 0.1% | |||
Fastenal Co. | 15,600 | 924,456 | |
TOTAL INDUSTRIALS | 127,050,391 | ||
INFORMATION TECHNOLOGY - 15.5% | |||
Communications Equipment - 0.7% | |||
Cisco Systems, Inc. | 188,654 | 9,030,867 | |
Electronic Equipment & Components - 0.1% | |||
Itron, Inc. (a) | 33,600 | 1,819,776 | |
IT Services - 3.4% | |||
IBM Corp. | 11,400 | 1,416,678 | |
Interxion Holding N.V. (a) | 33,000 | 2,054,910 | |
MasterCard, Inc. Class A | 36,500 | 7,339,055 | |
Paychex, Inc. | 127,122 | 8,995,153 | |
Unisys Corp. (a) | 182,387 | 2,465,872 | |
Visa, Inc. Class A | 135,910 | 19,259,806 | |
41,531,474 | |||
Semiconductors & Semiconductor Equipment - 2.2% | |||
Analog Devices, Inc. | 12,100 | 1,112,232 | |
Applied Materials, Inc. | 116,200 | 4,331,936 | |
Lam Research Corp. | 13,400 | 2,103,264 | |
Micron Technology, Inc. (a) | 19,300 | 744,208 | |
Qualcomm, Inc. | 312,050 | 18,180,033 | |
26,471,673 | |||
Software - 6.7% | |||
Micro Focus International PLC | 29,000 | 569,518 | |
Microsoft Corp. | 529,854 | 58,755,511 | |
Oracle Corp. | 277,800 | 13,545,528 | |
SAP SE sponsored ADR (b) | 75,600 | 7,838,208 | |
80,708,765 | |||
Technology Hardware, Storage & Peripherals - 2.4% | |||
Apple, Inc. | 149,221 | 26,647,886 | |
Western Digital Corp. | 42,000 | 1,906,380 | |
28,554,266 | |||
TOTAL INFORMATION TECHNOLOGY | 188,116,821 | ||
MATERIALS - 1.8% | |||
Chemicals - 1.7% | |||
CF Industries Holdings, Inc. | 42,100 | 1,776,199 | |
DowDuPont, Inc. | 26,000 | 1,504,100 | |
International Flavors & Fragrances, Inc. | 13,100 | 1,855,353 | |
Intrepid Potash, Inc. (a) | 576,560 | 1,914,179 | |
Johnson Matthey PLC | 3,200 | 119,229 | |
LyondellBasell Industries NV Class A | 43,500 | 4,058,985 | |
Nutrien Ltd. | 119,360 | 6,148,345 | |
The Scotts Miracle-Gro Co. Class A | 14,800 | 1,124,504 | |
W.R. Grace & Co. | 26,300 | 1,678,992 | |
20,179,886 | |||
Construction Materials - 0.0% | |||
Summit Materials, Inc. | 42,700 | 619,150 | |
Metals & Mining - 0.1% | |||
Lundin Mining Corp. | 293,300 | 1,278,145 | |
TOTAL MATERIALS | 22,077,181 | ||
REAL ESTATE - 0.7% | |||
Equity Real Estate Investment Trusts (REITs) - 0.7% | |||
American Tower Corp. | 15,200 | 2,500,248 | |
Equinix, Inc. | 11,000 | 4,238,080 | |
Public Storage | 8,500 | 1,812,710 | |
Simon Property Group, Inc. | 2,300 | 427,087 | |
8,978,125 | |||
UTILITIES - 1.0% | |||
Electric Utilities - 1.0% | |||
Duke Energy Corp. | 11,900 | 1,053,983 | |
Exelon Corp. | 135,500 | 6,285,845 | |
PPL Corp. | 69,300 | 2,119,887 | |
Southern Co. | 32,000 | 1,514,560 | |
Vistra Energy Corp. (a) | 31,216 | 732,952 | |
11,707,227 | |||
Multi-Utilities - 0.0% | |||
Sempra Energy | 5,600 | 645,232 | |
TOTAL UTILITIES | 12,352,459 | ||
TOTAL COMMON STOCKS | |||
(Cost $954,685,165) | 1,198,120,799 | ||
Convertible Preferred Stocks - 0.2% | |||
INFORMATION TECHNOLOGY - 0.2% | |||
Internet Software & Services - 0.2% | |||
Lyft, Inc. Series I (c)(d) | |||
(Cost $2,602,997) | 54,969 | 2,602,997 | |
Other - 0.2% | |||
Energy - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) (c)(d)(e) | |||
(Cost $3,301,608) | 3,301,608 | 1,612,505 | |
Money Market Funds - 2.8% | |||
Fidelity Cash Central Fund, 2.27% (f) | 8,783,281 | 8,785,038 | |
Fidelity Securities Lending Cash Central Fund 2.27% (f)(g) | 25,172,503 | 25,175,021 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $33,960,059) | 33,960,059 | ||
TOTAL INVESTMENT IN SECURITIES - 102.1% | |||
(Cost $994,549,829) | 1,236,296,360 | ||
NET OTHER ASSETS (LIABILITIES) - (2.1)% | (25,158,836) | ||
NET ASSETS - 100% | $1,211,137,524 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,489,893 or 0.7% of net assets.
(d) Level 3 security
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) 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.
(g) 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 | $1,504,114 |
Lyft, Inc. Series I | 6/27/18 | $2,602,997 |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $3,301,608 |
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 | $142,274 |
Fidelity Securities Lending Cash Central Fund | 189,194 |
Total | $331,468 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $97,860,512 | $92,877,053 | $4,983,459 | $-- |
Consumer Discretionary | 31,898,841 | 31,898,841 | -- | -- |
Consumer Staples | 108,327,635 | 108,327,635 | -- | -- |
Energy | 147,864,022 | 147,864,022 | -- | -- |
Financials | 248,239,255 | 243,964,864 | 4,274,391 | -- |
Health Care | 205,355,557 | 192,461,866 | 12,893,691 | -- |
Industrials | 127,050,391 | 127,050,391 | -- | -- |
Information Technology | 190,719,818 | 187,547,303 | 569,518 | 2,602,997 |
Materials | 22,077,181 | 22,077,181 | -- | -- |
Real Estate | 8,978,125 | 8,978,125 | -- | -- |
Utilities | 12,352,459 | 12,352,459 | -- | -- |
Other | 1,612,505 | -- | -- | 1,612,505 |
Money Market Funds | 33,960,059 | 33,960,059 | -- | -- |
Total Investments in Securities: | $1,236,296,360 | $1,209,359,799 | $22,721,059 | $4,215,502 |
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 | 87.0% |
United Kingdom | 4.6% |
Canada | 2.3% |
Germany | 1.5% |
Others (Individually Less Than 1%) | 4.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $24,143,487) — See accompanying schedule: Unaffiliated issuers (cost $960,589,770) | $1,202,336,301 | |
Fidelity Central Funds (cost $33,960,059) | 33,960,059 | |
Total Investment in Securities (cost $994,549,829) | $1,236,296,360 | |
Cash | 82,072 | |
Restricted cash | 82,653 | |
Receivable for investments sold | 3,845,096 | |
Receivable for fund shares sold | 950,093 | |
Dividends receivable | 3,010,736 | |
Distributions receivable from Fidelity Central Funds | 30,818 | |
Prepaid expenses | 2,135 | |
Other receivables | 26,452 | |
Total assets | 1,244,326,415 | |
Liabilities | ||
Payable for investments purchased | $4,629,875 | |
Payable for fund shares redeemed | 2,329,708 | |
Accrued management fee | 472,262 | |
Distribution and service plan fees payable | 288,889 | |
Other affiliated payables | 224,871 | |
Other payables and accrued expenses | 64,067 | |
Collateral on securities loaned | 25,179,219 | |
Total liabilities | 33,188,891 | |
Net Assets | $1,211,137,524 | |
Net Assets consist of: | ||
Paid in capital | $819,181,057 | |
Total distributable earnings (loss) | 391,956,467 | |
Net Assets | $1,211,137,524 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($401,494,814 ÷ 11,893,964 shares) | $33.76 | |
Maximum offering price per share (100/94.25 of $33.76) | $35.82 | |
Class M: | ||
Net Asset Value and redemption price per share ($173,195,008 ÷ 5,150,502 shares) | $33.63 | |
Maximum offering price per share (100/96.50 of $33.63) | $34.85 | |
Class C: | ||
Net Asset Value and offering price per share ($158,774,553 ÷ 5,216,825 shares)(a) | $30.44 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($459,961,875 ÷ 13,003,140 shares) | $35.37 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($17,711,274 ÷ 500,218 shares) | $35.41 |
(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
Year ended November 30, 2018 | ||
Investment Income | ||
Dividends | $27,257,073 | |
Income from Fidelity Central Funds | 331,468 | |
Total income | 27,588,541 | |
Expenses | ||
Management fee | ||
Basic fee | $7,119,791 | |
Performance adjustment | (1,364,532) | |
Transfer agent fees | 2,416,355 | |
Distribution and service plan fees | 3,739,757 | |
Accounting and security lending fees | 422,842 | |
Custodian fees and expenses | 52,315 | |
Independent trustees' fees and expenses | 6,789 | |
Registration fees | 94,981 | |
Audit | 65,572 | |
Legal | 9,560 | |
Interest | 6,219 | |
Miscellaneous | 9,340 | |
Total expenses before reductions | 12,578,989 | |
Expense reductions | (80,397) | |
Total expenses after reductions | 12,498,592 | |
Net investment income (loss) | 15,089,949 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 165,246,156 | |
Fidelity Central Funds | (945) | |
Foreign currency transactions | (10,468) | |
Total net realized gain (loss) | 165,234,743 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (127,514,348) | |
Fidelity Central Funds | 194 | |
Assets and liabilities in foreign currencies | 1,891 | |
Total change in net unrealized appreciation (depreciation) | (127,512,263) | |
Net gain (loss) | 37,722,480 | |
Net increase (decrease) in net assets resulting from operations | $52,812,429 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $15,089,949 | $15,830,363 |
Net realized gain (loss) | 165,234,743 | 85,078,526 |
Change in net unrealized appreciation (depreciation) | (127,512,263) | 117,521,302 |
Net increase (decrease) in net assets resulting from operations | 52,812,429 | 218,430,191 |
Distributions to shareholders | (97,436,803) | – |
Distributions to shareholders from net investment income | – | (13,125,307) |
Distributions to shareholders from net realized gain | – | (11,235,798) |
Total distributions | (97,436,803) | (24,361,105) |
Share transactions - net increase (decrease) | (129,052,235) | (40,158,418) |
Total increase (decrease) in net assets | (173,676,609) | 153,910,668 |
Net Assets | ||
Beginning of period | 1,384,814,133 | 1,230,903,465 |
End of period | $1,211,137,524 | $1,384,814,133 |
Other Information | ||
Undistributed net investment income end of period | $11,455,652 |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $34.98 | $30.27 | $28.12 | $29.60 | $28.11 |
Income from Investment Operations | |||||
Net investment income (loss)A | .40 | .39 | .34 | .25 | .20 |
Net realized and unrealized gain (loss) | .89 | 4.93 | 2.64 | (.74) | 3.45 |
Total from investment operations | 1.29 | 5.32 | 2.98 | (.49) | 3.65 |
Distributions from net investment income | (.38) | (.33) | (.23) | (.14) | (.22) |
Distributions from net realized gain | (2.13) | (.27) | (.60) | (.85) | (1.94) |
Total distributions | (2.51) | (.61)B | (.83) | (.99) | (2.16) |
Net asset value, end of period | $33.76 | $34.98 | $30.27 | $28.12 | $29.60 |
Total ReturnC,D | 3.77% | 17.84% | 11.09% | (1.57)% | 14.13% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .92% | .91% | .92% | 1.15% | 1.30% |
Expenses net of fee waivers, if any | .92% | .91% | .92% | 1.15% | 1.25% |
Expenses net of all reductions | .92% | .90% | .91% | 1.15% | 1.25% |
Net investment income (loss) | 1.17% | 1.22% | 1.25% | .90% | .72% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $401,495 | $461,949 | $455,182 | $469,026 | $414,421 |
Portfolio turnover rateG | 37% | 31% | 28% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.61 per share is comprised of distributions from net investment income of $.334 and distributions from net realized gain of $.273 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 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.
Fidelity Advisor Large Cap Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $34.86 | $30.17 | $28.02 | $29.50 | $28.02 |
Income from Investment Operations | |||||
Net investment income (loss)A | .31 | .31 | .27 | .18 | .13 |
Net realized and unrealized gain (loss) | .89 | 4.91 | 2.64 | (.74) | 3.44 |
Total from investment operations | 1.20 | 5.22 | 2.91 | (.56) | 3.57 |
Distributions from net investment income | (.29) | (.26) | (.16) | (.07) | (.15) |
Distributions from net realized gain | (2.13) | (.27) | (.60) | (.85) | (1.94) |
Total distributions | (2.43)B | (.53) | (.76) | (.92) | (2.09) |
Net asset value, end of period | $33.63 | $34.86 | $30.17 | $28.02 | $29.50 |
Total ReturnC,D | 3.50% | 17.54% | 10.81% | (1.84)% | 13.83% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.18% | 1.17% | 1.18% | 1.41% | 1.56% |
Expenses net of fee waivers, if any | 1.18% | 1.17% | 1.18% | 1.41% | 1.50% |
Expenses net of all reductions | 1.18% | 1.17% | 1.18% | 1.41% | 1.50% |
Net investment income (loss) | .92% | .96% | .99% | .63% | .47% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $173,195 | $193,882 | $173,119 | $177,560 | $170,613 |
Portfolio turnover rateG | 37% | 31% | 28% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $2.43 per share is comprised of distributions from net investment income of $.294 and distributions from net realized gain of $2.132 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 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.
Fidelity Advisor Large Cap Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.78 | $27.58 | $25.70 | $27.21 | $26.07 |
Income from Investment Operations | |||||
Net investment income (loss)A | .13 | .14 | .12 | .04 | (.01) |
Net realized and unrealized gain (loss) | .81 | 4.49 | 2.40 | (.69) | 3.19 |
Total from investment operations | .94 | 4.63 | 2.52 | (.65) | 3.18 |
Distributions from net investment income | (.15) | (.15) | (.04) | (.01) | (.10) |
Distributions from net realized gain | (2.13) | (.27) | (.60) | (.85) | (1.94) |
Total distributions | (2.28) | (.43)B | (.64) | (.86) | (2.04) |
Net asset value, end of period | $30.44 | $31.78 | $27.58 | $25.70 | $27.21 |
Total ReturnC,D | 3.01% | 16.97% | 10.21% | (2.33)% | 13.31% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.69% | 1.67% | 1.67% | 1.90% | 2.05% |
Expenses net of fee waivers, if any | 1.69% | 1.67% | 1.67% | 1.90% | 2.00% |
Expenses net of all reductions | 1.68% | 1.66% | 1.67% | 1.90% | 2.00% |
Net investment income (loss) | .41% | .46% | .49% | .14% | (.03)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $158,775 | $194,553 | $169,524 | $181,957 | $168,763 |
Portfolio turnover rateG | 37% | 31% | 28% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.43 per share is comprised of distributions from net investment income of $.152 and distributions from net realized gain of $.273 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.
Fidelity Advisor Large Cap Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $36.53 | $31.57 | $29.30 | $30.78 | $29.03 |
Income from Investment Operations | |||||
Net investment income (loss)A | .51 | .50 | .43 | .34 | .28 |
Net realized and unrealized gain (loss) | .93 | 5.14 | 2.74 | (.78) | 3.59 |
Total from investment operations | 1.44 | 5.64 | 3.17 | (.44) | 3.87 |
Distributions from net investment income | (.47) | (.40) | (.30) | (.20) | (.18) |
Distributions from net realized gain | (2.13) | (.27) | (.60) | (.85) | (1.94) |
Total distributions | (2.60) | (.68)B | (.90) | (1.04)C | (2.12) |
Net asset value, end of period | $35.37 | $36.53 | $31.57 | $29.30 | $30.78 |
Total ReturnD | 4.05% | 18.16% | 11.34% | (1.33)% | 14.43% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .66% | .64% | .65% | .89% | 1.04% |
Expenses net of fee waivers, if any | .66% | .64% | .65% | .89% | 1.00% |
Expenses net of all reductions | .66% | .64% | .65% | .89% | 1.00% |
Net investment income (loss) | 1.44% | 1.48% | 1.51% | 1.15% | .97% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $459,962 | $520,465 | $433,079 | $498,404 | $515,771 |
Portfolio turnover rateG | 37% | 31% | 28% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.68 per share is comprised of distributions from net investment income of $.404 and distributions from net realized gain of $.273 per share.
C 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.
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.
Fidelity Advisor Large Cap Fund Class Z
Years ended November 30, | 2018 | 2017 A |
Selected Per–Share Data | ||
Net asset value, beginning of period | $36.57 | $32.04 |
Income from Investment Operations | ||
Net investment income (loss)B | .56 | .51 |
Net realized and unrealized gain (loss) | .93 | 4.02 |
Total from investment operations | 1.49 | 4.53 |
Distributions from net investment income | (.52) | – |
Distributions from net realized gain | (2.13) | – |
Total distributions | (2.65) | – |
Net asset value, end of period | $35.41 | $36.57 |
Total ReturnC,D | 4.19% | 14.14% |
Ratios to Average Net AssetsE,F | ||
Expenses before reductions | .53% | .51%G |
Expenses net of fee waivers, if any | .53% | .51%G |
Expenses net of all reductions | .53% | .51%G |
Net investment income (loss) | 1.57% | 1.80%G |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $17,711 | $13,966 |
Portfolio turnover rateH | 37% | 31% |
A For the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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, 2018
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 M, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018 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 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.
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, 2018, 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 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.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $330,339,704 |
Gross unrealized depreciation | (92,817,683) |
Net unrealized appreciation (depreciation) | $237,522,021 |
Tax Cost | $998,774,339 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $13,908,763 |
Undistributed long-term capital gain | $140,916,205 |
Net unrealized appreciation (depreciation) on securities and other investments | $237,131,499 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $23,346,706 | $ 13,536,874 |
Long-term Capital Gains | 74,090,097 | 10,824,231 |
Total | $97,436,803 | $ 24,361,105 |
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 $1,695,158 in this Subsidiary, representing .14% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $478,676,794 and $694,636,326, 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 .24% 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 .44% 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% | $1,093,956 | $23,537 |
Class M | .25% | .25% | 929,154 | 7,874 |
Class C | .75% | .25% | 1,716,647 | 158,964 |
$3,739,757 | $190,375 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $98,357 |
Class M | 15,331 |
Class C(a) | 11,343 |
$125,031 |
(a) When 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 | $818,454 | .19 |
Class M | 365,328 | .20 |
Class C | 341,137 | .20 |
Class I | 883,681 | .17 |
Class Z | 7,755 | .05 |
$2,416,355 |
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. For the period, the fees were equivalent to an annual rate of .03%.
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 $11,143 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $9,932,643 | 1.61% | $6,219 |
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 $5,035.
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 $3,654 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 $795,746. 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 $189,194, including $25,334 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $66,531 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 $13,866.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $32,666,263 | $– |
Class M | 13,408,791 | – |
Class C | 13,819,228 | – |
Class I | 36,527,867 | – |
Class Z | 1,014,654 | – |
Total | $97,436,803 | $– |
From net investment income | ||
Class A | $– | $5,099,262 |
Class M | – | 1,475,469 |
Class C | – | 953,207 |
Class I | – | 5,597,369 |
Total | $– | $13,125,307 |
From net realized gain | ||
Class A | $– | $4,167,959 |
Class M | – | 1,573,449 |
Class C | – | 1,712,010 |
Class I | – | 3,782,380 |
Total | $– | $11,235,798 |
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, 2018 | Year ended November 30, 2017(a) | Year ended November 30, 2018 | Year ended November 30, 2017(a) | |
Class A | ||||
Shares sold | 1,712,222 | 3,335,635 | $58,739,685 | $105,955,818 |
Reinvestment of distributions | 950,555 | 289,062 | 31,701,003 | 8,882,868 |
Shares redeemed | (3,976,434) | (5,456,801) | (136,078,999) | (175,106,485) |
Net increase (decrease) | (1,313,657) | (1,832,104) | $(45,638,311) | $(60,267,799) |
Class M | ||||
Shares sold | 598,948 | 966,917 | $20,402,311 | $30,770,230 |
Reinvestment of distributions | 395,478 | 96,794 | 13,169,411 | 2,971,572 |
Shares redeemed | (1,406,391) | (1,240,208) | (47,695,158) | (39,777,162) |
Net increase (decrease) | (411,965) | (176,497) | $(14,123,436) | $(6,035,360) |
Class C | ||||
Shares sold | 652,661 | 1,666,007 | $20,372,329 | $47,964,478 |
Reinvestment of distributions | 423,097 | 83,161 | 12,811,392 | 2,338,494 |
Shares redeemed | (1,980,528) | (1,773,151) | (61,523,821) | (51,988,707) |
Net increase (decrease) | (904,770) | (23,983) | $(28,340,100) | $(1,685,735) |
Class I | ||||
Shares sold | 2,810,257 | 5,289,459 | $100,775,615 | $176,163,579 |
Reinvestment of distributions | 973,077 | 273,175 | 33,921,480 | 8,747,051 |
Shares redeemed | (5,026,296) | (5,033,155) | (180,183,302) | (169,303,967) |
Net increase (decrease) | (1,242,962) | 529,479 | $(45,486,207) | $15,606,663 |
Class Z | ||||
Shares sold | 445,216 | 789,170 | $15,909,977 | $26,644,229 |
Reinvestment of distributions | 25,324 | – | 882,557 | – |
Shares redeemed | (352,207) | (407,285) | (12,256,715) | (14,420,416) |
Net increase (decrease) | 118,333 | 381,885 | $4,535,819 | $12,223,813 |
(a) Share transactions for Class Z are for the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
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 Large Cap Fund:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 11, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .93% | |||
Actual | $1,000.00 | $1,012.30 | $4.69 | |
Hypothetical-C | $1,000.00 | $1,020.41 | $4.71 | |
Class M | 1.19% | |||
Actual | $1,000.00 | $1,011.10 | $6.00 | |
Hypothetical-C | $1,000.00 | $1,019.10 | $6.02 | |
Class C | 1.69% | |||
Actual | $1,000.00 | $1,008.60 | $8.51 | |
Hypothetical-C | $1,000.00 | $1,016.60 | $8.54 | |
Class I | .67% | |||
Actual | $1,000.00 | $1,013.50 | $3.38 | |
Hypothetical-C | $1,000.00 | $1,021.71 | $3.40 | |
Class Z | .54% | |||
Actual | $1,000.00 | $1,014.30 | $2.73 | |
Hypothetical-C | $1,000.00 | $1,022.36 | $2.74 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity 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 | 12/27/18 | 12/26/18 | $0.451 | $3.989 |
Class M | 12/27/18 | 12/26/18 | $0.362 | $3.989 |
Class C | 12/27/18 | 12/26/18 | $0.214 | $3.989 |
Class I | 12/27/18 | 12/26/18 | $0.541 | $3.989 |
Class Z | 12/27/18 | 12/26/18 | $0.598 | $3.989 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $151,831,007, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class M, 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 M, 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Large Cap Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
LC-ANN-0119
1.539156.121
Fidelity Advisor® Series Equity Growth Fund Annual Report November 30, 2018 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Life of fundA |
Fidelity Advisor® Series Equity Growth Fund | 8.96% | 12.33% |
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/0001379491-19-000231/img446435756_740.jpg)
Period Ending Values | ||
$16,848 | Fidelity Advisor® Series Equity Growth Fund | |
$16,800 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Lead Portfolio Manager Jason Weiner: For the fiscal year, the fund returned 8.96%, outpacing the 8.14% result of the benchmark Russell 3000® Growth Index. Choices and a large overweighting in the information technology sector's software & services industry boosted the fund’s performance versus the benchmark the most, as stocks in higher-growth industries rallied for much of the 12-month period. Meanwhile, positioning in the materials sector held back the fund’s relative result. At the stock level, a significant overweighting in publishing software maker Adobe added more value than any other fund position. The market rewarded the company's strong growth this period, with the stock gaining about 38%. Our sizable position in e-tailer Amazon.com rose about 44% for the fund, as the firm continued to grow market share. The company also reported strong quarterly profits, largely driven by Amazon Web Services and its emerging advertising business. Conversely, an overweighting in Insmed, a biopharmaceutical firm focused on treatments for rare diseases, was the fund’s largest relative detractor. The fund’s stake in Charles Schwab, a large fund holding during the period, also hurt. Shares of the bank and brokerage firm returned about -7%, in part due to competition concerns as well as a broader equity market correction that pulled down financials stocks late in the period.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: Co-Portfolio Manager Asher Anolic served as interim manager while Lead Portfolio Manager Jason Weiner was on a leave of absence from January 1, 2018, through mid-June 2018.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Microsoft Corp. | 7.0 |
Alphabet, Inc. Class A | 6.3 |
Amazon.com, Inc. | 6.0 |
Apple, Inc. | 3.5 |
Visa, Inc. Class A | 3.3 |
Adobe, Inc. | 2.8 |
Home Depot, Inc. | 2.7 |
Charles Schwab Corp. | 2.5 |
American Tower Corp. | 2.0 |
CME Group, Inc. | 2.0 |
38.1 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 32.3 |
Consumer Discretionary | 15.4 |
Health Care | 14.6 |
Communication Services | 9.9 |
Financials | 7.5 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018 * | ||
Stocks | 97.7% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.2% |
* Foreign investments - 11.8%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 97.5% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 9.9% | |||
Entertainment - 0.8% | |||
Activision Blizzard, Inc. | 75,900 | $3,785,892 | |
Electronic Arts, Inc. (a) | 45,600 | 3,833,592 | |
7,619,484 | |||
Interactive Media & Services - 8.1% | |||
Alphabet, Inc. Class A (a) | 53,900 | 59,810,135 | |
Facebook, Inc. Class A (a) | 60,200 | 8,464,722 | |
Tencent Holdings Ltd. | 211,400 | 8,451,486 | |
76,726,343 | |||
Media - 1.0% | |||
Charter Communications, Inc. Class A (a) | 29,600 | 9,744,320 | |
TOTAL COMMUNICATION SERVICES | 94,090,147 | ||
CONSUMER DISCRETIONARY - 15.4% | |||
Diversified Consumer Services - 1.0% | |||
Grand Canyon Education, Inc. (a) | 57,900 | 7,084,644 | |
Laureate Education, Inc. Class A (a) | 141,600 | 2,088,600 | |
9,173,244 | |||
Hotels, Restaurants & Leisure - 1.3% | |||
Domino's Pizza, Inc. | 14,200 | 3,937,944 | |
McDonald's Corp. | 32,200 | 6,070,022 | |
Wingstop, Inc. | 43,800 | 2,874,156 | |
12,882,122 | |||
Household Durables - 1.0% | |||
D.R. Horton, Inc. | 125,700 | 4,678,554 | |
NVR, Inc. (a) | 1,990 | 4,875,500 | |
9,554,054 | |||
Internet & Direct Marketing Retail - 7.7% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 32,700 | 5,260,122 | |
Amazon.com, Inc. (a) | 33,600 | 56,789,712 | |
MercadoLibre, Inc. | 10,900 | 3,836,473 | |
Stamps.com, Inc. (a) | 39,800 | 6,824,108 | |
72,710,415 | |||
Media - 0.0% | |||
China Literature Ltd. (a)(b) | 177 | 928 | |
Specialty Retail - 3.6% | |||
Home Depot, Inc. | 142,700 | 25,731,664 | |
Ross Stores, Inc. | 23,100 | 2,023,560 | |
Ulta Beauty, Inc. (a) | 21,000 | 6,253,590 | |
34,008,814 | |||
Textiles, Apparel & Luxury Goods - 0.8% | |||
LVMH Moet Hennessy - Louis Vuitton SA (c) | 19,289 | 5,514,954 | |
Michael Kors Holdings Ltd. (a) | 40,000 | 1,750,000 | |
Pinduoduo, Inc. ADR | 8,000 | 183,680 | |
7,448,634 | |||
TOTAL CONSUMER DISCRETIONARY | 145,778,211 | ||
CONSUMER STAPLES - 3.9% | |||
Beverages - 1.6% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 19,600 | 3,836,896 | |
Fever-Tree Drinks PLC | 53,239 | 1,622,728 | |
Kweichow Moutai Co. Ltd. (A Shares) | 24,280 | 1,970,864 | |
Monster Beverage Corp. (a) | 41,200 | 2,458,816 | |
Pernod Ricard SA | 14,700 | 2,349,832 | |
Pernod Ricard SA ADR | 70,900 | 2,271,282 | |
14,510,418 | |||
Food Products - 0.5% | |||
McCormick & Co., Inc. (non-vtg.) | 20,300 | 3,045,000 | |
The Simply Good Foods Co. (a) | 75,700 | 1,538,224 | |
4,583,224 | |||
Household Products - 0.5% | |||
Energizer Holdings, Inc. | 105,200 | 4,716,116 | |
Personal Products - 1.3% | |||
Estee Lauder Companies, Inc. Class A | 41,800 | 5,963,188 | |
Unilever NV (NY Reg.) | 118,200 | 6,561,282 | |
12,524,470 | |||
TOTAL CONSUMER STAPLES | 36,334,228 | ||
ENERGY - 2.8% | |||
Oil, Gas & Consumable Fuels - 2.8% | |||
Anadarko Petroleum Corp. | 39,900 | 2,110,710 | |
Cheniere Energy, Inc. (a) | 233,400 | 14,265,408 | |
Range Resources Corp. | 258,000 | 3,753,900 | |
Reliance Industries Ltd. | 352,016 | 5,900,880 | |
26,030,898 | |||
FINANCIALS - 7.3% | |||
Banks - 2.2% | |||
First Republic Bank | 74,800 | 7,416,420 | |
HDFC Bank Ltd. | 20,604 | 630,346 | |
HDFC Bank Ltd. sponsored ADR | 50,900 | 5,162,278 | |
M&T Bank Corp. | 43,500 | 7,351,935 | |
Metro Bank PLC (a) | 16,900 | 452,662 | |
21,013,641 | |||
Capital Markets - 5.0% | |||
Charles Schwab Corp. | 520,100 | 23,300,480 | |
CME Group, Inc. | 99,738 | 18,958,199 | |
JMP Group, Inc. | 50,300 | 246,973 | |
MSCI, Inc. | 2,200 | 345,598 | |
The Blackstone Group LP | 143,300 | 4,833,509 | |
47,684,759 | |||
Diversified Financial Services - 0.1% | |||
Prosegur Cash SA (b) | 252,600 | 534,189 | |
TOTAL FINANCIALS | 69,232,589 | ||
HEALTH CARE - 14.5% | |||
Biotechnology - 3.4% | |||
AC Immune SA (a) | 72,100 | 801,752 | |
Acceleron Pharma, Inc. (a) | 20,200 | 1,069,186 | |
Affimed NV (a)(c) | 104,600 | 468,608 | |
Alexion Pharmaceuticals, Inc. (a) | 37,700 | 4,642,755 | |
Biogen, Inc. (a) | 31,100 | 10,378,692 | |
Calyxt, Inc. (a)(c) | 55,333 | 637,436 | |
Cytokinetics, Inc. (a) | 80,910 | 635,953 | |
Gamida Cell Ltd. (a) | 10,200 | 157,182 | |
Insmed, Inc. (a) | 247,075 | 4,425,113 | |
Prothena Corp. PLC (a) | 50,400 | 605,304 | |
Rubius Therapeutics, Inc. | 9,783 | 209,161 | |
Vertex Pharmaceuticals, Inc. (a) | 48,067 | 8,690,033 | |
32,721,175 | |||
Health Care Equipment & Supplies - 5.6% | |||
Becton, Dickinson & Co. | 67,600 | 17,085,900 | |
Boston Scientific Corp. (a) | 234,400 | 8,829,848 | |
Danaher Corp. | 61,200 | 6,703,848 | |
Intuitive Surgical, Inc. (a) | 32,400 | 17,200,188 | |
ResMed, Inc. | 28,700 | 3,208,373 | |
53,028,157 | |||
Health Care Providers & Services - 1.2% | |||
Elanco Animal Health, Inc. | 4,800 | 160,368 | |
National Vision Holdings, Inc. (a) | 3,300 | 121,341 | |
Neuronetics, Inc. | 14,500 | 258,680 | |
UnitedHealth Group, Inc. | 37,200 | 10,466,592 | |
11,006,981 | |||
Health Care Technology - 0.3% | |||
Veeva Systems, Inc. Class A (a) | 30,400 | 2,923,264 | |
Life Sciences Tools & Services - 0.7% | |||
Codexis, Inc. (a) | 43,200 | 946,944 | |
Mettler-Toledo International, Inc. (a) | 6,500 | 4,138,290 | |
Sartorius Stedim Biotech | 14,800 | 1,497,904 | |
6,583,138 | |||
Pharmaceuticals - 3.3% | |||
AstraZeneca PLC sponsored ADR | 359,300 | 14,307,326 | |
Mallinckrodt PLC (a) | 94,200 | 2,241,018 | |
Mylan NV (a) | 120,400 | 4,076,744 | |
Novartis AG sponsored ADR | 52,400 | 4,796,172 | |
Perrigo Co. PLC | 95,900 | 5,972,652 | |
31,393,912 | |||
TOTAL HEALTH CARE | 137,656,627 | ||
INDUSTRIALS - 6.2% | |||
Aerospace & Defense - 0.4% | |||
TransDigm Group, Inc. (a) | 9,800 | 3,544,366 | |
Commercial Services & Supplies - 0.7% | |||
Copart, Inc. (a) | 123,200 | 6,305,376 | |
Electrical Equipment - 1.9% | |||
AMETEK, Inc. | 89,800 | 6,594,014 | |
Fortive Corp. | 117,450 | 8,934,422 | |
Nidec Corp. | 21,300 | 2,837,123 | |
18,365,559 | |||
Industrial Conglomerates - 0.5% | |||
Roper Technologies, Inc. | 14,700 | 4,374,573 | |
Machinery - 1.6% | |||
Allison Transmission Holdings, Inc. | 199,900 | 9,417,289 | |
Gardner Denver Holdings, Inc. (a) | 248,100 | 6,140,475 | |
15,557,764 | |||
Professional Services - 1.1% | |||
IHS Markit Ltd. (a) | 90,700 | 4,840,659 | |
TransUnion Holding Co., Inc. | 93,439 | 6,033,356 | |
10,874,015 | |||
TOTAL INDUSTRIALS | 59,021,653 | ||
INFORMATION TECHNOLOGY - 32.3% | |||
Electronic Equipment & Components - 0.6% | |||
Amphenol Corp. Class A | 25,800 | 2,268,852 | |
Zebra Technologies Corp. Class A (a) | 17,700 | 3,182,460 | |
5,451,312 | |||
IT Services - 9.1% | |||
Adyen BV | 2,900 | 1,500,536 | |
Elastic NV | 900 | 64,305 | |
Fidelity National Information Services, Inc. | 75,500 | 8,150,225 | |
Global Payments, Inc. | 56,300 | 6,294,903 | |
GoDaddy, Inc. (a) | 96,500 | 6,297,590 | |
MasterCard, Inc. Class A | 35,900 | 7,218,413 | |
Okta, Inc. (a) | 16,700 | 1,062,955 | |
PayPal Holdings, Inc. (a) | 136,800 | 11,738,808 | |
Shopify, Inc. Class A (a) | 23,500 | 3,577,044 | |
VeriSign, Inc. (a) | 46,300 | 7,225,578 | |
Visa, Inc. Class A | 218,400 | 30,949,464 | |
Wix.com Ltd. (a) | 23,600 | 2,222,648 | |
86,302,469 | |||
Semiconductors & Semiconductor Equipment - 3.4% | |||
ASML Holding NV | 24,500 | 4,198,075 | |
Broadcom, Inc. | 17,100 | 4,059,711 | |
Cree, Inc. (a) | 34,600 | 1,527,244 | |
Maxim Integrated Products, Inc. | 80,614 | 4,507,935 | |
Monolithic Power Systems, Inc. | 19,648 | 2,594,911 | |
NVIDIA Corp. | 55,100 | 9,004,993 | |
NXP Semiconductors NV | 28,100 | 2,342,697 | |
Semtech Corp. (a) | 79,900 | 4,261,866 | |
32,497,432 | |||
Software - 15.7% | |||
Adobe, Inc. (a) | 107,200 | 26,895,408 | |
Autodesk, Inc. (a) | 43,700 | 6,314,650 | |
Black Knight, Inc. (a) | 98,500 | 4,465,990 | |
DocuSign, Inc. | 55,800 | 2,330,208 | |
Intuit, Inc. | 45,200 | 9,696,756 | |
Microsoft Corp. | 599,200 | 66,445,287 | |
Pluralsight, Inc. | 20,600 | 496,254 | |
Red Hat, Inc. (a) | 52,355 | 9,348,509 | |
Salesforce.com, Inc. (a) | 99,200 | 14,161,792 | |
SolarWinds, Inc. (a) | 148,600 | 2,364,226 | |
Splunk, Inc. (a) | 28,700 | 3,206,651 | |
Upwork, Inc. | 2,300 | 42,849 | |
Zscaler, Inc. (a)(c) | 67,100 | 2,634,346 | |
148,402,926 | |||
Technology Hardware, Storage & Peripherals - 3.5% | |||
Apple, Inc. | 186,200 | 33,251,596 | |
TOTAL INFORMATION TECHNOLOGY | 305,905,735 | ||
MATERIALS - 3.2% | |||
Chemicals - 3.0% | |||
CF Industries Holdings, Inc. | 86,500 | 3,649,435 | |
DowDuPont, Inc. | 187,400 | 10,841,090 | |
Sherwin-Williams Co. | 13,000 | 5,512,910 | |
The Chemours Co. LLC | 126,500 | 3,602,720 | |
Umicore SA | 105,941 | 4,595,940 | |
28,202,095 | |||
Containers & Packaging - 0.2% | |||
Aptargroup, Inc. | 22,400 | 2,330,720 | |
TOTAL MATERIALS | 30,532,815 | ||
REAL ESTATE - 2.0% | |||
Equity Real Estate Investment Trusts (REITs) - 2.0% | |||
American Tower Corp. | 115,600 | 19,015,044 | |
TOTAL COMMON STOCKS | |||
(Cost $640,381,090) | 923,597,947 | ||
Preferred Stocks - 0.3% | |||
Convertible Preferred Stocks - 0.1% | |||
HEALTH CARE - 0.1% | |||
Biotechnology - 0.1% | |||
BioNTech AG Series A (d)(e) | 3,869 | 1,111,931 | |
INFORMATION TECHNOLOGY - 0.0% | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(d)(e) | 38,419 | 37,074 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 1,149,005 | ||
Nonconvertible Preferred Stocks - 0.2% | |||
FINANCIALS - 0.2% | |||
Banks - 0.2% | |||
Itau Unibanco Holding SA sponsored ADR | 202,050 | 1,885,127 | |
TOTAL PREFERRED STOCKS | |||
(Cost $2,743,007) | 3,034,132 | ||
Money Market Funds - 2.1% | |||
Fidelity Cash Central Fund, 2.27% (f) | 10,994,524 | 10,996,723 | |
Fidelity Securities Lending Cash Central Fund 2.27% (f)(g) | 8,712,609 | 8,713,480 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $19,710,203) | 19,710,203 | ||
TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
(Cost $662,834,300) | 946,342,282 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 1,010,637 | ||
NET ASSETS - 100% | $947,352,919 |
Legend
(a) Non-income producing
(b) 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 $535,117 or 0.1% of net assets.
(c) Security or a portion of the security is on loan at period end.
(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 $1,149,005 or 0.1% of net assets.
(e) Level 3 security
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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.
(g) 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 (Escrow) | 8/1/14 | $69,266 |
BioNTech AG Series A | 12/29/17 | $847,344 |
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 | $236,445 |
Fidelity Securities Lending Cash Central Fund | 19,495 |
Total | $255,940 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $94,090,147 | $85,638,661 | $8,451,486 | $-- |
Consumer Discretionary | 145,778,211 | 145,778,211 | -- | -- |
Consumer Staples | 36,334,228 | 36,334,228 | -- | -- |
Energy | 26,030,898 | 26,030,898 | -- | -- |
Financials | 71,117,716 | 70,487,370 | 630,346 | -- |
Health Care | 138,768,558 | 137,656,627 | -- | 1,111,931 |
Industrials | 59,021,653 | 59,021,653 | -- | -- |
Information Technology | 305,942,809 | 305,905,735 | -- | 37,074 |
Materials | 30,532,815 | 30,532,815 | -- | -- |
Real Estate | 19,015,044 | 19,015,044 | -- | -- |
Money Market Funds | 19,710,203 | 19,710,203 | -- | -- |
Total Investments in Securities: | $946,342,282 | $936,111,445 | $9,081,832 | $1,149,005 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.2% |
Netherlands | 1.8% |
United Kingdom | 1.7% |
Cayman Islands | 1.5% |
India | 1.3% |
France | 1.3% |
Others (Individually Less Than 1%) | 4.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $8,313,168) — See accompanying schedule: Unaffiliated issuers (cost $643,124,097) | $926,632,079 | |
Fidelity Central Funds (cost $19,710,203) | 19,710,203 | |
Total Investment in Securities (cost $662,834,300) | $946,342,282 | |
Foreign currency held at value (cost $59,185) | 59,185 | |
Receivable for investments sold | 1,862,563 | |
Receivable for fund shares sold | 9,610,872 | |
Dividends receivable | 1,106,838 | |
Distributions receivable from Fidelity Central Funds | 31,246 | |
Total assets | 959,012,986 | |
Liabilities | ||
Payable for investments purchased | $2,708,800 | |
Payable for fund shares redeemed | 222,100 | |
Other payables and accrued expenses | 15,717 | |
Collateral on securities loaned | 8,713,450 | |
Total liabilities | 11,660,067 | |
Net Assets | $947,352,919 | |
Net Assets consist of: | ||
Paid in capital | $590,705,485 | |
Total distributable earnings (loss) | 356,647,434 | |
Net Assets, for 66,692,579 shares outstanding | $947,352,919 | |
Net Asset Value, offering price and redemption price per share ($947,352,919 ÷ 66,692,579 shares) | $14.20 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2018 | ||
Investment Income | ||
Dividends | $8,744,776 | |
Income from Fidelity Central Funds | 255,940 | |
Total income | 9,000,716 | |
Expenses | ||
Custodian fees and expenses | $49,304 | |
Independent trustees' fees and expenses | 4,983 | |
Insurance | 4,258 | |
Interest | 2,974 | |
Commitment fees | 2,635 | |
Total expenses before reductions | 64,154 | |
Expense reductions | (45,402) | |
Total expenses after reductions | 18,752 | |
Net investment income (loss) | 8,981,964 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 65,252,001 | |
Fidelity Central Funds | 1,189 | |
Foreign currency transactions | (21,918) | |
Total net realized gain (loss) | 65,231,272 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $220,661) | 11,419,288 | |
Assets and liabilities in foreign currencies | (1,178) | |
Total change in net unrealized appreciation (depreciation) | 11,418,110 | |
Net gain (loss) | 76,649,382 | |
Net increase (decrease) in net assets resulting from operations | $85,631,346 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $8,981,964 | $5,302,623 |
Net realized gain (loss) | 65,231,272 | 143,283,224 |
Change in net unrealized appreciation (depreciation) | 11,418,110 | 148,758,288 |
Net increase (decrease) in net assets resulting from operations | 85,631,346 | 297,344,135 |
Distributions to shareholders | (143,605,042) | – |
Distributions to shareholders from net investment income | – | (1,111,461) |
Total distributions | (143,605,042) | (1,111,461) |
Share transactions | ||
Proceeds from sales of shares | 87,625,024 | 64,402,665 |
Reinvestment of distributions | 143,605,042 | 1,111,461 |
Cost of shares redeemed | (159,465,335) | (330,174,404) |
Net increase (decrease) in net assets resulting from share transactions | 71,764,731 | (264,660,278) |
Total increase (decrease) in net assets | 13,791,035 | 31,572,396 |
Net Assets | ||
Beginning of period | 933,561,884 | 901,989,488 |
End of period | $947,352,919 | $933,561,884 |
Other Information | ||
Undistributed net investment income end of period | $4,414,460 | |
Shares | ||
Sold | 6,182,178 | 4,902,858 |
Issued in reinvestment of distributions | 10,987,379 | 97,497 |
Redeemed | (11,049,440) | (24,836,652) |
Net increase (decrease) | 6,120,117 | (19,836,297) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Series Equity Growth Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 A |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.41 | $11.22 | $11.25 | $10.65 | $10.00 |
Income from Investment Operations | |||||
Net investment income (loss)B | .13 | .08 | .02 | .02 | .01 |
Net realized and unrealized gain (loss) | 1.05 | 4.12 | (.03) | .59 | .64 |
Total from investment operations | 1.18 | 4.20 | (.01) | .61 | .65 |
Distributions from net investment income | (.09) | (.01) | (.02) | (.01) | – |
Distributions from net realized gain | (2.30) | – | – | – | – |
Total distributions | (2.39) | (.01) | (.02) | (.01) | – |
Net asset value, end of period | $14.20 | $15.41 | $11.22 | $11.25 | $10.65 |
Total ReturnC,D | 8.96% | 37.51% | (.11)% | 5.70% | 6.50% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .01% | .32% | .65% | .74% | .77%G |
Expenses net of fee waivers, if any | .01% | .32% | .65% | .74% | .77%G |
Expenses net of all reductions | - %H | .32% | .65% | .73% | .77%G |
Net investment income (loss) | .92% | .57% | .15% | .19% | .23%G |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $947,353 | $933,562 | $901,989 | $964,918 | $986,534 |
Portfolio turnover rateI | 38% | 48% | 60% | 65% | 26%J,K |
A For the period June 6, 2014 (commencement of operations) to November 30, 2014.
B Calculated based on average shares outstanding during the period.
C 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 represents less than .005%.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
K Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs)and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018 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 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.
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, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other Payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), certain foreign taxes, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $304,973,983 |
Gross unrealized depreciation | (21,456,070) |
Net unrealized appreciation (depreciation) | $283,517,913 |
Tax Cost | $662,824,369 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $7,727,230 |
Undistributed long-term capital gain | $65,403,503 |
Net unrealized appreciation (depreciation) on securities and other investments | $283,516,701 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $18,846,280 | $ 1,111,461 |
Long-term Capital Gains | 124,758,762 | – |
Total | $143,605,042 | $ 1,111,461 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $365,023,585 and $421,021,245, 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 does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $7,967 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 | $7,372,000 | 2.07% | $2,974 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,635 and is reflected in Commitment fees 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 $554,112. 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 $19,495, including $914 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $45,402 for the period.
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 Board of Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Series Equity Growth Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Advisor Series Equity Growth Fund (one of the funds constituting Fidelity Advisor Series I, referred to hereafter as the "Fund") as of November 30, 2018, the related statement of operations for the year ended November 30, 2018, the statement of changes in net assets for each of the two years in the period ended November 30, 2018, including the related notes, and the financial highlights for each of the four years in the period ended November 30, 2018 and for the period June 6, 2014 (commencement of operations) through November 30, 2014 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 ended November 30, 2018 and the financial highlights for each of the four years in the period ended November 30, 2018 and for the period June 6, 2014 (commencement of operations) through November 30, 2014 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 17, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Actual | .01% | $1,000.00 | $996.50 | $.05 |
Hypothetical-C | $1,000.00 | $1,025.02 | $.05 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Series Equity Growth Fund voted to pay on December 20, 2018, to shareholders of record at the opening of business on December 19, 2018, a distribution of $0.994 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.130 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $65,403,502, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 32% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 38% of the dividends distributed in December 2018 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Series Equity Growth Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders, including the expense cap arrangement currently in place for the fund; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
AXM1-ANN-0119
1.9860268.104
Fidelity Advisor® Series Growth Opportunities Fund Annual Report November 30, 2018 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
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Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Life of fundA |
Fidelity Advisor® Series Growth Opportunities Fund | 23.13% | 14.79% | 15.10% |
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/0001379491-19-000231/img446435161_740.jpg)
Period Ending Values | ||
$20,389 | Fidelity Advisor® Series Growth Opportunities Fund | |
$18,868 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Kyle Weaver: For the fiscal year, the fund gained 23.13%, more than double the 8.14% advance of the benchmark Russell 3000® Growth Index. Versus the benchmark, stock picking in the consumer staples sector stood out, including top contributor Juul Labs, a privately traded maker of e-cigarettes. Sales of the company’s e-cigarette devices and pods increased significantly the past 12 months, leading to a higher valuation. The company and the industry face a number of social and public policy concerns. Stock choices in information technology, consumer discretionary, industrials and communication services also lifted the fund’s relative result. Two holdings in software & services were top contributors: The Trade Desk and Wix.com. Carvana, a fast-growing online provider of used cars, further contributed. All the contributors I’ve mentioned were out-of-benchmark holdings. Conversely, positioning in the health care sector detracted this period, along with stock selection in financials and materials. A non-index stake in software engineering provider Luxoft Holding was the fund’s largest relative detractor. A sizable overweighting in the shares of chemical company Chemours also hurt, as did a sizable non-benchmark stake in London-based British American Tobacco, the latter of which we sold off during the period.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, 2018
% of fund's net assets | |
JUUL Labs, Inc. Series C | 5.6 |
Amazon.com, Inc. | 5.3 |
Alphabet, Inc. Class C | 5.1 |
Microsoft Corp. | 4.9 |
Apple, Inc. | 4.4 |
Facebook, Inc. Class A | 2.3 |
Salesforce.com, Inc. | 2.1 |
Alphabet, Inc. Class A | 1.9 |
Tesla, Inc. | 1.9 |
T-Mobile U.S., Inc. | 1.8 |
35.3 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 36.1 |
Communication Services | 15.8 |
Consumer Discretionary | 13.7 |
Health Care | 12.0 |
Consumer Staples | 6.4 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 90.4% | |
Convertible Securities | 6.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.0% |
* Foreign investments - 11.4%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 90.4% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 15.4% | |||
Entertainment - 1.9% | |||
Activision Blizzard, Inc. | 73,000 | $3,641,240 | |
Electronic Arts, Inc. (a) | 23,100 | 1,942,017 | |
Netflix, Inc. (a) | 15,800 | 4,520,854 | |
Take-Two Interactive Software, Inc. (a) | 600 | 65,802 | |
The Walt Disney Co. | 19,300 | 2,228,957 | |
12,398,870 | |||
Interactive Media & Services - 10.0% | |||
Alphabet, Inc.: | |||
Class A (a) | 10,800 | 11,984,220 | |
Class C (a) | 29,900 | 32,723,457 | |
Facebook, Inc. Class A (a) | 102,000 | 14,342,220 | |
IAC/InterActiveCorp (a) | 15,500 | 2,758,380 | |
Momo, Inc. ADR (a) | 49,800 | 1,561,230 | |
63,369,507 | |||
Media - 1.7% | |||
Charter Communications, Inc. Class A (a) | 20,362 | 6,703,170 | |
Naspers Ltd. Class N | 19,500 | 3,887,688 | |
10,590,858 | |||
Wireless Telecommunication Services - 1.8% | |||
T-Mobile U.S., Inc. (a) | 172,600 | 11,814,470 | |
TOTAL COMMUNICATION SERVICES | 98,173,705 | ||
CONSUMER DISCRETIONARY - 13.7% | |||
Automobiles - 1.9% | |||
Tesla, Inc. (a)(b) | 34,121 | 11,958,728 | |
Hotels, Restaurants & Leisure - 0.6% | |||
Hilton Grand Vacations, Inc. (a) | 49,800 | 1,596,588 | |
Hilton Worldwide Holdings, Inc. | 6,000 | 453,240 | |
Marriott International, Inc. Class A | 500 | 57,515 | |
Planet Fitness, Inc. (a) | 28,900 | 1,595,858 | |
3,703,201 | |||
Household Durables - 1.0% | |||
Mohawk Industries, Inc. (a) | 8,200 | 1,050,092 | |
Roku, Inc. Class A (a)(b) | 132,900 | 5,415,675 | |
6,465,767 | |||
Internet & Direct Marketing Retail - 8.1% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 43,300 | 6,965,238 | |
Amazon.com, Inc. (a) | 19,960 | 33,735,793 | |
Gaia, Inc. Class A (a) | 26,500 | 345,560 | |
Groupon, Inc. (a) | 210,800 | 647,156 | |
GrubHub, Inc. (a) | 8,100 | 634,149 | |
JD.com, Inc. sponsored ADR (a) | 75,000 | 1,592,250 | |
Meituan Dianping Class B | 176,600 | 1,183,879 | |
The Booking Holdings, Inc. (a) | 900 | 1,702,692 | |
Wayfair LLC Class A (a) | 44,400 | 4,715,280 | |
51,521,997 | |||
Media - 0.0% | |||
Liberty Latin America Ltd. Class A (a) | 2 | 37 | |
Multiline Retail - 0.5% | |||
Dollar Tree, Inc. (a) | 37,700 | 3,271,229 | |
Specialty Retail - 0.9% | |||
Floor & Decor Holdings, Inc. Class A (a)(b) | 91,500 | 3,031,395 | |
Home Depot, Inc. | 2,000 | 360,640 | |
Lowe's Companies, Inc. | 23,500 | 2,217,695 | |
Tiffany & Co., Inc. | 600 | 54,600 | |
5,664,330 | |||
Textiles, Apparel & Luxury Goods - 0.7% | |||
Allbirds, Inc. (c)(d) | 898 | 49,243 | |
Axonics Modulation Technologies, Inc. (a) | 3,800 | 50,160 | |
Carbon Black, Inc. | 1,000 | 16,290 | |
lululemon athletica, Inc. (a) | 14,000 | 1,855,700 | |
Pinduoduo, Inc. ADR (b) | 129,100 | 2,964,136 | |
4,935,529 | |||
TOTAL CONSUMER DISCRETIONARY | 87,520,818 | ||
CONSUMER STAPLES - 0.8% | |||
Beverages - 0.4% | |||
Fever-Tree Drinks PLC | 73,507 | 2,240,498 | |
Food & Staples Retailing - 0.4% | |||
BJ's Wholesale Club Holdings, Inc. | 102,100 | 2,385,056 | |
Costco Wholesale Corp. | 600 | 138,768 | |
Walmart, Inc. | 700 | 68,355 | |
2,592,179 | |||
Food Products - 0.0% | |||
nLIGHT, Inc. (a) | 12,400 | 236,840 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. (c)(d) | 709 | 152,435 | |
TOTAL CONSUMER STAPLES | 5,221,952 | ||
ENERGY - 1.1% | |||
Oil, Gas & Consumable Fuels - 1.1% | |||
Oasis Petroleum, Inc. (a) | 27,400 | 195,636 | |
Reliance Industries Ltd. | 350,126 | 5,869,198 | |
Whiting Petroleum Corp. (a) | 26,100 | 790,047 | |
6,854,881 | |||
FINANCIALS - 4.2% | |||
Banks - 0.3% | |||
HDFC Bank Ltd. sponsored ADR | 17,000 | 1,724,140 | |
Capital Markets - 1.9% | |||
Cboe Global Markets, Inc. | 20,900 | 2,249,258 | |
Charles Schwab Corp. | 101,900 | 4,565,120 | |
Morningstar, Inc. | 1,100 | 129,954 | |
TD Ameritrade Holding Corp. | 80,000 | 4,304,800 | |
Virtu Financial, Inc. Class A | 44,300 | 1,115,031 | |
12,364,163 | |||
Diversified Financial Services - 0.8% | |||
GDS Holdings Ltd. ADR (a)(b) | 171,200 | 5,048,688 | |
Thrifts & Mortgage Finance - 1.2% | |||
LendingTree, Inc. (a)(b) | 28,500 | 7,419,690 | |
TOTAL FINANCIALS | 26,556,681 | ||
HEALTH CARE - 12.0% | |||
Biotechnology - 5.9% | |||
ACADIA Pharmaceuticals, Inc. (a) | 31,646 | 603,173 | |
Acceleron Pharma, Inc. (a) | 10,006 | 529,618 | |
Acorda Therapeutics, Inc. (a) | 32,207 | 657,989 | |
Agios Pharmaceuticals, Inc. (a) | 8,000 | 526,400 | |
Alexion Pharmaceuticals, Inc. (a) | 58,800 | 7,241,220 | |
Allakos, Inc. (a) | 9,300 | 547,863 | |
Alnylam Pharmaceuticals, Inc. (a) | 16,677 | 1,353,505 | |
AnaptysBio, Inc. (a) | 12,900 | 962,082 | |
Array BioPharma, Inc. (a) | 24,800 | 395,064 | |
Ascendis Pharma A/S sponsored ADR (a) | 6,650 | 448,942 | |
Atara Biotherapeutics, Inc. (a) | 9,100 | 363,545 | |
Audentes Therapeutics, Inc. (a) | 11,500 | 281,175 | |
BeiGene Ltd. | 26,000 | 286,452 | |
bluebird bio, Inc. (a) | 11,300 | 1,388,657 | |
Blueprint Medicines Corp. (a) | 4,800 | 275,376 | |
Coherus BioSciences, Inc. (a) | 74,100 | 819,546 | |
Crinetics Pharmaceuticals, Inc. (a) | 13,700 | 478,678 | |
Epizyme, Inc. (a) | 21,200 | 157,304 | |
FibroGen, Inc. (a) | 14,900 | 646,064 | |
Five Prime Therapeutics, Inc. (a) | 22,000 | 282,480 | |
Insmed, Inc. (a) | 89,900 | 1,610,109 | |
Intercept Pharmaceuticals, Inc. (a) | 6,800 | 754,188 | |
Ionis Pharmaceuticals, Inc. (a) | 60,756 | 3,541,467 | |
La Jolla Pharmaceutical Co. (a) | 14,040 | 203,159 | |
Mirati Therapeutics, Inc. (a) | 23,100 | 891,429 | |
Neurocrine Biosciences, Inc. (a) | 26,755 | 2,361,664 | |
Regeneron Pharmaceuticals, Inc. (a) | 2,392 | 874,635 | |
Rigel Pharmaceuticals, Inc. (a) | 181,900 | 514,777 | |
Sage Therapeutics, Inc. (a) | 7,300 | 841,617 | |
Sarepta Therapeutics, Inc. (a) | 21,700 | 2,809,499 | |
Sienna Biopharmaceuticals, Inc. (a) | 10,300 | 104,133 | |
Spark Therapeutics, Inc. (a) | 21,200 | 893,156 | |
TESARO, Inc. (a)(b) | 23,500 | 1,089,930 | |
Vertex Pharmaceuticals, Inc. (a) | 11,700 | 2,115,243 | |
Xencor, Inc. (a) | 21,500 | 903,215 | |
37,753,354 | |||
Health Care Equipment & Supplies - 2.4% | |||
Becton, Dickinson & Co. | 6,600 | 1,668,150 | |
Boston Scientific Corp. (a) | 202,800 | 7,639,476 | |
Insulet Corp. (a) | 22,000 | 1,846,460 | |
Intuitive Surgical, Inc. (a) | 800 | 424,696 | |
Novocure Ltd. (a) | 51,200 | 1,757,184 | |
Penumbra, Inc. (a) | 12,000 | 1,670,640 | |
Wright Medical Group NV (a) | 13,900 | 388,644 | |
15,395,250 | |||
Health Care Providers & Services - 2.7% | |||
Cigna Corp. | 8,500 | 1,898,730 | |
Elanco Animal Health, Inc. | 3,200 | 106,912 | |
G1 Therapeutics, Inc. (a) | 15,100 | 577,273 | |
Henry Schein, Inc. (a) | 5,800 | 517,360 | |
Humana, Inc. | 14,000 | 4,612,580 | |
OptiNose, Inc. (a) | 13,923 | 109,574 | |
UnitedHealth Group, Inc. | 32,400 | 9,116,064 | |
16,938,493 | |||
Pharmaceuticals - 1.0% | |||
Akcea Therapeutics, Inc. (a) | 52,800 | 1,789,392 | |
AstraZeneca PLC sponsored ADR | 1,600 | 63,712 | |
Nabriva Therapeutics PLC (a) | 231,200 | 471,648 | |
Nektar Therapeutics (a) | 53,369 | 2,155,574 | |
Perrigo Co. PLC | 4,600 | 286,488 | |
TherapeuticsMD, Inc. (a)(b) | 58,400 | 293,752 | |
Theravance Biopharma, Inc. (a) | 37,400 | 1,032,614 | |
6,093,180 | |||
TOTAL HEALTH CARE | 76,180,277 | ||
INDUSTRIALS - 3.9% | |||
Aerospace & Defense - 0.0% | |||
The Boeing Co. | 300 | 104,028 | |
Air Freight & Logistics - 0.1% | |||
FedEx Corp. | 2,800 | 641,200 | |
Airlines - 1.2% | |||
JetBlue Airways Corp. (a) | 13,500 | 263,520 | |
Southwest Airlines Co. | 12,800 | 699,008 | |
Spirit Airlines, Inc. (a) | 101,900 | 6,533,828 | |
7,496,356 | |||
Commercial Services & Supplies - 0.2% | |||
HomeServe PLC | 37,100 | 449,346 | |
Tomra Systems ASA | 30,400 | 825,890 | |
1,275,236 | |||
Electrical Equipment - 0.5% | |||
Sunrun, Inc. (a) | 217,400 | 3,184,910 | |
Machinery - 0.0% | |||
Deere & Co. | 1,000 | 154,880 | |
Professional Services - 0.8% | |||
CoStar Group, Inc. (a) | 8,400 | 3,102,876 | |
TransUnion Holding Co., Inc. | 31,900 | 2,059,783 | |
5,162,659 | |||
Trading Companies & Distributors - 1.1% | |||
Bunzl PLC | 212,400 | 6,538,921 | |
Watsco, Inc. | 1,700 | 261,290 | |
6,800,211 | |||
TOTAL INDUSTRIALS | 24,819,480 | ||
INFORMATION TECHNOLOGY - 35.7% | |||
Communications Equipment - 1.1% | |||
Carvana Co. Class A (a)(b) | 166,000 | 7,186,140 | |
Electronic Equipment & Components - 0.3% | |||
SYNNEX Corp. | 800 | 64,592 | |
TTM Technologies, Inc. (a) | 137,900 | 1,639,631 | |
1,704,223 | |||
Internet Software & Services - 0.8% | |||
ANGI Homeservices, Inc. Class A (a) | 99,300 | 1,740,729 | |
CarGurus, Inc. Class A (a) | 79,200 | 3,081,672 | |
4,822,401 | |||
IT Services - 8.6% | |||
Accenture PLC Class A | 1,300 | 213,876 | |
Adyen BV | 1,349 | 698,008 | |
Alliance Data Systems Corp. | 31,800 | 6,371,448 | |
Elastic NV | 600 | 42,870 | |
EPAM Systems, Inc. (a) | 9,600 | 1,250,400 | |
First Data Corp. Class A (a) | 19,300 | 368,244 | |
Global Payments, Inc. | 42,400 | 4,740,744 | |
GoDaddy, Inc. (a) | 51,900 | 3,386,994 | |
Interxion Holding N.V. (a) | 900 | 56,043 | |
Luxoft Holding, Inc. (a) | 109,499 | 3,615,657 | |
MasterCard, Inc. Class A | 32,400 | 6,514,668 | |
MongoDB, Inc. Class A (a)(b) | 15,500 | 1,284,950 | |
Netcompany Group A/S | 7,500 | 247,328 | |
Okta, Inc. (a) | 9,200 | 585,580 | |
PayPal Holdings, Inc. (a) | 44,100 | 3,784,221 | |
Visa, Inc. Class A | 65,700 | 9,310,347 | |
Wix.com Ltd. (a) | 113,169 | 10,658,256 | |
Worldpay, Inc. (a) | 17,200 | 1,475,932 | |
54,605,566 | |||
Semiconductors & Semiconductor Equipment - 5.9% | |||
Analog Devices, Inc. | 30,300 | 2,785,176 | |
Applied Materials, Inc. | 94,100 | 3,508,048 | |
Broadcom, Inc. | 30,900 | 7,335,969 | |
Lam Research Corp. | 21,600 | 3,390,336 | |
Marvell Technology Group Ltd. | 162,000 | 2,609,820 | |
Micron Technology, Inc. (a) | 120,100 | 4,631,056 | |
NVIDIA Corp. | 52,900 | 8,645,447 | |
NXP Semiconductors NV | 32,500 | 2,709,525 | |
ON Semiconductor Corp. (a) | 95,300 | 1,827,854 | |
Semtech Corp. (a) | 1,300 | 69,342 | |
37,512,573 | |||
Software - 14.6% | |||
Adobe, Inc. (a) | 32,000 | 8,028,480 | |
Autodesk, Inc. (a) | 35,600 | 5,144,200 | |
Avalara, Inc. (b) | 3,835 | 122,682 | |
Citrix Systems, Inc. | 27,300 | 2,974,881 | |
Cloudera, Inc. (a) | 40,600 | 501,004 | |
DocuSign, Inc. | 1,800 | 75,168 | |
Dropbox, Inc. Class A (a) | 66,700 | 1,560,113 | |
Intuit, Inc. | 8,500 | 1,823,505 | |
Microsoft Corp. | 283,760 | 31,466,146 | |
Nutanix, Inc. Class A (a) | 21,800 | 974,678 | |
Parametric Technology Corp. (a) | 40,300 | 3,485,547 | |
Q2 Holdings, Inc. (a) | 3,600 | 195,444 | |
RingCentral, Inc. (a) | 8,300 | 688,070 | |
Salesforce.com, Inc. (a) | 94,448 | 13,483,396 | |
ServiceNow, Inc. (a) | 26,300 | 4,872,601 | |
Splunk, Inc. (a) | 700 | 78,211 | |
SurveyMonkey | 1,600 | 22,848 | |
The Trade Desk, Inc. (a) | 79,100 | 11,267,795 | |
Workday, Inc. Class A (a) | 29,800 | 4,887,200 | |
Zscaler, Inc. (a) | 1,300 | 51,038 | |
Zuora, Inc. | 56,200 | 1,069,486 | |
92,772,493 | |||
Technology Hardware, Storage & Peripherals - 4.4% | |||
Apple, Inc. | 158,500 | 28,304,930 | |
TOTAL INFORMATION TECHNOLOGY | 226,908,326 | ||
MATERIALS - 1.5% | |||
Chemicals - 1.5% | |||
LG Chemical Ltd. | 9,531 | 2,939,356 | |
LyondellBasell Industries NV Class A | 33,200 | 3,097,892 | |
The Chemours Co. LLC | 116,600 | 3,320,768 | |
9,358,016 | |||
Containers & Packaging - 0.0% | |||
Crown Holdings, Inc. (a) | 2,800 | 143,584 | |
TOTAL MATERIALS | 9,501,600 | ||
REAL ESTATE - 2.1% | |||
Equity Real Estate Investment Trusts (REITs) - 2.1% | |||
American Tower Corp. | 69,600 | 11,448,504 | |
Equinix, Inc. | 4,400 | 1,695,232 | |
13,143,736 | |||
TOTAL COMMON STOCKS | |||
(Cost $388,966,165) | 574,881,456 | ||
Preferred Stocks - 6.6% | |||
Convertible Preferred Stocks - 6.6% | |||
COMMUNICATION SERVICES - 0.4% | |||
Interactive Media & Services - 0.4% | |||
Uber Technologies, Inc. Series D, 8.00% (a)(c)(d) | 55,193 | 2,691,763 | |
CONSUMER DISCRETIONARY - 0.0% | |||
Hotels, Restaurants & Leisure - 0.0% | |||
Neutron Holdings, Inc. Series C (c)(d) | 1,387,600 | 253,709 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (c)(d) | 354 | 19,412 | |
Series B (c)(d) | 62 | 3,400 | |
Series C (c)(d) | 596 | 32,682 | |
55,494 | |||
TOTAL CONSUMER DISCRETIONARY | 309,203 | ||
CONSUMER STAPLES - 5.6% | |||
Tobacco - 5.6% | |||
JUUL Labs, Inc.: | |||
Series C (a)(c)(d)(e) | 164,123 | 35,286,444 | |
Series D (c)(d) | 938 | 201,670 | |
35,488,114 | |||
FINANCIALS - 0.1% | |||
Insurance - 0.1% | |||
Clover Health Series D (a)(c)(d) | 67,979 | 637,493 | |
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series I (c)(d) | 3,290 | 556,010 | |
INFORMATION TECHNOLOGY - 0.4% | |||
Internet Software & Services - 0.4% | |||
Lyft, Inc. Series I (c)(d) | 45,994 | 2,177,995 | |
Software - 0.0% | |||
Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 11,400 | 125,400 | |
TOTAL INFORMATION TECHNOLOGY | 2,303,395 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 41,985,978 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (c)(d) | 190 | 10,419 | |
TOTAL PREFERRED STOCKS | |||
(Cost $5,291,024) | 41,996,397 | ||
Money Market Funds - 5.9% | |||
Fidelity Securities Lending Cash Central Fund 2.27% (f)(g) | |||
(Cost $37,648,192) | 37,644,427 | 37,648,192 | |
TOTAL INVESTMENT IN SECURITIES - 102.9% | |||
(Cost $431,905,381) | 654,526,045 | ||
NET OTHER ASSETS (LIABILITIES) - (2.9)% | (18,182,660) | ||
NET ASSETS - 100% | $636,343,385 |
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 $42,198,075 or 6.6% of net assets.
(d) Level 3 security
(e) A portion of the security sold on a delayed delivery basis.
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Allbirds, Inc. | 10/9/18 | $49,243 |
Allbirds, Inc. | 10/9/18 | $10,419 |
Allbirds, Inc. Series A | 10/9/18 | $19,412 |
Allbirds, Inc. Series B | 10/9/18 | $3,400 |
Allbirds, Inc. Series C | 10/9/18 | $32,682 |
Cloudflare, Inc. Series D, 8.00% | 9/10/18 | $125,400 |
Clover Health Series D | 6/7/17 | $637,493 |
JUUL Labs, Inc. | 11/21/17 | $2,198 |
JUUL Labs, Inc. Series C | 5/22/15 | $510,422 |
JUUL Labs, Inc. Series D | 6/25/18 | $107,870 |
Lyft, Inc. Series I | 6/27/18 | $2,177,995 |
Neutron Holdings, Inc. Series C | 7/3/18 | $253,709 |
Space Exploration Technologies Corp. Series I | 4/5/18 | $556,010 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $856,212 |
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 | $35,643 |
Fidelity Securities Lending Cash Central Fund | 524,962 |
Total | $560,605 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $100,865,468 | $98,173,705 | $-- | $2,691,763 |
Consumer Discretionary | 87,840,440 | 87,471,575 | -- | 368,865 |
Consumer Staples | 40,710,066 | 5,069,517 | -- | 35,640,549 |
Energy | 6,854,881 | 6,854,881 | -- | -- |
Financials | 27,194,174 | 26,556,681 | -- | 637,493 |
Health Care | 76,180,277 | 76,180,277 | -- | -- |
Industrials | 25,375,490 | 24,819,480 | -- | 556,010 |
Information Technology | 229,211,721 | 226,908,326 | -- | 2,303,395 |
Materials | 9,501,600 | 9,501,600 | -- | -- |
Real Estate | 13,143,736 | 13,143,736 | -- | -- |
Money Market Funds | 37,648,192 | 37,648,192 | -- | -- |
Total Investments in Securities: | $654,526,045 | $612,327,970 | $-- | $42,198,075 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Equities - Consumer Staples | |
Beginning Balance | $5,875,407 |
Net Realized Gain (Loss) on Investment Securities | 23,239,993 |
Net Unrealized Gain (Loss) on Investment Securities | 30,198,854 |
Cost of Purchases | 107,870 |
Proceeds of Sales | (23,781,575) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $35,640,549 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $30,371,002 |
Other Investments in Securities | |
Beginning Balance | $2,563,513 |
Net Realized Gain (Loss) on Investment Securities | 12,279 |
Net Unrealized Gain (Loss) on Investment Securities | 773,546 |
Cost of Purchases | 3,228,270 |
Proceeds of Sales | (20,082) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $6,557,526 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $773,546 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.6% |
Cayman Islands | 3.3% |
Israel | 1.7% |
United Kingdom | 1.5% |
India | 1.2% |
Netherlands | 1.0% |
Others (Individually Less Than 1%) | 2.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $36,786,809) — See accompanying schedule: Unaffiliated issuers (cost $394,257,189) | $616,877,853 | |
Fidelity Central Funds (cost $37,648,192) | 37,648,192 | |
Total Investment in Securities (cost $431,905,381) | $654,526,045 | |
Foreign currency held at value (cost $195) | 194 | |
Receivable for securities sold on a delayed delivery basis | 23,461,875 | |
Receivable for fund shares sold | 27,877 | |
Dividends receivable | 344,873 | |
Distributions receivable from Fidelity Central Funds | 29,260 | |
Total assets | 678,390,124 | |
Liabilities | ||
Payable to custodian bank | $912,423 | |
Payable for investments purchased | 2,432,496 | |
Payable for fund shares redeemed | 963,559 | |
Other payables and accrued expenses | 88,326 | |
Collateral on securities loaned | 37,649,935 | |
Total liabilities | 42,046,739 | |
Net Assets | $636,343,385 | |
Net Assets consist of: | ||
Paid in capital | $299,462,316 | |
Total distributable earnings (loss) | 336,881,069 | |
Net Assets, for 41,165,443 shares outstanding | $636,343,385 | |
Net Asset Value, offering price and redemption price per share ($636,343,385 ÷ 41,165,443 shares) | $15.46 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2018 | ||
Investment Income | ||
Dividends | $3,994,403 | |
Income from Fidelity Central Funds (including $524,962 from security lending) | 560,605 | |
Total income | 4,555,008 | |
Expenses | ||
Custodian fees and expenses | $52,988 | |
Independent trustees' fees and expenses | 3,337 | |
Interest | 1,447 | |
Commitment fees | 1,755 | |
Total expenses before reductions | 59,527 | |
Expense reductions | (21,073) | |
Total expenses after reductions | 38,454 | |
Net investment income (loss) | 4,516,554 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $46,594) | 110,610,140 | |
Fidelity Central Funds | (233) | |
Foreign currency transactions | (29,445) | |
Total net realized gain (loss) | 110,580,462 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $35,113) | 23,087,227 | |
Assets and liabilities in foreign currencies | (1,470) | |
Total change in net unrealized appreciation (depreciation) | 23,085,757 | |
Net gain (loss) | 133,666,219 | |
Net increase (decrease) in net assets resulting from operations | $138,182,773 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $4,516,554 | $4,329,238 |
Net realized gain (loss) | 110,580,462 | 54,829,929 |
Change in net unrealized appreciation (depreciation) | 23,085,757 | 126,039,175 |
Net increase (decrease) in net assets resulting from operations | 138,182,773 | 185,198,342 |
Distributions to shareholders | (57,776,852) | – |
Distributions to shareholders from net investment income | – | (2,032,804) |
Distributions to shareholders from net realized gain | – | (19,503,931) |
Total distributions | (57,776,852) | (21,536,735) |
Share transactions | ||
Proceeds from sales of shares | 48,085,779 | 44,288,542 |
Reinvestment of distributions | 57,776,852 | 21,536,735 |
Cost of shares redeemed | (168,412,313) | (201,987,626) |
Net increase (decrease) in net assets resulting from share transactions | (62,549,682) | (136,162,349) |
Total increase (decrease) in net assets | 17,856,239 | 27,499,258 |
Net Assets | ||
Beginning of period | 618,487,146 | 590,987,888 |
End of period | $636,343,385 | $618,487,146 |
Other Information | ||
Undistributed net investment income end of period | $4,069,411 | |
Shares | ||
Sold | 3,387,118 | 3,681,047 |
Issued in reinvestment of distributions | 4,527,966 | 2,060,932 |
Redeemed | (11,384,837) | (16,754,045) |
Net increase (decrease) | (3,469,753) | (11,012,066) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Series Growth Opportunities Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $13.86 | $10.62 | $12.23 | $11.79 | $10.23 |
Income from Investment Operations | |||||
Net investment income (loss)A | .10 | .09 | .05 | .05B | .02 |
Net realized and unrealized gain (loss) | 2.83 | 3.54 | (.32) | .60 | 1.56 |
Total from investment operations | 2.93 | 3.63 | (.27) | .65 | 1.58 |
Distributions from net investment income | (.11) | (.04) | (.07) | (.02) | –C |
Distributions from net realized gain | (1.22) | (.36) | (1.27) | (.20) | (.02) |
Total distributions | (1.33) | (.39)D | (1.34) | (.21)E | (.02) |
Net asset value, end of period | $15.46 | $13.86 | $10.62 | $12.23 | $11.79 |
Total ReturnF | 23.13% | 35.40% | (2.09)% | 5.71% | 15.51% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .01% | .31% | .62% | .74% | .77% |
Expenses net of fee waivers, if any | .01% | .31% | .62% | .74% | .77% |
Expenses net of all reductions | .01% | .30% | .61% | .74% | .77% |
Net investment income (loss) | .69% | .71% | .45% | .44%B | .16% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $636,343 | $618,487 | $590,988 | $633,109 | $974,463 |
Portfolio turnover rateI | 47% | 50% | 67% | 50% | 16% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
C Amount represents less than $.005 per share.
D Total distributions of $.39 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.355 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 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 Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $ 42,198,075 | Market approach | Transaction price | $0.18-$215.00/$189.70 | 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, 2018, 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 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.
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, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income 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, certain foreign taxes, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $241,705,639 |
Gross unrealized depreciation | (20,604,313) |
Net unrealized appreciation (depreciation) | $221,101,326 |
Tax Cost | $433,424,719 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $13,674,771 |
Undistributed long-term capital gain | $102,172,964 |
Net unrealized appreciation (depreciation) on securities and other investments | $221,101,131 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $18,314,172 | $ 2,032,804 |
Long-term Capital Gains | 39,462,680 | 19,503,931 |
Total | $57,776,852 | $ 21,536,735 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $303,966,528 and $439,490,419, 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 does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $7,040 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 | $10,617,333 | 1.64% | $1,447 |
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 $1,755 and is reflected in Commitment fees 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 $293,249. 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 $36,341 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $21,073 for the period.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Series Growth Opportunities Fund:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 17, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Actual | .01% | $1,000.00 | $1,094.10 | $.05 |
Hypothetical-C | $1,000.00 | $1,025.02 | $.05 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Series Growth Opportunities Fund voted to pay on December 20, 2018, to shareholders of record at the opening of business on December 19, 2018, a distribution of $2.753 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.108 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $102,216,623, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 19% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 27% of the dividends distributed 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Series Growth Opportunities Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders, including the expense cap arrangement currently in place for the fund; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
AXS3-ANN-0119
1.967930.105
Fidelity Advisor® Series Small Cap Fund Annual Report November 30, 2018 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Life of fundA |
Fidelity Advisor® Series Small Cap Fund | (4.02)% | 5.21% | 5.94% |
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/0001379491-19-000231/img446436181_740.jpg)
Period Ending Values | ||
$13,395 | Fidelity Advisor® Series Small Cap Fund | |
$15,221 | Russell 2000® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Co-Portfolio Manager Jamie Harmon: For the fiscal year, the fund returned -4.02%, trailing the 0.57% gain of the benchmark Russell 2000® Index. Relative to the benchmark, stock selection was weakest in the consumer staples, financials, consumer discretionary, industrials and information technology sectors. Conversely, picks within health care were strong, as was the fund’s positioning in energy though to a much lesser extent. Turning to individual stocks, our biggest relative detractor was Synnex, a technology distributor and provider of business process outsourcing services. In consumer staples, household products company Spectrum Brands and organic-foods company Hain Celestial Group, both experienced some business-execution missteps this period. As a result, in May, we sold our out-of-index stake in the latter stock from the fund. Other key detractors included timeshare property owner Marriott Vacations World and wallboard distributor GMS. In contrast, the fund's top contributor was Encompass Health, which generated good financial results and continued to execute well. A position in Bioverativ, an out-of-index biotechnology stock, also contributed, thanks to an acquisition that closed during the period. Consequently, we sold the fund's position in March. Also contributing was Stamps.com, an internet-based provider of postage solutions for e-retailers.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 June 30, 2018, Jennifer Fo Cardillo assumed co-management responsibilities, joining Jamie Harmon. The two will manage the fund together until June 30, 2019, at which point Jamie plans to retire and Jennifer will become sole Portfolio Manager.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Cushman & Wakefield PLC | 2.3 |
LivaNova PLC | 2.0 |
Dorman Products, Inc. | 2.0 |
SYNNEX Corp. | 1.9 |
Essent Group Ltd. | 1.8 |
Hilton Grand Vacations, Inc. | 1.8 |
LPL Financial | 1.7 |
Grand Canyon Education, Inc. | 1.7 |
Generac Holdings, Inc. | 1.7 |
IIT, Inc | 1.6 |
18.5 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Industrials | 18.6 |
Health Care | 16.0 |
Information Technology | 14.7 |
Financials | 14.3 |
Consumer Discretionary | 12.6 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018 * | ||
Stocks and Equity Futures | 96.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.3% |
* Foreign investments - 16.1%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 92.8% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 2.1% | |||
Interactive Media & Services - 0.3% | |||
Care.com, Inc. (a) | 59,000 | $1,057,280 | |
Media - 1.4% | |||
The New York Times Co. Class A | 234,300 | 6,286,269 | |
Wireless Telecommunication Services - 0.4% | |||
Boingo Wireless, Inc. (a) | 75,200 | 1,883,008 | |
TOTAL COMMUNICATION SERVICES | 9,226,557 | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Auto Components - 2.0% | |||
Dorman Products, Inc. (a) | 98,800 | 8,680,568 | |
Diversified Consumer Services - 1.7% | |||
Grand Canyon Education, Inc. (a) | 60,000 | 7,341,600 | |
Hotels, Restaurants & Leisure - 3.3% | |||
Hilton Grand Vacations, Inc. (a) | 249,256 | 7,991,147 | |
Marriott Vacations Worldwide Corp. | 42,750 | 3,471,300 | |
Planet Fitness, Inc. (a) | 37,500 | 2,070,750 | |
YETI Holdings, Inc. | 63,700 | 1,072,708 | |
14,605,905 | |||
Household Durables - 2.1% | |||
Cavco Industries, Inc. (a) | 11,700 | 1,925,352 | |
Helen of Troy Ltd. (a) | 7,252 | 1,037,254 | |
TopBuild Corp. (a) | 105,100 | 5,354,845 | |
TRI Pointe Homes, Inc. (a) | 96,200 | 1,200,576 | |
9,518,027 | |||
Internet & Direct Marketing Retail - 0.9% | |||
Stamps.com, Inc. (a) | 23,500 | 4,029,310 | |
Leisure Products - 0.8% | |||
Brunswick Corp. | 17,800 | 944,112 | |
Polaris Industries, Inc. | 25,050 | 2,429,850 | |
3,373,962 | |||
Specialty Retail - 0.8% | |||
Boot Barn Holdings, Inc. (a) | 83,900 | 1,899,496 | |
The Children's Place Retail Stores, Inc. | 14,000 | 1,814,960 | |
3,714,456 | |||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Carter's, Inc. | 12,100 | 1,119,250 | |
G-III Apparel Group Ltd. (a) | 78,450 | 3,144,276 | |
4,263,526 | |||
TOTAL CONSUMER DISCRETIONARY | 55,527,354 | ||
CONSUMER STAPLES - 3.3% | |||
Food & Staples Retailing - 1.3% | |||
BJ's Wholesale Club Holdings, Inc. | 246,820 | 5,765,715 | |
Food Products - 1.2% | |||
Nomad Foods Ltd. (a) | 245,100 | 4,955,922 | |
Household Products - 0.8% | |||
Spectrum Brands Holdings, Inc. | 73,040 | 3,606,715 | |
TOTAL CONSUMER STAPLES | 14,328,352 | ||
ENERGY - 2.3% | |||
Energy Equipment & Services - 0.8% | |||
Hess Midstream Partners LP | 184,599 | 3,555,377 | |
Oil, Gas & Consumable Fuels - 1.5% | |||
Alliance Resource Partners LP | 135,100 | 2,654,715 | |
Noble Midstream Partners LP | 94,923 | 3,144,799 | |
Par Pacific Holdings, Inc. (a) | 58,059 | 982,358 | |
6,781,872 | |||
TOTAL ENERGY | 10,337,249 | ||
FINANCIALS - 14.3% | |||
Banks - 6.9% | |||
Allegiance Bancshares, Inc. (a) | 152,797 | 5,795,590 | |
Cadence Bancorp Class A | 156,900 | 3,218,019 | |
ConnectOne Bancorp, Inc. | 221,676 | 4,464,555 | |
CVB Financial Corp. | 61,000 | 1,417,640 | |
First Citizen Bancshares, Inc. | 3,200 | 1,374,304 | |
First Interstate Bancsystem, Inc. | 42,600 | 1,850,118 | |
Independent Bank Corp., Massachusetts | 28,600 | 2,298,582 | |
Old National Bancorp, Indiana | 111,200 | 2,082,776 | |
ServisFirst Bancshares, Inc. | 162,400 | 6,393,688 | |
Skandiabanken ASA (b) | 64,509 | 647,728 | |
Trico Bancshares | 20,100 | 772,845 | |
30,315,845 | |||
Capital Markets - 2.2% | |||
Blucora, Inc. (a) | 74,800 | 2,315,808 | |
LPL Financial | 118,700 | 7,616,979 | |
9,932,787 | |||
Consumer Finance - 0.6% | |||
First Cash Financial Services, Inc. | 29,100 | 2,591,355 | |
Insurance - 2.5% | |||
Enstar Group Ltd. (a) | 25,076 | 4,417,639 | |
Hastings Group Holdings PLC (b) | 1,498,334 | 3,648,581 | |
Primerica, Inc. | 23,700 | 2,817,456 | |
10,883,676 | |||
Thrifts & Mortgage Finance - 2.1% | |||
Essent Group Ltd. (a) | 211,900 | 8,170,864 | |
WSFS Financial Corp. | 32,900 | 1,384,103 | |
9,554,967 | |||
TOTAL FINANCIALS | 63,278,630 | ||
HEALTH CARE - 16.0% | |||
Biotechnology - 1.8% | |||
Allakos, Inc. (a) | 6,400 | 377,024 | |
Array BioPharma, Inc. (a) | 50,200 | 799,686 | |
Atara Biotherapeutics, Inc. (a) | 15,600 | 623,220 | |
Audentes Therapeutics, Inc. (a) | 9,000 | 220,050 | |
FibroGen, Inc. (a) | 15,700 | 680,752 | |
Heron Therapeutics, Inc. (a) | 21,800 | 626,314 | |
Kezar Life Sciences, Inc. | 16,700 | 495,656 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 3,700 | 583,749 | |
Mirati Therapeutics, Inc. (a) | 10,100 | 389,759 | |
Swedish Orphan Biovitrum AB (a) | 155,500 | 3,358,137 | |
8,154,347 | |||
Health Care Equipment & Supplies - 3.4% | |||
Avanos Medical, Inc. (a) | 49,600 | 2,366,416 | |
Integra LifeSciences Holdings Corp. (a) | 39,800 | 2,134,474 | |
Interojo Co. Ltd. | 3,271 | 61,607 | |
LivaNova PLC (a) | 86,300 | 8,732,697 | |
Merit Medical Systems, Inc. (a) | 25,200 | 1,588,860 | |
14,884,054 | |||
Health Care Providers & Services - 5.1% | |||
Addus HomeCare Corp. (a) | 55,942 | 4,152,015 | |
AMN Healthcare Services, Inc. (a) | 85,550 | 5,449,535 | |
Amplifon SpA | 50,578 | 846,293 | |
Chemed Corp. | 5,100 | 1,615,578 | |
Encompass Health Corp. | 57,000 | 4,286,970 | |
G1 Therapeutics, Inc. (a) | 11,400 | 435,822 | |
LHC Group, Inc. (a) | 38,324 | 4,019,038 | |
Premier, Inc. (a) | 47,841 | 1,897,374 | |
22,702,625 | |||
Life Sciences Tools & Services - 4.0% | |||
Charles River Laboratories International, Inc. (a) | 51,400 | 6,931,290 | |
ICON PLC (a) | 44,200 | 6,396,624 | |
PRA Health Sciences, Inc. (a) | 36,300 | 4,237,662 | |
17,565,576 | |||
Pharmaceuticals - 1.7% | |||
Huons Co. Ltd. | 4,063 | 264,024 | |
Korea United Pharm, Inc. | 43,940 | 935,436 | |
Supernus Pharmaceuticals, Inc. (a) | 123,600 | 5,861,112 | |
Zogenix, Inc. (a) | 10,100 | 415,009 | |
7,475,581 | |||
TOTAL HEALTH CARE | 70,782,183 | ||
INDUSTRIALS - 18.6% | |||
Aerospace & Defense - 1.2% | |||
Wesco Aircraft Holdings, Inc. (a) | 565,200 | 5,380,704 | |
Air Freight & Logistics - 0.3% | |||
C.H. Robinson Worldwide, Inc. | 12,200 | 1,126,426 | |
Building Products - 2.3% | |||
Armstrong World Industries, Inc. | 34,300 | 2,297,757 | |
Gibraltar Industries, Inc. (a) | 105,000 | 3,796,800 | |
GMS, Inc. (a) | 224,100 | 4,210,839 | |
10,305,396 | |||
Commercial Services & Supplies - 0.5% | |||
Coor Service Management Holding AB (b) | 263,300 | 2,082,417 | |
Construction & Engineering - 1.0% | |||
Argan, Inc. | 21,000 | 912,870 | |
EMCOR Group, Inc. | 46,300 | 3,373,418 | |
4,286,288 | |||
Electrical Equipment - 1.7% | |||
Generac Holdings, Inc. (a) | 128,700 | 7,325,604 | |
Industrial Conglomerates - 1.6% | |||
ITT, Inc. | 128,200 | 7,108,690 | |
Machinery - 5.3% | |||
Cactus, Inc. (a) | 156,700 | 4,525,496 | |
Crane Co. | 26,800 | 2,314,716 | |
Douglas Dynamics, Inc. | 29,900 | 1,114,373 | |
Gardner Denver Holdings, Inc. (a) | 204,300 | 5,056,425 | |
Hy-Lok Corp. | 57,503 | 862,314 | |
Luxfer Holdings PLC sponsored | 89,900 | 2,066,801 | |
Oshkosh Corp. | 79,600 | 5,677,868 | |
Rexnord Corp. (a) | 69,500 | 1,967,545 | |
23,585,538 | |||
Professional Services - 3.5% | |||
Asgn, Inc. (a) | 93,900 | 6,502,575 | |
FTI Consulting, Inc. (a) | 10,600 | 744,650 | |
ICF International, Inc. | 81,076 | 5,677,752 | |
Navigant Consulting, Inc. | 56,900 | 1,457,778 | |
Stantec, Inc. | 47,900 | 1,141,395 | |
15,524,150 | |||
Trading Companies & Distributors - 1.2% | |||
Univar, Inc. (a) | 252,800 | 5,475,648 | |
TOTAL INDUSTRIALS | 82,200,861 | ||
INFORMATION TECHNOLOGY - 14.7% | |||
Communications Equipment - 0.7% | |||
Finisar Corp. (a) | 79,550 | 1,857,493 | |
InterDigital, Inc. | 14,800 | 1,113,848 | |
2,971,341 | |||
Electronic Equipment & Components - 5.0% | |||
CDW Corp. | 69,200 | 6,413,456 | |
Control4 Corp. (a) | 118,700 | 2,584,099 | |
ePlus, Inc. (a) | 54,613 | 4,464,613 | |
SYNNEX Corp. | 106,113 | 8,567,564 | |
22,029,732 | |||
Internet Software & Services - 0.4% | |||
CarGurus, Inc. Class A (a) | 47,100 | 1,832,661 | |
IT Services - 4.8% | |||
Booz Allen Hamilton Holding Corp. Class A | 121,500 | 6,234,165 | |
Conduent, Inc. (a) | 507,100 | 6,501,022 | |
Euronet Worldwide, Inc. (a) | 23,800 | 2,799,118 | |
EVERTEC, Inc. | 39,113 | 1,068,958 | |
Genpact Ltd. | 117,800 | 3,578,764 | |
Hackett Group, Inc. | 59,200 | 1,044,880 | |
21,226,907 | |||
Semiconductors & Semiconductor Equipment - 0.7% | |||
Entegris, Inc. | 77,200 | 2,269,680 | |
Rudolph Technologies, Inc. (a) | 30,304 | 643,051 | |
2,912,731 | |||
Software - 3.1% | |||
j2 Global, Inc. | 64,500 | 4,760,745 | |
Nuance Communications, Inc. (a) | 123,900 | 1,981,161 | |
Pegasystems, Inc. | 24,800 | 1,338,952 | |
Proofpoint, Inc. (a) | 12,300 | 1,193,223 | |
PROS Holdings, Inc. (a) | 34,100 | 1,096,997 | |
RealPage, Inc. (a) | 14,500 | 747,910 | |
Zensar Technologies Ltd. | 792,035 | 2,529,054 | |
13,648,042 | |||
TOTAL INFORMATION TECHNOLOGY | 64,621,414 | ||
MATERIALS - 2.9% | |||
Chemicals - 1.8% | |||
Ashland Global Holdings, Inc. | 20,800 | 1,703,312 | |
Ferro Corp. (a) | 48,600 | 937,980 | |
Platform Specialty Products Corp. (a) | 437,600 | 5,150,552 | |
7,791,844 | |||
Containers & Packaging - 0.6% | |||
Aptargroup, Inc. | 25,400 | 2,642,870 | |
Paper & Forest Products - 0.5% | |||
Neenah, Inc. | 32,100 | 2,211,048 | |
TOTAL MATERIALS | 12,645,762 | ||
REAL ESTATE - 4.0% | |||
Equity Real Estate Investment Trusts (REITs) - 1.1% | |||
Americold Realty Trust | 76,200 | 2,042,160 | |
CoreSite Realty Corp. | 12,900 | 1,257,234 | |
EPR Properties | 18,700 | 1,324,521 | |
4,623,915 | |||
Real Estate Management & Development - 2.9% | |||
CBRE Group, Inc. (a) | 58,500 | 2,555,280 | |
Cushman & Wakefield PLC | 560,500 | 10,436,510 | |
12,991,790 | |||
TOTAL REAL ESTATE | 17,615,705 | ||
UTILITIES - 2.0% | |||
Gas Utilities - 1.2% | |||
Amerigas Partners LP | 45,700 | 1,698,212 | |
Star Gas Partners LP | 387,878 | 3,735,265 | |
5,433,477 | |||
Multi-Utilities - 0.8% | |||
Telecom Plus PLC | 198,900 | 3,462,104 | |
TOTAL UTILITIES | 8,895,581 | ||
TOTAL COMMON STOCKS | |||
(Cost $378,855,398) | 409,459,648 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.1% | |||
U.S. Treasury Bills, yield at date of purchase 2.33% to 2.34% 2/14/19 to 2/21/19 (c) | |||
(Cost $467,638) | 470,000 | 467,704 | |
Shares | Value | ||
Money Market Funds - 4.4% | |||
Fidelity Cash Central Fund, 2.27% (d) | |||
(Cost $19,446,214) | 19,442,326 | 19,446,214 | |
Equity Funds - 1.8% | |||
Small Blend Funds - 1.8% | |||
iShares Russell 2000 Index ETF | |||
(Cost $8,160,996) | 52,200 | 7,966,764 | |
TOTAL INVESTMENT IN SECURITIES - 99.1% | |||
(Cost $406,930,246) | 437,340,330 | ||
NET OTHER ASSETS (LIABILITIES) - 0.9% | 3,813,265 | ||
NET ASSETS - 100% | $441,153,595 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini Russell 2000 Index Contracts (United States) | 123 | Dec. 2018 | $9,437,790 | $4,352 | $4,352 |
The notional amount of futures purchased as a percentage of Net Assets is 2.1%
Security Type Abbreviations
ETF – Exchange-Traded Fund
Legend
(a) Non-income producing
(b) 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 $6,378,726 or 1.4% of net assets.
(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 $465,714.
(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.
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 | $410,029 |
Fidelity Securities Lending Cash Central Fund | 59,468 |
Total | $469,497 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $9,226,557 | $9,226,557 | $-- | $-- |
Consumer Discretionary | 55,527,354 | 55,527,354 | -- | -- |
Consumer Staples | 14,328,352 | 14,328,352 | -- | -- |
Energy | 10,337,249 | 10,337,249 | -- | -- |
Financials | 63,278,630 | 63,278,630 | -- | -- |
Health Care | 70,782,183 | 70,782,183 | -- | -- |
Industrials | 82,200,861 | 82,200,861 | -- | -- |
Information Technology | 64,621,414 | 64,621,414 | -- | -- |
Materials | 12,645,762 | 12,645,762 | -- | -- |
Real Estate | 17,615,705 | 17,615,705 | -- | -- |
Utilities | 8,895,581 | 8,895,581 | -- | -- |
U.S. Government and Government Agency Obligations | 467,704 | -- | 467,704 | -- |
Money Market Funds | 19,446,214 | 19,446,214 | -- | -- |
Equity Funds | 7,966,764 | 7,966,764 | -- | -- |
Total Investments in Securities: | $437,340,330 | $436,872,626 | $467,704 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $4,352 | $4,352 | $-- | $-- |
Total Assets | $4,352 | $4,352 | $-- | $-- |
Total Derivative Instruments: | $4,352 | $4,352 | $-- | $-- |
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, 2018. 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) | $4,352 | $0 |
Total Equity Risk | 4,352 | 0 |
Total Value of Derivatives | $4,352 | $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 on futures contracts, 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 | 83.9% |
United Kingdom | 6.4% |
Bermuda | 3.8% |
Ireland | 1.4% |
Sweden | 1.3% |
British Virgin Islands | 1.2% |
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
November 30, 2018 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $387,484,032) | $417,894,116 | |
Fidelity Central Funds (cost $19,446,214) | 19,446,214 | |
Total Investment in Securities (cost $406,930,246) | $437,340,330 | |
Cash | 72,371 | |
Foreign currency held at value (cost $35) | 35 | |
Receivable for investments sold | 375,317 | |
Receivable for fund shares sold | 4,687,100 | |
Dividends receivable | 282,617 | |
Distributions receivable from Fidelity Central Funds | 26,879 | |
Receivable for daily variation margin on futures contracts | 43,665 | |
Total assets | 442,828,314 | |
Liabilities | ||
Payable for investments purchased | $1,414,186 | |
Payable for fund shares redeemed | 219,299 | |
Other payables and accrued expenses | 41,234 | |
Total liabilities | 1,674,719 | |
Net Assets | $441,153,595 | |
Net Assets consist of: | ||
Paid in capital | $371,105,523 | |
Total distributable earnings (loss) | 70,048,072 | |
Net Assets, for 38,675,099 shares outstanding | $441,153,595 | |
Net Asset Value, offering price and redemption price per share ($441,153,595 ÷ 38,675,099 shares) | $11.41 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2018 | ||
Investment Income | ||
Dividends | $3,426,899 | |
Interest | 19,592 | |
Income from Fidelity Central Funds | 469,497 | |
Total income | 3,915,988 | |
Expenses | ||
Custodian fees and expenses | $31,438 | |
Independent trustees' fees and expenses | 2,426 | |
Commitment fees | 1,292 | |
Total expenses before reductions | 35,156 | |
Expense reductions | (25,430) | |
Total expenses after reductions | 9,726 | |
Net investment income (loss) | 3,906,262 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 35,656,438 | |
Fidelity Central Funds | (103) | |
Foreign currency transactions | (10,106) | |
Futures contracts | 855,273 | |
Total net realized gain (loss) | 36,501,502 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $41,442) | (57,139,117) | |
Assets and liabilities in foreign currencies | 16,773 | |
Futures contracts | (553,490) | |
Total change in net unrealized appreciation (depreciation) | (57,675,834) | |
Net gain (loss) | (21,174,332) | |
Net increase (decrease) in net assets resulting from operations | $(17,268,070) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,906,262 | $3,287,292 |
Net realized gain (loss) | 36,501,502 | 43,804,772 |
Change in net unrealized appreciation (depreciation) | (57,675,834) | 26,559,479 |
Net increase (decrease) in net assets resulting from operations | (17,268,070) | 73,651,543 |
Distributions to shareholders | (30,404,834) | – |
Distributions to shareholders from net investment income | – | (3,874,433) |
Total distributions | (30,404,834) | (3,874,433) |
Share transactions | ||
Proceeds from sales of shares | 56,560,740 | 39,758,702 |
Reinvestment of distributions | 30,404,834 | 3,874,433 |
Cost of shares redeemed | (61,234,443) | (101,683,132) |
Net increase (decrease) in net assets resulting from share transactions | 25,731,131 | (58,049,997) |
Total increase (decrease) in net assets | (21,941,773) | 11,727,113 |
Net Assets | ||
Beginning of period | 463,095,368 | 451,368,255 |
End of period | $441,153,595 | $463,095,368 |
Other Information | ||
Undistributed net investment income end of period | $1,479,308 | |
Shares | ||
Sold | 4,702,111 | 3,439,672 |
Issued in reinvestment of distributions | 2,567,976 | 347,795 |
Redeemed | (4,989,443) | (8,693,635) |
Net increase (decrease) | 2,280,644 | (4,906,168) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Series Small Cap Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $12.72 | $10.93 | $11.26 | $11.19 | $10.39 |
Income from Investment Operations | |||||
Net investment income (loss)A | .10 | .08 | .09B | .03C | .02 |
Net realized and unrealized gain (loss) | (.58) | 1.81 | .10 | .38 | .82 |
Total from investment operations | (.48) | 1.89 | .19 | .41 | .84 |
Distributions from net investment income | (.07) | (.10) | (.03) | (.02) | (.01) |
Distributions from net realized gain | (.76) | – | (.50) | (.32) | (.03) |
Total distributions | (.83) | (.10) | (.52)D | (.34) | (.04) |
Net asset value, end of period | $11.41 | $12.72 | $10.93 | $11.26 | $11.19 |
Total ReturnE | (4.02)% | 17.37% | 1.96% | 3.81% | 8.12% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .01% | .41% | .97% | 1.04% | .94% |
Expenses net of fee waivers, if any | .01% | .41% | .97% | 1.03% | .94% |
Expenses net of all reductions | - %H | .40% | .97% | 1.02% | .94% |
Net investment income (loss) | .83% | .72% | .85%B | .30%C | .16% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $441,154 | $463,095 | $451,368 | $483,566 | $517,827 |
Portfolio turnover rateI | 82% | 88% | 90% | 35% | 58% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .06%.
D 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.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Amount represents less than .005%.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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. ETFs are valued at their last 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 but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
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, 2018 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 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.
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, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income 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, partnership and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $60,772,529 |
Gross unrealized depreciation | (30,463,399) |
Net unrealized appreciation (depreciation) | $30,309,130 |
Tax Cost | $407,031,200 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $4,224,894 |
Undistributed long-term capital gain | $37,073,132 |
Net unrealized appreciation (depreciation) on securities and other investments | $28,791,488 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $2,604,033 | $ 3,874,433 |
Long-term Capital Gains | 27,800,801 | – |
Total | $30,404,834 | $ 3,874,433 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
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 on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $369,387,029 and $365,910,254, 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 does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
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 $15,988 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 $5,571.
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 $1,292 and is reflected in Commitment fees 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. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $59,468. 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 $25,430 for the period.
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 Board of Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Series Small Cap Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Advisor Series Small Cap Fund (one of the funds constituting Fidelity Advisor Series I, referred to hereafter as the "Fund") as of November 30, 2018, the related statement of operations for the year ended November 30, 2018, the statement of changes in net assets for each of the two years in the period ended November 30, 2018, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 ended November 30, 2018 and the financial highlights for each of the five years in the period ended November 30, 2018 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 17, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Actual | .01% | $1,000.00 | $936.80 | $.05 |
Hypothetical-C | $1,000.00 | $1,025.02 | $.05 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Series Small Cap Fund voted to pay on December 20, 2018, to shareholders of record at the opening of business on December 19, 2018, a distribution of $0.976 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.119 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $37,316,445, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 83% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 90% of the dividend distributed during the fiscal year as an amount 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Series Small Cap Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders, including the expense cap arrangement currently in place for the fund; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
AXS5-ANN-0119
1.967941.105
Fidelity Advisor® Small Cap Fund Class A, Class M, Class C, Class I and Class Z Annual Report November 30, 2018 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (10.63)% | 3.72% | 9.74% |
Class M (incl. 3.50% sales charge) | (8.73)% | 3.96% | 9.75% |
Class C (incl. contingent deferred sales charge) | (6.67)% | 4.16% | 9.57% |
Class I | (4.93)% | 5.23% | 10.70% |
Class Z | (4.80)% | 5.39% | 10.78% |
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, 2008, 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/0001379491-19-000231/img446434479_740.jpg)
Period Ending Values | ||
$25,334 | Fidelity Advisor® Small Cap Fund - Class A | |
$37,200 | Russell 2000® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Co-Portfolio Manager Jamie Harmon: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) returned roughly -5% to -6%, trailing the 0.57% gain of the benchmark Russell 2000® Index. Relative to the benchmark, stock selection was weakest in the consumer staples, financials, consumer discretionary, industrials, and information technology sectors. Conversely, picks within health care were strong, as was the fund’s positioning in energy though to a much lesser extent. Turning to individual stocks, our biggest relative detractor was Synnex, a technology distributor and provider of business process outsourcing services. In consumer staples, household products company Spectrum Brands and organic-foods company Hain Celestial Group, both experienced some business-execution missteps this period. As a result, in May, we sold our out-of-index position in the latter from the fund. Other key detractors included timeshare property owner Marriott Vacations World, and wallboard distributor GMS. In contrast, the fund's top contributor was Encompass Health, which generated good financial results and continued to execute well. A position in Bioverativ, an out-of-index biotechnology stock, also contributed, thanks to an acquisition that closed during the period. Consequently, we sold the fund's position in March. Also contributing was Stamps.com, an internet-based provider of postage solutions for e-retailers.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.
Notes to shareholders: On June 30, 2018, Jennifer Fo Cardillo assumed co-management responsibility of the fund, joining Co-Manager Jamie Harmon. The two will manage the fund together until June 30, 2019, at which point Jamie plans to retire and Jennifer will become sole Portfolio Manager.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Cushman & Wakefield PLC | 2.6 |
LivaNova PLC | 2.1 |
Dorman Products, Inc. | 2.1 |
SYNNEX Corp. | 2.1 |
Essent Group Ltd. | 2.0 |
Hilton Grand Vacations, Inc. | 1.9 |
LPL Financial | 1.8 |
Generac Holdings, Inc. | 1.8 |
Grand Canyon Education, Inc. | 1.8 |
ITT, Inc. | 1.7 |
19.9 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Industrials | 19.9 |
Health Care | 17.1 |
Information Technology | 15.6 |
Financials | 15.3 |
Consumer Discretionary | 13.4 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018 * | ||
Stocks and Equity Futures | 99.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 17.2%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 98.9% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 2.2% | |||
Interactive Media & Services - 0.3% | |||
Care.com, Inc. (a) | 300,000 | $5,376 | |
Media - 1.5% | |||
The New York Times Co. Class A | 1,177,300 | 31,587 | |
Wireless Telecommunication Services - 0.4% | |||
Boingo Wireless, Inc. (a) | 378,900 | 9,488 | |
TOTAL COMMUNICATION SERVICES | 46,451 | ||
CONSUMER DISCRETIONARY - 13.4% | |||
Auto Components - 2.1% | |||
Dorman Products, Inc. (a) | 496,900 | 43,658 | |
Diversified Consumer Services - 1.8% | |||
Grand Canyon Education, Inc. (a) | 303,000 | 37,075 | |
Hotels, Restaurants & Leisure - 3.5% | |||
Hilton Grand Vacations, Inc. (a) | 1,261,013 | 40,428 | |
Marriott Vacations Worldwide Corp. | 215,000 | 17,458 | |
Planet Fitness, Inc. (a) | 189,100 | 10,442 | |
YETI Holdings, Inc. (b) | 317,600 | 5,348 | |
73,676 | |||
Household Durables - 2.3% | |||
Cavco Industries, Inc. (a) | 57,700 | 9,495 | |
Helen of Troy Ltd. (a) | 35,850 | 5,128 | |
TopBuild Corp. (a) | 529,300 | 26,968 | |
TRI Pointe Homes, Inc. (a) | 484,700 | 6,049 | |
47,640 | |||
Internet & Direct Marketing Retail - 1.0% | |||
Stamps.com, Inc. (a) | 119,109 | 20,422 | |
Leisure Products - 0.8% | |||
Brunswick Corp. | 89,700 | 4,758 | |
Polaris Industries, Inc. | 125,000 | 12,125 | |
16,883 | |||
Specialty Retail - 0.9% | |||
Boot Barn Holdings, Inc. (a) | 423,200 | 9,581 | |
The Children's Place Retail Stores, Inc. | 70,600 | 9,153 | |
18,734 | |||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Carter's, Inc. | 60,900 | 5,633 | |
G-III Apparel Group Ltd. (a) | 397,500 | 15,932 | |
21,565 | |||
TOTAL CONSUMER DISCRETIONARY | 279,653 | ||
CONSUMER STAPLES - 3.4% | |||
Food & Staples Retailing - 1.4% | |||
BJ's Wholesale Club Holdings, Inc. | 1,234,130 | 28,829 | |
Food Products - 1.2% | |||
Nomad Foods Ltd. (a) | 1,243,400 | 25,142 | |
Household Products - 0.8% | |||
Spectrum Brands Holdings, Inc. | 364,200 | 17,984 | |
TOTAL CONSUMER STAPLES | 71,955 | ||
ENERGY - 2.5% | |||
Energy Equipment & Services - 0.9% | |||
Hess Midstream Partners LP | 925,248 | 17,820 | |
Oil, Gas & Consumable Fuels - 1.6% | |||
Alliance Resource Partners LP | 680,000 | 13,362 | |
Noble Midstream Partners LP | 475,833 | 15,764 | |
Par Pacific Holdings, Inc. (a) | 276,521 | 4,679 | |
33,805 | |||
TOTAL ENERGY | 51,625 | ||
FINANCIALS - 15.3% | |||
Banks - 7.3% | |||
Allegiance Bancshares, Inc. (a) | 769,120 | 29,173 | |
Cadence Bancorp Class A | 796,500 | 16,336 | |
ConnectOne Bancorp, Inc. | 1,116,000 | 22,476 | |
CVB Financial Corp. | 303,700 | 7,058 | |
First Citizen Bancshares, Inc. | 16,000 | 6,872 | |
First Interstate Bancsystem, Inc. | 214,700 | 9,324 | |
Independent Bank Corp., Massachusetts | 143,200 | 11,509 | |
Old National Bancorp, Indiana | 560,600 | 10,500 | |
ServisFirst Bancshares, Inc. | 816,800 | 32,157 | |
Skandiabanken ASA (c) | 340,656 | 3,420 | |
Trico Bancshares | 94,900 | 3,649 | |
152,474 | |||
Capital Markets - 2.4% | |||
Blucora, Inc. (a) | 379,200 | 11,740 | |
LPL Financial | 603,100 | 38,701 | |
50,441 | |||
Consumer Finance - 0.6% | |||
First Cash Financial Services, Inc. | 146,700 | 13,064 | |
Insurance - 2.7% | |||
Enstar Group Ltd. (a) | 126,700 | 22,321 | |
Hastings Group Holdings PLC (c) | 7,542,864 | 18,368 | |
Primerica, Inc. | 119,600 | 14,218 | |
54,907 | |||
Thrifts & Mortgage Finance - 2.3% | |||
Essent Group Ltd. (a) | 1,066,723 | 41,133 | |
WSFS Financial Corp. | 165,800 | 6,975 | |
48,108 | |||
TOTAL FINANCIALS | 318,994 | ||
HEALTH CARE - 17.1% | |||
Biotechnology - 2.0% | |||
Allakos, Inc. (a) | 32,100 | 1,891 | |
Array BioPharma, Inc. (a) | 253,100 | 4,032 | |
Atara Biotherapeutics, Inc. (a) | 78,500 | 3,136 | |
Audentes Therapeutics, Inc. (a) | 45,600 | 1,115 | |
FibroGen, Inc. (a) | 79,100 | 3,430 | |
Heron Therapeutics, Inc. (a) | 110,100 | 3,163 | |
Kezar Life Sciences, Inc. | 84,300 | 2,502 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 18,900 | 2,982 | |
Mirati Therapeutics, Inc. (a) | 51,100 | 1,972 | |
Swedish Orphan Biovitrum AB (a) | 800,000 | 17,277 | |
41,500 | |||
Health Care Equipment & Supplies - 3.6% | |||
Avanos Medical, Inc. (a) | 252,000 | 12,023 | |
Integra LifeSciences Holdings Corp. (a) | 200,800 | 10,769 | |
Interojo Co. Ltd. | 17,318 | 326 | |
LivaNova PLC (a) | 434,200 | 43,937 | |
Merit Medical Systems, Inc. (a) | 127,200 | 8,020 | |
75,075 | |||
Health Care Providers & Services - 5.5% | |||
Addus HomeCare Corp. (a) | 281,685 | 20,907 | |
AMN Healthcare Services, Inc. (a) | 430,000 | 27,391 | |
Amplifon SpA | 254,295 | 4,255 | |
Chemed Corp. | 25,600 | 8,110 | |
Encompass Health Corp. | 290,600 | 21,856 | |
G1 Therapeutics, Inc. (a) | 57,500 | 2,198 | |
LHC Group, Inc. (a) | 193,777 | 20,321 | |
Premier, Inc. (a) | 243,450 | 9,655 | |
114,693 | |||
Life Sciences Tools & Services - 4.2% | |||
Charles River Laboratories International, Inc. (a) | 261,700 | 35,290 | |
ICON PLC (a) | 222,700 | 32,229 | |
PRA Health Sciences, Inc. (a) | 184,200 | 21,504 | |
89,023 | |||
Pharmaceuticals - 1.8% | |||
Huons Co. Ltd. | 21,524 | 1,399 | |
Korea United Pharm, Inc. | 225,028 | 4,791 | |
Supernus Pharmaceuticals, Inc. (a) | 628,200 | 29,789 | |
Zogenix, Inc. (a) | 50,900 | 2,091 | |
38,070 | |||
TOTAL HEALTH CARE | 358,361 | ||
INDUSTRIALS - 19.9% | |||
Aerospace & Defense - 1.3% | |||
Wesco Aircraft Holdings, Inc. (a) | 2,853,000 | 27,161 | |
Air Freight & Logistics - 0.3% | |||
C.H. Robinson Worldwide, Inc. | 61,400 | 5,669 | |
Building Products - 2.5% | |||
Armstrong World Industries, Inc. | 172,700 | 11,569 | |
Gibraltar Industries, Inc. (a) | 536,800 | 19,411 | |
GMS, Inc. (a) | 1,139,500 | 21,411 | |
52,391 | |||
Commercial Services & Supplies - 0.6% | |||
Coor Service Management Holding AB (c) | 1,491,802 | 11,799 | |
Construction & Engineering - 1.0% | |||
Argan, Inc. | 106,071 | 4,611 | |
EMCOR Group, Inc. | 232,800 | 16,962 | |
21,573 | |||
Electrical Equipment - 1.8% | |||
Generac Holdings, Inc. (a) | 655,300 | 37,300 | |
Industrial Conglomerates - 1.7% | |||
ITT, Inc. | 644,400 | 35,732 | |
Machinery - 5.7% | |||
Cactus, Inc. (a) | 790,200 | 22,821 | |
Crane Co. | 135,050 | 11,664 | |
Douglas Dynamics, Inc. | 150,600 | 5,613 | |
Gardner Denver Holdings, Inc. (a) | 1,035,000 | 25,616 | |
Hy-Lok Corp. | 299,772 | 4,495 | |
Luxfer Holdings PLC sponsored | 454,900 | 10,458 | |
Oshkosh Corp. | 400,000 | 28,532 | |
Rexnord Corp. (a) | 347,800 | 9,846 | |
119,045 | |||
Professional Services - 3.7% | |||
Asgn, Inc. (a) | 472,700 | 32,734 | |
FTI Consulting, Inc. (a) | 53,000 | 3,723 | |
ICF International, Inc. | 408,379 | 28,599 | |
Navigant Consulting, Inc. | 286,700 | 7,345 | |
Stantec, Inc. | 241,600 | 5,757 | |
78,158 | |||
Trading Companies & Distributors - 1.3% | |||
Univar, Inc. (a) | 1,277,700 | 27,675 | |
TOTAL INDUSTRIALS | 416,503 | ||
INFORMATION TECHNOLOGY - 15.6% | |||
Communications Equipment - 0.7% | |||
Finisar Corp. (a) | 400,000 | 9,340 | |
InterDigital, Inc. | 75,000 | 5,645 | |
14,985 | |||
Electronic Equipment & Components - 5.3% | |||
CDW Corp. | 352,400 | 32,660 | |
Control4 Corp. (a) | 600,000 | 13,062 | |
ePlus, Inc. (a) | 276,089 | 22,570 | |
SYNNEX Corp. | 537,041 | 43,361 | |
111,653 | |||
Internet Software & Services - 0.5% | |||
CarGurus, Inc. Class A (a) | 237,400 | 9,237 | |
IT Services - 5.1% | |||
Booz Allen Hamilton Holding Corp. Class A | 612,800 | 31,443 | |
Conduent, Inc. (a) | 2,551,100 | 32,705 | |
Euronet Worldwide, Inc. (a) | 120,000 | 14,113 | |
EVERTEC, Inc. | 181,867 | 4,970 | |
Genpact Ltd. | 600,000 | 18,228 | |
Hackett Group, Inc. | 298,300 | 5,265 | |
106,724 | |||
Semiconductors & Semiconductor Equipment - 0.7% | |||
Entegris, Inc. | 387,800 | 11,401 | |
Rudolph Technologies, Inc. (a) | 150,272 | 3,189 | |
14,590 | |||
Software - 3.3% | |||
j2 Global, Inc. | 327,900 | 24,202 | |
Nuance Communications, Inc. (a) | 624,600 | 9,987 | |
Pegasystems, Inc. | 124,800 | 6,738 | |
Proofpoint, Inc. (a) | 62,200 | 6,034 | |
PROS Holdings, Inc. (a) | 171,700 | 5,524 | |
RealPage, Inc. (a) | 73,000 | 3,765 | |
Zensar Technologies Ltd. | 3,986,545 | 12,729 | |
68,979 | |||
TOTAL INFORMATION TECHNOLOGY | 326,168 | ||
MATERIALS - 3.1% | |||
Chemicals - 1.9% | |||
Ashland Global Holdings, Inc. | 104,100 | 8,525 | |
Ferro Corp. (a) | 250,000 | 4,825 | |
Platform Specialty Products Corp. (a) | 2,200,000 | 25,894 | |
39,244 | |||
Containers & Packaging - 0.7% | |||
Aptargroup, Inc. | 128,300 | 13,350 | |
Paper & Forest Products - 0.5% | |||
Neenah, Inc. | 161,400 | 11,117 | |
TOTAL MATERIALS | 63,711 | ||
REAL ESTATE - 4.3% | |||
Equity Real Estate Investment Trusts (REITs) - 1.1% | |||
Americold Realty Trust | 384,300 | 10,299 | |
CoreSite Realty Corp. | 64,900 | 6,325 | |
EPR Properties | 89,900 | 6,368 | |
22,992 | |||
Real Estate Management & Development - 3.2% | |||
CBRE Group, Inc. (a) | 300,000 | 13,104 | |
Cushman & Wakefield PLC (b) | 2,848,400 | 53,036 | |
66,140 | |||
TOTAL REAL ESTATE | 89,132 | ||
UTILITIES - 2.1% | |||
Gas Utilities - 1.3% | |||
Amerigas Partners LP | 230,000 | 8,547 | |
Star Gas Partners LP | 1,950,000 | 18,779 | |
27,326 | |||
Multi-Utilities - 0.8% | |||
Telecom Plus PLC | 1,000,000 | 17,406 | |
TOTAL UTILITIES | 44,732 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,884,982) | 2,067,285 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 2.33% to 2.34% 2/14/19 to 2/21/19 (d) | |||
(Cost $99) | 100 | 100 | |
Shares | Value (000s) | ||
Money Market Funds - 1.1% | |||
Fidelity Cash Central Fund, 2.27% (e) | 20,034,952 | $20,039 | |
Fidelity Securities Lending Cash Central Fund 2.27% (e)(f) | 1,994,460 | 1,995 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $22,034) | 22,034 | ||
Equity Funds - 0.5% | |||
Small Blend Funds - 0.5% | |||
iShares Russell 2000 Index ETF | |||
(Cost $10,531) | 69,500 | 10,607 | |
TOTAL INVESTMENT IN SECURITIES - 100.5% | |||
(Cost $1,917,646) | 2,100,026 | ||
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (9,428) | ||
NET ASSETS - 100% | $2,090,598 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount (000s) | Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini Russell 2000 Index Contracts (United States) | 24 | Dec. 2018 | $1,842 | $41 | $41 |
The notional amount of futures purchased as a percentage of Net Assets is 0.1%
Security Type Abbreviations
ETF – Exchange-Traded Fund
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 $33,587,000 or 1.6% 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 $96,000.
(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 | $1,275 |
Fidelity Securities Lending Cash Central Fund | 503 |
Total | $1,778 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
Allegiance Bancshares, Inc. | $40,010 | $-- | $9,819 | $-- | $566 | $(1,584) | $-- |
Hess Midstream Partners LP | 30,037 | 2,117 | 12,403 | -- | (2,720) | 2,095 | -- |
Total | $70,047 | $2,117 | $22,222 | $-- | $(2,154) | $511 | $-- |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $46,451 | $46,451 | $-- | $-- |
Consumer Discretionary | 279,653 | 279,653 | -- | -- |
Consumer Staples | 71,955 | 71,955 | -- | -- |
Energy | 51,625 | 51,625 | -- | -- |
Financials | 318,994 | 318,994 | -- | -- |
Health Care | 358,361 | 358,361 | -- | -- |
Industrials | 416,503 | 416,503 | -- | -- |
Information Technology | 326,168 | 326,168 | -- | -- |
Materials | 63,711 | 63,711 | -- | -- |
Real Estate | 89,132 | 89,132 | -- | -- |
Utilities | 44,732 | 44,732 | -- | -- |
U.S. Government and Government Agency Obligations | 100 | -- | 100 | -- |
Money Market Funds | 22,034 | 22,034 | -- | -- |
Equity Funds | 10,607 | 10,607 | -- | -- |
Total Investments in Securities: | $2,100,026 | $2,099,926 | $100 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $41 | $41 | $-- | $-- |
Total Assets | $41 | $41 | $-- | $-- |
Total Derivative Instruments: | $41 | $41 | $-- | $-- |
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, 2018. 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) | $41 | $0 |
Total Equity Risk | 41 | 0 |
Total Value of Derivatives | $41 | $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 on futures contracts, 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 | 82.8% |
United Kingdom | 6.9% |
Bermuda | 4.2% |
Ireland | 1.5% |
Sweden | 1.4% |
British Virgin Islands | 1.2% |
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, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $1,973) — See accompanying schedule: Unaffiliated issuers (cost $1,895,612) | $2,077,992 | |
Fidelity Central Funds (cost $22,034) | 22,034 | |
Total Investment in Securities (cost $1,917,646) | $2,100,026 | |
Cash | 255 | |
Receivable for investments sold | 1,877 | |
Receivable for fund shares sold | 655 | |
Dividends receivable | 1,440 | |
Distributions receivable from Fidelity Central Funds | 27 | |
Receivable for daily variation margin on futures contracts | 9 | |
Prepaid expenses | 4 | |
Other receivables | 79 | |
Total assets | 2,104,372 | |
Liabilities | ||
Payable for investments purchased | $6,769 | |
Payable for fund shares redeemed | 3,218 | |
Accrued management fee | 774 | |
Distribution and service plan fees payable | 540 | |
Other affiliated payables | 416 | |
Other payables and accrued expenses | 76 | |
Collateral on securities loaned | 1,981 | |
Total liabilities | 13,774 | |
Net Assets | $2,090,598 | |
Net Assets consist of: | ||
Paid in capital | $1,684,943 | |
Total distributable earnings (loss) | 405,655 | |
Net Assets | $2,090,598 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($639,825 ÷ 26,162.6 shares) | $24.46 | |
Maximum offering price per share (100/94.25 of $24.46) | $25.95 | |
Class M: | ||
Net Asset Value and redemption price per share ($579,826 ÷ 25,680.6 shares) | $22.58 | |
Maximum offering price per share (100/96.50 of $22.58) | $23.40 | |
Class C: | ||
Net Asset Value and offering price per share ($196,463 ÷ 10,726.6 shares)(a) | $18.32 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($603,647 ÷ 22,452.5 shares) | $26.89 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($70,837 ÷ 2,633.2 shares) | $26.90 |
(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, 2018 | |
Investment Income | ||
Dividends | $18,376 | |
Interest | 78 | |
Income from Fidelity Central Funds | 1,778 | |
Total income | 20,232 | |
Expenses | ||
Management fee | ||
Basic fee | $16,922 | |
Performance adjustment | (5,365) | |
Transfer agent fees | 4,767 | |
Distribution and service plan fees | 7,608 | |
Accounting and security lending fees | 741 | |
Custodian fees and expenses | 73 | |
Independent trustees' fees and expenses | 13 | |
Registration fees | 120 | |
Audit | 68 | |
Legal | 4 | |
Interest | 6 | |
Miscellaneous | 19 | |
Total expenses before reductions | 24,976 | |
Expense reductions | (239) | |
Total expenses after reductions | 24,737 | |
Net investment income (loss) | (4,505) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 266,812 | |
Fidelity Central Funds | (2) | |
Other affiliated issuers | (2,154) | |
Foreign currency transactions | (39) | |
Futures contracts | (2,388) | |
Total net realized gain (loss) | 262,229 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (367,123) | |
Other affiliated issuers | 511 | |
Assets and liabilities in foreign currencies | (8) | |
Futures contracts | (3,417) | |
Total change in net unrealized appreciation (depreciation) | (370,037) | |
Net gain (loss) | (107,808) | |
Net increase (decrease) in net assets resulting from operations | $(112,313) |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(4,505) | $886 |
Net realized gain (loss) | 262,229 | 381,285 |
Change in net unrealized appreciation (depreciation) | (370,037) | 19,433 |
Net increase (decrease) in net assets resulting from operations | (112,313) | 401,604 |
Distributions to shareholders | (325,472) | – |
Distributions to shareholders from net investment income | – | (7,493) |
Distributions to shareholders from net realized gain | – | (31,569) |
Total distributions | (325,472) | (39,062) |
Share transactions - net increase (decrease) | (99,053) | (393,358) |
Total increase (decrease) in net assets | (536,838) | (30,816) |
Net Assets | ||
Beginning of period | 2,627,436 | 2,658,252 |
End of period | $2,090,598 | $2,627,436 |
Other Information | ||
Distributions in excess of net investment income end of period | $(5,726) |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $29.35 | $25.52 | $27.56 | $29.85 | $30.96 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.04) | .03 | .12B | .02C | .04 |
Net realized and unrealized gain (loss) | (1.28) | 4.18 | .05 | 1.10 | 2.36 |
Total from investment operations | (1.32) | 4.21 | .17 | 1.12 | 2.40 |
Distributions from net investment income | – | (.08) | – | – | (.01) |
Distributions from net realized gain | (3.57) | (.30) | (2.21) | (3.41) | (3.50) |
Total distributions | (3.57) | (.38) | (2.21) | (3.41) | (3.51) |
Net asset value, end of period | $24.46 | $29.35 | $25.52 | $27.56 | $29.85 |
Total ReturnD,E | (5.18)% | 16.68% | 1.31% | 4.17% | 9.06% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .97% | 1.05% | 1.32% | 1.26% | .98% |
Expenses net of fee waivers, if any | .97% | 1.05% | 1.32% | 1.26% | .98% |
Expenses net of all reductions | .96% | 1.04% | 1.31% | 1.25% | .97% |
Net investment income (loss) | (.13)% | .10% | .52%B | .07%C | .14% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $640 | $805 | $932 | $1,047 | $1,097 |
Portfolio turnover rateH | 74% | 84% | 81% | 33% | 39% |
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 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.
Fidelity Advisor Small Cap Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $27.43 | $23.88 | $25.99 | $28.40 | $29.69 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.09) | (.03) | .07B | (.04)C | (.02) |
Net realized and unrealized gain (loss) | (1.19) | 3.91 | .03 | 1.04 | 2.23 |
Total from investment operations | (1.28) | 3.88 | .10 | 1.00 | 2.21 |
Distributions from net investment income | – | (.03) | – | – | – |
Distributions from net realized gain | (3.57) | (.30) | (2.21) | (3.41) | (3.50) |
Total distributions | (3.57) | (.33) | (2.21) | (3.41) | (3.50) |
Net asset value, end of period | $22.58 | $27.43 | $23.88 | $25.99 | $28.40 |
Total ReturnD,E | (5.42)% | 16.41% | 1.10% | 3.93% | 8.79% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.20% | 1.28% | 1.54% | 1.49% | 1.20% |
Expenses net of fee waivers, if any | 1.20% | 1.28% | 1.54% | 1.49% | 1.20% |
Expenses net of all reductions | 1.19% | 1.27% | 1.54% | 1.49% | 1.20% |
Net investment income (loss) | (.37)% | (.13)% | .29%B | (.16)%C | (.08)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $580 | $734 | $756 | $888 | $958 |
Portfolio turnover rateH | 74% | 84% | 81% | 33% | 39% |
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 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.
Fidelity Advisor Small Cap Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $23.02 | $20.17 | $22.44 | $25.10 | $26.77 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.18) | (.14) | (.05)B | (.16)C | (.15) |
Net realized and unrealized gain (loss) | (.95) | 3.29 | (.01) | .91 | 1.98 |
Total from investment operations | (1.13) | 3.15 | (.06) | .75 | 1.83 |
Distributions from net realized gain | (3.57) | (.30) | (2.21) | (3.41) | (3.50) |
Total distributions | (3.57) | (.30) | (2.21) | (3.41) | (3.50) |
Net asset value, end of period | $18.32 | $23.02 | $20.17 | $22.44 | $25.10 |
Total ReturnD,E | (5.88)% | 15.80% | .50% | 3.38% | 8.26% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.74% | 1.81% | 2.08% | 2.02% | 1.73% |
Expenses net of fee waivers, if any | 1.74% | 1.81% | 2.08% | 2.02% | 1.73% |
Expenses net of all reductions | 1.73% | 1.80% | 2.07% | 2.01% | 1.73% |
Net investment income (loss) | (.90)% | (.66)% | (.24)%B | (.69)%C | (.62)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $196 | $273 | $274 | $318 | $317 |
Portfolio turnover rateH | 74% | 84% | 81% | 33% | 39% |
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 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.
Fidelity Advisor Small Cap Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.84 | $27.65 | $29.59 | $31.80 | $32.73 |
Income from Investment Operations | |||||
Net investment income (loss)A | .04 | .11 | .20B | .10C | .13 |
Net realized and unrealized gain (loss) | (1.42) | 4.54 | .07 | 1.18 | 2.50 |
Total from investment operations | (1.38) | 4.65 | .27 | 1.28 | 2.63 |
Distributions from net investment income | – | (.15) | – | (.08) | (.06) |
Distributions from net realized gain | (3.57) | (.30) | (2.21) | (3.41) | (3.50) |
Total distributions | (3.57) | (.46)D | (2.21) | (3.49) | (3.56) |
Net asset value, end of period | $26.89 | $31.84 | $27.65 | $29.59 | $31.80 |
Total ReturnE | (4.93)% | 17.01% | 1.58% | 4.46% | 9.33% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .71% | .78% | 1.05% | .99% | .70% |
Expenses net of fee waivers, if any | .71% | .78% | 1.04% | .99% | .70% |
Expenses net of all reductions | .70% | .77% | 1.04% | .99% | .70% |
Net investment income (loss) | .12% | .37% | .79%B | .34%C | .41% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $604 | $758 | $652 | $704 | $627 |
Portfolio turnover rateH | 74% | 84% | 81% | 33% | 39% |
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 Total distributions of $.46 per share is comprised of distributions from net investment income of $.152 and distributions from net realized gain of $.304 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.
Fidelity Advisor Small Cap Fund Class Z
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.81 | $27.63 | $29.53 | $31.76 | $32.74 |
Income from Investment Operations | |||||
Net investment income (loss)A | .08 | .15 | .24B | .14C | .17 |
Net realized and unrealized gain (loss) | (1.42) | 4.53 | .07 | 1.17 | 2.51 |
Total from investment operations | (1.34) | 4.68 | .31 | 1.31 | 2.68 |
Distributions from net investment income | – | (.20) | – | (.14) | (.16) |
Distributions from net realized gain | (3.57) | (.30) | (2.21) | (3.41) | (3.50) |
Total distributions | (3.57) | (.50) | (2.21) | (3.54)D | (3.66) |
Net asset value, end of period | $26.90 | $31.81 | $27.63 | $29.53 | $31.76 |
Total ReturnE | (4.80)% | 17.17% | 1.73% | 4.59% | 9.52% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .56% | .63% | .89% | .84% | .55% |
Expenses net of fee waivers, if any | .56% | .63% | .89% | .84% | .55% |
Expenses net of all reductions | .55% | .62% | .89% | .84% | .54% |
Net investment income (loss) | .28% | .51% | .94%B | .48%C | .57% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $71 | $57 | $44 | $41 | $20 |
Portfolio turnover rateH | 74% | 84% | 81% | 33% | 39% |
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 .50%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .26%.
D 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.
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, 2018
(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 M, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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. ETFs are valued at their last 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 but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
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, 2018 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 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, 2018, 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 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 the 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, foreign currency transactions, partnerships, market discount, net operating losses and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $327,738 |
Gross unrealized depreciation | (145,777) |
Net unrealized appreciation (depreciation) | $181,961 |
Tax Cost | $1,918,065 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $232,424 |
Net unrealized appreciation (depreciation) on securities and other investments | $173,228 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $– | $ 7,493 |
Long-term Capital Gains | 325,472 | 31,569 |
Total | $325,472 | $ 39,062 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
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 on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,751,313 and $2,078,369, 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 .24% 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 .47% 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% | $1,852 | $20 |
Class M | .25% | .25% | 3,383 | 19 |
Class C | .75% | .25% | 2,373 | 144 |
$7,608 | $183 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $98 |
Class M | 19 |
Class C(a) | 7 |
$124 |
(a) When 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 | $1,520 | .21 |
Class M | 1,276 | .19 |
Class C | 523 | .22 |
Class I | 1,412 | .20 |
Class Z | 36 | .05 |
$4,767 |
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. For the period, the fees were equivalent to an annual rate of .03%.
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 $83 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $15,835 | 1.61% | $6 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $33.
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 $503, including $37 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 $213 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 $26.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $97,007 | $– |
Class M | 94,774 | – |
Class C | 42,142 | – |
Class I | 84,511 | – |
Class Z | 7,038 | – |
Total | $325,472 | $– |
From net investment income | ||
Class A | $– | $2,808 |
Class M | – | 819 |
Class I | – | 3,550 |
Class Z | – | 316 |
Total | $– | $7,493 |
From net realized gain | ||
Class A | $– | $10,566 |
Class M | – | 9,377 |
Class C | – | 4,017 |
Class I | – | 7,137 |
Class Z | – | 472 |
Total | $– | $31,569 |
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, 2018 | Year ended November 30, 2017 | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Class A | ||||
Shares sold | 2,683 | 3,169 | $70,872 | $85,030 |
Reinvestment of distributions | 3,654 | 494 | 94,669 | 12,957 |
Shares redeemed | (7,596) | (12,763) | (199,704) | (342,606) |
Net increase (decrease) | (1,259) | (9,100) | $(34,163) | $(244,619) |
Class M | ||||
Shares sold | 2,955 | 3,520 | $71,993 | $88,385 |
Reinvestment of distributions | 3,900 | 405 | 93,479 | 9,963 |
Shares redeemed | (7,929) | (8,820) | (192,971) | (222,262) |
Net increase (decrease) | (1,074) | (4,895) | $(27,499) | $(123,914) |
Class C | ||||
Shares sold | 1,069 | 1,392 | $21,280 | $29,232 |
Reinvestment of distributions | 2,060 | 181 | 40,250 | 3,752 |
Shares redeemed | (4,279) | (3,288) | (84,745) | (69,702) |
Net increase (decrease) | (1,150) | (1,715) | $(23,215) | $(36,718) |
Class I | ||||
Shares sold | 5,442 | 9,426 | $157,788 | $274,662 |
Reinvestment of distributions | 2,708 | 331 | 76,927 | 9,396 |
Shares redeemed | (9,517) | (9,521) | (273,837) | (278,258) |
Net increase (decrease) | (1,367) | 236 | $(39,122) | $5,800 |
Class Z | ||||
Shares sold | 1,924 | 1,353 | $55,987 | $40,314 |
Reinvestment of distributions | 228 | 28 | 6,486 | 785 |
Shares redeemed | (1,308) | (1,193) | (37,527) | (35,006) |
Net increase (decrease) | 844 | 188 | $24,946 | $6,093 |
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 Board of Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Small Cap Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Advisor Small Cap Fund (one of the funds constituting Fidelity Advisor Series I, referred to hereafter as the "Fund") as of November 30, 2018, the related statement of operations for the year ended November 30, 2018, the statement of changes in net assets for each of the two years in the period ended November 30, 2018, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 ended November 30, 2018 and the financial highlights for each of the five years in the period ended November 30, 2018 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 14, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of a 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 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 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, 2018 to November 30, 2018).
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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .97% | |||
Actual | $1,000.00 | $932.50 | $4.70 | |
Hypothetical-C | $1,000.00 | $1,020.21 | $4.91 | |
Class M | 1.20% | |||
Actual | $1,000.00 | $931.10 | $5.81 | |
Hypothetical-C | $1,000.00 | $1,019.05 | $6.07 | |
Class C | 1.74% | |||
Actual | $1,000.00 | $929.00 | $8.41 | |
Hypothetical-C | $1,000.00 | $1,016.34 | $8.80 | |
Class I | .71% | |||
Actual | $1,000.00 | $933.70 | $3.44 | |
Hypothetical-C | $1,000.00 | $1,021.51 | $3.60 | |
Class Z | .56% | |||
Actual | $1,000.00 | $934.00 | $2.72 | |
Hypothetical-C | $1,000.00 | $1,022.26 | $2.84 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity 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.
Pay Date | Record Date | Capital Gains | |
Fidelity Advisor Small Cap Fund | |||
Class A | 12/27/18 | 12/26/18 | $2.724 |
Class M | 12/27/18 | 12/26/18 | $2.724 |
Class C | 12/27/18 | 12/26/18 | $2.724 |
Class I | 12/27/18 | 12/26/18 | $2.724 |
Class Z | 12/27/18 | 12/26/18 | $2.724 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $266,259,531, or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Small Cap Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
ASCF-ANN-0119
1.713164.121
Fidelity Advisor® Stock Selector Mid Cap Fund Class A, Class M, Class C, Class I and Class Z Annual Report November 30, 2018 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (2.58)% | 6.95% | 14.40% |
Class M (incl. 3.50% sales charge) | (0.51)% | 7.20% | 14.42% |
Class C (incl. contingent deferred sales charge) | 1.60% | 7.41% | 14.21% |
Class I | 3.62% | 8.46% | 15.38% |
Class Z | 3.75% | 8.52% | 15.41% |
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 February 1, 2017. Returns prior to February 1, 2017, are those of Class I.
$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, 2008, 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/0001379491-19-000231/img446434394_740.jpg)
Period Ending Values | ||
$38,380 | Fidelity Advisor® Stock Selector Mid Cap Fund - Class A | |
$42,624 | S&P MidCap 400® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Co-Portfolio Manager Robert Stansky: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 3% to 4%, well ahead of the 0.48% advance of the benchmark S&P MidCap 400® Index. Stock selection drove the vast majority of the fund’s outperformance of the benchmark, most notably in the consumer discretionary, financials and health care sectors. Sarepta Therapeutics, a non-benchmark stock we bought this period, gained 129% for the fund and added the most relative value among our individual holdings. Teladoc Health is another health care contributor worthy of mention. We took advantage of the strong appreciation in this stock to reduce the fund's non-benchmark position, which gained roughly 70% the past 12 months. Market-maker Virtu Financial, also a non-benchmark holding,gained 67% and also lifted the fund’s relative result. Conversely, stock picking in real estate and materials detracted from relative performance. At the stock level, avoiding Abiomed hurt most versus the benchmark, as the stock surged 99% from the beginning of the period until it dropped out of the fund's benchmark in May. Establishing a non-benchmark position in shares of Netherlands-based construction & engineering firm Arcadis also hurt.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.
Notes to shareholders: On March 1, 2018, Ali Khan was named a Co-Manager of the fund, succeeding Christopher Lin in managing the information technology and telecommunication services sleeves. On September 24, 2018, Gordon Scott assumed portfolio management responsibilities for the fund’s telecom subportfolio, succeeding Ali Khan.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Huntington Bancshares, Inc. | 2.6 |
First Horizon National Corp. | 2.1 |
AECOM | 1.9 |
OneMain Holdings, Inc. | 1.6 |
NVR, Inc. | 1.5 |
HD Supply Holdings, Inc. | 1.4 |
Nielsen Holdings PLC | 1.4 |
Teleflex, Inc. | 1.3 |
Gentex Corp. | 1.3 |
Signature Bank | 1.2 |
16.3 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 16.0 |
Industrials | 14.9 |
Information Technology | 14.0 |
Consumer Discretionary | 12.3 |
Real Estate | 9.7 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 96.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.1% |
* Foreign investments - 10.9%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 96.9% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 3.0% | |||
Entertainment - 1.0% | |||
Cinemark Holdings, Inc. | 213,928 | $8,208 | |
Electronic Arts, Inc. (a) | 103,600 | 8,710 | |
The Madison Square Garden Co. (a) | 6,997 | 1,889 | |
18,807 | |||
Media - 2.0% | |||
AMC Networks, Inc. Class A (a) | 86,405 | 5,172 | |
Discovery Communications, Inc. Class A (a)(b) | 174,180 | 5,351 | |
GCI Liberty, Inc. (a) | 134,124 | 6,421 | |
Interpublic Group of Companies, Inc. | 213,051 | 5,007 | |
Liberty Broadband Corp. Class A (a) | 116,887 | 9,951 | |
Liberty Media Corp. Liberty Media Class A (a) | 105,036 | 3,027 | |
Omnicom Group, Inc. | 73,082 | 5,625 | |
40,554 | |||
TOTAL COMMUNICATION SERVICES | 59,361 | ||
CONSUMER DISCRETIONARY - 12.3% | |||
Auto Components - 1.3% | |||
Gentex Corp. | 1,145,000 | 25,785 | |
Distributors - 0.7% | |||
LKQ Corp. (a) | 507,800 | 14,137 | |
Diversified Consumer Services - 1.7% | |||
Graham Holdings Co. | 15,400 | 10,148 | |
Grand Canyon Education, Inc. (a) | 116,700 | 14,279 | |
H&R Block, Inc. | 357,100 | 9,645 | |
34,072 | |||
Hotels, Restaurants & Leisure - 0.3% | |||
U.S. Foods Holding Corp. (a) | 156,800 | 5,203 | |
Household Durables - 1.7% | |||
iRobot Corp. (a)(b) | 39,700 | 3,787 | |
NVR, Inc. (a) | 12,500 | 30,625 | |
34,412 | |||
Internet & Direct Marketing Retail - 0.2% | |||
Liberty Interactive Corp. QVC Group Series A (a) | 130,484 | 2,899 | |
Leisure Products - 0.6% | |||
Brunswick Corp. | 220,500 | 11,695 | |
Multiline Retail - 1.8% | |||
Dollar General Corp. | 144,300 | 16,016 | |
Dollar Tree, Inc. (a) | 230,600 | 20,009 | |
36,025 | |||
Specialty Retail - 2.9% | |||
AutoZone, Inc. (a) | 21,400 | 17,314 | |
Foot Locker, Inc. | 104,400 | 5,888 | |
O'Reilly Automotive, Inc. (a) | 41,200 | 14,287 | |
Ross Stores, Inc. | 108,100 | 9,470 | |
Williams-Sonoma, Inc. (b) | 182,700 | 10,346 | |
57,305 | |||
Textiles, Apparel & Luxury Goods - 1.1% | |||
Carter's, Inc. | 107,300 | 9,925 | |
PVH Corp. | 113,700 | 12,565 | |
22,490 | |||
TOTAL CONSUMER DISCRETIONARY | 244,023 | ||
CONSUMER STAPLES - 2.9% | |||
Beverages - 0.3% | |||
Coca-Cola European Partners PLC | 143,700 | 6,975 | |
Food Products - 1.3% | |||
Conagra Brands, Inc. | 243,327 | 7,869 | |
Ingredion, Inc. | 136,000 | 14,207 | |
The J.M. Smucker Co. | 37,800 | 3,950 | |
26,026 | |||
Household Products - 0.8% | |||
Church & Dwight Co., Inc. | 64,000 | 4,236 | |
Energizer Holdings, Inc. | 127,300 | 5,707 | |
Spectrum Brands Holdings, Inc. | 114,107 | 5,635 | |
15,578 | |||
Personal Products - 0.2% | |||
Coty, Inc. Class A | 289,100 | 2,411 | |
Edgewell Personal Care Co. (a) | 22,500 | 941 | |
3,352 | |||
Tobacco - 0.3% | |||
Universal Corp. | 84,500 | 5,357 | |
TOTAL CONSUMER STAPLES | 57,288 | ||
ENERGY - 4.1% | |||
Energy Equipment & Services - 0.8% | |||
Dril-Quip, Inc. (a) | 148,100 | 5,814 | |
Ensco PLC Class A (b) | 1,296,000 | 7,348 | |
Nabors Industries Ltd. | 1,043,500 | 3,371 | |
16,533 | |||
Oil, Gas & Consumable Fuels - 3.3% | |||
Cimarex Energy Co. | 82,100 | 6,731 | |
Diamondback Energy, Inc. | 170,326 | 18,801 | |
HollyFrontier Corp. | 135,900 | 8,490 | |
PBF Energy, Inc. Class A | 188,800 | 7,303 | |
PDC Energy, Inc. (a) | 125,300 | 4,253 | |
Whiting Petroleum Corp. (a) | 128,500 | 3,890 | |
WPX Energy, Inc. (a) | 1,105,400 | 15,420 | |
64,888 | |||
TOTAL ENERGY | 81,421 | ||
FINANCIALS - 16.0% | |||
Banks - 8.2% | |||
Banco Comercial Portugues SA (Reg.) (a) | 21,200,000 | 5,955 | |
Bank of the Ozarks, Inc. | 151,000 | 4,092 | |
First Hawaiian, Inc. | 250,000 | 6,505 | |
First Horizon National Corp. | 2,470,200 | 40,734 | |
Huntington Bancshares, Inc. | 3,494,106 | 50,976 | |
PacWest Bancorp | 431,200 | 17,351 | |
Piraeus Bank SA | 997,600 | 988 | |
Popular, Inc. | 210,300 | 11,861 | |
Signature Bank | 191,300 | 23,593 | |
162,055 | |||
Capital Markets - 2.7% | |||
E*TRADE Financial Corp. | 441,800 | 23,102 | |
Monex Group, Inc. (b) | 895,900 | 3,315 | |
Morningstar, Inc. | 87,400 | 10,325 | |
Oaktree Capital Group LLC Class A | 215,000 | 8,905 | |
Virtu Financial, Inc. Class A | 268,170 | 6,750 | |
52,397 | |||
Consumer Finance - 3.1% | |||
Capital One Financial Corp. | 81,500 | 7,309 | |
OneMain Holdings, Inc. (a) | 1,128,414 | 33,029 | |
SLM Corp. (a) | 2,127,962 | 21,854 | |
62,192 | |||
Diversified Financial Services - 0.3% | |||
ECN Capital Corp. | 2,015,300 | 5,354 | |
Insurance - 1.0% | |||
Arthur J. Gallagher & Co. | 133,600 | 10,297 | |
Primerica, Inc. | 82,400 | 9,796 | |
Talanx AG | 4,700 | 168 | |
20,261 | |||
Thrifts & Mortgage Finance - 0.7% | |||
Essent Group Ltd. (a) | 348,800 | 13,450 | |
TOTAL FINANCIALS | 315,709 | ||
HEALTH CARE - 8.8% | |||
Biotechnology - 0.8% | |||
Natera, Inc. (a) | 310,000 | 5,369 | |
Sarepta Therapeutics, Inc. (a) | 88,000 | 11,393 | |
16,762 | |||
Health Care Equipment & Supplies - 4.3% | |||
Insulet Corp. (a) | 114,717 | 9,628 | |
Integra LifeSciences Holdings Corp. (a) | 260,000 | 13,944 | |
Masimo Corp. (a) | 150,000 | 16,563 | |
Penumbra, Inc. (a) | 44,000 | 6,126 | |
Teleflex, Inc. | 95,000 | 26,165 | |
Wright Medical Group NV (a) | 440,000 | 12,302 | |
84,728 | |||
Health Care Providers & Services - 2.5% | |||
Henry Schein, Inc. (a) | 104,000 | 9,277 | |
Molina Healthcare, Inc. (a) | 144,000 | 20,118 | |
Premier, Inc. (a) | 180,000 | 7,139 | |
Wellcare Health Plans, Inc. (a) | 48,400 | 12,336 | |
48,870 | |||
Health Care Technology - 0.3% | |||
Teladoc Health, Inc. (a) | 114,000 | 7,119 | |
Pharmaceuticals - 0.9% | |||
Amneal Pharmaceuticals, Inc. (c) | 297,297 | 5,265 | |
Indivior PLC (a) | 51,066 | 66 | |
Nektar Therapeutics (a) | 115,700 | 4,673 | |
Perrigo Co. PLC | 120,000 | 7,474 | |
17,478 | |||
TOTAL HEALTH CARE | 174,957 | ||
INDUSTRIALS - 14.9% | |||
Aerospace & Defense - 0.5% | |||
Esterline Technologies Corp. (a) | 83,200 | 9,878 | |
Airlines - 1.4% | |||
American Airlines Group, Inc. | 331,691 | 13,321 | |
JetBlue Airways Corp. (a) | 770,900 | 15,048 | |
28,369 | |||
Building Products - 1.3% | |||
Allegion PLC | 78,410 | 7,182 | |
Jeld-Wen Holding, Inc. (a) | 529,000 | 10,083 | |
USG Corp. | 219,100 | 9,430 | |
26,695 | |||
Commercial Services & Supplies - 0.7% | |||
ABM Industries, Inc. | 274,600 | 8,699 | |
Stericycle, Inc. (a) | 119,900 | 5,764 | |
14,463 | |||
Construction & Engineering - 2.7% | |||
AECOM (a) | 1,178,137 | 37,889 | |
Arcadis NV (b) | 1,182,512 | 14,900 | |
52,789 | |||
Electrical Equipment - 1.1% | |||
Sensata Technologies, Inc. PLC (a) | 467,551 | 21,629 | |
Machinery - 2.2% | |||
Allison Transmission Holdings, Inc. | 493,863 | 23,266 | |
IDEX Corp. | 34,358 | 4,721 | |
WABCO Holdings, Inc. (a) | 129,400 | 15,716 | |
43,703 | |||
Marine - 1.1% | |||
A.P. Moller - Maersk A/S Series B | 14,948 | 21,476 | |
Professional Services - 1.4% | |||
Nielsen Holdings PLC | 988,800 | 26,866 | |
Road & Rail - 0.3% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 157,500 | 5,459 | |
Trading Companies & Distributors - 2.2% | |||
HD Supply Holdings, Inc. (a) | 681,849 | 27,206 | |
MRC Global, Inc. (a) | 1,062,453 | 16,712 | |
43,918 | |||
TOTAL INDUSTRIALS | 295,245 | ||
INFORMATION TECHNOLOGY - 14.0% | |||
Communications Equipment - 0.1% | |||
CommScope Holding Co., Inc. (a) | 108,600 | 1,966 | |
Electronic Equipment & Components - 4.0% | |||
Avnet, Inc. | 316,000 | 13,847 | |
Belden, Inc. | 162,300 | 9,053 | |
Cognex Corp. | 209,400 | 9,218 | |
Coherent, Inc. (a) | 26,500 | 3,661 | |
Corning, Inc. | 260,600 | 8,397 | |
Jabil, Inc. | 612,400 | 15,292 | |
SYNNEX Corp. | 11,100 | 896 | |
Trimble, Inc. (a) | 241,800 | 9,196 | |
TTM Technologies, Inc. (a) | 488,500 | 5,808 | |
Vishay Intertechnology, Inc. | 206,000 | 4,295 | |
79,663 | |||
IT Services - 3.4% | |||
Akamai Technologies, Inc. (a) | 107,600 | 7,398 | |
Alliance Data Systems Corp. | 46,700 | 9,357 | |
Capgemini SA | 94,800 | 11,060 | |
Cognizant Technology Solutions Corp. Class A | 10,100 | 719 | |
ExlService Holdings, Inc. (a) | 64,400 | 3,733 | |
Gartner, Inc. (a) | 56,300 | 8,625 | |
Leidos Holdings, Inc. | 294,100 | 18,528 | |
Total System Services, Inc. | 80,400 | 7,025 | |
66,445 | |||
Semiconductors & Semiconductor Equipment - 2.1% | |||
Analog Devices, Inc. | 39,400 | 3,622 | |
Cirrus Logic, Inc. (a) | 283,800 | 10,625 | |
Lam Research Corp. | 40,100 | 6,294 | |
Microchip Technology, Inc. | 38,100 | 2,858 | |
Skyworks Solutions, Inc. | 104,200 | 7,583 | |
Versum Materials, Inc. | 321,000 | 11,119 | |
42,101 | |||
Software - 4.2% | |||
Autodesk, Inc. (a) | 20,400 | 2,948 | |
Blackbaud, Inc. | 29,400 | 2,154 | |
Box, Inc. Class A (a) | 156,200 | 2,935 | |
Check Point Software Technologies Ltd. (a) | 70,500 | 7,883 | |
Citrix Systems, Inc. | 56,400 | 6,146 | |
Constellation Software, Inc. | 13,100 | 8,985 | |
Micro Focus International PLC | 350,700 | 6,887 | |
Monotype Imaging Holdings, Inc. | 366,400 | 6,320 | |
Parametric Technology Corp. (a) | 68,900 | 5,959 | |
Pivotal Software, Inc. | 153,600 | 2,751 | |
SPS Commerce, Inc. (a) | 41,900 | 3,571 | |
Symantec Corp. | 372,400 | 8,234 | |
Ultimate Software Group, Inc. (a) | 48,500 | 12,800 | |
Workday, Inc. Class A (a) | 30,200 | 4,953 | |
82,526 | |||
Technology Hardware, Storage & Peripherals - 0.2% | |||
Western Digital Corp. | 87,900 | 3,990 | |
TOTAL INFORMATION TECHNOLOGY | 276,691 | ||
MATERIALS - 6.1% | |||
Chemicals - 2.7% | |||
Ashland Global Holdings, Inc. | 177,300 | 14,519 | |
Axalta Coating Systems Ltd. (a) | 389,900 | 9,759 | |
Olin Corp. | 459,300 | 9,889 | |
The Chemours Co. LLC | 426,000 | 12,132 | |
W.R. Grace & Co. | 91,597 | 5,848 | |
52,147 | |||
Containers & Packaging - 2.4% | |||
Aptargroup, Inc. | 150,400 | 15,649 | |
Greif, Inc. Class A | 94,900 | 4,866 | |
Packaging Corp. of America | 86,900 | 8,501 | |
Sonoco Products Co. | 328,400 | 18,896 | |
47,912 | |||
Metals & Mining - 1.0% | |||
Steel Dynamics, Inc. | 579,700 | 20,405 | |
TOTAL MATERIALS | 120,464 | ||
REAL ESTATE - 9.7% | |||
Equity Real Estate Investment Trusts (REITs) - 8.8% | |||
CareTrust (REIT), Inc. | 658,800 | 13,189 | |
CoreSite Realty Corp. | 119,400 | 11,637 | |
Corporate Office Properties Trust (SBI) | 23,096 | 565 | |
Corrections Corp. of America | 285,996 | 6,278 | |
CubeSmart | 174,400 | 5,431 | |
DiamondRock Hospitality Co. | 655,100 | 6,905 | |
Duke Realty Corp. | 462,278 | 13,156 | |
Equity Lifestyle Properties, Inc. | 101,600 | 10,112 | |
Front Yard Residential Corp. Class B | 536,121 | 4,830 | |
Healthcare Realty Trust, Inc. | 531,400 | 16,473 | |
Highwoods Properties, Inc. (SBI) | 355,800 | 15,431 | |
Outfront Media, Inc. | 370,900 | 7,707 | |
Potlatch Corp. | 230,054 | 8,535 | |
RLJ Lodging Trust | 46,900 | 954 | |
SL Green Realty Corp. | 206,900 | 19,949 | |
Spirit Realty Capital, Inc. | 1,873,900 | 13,904 | |
Taubman Centers, Inc. | 102,900 | 5,448 | |
UDR, Inc. | 202,000 | 8,609 | |
Urban Edge Properties | 277,668 | 5,537 | |
174,650 | |||
Real Estate Management & Development - 0.9% | |||
Howard Hughes Corp. (a) | 83,600 | 9,260 | |
Jones Lang LaSalle, Inc. | 62,100 | 8,893 | |
18,153 | |||
TOTAL REAL ESTATE | 192,803 | ||
UTILITIES - 5.1% | |||
Electric Utilities - 1.5% | |||
Entergy Corp. | 53,600 | 4,666 | |
Evergy, Inc. | 343,130 | 20,372 | |
Vistra Energy Corp. (a) | 200,000 | 4,696 | |
29,734 | |||
Gas Utilities - 2.4% | |||
Atmos Energy Corp. | 213,700 | 20,445 | |
National Fuel Gas Co. | 69,739 | 3,755 | |
South Jersey Industries, Inc. | 438,600 | 13,684 | |
Southwest Gas Holdings, Inc. | 127,400 | 10,035 | |
47,919 | |||
Independent Power and Renewable Electricity Producers - 0.1% | |||
NRG Energy, Inc. | 61,700 | 2,371 | |
Multi-Utilities - 0.6% | |||
Avangrid, Inc. | 67,286 | 3,390 | |
NorthWestern Energy Corp. | 15,203 | 972 | |
SCANA Corp. | 141,400 | 6,598 | |
10,960 | |||
Water Utilities - 0.5% | |||
SJW Corp. | 180,000 | 10,087 | |
TOTAL UTILITIES | 101,071 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,818,288) | 1,919,033 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 2.28% 1/17/19 | |||
(Cost $588) | 590 | 588 | |
Shares | Value (000s) | ||
Money Market Funds - 4.9% | |||
Fidelity Cash Central Fund, 2.27% (d) | 60,018,958 | $60,031 | |
Fidelity Securities Lending Cash Central Fund 2.27% (d)(e) | 37,690,125 | 37,694 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $97,722) | 97,725 | ||
TOTAL INVESTMENT IN SECURITIES - 101.8% | |||
(Cost $1,916,598) | 2,017,346 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (36,342) | ||
NET ASSETS - 100% | $1,981,004 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,265,000 or 0.3% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
Amneal Pharmaceuticals, Inc. | 5/4/18 | $5,426 |
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 | $1,226 |
Fidelity Securities Lending Cash Central Fund | 285 |
Total | $1,511 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $59,361 | $59,361 | $-- | $-- |
Consumer Discretionary | 244,023 | 244,023 | -- | -- |
Consumer Staples | 57,288 | 57,288 | -- | -- |
Energy | 81,421 | 81,421 | -- | -- |
Financials | 315,709 | 315,709 | -- | -- |
Health Care | 174,957 | 174,957 | -- | -- |
Industrials | 295,245 | 273,769 | 21,476 | -- |
Information Technology | 276,691 | 269,804 | 6,887 | -- |
Materials | 120,464 | 120,464 | -- | -- |
Real Estate | 192,803 | 192,803 | -- | -- |
Utilities | 101,071 | 101,071 | -- | -- |
U.S. Government and Government Agency Obligations | 588 | -- | 588 | -- |
Money Market Funds | 97,725 | 97,725 | -- | -- |
Total Investments in Securities: | $2,017,346 | $1,988,395 | $28,951 | $-- |
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 | 89.1% |
United Kingdom | 3.5% |
Netherlands | 1.4% |
Bermuda | 1.3% |
Denmark | 1.1% |
Others (Individually Less Than 1%) | 3.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $35,545) — See accompanying schedule: Unaffiliated issuers (cost $1,818,876) | $1,919,621 | |
Fidelity Central Funds (cost $97,722) | 97,725 | |
Total Investment in Securities (cost $1,916,598) | $2,017,346 | |
Receivable for investments sold | 40,739 | |
Receivable for fund shares sold | 986 | |
Dividends receivable | 2,226 | |
Distributions receivable from Fidelity Central Funds | 113 | |
Prepaid expenses | 4 | |
Other receivables | 138 | |
Total assets | 2,061,552 | |
Liabilities | ||
Payable to custodian bank | $2,615 | |
Payable for investments purchased | 37,072 | |
Payable for fund shares redeemed | 1,460 | |
Accrued management fee | 814 | |
Distribution and service plan fees payable | 430 | |
Other affiliated payables | 399 | |
Other payables and accrued expenses | 65 | |
Collateral on securities loaned | 37,693 | |
Total liabilities | 80,548 | |
Net Assets | $1,981,004 | |
Net Assets consist of: | ||
Paid in capital | $1,573,387 | |
Total distributable earnings (loss) | 407,617 | |
Net Assets | $1,981,004 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($532,298 ÷ 13,552.59 shares) | $39.28 | |
Maximum offering price per share (100/94.25 of $39.28) | $41.68 | |
Class M: | ||
Net Asset Value and redemption price per share ($535,728 ÷ 13,586.75 shares) | $39.43 | |
Maximum offering price per share (100/96.50 of $39.43) | $40.86 | |
Class C: | ||
Net Asset Value and offering price per share ($113,882 ÷ 3,192.98 shares)(a) | $35.67 | |
Fidelity Stock Selector Mid Cap Fund: | ||
Net Asset Value, offering price and redemption price per share ($502,203 ÷ 12,248.99 shares) | $41.00 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($278,852 ÷ 6,783.74 shares) | $41.11 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($18,041 ÷ 438.38 shares) | $41.15 |
(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, 2018 | |
Investment Income | ||
Dividends | $33,772 | |
Interest | 59 | |
Income from Fidelity Central Funds | 1,511 | |
Total income | 35,342 | |
Expenses | ||
Management fee | ||
Basic fee | $12,368 | |
Performance adjustment | (2,188) | |
Transfer agent fees | 4,784 | |
Distribution and service plan fees | 5,648 | |
Accounting and security lending fees | 697 | |
Custodian fees and expenses | 65 | |
Independent trustees' fees and expenses | 12 | |
Registration fees | 119 | |
Audit | 60 | |
Legal | 12 | |
Miscellaneous | 16 | |
Total expenses before reductions | 21,593 | |
Expense reductions | (389) | |
Total expenses after reductions | 21,204 | |
Net investment income (loss) | 14,138 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 362,072 | |
Fidelity Central Funds | (1) | |
Foreign currency transactions | (21) | |
Futures contracts | (2,223) | |
Total net realized gain (loss) | 359,827 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (287,659) | |
Assets and liabilities in foreign currencies | (2) | |
Futures contracts | (840) | |
Total change in net unrealized appreciation (depreciation) | (288,501) | |
Net gain (loss) | 71,326 | |
Net increase (decrease) in net assets resulting from operations | $85,464 |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $14,138 | $7,692 |
Net realized gain (loss) | 359,827 | 194,741 |
Change in net unrealized appreciation (depreciation) | (288,501) | 222,265 |
Net increase (decrease) in net assets resulting from operations | 85,464 | 424,698 |
Distributions to shareholders | (110,481) | – |
Distributions to shareholders from net investment income | – | (10,708) |
Distributions to shareholders from net realized gain | – | (333) |
Total distributions | (110,481) | (11,041) |
Share transactions - net increase (decrease) | (543,193) | 112,615 |
Total increase (decrease) in net assets | (568,210) | 526,272 |
Net Assets | ||
Beginning of period | 2,549,214 | 2,022,942 |
End of period | $1,981,004 | $2,549,214 |
Other Information | ||
Undistributed net investment income end of period | $5,629 |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.74 | $33.13 | $32.01 | $31.80 | $28.37 |
Income from Investment Operations | |||||
Net investment income (loss)A | .26 | .13 | .20 | .08 | .08 |
Net realized and unrealized gain (loss) | 1.04 | 6.68 | 1.49 | .13 | 3.36 |
Total from investment operations | 1.30 | 6.81 | 1.69 | .21 | 3.44 |
Distributions from net investment income | (.11) | (.19) | (.04) | – | (.01) |
Distributions from net realized gain | (1.65) | (.01) | (.53) | – | – |
Total distributions | (1.76) | (.20) | (.57) | – | (.01) |
Net asset value, end of period | $39.28 | $39.74 | $33.13 | $32.01 | $31.80 |
Total ReturnB,C | 3.36% | 20.64% | 5.49% | .66% | 12.11% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .93% | .87% | .88% | .98% | 1.05% |
Expenses net of fee waivers, if any | .92% | .87% | .88% | .98% | 1.05% |
Expenses net of all reductions | .91% | .86% | .88% | .97% | 1.05% |
Net investment income (loss) | .64% | .36% | .64% | .24% | .26% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $532 | $564 | $546 | $593 | $652 |
Portfolio turnover rateF | 81% | 84% | 98% | 109% | 89% |
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.
Fidelity Advisor Stock Selector Mid Cap Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.89 | $33.25 | $32.16 | $32.02 | $28.63 |
Income from Investment Operations | |||||
Net investment income (loss)A | .16 | .04 | .13 | – | .01 |
Net realized and unrealized gain (loss) | 1.04 | 6.71 | 1.49 | .14 | 3.38 |
Total from investment operations | 1.20 | 6.75 | 1.62 | .14 | 3.39 |
Distributions from net investment income | (.01) | (.11) | – | – | – |
Distributions from net realized gain | (1.65) | (.01) | (.53) | – | – |
Total distributions | (1.66) | (.11)B | (.53) | – | – |
Net asset value, end of period | $39.43 | $39.89 | $33.25 | $32.16 | $32.02 |
Total ReturnC,D | 3.10% | 20.37% | 5.22% | .44% | 11.84% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.17% | 1.11% | 1.12% | 1.22% | 1.28% |
Expenses net of fee waivers, if any | 1.17% | 1.11% | 1.12% | 1.21% | 1.28% |
Expenses net of all reductions | 1.15% | 1.10% | 1.11% | 1.21% | 1.27% |
Net investment income (loss) | .39% | .11% | .41% | .01% | .03% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $536 | $606 | $591 | $681 | $794 |
Portfolio turnover rateG | 81% | 84% | 98% | 109% | 89% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.11 per share is comprised of distributions from net investment income of $.106 and distributions from net realized gain of $.006 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 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.
Fidelity Advisor Stock Selector Mid Cap Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $36.25 | $30.28 | $29.48 | $29.51 | $26.52 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.05) | (.13) | (.03) | (.15) | (.14) |
Net realized and unrealized gain (loss) | .96 | 6.10 | 1.36 | .12 | 3.13 |
Total from investment operations | .91 | 5.97 | 1.33 | (.03) | 2.99 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (1.49) | – | (.53) | – | – |
Total distributions | (1.49) | – | (.53) | – | – |
Net asset value, end of period | $35.67 | $36.25 | $30.28 | $29.48 | $29.51 |
Total ReturnB,C | 2.59% | 19.72% | 4.71% | (.10)% | 11.27% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.69% | 1.63% | 1.63% | 1.74% | 1.80% |
Expenses net of fee waivers, if any | 1.69% | 1.63% | 1.63% | 1.73% | 1.80% |
Expenses net of all reductions | 1.67% | 1.62% | 1.63% | 1.73% | 1.80% |
Net investment income (loss) | (.12)% | (.40)% | (.11)% | (.51)% | (.49)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $114 | $142 | $140 | $155 | $172 |
Portfolio turnover rateF | 81% | 84% | 98% | 109% | 89% |
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.
Fidelity Stock Selector Mid Cap Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.43 | $34.53 | $33.34 | $33.14 | $29.56 |
Income from Investment Operations | |||||
Net investment income (loss)A | .33 | .20 | .28 | .16 | .16 |
Net realized and unrealized gain (loss) | 1.09 | 6.96 | 1.55 | .14 | 3.49 |
Total from investment operations | 1.42 | 7.16 | 1.83 | .30 | 3.65 |
Distributions from net investment income | (.20) | (.26) | (.12) | (.10) | (.07) |
Distributions from net realized gain | (1.65) | (.01) | (.53) | – | – |
Total distributions | (1.85) | (.26)B | (.64)C | (.10) | (.07) |
Net asset value, end of period | $41.00 | $41.43 | $34.53 | $33.34 | $33.14 |
Total ReturnD | 3.53% | 20.87% | 5.73% | .90% | 12.38% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .77% | .70% | .64% | .75% | .81% |
Expenses net of fee waivers, if any | .76% | .70% | .64% | .74% | .81% |
Expenses net of all reductions | .75% | .69% | .63% | .74% | .81% |
Net investment income (loss) | .80% | .53% | .89% | .48% | .50% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $502 | $545 | $222 | $486 | $553 |
Portfolio turnover rateG | 81% | 84% | 98% | 109% | 89% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.26 per share is comprised of distributions from net investment income of $.255 and distributions from net realized gain of $.006 per share.
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 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.
Fidelity Advisor Stock Selector Mid Cap Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.51 | $34.60 | $33.39 | $33.22 | $29.64 |
Income from Investment Operations | |||||
Net investment income (loss)A | .36 | .23 | .28 | .13 | .16 |
Net realized and unrealized gain (loss) | 1.10 | 6.96 | 1.56 | .14 | 3.50 |
Total from investment operations | 1.46 | 7.19 | 1.84 | .27 | 3.66 |
Distributions from net investment income | (.21) | (.27) | (.11) | (.10) | (.08) |
Distributions from net realized gain | (1.65) | (.01) | (.53) | – | – |
Total distributions | (1.86) | (.28) | (.63)B | (.10) | (.08) |
Net asset value, end of period | $41.11 | $41.51 | $34.60 | $33.39 | $33.22 |
Total ReturnC | 3.62% | 20.92% | 5.75% | .80% | 12.39% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .69% | .63% | .64% | .83% | .80% |
Expenses net of fee waivers, if any | .69% | .63% | .64% | .83% | .80% |
Expenses net of all reductions | .67% | .62% | .64% | .82% | .80% |
Net investment income (loss) | .87% | .60% | .88% | .39% | .51% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $279 | $683 | $523 | $479 | $371 |
Portfolio turnover rateF | 81% | 84% | 98% | 109% | 89% |
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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Stock Selector Mid Cap Fund Class Z
Years ended November 30, | 2018 | 2017 A |
Selected Per–Share Data | ||
Net asset value, beginning of period | $41.57 | $35.79 |
Income from Investment Operations | ||
Net investment income (loss)B | .43 | .23 |
Net realized and unrealized gain (loss) | 1.08 | 5.55 |
Total from investment operations | 1.51 | 5.78 |
Distributions from net investment income | (.28) | – |
Distributions from net realized gain | (1.65) | – |
Total distributions | (1.93) | – |
Net asset value, end of period | $41.15 | $41.57 |
Total ReturnC,D | 3.75% | 16.15% |
Ratios to Average Net AssetsE,F | ||
Expenses before reductions | .53% | .48%G |
Expenses net of fee waivers, if any | .53% | .47%G |
Expenses net of all reductions | .52% | .46%G |
Net investment income (loss) | 1.03% | .69%G |
Supplemental Data | ||
Net assets, end of period (in millions) | $18 | $9 |
Portfolio turnover rateH | 81% | 84% |
A For the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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, 2018
(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 M, Class C, Fidelity Stock Selector Mid Cap Fund, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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.
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, 2018, 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 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, 2018, 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 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, foreign currency transactions, market discount, deferred trustees compensation, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $223,340 |
Gross unrealized depreciation | (127,908) |
Net unrealized appreciation (depreciation) | $95,432 |
Tax Cost | $1,921,914 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $29,180 |
Undistributed long-term capital gain | $283,014 |
Net unrealized appreciation (depreciation) on securities and other investments | $95,422 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $53,420 | $ 11,041 |
Long-term Capital Gains | 57,061 | – |
Total | $110,481 | $ 11,041 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period�� |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
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 on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,787,961 and $2,392,660, 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 .24% 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 .45% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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% | $1,412 | $18 |
Class M | .25% | .25% | 2,939 | 44 |
Class C | .75% | .25% | 1,297 | 31 |
$5,648 | $93 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $30 |
Class M | 10 |
Class C(a) | 2 |
$42 |
(a) When 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 | $1,055 | .19 |
Class M | 1,060 | .18 |
Class C | 257 | .20 |
Fidelity Stock Selector Mid Cap Fund | 1,493 | .28 |
Class I | 912 | .20 |
Class Z | 7 | .05 |
$4,784 |
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. For the period, the fees were equivalent to an annual rate of .03%.
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 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 $93.
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 $6 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 $285, including $2 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 $364 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 $25.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $24,662 | $– |
Class M | 24,902 | – |
Class C | 5,817 | – |
Fidelity Stock Selector Mid Cap Fund | 23,962 | – |
Class I | 30,651 | – |
Class Z | 487 | – |
Total | $110,481 | $– |
From net investment income | ||
Class A | $– | $3,079 |
Class M | – | 1,865 |
Fidelity Stock Selector Mid Cap Fund | – | 1,644 |
Class I | – | 4,120 |
Total | $– | $10,708 |
From net realized gain | ||
Class A | $– | $98 |
Class M | – | 105 |
Fidelity Stock Selector Mid Cap Fund | – | 39 |
Class I | – | 91 |
Total | $– | $333 |
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, 2018 | Year ended November 30, 2017(a) | Year ended November 30, 2018 | Year ended November 30, 2017(a) | |
Class A | ||||
Shares sold | 1,009 | 914 | $40,393 | $33,050 |
Reinvestment of distributions | 603 | 88 | 23,126 | 2,963 |
Shares redeemed | (2,254) | (3,286) | (89,934) | (118,879) |
Net increase (decrease) | (642) | (2,284) | $(26,415) | $(82,866) |
Class M | ||||
Shares sold | 943 | 1,370 | $37,889 | $50,634 |
Reinvestment of distributions | 628 | 55 | 24,265 | 1,885 |
Shares redeemed | (3,179) | (4,007) | (127,217) | (145,515) |
Net increase (decrease) | (1,608) | (2,582) | $(65,063) | $(92,996) |
Class C | ||||
Shares sold | 105 | 131 | $3,842 | $4,256 |
Reinvestment of distributions | 153 | – | 5,355 | – |
Shares redeemed | (989) | (835) | (35,928) | (27,684) |
Net increase (decrease) | (731) | (704) | $(26,731) | $(23,428) |
Fidelity Stock Selector Mid Cap Fund | ||||
Shares sold | 2,202 | 8,585 | $91,837 | $325,907 |
Reinvestment of distributions | 590 | 47 | 23,601 | 1,639 |
Shares redeemed | (3,700) | (1,916) | (155,546) | (73,800) |
Net increase (decrease) | (908) | 6,716 | $(40,108) | $253,746 |
Class I | ||||
Shares sold | 12,470 | 4,203 | $506,015 | $158,956 |
Reinvestment of distributions | 746 | 114 | 29,881 | 4,019 |
Shares redeemed | (22,883) | (2,996) | (930,143) | (113,072) |
Net increase (decrease) | (9,667) | 1,321 | $(394,247) | $49,903 |
Class Z | ||||
Shares sold | 265 | 234 | $11,054 | $9,125 |
Reinvestment of distributions | 12 | – | 461 | – |
Shares redeemed | (51) | (22) | (2,144) | (869) |
Net increase (decrease) | 226 | 212 | $9,371 | $8,256 |
(a) Share transactions for Class Z are for the period February 1, 2017 (commencement of sale of shares) to November 30, 2018.
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:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 11, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, which was eliminated effective August 1, 2018, 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, which was eliminated effective August 1, 2018, 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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .94% | |||
Actual | $1,000.00 | $981.00 | $4.67 | |
Hypothetical-C | $1,000.00 | $1,020.36 | $4.76 | |
Class M | 1.19% | |||
Actual | $1,000.00 | $979.60 | $5.91 | |
Hypothetical-C | $1,000.00 | $1,019.10 | $6.02 | |
Class C | 1.71% | |||
Actual | $1,000.00 | $977.30 | $8.48 | |
Hypothetical-C | $1,000.00 | $1,016.50 | $8.64 | |
Fidelity Stock Selector Mid Cap Fund | .78% | |||
Actual | $1,000.00 | $981.80 | $3.88 | |
Hypothetical-C | $1,000.00 | $1,021.16 | $3.95 | |
Class I | .70% | |||
Actual | $1,000.00 | $982.30 | $3.48 | |
Hypothetical-C | $1,000.00 | $1,021.56 | $3.55 | |
Class Z | .55% | |||
Actual | $1,000.00 | $982.80 | $2.73 | |
Hypothetical-C | $1,000.00 | $1,022.31 | $2.79 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity 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 | 12/27/2018 | 12/26/2018 | $0.251 | $6.011 |
Class M | 12/27/2018 | 12/26/2018 | $0.140 | $6.011 |
Class C | 12/27/2018 | 12/26/2018 | $0.000 | $5.965 |
Fidelity Stock Selector Mid Cap Fund | 12/27/2018 | 12/26/2018 | $0.319 | $6.011 |
Class I | 12/27/2018 | 12/26/2018 | $0.306 | $6.011 |
Class Z | 12/27/2018 | 12/26/2018 | $0.415 | $6.011 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018 $283,198,718, or, if subsequently determined to be different, the net capital gain of such year.
Class A designates 35%; Class M designates 39%; Class C designates 51%; Fidelity Stock Selector Mid Cap Fund designates 32%; Class I designates 31% and Class Z designates 29% of the dividends distributed in December 2017, during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A designates 39%; Class M designates 43%; Class C designates 56%; Fidelity Stock Selector Mid Cap Fund designates 35%; Class I designates 34% and Class Z designates 32% of the dividends distributed in December 2017, 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Stock Selector Mid Cap Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
MC-ANN-0119
1.539186.121
Fidelity® Stock Selector Mid Cap Fund Annual Report November 30, 2018 Fidelity® Stock Selector Mid Cap Fund is a class of Fidelity Advisor® Stock Selector Mid Cap Fund |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Stock Selector Mid Cap Fund | 3.53% | 8.45% | 15.36% |
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, 2008.
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/0001379491-19-000231/img446435331_740.jpg)
Period Ending Values | ||
$41,755 | Fidelity® Stock Selector Mid Cap Fund | |
$42,624 | S&P MidCap 400® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Co-Portfolio Manager Robert Stansky: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 3% to 4%, well ahead of the 0.48% advance of the benchmark S&P MidCap 400® Index. Stock selection drove the vast majority of the fund’s outperformance of the benchmark, most notably in the consumer discretionary, financials and health care sectors. Sarepta Therapeutics, a non-benchmark stock we bought this period, gained 129% for the fund and added the most relative value among our individual holdings. Teladoc Health is another health care contributor worthy of mention. We took advantage of the strong appreciation in this stock to reduce the fund's non-benchmark position, which gained roughly 70% the past 12 months. Market-maker Virtu Financial, also a non-benchmark holding,gained 67% and also lifted the fund’s relative result. Conversely, stock picking in real estate and materials detracted from relative performance. At the stock level, avoiding Abiomed hurt most versus the benchmark, as the stock surged 99% from the beginning of the period until it dropped out of the fund's benchmark in May. Establishing a non-benchmark position in shares of Netherlands-based construction & engineering firm Arcadis also hurt.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.
Notes to shareholders: On March 1, 2018, Ali Khan was named a Co-Manager of the fund, succeeding Christopher Lin in managing the information technology and telecommunication services sleeves. On September 24, 2018, Gordon Scott assumed portfolio management responsibilities for the fund’s telecom subportfolio, succeeding Ali Khan.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Huntington Bancshares, Inc. | 2.6 |
First Horizon National Corp. | 2.1 |
AECOM | 1.9 |
OneMain Holdings, Inc. | 1.6 |
NVR, Inc. | 1.5 |
HD Supply Holdings, Inc. | 1.4 |
Nielsen Holdings PLC | 1.4 |
Teleflex, Inc. | 1.3 |
Gentex Corp. | 1.3 |
Signature Bank | 1.2 |
16.3 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 16.0 |
Industrials | 14.9 |
Information Technology | 14.0 |
Consumer Discretionary | 12.3 |
Real Estate | 9.7 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 96.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.1% |
* Foreign investments - 10.9%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 96.9% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 3.0% | |||
Entertainment - 1.0% | |||
Cinemark Holdings, Inc. | 213,928 | $8,208 | |
Electronic Arts, Inc. (a) | 103,600 | 8,710 | |
The Madison Square Garden Co. (a) | 6,997 | 1,889 | |
18,807 | |||
Media - 2.0% | |||
AMC Networks, Inc. Class A (a) | 86,405 | 5,172 | |
Discovery Communications, Inc. Class A (a)(b) | 174,180 | 5,351 | |
GCI Liberty, Inc. (a) | 134,124 | 6,421 | |
Interpublic Group of Companies, Inc. | 213,051 | 5,007 | |
Liberty Broadband Corp. Class A (a) | 116,887 | 9,951 | |
Liberty Media Corp. Liberty Media Class A (a) | 105,036 | 3,027 | |
Omnicom Group, Inc. | 73,082 | 5,625 | |
40,554 | |||
TOTAL COMMUNICATION SERVICES | 59,361 | ||
CONSUMER DISCRETIONARY - 12.3% | |||
Auto Components - 1.3% | |||
Gentex Corp. | 1,145,000 | 25,785 | |
Distributors - 0.7% | |||
LKQ Corp. (a) | 507,800 | 14,137 | |
Diversified Consumer Services - 1.7% | |||
Graham Holdings Co. | 15,400 | 10,148 | |
Grand Canyon Education, Inc. (a) | 116,700 | 14,279 | |
H&R Block, Inc. | 357,100 | 9,645 | |
34,072 | |||
Hotels, Restaurants & Leisure - 0.3% | |||
U.S. Foods Holding Corp. (a) | 156,800 | 5,203 | |
Household Durables - 1.7% | |||
iRobot Corp. (a)(b) | 39,700 | 3,787 | |
NVR, Inc. (a) | 12,500 | 30,625 | |
34,412 | |||
Internet & Direct Marketing Retail - 0.2% | |||
Liberty Interactive Corp. QVC Group Series A (a) | 130,484 | 2,899 | |
Leisure Products - 0.6% | |||
Brunswick Corp. | 220,500 | 11,695 | |
Multiline Retail - 1.8% | |||
Dollar General Corp. | 144,300 | 16,016 | |
Dollar Tree, Inc. (a) | 230,600 | 20,009 | |
36,025 | |||
Specialty Retail - 2.9% | |||
AutoZone, Inc. (a) | 21,400 | 17,314 | |
Foot Locker, Inc. | 104,400 | 5,888 | |
O'Reilly Automotive, Inc. (a) | 41,200 | 14,287 | |
Ross Stores, Inc. | 108,100 | 9,470 | |
Williams-Sonoma, Inc. (b) | 182,700 | 10,346 | |
57,305 | |||
Textiles, Apparel & Luxury Goods - 1.1% | |||
Carter's, Inc. | 107,300 | 9,925 | |
PVH Corp. | 113,700 | 12,565 | |
22,490 | |||
TOTAL CONSUMER DISCRETIONARY | 244,023 | ||
CONSUMER STAPLES - 2.9% | |||
Beverages - 0.3% | |||
Coca-Cola European Partners PLC | 143,700 | 6,975 | |
Food Products - 1.3% | |||
Conagra Brands, Inc. | 243,327 | 7,869 | |
Ingredion, Inc. | 136,000 | 14,207 | |
The J.M. Smucker Co. | 37,800 | 3,950 | |
26,026 | |||
Household Products - 0.8% | |||
Church & Dwight Co., Inc. | 64,000 | 4,236 | |
Energizer Holdings, Inc. | 127,300 | 5,707 | |
Spectrum Brands Holdings, Inc. | 114,107 | 5,635 | |
15,578 | |||
Personal Products - 0.2% | |||
Coty, Inc. Class A | 289,100 | 2,411 | |
Edgewell Personal Care Co. (a) | 22,500 | 941 | |
3,352 | |||
Tobacco - 0.3% | |||
Universal Corp. | 84,500 | 5,357 | |
TOTAL CONSUMER STAPLES | 57,288 | ||
ENERGY - 4.1% | |||
Energy Equipment & Services - 0.8% | |||
Dril-Quip, Inc. (a) | 148,100 | 5,814 | |
Ensco PLC Class A (b) | 1,296,000 | 7,348 | |
Nabors Industries Ltd. | 1,043,500 | 3,371 | |
16,533 | |||
Oil, Gas & Consumable Fuels - 3.3% | |||
Cimarex Energy Co. | 82,100 | 6,731 | |
Diamondback Energy, Inc. | 170,326 | 18,801 | |
HollyFrontier Corp. | 135,900 | 8,490 | |
PBF Energy, Inc. Class A | 188,800 | 7,303 | |
PDC Energy, Inc. (a) | 125,300 | 4,253 | |
Whiting Petroleum Corp. (a) | 128,500 | 3,890 | |
WPX Energy, Inc. (a) | 1,105,400 | 15,420 | |
64,888 | |||
TOTAL ENERGY | 81,421 | ||
FINANCIALS - 16.0% | |||
Banks - 8.2% | |||
Banco Comercial Portugues SA (Reg.) (a) | 21,200,000 | 5,955 | |
Bank of the Ozarks, Inc. | 151,000 | 4,092 | |
First Hawaiian, Inc. | 250,000 | 6,505 | |
First Horizon National Corp. | 2,470,200 | 40,734 | |
Huntington Bancshares, Inc. | 3,494,106 | 50,976 | |
PacWest Bancorp | 431,200 | 17,351 | |
Piraeus Bank SA | 997,600 | 988 | |
Popular, Inc. | 210,300 | 11,861 | |
Signature Bank | 191,300 | 23,593 | |
162,055 | |||
Capital Markets - 2.7% | |||
E*TRADE Financial Corp. | 441,800 | 23,102 | |
Monex Group, Inc. (b) | 895,900 | 3,315 | |
Morningstar, Inc. | 87,400 | 10,325 | |
Oaktree Capital Group LLC Class A | 215,000 | 8,905 | |
Virtu Financial, Inc. Class A | 268,170 | 6,750 | |
52,397 | |||
Consumer Finance - 3.1% | |||
Capital One Financial Corp. | 81,500 | 7,309 | |
OneMain Holdings, Inc. (a) | 1,128,414 | 33,029 | |
SLM Corp. (a) | 2,127,962 | 21,854 | |
62,192 | |||
Diversified Financial Services - 0.3% | |||
ECN Capital Corp. | 2,015,300 | 5,354 | |
Insurance - 1.0% | |||
Arthur J. Gallagher & Co. | 133,600 | 10,297 | |
Primerica, Inc. | 82,400 | 9,796 | |
Talanx AG | 4,700 | 168 | |
20,261 | |||
Thrifts & Mortgage Finance - 0.7% | |||
Essent Group Ltd. (a) | 348,800 | 13,450 | |
TOTAL FINANCIALS | 315,709 | ||
HEALTH CARE - 8.8% | |||
Biotechnology - 0.8% | |||
Natera, Inc. (a) | 310,000 | 5,369 | |
Sarepta Therapeutics, Inc. (a) | 88,000 | 11,393 | |
16,762 | |||
Health Care Equipment & Supplies - 4.3% | |||
Insulet Corp. (a) | 114,717 | 9,628 | |
Integra LifeSciences Holdings Corp. (a) | 260,000 | 13,944 | |
Masimo Corp. (a) | 150,000 | 16,563 | |
Penumbra, Inc. (a) | 44,000 | 6,126 | |
Teleflex, Inc. | 95,000 | 26,165 | |
Wright Medical Group NV (a) | 440,000 | 12,302 | |
84,728 | |||
Health Care Providers & Services - 2.5% | |||
Henry Schein, Inc. (a) | 104,000 | 9,277 | |
Molina Healthcare, Inc. (a) | 144,000 | 20,118 | |
Premier, Inc. (a) | 180,000 | 7,139 | |
Wellcare Health Plans, Inc. (a) | 48,400 | 12,336 | |
48,870 | |||
Health Care Technology - 0.3% | |||
Teladoc Health, Inc. (a) | 114,000 | 7,119 | |
Pharmaceuticals - 0.9% | |||
Amneal Pharmaceuticals, Inc. (c) | 297,297 | 5,265 | |
Indivior PLC (a) | 51,066 | 66 | |
Nektar Therapeutics (a) | 115,700 | 4,673 | |
Perrigo Co. PLC | 120,000 | 7,474 | |
17,478 | |||
TOTAL HEALTH CARE | 174,957 | ||
INDUSTRIALS - 14.9% | |||
Aerospace & Defense - 0.5% | |||
Esterline Technologies Corp. (a) | 83,200 | 9,878 | |
Airlines - 1.4% | |||
American Airlines Group, Inc. | 331,691 | 13,321 | |
JetBlue Airways Corp. (a) | 770,900 | 15,048 | |
28,369 | |||
Building Products - 1.3% | |||
Allegion PLC | 78,410 | 7,182 | |
Jeld-Wen Holding, Inc. (a) | 529,000 | 10,083 | |
USG Corp. | 219,100 | 9,430 | |
26,695 | |||
Commercial Services & Supplies - 0.7% | |||
ABM Industries, Inc. | 274,600 | 8,699 | |
Stericycle, Inc. (a) | 119,900 | 5,764 | |
14,463 | |||
Construction & Engineering - 2.7% | |||
AECOM (a) | 1,178,137 | 37,889 | |
Arcadis NV (b) | 1,182,512 | 14,900 | |
52,789 | |||
Electrical Equipment - 1.1% | |||
Sensata Technologies, Inc. PLC (a) | 467,551 | 21,629 | |
Machinery - 2.2% | |||
Allison Transmission Holdings, Inc. | 493,863 | 23,266 | |
IDEX Corp. | 34,358 | 4,721 | |
WABCO Holdings, Inc. (a) | 129,400 | 15,716 | |
43,703 | |||
Marine - 1.1% | |||
A.P. Moller - Maersk A/S Series B | 14,948 | 21,476 | |
Professional Services - 1.4% | |||
Nielsen Holdings PLC | 988,800 | 26,866 | |
Road & Rail - 0.3% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 157,500 | 5,459 | |
Trading Companies & Distributors - 2.2% | |||
HD Supply Holdings, Inc. (a) | 681,849 | 27,206 | |
MRC Global, Inc. (a) | 1,062,453 | 16,712 | |
43,918 | |||
TOTAL INDUSTRIALS | 295,245 | ||
INFORMATION TECHNOLOGY - 14.0% | |||
Communications Equipment - 0.1% | |||
CommScope Holding Co., Inc. (a) | 108,600 | 1,966 | |
Electronic Equipment & Components - 4.0% | |||
Avnet, Inc. | 316,000 | 13,847 | |
Belden, Inc. | 162,300 | 9,053 | |
Cognex Corp. | 209,400 | 9,218 | |
Coherent, Inc. (a) | 26,500 | 3,661 | |
Corning, Inc. | 260,600 | 8,397 | |
Jabil, Inc. | 612,400 | 15,292 | |
SYNNEX Corp. | 11,100 | 896 | |
Trimble, Inc. (a) | 241,800 | 9,196 | |
TTM Technologies, Inc. (a) | 488,500 | 5,808 | |
Vishay Intertechnology, Inc. | 206,000 | 4,295 | |
79,663 | |||
IT Services - 3.4% | |||
Akamai Technologies, Inc. (a) | 107,600 | 7,398 | |
Alliance Data Systems Corp. | 46,700 | 9,357 | |
Capgemini SA | 94,800 | 11,060 | |
Cognizant Technology Solutions Corp. Class A | 10,100 | 719 | |
ExlService Holdings, Inc. (a) | 64,400 | 3,733 | |
Gartner, Inc. (a) | 56,300 | 8,625 | |
Leidos Holdings, Inc. | 294,100 | 18,528 | |
Total System Services, Inc. | 80,400 | 7,025 | |
66,445 | |||
Semiconductors & Semiconductor Equipment - 2.1% | |||
Analog Devices, Inc. | 39,400 | 3,622 | |
Cirrus Logic, Inc. (a) | 283,800 | 10,625 | |
Lam Research Corp. | 40,100 | 6,294 | |
Microchip Technology, Inc. | 38,100 | 2,858 | |
Skyworks Solutions, Inc. | 104,200 | 7,583 | |
Versum Materials, Inc. | 321,000 | 11,119 | |
42,101 | |||
Software - 4.2% | |||
Autodesk, Inc. (a) | 20,400 | 2,948 | |
Blackbaud, Inc. | 29,400 | 2,154 | |
Box, Inc. Class A (a) | 156,200 | 2,935 | |
Check Point Software Technologies Ltd. (a) | 70,500 | 7,883 | |
Citrix Systems, Inc. | 56,400 | 6,146 | |
Constellation Software, Inc. | 13,100 | 8,985 | |
Micro Focus International PLC | 350,700 | 6,887 | |
Monotype Imaging Holdings, Inc. | 366,400 | 6,320 | |
Parametric Technology Corp. (a) | 68,900 | 5,959 | |
Pivotal Software, Inc. | 153,600 | 2,751 | |
SPS Commerce, Inc. (a) | 41,900 | 3,571 | |
Symantec Corp. | 372,400 | 8,234 | |
Ultimate Software Group, Inc. (a) | 48,500 | 12,800 | |
Workday, Inc. Class A (a) | 30,200 | 4,953 | |
82,526 | |||
Technology Hardware, Storage & Peripherals - 0.2% | |||
Western Digital Corp. | 87,900 | 3,990 | |
TOTAL INFORMATION TECHNOLOGY | 276,691 | ||
MATERIALS - 6.1% | |||
Chemicals - 2.7% | |||
Ashland Global Holdings, Inc. | 177,300 | 14,519 | |
Axalta Coating Systems Ltd. (a) | 389,900 | 9,759 | |
Olin Corp. | 459,300 | 9,889 | |
The Chemours Co. LLC | 426,000 | 12,132 | |
W.R. Grace & Co. | 91,597 | 5,848 | |
52,147 | |||
Containers & Packaging - 2.4% | |||
Aptargroup, Inc. | 150,400 | 15,649 | |
Greif, Inc. Class A | 94,900 | 4,866 | |
Packaging Corp. of America | 86,900 | 8,501 | |
Sonoco Products Co. | 328,400 | 18,896 | |
47,912 | |||
Metals & Mining - 1.0% | |||
Steel Dynamics, Inc. | 579,700 | 20,405 | |
TOTAL MATERIALS | 120,464 | ||
REAL ESTATE - 9.7% | |||
Equity Real Estate Investment Trusts (REITs) - 8.8% | |||
CareTrust (REIT), Inc. | 658,800 | 13,189 | |
CoreSite Realty Corp. | 119,400 | 11,637 | |
Corporate Office Properties Trust (SBI) | 23,096 | 565 | |
Corrections Corp. of America | 285,996 | 6,278 | |
CubeSmart | 174,400 | 5,431 | |
DiamondRock Hospitality Co. | 655,100 | 6,905 | |
Duke Realty Corp. | 462,278 | 13,156 | |
Equity Lifestyle Properties, Inc. | 101,600 | 10,112 | |
Front Yard Residential Corp. Class B | 536,121 | 4,830 | |
Healthcare Realty Trust, Inc. | 531,400 | 16,473 | |
Highwoods Properties, Inc. (SBI) | 355,800 | 15,431 | |
Outfront Media, Inc. | 370,900 | 7,707 | |
Potlatch Corp. | 230,054 | 8,535 | |
RLJ Lodging Trust | 46,900 | 954 | |
SL Green Realty Corp. | 206,900 | 19,949 | |
Spirit Realty Capital, Inc. | 1,873,900 | 13,904 | |
Taubman Centers, Inc. | 102,900 | 5,448 | |
UDR, Inc. | 202,000 | 8,609 | |
Urban Edge Properties | 277,668 | 5,537 | |
174,650 | |||
Real Estate Management & Development - 0.9% | |||
Howard Hughes Corp. (a) | 83,600 | 9,260 | |
Jones Lang LaSalle, Inc. | 62,100 | 8,893 | |
18,153 | |||
TOTAL REAL ESTATE | 192,803 | ||
UTILITIES - 5.1% | |||
Electric Utilities - 1.5% | |||
Entergy Corp. | 53,600 | 4,666 | |
Evergy, Inc. | 343,130 | 20,372 | |
Vistra Energy Corp. (a) | 200,000 | 4,696 | |
29,734 | |||
Gas Utilities - 2.4% | |||
Atmos Energy Corp. | 213,700 | 20,445 | |
National Fuel Gas Co. | 69,739 | 3,755 | |
South Jersey Industries, Inc. | 438,600 | 13,684 | |
Southwest Gas Holdings, Inc. | 127,400 | 10,035 | |
47,919 | |||
Independent Power and Renewable Electricity Producers - 0.1% | |||
NRG Energy, Inc. | 61,700 | 2,371 | |
Multi-Utilities - 0.6% | |||
Avangrid, Inc. | 67,286 | 3,390 | |
NorthWestern Energy Corp. | 15,203 | 972 | |
SCANA Corp. | 141,400 | 6,598 | |
10,960 | |||
Water Utilities - 0.5% | |||
SJW Corp. | 180,000 | 10,087 | |
TOTAL UTILITIES | 101,071 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,818,288) | 1,919,033 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 2.28% 1/17/19 | |||
(Cost $588) | 590 | 588 | |
Shares | Value (000s) | ||
Money Market Funds - 4.9% | |||
Fidelity Cash Central Fund, 2.27% (d) | 60,018,958 | $60,031 | |
Fidelity Securities Lending Cash Central Fund 2.27% (d)(e) | 37,690,125 | 37,694 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $97,722) | 97,725 | ||
TOTAL INVESTMENT IN SECURITIES - 101.8% | |||
(Cost $1,916,598) | 2,017,346 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (36,342) | ||
NET ASSETS - 100% | $1,981,004 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,265,000 or 0.3% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
Amneal Pharmaceuticals, Inc. | 5/4/18 | $5,426 |
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 | $1,226 |
Fidelity Securities Lending Cash Central Fund | 285 |
Total | $1,511 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $59,361 | $59,361 | $-- | $-- |
Consumer Discretionary | 244,023 | 244,023 | -- | -- |
Consumer Staples | 57,288 | 57,288 | -- | -- |
Energy | 81,421 | 81,421 | -- | -- |
Financials | 315,709 | 315,709 | -- | -- |
Health Care | 174,957 | 174,957 | -- | -- |
Industrials | 295,245 | 273,769 | 21,476 | -- |
Information Technology | 276,691 | 269,804 | 6,887 | -- |
Materials | 120,464 | 120,464 | -- | -- |
Real Estate | 192,803 | 192,803 | -- | -- |
Utilities | 101,071 | 101,071 | -- | -- |
U.S. Government and Government Agency Obligations | 588 | -- | 588 | -- |
Money Market Funds | 97,725 | 97,725 | -- | -- |
Total Investments in Securities: | $2,017,346 | $1,988,395 | $28,951 | $-- |
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 | 89.1% |
United Kingdom | 3.5% |
Netherlands | 1.4% |
Bermuda | 1.3% |
Denmark | 1.1% |
Others (Individually Less Than 1%) | 3.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $35,545) — See accompanying schedule: Unaffiliated issuers (cost $1,818,876) | $1,919,621 | |
Fidelity Central Funds (cost $97,722) | 97,725 | |
Total Investment in Securities (cost $1,916,598) | $2,017,346 | |
Receivable for investments sold | 40,739 | |
Receivable for fund shares sold | 986 | |
Dividends receivable | 2,226 | |
Distributions receivable from Fidelity Central Funds | 113 | |
Prepaid expenses | 4 | |
Other receivables | 138 | |
Total assets | 2,061,552 | |
Liabilities | ||
Payable to custodian bank | $2,615 | |
Payable for investments purchased | 37,072 | |
Payable for fund shares redeemed | 1,460 | |
Accrued management fee | 814 | |
Distribution and service plan fees payable | 430 | |
Other affiliated payables | 399 | |
Other payables and accrued expenses | 65 | |
Collateral on securities loaned | 37,693 | |
Total liabilities | 80,548 | |
Net Assets | $1,981,004 | |
Net Assets consist of: | ||
Paid in capital | $1,573,387 | |
Total distributable earnings (loss) | 407,617 | |
Net Assets | $1,981,004 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($532,298 ÷ 13,552.59 shares) | $39.28 | |
Maximum offering price per share (100/94.25 of $39.28) | $41.68 | |
Class M: | ||
Net Asset Value and redemption price per share ($535,728 ÷ 13,586.75 shares) | $39.43 | |
Maximum offering price per share (100/96.50 of $39.43) | $40.86 | |
Class C: | ||
Net Asset Value and offering price per share ($113,882 ÷ 3,192.98 shares)(a) | $35.67 | |
Fidelity Stock Selector Mid Cap Fund: | ||
Net Asset Value, offering price and redemption price per share ($502,203 ÷ 12,248.99 shares) | $41.00 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($278,852 ÷ 6,783.74 shares) | $41.11 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($18,041 ÷ 438.38 shares) | $41.15 |
(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, 2018 | |
Investment Income | ||
Dividends | $33,772 | |
Interest | 59 | |
Income from Fidelity Central Funds | 1,511 | |
Total income | 35,342 | |
Expenses | ||
Management fee | ||
Basic fee | $12,368 | |
Performance adjustment | (2,188) | |
Transfer agent fees | 4,784 | |
Distribution and service plan fees | 5,648 | |
Accounting and security lending fees | 697 | |
Custodian fees and expenses | 65 | |
Independent trustees' fees and expenses | 12 | |
Registration fees | 119 | |
Audit | 60 | |
Legal | 12 | |
Miscellaneous | 16 | |
Total expenses before reductions | 21,593 | |
Expense reductions | (389) | |
Total expenses after reductions | 21,204 | |
Net investment income (loss) | 14,138 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 362,072 | |
Fidelity Central Funds | (1) | |
Foreign currency transactions | (21) | |
Futures contracts | (2,223) | |
Total net realized gain (loss) | 359,827 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (287,659) | |
Assets and liabilities in foreign currencies | (2) | |
Futures contracts | (840) | |
Total change in net unrealized appreciation (depreciation) | (288,501) | |
Net gain (loss) | 71,326 | |
Net increase (decrease) in net assets resulting from operations | $85,464 |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $14,138 | $7,692 |
Net realized gain (loss) | 359,827 | 194,741 |
Change in net unrealized appreciation (depreciation) | (288,501) | 222,265 |
Net increase (decrease) in net assets resulting from operations | 85,464 | 424,698 |
Distributions to shareholders | (110,481) | – |
Distributions to shareholders from net investment income | – | (10,708) |
Distributions to shareholders from net realized gain | – | (333) |
Total distributions | (110,481) | (11,041) |
Share transactions - net increase (decrease) | (543,193) | 112,615 |
Total increase (decrease) in net assets | (568,210) | 526,272 |
Net Assets | ||
Beginning of period | 2,549,214 | 2,022,942 |
End of period | $1,981,004 | $2,549,214 |
Other Information | ||
Undistributed net investment income end of period | $5,629 |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.74 | $33.13 | $32.01 | $31.80 | $28.37 |
Income from Investment Operations | |||||
Net investment income (loss)A | .26 | .13 | .20 | .08 | .08 |
Net realized and unrealized gain (loss) | 1.04 | 6.68 | 1.49 | .13 | 3.36 |
Total from investment operations | 1.30 | 6.81 | 1.69 | .21 | 3.44 |
Distributions from net investment income | (.11) | (.19) | (.04) | – | (.01) |
Distributions from net realized gain | (1.65) | (.01) | (.53) | – | – |
Total distributions | (1.76) | (.20) | (.57) | – | (.01) |
Net asset value, end of period | $39.28 | $39.74 | $33.13 | $32.01 | $31.80 |
Total ReturnB,C | 3.36% | 20.64% | 5.49% | .66% | 12.11% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .93% | .87% | .88% | .98% | 1.05% |
Expenses net of fee waivers, if any | .92% | .87% | .88% | .98% | 1.05% |
Expenses net of all reductions | .91% | .86% | .88% | .97% | 1.05% |
Net investment income (loss) | .64% | .36% | .64% | .24% | .26% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $532 | $564 | $546 | $593 | $652 |
Portfolio turnover rateF | 81% | 84% | 98% | 109% | 89% |
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.
Fidelity Advisor Stock Selector Mid Cap Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.89 | $33.25 | $32.16 | $32.02 | $28.63 |
Income from Investment Operations | |||||
Net investment income (loss)A | .16 | .04 | .13 | – | .01 |
Net realized and unrealized gain (loss) | 1.04 | 6.71 | 1.49 | .14 | 3.38 |
Total from investment operations | 1.20 | 6.75 | 1.62 | .14 | 3.39 |
Distributions from net investment income | (.01) | (.11) | – | – | – |
Distributions from net realized gain | (1.65) | (.01) | (.53) | – | – |
Total distributions | (1.66) | (.11)B | (.53) | – | – |
Net asset value, end of period | $39.43 | $39.89 | $33.25 | $32.16 | $32.02 |
Total ReturnC,D | 3.10% | 20.37% | 5.22% | .44% | 11.84% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.17% | 1.11% | 1.12% | 1.22% | 1.28% |
Expenses net of fee waivers, if any | 1.17% | 1.11% | 1.12% | 1.21% | 1.28% |
Expenses net of all reductions | 1.15% | 1.10% | 1.11% | 1.21% | 1.27% |
Net investment income (loss) | .39% | .11% | .41% | .01% | .03% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $536 | $606 | $591 | $681 | $794 |
Portfolio turnover rateG | 81% | 84% | 98% | 109% | 89% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.11 per share is comprised of distributions from net investment income of $.106 and distributions from net realized gain of $.006 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 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.
Fidelity Advisor Stock Selector Mid Cap Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $36.25 | $30.28 | $29.48 | $29.51 | $26.52 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.05) | (.13) | (.03) | (.15) | (.14) |
Net realized and unrealized gain (loss) | .96 | 6.10 | 1.36 | .12 | 3.13 |
Total from investment operations | .91 | 5.97 | 1.33 | (.03) | 2.99 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (1.49) | – | (.53) | – | – |
Total distributions | (1.49) | – | (.53) | – | – |
Net asset value, end of period | $35.67 | $36.25 | $30.28 | $29.48 | $29.51 |
Total ReturnB,C | 2.59% | 19.72% | 4.71% | (.10)% | 11.27% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.69% | 1.63% | 1.63% | 1.74% | 1.80% |
Expenses net of fee waivers, if any | 1.69% | 1.63% | 1.63% | 1.73% | 1.80% |
Expenses net of all reductions | 1.67% | 1.62% | 1.63% | 1.73% | 1.80% |
Net investment income (loss) | (.12)% | (.40)% | (.11)% | (.51)% | (.49)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $114 | $142 | $140 | $155 | $172 |
Portfolio turnover rateF | 81% | 84% | 98% | 109% | 89% |
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.
Fidelity Stock Selector Mid Cap Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.43 | $34.53 | $33.34 | $33.14 | $29.56 |
Income from Investment Operations | |||||
Net investment income (loss)A | .33 | .20 | .28 | .16 | .16 |
Net realized and unrealized gain (loss) | 1.09 | 6.96 | 1.55 | .14 | 3.49 |
Total from investment operations | 1.42 | 7.16 | 1.83 | .30 | 3.65 |
Distributions from net investment income | (.20) | (.26) | (.12) | (.10) | (.07) |
Distributions from net realized gain | (1.65) | (.01) | (.53) | – | – |
Total distributions | (1.85) | (.26)B | (.64)C | (.10) | (.07) |
Net asset value, end of period | $41.00 | $41.43 | $34.53 | $33.34 | $33.14 |
Total ReturnD | 3.53% | 20.87% | 5.73% | .90% | 12.38% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .77% | .70% | .64% | .75% | .81% |
Expenses net of fee waivers, if any | .76% | .70% | .64% | .74% | .81% |
Expenses net of all reductions | .75% | .69% | .63% | .74% | .81% |
Net investment income (loss) | .80% | .53% | .89% | .48% | .50% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $502 | $545 | $222 | $486 | $553 |
Portfolio turnover rateG | 81% | 84% | 98% | 109% | 89% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.26 per share is comprised of distributions from net investment income of $.255 and distributions from net realized gain of $.006 per share.
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 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.
Fidelity Advisor Stock Selector Mid Cap Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.51 | $34.60 | $33.39 | $33.22 | $29.64 |
Income from Investment Operations | |||||
Net investment income (loss)A | .36 | .23 | .28 | .13 | .16 |
Net realized and unrealized gain (loss) | 1.10 | 6.96 | 1.56 | .14 | 3.50 |
Total from investment operations | 1.46 | 7.19 | 1.84 | .27 | 3.66 |
Distributions from net investment income | (.21) | (.27) | (.11) | (.10) | (.08) |
Distributions from net realized gain | (1.65) | (.01) | (.53) | – | – |
Total distributions | (1.86) | (.28) | (.63)B | (.10) | (.08) |
Net asset value, end of period | $41.11 | $41.51 | $34.60 | $33.39 | $33.22 |
Total ReturnC | 3.62% | 20.92% | 5.75% | .80% | 12.39% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .69% | .63% | .64% | .83% | .80% |
Expenses net of fee waivers, if any | .69% | .63% | .64% | .83% | .80% |
Expenses net of all reductions | .67% | .62% | .64% | .82% | .80% |
Net investment income (loss) | .87% | .60% | .88% | .39% | .51% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $279 | $683 | $523 | $479 | $371 |
Portfolio turnover rateF | 81% | 84% | 98% | 109% | 89% |
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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Stock Selector Mid Cap Fund Class Z
Years ended November 30, | 2018 | 2017 A |
Selected Per–Share Data | ||
Net asset value, beginning of period | $41.57 | $35.79 |
Income from Investment Operations | ||
Net investment income (loss)B | .43 | .23 |
Net realized and unrealized gain (loss) | 1.08 | 5.55 |
Total from investment operations | 1.51 | 5.78 |
Distributions from net investment income | (.28) | – |
Distributions from net realized gain | (1.65) | – |
Total distributions | (1.93) | – |
Net asset value, end of period | $41.15 | $41.57 |
Total ReturnC,D | 3.75% | 16.15% |
Ratios to Average Net AssetsE,F | ||
Expenses before reductions | .53% | .48%G |
Expenses net of fee waivers, if any | .53% | .47%G |
Expenses net of all reductions | .52% | .46%G |
Net investment income (loss) | 1.03% | .69%G |
Supplemental Data | ||
Net assets, end of period (in millions) | $18 | $9 |
Portfolio turnover rateH | 81% | 84% |
A For the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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, 2018
(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 M, Class C, Fidelity Stock Selector Mid Cap Fund, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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.
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, 2018, 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 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, 2018, 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 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, foreign currency transactions, market discount, deferred trustees compensation, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $223,340 |
Gross unrealized depreciation | (127,908) |
Net unrealized appreciation (depreciation) | $95,432 |
Tax Cost | $1,921,914 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $29,180 |
Undistributed long-term capital gain | $283,014 |
Net unrealized appreciation (depreciation) on securities and other investments | $95,422 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $53,420 | $ 11,041 |
Long-term Capital Gains | 57,061 | – |
Total | $110,481 | $ 11,041 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
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 on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,787,961 and $2,392,660, 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 .24% 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 .45% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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% | $1,412 | $18 |
Class M | .25% | .25% | 2,939 | 44 |
Class C | .75% | .25% | 1,297 | 31 |
$5,648 | $93 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $30 |
Class M | 10 |
Class C(a) | 2 |
$42 |
(a) When 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 | $1,055 | .19 |
Class M | 1,060 | .18 |
Class C | 257 | .20 |
Fidelity Stock Selector Mid Cap Fund | 1,493 | .28 |
Class I | 912 | .20 |
Class Z | 7 | .05 |
$4,784 |
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. For the period, the fees were equivalent to an annual rate of .03%.
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 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 $93.
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 $6 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 $285, including $2 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 $364 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 $25.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $24,662 | $– |
Class M | 24,902 | – |
Class C | 5,817 | – |
Fidelity Stock Selector Mid Cap Fund | 23,962 | – |
Class I | 30,651 | – |
Class Z | 487 | – |
Total | $110,481 | $– |
From net investment income | ||
Class A | $– | $3,079 |
Class M | – | 1,865 |
Fidelity Stock Selector Mid Cap Fund | – | 1,644 |
Class I | – | 4,120 |
Total | $– | $10,708 |
From net realized gain | ||
Class A | $– | $98 |
Class M | – | 105 |
Fidelity Stock Selector Mid Cap Fund | – | 39 |
Class I | – | 91 |
Total | $– | $333 |
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, 2018 | Year ended November 30, 2017(a) | Year ended November 30, 2018 | Year ended November 30, 2017(a) | |
Class A | ||||
Shares sold | 1,009 | 914 | $40,393 | $33,050 |
Reinvestment of distributions | 603 | 88 | 23,126 | 2,963 |
Shares redeemed | (2,254) | (3,286) | (89,934) | (118,879) |
Net increase (decrease) | (642) | (2,284) | $(26,415) | $(82,866) |
Class M | ||||
Shares sold | 943 | 1,370 | $37,889 | $50,634 |
Reinvestment of distributions | 628 | 55 | 24,265 | 1,885 |
Shares redeemed | (3,179) | (4,007) | (127,217) | (145,515) |
Net increase (decrease) | (1,608) | (2,582) | $(65,063) | $(92,996) |
Class C | ||||
Shares sold | 105 | 131 | $3,842 | $4,256 |
Reinvestment of distributions | 153 | – | 5,355 | – |
Shares redeemed | (989) | (835) | (35,928) | (27,684) |
Net increase (decrease) | (731) | (704) | $(26,731) | $(23,428) |
Fidelity Stock Selector Mid Cap Fund | ||||
Shares sold | 2,202 | 8,585 | $91,837 | $325,907 |
Reinvestment of distributions | 590 | 47 | 23,601 | 1,639 |
Shares redeemed | (3,700) | (1,916) | (155,546) | (73,800) |
Net increase (decrease) | (908) | 6,716 | $(40,108) | $253,746 |
Class I | ||||
Shares sold | 12,470 | 4,203 | $506,015 | $158,956 |
Reinvestment of distributions | 746 | 114 | 29,881 | 4,019 |
Shares redeemed | (22,883) | (2,996) | (930,143) | (113,072) |
Net increase (decrease) | (9,667) | 1,321 | $(394,247) | $49,903 |
Class Z | ||||
Shares sold | 265 | 234 | $11,054 | $9,125 |
Reinvestment of distributions | 12 | – | 461 | – |
Shares redeemed | (51) | (22) | (2,144) | (869) |
Net increase (decrease) | 226 | 212 | $9,371 | $8,256 |
(a) Share transactions for Class Z are for the period February 1, 2017 (commencement of sale of shares) to November 30, 2018.
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:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 11, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, which was eliminated effective August 1, 2018, 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, which was eliminated effective August 1, 2018, 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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .94% | |||
Actual | $1,000.00 | $981.00 | $4.67 | |
Hypothetical-C | $1,000.00 | $1,020.36 | $4.76 | |
Class M | 1.19% | |||
Actual | $1,000.00 | $979.60 | $5.91 | |
Hypothetical-C | $1,000.00 | $1,019.10 | $6.02 | |
Class C | 1.71% | |||
Actual | $1,000.00 | $977.30 | $8.48 | |
Hypothetical-C | $1,000.00 | $1,016.50 | $8.64 | |
Fidelity Stock Selector Mid Cap Fund | .78% | |||
Actual | $1,000.00 | $981.80 | $3.88 | |
Hypothetical-C | $1,000.00 | $1,021.16 | $3.95 | |
Class I | .70% | |||
Actual | $1,000.00 | $982.30 | $3.48 | |
Hypothetical-C | $1,000.00 | $1,021.56 | $3.55 | |
Class Z | .55% | |||
Actual | $1,000.00 | $982.80 | $2.73 | |
Hypothetical-C | $1,000.00 | $1,022.31 | $2.79 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity 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 | 12/27/2018 | 12/26/2018 | $0.251 | $6.011 |
Class M | 12/27/2018 | 12/26/2018 | $0.140 | $6.011 |
Class C | 12/27/2018 | 12/26/2018 | $0.000 | $5.965 |
Fidelity Stock Selector Mid Cap Fund | 12/27/2018 | 12/26/2018 | $0.319 | $6.011 |
Class I | 12/27/2018 | 12/26/2018 | $0.306 | $6.011 |
Class Z | 12/27/2018 | 12/26/2018 | $0.415 | $6.011 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018 $283,198,718, or, if subsequently determined to be different, the net capital gain of such year.
Class A designates 35%; Class M designates 39%; Class C designates 51%; Fidelity Stock Selector Mid Cap Fund designates 32%; Class I designates 31% and Class Z designates 29% of the dividends distributed in December 2017, during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A designates 39%; Class M designates 43%; Class C designates 56%; Fidelity Stock Selector Mid Cap Fund designates 35%; Class I designates 34% and Class Z designates 32% of the dividends distributed in December 2017, 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Stock Selector Mid Cap Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
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SKD-ANN-0119
1.940899.106
Fidelity Advisor® Value Strategies Fund Class A, Class M, Class C and Class I Annual Report November 30, 2018 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (11.55)% | 3.98% | 14.17% |
Class M (incl. 3.50% sales charge) | (9.66)% | 4.24% | 14.21% |
Class C (incl. contingent deferred sales charge) | (7.74)% | 4.42% | 13.98% |
Class I | (5.95)% | 5.47% | 15.16% |
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, 2008, 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/0001379491-19-000231/img446433713_740.jpg)
Period Ending Values | ||
$37,627 | Fidelity Advisor® Value Strategies Fund - Class A | |
$39,883 | Russell Midcap® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Matthew Friedman: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) returned roughly between -6% and -7%, lagging the -0.79% result of its benchmark, the Russell Midcap® Value Index. Growth stocks outperformed value stocks for most of the past 12 months, presenting a challenge for the fund, which tends to emphasize the latter style. Versus the benchmark, stock selection hurt the fund’s relative performance – particularly within the energy, financials and consumer staples sectors. Among individual stocks, untimely ownership of Spectrum Brands Holdings hurt the most. Spectrum’s product portfolio includes a number of well-known household brands, including Iams® pet food and car-care stalwart Armor All®. The stock declined this period partly due to consecutive quarters of disappointing earnings results. Notably, shares of Spectrum fell sharply in July after the firm announced the completion of its previously announced merger with HRG Group and hired a new CEO. Other notable detractors included the fund’s overweighted stake in Synchrony Financial and an out-of-index holding in British American Tobacco. Conversely, successful security selection in the real estate sector was a plus this period. An overweighting in single-tenant real estate property owner National Retail Properties was the fund’s top relative contributor. A non-index position in American Tower also added significant value. Real estate stocks generally benefited from investors’ rotation into areas of the market typically considered more-defensive as market volatility picked up later in the period, as well as company specific factors.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, 2018
% of fund's net assets | |
American Tower Corp. | 2.8 |
PPL Corp. | 2.6 |
Sempra Energy | 2.5 |
U.S. Bancorp | 2.2 |
National Retail Properties, Inc. | 2.2 |
Public Storage | 2.1 |
Ameren Corp. | 2.1 |
Wells Fargo & Co. | 2.1 |
Equity Lifestyle Properties, Inc. | 1.9 |
Synchrony Financial | 1.9 |
22.4 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 17.9 |
Real Estate | 13.2 |
Consumer Discretionary | 12.2 |
Industrials | 11.7 |
Information Technology | 9.2 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018 * | ||
Stocks | 99.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 17.4%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 3.6% | |||
Media - 3.6% | |||
Discovery Communications, Inc. Class A (a)(b) | 214,500 | $6,589 | |
GCI Liberty, Inc. (a) | 212,100 | 10,153 | |
Liberty Global PLC Class C (a) | 300,900 | 7,309 | |
Nexstar Broadcasting Group, Inc. Class A | 86,900 | 7,181 | |
31,232 | |||
CONSUMER DISCRETIONARY - 12.2% | |||
Distributors - 0.6% | |||
LKQ Corp. (a) | 189,500 | 5,276 | |
Diversified Consumer Services - 1.1% | |||
Houghton Mifflin Harcourt Co. (a) | 931,956 | 9,273 | |
Hotels, Restaurants & Leisure - 4.0% | |||
Eldorado Resorts, Inc. (a) | 262,400 | 11,540 | |
The Stars Group, Inc. (a) | 435,200 | 8,604 | |
U.S. Foods Holding Corp. (a) | 452,600 | 15,017 | |
35,161 | |||
Household Durables - 2.1% | |||
D.R. Horton, Inc. | 263,200 | 9,796 | |
Mohawk Industries, Inc. (a) | 62,900 | 8,055 | |
17,851 | |||
Internet & Direct Marketing Retail - 0.8% | |||
Liberty Interactive Corp. QVC Group Series A (a) | 331,300 | 7,361 | |
Leisure Products - 1.0% | |||
Mattel, Inc. (a)(b) | 628,300 | 8,733 | |
Multiline Retail - 1.6% | |||
Dollar Tree, Inc. (a) | 158,400 | 13,744 | |
Specialty Retail - 1.0% | |||
Lowe's Companies, Inc. | 90,000 | 8,493 | |
TOTAL CONSUMER DISCRETIONARY | 105,892 | ||
CONSUMER STAPLES - 5.1% | |||
Food Products - 2.3% | |||
Conagra Brands, Inc. | 129,700 | 4,194 | |
Darling International, Inc. (a) | 714,522 | 15,634 | |
19,828 | |||
Household Products - 1.0% | |||
Spectrum Brands Holdings, Inc. | 182,700 | 9,022 | |
Personal Products - 0.6% | |||
Coty, Inc. Class A | 625,000 | 5,213 | |
Tobacco - 1.2% | |||
British American Tobacco PLC (United Kingdom) | 289,642 | 10,141 | |
TOTAL CONSUMER STAPLES | 44,204 | ||
ENERGY - 7.0% | |||
Energy Equipment & Services - 0.7% | |||
Baker Hughes, a GE Co. Class A | 252,300 | 5,757 | |
Oil, Gas & Consumable Fuels - 6.3% | |||
Anadarko Petroleum Corp. | 198,516 | 10,501 | |
Cheniere Energy, Inc. (a) | 195,600 | 11,955 | |
Encana Corp. | 676,100 | 4,554 | |
Lundin Petroleum AB | 344,300 | 9,058 | |
Noble Energy, Inc. | 486,500 | 11,550 | |
Valero Energy Corp. | 88,500 | 7,071 | |
54,689 | |||
TOTAL ENERGY | 60,446 | ||
FINANCIALS - 17.9% | |||
Banks - 4.3% | |||
U.S. Bancorp | 359,384 | 19,572 | |
Wells Fargo & Co. | 332,770 | 18,063 | |
37,635 | |||
Capital Markets - 7.0% | |||
Ameriprise Financial, Inc. | 83,900 | 10,886 | |
Apollo Global Management LLC Class A | 454,450 | 12,811 | |
Ares Management Corp. | 157,900 | 3,543 | |
Invesco Ltd. | 367,800 | 7,485 | |
State Street Corp. | 146,900 | 10,727 | |
The Blackstone Group LP | 457,400 | 15,428 | |
60,880 | |||
Consumer Finance - 3.9% | |||
OneMain Holdings, Inc. (a) | 317,300 | 9,287 | |
SLM Corp. (a) | 798,000 | 8,195 | |
Synchrony Financial | 633,413 | 16,456 | |
33,938 | |||
Diversified Financial Services - 0.2% | |||
Donnelley Financial Solutions, Inc. (a) | 124,610 | 2,076 | |
Insurance - 2.5% | |||
American International Group, Inc. | 182,100 | 7,876 | |
Chubb Ltd. | 101,282 | 13,545 | |
21,421 | |||
TOTAL FINANCIALS | 155,950 | ||
HEALTH CARE - 4.9% | |||
Health Care Providers & Services - 2.3% | |||
Cigna Corp. | 40,600 | 9,069 | |
CVS Health Corp. | 136,100 | 10,915 | |
19,984 | |||
Pharmaceuticals - 2.6% | |||
Allergan PLC | 45,800 | 7,172 | |
Jazz Pharmaceuticals PLC (a) | 103,400 | 15,634 | |
22,806 | |||
TOTAL HEALTH CARE | 42,790 | ||
INDUSTRIALS - 11.7% | |||
Aerospace & Defense - 2.2% | |||
Huntington Ingalls Industries, Inc. | 56,100 | 12,090 | |
United Technologies Corp. | 54,600 | 6,652 | |
18,742 | |||
Airlines - 1.0% | |||
American Airlines Group, Inc. | 227,300 | 9,128 | |
Commercial Services & Supplies - 1.3% | |||
The Brink's Co. | 156,900 | 11,112 | |
Construction & Engineering - 1.5% | |||
AECOM (a) | 397,100 | 12,771 | |
Machinery - 1.1% | |||
WABCO Holdings, Inc. (a) | 80,000 | 9,716 | |
Professional Services - 0.9% | |||
Nielsen Holdings PLC | 291,900 | 7,931 | |
Trading Companies & Distributors - 3.1% | |||
AerCap Holdings NV (a) | 206,537 | 10,920 | |
Fortress Transportation & Infrastructure Investors LLC | 356,800 | 5,677 | |
HD Supply Holdings, Inc. (a) | 267,900 | 10,689 | |
27,286 | |||
Transportation Infrastructure - 0.6% | |||
Macquarie Infrastructure Co. LLC | 123,800 | 5,162 | |
TOTAL INDUSTRIALS | 101,848 | ||
INFORMATION TECHNOLOGY - 9.2% | |||
Communications Equipment - 0.6% | |||
CommScope Holding Co., Inc. (a) | 289,968 | 5,248 | |
Electronic Equipment & Components - 0.6% | |||
Flextronics International Ltd. (a) | 538,400 | 4,711 | |
IT Services - 4.8% | |||
Cognizant Technology Solutions Corp. Class A | 90,300 | 6,432 | |
Conduent, Inc. (a) | 557,400 | 7,146 | |
DXC Technology Co. | 114,100 | 7,193 | |
First Data Corp. Class A (a) | 459,240 | 8,762 | |
Leidos Holdings, Inc. | 185,600 | 11,693 | |
41,226 | |||
Semiconductors & Semiconductor Equipment - 1.7% | |||
Broadcom, Inc. | 32,300 | 7,668 | |
NXP Semiconductors NV | 89,200 | 7,437 | |
15,105 | |||
Software - 1.5% | |||
Micro Focus International PLC | 672,900 | 13,215 | |
TOTAL INFORMATION TECHNOLOGY | 79,505 | ||
MATERIALS - 7.8% | |||
Chemicals - 5.5% | |||
DowDuPont, Inc. | 222,312 | 12,861 | |
LyondellBasell Industries NV Class A | 122,092 | 11,392 | |
Nutrien Ltd. | 228,400 | 11,765 | |
Westlake Chemical Corp. | 163,903 | 11,881 | |
47,899 | |||
Construction Materials - 0.8% | |||
Eagle Materials, Inc. | 98,600 | 7,198 | |
Containers & Packaging - 1.5% | |||
Crown Holdings, Inc. (a) | 253,554 | 13,002 | |
TOTAL MATERIALS | 68,099 | ||
REAL ESTATE - 13.2% | |||
Equity Real Estate Investment Trusts (REITs) - 12.1% | |||
American Tower Corp. | 145,808 | 23,990 | |
Douglas Emmett, Inc. | 305,000 | 11,261 | |
Equinix, Inc. | 40,800 | 15,719 | |
Equity Lifestyle Properties, Inc. | 168,100 | 16,731 | |
National Retail Properties, Inc. | 374,300 | 18,737 | |
Public Storage | 86,400 | 18,426 | |
104,864 | |||
Real Estate Management & Development - 1.1% | |||
CBRE Group, Inc. (a) | 225,300 | 9,841 | |
TOTAL REAL ESTATE | 114,705 | ||
UTILITIES - 7.2% | |||
Electric Utilities - 2.6% | |||
PPL Corp. | 742,600 | 22,716 | |
Multi-Utilities - 4.6% | |||
Ameren Corp. | 267,900 | 18,383 | |
Sempra Energy | 188,188 | 21,683 | |
40,066 | |||
TOTAL UTILITIES | 62,782 | ||
TOTAL COMMON STOCKS | |||
(Cost $846,811) | 867,453 | ||
Money Market Funds - 1.8% | |||
Fidelity Cash Central Fund, 2.27% (c) | 1,920,988 | 1,921 | |
Fidelity Securities Lending Cash Central Fund 2.27% (c)(d) | 14,049,840 | 14,051 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $15,972) | 15,972 | ||
TOTAL INVESTMENT IN SECURITIES - 101.6% | |||
(Cost $862,783) | 883,425 | ||
NET OTHER ASSETS (LIABILITIES) - (1.6)% | (13,893) | ||
NET ASSETS - 100% | $869,532 |
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 | $45 |
Fidelity Securities Lending Cash Central Fund | 384 |
Total | $429 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $31,232 | $31,232 | $-- | $-- |
Consumer Discretionary | 105,892 | 105,892 | -- | -- |
Consumer Staples | 44,204 | 34,063 | 10,141 | -- |
Energy | 60,446 | 60,446 | -- | -- |
Financials | 155,950 | 155,950 | -- | -- |
Health Care | 42,790 | 42,790 | -- | -- |
Industrials | 101,848 | 101,848 | -- | -- |
Information Technology | 79,505 | 66,290 | 13,215 | -- |
Materials | 68,099 | 68,099 | -- | -- |
Real Estate | 114,705 | 114,705 | -- | -- |
Utilities | 62,782 | 62,782 | -- | -- |
Money Market Funds | 15,972 | 15,972 | -- | -- |
Total Investments in Securities: | $883,425 | $860,069 | $23,356 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 82.6% |
United Kingdom | 4.4% |
Netherlands | 3.4% |
Canada | 2.8% |
Ireland | 2.6% |
Switzerland | 1.6% |
Sweden | 1.1% |
Others (Individually Less Than 1%) | 1.5% |
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, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $13,603) — See accompanying schedule: Unaffiliated issuers (cost $846,811) | $867,453 | |
Fidelity Central Funds (cost $15,972) | 15,972 | |
Total Investment in Securities (cost $862,783) | $883,425 | |
Receivable for investments sold | 592 | |
Receivable for fund shares sold | 129 | |
Dividends receivable | 991 | |
Distributions receivable from Fidelity Central Funds | 6 | |
Prepaid expenses | 2 | |
Other receivables | 61 | |
Total assets | 885,206 | |
Liabilities | ||
Payable for fund shares redeemed | $1,052 | |
Accrued management fee | 196 | |
Distribution and service plan fees payable | 159 | |
Other affiliated payables | 161 | |
Other payables and accrued expenses | 51 | |
Collateral on securities loaned | 14,055 | |
Total liabilities | 15,674 | |
Net Assets | $869,532 | |
Net Assets consist of: | ||
Paid in capital | $748,818 | |
Total distributable earnings (loss) | 120,714 | |
Net Assets | $869,532 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($175,199 ÷ 5,233.4 shares) | $33.48 | |
Maximum offering price per share (100/94.25 of $33.48) | $35.52 | |
Class M: | ||
Net Asset Value and redemption price per share ($225,326 ÷ 6,408.5 shares) | $35.16 | |
Maximum offering price per share (100/96.50 of $35.16) | $36.44 | |
Class C: | ||
Net Asset Value and offering price per share ($34,318 ÷ 1,185.6 shares)(a) | $28.95 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($323,831 ÷ 8,295.8 shares) | $39.04 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($49,240 ÷ 1,261.5 shares) | $39.03 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($61,618 ÷ 1,681.5 shares) | $36.64 |
(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, 2018 | |
Investment Income | ||
Dividends | $18,459 | |
Income from Fidelity Central Funds | 429 | |
Total income | 18,888 | |
Expenses | ||
Management fee | ||
Basic fee | $5,438 | |
Performance adjustment | (1,426) | |
Transfer agent fees | 1,779 | |
Distribution and service plan fees | 2,180 | |
Accounting and security lending fees | 340 | |
Custodian fees and expenses | 24 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 104 | |
Audit | 69 | |
Legal | 36 | |
Interest | 11 | |
Miscellaneous | 6 | |
Total expenses before reductions | 8,566 | |
Expense reductions | (124) | |
Total expenses after reductions | 8,442 | |
Net investment income (loss) | 10,446 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 100,516 | |
Fidelity Central Funds | (1) | |
Foreign currency transactions | (7) | |
Total net realized gain (loss) | 100,508 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (168,177) | |
Total change in net unrealized appreciation (depreciation) | (168,177) | |
Net gain (loss) | (67,669) | |
Net increase (decrease) in net assets resulting from operations | $(57,223) |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $10,446 | $19,237 |
Net realized gain (loss) | 100,508 | 81,495 |
Change in net unrealized appreciation (depreciation) | (168,177) | 107,647 |
Net increase (decrease) in net assets resulting from operations | (57,223) | 208,379 |
Distributions to shareholders | (87,063) | – |
Distributions to shareholders from net investment income | – | (18,090) |
Distributions to shareholders from net realized gain | – | (229,818) |
Total distributions | (87,063) | (247,908) |
Share transactions - net increase (decrease) | (102,890) | (206,873) |
Total increase (decrease) in net assets | (247,176) | (246,402) |
Net Assets | ||
Beginning of period | 1,116,708 | 1,363,110 |
End of period | $869,532 | $1,116,708 |
Other Information | ||
Undistributed net investment income end of period | $14,922 |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $38.91 | $40.25 | $39.01 | $38.91 | $36.02 |
Income from Investment Operations | |||||
Net investment income (loss)A | .35 | .60B | .56 | .35 | .25 |
Net realized and unrealized gain (loss) | (2.50) | 6.13 | 1.09 | .06 | 2.87 |
Total from investment operations | (2.15) | 6.73 | 1.65 | .41 | 3.12 |
Distributions from net investment income | (.51) | (.56) | (.40) | (.28)C | (.23) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.28) | (8.07)D | (.41) | (.31) | (.23) |
Net asset value, end of period | $33.48 | $38.91 | $40.25 | $39.01 | $38.91 |
Total ReturnE,F | (6.16)% | 19.84% | 4.33% | 1.07% | 8.74% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .91% | .91% | .86% | .93% | .96% |
Expenses net of fee waivers, if any | .91% | .91% | .86% | .93% | .96% |
Expenses net of all reductions | .90% | .90% | .86% | .93% | .96% |
Net investment income (loss) | .88% | 1.64%B | 1.48% | .89% | .68% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $175 | $212 | $203 | $215 | $233 |
Portfolio turnover rateI | 72% | 46% | 121% | 9% | 6% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.29%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $8.07 per share is comprised of distributions from net investment income of $.555 and distributions from net realized gain of $7.517 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.
Fidelity Advisor Value Strategies Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $40.69 | $41.72 | $40.40 | $40.28 | $37.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .28 | .54B | .49 | .28 | .18 |
Net realized and unrealized gain (loss) | (2.63) | 6.40 | 1.14 | .06 | 2.98 |
Total from investment operations | (2.35) | 6.94 | 1.63 | .34 | 3.16 |
Distributions from net investment income | (.41) | (.46) | (.30) | (.19)C | (.16) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.18) | (7.97)D | (.31) | (.22) | (.16) |
Net asset value, end of period | $35.16 | $40.69 | $41.72 | $40.40 | $40.28 |
Total ReturnE,F | (6.38)% | 19.57% | 4.11% | .86% | 8.51% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.14% | 1.13% | 1.08% | 1.15% | 1.17% |
Expenses net of fee waivers, if any | 1.14% | 1.13% | 1.08% | 1.14% | 1.17% |
Expenses net of all reductions | 1.13% | 1.13% | 1.07% | 1.14% | 1.17% |
Net investment income (loss) | .75% | 1.42%B | 1.27% | .68% | .47% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $225 | $271 | $263 | $294 | $324 |
Portfolio turnover rateI | 72% | 46% | 121% | 9% | 6% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.06%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $7.97 per share is comprised of distributions from net investment income of $.456 and distributions from net realized gain of $7.517 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.
Fidelity Advisor Value Strategies Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $34.09 | $36.19 | $35.12 | $35.07 | $32.52 |
Income from Investment Operations | |||||
Net investment income (loss)A | .06 | .28B | .24 | .05 | (.03) |
Net realized and unrealized gain (loss) | (2.16) | 5.43 | .97 | .07 | 2.60 |
Total from investment operations | (2.10) | 5.71 | 1.21 | .12 | 2.57 |
Distributions from net investment income | (.27) | (.30) | (.13) | (.04)C | (.02) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.04) | (7.81)D | (.14) | (.07) | (.02) |
Net asset value, end of period | $28.95 | $34.09 | $36.19 | $35.12 | $35.07 |
Total ReturnE,F | (6.89)% | 18.97% | 3.49% | .33% | 7.91% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.68% | 1.68% | 1.63% | 1.70% | 1.72% |
Expenses net of fee waivers, if any | 1.68% | 1.68% | 1.63% | 1.69% | 1.72% |
Expenses net of all reductions | 1.67% | 1.67% | 1.63% | 1.69% | 1.72% |
Net investment income (loss) | .21% | .87%B | .72% | .13% | (.08)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $34 | $46 | $44 | $49 | $53 |
Portfolio turnover rateI | 72% | 46% | 121% | 9% | 6% |
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 .52%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $7.81 per share is comprised of distributions from net investment income of $.295 and distributions from net realized gain of $7.517 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.
Fidelity Advisor Value Strategies Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $44.81 | $45.17 | $43.72 | $43.56 | $40.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .52 | .81B | .76 | .51 | .40 |
Net realized and unrealized gain (loss) | (2.92) | 7.01 | 1.21 | .07 | 3.21 |
Total from investment operations | (2.40) | 7.82 | 1.97 | .58 | 3.61 |
Distributions from net investment income | (.61) | (.66) | (.51) | (.39)C | (.33) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.37)D | (8.18) | (.52) | (.42) | (.33) |
Net asset value, end of period | $39.04 | $44.81 | $45.17 | $43.72 | $43.56 |
Total ReturnE | (5.89)% | 20.18% | 4.64% | 1.35% | 9.05% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .63% | .62% | .56% | .67% | .69% |
Expenses net of fee waivers, if any | .63% | .62% | .56% | .67% | .69% |
Expenses net of all reductions | .62% | .62% | .55% | .66% | .69% |
Net investment income (loss) | 1.26% | 1.93%B | 1.79% | 1.16% | .95% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $324 | $436 | $713 | $716 | $786 |
Portfolio turnover rateH | 72% | 46% | 121% | 9% | 6% |
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 1.57%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $3.37 per share is comprised of distributions from net investment income of $.608 and distributions from net realized gain of $2.765 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.
Fidelity Advisor Value Strategies Fund Class K
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $44.82 | $45.18 | $43.74 | $43.57 | $40.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .58 | .86B | .80 | .58 | .47 |
Net realized and unrealized gain (loss) | (2.93) | 7.02 | 1.22 | .07 | 3.20 |
Total from investment operations | (2.35) | 7.88 | 2.02 | .65 | 3.67 |
Distributions from net investment income | (.67) | (.72) | (.57) | (.45)C | (.38) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.44) | (8.24) | (.58) | (.48) | (.38) |
Net asset value, end of period | $39.03 | $44.82 | $45.18 | $43.74 | $43.57 |
Total ReturnD | (5.80)% | 20.36% | 4.76% | 1.51% | 9.21% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .50% | .50% | .44% | .51% | .53% |
Expenses net of fee waivers, if any | .50% | .50% | .44% | .51% | .53% |
Expenses net of all reductions | .49% | .49% | .43% | .51% | .53% |
Net investment income (loss) | 1.39% | 2.05%B | 1.91% | 1.31% | 1.11% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $49 | $79 | $68 | $72 | $97 |
Portfolio turnover rateG | 72% | 46% | 121% | 9% | 6% |
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 1.70%.
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.
Fidelity Advisor Value Strategies Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $42.27 | $43.07 | $41.71 | $41.57 | $38.46 |
Income from Investment Operations | |||||
Net investment income (loss)A | .48 | .74B | .70 | .48 | .37 |
Net realized and unrealized gain (loss) | (2.75) | 6.64 | 1.15 | .08 | 3.06 |
Total from investment operations | (2.27) | 7.38 | 1.85 | .56 | 3.43 |
Distributions from net investment income | (.59) | (.66) | (.48) | (.39)C | (.32) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.36) | (8.18) | (.49) | (.42) | (.32) |
Net asset value, end of period | $36.64 | $42.27 | $43.07 | $41.71 | $41.57 |
Total ReturnD | (5.95)% | 20.13% | 4.57% | 1.36% | 9.01% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .67% | .67% | .61% | .68% | .71% |
Expenses net of fee waivers, if any | .67% | .67% | .61% | .68% | .71% |
Expenses net of all reductions | .66% | .66% | .61% | .68% | .71% |
Net investment income (loss) | 1.22% | 1.88%B | 1.74% | 1.14% | .93% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $62 | $72 | $73 | $65 | $86 |
Portfolio turnover rateG | 72% | 46% | 121% | 9% | 6% |
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 1.53%.
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, 2018
(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 M, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018 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 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.
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, 2018, 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 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, market discount, deferred trustees compensation, partnerships, and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $101,029 |
Gross unrealized depreciation | (80,500) |
Net unrealized appreciation (depreciation) | $20,529 |
Tax Cost | $862,896 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $5,303 |
Undistributed long-term capital gain | $94,882 |
Net unrealized appreciation (depreciation) on securities and other investments | $20,529 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $66,957 | $ 18,090 |
Long-term Capital Gains | 20,106 | 229,818 |
Total | $87,063 | $ 247,908 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $723,866 and $888,502, 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 .24% 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 .40% 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% | $493 | $11 |
Class M | .25% | .25% | 1,271 | 38 |
Class C | .75% | .25% | 416 | 17 |
$2,180 | $66 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares. For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $17 |
Class M | 6 |
Class C(a) | 3 |
$26 |
(a) When 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 K. FIOOC 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 | $393 | .20 |
Class M | 453 | .18 |
Class C | 92 | .22 |
Fidelity Value Strategies Fund | 666 | .17 |
Class K | 28 | .05 |
Class I | 147 | .21 |
$1,779 |
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. For the period, the fees were equivalent to an annual rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $20 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $10,746 | 1.85% | $11 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $3.
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 $384, including less than five hundred dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $113 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $11.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $17,622 | $– |
Class M | 21,054 | – |
Class C | 4,061 | – |
Fidelity Value Strategies Fund | 32,529 | – |
Class K | 6,037 | – |
Class I | 5,760 | – |
Total | $87,063 | $– |
From net investment income | ||
Class A | $– | $2,766 |
Class M | – | 2,831 |
Class C | – | 357 |
Fidelity Value Strategies Fund | – | 9,926 |
Class K | – | 1,087 |
Class I | – | 1,123 |
Total | $– | $18,090 |
From net realized gain | ||
Class A | $– | $37,462 |
Class M | – | 46,673 |
Class C | – | 9,088 |
Fidelity Value Strategies Fund | – | 112,547 |
Class K | – | 11,298 |
Class I | – | 12,750 |
Total | $– | $229,818 |
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, 2018 | Year ended November 30, 2017 | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Class A | ||||
Shares sold | 218 | 296 | $7,830 | $10,638 |
Reinvestment of distributions | 464 | 1,127 | 16,785 | 37,943 |
Shares redeemed | (892) | (1,026) | (32,019) | (36,865) |
Net increase (decrease) | (210) | 397 | $(7,404) | $11,716 |
Class M | ||||
Shares sold | 247 | 349 | $9,286 | $13,029 |
Reinvestment of distributions | 516 | 1,294 | 19,633 | 45,666 |
Shares redeemed | (1,018) | (1,277) | (38,196) | (48,234) |
Net increase (decrease) | (255) | 366 | $(9,277) | $10,461 |
Class C | ||||
Shares sold | 86 | 89 | $2,708 | $2,827 |
Reinvestment of distributions | 126 | 307 | 3,972 | 9,116 |
Shares redeemed | (378) | (264) | (11,722) | (8,379) |
Net increase (decrease) | (166) | 132 | $(5,042) | $3,564 |
Fidelity Value Strategies Fund | ||||
Shares sold | 505 | 1,169 | $21,236 | $50,402 |
Reinvestment of distributions | 730 | 2,966 | 30,693 | 114,742 |
Shares redeemed | (2,665) | (10,188) | (111,070) | (409,648) |
Net increase (decrease) | (1,430) | (6,053) | $(59,141) | $(244,504) |
Class K | ||||
Shares sold | 306 | 617 | $12,927 | $26,514 |
Reinvestment of distributions | 144 | 321 | 6,037 | 12,384 |
Shares redeemed | (959) | (665) | (39,818) | (27,215) |
Net increase (decrease) | (509) | 273 | $(20,854) | $11,683 |
Class I | ||||
Shares sold | 248 | 459 | $9,764 | $17,823 |
Reinvestment of distributions | 139 | 339 | 5,482 | 12,386 |
Shares redeemed | (420) | (774) | (16,418) | (30,001) |
Net increase (decrease) | (33) | 24 | $(1,172) | $208 |
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 Value Strategies Fund:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 14, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, which was eliminated effective August 1, 2018, 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, which was eliminated effective August 1, 2018, 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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .85% | |||
Actual | $1,000.00 | $948.20 | $4.15 | |
Hypothetical-C | $1,000.00 | $1,020.81 | $4.31 | |
Class M | 1.08% | |||
Actual | $1,000.00 | $947.20 | $5.27 | |
Hypothetical-C | $1,000.00 | $1,019.65 | $5.47 | |
Class C | 1.62% | |||
Actual | $1,000.00 | $944.80 | $7.90 | |
Hypothetical-C | $1,000.00 | $1,016.95 | $8.19 | |
Fidelity Value Strategies Fund | .57% | |||
Actual | $1,000.00 | $949.60 | $2.79 | |
Hypothetical-C | $1,000.00 | $1,022.21 | $2.89 | |
Class K | .43% | |||
Actual | $1,000.00 | $950.10 | $2.10 | |
Hypothetical-C | $1,000.00 | $1,022.91 | $2.18 | |
Class I | .61% | |||
Actual | $1,000.00 | $949.20 | $2.98 | |
Hypothetical-C | $1,000.00 | $1,022.01 | $3.09 |
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 183/365 (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 | 12/27/18 | 12/26/18 | $0.289 | $4.040 |
Class M | 12/27/18 | 12/26/18 | $0.192 | $4.040 |
Class C | 12/27/18 | 12/26/18 | $0.033 | $4.040 |
Fidelity Value Strategies Fund | 12/27/18 | 12/26/18 | $0.378 | $4.040 |
Class K | 12/27/18 | 12/26/18 | $0.436 | $4.040 |
Class I | 12/27/18 | 12/26/18 | $0.368 | $4.040 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $95,770,881, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class M, Class C, Fidelity Value Strategies Fund, Class K, and Class I designate 24%, 25%, 26%, 23%, 22%, and 23% of the dividends distributed in December 2017, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class M, Class C, Fidelity Value Strategies Fund, Class K, and Class I designate 27%, 28%, 30%, 26%, 26%, and 26% 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Value Strategies Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
SO-ANN-0119
1.539180.121
Fidelity® Value Strategies Fund Class K Annual Report November 30, 2018 (A class of Fidelity Advisor® Value Strategies Fund) |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class K | (5.80)% | 5.66% | 15.37% |
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, 2008.
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) (previous page) for additional information regarding the performance of Class K.
![](https://capedge.com/proxy/N-CSR/0001379491-19-000231/img446434991_740.jpg)
Period Ending Values | ||
$41,785 | Fidelity® Value Strategies Fund - Class K | |
$39,883 | Russell Midcap® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Matthew Friedman: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) returned roughly between -6% and -7%, lagging the -0.79% result of its benchmark, the Russell Midcap® Value Index. Growth stocks outperformed value stocks for most of the past 12 months, presenting a challenge for the fund, which tends to emphasize the latter style. Versus the benchmark, stock selection hurt the fund’s relative performance – particularly within the energy, financials and consumer staples sectors. Among individual stocks, untimely ownership of Spectrum Brands Holdings hurt the most. Spectrum’s product portfolio includes a number of well-known household brands, including Iams® pet food and car-care stalwart Armor All®. The stock declined this period partly due to consecutive quarters of disappointing earnings results. Notably, shares of Spectrum fell sharply in July after the firm announced the completion of its previously announced merger with HRG Group and hired a new CEO. Other notable detractors included the fund’s overweighted stake in Synchrony Financial and an out-of-index holding in British American Tobacco. Conversely, successful security selection in the real estate sector was a plus this period. An overweighting in single-tenant real estate property owner National Retail Properties was the fund’s top relative contributor. A non-index position in American Tower also added significant value. Real estate stocks generally benefited from investors’ rotation into areas of the market typically considered more-defensive as market volatility picked up later in the period, as well as company specific factors.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, 2018
% of fund's net assets | |
American Tower Corp. | 2.8 |
PPL Corp. | 2.6 |
Sempra Energy | 2.5 |
U.S. Bancorp | 2.2 |
National Retail Properties, Inc. | 2.2 |
Public Storage | 2.1 |
Ameren Corp. | 2.1 |
Wells Fargo & Co. | 2.1 |
Equity Lifestyle Properties, Inc. | 1.9 |
Synchrony Financial | 1.9 |
22.4 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 17.9 |
Real Estate | 13.2 |
Consumer Discretionary | 12.2 |
Industrials | 11.7 |
Information Technology | 9.2 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018 * | ||
Stocks | 99.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 17.4%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 3.6% | |||
Media - 3.6% | |||
Discovery Communications, Inc. Class A (a)(b) | 214,500 | $6,589 | |
GCI Liberty, Inc. (a) | 212,100 | 10,153 | |
Liberty Global PLC Class C (a) | 300,900 | 7,309 | |
Nexstar Broadcasting Group, Inc. Class A | 86,900 | 7,181 | |
31,232 | |||
CONSUMER DISCRETIONARY - 12.2% | |||
Distributors - 0.6% | |||
LKQ Corp. (a) | 189,500 | 5,276 | |
Diversified Consumer Services - 1.1% | |||
Houghton Mifflin Harcourt Co. (a) | 931,956 | 9,273 | |
Hotels, Restaurants & Leisure - 4.0% | |||
Eldorado Resorts, Inc. (a) | 262,400 | 11,540 | |
The Stars Group, Inc. (a) | 435,200 | 8,604 | |
U.S. Foods Holding Corp. (a) | 452,600 | 15,017 | |
35,161 | |||
Household Durables - 2.1% | |||
D.R. Horton, Inc. | 263,200 | 9,796 | |
Mohawk Industries, Inc. (a) | 62,900 | 8,055 | |
17,851 | |||
Internet & Direct Marketing Retail - 0.8% | |||
Liberty Interactive Corp. QVC Group Series A (a) | 331,300 | 7,361 | |
Leisure Products - 1.0% | |||
Mattel, Inc. (a)(b) | 628,300 | 8,733 | |
Multiline Retail - 1.6% | |||
Dollar Tree, Inc. (a) | 158,400 | 13,744 | |
Specialty Retail - 1.0% | |||
Lowe's Companies, Inc. | 90,000 | 8,493 | |
TOTAL CONSUMER DISCRETIONARY | 105,892 | ||
CONSUMER STAPLES - 5.1% | |||
Food Products - 2.3% | |||
Conagra Brands, Inc. | 129,700 | 4,194 | |
Darling International, Inc. (a) | 714,522 | 15,634 | |
19,828 | |||
Household Products - 1.0% | |||
Spectrum Brands Holdings, Inc. | 182,700 | 9,022 | |
Personal Products - 0.6% | |||
Coty, Inc. Class A | 625,000 | 5,213 | |
Tobacco - 1.2% | |||
British American Tobacco PLC (United Kingdom) | 289,642 | 10,141 | |
TOTAL CONSUMER STAPLES | 44,204 | ||
ENERGY - 7.0% | |||
Energy Equipment & Services - 0.7% | |||
Baker Hughes, a GE Co. Class A | 252,300 | 5,757 | |
Oil, Gas & Consumable Fuels - 6.3% | |||
Anadarko Petroleum Corp. | 198,516 | 10,501 | |
Cheniere Energy, Inc. (a) | 195,600 | 11,955 | |
Encana Corp. | 676,100 | 4,554 | |
Lundin Petroleum AB | 344,300 | 9,058 | |
Noble Energy, Inc. | 486,500 | 11,550 | |
Valero Energy Corp. | 88,500 | 7,071 | |
54,689 | |||
TOTAL ENERGY | 60,446 | ||
FINANCIALS - 17.9% | |||
Banks - 4.3% | |||
U.S. Bancorp | 359,384 | 19,572 | |
Wells Fargo & Co. | 332,770 | 18,063 | |
37,635 | |||
Capital Markets - 7.0% | |||
Ameriprise Financial, Inc. | 83,900 | 10,886 | |
Apollo Global Management LLC Class A | 454,450 | 12,811 | |
Ares Management Corp. | 157,900 | 3,543 | |
Invesco Ltd. | 367,800 | 7,485 | |
State Street Corp. | 146,900 | 10,727 | |
The Blackstone Group LP | 457,400 | 15,428 | |
60,880 | |||
Consumer Finance - 3.9% | |||
OneMain Holdings, Inc. (a) | 317,300 | 9,287 | |
SLM Corp. (a) | 798,000 | 8,195 | |
Synchrony Financial | 633,413 | 16,456 | |
33,938 | |||
Diversified Financial Services - 0.2% | |||
Donnelley Financial Solutions, Inc. (a) | 124,610 | 2,076 | |
Insurance - 2.5% | |||
American International Group, Inc. | 182,100 | 7,876 | |
Chubb Ltd. | 101,282 | 13,545 | |
21,421 | |||
TOTAL FINANCIALS | 155,950 | ||
HEALTH CARE - 4.9% | |||
Health Care Providers & Services - 2.3% | |||
Cigna Corp. | 40,600 | 9,069 | |
CVS Health Corp. | 136,100 | 10,915 | |
19,984 | |||
Pharmaceuticals - 2.6% | |||
Allergan PLC | 45,800 | 7,172 | |
Jazz Pharmaceuticals PLC (a) | 103,400 | 15,634 | |
22,806 | |||
TOTAL HEALTH CARE | 42,790 | ||
INDUSTRIALS - 11.7% | |||
Aerospace & Defense - 2.2% | |||
Huntington Ingalls Industries, Inc. | 56,100 | 12,090 | |
United Technologies Corp. | 54,600 | 6,652 | |
18,742 | |||
Airlines - 1.0% | |||
American Airlines Group, Inc. | 227,300 | 9,128 | |
Commercial Services & Supplies - 1.3% | |||
The Brink's Co. | 156,900 | 11,112 | |
Construction & Engineering - 1.5% | |||
AECOM (a) | 397,100 | 12,771 | |
Machinery - 1.1% | |||
WABCO Holdings, Inc. (a) | 80,000 | 9,716 | |
Professional Services - 0.9% | |||
Nielsen Holdings PLC | 291,900 | 7,931 | |
Trading Companies & Distributors - 3.1% | |||
AerCap Holdings NV (a) | 206,537 | 10,920 | |
Fortress Transportation & Infrastructure Investors LLC | 356,800 | 5,677 | |
HD Supply Holdings, Inc. (a) | 267,900 | 10,689 | |
27,286 | |||
Transportation Infrastructure - 0.6% | |||
Macquarie Infrastructure Co. LLC | 123,800 | 5,162 | |
TOTAL INDUSTRIALS | 101,848 | ||
INFORMATION TECHNOLOGY - 9.2% | |||
Communications Equipment - 0.6% | |||
CommScope Holding Co., Inc. (a) | 289,968 | 5,248 | |
Electronic Equipment & Components - 0.6% | |||
Flextronics International Ltd. (a) | 538,400 | 4,711 | |
IT Services - 4.8% | |||
Cognizant Technology Solutions Corp. Class A | 90,300 | 6,432 | |
Conduent, Inc. (a) | 557,400 | 7,146 | |
DXC Technology Co. | 114,100 | 7,193 | |
First Data Corp. Class A (a) | 459,240 | 8,762 | |
Leidos Holdings, Inc. | 185,600 | 11,693 | |
41,226 | |||
Semiconductors & Semiconductor Equipment - 1.7% | |||
Broadcom, Inc. | 32,300 | 7,668 | |
NXP Semiconductors NV | 89,200 | 7,437 | |
15,105 | |||
Software - 1.5% | |||
Micro Focus International PLC | 672,900 | 13,215 | |
TOTAL INFORMATION TECHNOLOGY | 79,505 | ||
MATERIALS - 7.8% | |||
Chemicals - 5.5% | |||
DowDuPont, Inc. | 222,312 | 12,861 | |
LyondellBasell Industries NV Class A | 122,092 | 11,392 | |
Nutrien Ltd. | 228,400 | 11,765 | |
Westlake Chemical Corp. | 163,903 | 11,881 | |
47,899 | |||
Construction Materials - 0.8% | |||
Eagle Materials, Inc. | 98,600 | 7,198 | |
Containers & Packaging - 1.5% | |||
Crown Holdings, Inc. (a) | 253,554 | 13,002 | |
TOTAL MATERIALS | 68,099 | ||
REAL ESTATE - 13.2% | |||
Equity Real Estate Investment Trusts (REITs) - 12.1% | |||
American Tower Corp. | 145,808 | 23,990 | |
Douglas Emmett, Inc. | 305,000 | 11,261 | |
Equinix, Inc. | 40,800 | 15,719 | |
Equity Lifestyle Properties, Inc. | 168,100 | 16,731 | |
National Retail Properties, Inc. | 374,300 | 18,737 | |
Public Storage | 86,400 | 18,426 | |
104,864 | |||
Real Estate Management & Development - 1.1% | |||
CBRE Group, Inc. (a) | 225,300 | 9,841 | |
TOTAL REAL ESTATE | 114,705 | ||
UTILITIES - 7.2% | |||
Electric Utilities - 2.6% | |||
PPL Corp. | 742,600 | 22,716 | |
Multi-Utilities - 4.6% | |||
Ameren Corp. | 267,900 | 18,383 | |
Sempra Energy | 188,188 | 21,683 | |
40,066 | |||
TOTAL UTILITIES | 62,782 | ||
TOTAL COMMON STOCKS | |||
(Cost $846,811) | 867,453 | ||
Money Market Funds - 1.8% | |||
Fidelity Cash Central Fund, 2.27% (c) | 1,920,988 | 1,921 | |
Fidelity Securities Lending Cash Central Fund 2.27% (c)(d) | 14,049,840 | 14,051 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $15,972) | 15,972 | ||
TOTAL INVESTMENT IN SECURITIES - 101.6% | |||
(Cost $862,783) | 883,425 | ||
NET OTHER ASSETS (LIABILITIES) - (1.6)% | (13,893) | ||
NET ASSETS - 100% | $869,532 |
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 | $45 |
Fidelity Securities Lending Cash Central Fund | 384 |
Total | $429 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $31,232 | $31,232 | $-- | $-- |
Consumer Discretionary | 105,892 | 105,892 | -- | -- |
Consumer Staples | 44,204 | 34,063 | 10,141 | -- |
Energy | 60,446 | 60,446 | -- | -- |
Financials | 155,950 | 155,950 | -- | -- |
Health Care | 42,790 | 42,790 | -- | -- |
Industrials | 101,848 | 101,848 | -- | -- |
Information Technology | 79,505 | 66,290 | 13,215 | -- |
Materials | 68,099 | 68,099 | -- | -- |
Real Estate | 114,705 | 114,705 | -- | -- |
Utilities | 62,782 | 62,782 | -- | -- |
Money Market Funds | 15,972 | 15,972 | -- | -- |
Total Investments in Securities: | $883,425 | $860,069 | $23,356 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 82.6% |
United Kingdom | 4.4% |
Netherlands | 3.4% |
Canada | 2.8% |
Ireland | 2.6% |
Switzerland | 1.6% |
Sweden | 1.1% |
Others (Individually Less Than 1%) | 1.5% |
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, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $13,603) — See accompanying schedule: Unaffiliated issuers (cost $846,811) | $867,453 | |
Fidelity Central Funds (cost $15,972) | 15,972 | |
Total Investment in Securities (cost $862,783) | $883,425 | |
Receivable for investments sold | 592 | |
Receivable for fund shares sold | 129 | |
Dividends receivable | 991 | |
Distributions receivable from Fidelity Central Funds | 6 | |
Prepaid expenses | 2 | |
Other receivables | 61 | |
Total assets | 885,206 | |
Liabilities | ||
Payable for fund shares redeemed | $1,052 | |
Accrued management fee | 196 | |
Distribution and service plan fees payable | 159 | |
Other affiliated payables | 161 | |
Other payables and accrued expenses | 51 | |
Collateral on securities loaned | 14,055 | |
Total liabilities | 15,674 | |
Net Assets | $869,532 | |
Net Assets consist of: | ||
Paid in capital | $748,818 | |
Total distributable earnings (loss) | 120,714 | |
Net Assets | $869,532 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($175,199 ÷ 5,233.4 shares) | $33.48 | |
Maximum offering price per share (100/94.25 of $33.48) | $35.52 | |
Class M: | ||
Net Asset Value and redemption price per share ($225,326 ÷ 6,408.5 shares) | $35.16 | |
Maximum offering price per share (100/96.50 of $35.16) | $36.44 | |
Class C: | ||
Net Asset Value and offering price per share ($34,318 ÷ 1,185.6 shares)(a) | $28.95 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($323,831 ÷ 8,295.8 shares) | $39.04 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($49,240 ÷ 1,261.5 shares) | $39.03 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($61,618 ÷ 1,681.5 shares) | $36.64 |
(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, 2018 | |
Investment Income | ||
Dividends | $18,459 | |
Income from Fidelity Central Funds | 429 | |
Total income | 18,888 | |
Expenses | ||
Management fee | ||
Basic fee | $5,438 | |
Performance adjustment | (1,426) | |
Transfer agent fees | 1,779 | |
Distribution and service plan fees | 2,180 | |
Accounting and security lending fees | 340 | |
Custodian fees and expenses | 24 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 104 | |
Audit | 69 | |
Legal | 36 | |
Interest | 11 | |
Miscellaneous | 6 | |
Total expenses before reductions | 8,566 | |
Expense reductions | (124) | |
Total expenses after reductions | 8,442 | |
Net investment income (loss) | 10,446 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 100,516 | |
Fidelity Central Funds | (1) | |
Foreign currency transactions | (7) | |
Total net realized gain (loss) | 100,508 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (168,177) | |
Total change in net unrealized appreciation (depreciation) | (168,177) | |
Net gain (loss) | (67,669) | |
Net increase (decrease) in net assets resulting from operations | $(57,223) |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $10,446 | $19,237 |
Net realized gain (loss) | 100,508 | 81,495 |
Change in net unrealized appreciation (depreciation) | (168,177) | 107,647 |
Net increase (decrease) in net assets resulting from operations | (57,223) | 208,379 |
Distributions to shareholders | (87,063) | – |
Distributions to shareholders from net investment income | – | (18,090) |
Distributions to shareholders from net realized gain | – | (229,818) |
Total distributions | (87,063) | (247,908) |
Share transactions - net increase (decrease) | (102,890) | (206,873) |
Total increase (decrease) in net assets | (247,176) | (246,402) |
Net Assets | ||
Beginning of period | 1,116,708 | 1,363,110 |
End of period | $869,532 | $1,116,708 |
Other Information | ||
Undistributed net investment income end of period | $14,922 |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $38.91 | $40.25 | $39.01 | $38.91 | $36.02 |
Income from Investment Operations | |||||
Net investment income (loss)A | .35 | .60B | .56 | .35 | .25 |
Net realized and unrealized gain (loss) | (2.50) | 6.13 | 1.09 | .06 | 2.87 |
Total from investment operations | (2.15) | 6.73 | 1.65 | .41 | 3.12 |
Distributions from net investment income | (.51) | (.56) | (.40) | (.28)C | (.23) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.28) | (8.07)D | (.41) | (.31) | (.23) |
Net asset value, end of period | $33.48 | $38.91 | $40.25 | $39.01 | $38.91 |
Total ReturnE,F | (6.16)% | 19.84% | 4.33% | 1.07% | 8.74% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .91% | .91% | .86% | .93% | .96% |
Expenses net of fee waivers, if any | .91% | .91% | .86% | .93% | .96% |
Expenses net of all reductions | .90% | .90% | .86% | .93% | .96% |
Net investment income (loss) | .88% | 1.64%B | 1.48% | .89% | .68% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $175 | $212 | $203 | $215 | $233 |
Portfolio turnover rateI | 72% | 46% | 121% | 9% | 6% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.29%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $8.07 per share is comprised of distributions from net investment income of $.555 and distributions from net realized gain of $7.517 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.
Fidelity Advisor Value Strategies Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $40.69 | $41.72 | $40.40 | $40.28 | $37.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .28 | .54B | .49 | .28 | .18 |
Net realized and unrealized gain (loss) | (2.63) | 6.40 | 1.14 | .06 | 2.98 |
Total from investment operations | (2.35) | 6.94 | 1.63 | .34 | 3.16 |
Distributions from net investment income | (.41) | (.46) | (.30) | (.19)C | (.16) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.18) | (7.97)D | (.31) | (.22) | (.16) |
Net asset value, end of period | $35.16 | $40.69 | $41.72 | $40.40 | $40.28 |
Total ReturnE,F | (6.38)% | 19.57% | 4.11% | .86% | 8.51% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.14% | 1.13% | 1.08% | 1.15% | 1.17% |
Expenses net of fee waivers, if any | 1.14% | 1.13% | 1.08% | 1.14% | 1.17% |
Expenses net of all reductions | 1.13% | 1.13% | 1.07% | 1.14% | 1.17% |
Net investment income (loss) | .75% | 1.42%B | 1.27% | .68% | .47% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $225 | $271 | $263 | $294 | $324 |
Portfolio turnover rateI | 72% | 46% | 121% | 9% | 6% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.06%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $7.97 per share is comprised of distributions from net investment income of $.456 and distributions from net realized gain of $7.517 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.
Fidelity Advisor Value Strategies Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $34.09 | $36.19 | $35.12 | $35.07 | $32.52 |
Income from Investment Operations | |||||
Net investment income (loss)A | .06 | .28B | .24 | .05 | (.03) |
Net realized and unrealized gain (loss) | (2.16) | 5.43 | .97 | .07 | 2.60 |
Total from investment operations | (2.10) | 5.71 | 1.21 | .12 | 2.57 |
Distributions from net investment income | (.27) | (.30) | (.13) | (.04)C | (.02) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.04) | (7.81)D | (.14) | (.07) | (.02) |
Net asset value, end of period | $28.95 | $34.09 | $36.19 | $35.12 | $35.07 |
Total ReturnE,F | (6.89)% | 18.97% | 3.49% | .33% | 7.91% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.68% | 1.68% | 1.63% | 1.70% | 1.72% |
Expenses net of fee waivers, if any | 1.68% | 1.68% | 1.63% | 1.69% | 1.72% |
Expenses net of all reductions | 1.67% | 1.67% | 1.63% | 1.69% | 1.72% |
Net investment income (loss) | .21% | .87%B | .72% | .13% | (.08)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $34 | $46 | $44 | $49 | $53 |
Portfolio turnover rateI | 72% | 46% | 121% | 9% | 6% |
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 .52%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $7.81 per share is comprised of distributions from net investment income of $.295 and distributions from net realized gain of $7.517 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.
Fidelity Advisor Value Strategies Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $44.81 | $45.17 | $43.72 | $43.56 | $40.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .52 | .81B | .76 | .51 | .40 |
Net realized and unrealized gain (loss) | (2.92) | 7.01 | 1.21 | .07 | 3.21 |
Total from investment operations | (2.40) | 7.82 | 1.97 | .58 | 3.61 |
Distributions from net investment income | (.61) | (.66) | (.51) | (.39)C | (.33) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.37)D | (8.18) | (.52) | (.42) | (.33) |
Net asset value, end of period | $39.04 | $44.81 | $45.17 | $43.72 | $43.56 |
Total ReturnE | (5.89)% | 20.18% | 4.64% | 1.35% | 9.05% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .63% | .62% | .56% | .67% | .69% |
Expenses net of fee waivers, if any | .63% | .62% | .56% | .67% | .69% |
Expenses net of all reductions | .62% | .62% | .55% | .66% | .69% |
Net investment income (loss) | 1.26% | 1.93%B | 1.79% | 1.16% | .95% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $324 | $436 | $713 | $716 | $786 |
Portfolio turnover rateH | 72% | 46% | 121% | 9% | 6% |
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 1.57%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $3.37 per share is comprised of distributions from net investment income of $.608 and distributions from net realized gain of $2.765 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.
Fidelity Advisor Value Strategies Fund Class K
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $44.82 | $45.18 | $43.74 | $43.57 | $40.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .58 | .86B | .80 | .58 | .47 |
Net realized and unrealized gain (loss) | (2.93) | 7.02 | 1.22 | .07 | 3.20 |
Total from investment operations | (2.35) | 7.88 | 2.02 | .65 | 3.67 |
Distributions from net investment income | (.67) | (.72) | (.57) | (.45)C | (.38) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.44) | (8.24) | (.58) | (.48) | (.38) |
Net asset value, end of period | $39.03 | $44.82 | $45.18 | $43.74 | $43.57 |
Total ReturnD | (5.80)% | 20.36% | 4.76% | 1.51% | 9.21% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .50% | .50% | .44% | .51% | .53% |
Expenses net of fee waivers, if any | .50% | .50% | .44% | .51% | .53% |
Expenses net of all reductions | .49% | .49% | .43% | .51% | .53% |
Net investment income (loss) | 1.39% | 2.05%B | 1.91% | 1.31% | 1.11% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $49 | $79 | $68 | $72 | $97 |
Portfolio turnover rateG | 72% | 46% | 121% | 9% | 6% |
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 1.70%.
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.
Fidelity Advisor Value Strategies Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $42.27 | $43.07 | $41.71 | $41.57 | $38.46 |
Income from Investment Operations | |||||
Net investment income (loss)A | .48 | .74B | .70 | .48 | .37 |
Net realized and unrealized gain (loss) | (2.75) | 6.64 | 1.15 | .08 | 3.06 |
Total from investment operations | (2.27) | 7.38 | 1.85 | .56 | 3.43 |
Distributions from net investment income | (.59) | (.66) | (.48) | (.39)C | (.32) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.36) | (8.18) | (.49) | (.42) | (.32) |
Net asset value, end of period | $36.64 | $42.27 | $43.07 | $41.71 | $41.57 |
Total ReturnD | (5.95)% | 20.13% | 4.57% | 1.36% | 9.01% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .67% | .67% | .61% | .68% | .71% |
Expenses net of fee waivers, if any | .67% | .67% | .61% | .68% | .71% |
Expenses net of all reductions | .66% | .66% | .61% | .68% | .71% |
Net investment income (loss) | 1.22% | 1.88%B | 1.74% | 1.14% | .93% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $62 | $72 | $73 | $65 | $86 |
Portfolio turnover rateG | 72% | 46% | 121% | 9% | 6% |
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 1.53%.
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, 2018
(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 M, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018 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 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.
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, 2018, 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 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, market discount, deferred trustees compensation, partnerships, and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $101,029 |
Gross unrealized depreciation | (80,500) |
Net unrealized appreciation (depreciation) | $20,529 |
Tax Cost | $862,896 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $5,303 |
Undistributed long-term capital gain | $94,882 |
Net unrealized appreciation (depreciation) on securities and other investments | $20,529 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $66,957 | $ 18,090 |
Long-term Capital Gains | 20,106 | 229,818 |
Total | $87,063 | $ 247,908 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $723,866 and $888,502, 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 .24% 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 .40% 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% | $493 | $11 |
Class M | .25% | .25% | 1,271 | 38 |
Class C | .75% | .25% | 416 | 17 |
$2,180 | $66 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares. For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $17 |
Class M | 6 |
Class C(a) | 3 |
$26 |
(a) When 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 K. FIOOC 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 | $393 | .20 |
Class M | 453 | .18 |
Class C | 92 | .22 |
Fidelity Value Strategies Fund | 666 | .17 |
Class K | 28 | .05 |
Class I | 147 | .21 |
$1,779 |
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. For the period, the fees were equivalent to an annual rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $20 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $10,746 | 1.85% | $11 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $3.
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 $384, including less than five hundred dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $113 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $11.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $17,622 | $– |
Class M | 21,054 | – |
Class C | 4,061 | – |
Fidelity Value Strategies Fund | 32,529 | – |
Class K | 6,037 | – |
Class I | 5,760 | – |
Total | $87,063 | $– |
From net investment income | ||
Class A | $– | $2,766 |
Class M | – | 2,831 |
Class C | – | 357 |
Fidelity Value Strategies Fund | – | 9,926 |
Class K | – | 1,087 |
Class I | – | 1,123 |
Total | $– | $18,090 |
From net realized gain | ||
Class A | $– | $37,462 |
Class M | – | 46,673 |
Class C | – | 9,088 |
Fidelity Value Strategies Fund | – | 112,547 |
Class K | – | 11,298 |
Class I | – | 12,750 |
Total | $– | $229,818 |
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, 2018 | Year ended November 30, 2017 | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Class A | ||||
Shares sold | 218 | 296 | $7,830 | $10,638 |
Reinvestment of distributions | 464 | 1,127 | 16,785 | 37,943 |
Shares redeemed | (892) | (1,026) | (32,019) | (36,865) |
Net increase (decrease) | (210) | 397 | $(7,404) | $11,716 |
Class M | ||||
Shares sold | 247 | 349 | $9,286 | $13,029 |
Reinvestment of distributions | 516 | 1,294 | 19,633 | 45,666 |
Shares redeemed | (1,018) | (1,277) | (38,196) | (48,234) |
Net increase (decrease) | (255) | 366 | $(9,277) | $10,461 |
Class C | ||||
Shares sold | 86 | 89 | $2,708 | $2,827 |
Reinvestment of distributions | 126 | 307 | 3,972 | 9,116 |
Shares redeemed | (378) | (264) | (11,722) | (8,379) |
Net increase (decrease) | (166) | 132 | $(5,042) | $3,564 |
Fidelity Value Strategies Fund | ||||
Shares sold | 505 | 1,169 | $21,236 | $50,402 |
Reinvestment of distributions | 730 | 2,966 | 30,693 | 114,742 |
Shares redeemed | (2,665) | (10,188) | (111,070) | (409,648) |
Net increase (decrease) | (1,430) | (6,053) | $(59,141) | $(244,504) |
Class K | ||||
Shares sold | 306 | 617 | $12,927 | $26,514 |
Reinvestment of distributions | 144 | 321 | 6,037 | 12,384 |
Shares redeemed | (959) | (665) | (39,818) | (27,215) |
Net increase (decrease) | (509) | 273 | $(20,854) | $11,683 |
Class I | ||||
Shares sold | 248 | 459 | $9,764 | $17,823 |
Reinvestment of distributions | 139 | 339 | 5,482 | 12,386 |
Shares redeemed | (420) | (774) | (16,418) | (30,001) |
Net increase (decrease) | (33) | 24 | $(1,172) | $208 |
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 Value Strategies Fund:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 14, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, which was eliminated effective August 1, 2018, 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, which was eliminated effective August 1, 2018, 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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .85% | |||
Actual | $1,000.00 | $948.20 | $4.15 | |
Hypothetical-C | $1,000.00 | $1,020.81 | $4.31 | |
Class M | 1.08% | |||
Actual | $1,000.00 | $947.20 | $5.27 | |
Hypothetical-C | $1,000.00 | $1,019.65 | $5.47 | |
Class C | 1.62% | |||
Actual | $1,000.00 | $944.80 | $7.90 | |
Hypothetical-C | $1,000.00 | $1,016.95 | $8.19 | |
Fidelity Value Strategies Fund | .57% | |||
Actual | $1,000.00 | $949.60 | $2.79 | |
Hypothetical-C | $1,000.00 | $1,022.21 | $2.89 | |
Class K | .43% | |||
Actual | $1,000.00 | $950.10 | $2.10 | |
Hypothetical-C | $1,000.00 | $1,022.91 | $2.18 | |
Class I | .61% | |||
Actual | $1,000.00 | $949.20 | $2.98 | |
Hypothetical-C | $1,000.00 | $1,022.01 | $3.09 |
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 183/365 (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 | 12/27/18 | 12/26/18 | $0.289 | $4.040 |
Class M | 12/27/18 | 12/26/18 | $0.192 | $4.040 |
Class C | 12/27/18 | 12/26/18 | $0.033 | $4.040 |
Fidelity Value Strategies Fund | 12/27/18 | 12/26/18 | $0.378 | $4.040 |
Class K | 12/27/18 | 12/26/18 | $0.436 | $4.040 |
Class I | 12/27/18 | 12/26/18 | $0.368 | $4.040 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $95,770,881, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class M, Class C, Fidelity Value Strategies Fund, Class K, and Class I designate 24%, 25%, 26%, 23%, 22%, and 23% of the dividends distributed in December 2017, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class M, Class C, Fidelity Value Strategies Fund, Class K, and Class I designate 27%, 28%, 30%, 26%, 26%, and 26% 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Value Strategies Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
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SOI-K-ANN-0119
1.863336.110
Fidelity® Value Strategies Fund Annual Report November 30, 2018 Fidelity® Value Strategies Fund is a class of Fidelity Advisor® Value Strategies Fund |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2019 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, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Value Strategies Fund | (5.89)% | 5.52% | 15.17% |
$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, 2008.
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) (previous page) for additional information regarding the performance of Fidelity® Value Strategies Fund.
![](https://capedge.com/proxy/N-CSR/0001379491-19-000231/img446432776_740.jpg)
Period Ending Values | ||
$41,073 | Fidelity® Value Strategies Fund | |
$39,883 | Russell Midcap® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Matthew Friedman: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) returned roughly between -6% and -7%, lagging the -0.79% result of its benchmark, the Russell Midcap® Value Index. Growth stocks outperformed value stocks for most of the past 12 months, presenting a challenge for the fund, which tends to emphasize the latter style. Versus the benchmark, stock selection hurt the fund’s relative performance – particularly within the energy, financials and consumer staples sectors. Among individual stocks, untimely ownership of Spectrum Brands Holdings hurt the most. Spectrum’s product portfolio includes a number of well-known household brands, including Iams® pet food and car-care stalwart Armor All®. The stock declined this period partly due to consecutive quarters of disappointing earnings results. Notably, shares of Spectrum fell sharply in July after the firm announced the completion of its previously announced merger with HRG Group and hired a new CEO. Other notable detractors included the fund’s overweighted stake in Synchrony Financial and an out-of-index holding in British American Tobacco. Conversely, successful security selection in the real estate sector was a plus this period. An overweighting in single-tenant real estate property owner National Retail Properties was the fund’s top relative contributor. A non-index position in American Tower also added significant value. Real estate stocks generally benefited from investors’ rotation into areas of the market typically considered more-defensive as market volatility picked up later in the period, as well as company specific factors.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, 2018
% of fund's net assets | |
American Tower Corp. | 2.8 |
PPL Corp. | 2.6 |
Sempra Energy | 2.5 |
U.S. Bancorp | 2.2 |
National Retail Properties, Inc. | 2.2 |
Public Storage | 2.1 |
Ameren Corp. | 2.1 |
Wells Fargo & Co. | 2.1 |
Equity Lifestyle Properties, Inc. | 1.9 |
Synchrony Financial | 1.9 |
22.4 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 17.9 |
Real Estate | 13.2 |
Consumer Discretionary | 12.2 |
Industrials | 11.7 |
Information Technology | 9.2 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018 * | ||
Stocks | 99.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 17.4%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 3.6% | |||
Media - 3.6% | |||
Discovery Communications, Inc. Class A (a)(b) | 214,500 | $6,589 | |
GCI Liberty, Inc. (a) | 212,100 | 10,153 | |
Liberty Global PLC Class C (a) | 300,900 | 7,309 | |
Nexstar Broadcasting Group, Inc. Class A | 86,900 | 7,181 | |
31,232 | |||
CONSUMER DISCRETIONARY - 12.2% | |||
Distributors - 0.6% | |||
LKQ Corp. (a) | 189,500 | 5,276 | |
Diversified Consumer Services - 1.1% | |||
Houghton Mifflin Harcourt Co. (a) | 931,956 | 9,273 | |
Hotels, Restaurants & Leisure - 4.0% | |||
Eldorado Resorts, Inc. (a) | 262,400 | 11,540 | |
The Stars Group, Inc. (a) | 435,200 | 8,604 | |
U.S. Foods Holding Corp. (a) | 452,600 | 15,017 | |
35,161 | |||
Household Durables - 2.1% | |||
D.R. Horton, Inc. | 263,200 | 9,796 | |
Mohawk Industries, Inc. (a) | 62,900 | 8,055 | |
17,851 | |||
Internet & Direct Marketing Retail - 0.8% | |||
Liberty Interactive Corp. QVC Group Series A (a) | 331,300 | 7,361 | |
Leisure Products - 1.0% | |||
Mattel, Inc. (a)(b) | 628,300 | 8,733 | |
Multiline Retail - 1.6% | |||
Dollar Tree, Inc. (a) | 158,400 | 13,744 | |
Specialty Retail - 1.0% | |||
Lowe's Companies, Inc. | 90,000 | 8,493 | |
TOTAL CONSUMER DISCRETIONARY | 105,892 | ||
CONSUMER STAPLES - 5.1% | |||
Food Products - 2.3% | |||
Conagra Brands, Inc. | 129,700 | 4,194 | |
Darling International, Inc. (a) | 714,522 | 15,634 | |
19,828 | |||
Household Products - 1.0% | |||
Spectrum Brands Holdings, Inc. | 182,700 | 9,022 | |
Personal Products - 0.6% | |||
Coty, Inc. Class A | 625,000 | 5,213 | |
Tobacco - 1.2% | |||
British American Tobacco PLC (United Kingdom) | 289,642 | 10,141 | |
TOTAL CONSUMER STAPLES | 44,204 | ||
ENERGY - 7.0% | |||
Energy Equipment & Services - 0.7% | |||
Baker Hughes, a GE Co. Class A | 252,300 | 5,757 | |
Oil, Gas & Consumable Fuels - 6.3% | |||
Anadarko Petroleum Corp. | 198,516 | 10,501 | |
Cheniere Energy, Inc. (a) | 195,600 | 11,955 | |
Encana Corp. | 676,100 | 4,554 | |
Lundin Petroleum AB | 344,300 | 9,058 | |
Noble Energy, Inc. | 486,500 | 11,550 | |
Valero Energy Corp. | 88,500 | 7,071 | |
54,689 | |||
TOTAL ENERGY | 60,446 | ||
FINANCIALS - 17.9% | |||
Banks - 4.3% | |||
U.S. Bancorp | 359,384 | 19,572 | |
Wells Fargo & Co. | 332,770 | 18,063 | |
37,635 | |||
Capital Markets - 7.0% | |||
Ameriprise Financial, Inc. | 83,900 | 10,886 | |
Apollo Global Management LLC Class A | 454,450 | 12,811 | |
Ares Management Corp. | 157,900 | 3,543 | |
Invesco Ltd. | 367,800 | 7,485 | |
State Street Corp. | 146,900 | 10,727 | |
The Blackstone Group LP | 457,400 | 15,428 | |
60,880 | |||
Consumer Finance - 3.9% | |||
OneMain Holdings, Inc. (a) | 317,300 | 9,287 | |
SLM Corp. (a) | 798,000 | 8,195 | |
Synchrony Financial | 633,413 | 16,456 | |
33,938 | |||
Diversified Financial Services - 0.2% | |||
Donnelley Financial Solutions, Inc. (a) | 124,610 | 2,076 | |
Insurance - 2.5% | |||
American International Group, Inc. | 182,100 | 7,876 | |
Chubb Ltd. | 101,282 | 13,545 | |
21,421 | |||
TOTAL FINANCIALS | 155,950 | ||
HEALTH CARE - 4.9% | |||
Health Care Providers & Services - 2.3% | |||
Cigna Corp. | 40,600 | 9,069 | |
CVS Health Corp. | 136,100 | 10,915 | |
19,984 | |||
Pharmaceuticals - 2.6% | |||
Allergan PLC | 45,800 | 7,172 | |
Jazz Pharmaceuticals PLC (a) | 103,400 | 15,634 | |
22,806 | |||
TOTAL HEALTH CARE | 42,790 | ||
INDUSTRIALS - 11.7% | |||
Aerospace & Defense - 2.2% | |||
Huntington Ingalls Industries, Inc. | 56,100 | 12,090 | |
United Technologies Corp. | 54,600 | 6,652 | |
18,742 | |||
Airlines - 1.0% | |||
American Airlines Group, Inc. | 227,300 | 9,128 | |
Commercial Services & Supplies - 1.3% | |||
The Brink's Co. | 156,900 | 11,112 | |
Construction & Engineering - 1.5% | |||
AECOM (a) | 397,100 | 12,771 | |
Machinery - 1.1% | |||
WABCO Holdings, Inc. (a) | 80,000 | 9,716 | |
Professional Services - 0.9% | |||
Nielsen Holdings PLC | 291,900 | 7,931 | |
Trading Companies & Distributors - 3.1% | |||
AerCap Holdings NV (a) | 206,537 | 10,920 | |
Fortress Transportation & Infrastructure Investors LLC | 356,800 | 5,677 | |
HD Supply Holdings, Inc. (a) | 267,900 | 10,689 | |
27,286 | |||
Transportation Infrastructure - 0.6% | |||
Macquarie Infrastructure Co. LLC | 123,800 | 5,162 | |
TOTAL INDUSTRIALS | 101,848 | ||
INFORMATION TECHNOLOGY - 9.2% | |||
Communications Equipment - 0.6% | |||
CommScope Holding Co., Inc. (a) | 289,968 | 5,248 | |
Electronic Equipment & Components - 0.6% | |||
Flextronics International Ltd. (a) | 538,400 | 4,711 | |
IT Services - 4.8% | |||
Cognizant Technology Solutions Corp. Class A | 90,300 | 6,432 | |
Conduent, Inc. (a) | 557,400 | 7,146 | |
DXC Technology Co. | 114,100 | 7,193 | |
First Data Corp. Class A (a) | 459,240 | 8,762 | |
Leidos Holdings, Inc. | 185,600 | 11,693 | |
41,226 | |||
Semiconductors & Semiconductor Equipment - 1.7% | |||
Broadcom, Inc. | 32,300 | 7,668 | |
NXP Semiconductors NV | 89,200 | 7,437 | |
15,105 | |||
Software - 1.5% | |||
Micro Focus International PLC | 672,900 | 13,215 | |
TOTAL INFORMATION TECHNOLOGY | 79,505 | ||
MATERIALS - 7.8% | |||
Chemicals - 5.5% | |||
DowDuPont, Inc. | 222,312 | 12,861 | |
LyondellBasell Industries NV Class A | 122,092 | 11,392 | |
Nutrien Ltd. | 228,400 | 11,765 | |
Westlake Chemical Corp. | 163,903 | 11,881 | |
47,899 | |||
Construction Materials - 0.8% | |||
Eagle Materials, Inc. | 98,600 | 7,198 | |
Containers & Packaging - 1.5% | |||
Crown Holdings, Inc. (a) | 253,554 | 13,002 | |
TOTAL MATERIALS | 68,099 | ||
REAL ESTATE - 13.2% | |||
Equity Real Estate Investment Trusts (REITs) - 12.1% | |||
American Tower Corp. | 145,808 | 23,990 | |
Douglas Emmett, Inc. | 305,000 | 11,261 | |
Equinix, Inc. | 40,800 | 15,719 | |
Equity Lifestyle Properties, Inc. | 168,100 | 16,731 | |
National Retail Properties, Inc. | 374,300 | 18,737 | |
Public Storage | 86,400 | 18,426 | |
104,864 | |||
Real Estate Management & Development - 1.1% | |||
CBRE Group, Inc. (a) | 225,300 | 9,841 | |
TOTAL REAL ESTATE | 114,705 | ||
UTILITIES - 7.2% | |||
Electric Utilities - 2.6% | |||
PPL Corp. | 742,600 | 22,716 | |
Multi-Utilities - 4.6% | |||
Ameren Corp. | 267,900 | 18,383 | |
Sempra Energy | 188,188 | 21,683 | |
40,066 | |||
TOTAL UTILITIES | 62,782 | ||
TOTAL COMMON STOCKS | |||
(Cost $846,811) | 867,453 | ||
Money Market Funds - 1.8% | |||
Fidelity Cash Central Fund, 2.27% (c) | 1,920,988 | 1,921 | |
Fidelity Securities Lending Cash Central Fund 2.27% (c)(d) | 14,049,840 | 14,051 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $15,972) | 15,972 | ||
TOTAL INVESTMENT IN SECURITIES - 101.6% | |||
(Cost $862,783) | 883,425 | ||
NET OTHER ASSETS (LIABILITIES) - (1.6)% | (13,893) | ||
NET ASSETS - 100% | $869,532 |
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 | $45 |
Fidelity Securities Lending Cash Central Fund | 384 |
Total | $429 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, 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: | ||||
Communication Services | $31,232 | $31,232 | $-- | $-- |
Consumer Discretionary | 105,892 | 105,892 | -- | -- |
Consumer Staples | 44,204 | 34,063 | 10,141 | -- |
Energy | 60,446 | 60,446 | -- | -- |
Financials | 155,950 | 155,950 | -- | -- |
Health Care | 42,790 | 42,790 | -- | -- |
Industrials | 101,848 | 101,848 | -- | -- |
Information Technology | 79,505 | 66,290 | 13,215 | -- |
Materials | 68,099 | 68,099 | -- | -- |
Real Estate | 114,705 | 114,705 | -- | -- |
Utilities | 62,782 | 62,782 | -- | -- |
Money Market Funds | 15,972 | 15,972 | -- | -- |
Total Investments in Securities: | $883,425 | $860,069 | $23,356 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 82.6% |
United Kingdom | 4.4% |
Netherlands | 3.4% |
Canada | 2.8% |
Ireland | 2.6% |
Switzerland | 1.6% |
Sweden | 1.1% |
Others (Individually Less Than 1%) | 1.5% |
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, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $13,603) — See accompanying schedule: Unaffiliated issuers (cost $846,811) | $867,453 | |
Fidelity Central Funds (cost $15,972) | 15,972 | |
Total Investment in Securities (cost $862,783) | $883,425 | |
Receivable for investments sold | 592 | |
Receivable for fund shares sold | 129 | |
Dividends receivable | 991 | |
Distributions receivable from Fidelity Central Funds | 6 | |
Prepaid expenses | 2 | |
Other receivables | 61 | |
Total assets | 885,206 | |
Liabilities | ||
Payable for fund shares redeemed | $1,052 | |
Accrued management fee | 196 | |
Distribution and service plan fees payable | 159 | |
Other affiliated payables | 161 | |
Other payables and accrued expenses | 51 | |
Collateral on securities loaned | 14,055 | |
Total liabilities | 15,674 | |
Net Assets | $869,532 | |
Net Assets consist of: | ||
Paid in capital | $748,818 | |
Total distributable earnings (loss) | 120,714 | |
Net Assets | $869,532 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($175,199 ÷ 5,233.4 shares) | $33.48 | |
Maximum offering price per share (100/94.25 of $33.48) | $35.52 | |
Class M: | ||
Net Asset Value and redemption price per share ($225,326 ÷ 6,408.5 shares) | $35.16 | |
Maximum offering price per share (100/96.50 of $35.16) | $36.44 | |
Class C: | ||
Net Asset Value and offering price per share ($34,318 ÷ 1,185.6 shares)(a) | $28.95 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($323,831 ÷ 8,295.8 shares) | $39.04 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($49,240 ÷ 1,261.5 shares) | $39.03 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($61,618 ÷ 1,681.5 shares) | $36.64 |
(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, 2018 | |
Investment Income | ||
Dividends | $18,459 | |
Income from Fidelity Central Funds | 429 | |
Total income | 18,888 | |
Expenses | ||
Management fee | ||
Basic fee | $5,438 | |
Performance adjustment | (1,426) | |
Transfer agent fees | 1,779 | |
Distribution and service plan fees | 2,180 | |
Accounting and security lending fees | 340 | |
Custodian fees and expenses | 24 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 104 | |
Audit | 69 | |
Legal | 36 | |
Interest | 11 | |
Miscellaneous | 6 | |
Total expenses before reductions | 8,566 | |
Expense reductions | (124) | |
Total expenses after reductions | 8,442 | |
Net investment income (loss) | 10,446 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 100,516 | |
Fidelity Central Funds | (1) | |
Foreign currency transactions | (7) | |
Total net realized gain (loss) | 100,508 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (168,177) | |
Total change in net unrealized appreciation (depreciation) | (168,177) | |
Net gain (loss) | (67,669) | |
Net increase (decrease) in net assets resulting from operations | $(57,223) |
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, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $10,446 | $19,237 |
Net realized gain (loss) | 100,508 | 81,495 |
Change in net unrealized appreciation (depreciation) | (168,177) | 107,647 |
Net increase (decrease) in net assets resulting from operations | (57,223) | 208,379 |
Distributions to shareholders | (87,063) | – |
Distributions to shareholders from net investment income | – | (18,090) |
Distributions to shareholders from net realized gain | – | (229,818) |
Total distributions | (87,063) | (247,908) |
Share transactions - net increase (decrease) | (102,890) | (206,873) |
Total increase (decrease) in net assets | (247,176) | (246,402) |
Net Assets | ||
Beginning of period | 1,116,708 | 1,363,110 |
End of period | $869,532 | $1,116,708 |
Other Information | ||
Undistributed net investment income end of period | $14,922 |
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, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $38.91 | $40.25 | $39.01 | $38.91 | $36.02 |
Income from Investment Operations | |||||
Net investment income (loss)A | .35 | .60B | .56 | .35 | .25 |
Net realized and unrealized gain (loss) | (2.50) | 6.13 | 1.09 | .06 | 2.87 |
Total from investment operations | (2.15) | 6.73 | 1.65 | .41 | 3.12 |
Distributions from net investment income | (.51) | (.56) | (.40) | (.28)C | (.23) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.28) | (8.07)D | (.41) | (.31) | (.23) |
Net asset value, end of period | $33.48 | $38.91 | $40.25 | $39.01 | $38.91 |
Total ReturnE,F | (6.16)% | 19.84% | 4.33% | 1.07% | 8.74% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .91% | .91% | .86% | .93% | .96% |
Expenses net of fee waivers, if any | .91% | .91% | .86% | .93% | .96% |
Expenses net of all reductions | .90% | .90% | .86% | .93% | .96% |
Net investment income (loss) | .88% | 1.64%B | 1.48% | .89% | .68% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $175 | $212 | $203 | $215 | $233 |
Portfolio turnover rateI | 72% | 46% | 121% | 9% | 6% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.29%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $8.07 per share is comprised of distributions from net investment income of $.555 and distributions from net realized gain of $7.517 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.
Fidelity Advisor Value Strategies Fund Class M
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $40.69 | $41.72 | $40.40 | $40.28 | $37.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .28 | .54B | .49 | .28 | .18 |
Net realized and unrealized gain (loss) | (2.63) | 6.40 | 1.14 | .06 | 2.98 |
Total from investment operations | (2.35) | 6.94 | 1.63 | .34 | 3.16 |
Distributions from net investment income | (.41) | (.46) | (.30) | (.19)C | (.16) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.18) | (7.97)D | (.31) | (.22) | (.16) |
Net asset value, end of period | $35.16 | $40.69 | $41.72 | $40.40 | $40.28 |
Total ReturnE,F | (6.38)% | 19.57% | 4.11% | .86% | 8.51% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.14% | 1.13% | 1.08% | 1.15% | 1.17% |
Expenses net of fee waivers, if any | 1.14% | 1.13% | 1.08% | 1.14% | 1.17% |
Expenses net of all reductions | 1.13% | 1.13% | 1.07% | 1.14% | 1.17% |
Net investment income (loss) | .75% | 1.42%B | 1.27% | .68% | .47% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $225 | $271 | $263 | $294 | $324 |
Portfolio turnover rateI | 72% | 46% | 121% | 9% | 6% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.06%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $7.97 per share is comprised of distributions from net investment income of $.456 and distributions from net realized gain of $7.517 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.
Fidelity Advisor Value Strategies Fund Class C
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $34.09 | $36.19 | $35.12 | $35.07 | $32.52 |
Income from Investment Operations | |||||
Net investment income (loss)A | .06 | .28B | .24 | .05 | (.03) |
Net realized and unrealized gain (loss) | (2.16) | 5.43 | .97 | .07 | 2.60 |
Total from investment operations | (2.10) | 5.71 | 1.21 | .12 | 2.57 |
Distributions from net investment income | (.27) | (.30) | (.13) | (.04)C | (.02) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.04) | (7.81)D | (.14) | (.07) | (.02) |
Net asset value, end of period | $28.95 | $34.09 | $36.19 | $35.12 | $35.07 |
Total ReturnE,F | (6.89)% | 18.97% | 3.49% | .33% | 7.91% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.68% | 1.68% | 1.63% | 1.70% | 1.72% |
Expenses net of fee waivers, if any | 1.68% | 1.68% | 1.63% | 1.69% | 1.72% |
Expenses net of all reductions | 1.67% | 1.67% | 1.63% | 1.69% | 1.72% |
Net investment income (loss) | .21% | .87%B | .72% | .13% | (.08)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $34 | $46 | $44 | $49 | $53 |
Portfolio turnover rateI | 72% | 46% | 121% | 9% | 6% |
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 .52%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $7.81 per share is comprised of distributions from net investment income of $.295 and distributions from net realized gain of $7.517 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.
Fidelity Advisor Value Strategies Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $44.81 | $45.17 | $43.72 | $43.56 | $40.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .52 | .81B | .76 | .51 | .40 |
Net realized and unrealized gain (loss) | (2.92) | 7.01 | 1.21 | .07 | 3.21 |
Total from investment operations | (2.40) | 7.82 | 1.97 | .58 | 3.61 |
Distributions from net investment income | (.61) | (.66) | (.51) | (.39)C | (.33) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.37)D | (8.18) | (.52) | (.42) | (.33) |
Net asset value, end of period | $39.04 | $44.81 | $45.17 | $43.72 | $43.56 |
Total ReturnE | (5.89)% | 20.18% | 4.64% | 1.35% | 9.05% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .63% | .62% | .56% | .67% | .69% |
Expenses net of fee waivers, if any | .63% | .62% | .56% | .67% | .69% |
Expenses net of all reductions | .62% | .62% | .55% | .66% | .69% |
Net investment income (loss) | 1.26% | 1.93%B | 1.79% | 1.16% | .95% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $324 | $436 | $713 | $716 | $786 |
Portfolio turnover rateH | 72% | 46% | 121% | 9% | 6% |
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 1.57%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $3.37 per share is comprised of distributions from net investment income of $.608 and distributions from net realized gain of $2.765 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.
Fidelity Advisor Value Strategies Fund Class K
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $44.82 | $45.18 | $43.74 | $43.57 | $40.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .58 | .86B | .80 | .58 | .47 |
Net realized and unrealized gain (loss) | (2.93) | 7.02 | 1.22 | .07 | 3.20 |
Total from investment operations | (2.35) | 7.88 | 2.02 | .65 | 3.67 |
Distributions from net investment income | (.67) | (.72) | (.57) | (.45)C | (.38) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.44) | (8.24) | (.58) | (.48) | (.38) |
Net asset value, end of period | $39.03 | $44.82 | $45.18 | $43.74 | $43.57 |
Total ReturnD | (5.80)% | 20.36% | 4.76% | 1.51% | 9.21% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .50% | .50% | .44% | .51% | .53% |
Expenses net of fee waivers, if any | .50% | .50% | .44% | .51% | .53% |
Expenses net of all reductions | .49% | .49% | .43% | .51% | .53% |
Net investment income (loss) | 1.39% | 2.05%B | 1.91% | 1.31% | 1.11% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $49 | $79 | $68 | $72 | $97 |
Portfolio turnover rateG | 72% | 46% | 121% | 9% | 6% |
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 1.70%.
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.
Fidelity Advisor Value Strategies Fund Class I
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $42.27 | $43.07 | $41.71 | $41.57 | $38.46 |
Income from Investment Operations | |||||
Net investment income (loss)A | .48 | .74B | .70 | .48 | .37 |
Net realized and unrealized gain (loss) | (2.75) | 6.64 | 1.15 | .08 | 3.06 |
Total from investment operations | (2.27) | 7.38 | 1.85 | .56 | 3.43 |
Distributions from net investment income | (.59) | (.66) | (.48) | (.39)C | (.32) |
Distributions from net realized gain | (2.77) | (7.52) | (.01) | (.03)C | – |
Total distributions | (3.36) | (8.18) | (.49) | (.42) | (.32) |
Net asset value, end of period | $36.64 | $42.27 | $43.07 | $41.71 | $41.57 |
Total ReturnD | (5.95)% | 20.13% | 4.57% | 1.36% | 9.01% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .67% | .67% | .61% | .68% | .71% |
Expenses net of fee waivers, if any | .67% | .67% | .61% | .68% | .71% |
Expenses net of all reductions | .66% | .66% | .61% | .68% | .71% |
Net investment income (loss) | 1.22% | 1.88%B | 1.74% | 1.14% | .93% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $62 | $72 | $73 | $65 | $86 |
Portfolio turnover rateG | 72% | 46% | 121% | 9% | 6% |
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 1.53%.
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, 2018
(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 M, 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018 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 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.
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, 2018, 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 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, market discount, deferred trustees compensation, partnerships, and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $101,029 |
Gross unrealized depreciation | (80,500) |
Net unrealized appreciation (depreciation) | $20,529 |
Tax Cost | $862,896 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $5,303 |
Undistributed long-term capital gain | $94,882 |
Net unrealized appreciation (depreciation) on securities and other investments | $20,529 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $66,957 | $ 18,090 |
Long-term Capital Gains | 20,106 | 229,818 |
Total | $87,063 | $ 247,908 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $723,866 and $888,502, 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 .24% 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 .40% 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% | $493 | $11 |
Class M | .25% | .25% | 1,271 | 38 |
Class C | .75% | .25% | 416 | 17 |
$2,180 | $66 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares. For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $17 |
Class M | 6 |
Class C(a) | 3 |
$26 |
(a) When 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 K. FIOOC 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 | $393 | .20 |
Class M | 453 | .18 |
Class C | 92 | .22 |
Fidelity Value Strategies Fund | 666 | .17 |
Class K | 28 | .05 |
Class I | 147 | .21 |
$1,779 |
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. For the period, the fees were equivalent to an annual rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $20 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $10,746 | 1.85% | $11 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $3.
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 $384, including less than five hundred dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $113 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $11.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Class A | $17,622 | $– |
Class M | 21,054 | – |
Class C | 4,061 | – |
Fidelity Value Strategies Fund | 32,529 | – |
Class K | 6,037 | – |
Class I | 5,760 | – |
Total | $87,063 | $– |
From net investment income | ||
Class A | $– | $2,766 |
Class M | – | 2,831 |
Class C | – | 357 |
Fidelity Value Strategies Fund | – | 9,926 |
Class K | – | 1,087 |
Class I | – | 1,123 |
Total | $– | $18,090 |
From net realized gain | ||
Class A | $– | $37,462 |
Class M | – | 46,673 |
Class C | – | 9,088 |
Fidelity Value Strategies Fund | – | 112,547 |
Class K | – | 11,298 |
Class I | – | 12,750 |
Total | $– | $229,818 |
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, 2018 | Year ended November 30, 2017 | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Class A | ||||
Shares sold | 218 | 296 | $7,830 | $10,638 |
Reinvestment of distributions | 464 | 1,127 | 16,785 | 37,943 |
Shares redeemed | (892) | (1,026) | (32,019) | (36,865) |
Net increase (decrease) | (210) | 397 | $(7,404) | $11,716 |
Class M | ||||
Shares sold | 247 | 349 | $9,286 | $13,029 |
Reinvestment of distributions | 516 | 1,294 | 19,633 | 45,666 |
Shares redeemed | (1,018) | (1,277) | (38,196) | (48,234) |
Net increase (decrease) | (255) | 366 | $(9,277) | $10,461 |
Class C | ||||
Shares sold | 86 | 89 | $2,708 | $2,827 |
Reinvestment of distributions | 126 | 307 | 3,972 | 9,116 |
Shares redeemed | (378) | (264) | (11,722) | (8,379) |
Net increase (decrease) | (166) | 132 | $(5,042) | $3,564 |
Fidelity Value Strategies Fund | ||||
Shares sold | 505 | 1,169 | $21,236 | $50,402 |
Reinvestment of distributions | 730 | 2,966 | 30,693 | 114,742 |
Shares redeemed | (2,665) | (10,188) | (111,070) | (409,648) |
Net increase (decrease) | (1,430) | (6,053) | $(59,141) | $(244,504) |
Class K | ||||
Shares sold | 306 | 617 | $12,927 | $26,514 |
Reinvestment of distributions | 144 | 321 | 6,037 | 12,384 |
Shares redeemed | (959) | (665) | (39,818) | (27,215) |
Net increase (decrease) | (509) | 273 | $(20,854) | $11,683 |
Class I | ||||
Shares sold | 248 | 459 | $9,764 | $17,823 |
Reinvestment of distributions | 139 | 339 | 5,482 | 12,386 |
Shares redeemed | (420) | (774) | (16,418) | (30,001) |
Net increase (decrease) | (33) | 24 | $(1,172) | $208 |
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 Value Strategies Fund:
Opinion on the Financial Statements and Financial Highlights
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, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 14, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
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. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 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 other equity 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 Fidelity 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. 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 Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), 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).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
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.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
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) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). 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), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ 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 a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. 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
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
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).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
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, 2018 to November 30, 2018).
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, which was eliminated effective August 1, 2018, 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, which was eliminated effective August 1, 2018, 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, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Class A | .85% | |||
Actual | $1,000.00 | $948.20 | $4.15 | |
Hypothetical-C | $1,000.00 | $1,020.81 | $4.31 | |
Class M | 1.08% | |||
Actual | $1,000.00 | $947.20 | $5.27 | |
Hypothetical-C | $1,000.00 | $1,019.65 | $5.47 | |
Class C | 1.62% | |||
Actual | $1,000.00 | $944.80 | $7.90 | |
Hypothetical-C | $1,000.00 | $1,016.95 | $8.19 | |
Fidelity Value Strategies Fund | .57% | |||
Actual | $1,000.00 | $949.60 | $2.79 | |
Hypothetical-C | $1,000.00 | $1,022.21 | $2.89 | |
Class K | .43% | |||
Actual | $1,000.00 | $950.10 | $2.10 | |
Hypothetical-C | $1,000.00 | $1,022.91 | $2.18 | |
Class I | .61% | |||
Actual | $1,000.00 | $949.20 | $2.98 | |
Hypothetical-C | $1,000.00 | $1,022.01 | $3.09 |
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 183/365 (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 | 12/27/18 | 12/26/18 | $0.289 | $4.040 |
Class M | 12/27/18 | 12/26/18 | $0.192 | $4.040 |
Class C | 12/27/18 | 12/26/18 | $0.033 | $4.040 |
Fidelity Value Strategies Fund | 12/27/18 | 12/26/18 | $0.378 | $4.040 |
Class K | 12/27/18 | 12/26/18 | $0.436 | $4.040 |
Class I | 12/27/18 | 12/26/18 | $0.368 | $4.040 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $95,770,881, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class M, Class C, Fidelity Value Strategies Fund, Class K, and Class I designate 24%, 25%, 26%, 23%, 22%, and 23% of the dividends distributed in December 2017, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class M, Class C, Fidelity Value Strategies Fund, Class K, and Class I designate 27%, 28%, 30%, 26%, 26%, and 26% 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 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Value Strategies Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
SOI-ANN-0119
1.539183.121
Item 2.
Code of Ethics
As of the end of the period, November 30, 2018, 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, 2018 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Equity Growth Fund | $50,000 | $100 | $6,300 | $1,400 |
Fidelity Advisor Equity Income Fund | $47,000 | $100 | $7,500 | $1,400 |
Fidelity Advisor Equity Value Fund | $45,000 | $100 | $6,600 | $1,300 |
Fidelity Advisor Growth & Income Fund | $46,000 | $100 | $5,300 | $1,300 |
Fidelity Advisor Growth Opportunities Fund | $54,000 | $100 | $6,100 | $1,600 |
Fidelity Advisor Large Cap Fund | $48,000 | $100 | $5,000 | $1,300 |
Fidelity Advisor Series Growth Opportunities Fund | $51,000 | $100 | $6,100 | $1,500 |
Fidelity Advisor Stock Selector Mid Cap Fund | $46,000 | $100 | $5,100 | $1,300 |
Fidelity Advisor Value Strategies Fund | $46,000 | $100 | $7,100 | $1,400 |
November 30, 2017 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Equity Growth Fund | $52,000 | $100 | $6,400 | $1,400 |
Fidelity Advisor Equity Income Fund | $47,000 | $100 | $7,200 | $1,300 |
Fidelity Advisor Equity Value Fund | $54,000 | $100 | $6,700 | $1,400 |
Fidelity Advisor Growth & Income Fund | $48,000 | $100 | $5,400 | $1,300 |
Fidelity Advisor Growth Opportunities Fund | $54,000 | $100 | $6,200 | $1,500 |
Fidelity Advisor Large Cap Fund | $51,000 | $100 | $5,400 | $1,300 |
Fidelity Advisor Series Growth Opportunities Fund | $51,000 | $100 | $6,400 | $1,400 |
Fidelity Advisor Stock Selector Mid Cap Fund | $46,000 | $100 | $5,200 | $1,300 |
Fidelity Advisor Value Strategies Fund | $46,000 | $100 | $7,200 | $1,300 |
AAmounts 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, 2018 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Dividend Growth Fund | $54,000 | $4,600 | $3,300 | $2,300 |
Fidelity Advisor Series Equity Growth Fund | $31,000 | $2,700 | $2,600 | $1,300 |
Fidelity Advisor Series Small Cap Fund | $42,000 | $3,600 | $3,300 | $1,800 |
Fidelity Advisor Small Cap Fund | $44,000 | $3,800 | $3,300 | $1,900 |
November 30, 2017 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Dividend Growth Fund | $54,000 | $4,900 | $3,700 | $2,400 |
Fidelity Advisor Series Equity Growth Fund | $31,000 | $2,900 | $3,000 | $1,400 |
Fidelity Advisor Series Small Cap Fund | $43,000 | $3,900 | $3,700 | $1,900 |
Fidelity Advisor Small Cap Fund | $45,000 | $4,100 | $3,700 | $2,000 |
|
|
|
|
|
AAmounts 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, 2018A | November 30, 2017A |
Audit-Related Fees | $290,000 | $- |
Tax Fees | $5,000 | $25,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
Services Billed by PwC
| November 30, 2018A | November 30, 2017A |
Audit-Related Fees | $7,745,000 | $9,220,000 |
Tax Fees | $20,000 | $150,000 |
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, 2018A | November 30, 2017A |
Deloitte Entities | $825,000 | $365,000 |
PwC | $10,975,000 | $11,715,000 |
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 periodically.
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 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.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
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 |
|
|
Date: | January 24, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | January 24, 2019 |
By: | /s/John J. Burke III |
| John J. Burke III |
| Chief Financial Officer |
|
|
Date: | January 24, 2019 |