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 811-03785
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)
Cynthia Lo Bessette, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | November 30 |
Date of reporting period: | November 30, 2019 |
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® Value Strategies Fund
Annual Report
November 30, 2019
Includes Fidelity and Fidelity Advisor share classes
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fipro_logo.jpg)
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
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 9.65% | 5.39% | 10.61% |
Class M (incl. 3.50% sales charge) | 12.01% | 5.65% | 10.65% |
Class C (incl. contingent deferred sales charge) | 14.44% | 5.83% | 10.42% |
Fidelity® Value Strategies Fund | 16.63% | 6.94% | 11.59% |
Class K | 16.80% | 7.09% | 11.76% |
Class I | 16.64% | 6.91% | 11.57% |
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, 2009, 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/0001379491-20-000191/img552792713_740.jpg)
Period Ending Values | ||
$27,410 | Fidelity Advisor® Value Strategies Fund - Class A | |
$32,911 | Russell Midcap® Value Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Portfolio Manager Matthew Friedman: For the fiscal year, the fund’s share classes returned between 15% and 17% (excluding sales charges, if applicable), handily outpacing the 10.37% result of the benchmark, the Russell Midcap® Value Index. Successful stock picking across the majority of sectors and industries helped the fund outperform the benchmark. Choices in the diversified financials industry helped by far the most, led by the fund’s non-benchmark investments in private equity and alternative asset managers Blackstone Group and Apollo Global Management. Both Blackstone and Apollo announced this period that they would flip from publicly traded partnerships to C-Corps in order to benefit from the 2017 changes in corporate taxes. Elsewhere, three of the fund’s top-five individual contributors were non-benchmark real estate names: Equity Lifestyle Properties (ELS), Equinix and American Tower. Each benefited as investors viewed real estate as a safe haven from ongoing trade disputes. Conversely, Chemicals giant DuPont de Nemours detracted more than any other individual fund holding, partly due to a lawsuit filed against this firm by Chemours, a 2015 spinoff of DuPont. Owning Qurate Retail Group, parent company of popular video-based retailers QVC International and HSN, also hurt the fund’s relative return. We eliminated the fund’s stakes in Blackstone and Qurate by period end.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, 2019
% of fund's net assets | |
Sempra Energy | 3.1 |
SunTrust Banks, Inc. | 2.3 |
Vistra Energy Corp. | 2.3 |
CubeSmart | 2.2 |
Equity Lifestyle Properties, Inc. | 2.2 |
Exelon Corp. | 2.2 |
Edison International | 2.1 |
Equinix, Inc. | 2.0 |
Capital One Financial Corp. | 2.0 |
CBRE Group, Inc. | 1.9 |
22.3 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Financials | 19.5 |
Industrials | 14.2 |
Real Estate | 12.7 |
Utilities | 9.7 |
Consumer Discretionary | 9.1 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019* | ||
Stocks | 99.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
* Foreign investments - 10.6%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 2.9% | |||
Diversified Telecommunication Services - 1.0% | |||
GCI Liberty, Inc. (a) | 131,500 | $9,335 | |
Media - 1.9% | |||
Liberty Global PLC Class C (a) | 291,600 | 6,269 | |
Nexstar Broadcasting Group, Inc. Class A | 96,600 | 10,405 | |
16,674 | |||
TOTAL COMMUNICATION SERVICES | 26,009 | ||
CONSUMER DISCRETIONARY - 9.1% | |||
Distributors - 1.1% | |||
LKQ Corp. (a) | 272,300 | 9,607 | |
Diversified Consumer Services - 0.6% | |||
Laureate Education, Inc. Class A (a) | 317,700 | 5,512 | |
Hotels, Restaurants & Leisure - 1.3% | |||
Eldorado Resorts, Inc. (a)(b) | 218,800 | 11,708 | |
Household Durables - 1.1% | |||
Mohawk Industries, Inc. (a) | 70,200 | 9,784 | |
Internet & Direct Marketing Retail - 1.1% | |||
eBay, Inc. | 272,700 | 9,686 | |
Leisure Products - 0.6% | |||
Mattel, Inc. (a)(b) | 466,000 | 5,452 | |
Specialty Retail - 0.9% | |||
Lowe's Companies, Inc. | 69,800 | 8,188 | |
Textiles, Apparel & Luxury Goods - 2.4% | |||
Capri Holdings Ltd. (a) | 301,400 | 11,194 | |
PVH Corp. | 110,600 | 10,724 | |
21,918 | |||
TOTAL CONSUMER DISCRETIONARY | 81,855 | ||
CONSUMER STAPLES - 6.7% | |||
Food & Staples Retailing - 1.2% | |||
U.S. Foods Holding Corp. (a) | 271,000 | 10,778 | |
Food Products - 2.8% | |||
Conagra Brands, Inc. | 431,100 | 12,446 | |
Darling International, Inc. (a) | 532,822 | 12,681 | |
25,127 | |||
Household Products - 1.4% | |||
Spectrum Brands Holdings, Inc. | 201,500 | 12,598 | |
Tobacco - 1.3% | |||
Altria Group, Inc. | 234,600 | 11,660 | |
TOTAL CONSUMER STAPLES | 60,163 | ||
ENERGY - 6.1% | |||
Oil, Gas & Consumable Fuels - 6.1% | |||
Cheniere Energy, Inc. (a) | 193,100 | 11,690 | |
Encana Corp. (Toronto) | 1,531,100 | 6,052 | |
Golar LNG Ltd. | 350,300 | 4,561 | |
Hess Corp. | 208,300 | 12,933 | |
Noble Energy, Inc. | 551,100 | 11,441 | |
Valero Energy Corp. | 88,200 | 8,422 | |
55,099 | |||
FINANCIALS - 19.5% | |||
Banks - 3.2% | |||
East West Bancorp, Inc. | 178,737 | 8,190 | |
SunTrust Banks, Inc. | 298,400 | 21,139 | |
29,329 | |||
Capital Markets - 8.2% | |||
Ameriprise Financial, Inc. | 85,000 | 13,929 | |
Apollo Global Management LLC Class A | 317,650 | 13,913 | |
Lazard Ltd. Class A | 219,600 | 8,485 | |
LPL Financial | 145,000 | 13,391 | |
Northern Trust Corp. | 89,974 | 9,649 | |
Raymond James Financial, Inc. | 163,400 | 14,677 | |
74,044 | |||
Consumer Finance - 5.5% | |||
Capital One Financial Corp. | 179,600 | 17,962 | |
OneMain Holdings, Inc. | 241,200 | 10,393 | |
SLM Corp. | 1,043,884 | 8,904 | |
Synchrony Financial | 334,600 | 12,517 | |
49,776 | |||
Insurance - 2.6% | |||
American International Group, Inc. | 208,400 | 10,974 | |
The Travelers Companies, Inc. | 90,000 | 12,305 | |
23,279 | |||
TOTAL FINANCIALS | 176,428 | ||
HEALTH CARE - 6.1% | |||
Biotechnology - 0.9% | |||
Alexion Pharmaceuticals, Inc. (a) | 68,800 | 7,839 | |
Health Care Providers & Services - 4.1% | |||
Centene Corp. (a) | 204,600 | 12,372 | |
Cigna Corp. | 69,600 | 13,914 | |
Humana, Inc. | 32,000 | 10,919 | |
37,205 | |||
Pharmaceuticals - 1.1% | |||
Jazz Pharmaceuticals PLC (a) | 67,300 | 10,170 | |
TOTAL HEALTH CARE | 55,214 | ||
INDUSTRIALS - 14.2% | |||
Aerospace & Defense - 2.0% | |||
General Dynamics Corp. | 38,200 | 6,942 | |
Huntington Ingalls Industries, Inc. | 45,500 | 11,451 | |
18,393 | |||
Airlines - 0.9% | |||
American Airlines Group, Inc. | 267,800 | 7,697 | |
Commercial Services & Supplies - 1.2% | |||
The Brink's Co. | 115,100 | 10,704 | |
Construction & Engineering - 2.5% | |||
AECOM (a) | 295,000 | 12,782 | |
Williams Scotsman Corp. (a) | 570,400 | 10,130 | |
22,912 | |||
Machinery - 0.5% | |||
Allison Transmission Holdings, Inc. | 92,900 | 4,496 | |
Road & Rail - 1.9% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 171,100 | 6,329 | |
Ryder System, Inc. | 209,000 | 10,970 | |
17,299 | |||
Trading Companies & Distributors - 5.2% | |||
AerCap Holdings NV (a) | 195,737 | 12,099 | |
Ashtead Group PLC | 209,700 | 6,373 | |
Fortress Transportation & Infrastructure Investors LLC | 338,700 | 6,100 | |
HD Supply Holdings, Inc. (a) | 286,300 | 11,400 | |
Univar, Inc. (a) | 475,500 | 11,136 | |
47,108 | |||
TOTAL INDUSTRIALS | 128,609 | ||
INFORMATION TECHNOLOGY - 7.1% | |||
Communications Equipment - 0.8% | |||
CommScope Holding Co., Inc. (a) | 569,668 | 7,747 | |
Electronic Equipment & Components - 0.7% | |||
Flextronics International Ltd. (a) | 526,800 | 6,253 | |
IT Services - 1.8% | |||
Conduent, Inc. (a) | 667,900 | 4,522 | |
DXC Technology Co. | 313,300 | 11,695 | |
16,217 | |||
Semiconductors & Semiconductor Equipment - 2.2% | |||
Marvell Technology Group Ltd. | 393,900 | 10,387 | |
NXP Semiconductors NV | 81,300 | 9,397 | |
19,784 | |||
Software - 1.6% | |||
Micro Focus International PLC | 345,229 | 5,059 | |
SS&C Technologies Holdings, Inc. | 157,900 | 9,482 | |
14,541 | |||
TOTAL INFORMATION TECHNOLOGY | 64,542 | ||
MATERIALS - 5.0% | |||
Chemicals - 3.4% | |||
DowDuPont, Inc. | 158,537 | 10,275 | |
Olin Corp. | 803,783 | 14,082 | |
The Chemours Co. LLC | 3,500 | 55 | |
The Mosaic Co. | 314,500 | 5,991 | |
30,403 | |||
Containers & Packaging - 1.6% | |||
Crown Holdings, Inc. (a) | 188,654 | 14,319 | |
TOTAL MATERIALS | 44,722 | ||
REAL ESTATE - 12.7% | |||
Equity Real Estate Investment Trusts (REITs) - 10.8% | |||
American Tower Corp. | 52,408 | 11,217 | |
CubeSmart | 651,869 | 20,104 | |
Douglas Emmett, Inc. | 273,800 | 12,066 | |
Equinix, Inc. | 32,200 | 18,253 | |
Equity Lifestyle Properties, Inc. | 268,200 | 19,868 | |
National Retail Properties, Inc. | 295,600 | 16,477 | |
97,985 | |||
Real Estate Management & Development - 1.9% | |||
CBRE Group, Inc. (a) | 301,700 | 17,203 | |
TOTAL REAL ESTATE | 115,188 | ||
UTILITIES - 9.7% | |||
Electric Utilities - 4.3% | |||
Edison International | 282,800 | 19,541 | |
Exelon Corp. | 441,800 | 19,616 | |
39,157 | |||
Independent Power and Renewable Electricity Producers - 2.3% | |||
Vistra Energy Corp. | 773,100 | 20,510 | |
Multi-Utilities - 3.1% | |||
Sempra Energy | 193,288 | 28,470 | |
TOTAL UTILITIES | 88,137 | ||
TOTAL COMMON STOCKS | |||
(Cost $793,722) | 895,966 | ||
Money Market Funds - 3.4% | |||
Fidelity Cash Central Fund 1.61% (c) | 21,748,931 | 21,753 | |
Fidelity Securities Lending Cash Central Fund 1.61% (c)(d) | 9,194,385 | 9,195 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $30,948) | 30,948 | ||
TOTAL INVESTMENT IN SECURITIES - 102.5% | |||
(Cost $824,670) | 926,914 | ||
NET OTHER ASSETS (LIABILITIES) - (2.5)% | (22,218) | ||
NET ASSETS - 100% | $904,696 |
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 | $134 |
Fidelity Securities Lending Cash Central Fund | 47 |
Total | $181 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $26,009 | $26,009 | $-- | $-- |
Consumer Discretionary | 81,855 | 81,855 | -- | -- |
Consumer Staples | 60,163 | 60,163 | -- | -- |
Energy | 55,099 | 55,099 | -- | -- |
Financials | 176,428 | 176,428 | -- | -- |
Health Care | 55,214 | 55,214 | -- | -- |
Industrials | 128,609 | 128,609 | -- | -- |
Information Technology | 64,542 | 59,483 | 5,059 | -- |
Materials | 44,722 | 44,722 | -- | -- |
Real Estate | 115,188 | 115,188 | -- | -- |
Utilities | 88,137 | 88,137 | -- | -- |
Money Market Funds | 30,948 | 30,948 | -- | -- |
Total Investments in Securities: | $926,914 | $921,855 | $5,059 | $-- |
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 | 89.4% |
Bermuda | 2.6% |
Netherlands | 2.3% |
United Kingdom | 2.0% |
British Virgin Islands | 1.2% |
Ireland | 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
Amounts in thousands (except per-share amounts) | November 30, 2019 | |
Assets | ||
Investment in securities, at value (including securities loaned of $8,872) — See accompanying schedule: Unaffiliated issuers (cost $793,722) | $895,966 | |
Fidelity Central Funds (cost $30,948) | 30,948 | |
Total Investment in Securities (cost $824,670) | $926,914 | |
Receivable for investments sold | 12 | |
Receivable for fund shares sold | 994 | |
Dividends receivable | 1,109 | |
Distributions receivable from Fidelity Central Funds | 13 | |
Prepaid expenses | 1 | |
Other receivables | 28 | |
Total assets | 929,071 | |
Liabilities | ||
Payable for investments purchased | $13,075 | |
Payable for fund shares redeemed | 1,235 | |
Accrued management fee | 515 | |
Distribution and service plan fees payable | 150 | |
Other affiliated payables | 151 | |
Other payables and accrued expenses | 51 | |
Collateral on securities loaned | 9,198 | |
Total liabilities | 24,375 | |
Net Assets | $904,696 | |
Net Assets consist of: | ||
Paid in capital | $759,768 | |
Total accumulated earnings (loss) | 144,928 | |
Net Assets | $904,696 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($203,751 ÷ 6,132.4 shares)(a) | $33.23 | |
Maximum offering price per share (100/94.25 of $33.23) | $35.26 | |
Class M: | ||
Net Asset Value and redemption price per share ($234,498 ÷ 6,655.9 shares)(a) | $35.23 | |
Maximum offering price per share (100/96.50 of $35.23) | $36.51 | |
Class C: | ||
Net Asset Value and offering price per share ($13,636 ÷ 485.8 shares)(a) | $28.07 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($331,655 ÷ 8,357.2 shares) | $39.68 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($49,205 ÷ 1,240.9 shares) | $39.65 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($71,951 ÷ 1,950.1 shares) | $36.90 |
(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, 2019 | |
Investment Income | ||
Dividends | $17,805 | |
Special dividends | 2,449 | |
Income from Fidelity Central Funds (including $47 from security lending) | 181 | |
Total income | 20,435 | |
Expenses | ||
Management fee | ||
Basic fee | $4,572 | |
Performance adjustment | (226) | |
Transfer agent fees | 1,536 | |
Distribution and service plan fees | 1,765 | |
Accounting and security lending fees | 292 | |
Custodian fees and expenses | 14 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 93 | |
Audit | 67 | |
Legal | 6 | |
Interest | 4 | |
Miscellaneous | 9 | |
Total expenses before reductions | 8,137 | |
Expense reductions | (50) | |
Total expenses after reductions | 8,087 | |
Net investment income (loss) | 12,348 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 34,761 | |
Fidelity Central Funds | 2 | |
Foreign currency transactions | (18) | |
Total net realized gain (loss) | 34,745 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 81,602 | |
Total change in net unrealized appreciation (depreciation) | 81,602 | |
Net gain (loss) | 116,347 | |
Net increase (decrease) in net assets resulting from operations | $128,695 |
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, 2019 | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $12,348 | $10,446 |
Net realized gain (loss) | 34,745 | 100,508 |
Change in net unrealized appreciation (depreciation) | 81,602 | (168,177) |
Net increase (decrease) in net assets resulting from operations | 128,695 | (57,223) |
Distributions to shareholders | (103,085) | (87,063) |
Share transactions - net increase (decrease) | 9,554 | (102,890) |
Total increase (decrease) in net assets | 35,164 | (247,176) |
Net Assets | ||
Beginning of period | 869,532 | 1,116,708 |
End of period | $904,696 | $869,532 |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.48 | $38.91 | $40.25 | $39.01 | $38.91 |
Income from Investment Operations | |||||
Net investment income (loss)A | .42B | .35 | .60C | .56 | .35 |
Net realized and unrealized gain (loss) | 3.66 | (2.50) | 6.13 | 1.09 | .06 |
Total from investment operations | 4.08 | (2.15) | 6.73 | 1.65 | .41 |
Distributions from net investment income | (.29) | (.51) | (.56) | (.40) | (.28)D |
Distributions from net realized gain | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (4.33) | (3.28) | (8.07)E | (.41) | (.31) |
Net asset value, end of period | $33.23 | $33.48 | $38.91 | $40.25 | $39.01 |
Total ReturnF,G | 16.34% | (6.16)% | 19.84% | 4.33% | 1.07% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.02% | .91% | .91% | .86% | .93% |
Expenses net of fee waivers, if any | 1.02% | .91% | .91% | .86% | .93% |
Expenses net of all reductions | 1.01% | .90% | .90% | .86% | .93% |
Net investment income (loss) | 1.39%B | .98%J | 1.64%C | 1.48% | .89% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $204 | $175 | $212 | $203 | $215 |
Portfolio turnover rateK | 66% | 72% | 46% | 121% | 9% |
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 $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.10%.
C 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E 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.
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 The 2018 net investment income (loss) ratio has been restated to reflect the reclassification of certain distributions received by the fund.
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.
Fidelity Advisor Value Strategies Fund Class M
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $35.16 | $40.69 | $41.72 | $40.40 | $40.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .37B | .28 | .54C | .49 | .28 |
Net realized and unrealized gain (loss) | 3.93 | (2.63) | 6.40 | 1.14 | .06 |
Total from investment operations | 4.30 | (2.35) | 6.94 | 1.63 | .34 |
Distributions from net investment income | (.19) | (.41) | (.46) | (.30) | (.19)D |
Distributions from net realized gain | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (4.23) | (3.18) | (7.97)E | (.31) | (.22) |
Net asset value, end of period | $35.23 | $35.16 | $40.69 | $41.72 | $40.40 |
Total ReturnF,G | 16.07% | (6.38)% | 19.57% | 4.11% | .86% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.25% | 1.14% | 1.13% | 1.08% | 1.15% |
Expenses net of fee waivers, if any | 1.24% | 1.14% | 1.13% | 1.08% | 1.14% |
Expenses net of all reductions | 1.24% | 1.13% | 1.13% | 1.07% | 1.14% |
Net investment income (loss) | 1.16%B | .75% | 1.42%C | 1.27% | .68% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $234 | $225 | $271 | $263 | $294 |
Portfolio turnover rateJ | 66% | 72% | 46% | 121% | 9% |
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 $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .87%.
C 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E 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.
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 Value Strategies Fund Class C
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.95 | $34.09 | $36.19 | $35.12 | $35.07 |
Income from Investment Operations | |||||
Net investment income (loss)A | .15B | .06 | .28C | .24 | .05 |
Net realized and unrealized gain (loss) | 3.04 | (2.16) | 5.43 | .97 | .07 |
Total from investment operations | 3.19 | (2.10) | 5.71 | 1.21 | .12 |
Distributions from net investment income | (.03) | (.27) | (.30) | (.13) | (.04)D |
Distributions from net realized gain | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (4.07) | (3.04) | (7.81)E | (.14) | (.07) |
Net asset value, end of period | $28.07 | $28.95 | $34.09 | $36.19 | $35.12 |
Total ReturnF,G | 15.41% | (6.89)% | 18.97% | 3.49% | .33% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.82% | 1.68% | 1.68% | 1.63% | 1.70% |
Expenses net of fee waivers, if any | 1.82% | 1.68% | 1.68% | 1.63% | 1.69% |
Expenses net of all reductions | 1.82% | 1.67% | 1.67% | 1.63% | 1.69% |
Net investment income (loss) | .58%B | .21% | .87%C | .72% | .13% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $14 | $34 | $46 | $44 | $49 |
Portfolio turnover rateJ | 66% | 72% | 46% | 121% | 9% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .30%.
C 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E 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.
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 Value Strategies Fund
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.04 | $44.81 | $45.17 | $43.72 | $43.56 |
Income from Investment Operations | |||||
Net investment income (loss)A | .60B | .52 | .81C | .76 | .51 |
Net realized and unrealized gain (loss) | 4.46 | (2.92) | 7.01 | 1.21 | .07 |
Total from investment operations | 5.06 | (2.40) | 7.82 | 1.97 | .58 |
Distributions from net investment income | (.38) | (.61) | (.66) | (.51) | (.39)D |
Distributions from net realized gain | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (4.42) | (3.37)E | (8.18) | (.52) | (.42) |
Net asset value, end of period | $39.68 | $39.04 | $44.81 | $45.17 | $43.72 |
Total ReturnF | 16.63% | (5.89)% | 20.18% | 4.64% | 1.35% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .74% | .63% | .62% | .56% | .67% |
Expenses net of fee waivers, if any | .74% | .63% | .62% | .56% | .67% |
Expenses net of all reductions | .74% | .62% | .62% | .55% | .66% |
Net investment income (loss) | 1.66%B | 1.26% | 1.93%C | 1.79% | 1.16% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $332 | $324 | $436 | $713 | $716 |
Portfolio turnover rateI | 66% | 72% | 46% | 121% | 9% |
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 1.37%.
C 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $3.37 per share is comprised of distributions from net investment income of $.608 and distributions from net realized gain of $2.765 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 Value Strategies Fund Class K
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.03 | $44.82 | $45.18 | $43.74 | $43.57 |
Income from Investment Operations | |||||
Net investment income (loss)A | .64B | .58 | .86C | .80 | .58 |
Net realized and unrealized gain (loss) | 4.46 | (2.93) | 7.02 | 1.22 | .07 |
Total from investment operations | 5.10 | (2.35) | 7.88 | 2.02 | .65 |
Distributions from net investment income | (.44) | (.67) | (.72) | (.57) | (.45)D |
Distributions from net realized gain | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (4.48) | (3.44) | (8.24) | (.58) | (.48) |
Net asset value, end of period | $39.65 | $39.03 | $44.82 | $45.18 | $43.74 |
Total ReturnE | 16.80% | (5.80)% | 20.36% | 4.76% | 1.51% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .61% | .50% | .50% | .44% | .51% |
Expenses net of fee waivers, if any | .61% | .50% | .50% | .44% | .51% |
Expenses net of all reductions | .61% | .49% | .49% | .43% | .51% |
Net investment income (loss) | 1.79%B | 1.39% | 2.05%C | 1.91% | 1.31% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $49 | $49 | $79 | $68 | $72 |
Portfolio turnover rateH | 66% | 72% | 46% | 121% | 9% |
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 1.50%.
C 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%.
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 Value Strategies Fund Class I
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $36.64 | $42.27 | $43.07 | $41.71 | $41.57 |
Income from Investment Operations | |||||
Net investment income (loss)A | .55B | .48 | .74C | .70 | .48 |
Net realized and unrealized gain (loss) | 4.12 | (2.75) | 6.64 | 1.15 | .08 |
Total from investment operations | 4.67 | (2.27) | 7.38 | 1.85 | .56 |
Distributions from net investment income | (.37) | (.59) | (.66) | (.48) | (.39)D |
Distributions from net realized gain | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (4.41) | (3.36) | (8.18) | (.49) | (.42) |
Net asset value, end of period | $36.90 | $36.64 | $42.27 | $43.07 | $41.71 |
Total ReturnE | 16.64% | (5.95)% | 20.13% | 4.57% | 1.36% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .78% | .67% | .67% | .61% | .68% |
Expenses net of fee waivers, if any | .78% | .67% | .67% | .61% | .68% |
Expenses net of all reductions | .77% | .66% | .66% | .61% | .68% |
Net investment income (loss) | 1.63%B | 1.22% | 1.88%C | 1.74% | 1.14% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $72 | $62 | $72 | $73 | $65 |
Portfolio turnover rateH | 66% | 72% | 46% | 121% | 9% |
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 1.34%.
C 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2019
(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 Advisor 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. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
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 ranged from less than .005% to .01%.
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. 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, 2019 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. 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, 2019, 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, 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 | $157,030 |
Gross unrealized depreciation | (56,100) |
Net unrealized appreciation (depreciation) | $100,930 |
Tax Cost | $825,984 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $10,078 |
Undistributed long-term capital gain | $33,920 |
Net unrealized appreciation (depreciation) on securities and other investments | $100,930 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $8,208 | $ 66,957 |
Long-term Capital Gains | 94,877 | 20,106 |
Total | $103,085 | $ 87,063 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $559,317 and $646,525, 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 Advisor 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 .51% 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% | $467 | $10 |
Class M | .25% | .25% | 1,111 | 36 |
Class C | .75% | .25% | 187 | 11 |
$1,765 | $57 |
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) | 1 |
$24 |
(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. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Class A | $376 | .20 |
Class M | 396 | .18 |
Class C | 44 | .24 |
Fidelity Value Strategies Fund | 566 | .18 |
Class K | 17 | .05 |
Class I | 137 | .21 |
$1,536 |
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. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .03%.
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Value Strategies Fund | $16 |
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 | $4,989 | 2.52% | $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.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $3. 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 less than five hundred dollars from securities loaned to NFS, as affiliated borrower.
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 $44 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 $6.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Class A | $22,450 | $17,622 |
Class M | 27,028 | 21,054 |
Class C | 4,746 | 4,061 |
Fidelity Value Strategies Fund | 36,063 | 32,529 |
Class K | 5,601 | 6,037 |
Class I | 7,197 | 5,760 |
Total | $103,085 | $87,063 |
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, 2019 | Year ended November 30, 2018 | Year ended November 30, 2019 | Year ended November 30, 2018 | |
Class A | ||||
Shares sold | 969 | 218 | $28,670 | $7,830 |
Reinvestment of distributions | 846 | 464 | 21,281 | 16,785 |
Shares redeemed | (916) | (892) | (27,439) | (32,019) |
Net increase (decrease) | 899 | (210) | $22,512 | $(7,404) |
Class M | ||||
Shares sold | 304 | 247 | $9,555 | $9,286 |
Reinvestment of distributions | 943 | 516 | 25,185 | 19,633 |
Shares redeemed | (1,000) | (1,018) | (31,573) | (38,196) |
Net increase (decrease) | 247 | (255) | $3,167 | $(9,277) |
Class C | ||||
Shares sold | 113 | 86 | $2,924 | $2,708 |
Reinvestment of distributions | 220 | 126 | 4,703 | 3,972 |
Shares redeemed | (1,033) | (378) | (26,038) | (11,722) |
Net increase (decrease) | (700) | (166) | $(18,411) | $(5,042) |
Fidelity Value Strategies Fund | ||||
Shares sold | 1,167 | 505 | $41,078 | $21,236 |
Reinvestment of distributions | 1,135 | 730 | 33,995 | 30,693 |
Shares redeemed | (2,241) | (2,665) | (79,975) | (111,070) |
Net increase (decrease) | 61 | (1,430) | $(4,902) | $(59,141) |
Class K | ||||
Shares sold | 536 | 306 | $20,032 | $12,927 |
Reinvestment of distributions | 187 | 144 | 5,601 | 6,037 |
Shares redeemed | (744) | (959) | (25,793) | (39,818) |
Net increase (decrease) | (21) | (509) | $(160) | $(20,854) |
Class I | ||||
Shares sold | 563 | 248 | $18,493 | $9,764 |
Reinvestment of distributions | 244 | 139 | 6,804 | 5,482 |
Shares redeemed | (538) | (420) | (17,949) | (16,418) |
Net increase (decrease) | 269 | (33) | $7,348 | $(1,172) |
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. (FIIOC) converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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, 2019, 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, 2019, 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, 2019, 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 13, 2020
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 302 funds. Mr. Wiley oversees 199 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 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Class A | 1.09% | |||
Actual | $1,000.00 | $1,142.70 | $5.85 | |
Hypothetical-C | $1,000.00 | $1,019.60 | $5.52 | |
Class M | 1.32% | |||
Actual | $1,000.00 | $1,141.20 | $7.09 | |
Hypothetical-C | $1,000.00 | $1,018.45 | $6.68 | |
Class C | 1.96% | |||
Actual | $1,000.00 | $1,138.30 | $10.51 | |
Hypothetical-C | $1,000.00 | $1,015.24 | $9.90 | |
Fidelity Value Strategies Fund | .82% | |||
Actual | $1,000.00 | $1,144.20 | $4.41 | |
Hypothetical-C | $1,000.00 | $1,020.96 | $4.15 | |
Class K | .70% | |||
Actual | $1,000.00 | $1,145.00 | $3.76 | |
Hypothetical-C | $1,000.00 | $1,021.56 | $3.55 | |
Class I | .85% | |||
Actual | $1,000.00 | $1,144.20 | $4.57 | |
Hypothetical-C | $1,000.00 | $1,020.81 | $4.31 |
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 | 12/30/19 | 12/27/19 | $0.455 | $1.350 |
Class M | 12/30/19 | 12/27/19 | $0.366 | $1.350 |
Class C | 12/30/19 | 12/27/19 | $0.150 | $1.350 |
Fidelity Value Strategies Fund | 12/30/19 | 12/27/19 | $0.531 | $1.350 |
Class K | 12/30/19 | 12/27/19 | $0.582 | $1.350 |
Class I | 12/30/19 | 12/27/19 | $0.526 | $1.350 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019, $34,025,920, 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 87%, 100%, 100%, 69%, 60% and 70% of the dividends distributed, 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 96%, 100%, 100%, 76%, 67%, and 78% of the dividends distributed, respectively during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
Class A, Class M, Class C, Fidelity Value Strategies Fund, Class K, and Class I designates 5%, 0%, 0%, 7%, 6%, and 7% of the dividends distributed, respectively during the fiscal year as a section 199A dividend.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Value Strategies Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.SO-ANN-0120
1.539180.122
Fidelity Advisor® Equity Income Fund
Annual Report
November 30, 2019
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fipro_logo.jpg)
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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 5.31% | 5.50% | 9.36% |
Class M (incl. 3.50% sales charge) | 7.56% | 5.75% | 9.38% |
Class C (incl. contingent deferred sales charge) | 9.90% | 5.94% | 9.18% |
Class I | 12.00% | 7.03% | 10.31% |
Class Z | 12.18% | 7.19% | 10.41% |
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 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, 2009, 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/0001379491-20-000191/img552791302_740.jpg)
Period Ending Values | ||
$24,474 | Fidelity Advisor® Equity Income Fund - Class A | |
$30,095 | Russell 3000® Value Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Portfolio Manager John Sheehy: For the year, the fund’s share classes (excluding sales charges, if applicable) returned roughly 11% to 12%, topping the 10.81% advance of the benchmark Russell 3000® Value Index. Versus the benchmark, stock selection in the energy, financials and health care sectors particularly helped the fund’s performance. In energy, we positioned the fund mostly in defensive names, focusing on pipeline companies that distribute oil and gas. The fund’s top relative contributor was Apollo Global Management (+58%), a private equity asset manager that benefited from strong inflows of capital this period. We exited this position. An out-of-benchmark stake in AbbVie (+33%), established this period, also bolstered the fund’s performance, as did an overweighting in industrial conglomerate United Technologies (+24%). Conversely, positioning in information technology and utilities detracted. Within technology, picks in software & services and an underweighting in the strong semiconductors & semiconductor equipment segment weighed on our relative result. At the stock level, the fund’s largest relative detractor was our overweighted position in Tapestry (-28%). The company provides women’s accessories and lifestyle products. DXC Technology (-40%) also disappointed us. The company offers information technology services to a global clientele. We sold DXC by period end.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, 2019
% of fund's net assets | |
Chevron Corp. | 3.4 |
Wells Fargo & Co. | 3.4 |
Comcast Corp. Class A | 2.9 |
UnitedHealth Group, Inc. | 2.7 |
General Dynamics Corp. | 2.6 |
United Technologies Corp. | 2.6 |
Bristol-Myers Squibb Co. | 2.4 |
AbbVie, Inc. | 2.3 |
Johnson & Johnson | 2.2 |
Verizon Communications, Inc. | 2.2 |
26.7 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Financials | 20.0 |
Health Care | 18.5 |
Energy | 10.2 |
Industrials | 10.0 |
Communication Services | 9.7 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019* | ||
Stocks | 97.6% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.2% |
* Foreign investments - 14.6%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 97.6% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 9.7% | |||
Diversified Telecommunication Services - 2.2% | |||
Verizon Communications, Inc. | 587,190 | $35,372 | |
Entertainment - 1.8% | |||
Cinemark Holdings, Inc. | 379,300 | 12,847 | |
The Walt Disney Co. | 111,000 | 16,825 | |
29,672 | |||
Media - 5.7% | |||
Comcast Corp. Class A | 1,059,300 | 46,768 | |
Informa PLC | 834,272 | 8,539 | |
Interpublic Group of Companies, Inc. | 802,100 | 17,967 | |
Omnicom Group, Inc. | 257,700 | 20,482 | |
93,756 | |||
TOTAL COMMUNICATION SERVICES | 158,800 | ||
CONSUMER DISCRETIONARY - 3.4% | |||
Hotels, Restaurants & Leisure - 0.7% | |||
Wyndham Destinations, Inc. | 249,800 | 12,115 | |
Household Durables - 0.6% | |||
Whirlpool Corp. | 62,500 | 8,944 | |
Internet & Direct Marketing Retail - 0.7% | |||
eBay, Inc. | 334,500 | 11,881 | |
Leisure Products - 0.1% | |||
New Academy Holding Co. LLC unit (a)(b)(c)(d) | 52,800 | 1,614 | |
Textiles, Apparel & Luxury Goods - 1.3% | |||
Hanesbrands, Inc. | 263,900 | 3,977 | |
Tapestry, Inc. | 615,300 | 16,545 | |
20,522 | |||
TOTAL CONSUMER DISCRETIONARY | 55,076 | ||
CONSUMER STAPLES - 8.8% | |||
Beverages - 0.6% | |||
Molson Coors Brewing Co. Class B | 184,905 | 9,334 | |
Food & Staples Retailing - 1.2% | |||
Kroger Co. | 739,400 | 20,215 | |
Food Products - 1.7% | |||
General Mills, Inc. | 222,940 | 11,887 | |
The J.M. Smucker Co. | 158,800 | 16,688 | |
28,575 | |||
Household Products - 0.7% | |||
Reckitt Benckiser Group PLC | 149,500 | 11,736 | |
Personal Products - 1.1% | |||
Unilever NV (NY Reg.) | 297,600 | 17,722 | |
Tobacco - 3.5% | |||
Altria Group, Inc. | 393,400 | 19,552 | |
British American Tobacco PLC sponsored ADR | 760,001 | 30,104 | |
Imperial Brands PLC | 319,598 | 7,040 | |
56,696 | |||
TOTAL CONSUMER STAPLES | 144,278 | ||
ENERGY - 10.0% | |||
Oil, Gas & Consumable Fuels - 10.0% | |||
BP PLC sponsored ADR | 584,400 | 21,868 | |
Chevron Corp. | 481,569 | 56,411 | |
ConocoPhillips Co. | 288,800 | 17,311 | |
Enterprise Products Partners LP | 544,900 | 14,342 | |
Exxon Mobil Corp. | 224,200 | 15,275 | |
Noble Midstream Partners LP | 117,400 | 2,448 | |
Rattler Midstream LP | 160,400 | 2,552 | |
The Williams Companies, Inc. | 1,178,950 | 26,786 | |
Valero Energy Corp. | 44,700 | 4,268 | |
Viper Energy Partners LP | 146,700 | 3,480 | |
164,741 | |||
FINANCIALS - 20.0% | |||
Banks - 10.4% | |||
Bank of America Corp. | 1,050,800 | 35,013 | |
Bank OZK | 389,500 | 11,560 | |
BB&T Corp. | 275,600 | 15,081 | |
Cullen/Frost Bankers, Inc. | 73,200 | 6,849 | |
East West Bancorp, Inc. | 128,400 | 5,883 | |
First Hawaiian, Inc. | 255,600 | 7,295 | |
Huntington Bancshares, Inc. | 1,255,800 | 18,699 | |
PNC Financial Services Group, Inc. | 93,300 | 14,294 | |
Wells Fargo & Co. | 1,030,250 | 56,107 | |
170,781 | |||
Capital Markets - 4.0% | |||
Goldman Sachs Group, Inc. | 61,500 | 13,613 | |
Lazard Ltd. Class A | 345,700 | 13,358 | |
Northern Trust Corp. | 138,600 | 14,863 | |
Raymond James Financial, Inc. | 95,200 | 8,551 | |
State Street Corp. | 193,499 | 14,532 | |
64,917 | |||
Consumer Finance - 1.9% | |||
Capital One Financial Corp. | 180,100 | 18,012 | |
Synchrony Financial | 357,100 | 13,359 | |
31,371 | |||
Insurance - 2.7% | |||
AXA SA | 392,700 | 10,684 | |
Chubb Ltd. | 107,584 | 16,297 | |
Old Republic International Corp. | 215,000 | 4,850 | |
The Travelers Companies, Inc. | 92,100 | 12,592 | |
44,423 | |||
Mortgage Real Estate Investment Trusts - 1.0% | |||
AGNC Investment Corp. | 397,200 | 6,880 | |
Starwood Property Trust, Inc. | 384,100 | 9,410 | |
16,290 | |||
TOTAL FINANCIALS | 327,782 | ||
HEALTH CARE - 18.5% | |||
Biotechnology - 3.7% | |||
AbbVie, Inc. | 425,800 | 37,355 | |
Amgen, Inc. | 101,149 | 23,742 | |
61,097 | |||
Health Care Equipment & Supplies - 0.5% | |||
Becton, Dickinson & Co. | 32,500 | 8,401 | |
Health Care Providers & Services - 7.2% | |||
AmerisourceBergen Corp. | 96,500 | 8,483 | |
Anthem, Inc. | 42,000 | 12,124 | |
CVS Health Corp. | 282,436 | 21,259 | |
Humana, Inc. | 30,000 | 10,237 | |
McKesson Corp. | 94,100 | 13,611 | |
Quest Diagnostics, Inc. | 65,800 | 7,011 | |
UnitedHealth Group, Inc. | 158,200 | 44,275 | |
117,000 | |||
Pharmaceuticals - 7.1% | |||
Bristol-Myers Squibb Co. | 700,900 | 39,909 | |
Johnson & Johnson | 263,718 | 36,259 | |
Roche Holding AG (participation certificate) | 68,390 | 21,084 | |
Sanofi SA sponsored ADR | 404,800 | 18,896 | |
116,148 | |||
TOTAL HEALTH CARE | 302,646 | ||
INDUSTRIALS - 10.0% | |||
Aerospace & Defense - 5.2% | |||
General Dynamics Corp. | 239,200 | 43,472 | |
United Technologies Corp. | 284,707 | 42,233 | |
85,705 | |||
Electrical Equipment - 0.7% | |||
Regal Beloit Corp. | 135,200 | 11,050 | |
Industrial Conglomerates - 1.4% | |||
General Electric Co. | 1,966,054 | 22,157 | |
Machinery - 1.5% | |||
Allison Transmission Holdings, Inc. | 279,200 | 13,513 | |
Stanley Black & Decker, Inc. | 75,200 | 11,862 | |
25,375 | |||
Professional Services - 0.6% | |||
Intertrust NV (e) | 564,300 | 10,607 | |
Trading Companies & Distributors - 0.6% | |||
HD Supply Holdings, Inc. (a) | 99,100 | 3,946 | |
MSC Industrial Direct Co., Inc. Class A | 77,800 | 5,711 | |
9,657 | |||
TOTAL INDUSTRIALS | 164,551 | ||
INFORMATION TECHNOLOGY - 5.6% | |||
Communications Equipment - 0.6% | |||
Cisco Systems, Inc. | 205,453 | 9,309 | |
IT Services - 4.1% | |||
Amdocs Ltd. | 379,300 | 26,285 | |
Capgemini SA | 217,800 | 25,761 | |
Cognizant Technology Solutions Corp. Class A | 137,000 | 8,783 | |
Sabre Corp. | 292,100 | 6,552 | |
67,381 | |||
Semiconductors & Semiconductor Equipment - 0.2% | |||
Qualcomm, Inc. | 48,489 | 4,051 | |
Software - 0.7% | |||
Citrix Systems, Inc. | 38,500 | 4,343 | |
Microsoft Corp. | 42,938 | 6,500 | |
10,843 | |||
TOTAL INFORMATION TECHNOLOGY | 91,584 | ||
MATERIALS - 2.3% | |||
Chemicals - 1.1% | |||
DowDuPont, Inc. | 185,966 | 12,052 | |
Westlake Chemical Corp. | 90,400 | 6,209 | |
18,261 | |||
Containers & Packaging - 1.2% | |||
Graphic Packaging Holding Co. | 524,800 | 8,538 | |
WestRock Co. | 265,400 | 10,704 | |
19,242 | |||
TOTAL MATERIALS | 37,503 | ||
REAL ESTATE - 3.3% | |||
Equity Real Estate Investment Trusts (REITs) - 3.3% | |||
Brandywine Realty Trust (SBI) | 749,600 | 11,566 | |
Corporate Office Properties Trust (SBI) | 207,700 | 6,061 | |
Highwoods Properties, Inc. (SBI) | 129,800 | 6,302 | |
Potlatch Corp. | 207,200 | 8,999 | |
Ryman Hospitality Properties, Inc. | 95,600 | 8,530 | |
SL Green Realty Corp. | 147,300 | 12,569 | |
54,027 | |||
UTILITIES - 6.0% | |||
Electric Utilities - 4.0% | |||
Duke Energy Corp. | 236,700 | 20,870 | |
Edison International | 85,900 | 5,936 | |
Exelon Corp. | 533,900 | 23,705 | |
PPL Corp. | 444,700 | 15,133 | |
65,644 | |||
Independent Power and Renewable Electricity Producers - 0.5% | |||
Clearway Energy, Inc. Class C | 433,800 | 8,602 | |
Multi-Utilities - 1.5% | |||
CenterPoint Energy, Inc. | 470,600 | 11,558 | |
Dominion Energy, Inc. | 152,500 | 12,674 | |
24,232 | |||
TOTAL UTILITIES | 98,478 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,429,976) | 1,599,466 | ||
Other - 0.2% | |||
Energy - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) (c)(d)(f) | |||
(Cost $5,865) | 5,865,354 | 2,740 | |
Money Market Funds - 2.0% | |||
Fidelity Cash Central Fund 1.61% (g) | |||
(Cost $33,595) | 33,588,257 | 33,595 | |
TOTAL INVESTMENT IN SECURITIES - 99.8% | |||
(Cost $1,469,436) | 1,635,801 | ||
NET OTHER ASSETS (LIABILITIES) - 0.2% | 3,801 | ||
NET ASSETS - 100% | $1,639,602 |
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 $4,354,000 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 $10,607,000 or 0.6% of net assets.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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 | $433 |
Fidelity Securities Lending Cash Central Fund | 8 |
Total | $441 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $158,800 | $158,800 | $-- | $-- |
Consumer Discretionary | 55,076 | 53,462 | -- | 1,614 |
Consumer Staples | 144,278 | 132,542 | 11,736 | -- |
Energy | 164,741 | 164,741 | -- | -- |
Financials | 327,782 | 317,098 | 10,684 | -- |
Health Care | 302,646 | 281,562 | 21,084 | -- |
Industrials | 164,551 | 164,551 | -- | -- |
Information Technology | 91,584 | 91,584 | -- | -- |
Materials | 37,503 | 37,503 | -- | -- |
Real Estate | 54,027 | 54,027 | -- | -- |
Utilities | 98,478 | 98,478 | -- | -- |
Other | 2,740 | -- | -- | 2,740 |
Money Market Funds | 33,595 | 33,595 | -- | -- |
Total Investments in Securities: | $1,635,801 | $1,587,943 | $43,504 | $4,354 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 85.4% |
United Kingdom | 4.8% |
France | 3.4% |
Switzerland | 2.3% |
Netherlands | 1.7% |
Bailiwick of Guernsey | 1.6% |
Others (Individually Less Than 1%) | 0.8% |
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, 2019 | |
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $1,435,841) | $1,602,206 | |
Fidelity Central Funds (cost $33,595) | 33,595 | |
Total Investment in Securities (cost $1,469,436) | $1,635,801 | |
Restricted cash | 277 | |
Receivable for investments sold | 127 | |
Receivable for fund shares sold | 172 | |
Dividends receivable | 5,405 | |
Distributions receivable from Fidelity Central Funds | 32 | |
Prepaid expenses | 3 | |
Other receivables | 74 | |
Total assets | 1,641,891 | |
Liabilities | ||
Payable for fund shares redeemed | $817 | |
Accrued management fee | 591 | |
Transfer agent fee payable | 242 | |
Distribution and service plan fees payable | 473 | |
Other affiliated payables | 42 | |
Other payables and accrued expenses | 124 | |
Total liabilities | 2,289 | |
Net Assets | $1,639,602 | |
Net Assets consist of: | ||
Paid in capital | $1,380,524 | |
Total accumulated earnings (loss) | 259,078 | |
Net Assets | $1,639,602 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($659,654 ÷ 21,831.1 shares)(a) | $30.22 | |
Maximum offering price per share (100/94.25 of $30.22) | $32.06 | |
Class M: | ||
Net Asset Value and redemption price per share ($642,280 ÷ 20,706.6 shares)(a) | $31.02 | |
Maximum offering price per share (100/96.50 of $31.02) | $32.15 | |
Class C: | ||
Net Asset Value and offering price per share ($83,540 ÷ 2,737.2 shares)(a) | $30.52 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($227,027 ÷ 7,128.4 shares) | $31.85 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($27,101 ÷ 851.7 shares) | $31.82 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2019 | |
Investment Income | ||
Dividends | $52,033 | |
Interest | 101 | |
Income from Fidelity Central Funds (including $8 from security lending) | 441 | |
Total income | 52,575 | |
Expenses | ||
Management fee | $6,974 | |
Transfer agent fees | 2,979 | |
Distribution and service plan fees | 5,735 | |
Accounting and security lending fees | 496 | |
Custodian fees and expenses | 40 | |
Independent trustees' fees and expenses | 9 | |
Registration fees | 88 | |
Audit | 69 | |
Legal | 8 | |
Miscellaneous | 12 | |
Total expenses before reductions | 16,410 | |
Expense reductions | (55) | |
Total expenses after reductions | 16,355 | |
Net investment income (loss) | 36,220 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 99,026 | |
Fidelity Central Funds | 2 | |
Foreign currency transactions | 16 | |
Total net realized gain (loss) | 99,044 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 37,354 | |
Assets and liabilities in foreign currencies | 2 | |
Total change in net unrealized appreciation (depreciation) | 37,356 | |
Net gain (loss) | 136,400 | |
Net increase (decrease) in net assets resulting from operations | $172,620 |
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, 2019 | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $36,220 | $36,394 |
Net realized gain (loss) | 99,044 | 198,641 |
Change in net unrealized appreciation (depreciation) | 37,356 | (220,264) |
Net increase (decrease) in net assets resulting from operations | 172,620 | 14,771 |
Distributions to shareholders | (212,703) | (201,687) |
Share transactions - net increase (decrease) | (17,423) | (62,649) |
Total increase (decrease) in net assets | (57,506) | (249,565) |
Net Assets | ||
Beginning of period | 1,697,108 | 1,946,673 |
End of period | $1,639,602 | $1,697,108 |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.53 | $34.96 | $32.05 | $31.10 | $34.44 |
Income from Investment Operations | |||||
Net investment income (loss)A | .67 | .68 | .62 | .59 | .92 |
Net realized and unrealized gain (loss) | 2.08 | (.37)B | 3.32 | 3.13 | (2.15) |
Total from investment operations | 2.75 | .31 | 3.94 | 3.72 | (1.23) |
Distributions from net investment income | (.65) | (.78) | (.58)C | (.66) | (.98) |
Distributions from net realized gain | (3.41) | (2.95) | (.46)C | (2.11) | (1.14) |
Total distributions | (4.06) | (3.74)D | (1.03)E | (2.77) | (2.11)F |
Net asset value, end of period | $30.22 | $31.53 | $34.96 | $32.05 | $31.10 |
Total ReturnG,H | 11.73% | .77%B | 12.55% | 13.52% | (3.61)% |
Ratios to Average Net AssetsI,J | |||||
Expenses before reductions | .93% | .93% | .94% | .95% | .95% |
Expenses net of fee waivers, if any | .92% | .93% | .94% | .95% | .95% |
Expenses net of all reductions | .92% | .91% | .93% | .95% | .94% |
Net investment income (loss) | 2.37% | 2.11% | 1.88% | 2.01% | 2.85% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $660 | $609 | $686 | $703 | $688 |
Portfolio turnover rateK | 48% | 59% | 48% | 36% | 53% |
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 .64%
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $3.74 per share is comprised of distributions from net investment income of $.783 and distributions from net realized gain of $2.952 per share.
E 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.
F 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.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K 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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.24 | $35.65 | $32.66 | $31.64 | $34.99 |
Income from Investment Operations | |||||
Net investment income (loss)A | .62 | .62 | .56 | .53 | .86 |
Net realized and unrealized gain (loss) | 2.15 | (.38)B | 3.38 | 3.19 | (2.18) |
Total from investment operations | 2.77 | .24 | 3.94 | 3.72 | (1.32) |
Distributions from net investment income | (.58) | (.70) | (.50)C | (.59) | (.89) |
Distributions from net realized gain | (3.41) | (2.95) | (.46)C | (2.11) | (1.14) |
Total distributions | (3.99) | (3.65) | (.95)D | (2.70) | (2.03) |
Net asset value, end of period | $31.02 | $32.24 | $35.65 | $32.66 | $31.64 |
Total ReturnE,F | 11.46% | .56%B | 12.29% | 13.24% | (3.83)% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.16% | 1.16% | 1.17% | 1.18% | 1.18% |
Expenses net of fee waivers, if any | 1.16% | 1.16% | 1.17% | 1.18% | 1.18% |
Expenses net of all reductions | 1.16% | 1.15% | 1.17% | 1.18% | 1.17% |
Net investment income (loss) | 2.14% | 1.88% | 1.64% | 1.78% | 2.62% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $642 | $662 | $775 | $787 | $813 |
Portfolio turnover rateI | 48% | 59% | 48% | 36% | 53% |
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 .43%
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D 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.
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 Income Fund Class C
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.73 | $35.15 | $32.21 | $31.24 | $34.57 |
Income from Investment Operations | |||||
Net investment income (loss)A | .45 | .44 | .37 | .37 | .68 |
Net realized and unrealized gain (loss) | 2.12 | (.39)B | 3.35 | 3.14 | (2.15) |
Total from investment operations | 2.57 | .05 | 3.72 | 3.51 | (1.47) |
Distributions from net investment income | (.37) | (.52) | (.32)C | (.43) | (.72) |
Distributions from net realized gain | (3.41) | (2.95) | (.46)C | (2.11) | (1.14) |
Total distributions | (3.78) | (3.47) | (.78) | (2.54) | (1.86) |
Net asset value, end of period | $30.52 | $31.73 | $35.15 | $32.21 | $31.24 |
Total ReturnD,E | 10.86% | (.01)%B | 11.72% | 12.63% | (4.34)% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.72% | 1.70% | 1.70% | 1.72% | 1.72% |
Expenses net of fee waivers, if any | 1.71% | 1.69% | 1.70% | 1.72% | 1.71% |
Expenses net of all reductions | 1.71% | 1.68% | 1.70% | 1.71% | 1.71% |
Net investment income (loss) | 1.58% | 1.34% | 1.11% | 1.24% | 2.09% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $84 | $160 | $195 | $198 | $187 |
Portfolio turnover rateH | 48% | 59% | 48% | 36% | 53% |
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 (.14)%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Income Fund Class I
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.99 | $36.40 | $33.31 | $32.21 | $35.59 |
Income from Investment Operations | |||||
Net investment income (loss)A | .78 | .80 | .74 | .69 | 1.04 |
Net realized and unrealized gain (loss) | 2.21 | (.39)B | 3.46 | 3.26 | (2.23) |
Total from investment operations | 2.99 | .41 | 4.20 | 3.95 | (1.19) |
Distributions from net investment income | (.72) | (.87) | (.65)C | (.74) | (1.06) |
Distributions from net realized gain | (3.41) | (2.95) | (.46)C | (2.11) | (1.14) |
Total distributions | (4.13) | (3.82) | (1.11) | (2.85) | (2.19)D |
Net asset value, end of period | $31.85 | $32.99 | $36.40 | $33.31 | $32.21 |
Total ReturnE | 12.00% | 1.05%B | 12.86% | 13.82% | (3.37)% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .67% | .67% | .68% | .69% | .69% |
Expenses net of fee waivers, if any | .67% | .67% | .68% | .69% | .69% |
Expenses net of all reductions | .67% | .66% | .68% | .68% | .69% |
Net investment income (loss) | 2.63% | 2.37% | 2.14% | 2.27% | 3.11% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $227 | $243 | $269 | $439 | $428 |
Portfolio turnover rateH | 48% | 59% | 48% | 36% | 53% |
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 $.05 per share. Excluding these litigation proceeds, the total return would have been .92%
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $2.19 per share is comprised of distributions from net investment income of $1.058 and distributions from net realized gain of $1.136 per share.
E Total 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 Income Fund Class Z
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.96 | $36.38 | $33.30 | $32.21 | $35.59 |
Income from Investment Operations | |||||
Net investment income (loss)A | .82 | .85 | .79 | .74 | 1.08 |
Net realized and unrealized gain (loss) | 2.21 | (.40)B | 3.46 | 3.24 | (2.21) |
Total from investment operations | 3.03 | .45 | 4.25 | 3.98 | (1.13) |
Distributions from net investment income | (.77) | (.91) | (.71)C | (.79) | (1.11) |
Distributions from net realized gain | (3.41) | (2.95) | (.46)C | (2.11) | (1.14) |
Total distributions | (4.17)D | (3.87)E | (1.17) | (2.89)F | (2.25) |
Net asset value, end of period | $31.82 | $32.96 | $36.38 | $33.30 | $32.21 |
Total ReturnG | 12.18% | 1.16%B | 13.02% | 13.96% | (3.20)% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .53% | .53% | .54% | .54% | .54% |
Expenses net of fee waivers, if any | .53% | .53% | .53% | .54% | .54% |
Expenses net of all reductions | .52% | .52% | .53% | .53% | .53% |
Net investment income (loss) | 2.77% | 2.51% | 2.28% | 2.42% | 3.26% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $27 | $22 | $23 | $15 | $14 |
Portfolio turnover rateJ | 48% | 59% | 48% | 36% | 53% |
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 $.05 per share. Excluding these litigation proceeds, the total return would have been 1.03%
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $4.17 per share is comprised of distributions from net investment income of $.767 and distributions from net realized gain of $3.407 per share.
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 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.
Notes to Financial Statements
For the period ended November 30, 2019
(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. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
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 ranged from less than .005% to .01%.
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. 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, 2019 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.
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 $61 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, 2019, 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, 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 | $242,334 |
Gross unrealized depreciation | (78,554) |
Net unrealized appreciation (depreciation) | $163,780 |
Tax Cost | $1,472,021 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $9,513 |
Undistributed long-term capital gain | $87,720 |
Net unrealized appreciation (depreciation) on securities and other investments | $161,905 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $35,189 | $ 51,747 |
Long-term Capital Gains | 177,514 | 149,940 |
Total | $212,703 | $ 201,687 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $3,017 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $760,702 and $975,391, 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% | $1,547 | $28 |
Class M | .25% | .25% | 3,140 | 35 |
Class C | .75% | .25% | 1,048 | 74 |
$5,735 | $137 |
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 | $71 |
Class M | 18 |
Class C(a) | 6 |
$95 |
(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 | $1,198 | .19 |
Class M | 1,126 | .18 |
Class C | 233 | .22 |
Class I | 410 | .19 |
Class Z | 12 | .05 |
$2,979 |
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. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .03%.
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Equity Income Fund | $21 |
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 $4 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. Total fees paid by the Fund to NFS, as lending agent, amounted to $1. 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 an amount of less than five hundred dollars from securities loaned to NFS, as affiliated borrower.
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 $43 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 $12.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Class A | $79,342 | $73,142 |
Class M | 81,721 | 78,843 |
Class C | 18,262 | 19,047 |
Class I | 30,468 | 27,992 |
Class Z | 2,910 | 2,663 |
Total | $212,703 | $201,687 |
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, 2019 | Year ended November 30, 2018 | Year ended November 30, 2019 | Year ended November 30, 2018 | |
Class A | ||||
Shares sold | 3,496 | 1,364 | $96,604 | $44,044 |
Reinvestment of distributions | 3,004 | 2,152 | 74,808 | 69,531 |
Shares redeemed | (3,985) | (3,817) | (110,872) | (123,111) |
Net increase (decrease) | 2,515 | (301) | $60,540 | $(9,536) |
Class M | ||||
Shares sold | 1,514 | 1,528 | $43,215 | $50,532 |
Reinvestment of distributions | 3,147 | 2,346 | 80,190 | 77,501 |
Shares redeemed | (4,498) | (5,063) | (128,411) | (166,867) |
Net increase (decrease) | 163 | (1,189) | $(5,006) | $(38,834) |
Class C | ||||
Shares sold | 409 | 345 | $11,241 | $11,204 |
Reinvestment of distributions | 709 | 547 | 17,599 | 17,821 |
Shares redeemed | (3,423) | (1,391) | (95,487) | (45,224) |
Net increase (decrease) | (2,305) | (499) | $(66,647) | $(16,199) |
Class I | ||||
Shares sold | 1,418 | 1,108 | $40,915 | $37,371 |
Reinvestment of distributions | 1,008 | 755 | 26,374 | 25,471 |
Shares redeemed | (2,676) | (1,870) | (78,064) | (63,128) |
Net increase (decrease) | (250) | (7) | $(10,775) | $(286) |
Class Z | ||||
Shares sold | 451 | 292 | $12,949 | $10,001 |
Reinvestment of distributions | 100 | 75 | 2,630 | 2,537 |
Shares redeemed | (376) | (309) | (11,114) | (10,332) |
Net increase (decrease) | 175 | 58 | $4,465 | $2,206 |
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. (FIIOC) converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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, 2019, 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, 2019, 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, 2019, by correspondence with the custodians and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 13, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Class A | .92% | |||
Actual | $1,000.00 | $1,138.10 | $4.93 | |
Hypothetical-C | $1,000.00 | $1,020.46 | $4.66 | |
Class M | 1.16% | |||
Actual | $1,000.00 | $1,136.40 | $6.21 | |
Hypothetical-C | $1,000.00 | $1,019.25 | $5.87 | |
Class C | 1.70% | |||
Actual | $1,000.00 | $1,133.30 | $9.09 | |
Hypothetical-C | $1,000.00 | $1,016.55 | $8.59 | |
Class I | .66% | |||
Actual | $1,000.00 | $1,139.50 | $3.54 | |
Hypothetical-C | $1,000.00 | $1,021.76 | $3.35 | |
Class Z | .52% | |||
Actual | $1,000.00 | $1,140.10 | $2.79 | |
Hypothetical-C | $1,000.00 | $1,022.46 | $2.64 |
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 | |
Insert Fund Name | ||||
Class A | 12/30/19 | 12/27/19 | $0.264 | $1.668 |
Class M | 12/30/19 | 12/27/19 | $0.243 | $1.668 |
Class C | 12/30/19 | 12/27/19 | $0.200 | $1.668 |
Class I | 12/30/19 | 12/27/19 | $0.283 | $1.668 |
Class Z | 12/30/19 | 12/27/19 | $0.297 | $1.668 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019, $94,726,596, 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 76%, 100%, 100%, and 100%; Class M designates 82%, 100%, 100%, and 100%; Class C designates 100%, 100%, 100%, and 100%; Class I designates 70%, 100%, 100%, and 100%; and Class Z designates 67%, 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, 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 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Equity Income Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.EPI-ANN-0120
1.539449.123
Fidelity Advisor® Equity Growth Fund
Annual Report
November 30, 2019
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See the inside front cover for important information about access to your fund’s shareholder reports.
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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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Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's 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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 11.54% | 11.48% | 14.43% |
Class M (incl. 3.50% sales charge) | 14.05% | 11.76% | 14.47% |
Class C (incl. contingent deferred sales charge) | 16.53% | 11.95% | 14.26% |
Class I | 18.68% | 13.11% | 15.46% |
Class Z | 18.87% | 13.27% | 15.56% |
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, 2009, 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/0001379491-20-000191/img552792968_740.jpg)
Period Ending Values | ||
$38,494 | Fidelity Advisor® Equity Growth Fund - Class A | |
$40,850 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Co-Portfolio Managers Jason Weiner and Asher Anolic: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 18% to 19%, lagging the 20.28% advance of the benchmark Russell 3000® Growth Index. Versus the benchmark, stock selection in the financials, materials and communication services sectors detracted most, followed by an overweighting in energy. Underweighting consumer electronics giant Apple was the largest individual relative detractor, as the stock gained 52% on greater-than-expected growth for subscription services, such as Apple Music and iCloud, from its installed base (consumers who already own iPhones). Untimely ownership of chemicals manufacturer Chemours (-43%) and online education provider Grand Canyon Education (-29%) also detracted before we decided to exit the positions. Conversely, stock picking in energy and industrials contributed to performance versus the benchmark, as did an overweighting in the software & services industry within information technology. Timely ownership of AbbVie, a leader in biologics, focused on autoimmune diseases and oncology, was the largest individual contributor, gaining 35% for the fund after we established a position this period. Lastly, it helped to hold a non-benchmark stake in Canadian e-commerce platform Shopify (+121%).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 February 4, 2019, Jason Weiner assumed co-management responsibilities after serving as lead manager since July 2017.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2019
% of fund's net assets | |
Microsoft Corp. | 9.2 |
Alphabet, Inc. Class A | 7.3 |
Apple, Inc. | 5.4 |
Visa, Inc. Class A | 4.0 |
Facebook, Inc. Class A | 4.0 |
Amazon.com, Inc. | 3.7 |
Adobe, Inc. | 3.6 |
Qualcomm, Inc. | 2.6 |
American Tower Corp. | 2.4 |
NVIDIA Corp. | 2.2 |
44.4 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Information Technology | 40.0 |
Communication Services | 13.8 |
Health Care | 13.4 |
Consumer Discretionary | 13.0 |
Industrials | 7.0 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019 * | ||
Stocks | 99.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.0% |
* Foreign investments - 12.7%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 13.8% | |||
Entertainment - 1.7% | |||
Activision Blizzard, Inc. | 673,966 | $36,954 | |
Electronic Arts, Inc. (a) | 177,876 | 17,967 | |
54,921 | |||
Interactive Media & Services - 12.1% | |||
Alphabet, Inc. Class A (a) | 182,448 | 237,929 | |
Facebook, Inc. Class A (a) | 638,231 | 128,693 | |
Tencent Holdings Ltd. | 609,683 | 25,726 | |
392,348 | |||
TOTAL COMMUNICATION SERVICES | 447,269 | ||
CONSUMER DISCRETIONARY - 13.0% | |||
Automobiles - 0.8% | |||
Ferrari NV | 146,375 | 24,631 | |
Diversified Consumer Services - 0.5% | |||
Laureate Education, Inc. Class A (a) | 903,544 | 15,676 | |
Hotels, Restaurants & Leisure - 0.3% | |||
Chipotle Mexican Grill, Inc. (a) | 10,689 | 8,700 | |
Household Durables - 0.9% | |||
Blu Homes, Inc. (a)(b)(c) | 12,123,162 | 21 | |
D.R. Horton, Inc. | 238,097 | 13,179 | |
NVR, Inc. (a) | 3,961 | 15,020 | |
28,220 | |||
Internet & Direct Marketing Retail - 6.9% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 135,366 | 27,073 | |
Amazon.com, Inc. (a) | 66,793 | 120,281 | |
Fiverr International Ltd. (d) | 21,282 | 490 | |
Pinduoduo, Inc. ADR (a) | 304,356 | 10,942 | |
The Booking Holdings, Inc. (a) | 34,451 | 65,596 | |
224,382 | |||
Specialty Retail - 2.2% | |||
Five Below, Inc. (a) | 47,908 | 5,927 | |
National Vision Holdings, Inc. (a) | 263,153 | 7,947 | |
Ross Stores, Inc. | 254,019 | 29,504 | |
Ulta Beauty, Inc. (a) | 113,892 | 26,635 | |
70,013 | |||
Textiles, Apparel & Luxury Goods - 1.4% | |||
Anta Sports Products Ltd. | 598,000 | 5,622 | |
Canada Goose Holdings, Inc. (a)(d) | 150,996 | 5,762 | |
LVMH Moet Hennessy Louis Vuitton SE | 79,079 | 35,404 | |
46,788 | |||
TOTAL CONSUMER DISCRETIONARY | 418,410 | ||
CONSUMER STAPLES - 3.7% | |||
Beverages - 1.0% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 389 | 72 | |
Fever-Tree Drinks PLC | 574 | 16 | |
Kweichow Moutai Co. Ltd. (A Shares) | 89,713 | 14,403 | |
Pernod Ricard SA | 55,099 | 10,120 | |
Pernod Ricard SA ADR | 229,724 | 8,449 | |
33,060 | |||
Food Products - 0.2% | |||
The Simply Good Foods Co. (a) | 247,508 | 6,839 | |
Household Products - 1.7% | |||
Energizer Holdings, Inc. (d) | 517,414 | 25,814 | |
Procter & Gamble Co. | 243,138 | 29,677 | |
55,491 | |||
Personal Products - 0.8% | |||
Estee Lauder Companies, Inc. Class A | 129,244 | 25,263 | |
TOTAL CONSUMER STAPLES | 120,653 | ||
ENERGY - 1.7% | |||
Oil, Gas & Consumable Fuels - 1.7% | |||
Cheniere Energy, Inc. (a) | 465,225 | 28,165 | |
Reliance Industries Ltd. | 1,193,261 | 25,797 | |
53,962 | |||
FINANCIALS - 2.1% | |||
Banks - 0.4% | |||
HDFC Bank Ltd. | 136,892 | 2,426 | |
HDFC Bank Ltd. sponsored ADR | 145,181 | 8,965 | |
Metro Bank PLC (a)(d) | 48,880 | 118 | |
11,509 | |||
Capital Markets - 1.7% | |||
CME Group, Inc. | 213,549 | 43,293 | |
JMP Group, Inc. | 137,116 | 444 | |
MSCI, Inc. | 6,511 | 1,688 | |
The Blackstone Group LP | 175,792 | 9,531 | |
Tradeweb Markets, Inc. Class A | 13,993 | 626 | |
55,582 | |||
TOTAL FINANCIALS | 67,091 | ||
HEALTH CARE - 13.4% | |||
Biotechnology - 3.9% | |||
AbbVie, Inc. | 603,658 | 52,959 | |
Affimed NV (a) | 341,485 | 881 | |
Aimmune Therapeutics, Inc. (a)(d) | 202,418 | 5,652 | |
BioNTech AG | 234,612 | 4,641 | |
BioNTech SE ADR (a)(d) | 75,895 | 1,668 | |
Calyxt, Inc. (a) | 43,908 | 162 | |
Cytokinetics, Inc. (a) | 299,383 | 2,895 | |
Gamida Cell Ltd. (a) | 572,368 | 2,931 | |
Insmed, Inc. (a) | 720,289 | 16,603 | |
Neurocrine Biosciences, Inc. (a) | 55,000 | 6,414 | |
Rubius Therapeutics, Inc. (a) | 31,096 | 239 | |
Vertex Pharmaceuticals, Inc. (a) | 141,259 | 31,324 | |
126,369 | |||
Health Care Equipment & Supplies - 4.6% | |||
Boston Scientific Corp. (a) | 990,614 | 42,844 | |
Danaher Corp. | 186,397 | 27,210 | |
Haemonetics Corp. (a) | 78,907 | 9,516 | |
Intuitive Surgical, Inc. (a) | 82,891 | 49,146 | |
Penumbra, Inc. (a) | 34,886 | 6,172 | |
ResMed, Inc. | 91,637 | 13,709 | |
148,597 | |||
Health Care Providers & Services - 0.8% | |||
Guardant Health, Inc. (a) | 20,115 | 1,562 | |
HealthEquity, Inc. (a) | 127,204 | 8,000 | |
UnitedHealth Group, Inc. | 58,792 | 16,454 | |
26,016 | |||
Health Care Technology - 0.5% | |||
Veeva Systems, Inc. Class A (a) | 92,803 | 13,844 | |
Life Sciences Tools & Services - 1.8% | |||
10X Genomics, Inc. (a) | 23,996 | 1,557 | |
Bio-Techne Corp. | 6,414 | 1,400 | |
Bruker Corp. | 319,537 | 16,357 | |
Codexis, Inc. (a) | 254,504 | 3,955 | |
Thermo Fisher Scientific, Inc. | 112,327 | 35,265 | |
58,534 | |||
Pharmaceuticals - 1.8% | |||
AstraZeneca PLC sponsored ADR | 886,830 | 42,994 | |
Perrigo Co. PLC | 304,647 | 15,607 | |
58,601 | |||
TOTAL HEALTH CARE | 431,961 | ||
INDUSTRIALS - 7.0% | |||
Aerospace & Defense - 0.5% | |||
TransDigm Group, Inc. | 30,782 | 17,456 | |
Commercial Services & Supplies - 0.6% | |||
Copart, Inc. (a) | 207,187 | 18,440 | |
Edenred SA | 6,100 | 303 | |
18,743 | |||
Industrial Conglomerates - 0.5% | |||
Roper Technologies, Inc. | 46,226 | 16,658 | |
Machinery - 1.1% | |||
Gardner Denver Holdings, Inc. (a) | 1,019,572 | 34,533 | |
Professional Services - 2.3% | |||
Equifax, Inc. | 146,736 | 20,490 | |
IHS Markit Ltd. (a) | 290,848 | 21,130 | |
TransUnion Holding Co., Inc. | 374,420 | 32,316 | |
Upwork, Inc. (a) | 7,483 | 87 | |
74,023 | |||
Road & Rail - 2.0% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 269,571 | 9,971 | |
Lyft, Inc. | 169,700 | 8,312 | |
Uber Technologies, Inc. | 1,556,472 | 46,072 | |
64,355 | |||
TOTAL INDUSTRIALS | 225,768 | ||
INFORMATION TECHNOLOGY - 40.0% | |||
Communications Equipment - 0.1% | |||
ViaSat, Inc. (a) | 39,842 | 2,928 | |
Electronic Equipment & Components - 0.4% | |||
Zebra Technologies Corp. Class A (a) | 45,318 | 11,372 | |
IT Services - 8.9% | |||
Black Knight, Inc. (a) | 516,295 | 32,532 | |
Fiserv, Inc. (a) | 293,666 | 34,136 | |
MasterCard, Inc. Class A | 102,327 | 29,903 | |
MongoDB, Inc. Class A (a) | 12,700 | 1,888 | |
Okta, Inc. (a) | 51,989 | 6,747 | |
Shopify, Inc. Class A (a) | 76,478 | 25,785 | |
Square, Inc. (a) | 240,700 | 16,637 | |
VeriSign, Inc. (a) | 6,713 | 1,280 | |
Verra Mobility Corp. (a) | 643,722 | 9,637 | |
Visa, Inc. Class A | 703,489 | 129,801 | |
288,346 | |||
Semiconductors & Semiconductor Equipment - 8.1% | |||
ASML Holding NV | 104,367 | 28,244 | |
Cree, Inc. (a) | 20,653 | 913 | |
Marvell Technology Group Ltd. | 234,486 | 6,183 | |
Micron Technology, Inc. (a) | 339,800 | 16,144 | |
NVIDIA Corp. | 328,899 | 71,286 | |
NXP Semiconductors NV | 380,736 | 44,005 | |
Qualcomm, Inc. | 999,360 | 83,497 | |
Semtech Corp. (a) | 203,774 | 9,875 | |
260,147 | |||
Software - 17.1% | |||
Adobe, Inc. (a) | 373,196 | 115,515 | |
Autodesk, Inc. (a) | 102,035 | 18,458 | |
Cloudflare, Inc. (a) | 17,754 | 346 | |
Datadog, Inc. Class A (a)(d) | 7,677 | 313 | |
Elastic NV (a) | 3,012 | 239 | |
Intuit, Inc. | 128,175 | 33,183 | |
Manhattan Associates, Inc. (a) | 130,279 | 10,880 | |
Microsoft Corp. | 1,953,532 | 295,724 | |
Salesforce.com, Inc. (a) | 385,490 | 62,792 | |
SolarWinds, Inc. (a)(d) | 823,665 | 15,930 | |
553,380 | |||
Technology Hardware, Storage & Peripherals - 5.4% | |||
Apple, Inc. | 652,400 | 174,354 | |
TOTAL INFORMATION TECHNOLOGY | 1,290,527 | ||
MATERIALS - 0.7% | |||
Chemicals - 0.7% | |||
Sherwin-Williams Co. | 40,231 | 23,460 | |
REAL ESTATE - 3.4% | |||
Equity Real Estate Investment Trusts (REITs) - 3.4% | |||
American Tower Corp. | 363,439 | 77,787 | |
Crown Castle International Corp. | 237,790 | 31,783 | |
109,570 | |||
TOTAL COMMON STOCKS | |||
(Cost $2,056,357) | 3,188,671 | ||
Preferred Stocks - 0.2% | |||
Convertible Preferred Stocks - 0.0% | |||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Nuvation Bio, Inc. Series A (b)(c)(e) | 951,500 | 734 | |
INFORMATION TECHNOLOGY - 0.0% | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(b)(c) | 105,425 | 102 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 836 | ||
Nonconvertible Preferred Stocks - 0.2% | |||
FINANCIALS - 0.2% | |||
Banks - 0.2% | |||
Itau Unibanco Holding SA sponsored ADR | 693,692 | 5,647 | |
TOTAL PREFERRED STOCKS | |||
(Cost $7,217) | 6,483 | ||
Money Market Funds - 2.0% | |||
Fidelity Cash Central Fund 1.61% (f) | 40,033,559 | 40,042 | |
Fidelity Securities Lending Cash Central Fund 1.61% (f)(g) | 23,796,644 | 23,799 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $63,841) | 63,841 | ||
TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
(Cost $2,127,415) | 3,258,995 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (31,660) | ||
NET ASSETS - 100% | $3,227,335 |
Legend
(a) Non-income producing
(b) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $857,000 or 0.0% of net assets.
(c) Level 3 security
(d) Security or a portion of the security is on loan at period end.
(e) Security or a portion of the security purchased on a delayed delivery or when-issued 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) |
AppNexus, Inc. Series E (Escrow) | 8/1/14 | $190 |
Blu Homes, Inc. | 6/21/13 | $4,044 |
Nuvation Bio, Inc. Series A | 6/17/19 | $734 |
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 | $476 |
Fidelity Securities Lending Cash Central Fund | 228 |
Total | $704 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $447,269 | $421,543 | $25,726 | $-- |
Consumer Discretionary | 418,410 | 382,985 | 35,404 | 21 |
Consumer Staples | 120,653 | 120,653 | -- | -- |
Energy | 53,962 | 53,962 | -- | -- |
Financials | 72,738 | 70,312 | 2,426 | -- |
Health Care | 432,695 | 427,320 | 4,641 | 734 |
Industrials | 225,768 | 225,768 | -- | -- |
Information Technology | 1,290,629 | 1,290,527 | -- | 102 |
Materials | 23,460 | 23,460 | -- | -- |
Real Estate | 109,570 | 109,570 | -- | -- |
Money Market Funds | 63,841 | 63,841 | -- | -- |
Total Investments in Securities: | $3,258,995 | $3,189,941 | $68,197 | $857 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 87.3% |
Netherlands | 3.1% |
Cayman Islands | 2.1% |
France | 1.7% |
United Kingdom | 1.3% |
India | 1.2% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 2.3% |
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, 2019 | |
Assets | ||
Investment in securities, at value (including securities loaned of $23,132) — See accompanying schedule: Unaffiliated issuers (cost $2,063,574) | $3,195,154 | |
Fidelity Central Funds (cost $63,841) | 63,841 | |
Total Investment in Securities (cost $2,127,415) | $3,258,995 | |
Cash | 83 | |
Receivable for investments sold | 3,807 | |
Receivable for fund shares sold | 741 | |
Dividends receivable | 2,004 | |
Distributions receivable from Fidelity Central Funds | 94 | |
Prepaid expenses | 5 | |
Other receivables | 116 | |
Total assets | 3,265,845 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $9,184 | |
Delayed delivery | 337 | |
Payable for fund shares redeemed | 1,590 | |
Accrued management fee | 1,414 | |
Distribution and service plan fees payable | 878 | |
Other affiliated payables | 519 | |
Other payables and accrued expenses | 793 | |
Collateral on securities loaned | 23,795 | |
Total liabilities | 38,510 | |
Net Assets | $3,227,335 | |
Net Assets consist of: | ||
Paid in capital | $1,814,727 | |
Total accumulated earnings (loss) | 1,412,608 | |
Net Assets | $3,227,335 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($1,049,395 ÷ 80,272 shares)(a) | $13.07 | |
Maximum offering price per share (100/94.25 of $13.07) | $13.87 | |
Class M: | ||
Net Asset Value and redemption price per share ($1,417,476 ÷ 110,931 shares)(a) | $12.78 | |
Maximum offering price per share (100/96.50 of $12.78) | $13.24 | |
Class C: | ||
Net Asset Value and offering price per share ($101,152 ÷ 9,281 shares)(a) | $10.90 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($547,659 ÷ 37,866 shares) | $14.46 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($111,653 ÷ 7,654 shares) | $14.59 |
(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, 2019 | |
Investment Income | ||
Dividends | $25,978 | |
Income from Fidelity Central Funds (including $228 from security lending) | 704 | |
Total income | 26,682 | |
Expenses | ||
Management fee | $16,986 | |
Transfer agent fees | 5,485 | |
Distribution and service plan fees | 10,414 | |
Accounting and security lending fees | 928 | |
Custodian fees and expenses | 66 | |
Independent trustees' fees and expenses | 18 | |
Registration fees | 107 | |
Audit | 70 | |
Legal | 13 | |
Interest | 21 | |
Miscellaneous | 21 | |
Total expenses before reductions | 34,129 | |
Expense reductions | (121) | |
Total expenses after reductions | 34,008 | |
Net investment income (loss) | (7,326) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 323,685 | |
Redemptions in-kind with affiliated entities | 40,130 | |
Fidelity Central Funds | (1) | |
Foreign currency transactions | (23) | |
Total net realized gain (loss) | 363,791 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $620) | 175,103 | |
Assets and liabilities in foreign currencies | (2) | |
Total change in net unrealized appreciation (depreciation) | 175,101 | |
Net gain (loss) | 538,892 | |
Net increase (decrease) in net assets resulting from operations | $531,566 |
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, 2019 | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(7,326) | $(5,642) |
Net realized gain (loss) | 363,791 | 204,053 |
Change in net unrealized appreciation (depreciation) | 175,101 | 53,666 |
Net increase (decrease) in net assets resulting from operations | 531,566 | 252,077 |
Distributions to shareholders | (189,976) | (337,553) |
Share transactions - net increase (decrease) | (272,517) | 111,564 |
Total increase (decrease) in net assets | 69,073 | 26,088 |
Net Assets | ||
Beginning of period | 3,158,262 | 3,132,174 |
End of period | $3,227,335 | $3,158,262 |
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, | 2019 | 2018 A | 2017 A | 2016 A | 2015 A |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $11.84 | $12.26 | $9.61 | $9.88 | $9.38 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.02) | (.01) | (.01) | (.02) | (.01) |
Net realized and unrealized gain (loss) | 1.97 | .93 | 3.24 | (.01) | .51 |
Total from investment operations | 1.95 | .92 | 3.23 | (.03) | .50 |
Distributions from net realized gain | (.72) | (1.34) | (.58) | (.24) | – |
Total distributions | (.72) | (1.34) | (.58) | (.24) | – |
Net asset value, end of period | $13.07 | $11.84 | $12.26 | $9.61 | $9.88 |
Total ReturnC,D | 18.34% | 8.38% | 35.72% | (.39)% | 5.34% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.01% | 1.02% | 1.03% | 1.05% | 1.05% |
Expenses net of fee waivers, if any | 1.01% | 1.01% | 1.03% | 1.05% | 1.05% |
Expenses net of all reductions | 1.01% | 1.01% | 1.03% | 1.05% | 1.04% |
Net investment income (loss) | (.16)% | (.09)% | (.12)% | (.25)% | (.13)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $1,049 | $865 | $843 | $803 | $887 |
Portfolio turnover rateG | 49%H | 37% | 48% | 60% | 63% |
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, | 2019 | 2018A | 2017A | 2016A | 2015A |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $11.61 | $12.05 | $9.47 | $9.77 | $9.29 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.05) | (.04) | (.04) | (.04) | (.03) |
Net realized and unrealized gain (loss) | 1.94 | .91 | 3.20 | (.02) | .51 |
Total from investment operations | 1.89 | .87 | 3.16 | (.06) | .48 |
Distributions from net realized gain | (.72) | (1.31) | (.58) | (.24) | – |
Total distributions | (.72) | (1.31) | (.58) | (.24) | – |
Net asset value, end of period | $12.78 | $11.61 | $12.05 | $9.47 | $9.77 |
Total ReturnC,D | 18.18% | 8.07% | 35.41% | (.62)% | 5.10% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.25% | 1.25% | 1.26% | 1.28% | 1.27% |
Expenses net of fee waivers, if any | 1.25% | 1.25% | 1.26% | 1.27% | 1.27% |
Expenses net of all reductions | 1.24% | 1.24% | 1.26% | 1.27% | 1.27% |
Net investment income (loss) | (.40)% | (.32)% | (.36)% | (.48)% | (.36)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $1,417 | $1,332 | $1,353 | $1,129 | $1,306 |
Portfolio turnover rateG | 49%H | 37% | 48% | 60% | 63% |
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, | 2019 | 2018 A | 2017 A | 2016 A | 2015 A |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $10.07 | $10.63 | $8.47 | $8.80 | $8.42 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.09) | (.09) | (.08) | (.08) | (.08) |
Net realized and unrealized gain (loss) | 1.64 | .80 | 2.82 | (.01) | .46 |
Total from investment operations | 1.55 | .71 | 2.74 | (.09) | .38 |
Distributions from net realized gain | (.72) | (1.27) | (.58) | (.24) | – |
Total distributions | (.72) | (1.27) | (.58) | (.24) | – |
Net asset value, end of period | $10.90 | $10.07 | $10.63 | $8.47 | $8.80 |
Total ReturnC,D | 17.53% | 7.50% | 34.70% | (1.15)% | 4.55% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.80% | 1.78% | 1.79% | 1.81% | 1.81% |
Expenses net of fee waivers, if any | 1.80% | 1.78% | 1.79% | 1.81% | 1.81% |
Expenses net of all reductions | 1.79% | 1.77% | 1.79% | 1.81% | 1.80% |
Net investment income (loss) | (.95)% | (.85)% | (.89)% | (1.01)% | (.89)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $101 | $196 | $200 | $161 | $183 |
Portfolio turnover rateG | 49%H | 37% | 48% | 60% | 63% |
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, | 2019 | 2018 A | 2017 A | 2016 A | 2015 A |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $12.98 | $13.32 | $10.36 | $10.61 | $10.04 |
Income from Investment Operations | |||||
Net investment income (loss)B | .01 | .02 | .02 | –C | .02 |
Net realized and unrealized gain (loss) | 2.19 | 1.01 | 3.52 | (.01) | .55 |
Total from investment operations | 2.20 | 1.03 | 3.54 | (.01) | .57 |
Distributions from net realized gain | (.72) | (1.37) | (.58) | (.24) | – |
Total distributions | (.72) | (1.37) | (.58) | (.24) | – |
Net asset value, end of period | $14.46 | $12.98 | $13.32 | $10.36 | $10.61 |
Total ReturnD | 18.68% | 8.65% | 36.08% | (.12)% | 5.64% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .75% | .75% | .77% | .78% | .78% |
Expenses net of fee waivers, if any | .75% | .75% | .76% | .78% | .77% |
Expenses net of all reductions | .75% | .75% | .76% | .77% | .77% |
Net investment income (loss) | .10% | .17% | .14% | .02% | .14% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $548 | $679 | $677 | $434 | $463 |
Portfolio turnover rateG | 49%H | 37% | 48% | 60% | 63% |
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, | 2019 | 2018 A | 2017 A | 2016 A | 2015 A |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $13.07 | $13.40 | $10.41 | $10.64 | $10.06 |
Income from Investment Operations | |||||
Net investment income (loss)B | .03 | .04 | .03 | .02 | .03 |
Net realized and unrealized gain (loss) | 2.21 | 1.02 | 3.54 | (.01) | .55 |
Total from investment operations | 2.24 | 1.06 | 3.57 | .01 | .58 |
Distributions from net realized gain | (.72) | (1.39) | (.58) | (.24) | – |
Total distributions | (.72) | (1.39) | (.58) | (.24) | – |
Net asset value, end of period | $14.59 | $13.07 | $13.40 | $10.41 | $10.64 |
Total ReturnC | 18.87% | 8.80% | 36.27% | .02% | 5.77% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .62% | .62% | .63% | .64% | .64% |
Expenses net of fee waivers, if any | .62% | .62% | .63% | .63% | .64% |
Expenses net of all reductions | .62% | .62% | .63% | .63% | .63% |
Net investment income (loss) | .23% | .30% | .28% | .16% | .28% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $112 | $87 | $59 | $33 | $26 |
Portfolio turnover rateF | 49%G | 37% | 48% | 60% | 63% |
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, 2019
(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 March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
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 ranged from less than .005% to .01%.
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. 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, 2019 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 $89 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, 2019, 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, passive foreign investment companies (PFIC), redemptions in kind, partnerships, deferred trustees compensation, 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 | $1,162,158 |
Gross unrealized depreciation | (31,555) |
Net unrealized appreciation (depreciation) | $1,130,603 |
Tax Cost | $2,128,392 |
The Fund intends to elect to defer to its next fiscal year $6,770 of ordinary losses recognized during the period January 1, 2019 to November 30, 2019.
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $289,488 |
Net unrealized appreciation (depreciation) on securities and other investments | $1,130,599 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $– | $ 16,127 |
Long-term Capital Gains | 189,976 | 321,426 |
Total | $189,976 | $ 337,553 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $1,549,061 and $1,969,864, 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% | $2,381 | $61 |
Class M | .25% | .25% | 6,766 | 121 |
Class C | .75% | .25% | 1,267 | 136 |
$10,414 | $318 |
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 | $173 |
Class M | 26 |
Class C(a) | 13 |
$212 |
(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 | $1,764 | .18 |
Class M | 2,310 | .17 |
Class C | 266 | .21 |
Class I | 1,098 | .17 |
Class Z | 47 | .05 |
$5,485 |
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. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .03%.
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Equity Growth Fund | $39 |
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 | $22,354 | 2.62% | $21 |
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.
Affiliated Redemptions In-Kind. During the period, 6,447 shares of the Fund were redeemed in-kind for investments and cash with a value of $87,354. The net realized gain of $40,130 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
The Fund participates with other funds managed by 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 $8 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 from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $12. 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 $13 from securities loaned to NFS, as affiliated borrower.
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 $98 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 $23.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Class A | $51,863 | $91,591 |
Class M | 82,195 | 146,455 |
Class C | 13,683 | 23,734 |
Class I | 37,411 | 68,882 |
Class Z | 4,824 | 6,891 |
Total | $189,976 | $337,553 |
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, 2019 | Year ended November 30, 2018(a) | Year ended November 30, 2019 | Year ended November 30, 2018(a) | |
Class A | ||||
Shares sold | 15,045 | 9,440 | $176,639 | $111,596 |
Reinvestment of distributions | 4,812 | 7,841 | 48,074 | 85,798 |
Shares redeemed | (12,652) | (13,004) | (148,629) | (153,755) |
Net increase (decrease) | 7,205 | 4,277 | $76,084 | $43,639 |
Class M | ||||
Shares sold | 9,056 | 12,689 | $104,106 | $147,591 |
Reinvestment of distributions | 8,220 | 13,304 | 80,395 | 143,123 |
Shares redeemed | (21,083) | (23,515) | (243,349) | (273,304) |
Net increase (decrease) | (3,807) | 2,478 | $(58,848) | $17,410 |
Class C | ||||
Shares sold | 2,475 | 4,110 | $23,916 | $41,822 |
Reinvestment of distributions | 1,605 | 2,385 | 13,465 | 22,368 |
Shares redeemed | (14,231) | (5,863) | (139,351) | (59,709) |
Net increase (decrease) | (10,151) | 632 | $(101,970) | $4,481 |
Class I | ||||
Shares sold | 10,757 | 15,639 | $139,214 | $204,465 |
Reinvestment of distributions | 3,224 | 5,482 | 35,532 | 65,612 |
Shares redeemed | (28,423)(b) | (19,663) | (373,732)(b) | (252,991) |
Net increase (decrease) | (14,442) | 1,458 | $(198,986) | $17,086 |
Class Z | ||||
Shares sold | 2,726 | 3,585 | $35,347 | $47,276 |
Reinvestment of distributions | 420 | 558 | 4,662 | 6,713 |
Shares redeemed | (2,127) | (1,888) | (28,806) | (25,041) |
Net increase (decrease) | 1,019 | 2,255 | $11,203 | $28,948 |
(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.
(b) Amount includes in-kind redemptions (see Affiliated Redemptions In-Kind note for additional details).
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. (FIIOC) converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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, 2019, 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, 2019, 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, 2019, 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 13, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Class A | 1.01% | |||
Actual | $1,000.00 | $1,131.60 | $5.40 | |
Hypothetical-C | $1,000.00 | $1,020.00 | $5.11 | |
Class M | 1.24% | |||
Actual | $1,000.00 | $1,131.00 | $6.62 | |
Hypothetical-C | $1,000.00 | $1,018.85 | $6.28 | |
Class C | 1.78% | |||
Actual | $1,000.00 | $1,127.20 | $9.49 | |
Hypothetical-C | $1,000.00 | $1,016.14 | $9.00 | |
Class I | .74% | |||
Actual | $1,000.00 | $1,133.20 | $3.96 | |
Hypothetical-C | $1,000.00 | $1,021.36 | $3.75 | |
Class Z | .62% | |||
Actual | $1,000.00 | $1,134.50 | $3.32 | |
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 | 12/30/19 | 12/27/19 | $1.183 |
Class M | 12/30/19 | 12/27/19 | $1.183 |
Class C | 12/30/19 | 12/27/19 | $1.183 |
Class I | 12/30/19 | 12/27/19 | $1.183 |
Class Z | 12/30/19 | 12/27/19 | $1.183 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019, $324,527,534, or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Equity Growth Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.EPG-ANN-0120
1.539469.122
Fidelity Advisor® Equity Value Fund
Annual Report
November 30, 2019
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fipro_logo.jpg)
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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 3.44% | 5.07% | 10.24% |
Class M (incl. 3.50% sales charge) | 5.68% | 5.29% | 10.21% |
Class C (incl. contingent deferred sales charge) | 7.95% | 5.51% | 10.06% |
Class I | 10.12% | 6.63% | 11.21% |
Class Z | 10.27% | 6.72% | 11.26% |
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, 2009, 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/0001379491-20-000191/img552791693_740.jpg)
Period Ending Values | ||
$26,509 | Fidelity Advisor® Equity Value Fund - Class A | |
$30,095 | Russell 3000® Value Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Portfolio Manager Sean Gavin: For the fiscal year, the fund share classes (excluding sales charges, if applicable) gained roughly 9% to 10%, trailing the 10.81% advance of the benchmark Russell 3000® Value Index. The fund's underperformance of the benchmark was due to sector allocation, especially an underweighting in the market-leading information technology category, where security selection also detracted. My picks in communication services and financials also hurt versus the benchmark. Conversely, security selection was helpful overall, especially in consumer staples, health care and energy. The biggest individual detractor was CVS Health (-3%), which combines a retail drug store chain, pharmacy-benefit-management division and health insurance business. Although I continued to see upside with CVS, I saw even better potential elsewhere, so I reduced the fund's stake in CVS and reinvested the proceeds in other health care names. This included a new position in Centene, which gained about 16% and was a relative contributor. Elsewhere, it hurt to hold C.H. Robinson (-16%), a truck-brokerage services company that faced mounting competitive challenges and which I sold late in the period. In contrast, lower-than-benchmark exposure to drugmaker Pfizer was the top relative contributor, returning roughly -4% for the fund until I sold it. Elsewhere, shares of chocolate manufacturer Hershey gained 34% in response to the company's favorable sales growth and competitive position, among other qualities. I sold the stock in the third quarter of 2019.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, 2019
% of fund's net assets | |
Berkshire Hathaway, Inc. Class B | 4.0 |
Wells Fargo & Co. | 3.8 |
Comcast Corp. Class A | 3.5 |
U.S. Bancorp | 2.9 |
Exxon Mobil Corp. | 2.7 |
Chevron Corp. | 2.5 |
PNC Financial Services Group, Inc. | 2.5 |
The Walt Disney Co. | 2.3 |
Amgen, Inc. | 2.3 |
Cigna Corp. | 2.2 |
28.7 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Financials | 28.3 |
Health Care | 17.8 |
Communication Services | 11.3 |
Consumer Staples | 9.1 |
Energy | 7.4 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019 * | ||
Stocks | 97.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.6% |
* Foreign investments - 13.6%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 11.3% | |||
Diversified Telecommunication Services - 0.6% | |||
Verizon Communications, Inc. | 14,288 | $860,709 | |
Entertainment - 4.1% | |||
Activision Blizzard, Inc. | 20,789 | 1,139,861 | |
Electronic Arts, Inc. (a) | 9,442 | 953,736 | |
Lions Gate Entertainment Corp. Class B | 50,403 | 436,994 | |
The Walt Disney Co. | 21,193 | 3,212,435 | |
5,743,026 | |||
Interactive Media & Services - 0.7% | |||
Alphabet, Inc. Class A (a) | 709 | 924,600 | |
Media - 5.1% | |||
Comcast Corp. Class A | 108,596 | 4,794,513 | |
Fox Corp. Class A | 19,855 | 710,015 | |
Interpublic Group of Companies, Inc. | 67,786 | 1,518,406 | |
7,022,934 | |||
Wireless Telecommunication Services - 0.8% | |||
T-Mobile U.S., Inc. (a) | 14,347 | 1,126,957 | |
TOTAL COMMUNICATION SERVICES | 15,678,226 | ||
CONSUMER DISCRETIONARY - 4.1% | |||
Auto Components - 0.3% | |||
Lear Corp. | 3,787 | 455,614 | |
Internet & Direct Marketing Retail - 0.7% | |||
eBay, Inc. | 25,053 | 889,883 | |
Multiline Retail - 1.5% | |||
Dollar General Corp. | 13,261 | 2,086,751 | |
Textiles, Apparel & Luxury Goods - 1.6% | |||
PVH Corp. | 13,815 | 1,339,502 | |
Tapestry, Inc. | 32,745 | 880,513 | |
2,220,015 | |||
TOTAL CONSUMER DISCRETIONARY | 5,652,263 | ||
CONSUMER STAPLES - 9.1% | |||
Beverages - 1.8% | |||
C&C Group PLC (United Kingdom) | 207,866 | 1,048,449 | |
PepsiCo, Inc. | 10,720 | 1,456,098 | |
2,504,547 | |||
Food & Staples Retailing - 3.2% | |||
Sysco Corp. | 21,676 | 1,746,002 | |
U.S. Foods Holding Corp. (a) | 19,870 | 790,230 | |
Walmart, Inc. | 16,257 | 1,936,046 | |
4,472,278 | |||
Food Products - 1.8% | |||
Danone SA | 16,652 | 1,370,165 | |
Seaboard Corp. | 135 | 555,062 | |
The J.M. Smucker Co. | 5,734 | 602,586 | |
2,527,813 | |||
Personal Products - 0.7% | |||
Unilever NV (NY Reg.) | 15,652 | 932,077 | |
Tobacco - 1.6% | |||
Altria Group, Inc. | 45,100 | 2,241,470 | |
TOTAL CONSUMER STAPLES | 12,678,185 | ||
ENERGY - 7.4% | |||
Energy Equipment & Services - 0.2% | |||
Baker Hughes, A GE Co. Class A | 12,564 | 281,685 | |
Oil, Gas & Consumable Fuels - 7.2% | |||
Chevron Corp. | 29,793 | 3,489,654 | |
Exxon Mobil Corp. | 55,235 | 3,763,161 | |
GasLog Partners LP | 46,542 | 677,186 | |
Golar LNG Partners LP | 72,455 | 689,047 | |
Hoegh LNG Partners LP | 35,046 | 541,811 | |
Teekay LNG Partners LP | 44,933 | 685,228 | |
Teekay Offshore Partners LP | 125,948 | 195,219 | |
10,041,306 | |||
TOTAL ENERGY | 10,322,991 | ||
FINANCIALS - 28.3% | |||
Banks - 12.5% | |||
Huntington Bancshares, Inc. | 61,012 | 908,469 | |
M&T Bank Corp. | 9,656 | 1,590,729 | |
PNC Financial Services Group, Inc. | 22,385 | 3,429,606 | |
SunTrust Banks, Inc. | 30,149 | 2,135,755 | |
U.S. Bancorp | 65,934 | 3,958,018 | |
Wells Fargo & Co. | 97,759 | 5,323,955 | |
17,346,532 | |||
Capital Markets - 3.4% | |||
Affiliated Managers Group, Inc. | 9,269 | 791,295 | |
Goldman Sachs Group, Inc. | 9,951 | 2,202,654 | |
Invesco Ltd. | 26,676 | 468,431 | |
State Street Corp. | 16,061 | 1,206,181 | |
4,668,561 | |||
Consumer Finance - 2.2% | |||
Capital One Financial Corp. | 12,444 | 1,244,524 | |
Discover Financial Services | 20,966 | 1,779,384 | |
3,023,908 | |||
Diversified Financial Services - 4.0% | |||
Berkshire Hathaway, Inc. Class B (a) | 25,303 | 5,574,251 | |
Insurance - 3.8% | |||
Allstate Corp. | 8,497 | 946,141 | |
Chubb Ltd. | 10,838 | 1,641,740 | |
FNF Group | 19,563 | 931,786 | |
The Travelers Companies, Inc. | 13,017 | 1,779,684 | |
5,299,351 | |||
Mortgage Real Estate Investment Trusts - 2.4% | |||
AGNC Investment Corp. | 110,588 | 1,915,384 | |
MFA Financial, Inc. | 187,046 | 1,432,772 | |
3,348,156 | |||
TOTAL FINANCIALS | 39,260,759 | ||
HEALTH CARE - 17.8% | |||
Biotechnology - 3.0% | |||
AbbVie, Inc. | 11,711 | 1,027,406 | |
Amgen, Inc. | 13,479 | 3,163,791 | |
4,191,197 | |||
Health Care Providers & Services - 9.1% | |||
Anthem, Inc. | 5,774 | 1,666,723 | |
Centene Corp. (a) | 42,797 | 2,587,935 | |
Cigna Corp. | 15,193 | 3,037,385 | |
CVS Health Corp. | 21,501 | 1,618,380 | |
Humana, Inc. | 2,878 | 982,060 | |
UnitedHealth Group, Inc. | 9,656 | 2,702,425 | |
12,594,908 | |||
Pharmaceuticals - 5.7% | |||
Allergan PLC | 11,706 | 2,164,908 | |
Bristol-Myers Squibb Co. | 45,052 | 2,565,261 | |
Bristol-Myers Squibb Co. rights (a) | 26,404 | 56,769 | |
Roche Holding AG (participation certificate) | 5,841 | 1,800,739 | |
Sanofi SA sponsored ADR | 27,922 | 1,303,399 | |
7,891,076 | |||
TOTAL HEALTH CARE | 24,677,181 | ||
INDUSTRIALS - 4.1% | |||
Aerospace & Defense - 2.0% | |||
General Dynamics Corp. | 9,083 | 1,650,744 | |
Harris Corp. | 3,941 | 792,496 | |
United Technologies Corp. | 1,866 | 276,802 | |
2,720,042 | |||
Electrical Equipment - 0.6% | |||
Vestas Wind Systems A/S | 8,432 | 802,485 | |
Machinery - 0.9% | |||
Ingersoll-Rand PLC | 10,129 | 1,328,013 | |
Trading Companies & Distributors - 0.6% | |||
HD Supply Holdings, Inc. (a) | 21,371 | 850,993 | |
TOTAL INDUSTRIALS | 5,701,533 | ||
INFORMATION TECHNOLOGY - 6.3% | |||
Communications Equipment - 1.1% | |||
Cisco Systems, Inc. | 33,025 | 1,496,363 | |
Electronic Equipment & Components - 2.0% | |||
Arrow Electronics, Inc. (a) | 8,737 | 695,815 | |
Avnet, Inc. | 14,102 | 573,246 | |
TE Connectivity Ltd. | 16,492 | 1,528,973 | |
2,798,034 | |||
IT Services - 2.6% | |||
Amdocs Ltd. | 18,662 | 1,293,277 | |
Cognizant Technology Solutions Corp. Class A | 21,421 | 1,373,300 | |
The Western Union Co. | 33,859 | 910,130 | |
3,576,707 | |||
Software - 0.6% | |||
Nortonlifelock, Inc. | 35,572 | 885,743 | |
TOTAL INFORMATION TECHNOLOGY | 8,756,847 | ||
MATERIALS - 2.2% | |||
Containers & Packaging - 0.9% | |||
Graphic Packaging Holding Co. | 75,978 | 1,236,162 | |
Metals & Mining - 1.3% | |||
Newmont Goldcorp Corp. | 46,071 | 1,769,126 | |
TOTAL MATERIALS | 3,005,288 | ||
REAL ESTATE - 2.3% | |||
Equity Real Estate Investment Trusts (REITs) - 0.8% | |||
Simon Property Group, Inc. | 7,706 | 1,165,224 | |
Real Estate Management & Development - 1.5% | |||
CBRE Group, Inc. (a) | 35,828 | 2,042,913 | |
TOTAL REAL ESTATE | 3,208,137 | ||
UTILITIES - 4.5% | |||
Electric Utilities - 4.5% | |||
Exelon Corp. | 60,494 | 2,685,934 | |
OGE Energy Corp. | 27,667 | 1,163,674 | |
Southern Co. | 39,924 | 2,474,889 | |
6,324,497 | |||
TOTAL COMMON STOCKS | |||
(Cost $119,334,232) | 135,265,907 | ||
Money Market Funds - 2.5% | |||
Fidelity Cash Central Fund 1.61% (b) | |||
(Cost $3,486,151) | 3,485,454 | 3,486,151 | |
TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
(Cost $122,820,383) | 138,752,058 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 163,215 | ||
NET ASSETS - 100% | $138,915,273 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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 | $166,315 |
Fidelity Securities Lending Cash Central Fund | 6,356 |
Total | $172,671 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $15,678,226 | $15,678,226 | $-- | $-- |
Consumer Discretionary | 5,652,263 | 5,652,263 | -- | -- |
Consumer Staples | 12,678,185 | 11,308,020 | 1,370,165 | -- |
Energy | 10,322,991 | 10,322,991 | -- | -- |
Financials | 39,260,759 | 39,260,759 | -- | -- |
Health Care | 24,677,181 | 22,876,442 | 1,800,739 | -- |
Industrials | 5,701,533 | 5,701,533 | -- | -- |
Information Technology | 8,756,847 | 8,756,847 | -- | -- |
Materials | 3,005,288 | 3,005,288 | -- | -- |
Real Estate | 3,208,137 | 3,208,137 | -- | -- |
Utilities | 6,324,497 | 6,324,497 | -- | -- |
Money Market Funds | 3,486,151 | 3,486,151 | -- | -- |
Total Investments in Securities: | $138,752,058 | $135,581,154 | $3,170,904 | $-- |
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 | 86.4% |
Switzerland | 3.6% |
Ireland | 3.3% |
Marshall Islands | 2.0% |
France | 1.9% |
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
November 30, 2019 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $119,334,232) | $135,265,907 | |
Fidelity Central Funds (cost $3,486,151) | 3,486,151 | |
Total Investment in Securities (cost $122,820,383) | $138,752,058 | |
Foreign currency held at value (cost $1) | 1 | |
Receivable for fund shares sold | 53,125 | |
Dividends receivable | 363,510 | |
Distributions receivable from Fidelity Central Funds | 5,628 | |
Prepaid expenses | 367 | |
Other receivables | 18,043 | |
Total assets | 139,192,732 | |
Liabilities | ||
Payable for fund shares redeemed | $110,557 | |
Accrued management fee | 52,183 | |
Audit fee payable | 41,761 | |
Transfer agent fee payable | 26,451 | |
Distribution and service plan fees payable | 39,869 | |
Other affiliated payables | 4,466 | |
Other payables and accrued expenses | 2,172 | |
Total liabilities | 277,459 | |
Net Assets | $138,915,273 | |
Net Assets consist of: | ||
Paid in capital | $116,771,907 | |
Total accumulated earnings (loss) | 22,143,366 | |
Net Assets | $138,915,273 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($71,915,637 ÷ 3,822,258 shares)(a) | $18.81 | |
Maximum offering price per share (100/94.25 of $18.81) | $19.96 | |
Class M: | ||
Net Asset Value and redemption price per share ($28,790,733 ÷ 1,532,192 shares)(a) | $18.79 | |
Maximum offering price per share (100/96.50 of $18.79) | $19.47 | |
Class C: | ||
Net Asset Value and offering price per share ($15,819,276 ÷ 865,001 shares)(a) | $18.29 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($18,537,687 ÷ 967,730 shares) | $19.16 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($3,851,940 ÷ 200,832 shares) | $19.18 |
(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, 2019 | ||
Investment Income | ||
Dividends | $5,153,980 | |
Income from Fidelity Central Funds (including $6,356 from security lending) | 172,671 | |
Total income | 5,326,651 | |
Expenses | ||
Management fee | ||
Basic fee | $1,161,509 | |
Performance adjustment | (243,006) | |
Transfer agent fees | 432,083 | |
Distribution and service plan fees | 476,381 | |
Accounting and security lending fees | 84,172 | |
Custodian fees and expenses | 13,642 | |
Independent trustees' fees and expenses | 1,311 | |
Registration fees | 73,306 | |
Audit | 60,901 | |
Legal | 5,137 | |
Miscellaneous | 1,424 | |
Total expenses before reductions | 2,066,860 | |
Expense reductions | (7,190) | |
Total expenses after reductions | 2,059,670 | |
Net investment income (loss) | 3,266,981 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $1,143) | 6,761,086 | |
Redemptions in-kind with affiliated entities | 15,857,287 | |
Fidelity Central Funds | 100 | |
Foreign currency transactions | (2,899) | |
Futures contracts | 501,317 | |
Total net realized gain (loss) | 23,116,891 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $1,098) | (10,583,907) | |
Fidelity Central Funds | (51) | |
Assets and liabilities in foreign currencies | (779) | |
Total change in net unrealized appreciation (depreciation) | (10,584,737) | |
Net gain (loss) | 12,532,154 | |
Net increase (decrease) in net assets resulting from operations | $15,799,135 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,266,981 | $3,809,764 |
Net realized gain (loss) | 23,116,891 | 16,603,373 |
Change in net unrealized appreciation (depreciation) | (10,584,737) | (18,704,340) |
Net increase (decrease) in net assets resulting from operations | 15,799,135 | 1,708,797 |
Distributions to shareholders | (18,933,474) | (2,675,097) |
Share transactions - net increase (decrease) | (101,653,211) | (38,293,331) |
Total increase (decrease) in net assets | (104,787,550) | (39,259,631) |
Net Assets | ||
Beginning of period | 243,702,823 | 282,962,454 |
End of period | $138,915,273 | $243,702,823 |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.77 | $18.84 | $16.46 | $15.66 | $16.00 |
Income from Investment Operations | |||||
Net investment income (loss)A | .26 | .26 | .21 | .17 | .35B |
Net realized and unrealized gain (loss) | 1.25 | (.16) | 2.30 | 1.00 | (.50)C |
Total from investment operations | 1.51 | .10 | 2.51 | 1.17 | (.15) |
Distributions from net investment income | (.28) | (.13) | (.13) | (.24)D | (.19) |
Distributions from net realized gain | (1.19) | (.05) | – | (.13)D | – |
Total distributions | (1.47) | (.17)E | (.13) | (.37) | (.19) |
Net asset value, end of period | $18.81 | $18.77 | $18.84 | $16.46 | $15.66 |
Total ReturnF,G | 9.75% | .53% | 15.35% | 7.75% | (.91)%C |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.00% | 1.00% | 1.10% | 1.19% | 1.24% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.09% | 1.19% | 1.23% |
Expenses net of all reductions | .99% | 1.00% | 1.08% | 1.19% | 1.23% |
Net investment income (loss) | 1.47% | 1.39% | 1.18% | 1.08% | 2.23%B |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $71,916 | $67,457 | $81,229 | $77,787 | $67,005 |
Portfolio turnover rateJ | 43%K | 33% | 42% | 46% | 49% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.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 distributions from net investment income of $.126 and distributions from net realized gain of $.045 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.
K 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 Value Fund Class M
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.73 | $18.80 | $16.43 | $15.62 | $15.96 |
Income from Investment Operations | |||||
Net investment income (loss)A | .21 | .21 | .16 | .12 | .31B |
Net realized and unrealized gain (loss) | 1.26 | (.16) | 2.30 | 1.01 | (.50)C |
Total from investment operations | 1.47 | .05 | 2.46 | 1.13 | (.19) |
Distributions from net investment income | (.23) | (.07) | (.09) | (.19)D | (.15) |
Distributions from net realized gain | (1.19) | (.05) | – | (.13)D | – |
Total distributions | (1.41)E | (.12) | (.09) | (.32) | (.15) |
Net asset value, end of period | $18.79 | $18.73 | $18.80 | $16.43 | $15.62 |
Total ReturnF,G | 9.51% | .25% | 15.02% | 7.49% | (1.19)%C |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.26% | 1.27% | 1.36% | 1.46% | 1.50% |
Expenses net of fee waivers, if any | 1.26% | 1.27% | 1.35% | 1.46% | 1.50% |
Expenses net of all reductions | 1.26% | 1.26% | 1.35% | 1.45% | 1.50% |
Net investment income (loss) | 1.21% | 1.12% | .91% | .81% | 1.96%B |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $28,791 | $30,030 | $38,976 | $38,565 | $34,643 |
Portfolio turnover rateJ | 43%K | 33% | 42% | 46% | 49% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.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 distributions of $1.41 per share is comprised of distributions from net investment income of $.229 and distributions from net realized gain of $1.185 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.
K 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 Value Fund Class C
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.25 | $18.33 | $16.04 | $15.27 | $15.63 |
Income from Investment Operations | |||||
Net investment income (loss)A | .12 | .11 | .07 | .05 | .23B |
Net realized and unrealized gain (loss) | 1.24 | (.16) | 2.24 | .98 | (.49)C |
Total from investment operations | 1.36 | (.05) | 2.31 | 1.03 | (.26) |
Distributions from net investment income | (.13) | – | (.02) | (.13)D | (.10) |
Distributions from net realized gain | (1.19) | (.03) | – | (.13)D | – |
Total distributions | (1.32) | (.03) | (.02) | (.26) | (.10) |
Net asset value, end of period | $18.29 | $18.25 | $18.33 | $16.04 | $15.27 |
Total ReturnE,F | 8.95% | (.29)% | 14.44% | 6.95% | (1.68)%C |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.79% | 1.78% | 1.87% | 1.96% | 2.00% |
Expenses net of fee waivers, if any | 1.79% | 1.78% | 1.86% | 1.96% | 2.00% |
Expenses net of all reductions | 1.79% | 1.78% | 1.86% | 1.95% | 2.00% |
Net investment income (loss) | .68% | .61% | .40% | .31% | 1.46%B |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $15,819 | $21,206 | $25,427 | $34,006 | $28,295 |
Portfolio turnover rateI | 43%J | 33% | 42% | 46% | 49% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.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.
J 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 Value Fund Class I
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.09 | $19.18 | $16.74 | $15.93 | $16.27 |
Income from Investment Operations | |||||
Net investment income (loss)A | .31 | .32 | .26 | .21 | .40B |
Net realized and unrealized gain (loss) | 1.28 | (.17) | 2.35 | 1.02 | (.50)C |
Total from investment operations | 1.59 | .15 | 2.61 | 1.23 | (.10) |
Distributions from net investment income | (.34) | (.19) | (.17) | (.29)D | (.24) |
Distributions from net realized gain | (1.19) | (.05) | – | (.13)D | – |
Total distributions | (1.52)E | (.24) | (.17) | (.42) | (.24) |
Net asset value, end of period | $19.16 | $19.09 | $19.18 | $16.74 | $15.93 |
Total ReturnF | 10.12% | .75% | 15.73% | 8.02% | (.60)%C |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .72% | .73% | .82% | .91% | .93% |
Expenses net of fee waivers, if any | .72% | .72% | .82% | .91% | .93% |
Expenses net of all reductions | .72% | .72% | .82% | .91% | .93% |
Net investment income (loss) | 1.75% | 1.66% | 1.45% | 1.36% | 2.53%B |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $18,538 | $122,603 | $136,750 | $22,972 | $25,984 |
Portfolio turnover rateI | 43%J | 33% | 42% | 46% | 49% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.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 distributions of $1.52 per share is comprised of distributions from net investment income of $.337 and distributions from net realized gain of $1.185 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.
J 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 Value Fund Class Z
Years ended November 30, | 2019 | 2018 | 2017 A |
Selected Per–Share Data | |||
Net asset value, beginning of period | $19.12 | $19.20 | $17.46 |
Income from Investment Operations | |||
Net investment income (loss)B | .33 | .34 | .24 |
Net realized and unrealized gain (loss) | 1.28 | (.16) | 1.50 |
Total from investment operations | 1.61 | .18 | 1.74 |
Distributions from net investment income | (.37) | (.21) | – |
Distributions from net realized gain | (1.19) | (.05) | – |
Total distributions | (1.55)C | (.26) | – |
Net asset value, end of period | $19.18 | $19.12 | $19.20 |
Total ReturnD,E | 10.27% | .91% | 9.97% |
Ratios to Average Net AssetsF,G | |||
Expenses before reductions | .58% | .59% | .69%H |
Expenses net of fee waivers, if any | .58% | .59% | .69%H |
Expenses net of all reductions | .58% | .58% | .68%H |
Net investment income (loss) | 1.89% | 1.80% | 1.59%H |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $3,852 | $2,406 | $581 |
Portfolio turnover rateI | 43%J | 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 distributions of $1.55 per share is comprised of distributions from net investment income of $.369 and distributions from net realized gain of $1.185 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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, 2019
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. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
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 ranged from less than .005% to .01%.
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. 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, 2019 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, 2019, 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 futures contracts, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), redemptions in kind, 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 | $20,487,615 |
Gross unrealized depreciation | (5,087,416) |
Net unrealized appreciation (depreciation) | $15,400,199 |
Tax Cost | $123,351,859 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $2,859,126 |
Undistributed long-term capital gain | $3,883,655 |
Net unrealized appreciation (depreciation) on securities and other investments | $15,399,486 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $3,727,381 | $ 2,276,988 |
Long-term Capital Gains | 15,206,093 | 398,109 |
Total | $18,933,474 | $ 2,675,097 |
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 and in-kind transactions, aggregated $89,361,902 and $109,071,800, 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 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 .43% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $166,429 | $2,748 |
Class M | .25% | .25% | 142,028 | 2,136 |
Class C | .75% | .25% | 167,924 | 14,200 |
$476,381 | $19,084 |
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 | $16,327 |
Class M | 2,554 |
Class C(a) | 829 |
$19,710 |
(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 | $140,637 | .21 |
Class M | 63,261 | .22 |
Class C | 41,504 | .25 |
Class I | 185,170 | .18 |
Class Z | 1,511 | .05 |
$432,083 |
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. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .04%.
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Equity Value Fund | $2,155 |
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.
Affiliated Redemptions In-Kind. During the period, 5,066,023 shares of the Fund were redeemed in-kind for investments and cash with a value of $91,298,847. The net realized gain of $15,857,287 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
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 $616 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. During the period, there were no securities loaned to NFS.
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 $5,389 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,801.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Class A | $5,220,713 | $728,057 |
Class M | 2,271,102 | 243,030 |
Class C | 1,505,420 | 36,911 |
Class I | 9,737,158 | 1,656,313 |
Class Z | 199,081 | 10,786 |
Total | $18,933,474 | $2,675,097 |
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, 2019 | Year ended November 30, 2018 | Year ended November 30, 2019 | Year ended November 30, 2018 | |
Class A | ||||
Shares sold | 706,645 | 430,532 | $12,195,411 | $8,163,680 |
Reinvestment of distributions | 328,286 | 37,430 | 5,062,178 | 710,804 |
Shares redeemed | (806,687) | (1,184,591) | (13,913,663) | (22,299,608) |
Net increase (decrease) | 228,244 | (716,629) | $3,343,926 | $(13,425,124) |
Class M | ||||
Shares sold | 154,552 | 115,992 | $2,634,157 | $2,192,989 |
Reinvestment of distributions | 145,711 | 12,686 | 2,248,322 | 241,033 |
Shares redeemed | (371,205) | (598,236) | (6,347,420) | (11,241,304) |
Net increase (decrease) | (70,942) | (469,558) | $(1,464,941) | $(8,807,282) |
Class C | ||||
Shares sold | 175,881 | 160,672 | $2,938,116 | $2,951,495 |
Reinvestment of distributions | 96,159 | 1,869 | 1,452,001 | 34,762 |
Shares redeemed | (568,894) | (387,892) | (9,543,988) | (7,170,975) |
Net increase (decrease) | (296,854) | (225,351) | $(5,153,871) | $(4,184,718) |
Class I | ||||
Shares sold | 886,122 | 1,756,303 | $15,260,551 | $33,530,713 |
Reinvestment of distributions | 583,943 | 77,656 | 9,144,546 | 1,495,652 |
Shares redeemed | (6,923,103)(a) | (2,543,433) | (124,061,130)(a) | (48,747,625) |
Net increase (decrease) | (5,453,038) | (709,474) | $(99,656,033) | $(13,721,260) |
Class Z | ||||
Shares sold | 90,632 | 125,790 | $1,579,109 | $2,429,543 |
Reinvestment of distributions | 10,508 | 526 | 164,552 | 10,140 |
Shares redeemed | (26,132) | (30,752) | (465,953) | (594,630) |
Net increase (decrease) | 75,008 | 95,564 | $1,277,708 | $1,845,053 |
(a) Amount includes in-kind redemptions (see Affiliated Redemptions In-Kind note for additional details).
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. (FIIOC) converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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, 2019, 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, 2019, 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, 2019, by correspondence with the custodians and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 14, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Class A | 1.01% | |||
Actual | $1,000.00 | $1,123.70 | $5.38 | |
Hypothetical-C | $1,000.00 | $1,020.00 | $5.11 | |
Class M | 1.27% | |||
Actual | $1,000.00 | $1,122.50 | $6.76 | |
Hypothetical-C | $1,000.00 | $1,018.70 | $6.43 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $1,119.30 | $9.56 | |
Hypothetical-C | $1,000.00 | $1,016.04 | $9.10 | |
Class I | .73% | |||
Actual | $1,000.00 | $1,125.10 | $3.89 | |
Hypothetical-C | $1,000.00 | $1,021.41 | $3.70 | |
Class Z | .59% | |||
Actual | $1,000.00 | $1,126.20 | $3.14 | |
Hypothetical-C | $1,000.00 | $1,022.11 | $2.99 |
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 | 12/30/2019 | 12/27/2019 | $0.451 | $0.531 |
Class M | 12/30/2019 | 12/27/2019 | $0.395 | $0.531 |
Class C | 12/30/2019 | 12/27/2019 | $0.287 | $0.531 |
Class I | 12/30/2019 | 12/27/2019 | $0.352 | $0.531 |
Class Z | 12/30/2019 | 12/27/2019 | $0.524 | $0.531 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019, $5,341,166, or, if subsequently determined to be different, the net capital gain of such year.
Class A designates 100%, Class M designates 100%; Class C designates 100%; Class I designates 95%; and Class Z designates 87%; 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 designates 100%; Class M designates 100%; Class C designates 100%; Class I designates 99%; and Class Z designates 91%; of the, dividends distributed in November as indicated in the Qualified Dividend memo distributed by the Tax department, 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 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Equity Value Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.AEV-ANN-0120
1.767075.118
Fidelity Advisor® Growth Opportunities Fund
Annual Report
November 30, 2019
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See the inside front cover for important information about access to your fund’s shareholder reports.
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 23.74% | 15.56% | 17.47% |
Class M (incl. 3.50% sales charge) | 26.42% | 15.84% | 17.49% |
Class C (incl. contingent deferred sales charge) | 29.31% | 16.06% | 17.28% |
Class I | 31.66% | 17.26% | 18.52% |
Class Z | 31.81% | 17.41% | 18.61% |
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, 2009, 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/0001379491-20-000191/img552793100_740.jpg)
Period Ending Values | ||
$50,018 | Fidelity Advisor® Growth Opportunities Fund - Class A | |
$41,263 | Russell 1000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Portfolio Manager Kyle Weaver: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 30% to 32%, considerably ahead of the 21.01% advance of the benchmark Russell 1000® Growth Index. Versus the benchmark, stock selection in the consumer staples sector contributed most by a wide margin, almost entirely due to top contributor Juul Labs (+7%). We transitioned our non-benchmark holdings in Juul to a much smaller position the past 12 months, which was timely. Stock choices in consumer discretionary, communication services, health care and information technology also lifted the fund’s relative result. Roku (+296%), a maker of online media players, was a noteworthy contributor, along with Carvana (+118%), a fast-growing operator of an e-commerce platform for selling used cars. It also helped to establish a non-benchmark stake in Sea Limited (+222%), a Singapore-based provider of e-commerce and digital entertainment in various Southeast Asian countries, as well as in Latin America. Conversely, security selection in materials and industrials detracted this period, although a large underweighting offset much of the relative underperformance in the latter group. Alliance Data Systems returned -47% until I exited the position, and the provider of private-label credit cards was the largest individual relative detractor. Untimely non-benchmark exposure to meal-delivery service Waitr Holdings returned about -97% and hurt our relative result. Waitr was not held at period end.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, 2019
% of fund's net assets | |
Microsoft Corp. | 7.5 |
Alphabet, Inc. Class C | 4.8 |
Apple, Inc. | 4.8 |
Amazon.com, Inc. | 4.7 |
Facebook, Inc. Class A | 3.4 |
Salesforce.com, Inc. | 2.5 |
Carvana Co. Class A | 2.0 |
UnitedHealth Group, Inc. | 1.7 |
Alphabet, Inc. Class A | 1.6 |
LendingTree, Inc. | 1.5 |
34.5 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Information Technology | 39.2 |
Communication Services | 17.0 |
Consumer Discretionary | 14.7 |
Health Care | 13.8 |
Industrials | 3.8 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019* | ||
Stocks | 96.4% | |
Convertible Securities | 1.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.0% |
* Foreign investments - 14.6%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 96.4% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 17.0% | |||
Entertainment - 3.9% | |||
Activision Blizzard, Inc. | 633,651 | $34,743 | |
Electronic Arts, Inc. (a) | 254,935 | 25,751 | |
Netflix, Inc. (a) | 103,927 | 32,702 | |
Roku, Inc. Class A (a) | 375,780 | 60,264 | |
Sea Ltd. ADR (a)(b) | 1,767,448 | 65,466 | |
Take-Two Interactive Software, Inc. (a) | 131,678 | 15,979 | |
The Walt Disney Co. | 447,040 | 67,762 | |
302,667 | |||
Interactive Media & Services - 11.0% | |||
Alphabet, Inc.: | |||
Class A (a) | 93,870 | 122,415 | |
Class C (a) | 291,199 | 380,003 | |
CarGurus, Inc. Class A (a) | 1,711,290 | 68,606 | |
Facebook, Inc. Class A (a) | 1,320,533 | 266,272 | |
IAC/InterActiveCorp (a) | 125,900 | 28,038 | |
Zillow Group, Inc. Class A (a) | 46,172 | 1,803 | |
867,137 | |||
Media - 0.9% | |||
Charter Communications, Inc. Class A (a) | 24,972 | 11,737 | |
Comcast Corp. Class A | 1,259,109 | 55,590 | |
67,327 | |||
Wireless Telecommunication Services - 1.2% | |||
T-Mobile U.S., Inc. (a) | 1,235,946 | 97,084 | |
TOTAL COMMUNICATION SERVICES | 1,334,215 | ||
CONSUMER DISCRETIONARY - 14.7% | |||
Automobiles - 1.2% | |||
Tesla, Inc. (a)(b) | 287,476 | 94,850 | |
Diversified Consumer Services - 0.2% | |||
Arco Platform Ltd. Class A (a) | 401,728 | 17,274 | |
Hotels, Restaurants & Leisure - 0.2% | |||
McDonald's Corp. | 11,300 | 2,198 | |
Planet Fitness, Inc. (a) | 166,713 | 12,323 | |
Starbucks Corp. | 7,332 | 626 | |
15,147 | |||
Internet & Direct Marketing Retail - 9.8% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 539,953 | 107,991 | |
Amazon.com, Inc. (a) | 206,667 | 372,166 | |
Meituan Dianping Class B (a) | 1,554,192 | 20,489 | |
MercadoLibre, Inc. (a) | 77,689 | 45,105 | |
Naspers Ltd. Class N | 133,066 | 18,960 | |
Pinduoduo, Inc. ADR (a)(b) | 2,402,318 | 86,363 | |
Prosus NV (a) | 154,966 | 10,564 | |
The Booking Holdings, Inc. (a) | 36,391 | 69,290 | |
The RealReal, Inc. (b) | 1,018,550 | 17,519 | |
Wayfair LLC Class A (a) | 214,314 | 18,200 | |
766,647 | |||
Multiline Retail - 0.2% | |||
Dollar Tree, Inc. (a) | 180,744 | 16,531 | |
Specialty Retail - 2.9% | |||
Carvana Co. Class A (a)(b) | 1,663,713 | 158,585 | |
Floor & Decor Holdings, Inc. Class A (a) | 676,482 | 32,478 | |
Lowe's Companies, Inc. | 293,688 | 34,453 | |
225,516 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Allbirds, Inc. (a)(c)(d) | 4,746 | 227 | |
lululemon athletica, Inc. (a) | 75,515 | 17,043 | |
17,270 | |||
TOTAL CONSUMER DISCRETIONARY | 1,153,235 | ||
CONSUMER STAPLES - 1.8% | |||
Beverages - 0.3% | |||
Budweiser Brewing Co. APAC Ltd. (a)(e) | 887,566 | 3,163 | |
Fever-Tree Drinks PLC | 644,614 | 18,241 | |
21,404 | |||
Food & Staples Retailing - 0.4% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 643,700 | 15,256 | |
Performance Food Group Co. (a) | 407,866 | 19,194 | |
Walmart, Inc. | 9,566 | 1,139 | |
35,589 | |||
Food Products - 0.1% | |||
Beyond Meat, Inc. (b) | 95,544 | 7,926 | |
Personal Products - 0.1% | |||
Unilever NV | 98,486 | 5,859 | |
Tobacco - 0.9% | |||
Altria Group, Inc. | 1,503,168 | 74,707 | |
JUUL Labs, Inc. Class B (a)(c)(d) | 2,772 | 397 | |
75,104 | |||
TOTAL CONSUMER STAPLES | 145,882 | ||
ENERGY - 1.2% | |||
Oil, Gas & Consumable Fuels - 1.2% | |||
Reliance Industries Ltd. | 4,255,297 | 91,996 | |
FINANCIALS - 2.9% | |||
Banks - 0.2% | |||
HDFC Bank Ltd. sponsored ADR | 271,500 | 16,765 | |
Capital Markets - 0.9% | |||
Cboe Global Markets, Inc. | 154,948 | 18,423 | |
Charles Schwab Corp. | 174,332 | 8,629 | |
London Stock Exchange Group PLC | 259,159 | 23,045 | |
MSCI, Inc. | 34,579 | 8,963 | |
TD Ameritrade Holding Corp. | 227,774 | 11,806 | |
70,866 | |||
Consumer Finance - 0.3% | |||
Synchrony Financial | 506,501 | 18,948 | |
Thrifts & Mortgage Finance - 1.5% | |||
LendingTree, Inc. (a)(b) | 335,700 | 121,030 | |
TOTAL FINANCIALS | 227,609 | ||
HEALTH CARE - 13.8% | |||
Biotechnology - 4.9% | |||
AbbVie, Inc. | 175,235 | 15,373 | |
ACADIA Pharmaceuticals, Inc. (a) | 236,589 | 10,715 | |
Acceleron Pharma, Inc. (a) | 73,692 | 3,608 | |
Agios Pharmaceuticals, Inc. (a) | 253,500 | 9,861 | |
Aimmune Therapeutics, Inc. (a) | 185,911 | 5,191 | |
Alexion Pharmaceuticals, Inc. (a) | 474,324 | 54,044 | |
Alnylam Pharmaceuticals, Inc. (a) | 219,735 | 25,740 | |
Argenx SE ADR (a) | 19,329 | 2,862 | |
Ascendis Pharma A/S sponsored ADR (a) | 50,262 | 5,789 | |
BeiGene Ltd. (a) | 127,913 | 1,964 | |
BioNTech SE ADR (a)(b) | 409,307 | 8,997 | |
bluebird bio, Inc. (a) | 85,705 | 6,937 | |
Blueprint Medicines Corp. (a) | 22,888 | 1,878 | |
Crinetics Pharmaceuticals, Inc. (a) | 391,161 | 7,651 | |
FibroGen, Inc. (a) | 671,501 | 28,451 | |
G1 Therapeutics, Inc. (a) | 95,316 | 2,059 | |
Gritstone Oncology, Inc. (a) | 311,808 | 2,716 | |
Heron Therapeutics, Inc. (a) | 375,021 | 9,586 | |
Insmed, Inc. (a) | 1,602,579 | 36,939 | |
Intercept Pharmaceuticals, Inc. (a) | 49,872 | 5,405 | |
La Jolla Pharmaceutical Co. (a) | 107,957 | 296 | |
Neurocrine Biosciences, Inc. (a) | 223,502 | 26,063 | |
Sage Therapeutics, Inc. (a) | 53,547 | 8,287 | |
Sarepta Therapeutics, Inc. (a) | 267,680 | 30,111 | |
Vertex Pharmaceuticals, Inc. (a) | 331,196 | 73,443 | |
383,966 | |||
Health Care Equipment & Supplies - 4.7% | |||
Becton, Dickinson & Co. | 207,956 | 53,757 | |
Boston Scientific Corp. (a) | 1,640,353 | 70,945 | |
DexCom, Inc. (a) | 127,913 | 29,076 | |
Insulet Corp. (a) | 112,610 | 20,912 | |
Intuitive Surgical, Inc. (a) | 64,373 | 38,167 | |
Masimo Corp. (a) | 130,437 | 20,227 | |
Novocure Ltd. (a) | 445,958 | 41,108 | |
Penumbra, Inc. (a) | 128,805 | 22,788 | |
SmileDirectClub, Inc. (a)(b)(f) | 5,839,753 | 58,222 | |
TransMedics Group, Inc. | 636,123 | 11,927 | |
367,129 | |||
Health Care Providers & Services - 3.2% | |||
Centene Corp. (a) | 146,144 | 8,837 | |
Cigna Corp. | 147,444 | 29,477 | |
Guardant Health, Inc. (a) | 43,596 | 3,386 | |
Humana, Inc. | 216,298 | 73,807 | |
UnitedHealth Group, Inc. | 480,709 | 134,536 | |
250,043 | |||
Life Sciences Tools & Services - 0.2% | |||
10X Genomics, Inc. (a) | 38,840 | 2,520 | |
Bruker Corp. | 274,545 | 14,054 | |
Thermo Fisher Scientific, Inc. | 12,400 | 3,893 | |
20,467 | |||
Pharmaceuticals - 0.8% | |||
AstraZeneca PLC sponsored ADR | 78,175 | 3,790 | |
Bristol-Myers Squibb Co. | 399,675 | 22,757 | |
Bristol-Myers Squibb Co. rights (a) | 125,816 | 271 | |
Nabriva Therapeutics PLC (a)(b) | 3,850,181 | 7,777 | |
Nektar Therapeutics (a) | 380,771 | 7,726 | |
OptiNose, Inc. (a) | 32,200 | 301 | |
Roche Holding AG (participation certificate) | 66,779 | 20,587 | |
Theravance Biopharma, Inc. (a) | 150,727 | 3,280 | |
66,489 | |||
TOTAL HEALTH CARE | 1,088,094 | ||
INDUSTRIALS - 3.6% | |||
Aerospace & Defense - 0.1% | |||
Northrop Grumman Corp. | 30,616 | 10,770 | |
Airlines - 1.0% | |||
JetBlue Airways Corp. (a) | 1,321,342 | 25,462 | |
Spirit Airlines, Inc. (a) | 1,368,407 | 53,464 | |
78,926 | |||
Electrical Equipment - 0.5% | |||
Sunrun, Inc. (a) | 1,409,172 | 19,559 | |
Vestas Wind Systems A/S | 217,560 | 20,705 | |
40,264 | |||
Industrial Conglomerates - 0.1% | |||
General Electric Co. | 726,100 | 8,183 | |
Machinery - 0.3% | |||
Minebea Mitsumi, Inc. | 1,127,044 | 21,878 | |
Professional Services - 0.3% | |||
TransUnion Holding Co., Inc. | 312,996 | 27,015 | |
Road & Rail - 1.3% | |||
Lyft, Inc. | 1,439,913 | 70,527 | |
Uber Technologies, Inc. | 980,381 | 29,019 | |
99,546 | |||
TOTAL INDUSTRIALS | 286,582 | ||
INFORMATION TECHNOLOGY - 39.0% | |||
Electronic Equipment & Components - 0.4% | |||
Flextronics International Ltd. (a) | 1,128,700 | 13,398 | |
TTM Technologies, Inc. (a) | 1,140,792 | 15,298 | |
28,696 | |||
IT Services - 9.6% | |||
Adyen BV (a)(e) | 7,176 | 5,505 | |
Black Knight, Inc. (a) | 65,500 | 4,127 | |
EPAM Systems, Inc. (a) | 56,773 | 12,027 | |
Fidelity National Information Services, Inc. | 211,137 | 29,169 | |
GDS Holdings Ltd. ADR (a)(b) | 2,175,238 | 101,845 | |
Genpact Ltd. | 190,958 | 7,772 | |
Global Payments, Inc. | 280,130 | 50,732 | |
GoDaddy, Inc. (a) | 976,348 | 64,810 | |
MasterCard, Inc. Class A | 359,996 | 105,202 | |
MongoDB, Inc. Class A (a) | 168,999 | 25,130 | |
Okta, Inc. (a) | 123,521 | 16,031 | |
PagSeguro Digital Ltd. (a) | 874,083 | 29,666 | |
PayPal Holdings, Inc. (a) | 582,845 | 62,953 | |
Riskified Ltd. warrants (a)(c)(d) | 818 | 0 | |
StoneCo Ltd. Class A (a) | 20,700 | 848 | |
Twilio, Inc. Class A (a)(b) | 223,030 | 23,035 | |
Visa, Inc. Class A | 637,208 | 117,571 | |
Wix.com Ltd. (a) | 849,184 | 102,658 | |
759,081 | |||
Semiconductors & Semiconductor Equipment - 6.6% | |||
Applied Materials, Inc. | 729,775 | 42,254 | |
Broadcom, Inc. | 133,231 | 42,129 | |
Lam Research Corp. | 190,430 | 50,812 | |
Marvell Technology Group Ltd. | 2,149,847 | 56,691 | |
Micron Technology, Inc. (a) | 1,675,772 | 79,616 | |
NVIDIA Corp. | 523,368 | 113,435 | |
NXP Semiconductors NV | 724,872 | 83,781 | |
ON Semiconductor Corp. (a) | 1,234,561 | 26,506 | |
Qualcomm, Inc. | 205,989 | 17,210 | |
Skyworks Solutions, Inc. | 8,917 | 877 | |
SolarEdge Technologies, Inc. (a) | 26,455 | 2,159 | |
515,470 | |||
Software - 17.2% | |||
Adobe, Inc. (a) | 329,782 | 102,077 | |
Anaplan, Inc. (a) | 311,185 | 16,779 | |
Autodesk, Inc. (a) | 418,648 | 75,733 | |
Cloudflare, Inc. | 60,400 | 1,059 | |
Coupa Software, Inc. (a) | 175,207 | 26,893 | |
Datadog, Inc. Class A (a)(b) | 241,918 | 9,863 | |
DocuSign, Inc. (a) | 325,778 | 23,199 | |
Elastic NV (a) | 311,040 | 24,700 | |
HubSpot, Inc. (a) | 159,750 | 24,122 | |
Intuit, Inc. | 108,590 | 28,113 | |
Lightspeed POS, Inc. (a) | 1,158,995 | 30,347 | |
Microsoft Corp. | 3,888,180 | 588,591 | |
Nutanix, Inc. Class A (a) | 131,600 | 4,915 | |
Q2 Holdings, Inc. (a) | 20,212 | 1,706 | |
RingCentral, Inc. (a) | 69,191 | 11,933 | |
Salesforce.com, Inc. (a) | 1,183,150 | 192,723 | |
ServiceNow, Inc. (a) | 144,550 | 40,913 | |
SS&C Technologies Holdings, Inc. | 208,565 | 12,524 | |
The Trade Desk, Inc. (a)(b) | 379,676 | 99,984 | |
Workday, Inc. Class A (a) | 146,764 | 26,288 | |
Xero Ltd. (a) | 16,469 | 905 | |
Zoom Video Communications, Inc. Class A (b) | 109,887 | 8,187 | |
1,351,554 | |||
Technology Hardware, Storage & Peripherals - 5.2% | |||
Apple, Inc. | 1,405,040 | 375,497 | |
Western Digital Corp. | 643,396 | 32,382 | |
407,879 | |||
TOTAL INFORMATION TECHNOLOGY | 3,062,680 | ||
MATERIALS - 0.9% | |||
Chemicals - 0.9% | |||
LG Chemical Ltd. | 120,716 | 31,321 | |
Olin Corp. | 828,423 | 14,514 | |
The Chemours Co. LLC | 1,474,017 | 23,275 | |
69,110 | |||
REAL ESTATE - 0.8% | |||
Equity Real Estate Investment Trusts (REITs) - 0.7% | |||
American Tower Corp. | 157,202 | 33,646 | |
Equinix, Inc. | 29,823 | 16,905 | |
50,551 | |||
Real Estate Management & Development - 0.1% | |||
Redfin Corp. (a)(b) | 536,704 | 10,348 | |
TOTAL REAL ESTATE | 60,899 | ||
UTILITIES - 0.7% | |||
Electric Utilities - 0.6% | |||
NextEra Energy, Inc. | 77,778 | 18,186 | |
ORSTED A/S (e) | 300,999 | 27,741 | |
45,927 | |||
Independent Power and Renewable Electricity Producers - 0.1% | |||
Sunnova Energy International, Inc. | 697,331 | 7,169 | |
TOTAL UTILITIES | 53,096 | ||
TOTAL COMMON STOCKS | |||
(Cost $5,220,238) | 7,573,398 | ||
Preferred Stocks - 1.6% | |||
Convertible Preferred Stocks - 1.6% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Hotels, Restaurants & Leisure - 0.0% | |||
Neutron Holdings, Inc. Series C (a)(c)(d) | 6,477,300 | 1,571 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (a)(c)(d) | 1,873 | 89 | |
Series B (a)(c)(d) | 329 | 16 | |
Series C (a)(c)(d) | 3,146 | 150 | |
255 | |||
TOTAL CONSUMER DISCRETIONARY | 1,826 | ||
CONSUMER STAPLES - 1.2% | |||
Food & Staples Retailing - 0.1% | |||
Blink Health LLC Series C (c)(d) | 143,212 | 5,467 | |
Sweetgreen, Inc.: | |||
Series C (c)(d) | 3,842 | 66 | |
Series D (c)(d) | 61,801 | 1,057 | |
Series I (c)(d) | 145,657 | 2,491 | |
9,081 | |||
Tobacco - 1.1% | |||
JUUL Labs, Inc.: | |||
Series C (a)(c)(d) | 566,439 | 81,029 | |
Series D (a)(c)(d) | 3,671 | 525 | |
81,554 | |||
TOTAL CONSUMER STAPLES | 90,635 | ||
FINANCIALS - 0.0% | |||
Insurance - 0.0% | |||
Clover Health Series D (a)(c)(d) | 282,226 | 965 | |
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Nuvation Bio, Inc. Series A (c)(d)(g) | 1,839,200 | 1,419 | |
INDUSTRIALS - 0.2% | |||
Aerospace & Defense - 0.0% | |||
Space Exploration Technologies Corp. Series I (a)(c)(d) | 16,438 | 3,518 | |
Road & Rail - 0.2% | |||
Convoy, Inc. Series D (c)(d) | 1,038,289 | 14,058 | |
TOTAL INDUSTRIALS | 17,576 | ||
INFORMATION TECHNOLOGY - 0.2% | |||
IT Services - 0.0% | |||
Riskified Ltd. Series E (c)(d) | 3,900 | 928 | |
Software - 0.2% | |||
ACV Auctions, Inc. Series E (c)(d) | 2,543,049 | 14,064 | |
TOTAL INFORMATION TECHNOLOGY | 14,992 | ||
REAL ESTATE - 0.0% | |||
Real Estate Management & Development - 0.0% | |||
Sonder Canada, Inc. Series D (c)(d) | 126,152 | 1,324 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 128,737 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (a)(c)(d) | 1,006 | 48 | |
TOTAL PREFERRED STOCKS | |||
(Cost $47,832) | 128,785 | ||
Money Market Funds - 9.9% | |||
Fidelity Cash Central Fund 1.61% (h) | 161,258,943 | 161,291 | |
Fidelity Securities Lending Cash Central Fund 1.61% (h)(i) | 614,594,265 | 614,656 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $775,947) | 775,947 | ||
TOTAL INVESTMENT IN SECURITIES - 107.9% | |||
(Cost $6,044,017) | 8,478,130 | ||
NET OTHER ASSETS (LIABILITIES) - (7.9)% | (618,318) | ||
NET ASSETS - 100% | $7,859,812 |
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 $129,409,000 or 1.6% 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 $36,409,000 or 0.5% of net assets.
(f) Affiliated company
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(i) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
ACV Auctions, Inc. Series E | 11/6/19 | $14,064 |
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 |
Blink Health LLC Series C | 11/7/19 | $5,467 |
Clover Health Series D | 6/7/17 | $2,647 |
Convoy, Inc. Series D | 10/30/19 | $14,058 |
JUUL Labs, Inc. Class B | 11/21/17 | $0 |
JUUL Labs, Inc. Series C | 5/22/15 | $0 |
JUUL Labs, Inc. Series D | 6/25/18 | $0 |
Neutron Holdings, Inc. Series C | 7/3/18 | $1,184 |
Nuvation Bio, Inc. Series A | 6/17/19 | $1,419 |
Riskified Ltd. Series E | 10/28/19 | $928 |
Riskified Ltd. warrants | 10/28/19 | $0 |
Sonder Canada, Inc. Series D | 5/21/19 | $1,324 |
Space Exploration Technologies Corp. Series I | 4/5/18 | $2,778 |
Sweetgreen, Inc. Series C | 9/13/19 | $66 |
Sweetgreen, Inc. Series D | 9/13/19 | $1,057 |
Sweetgreen, Inc. Series I | 9/13/19 | $2,491 |
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 | $2,281 |
Fidelity Securities Lending Cash Central Fund | 3,655 |
Total | $5,936 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
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(a) | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
Nabriva Therapeutics PLC | $2,574 | $5,876 | $64 | $-- | $-- | $(609) | $-- |
SmileDirectClub, Inc. | -- | 69,533 | 1,740 | -- | (1,762) | (7,809) | 58,222 |
Waitr Holdings, Inc. | -- | 39,334 | 1,555 | -- | (37,779) | -- | -- |
Total | $2,574 | $114,743 | $3,359 | $-- | $(39,541) | $(8,418) | $58,222 |
(a) Includes the value of securities delivered through in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $1,334,215 | $1,334,215 | $-- | $-- |
Consumer Discretionary | 1,155,109 | 1,134,048 | 18,960 | 2,101 |
Consumer Staples | 236,517 | 139,626 | 5,859 | 91,032 |
Energy | 91,996 | 91,996 | -- | -- |
Financials | 228,574 | 204,564 | 23,045 | 965 |
Health Care | 1,089,513 | 1,067,507 | 20,587 | 1,419 |
Industrials | 304,158 | 286,582 | -- | 17,576 |
Information Technology | 3,077,672 | 3,061,621 | 1,059 | 14,992 |
Materials | 69,110 | 69,110 | -- | -- |
Real Estate | 62,223 | 60,899 | -- | 1,324 |
Utilities | 53,096 | 53,096 | -- | -- |
Money Market Funds | 775,947 | 775,947 | -- | -- |
Total Investments in Securities: | $8,478,130 | $8,279,211 | $69,510 | $129,409 |
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 | $194,540 |
Net Realized Gain (Loss) on Investment Securities | 223,081 |
Net Unrealized Gain (Loss) on Investment Securities | (109,363) |
Cost of Purchases | 9,080 |
Proceeds of Sales | (226,306) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $91,032 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2019 | $(109,374) |
Other Investments in Securities | |
Beginning Balance | $28,784 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | (7,916) |
Cost of Purchases | 31,792 |
Proceeds of Sales | (14,283) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $38,377 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2019 | $(624) |
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 | 85.4% |
Cayman Islands | 5.4% |
Netherlands | 1.8% |
India | 1.4% |
Israel | 1.3% |
Others (Individually Less Than 1%) | 4.7% |
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, 2019 | |
Assets | ||
Investment in securities, at value (including securities loaned of $598,178) — See accompanying schedule: Unaffiliated issuers (cost $5,202,039) | $7,643,961 | |
Fidelity Central Funds (cost $775,947) | 775,947 | |
Other affiliated issuers (cost $66,031) | 58,222 | |
Total Investment in Securities (cost $6,044,017) | $8,478,130 | |
Receivable for investments sold | 2,009 | |
Receivable for fund shares sold | 8,456 | |
Dividends receivable | 3,389 | |
Distributions receivable from Fidelity Central Funds | 455 | |
Prepaid expenses | 10 | |
Other receivables | 79 | |
Total assets | 8,492,528 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $4,300 | |
Delayed delivery | 709 | |
Payable for fund shares redeemed | 3,103 | |
Accrued management fee | 4,026 | |
Distribution and service plan fees payable | 1,505 | |
Other affiliated payables | 991 | |
Other payables and accrued expenses | 3,431 | |
Collateral on securities loaned | 614,651 | |
Total liabilities | 632,716 | |
Net Assets | $7,859,812 | |
Net Assets consist of: | ||
Paid in capital | $5,130,194 | |
Total accumulated earnings (loss) | 2,729,618 | |
Net Assets | $7,859,812 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($1,349,229 ÷ 14,990.63 shares)(a) | $90.00 | |
Maximum offering price per share (100/94.25 of $90.00) | $95.49 | |
Class M: | ||
Net Asset Value and redemption price per share ($2,094,190 ÷ 23,523.32 shares)(a) | $89.03 | |
Maximum offering price per share (100/96.50 of $89.03) | $92.26 | |
Class C: | ||
Net Asset Value and offering price per share ($482,832 ÷ 6,311.24 shares)(a) | $76.50 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($2,819,240 ÷ 28,897.86 shares) | $97.56 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($1,114,321 ÷ 11,319.90 shares) | $98.44 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2019 | |
Investment Income | ||
Dividends | $34,200 | |
Non-Cash dividends | 11,238 | |
Income from Fidelity Central Funds (including $3,655 from security lending) | 5,936 | |
Total income | 51,374 | |
Expenses | ||
Management fee | ||
Basic fee | $31,166 | |
Performance adjustment | 6,639 | |
Transfer agent fees | 8,981 | |
Distribution and service plan fees | 15,530 | |
Accounting and security lending fees | 1,136 | |
Custodian fees and expenses | 146 | |
Independent trustees' fees and expenses | 31 | |
Registration fees | 380 | |
Audit | 79 | |
Legal | 13 | |
Interest | 6 | |
Miscellaneous | 29 | |
Total expenses before reductions | 64,136 | |
Expense reductions | (151) | |
Total expenses after reductions | 63,985 | |
Net investment income (loss) | (12,611) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 420,520 | |
Redemptions in-kind with affiliated entities | 37,752 | |
Fidelity Central Funds | (6) | |
Other affiliated issuers | (39,541) | |
Foreign currency transactions | (96) | |
Total net realized gain (loss) | 418,629 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $2,828) | 1,086,793 | |
Other affiliated issuers | (8,418) | |
Assets and liabilities in foreign currencies | (2) | |
Total change in net unrealized appreciation (depreciation) | 1,078,373 | |
Net gain (loss) | 1,497,002 | |
Net increase (decrease) in net assets resulting from operations | $1,484,391 |
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, 2019 | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(12,611) | $(14,109) |
Net realized gain (loss) | 418,629 | 421,232 |
Change in net unrealized appreciation (depreciation) | 1,078,373 | 166,656 |
Net increase (decrease) in net assets resulting from operations | 1,484,391 | 573,779 |
Distributions to shareholders | (375,736) | (214,543) |
Share transactions - net increase (decrease) | 3,226,621 | 138,173 |
Total increase (decrease) in net assets | 4,335,276 | 497,409 |
Net Assets | ||
Beginning of period | 3,524,536 | 3,027,127 |
End of period | $7,859,812 | $3,524,536 |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $76.87 | $68.76 | $58.24 | $66.87 | $63.52 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.18)B | (.25) | .04 | .07 | (.08) |
Net realized and unrealized gain (loss) | 21.21 | 13.33 | 17.86 | (1.46) | 3.43 |
Total from investment operations | 21.03 | 13.08 | 17.90 | (1.39) | 3.35 |
Distributions from net realized gain | (7.90) | (4.97) | (7.38) | (7.24) | – |
Total distributions | (7.90) | (4.97) | (7.38) | (7.24) | – |
Net asset value, end of period | $90.00 | $76.87 | $68.76 | $58.24 | $66.87 |
Total ReturnC,D | 31.29% | 20.35% | 34.64% | (2.37)% | 5.27% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.11% | 1.05% | .91% | .86% | 1.05% |
Expenses net of fee waivers, if any | 1.11% | 1.05% | .91% | .86% | 1.05% |
Expenses net of all reductions | 1.10% | 1.05% | .91% | .86% | 1.05% |
Net investment income (loss) | (.22)%B | (.33)% | .06% | .13% | (.12)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $1,349 | $673 | $540 | $502 | $664 |
Portfolio turnover rateG | 37%H | 46% | 52% | 66% | 51% |
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 (.42) %.
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 Growth Opportunities Fund Class M
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $76.28 | $68.27 | $57.99 | $66.75 | $63.55 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.37)B | (.41) | (.10) | (.06) | (.23) |
Net realized and unrealized gain (loss) | 21.02 | 13.24 | 17.76 | (1.46) | 3.43 |
Total from investment operations | 20.65 | 12.83 | 17.66 | (1.52) | 3.20 |
Distributions from net realized gain | (7.90) | (4.82) | (7.38) | (7.24) | – |
Total distributions | (7.90) | (4.82) | (7.38) | (7.24) | – |
Net asset value, end of period | $89.03 | $76.28 | $68.27 | $57.99 | $66.75 |
Total ReturnC,D | 31.01% | 20.07% | 34.34% | (2.59)% | 5.04% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.34% | 1.28% | 1.14% | 1.09% | 1.28% |
Expenses net of fee waivers, if any | 1.34% | 1.28% | 1.14% | 1.09% | 1.28% |
Expenses net of all reductions | 1.34% | 1.28% | 1.13% | 1.09% | 1.28% |
Net investment income (loss) | (.46)%B | (.57)% | (.17)% | (.10)% | (.35)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $2,094 | $1,671 | $1,492 | $1,250 | $1,461 |
Portfolio turnover rateG | 37%H | 46% | 52% | 66% | 51% |
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 (.65) %.
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 Growth Opportunities Fund Class C
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $67.03 | $60.60 | $52.52 | $61.42 | $58.78 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.67)B | (.70) | (.37) | (.32) | (.52) |
Net realized and unrealized gain (loss) | 18.04 | 11.68 | 15.83 | (1.34) | 3.16 |
Total from investment operations | 17.37 | 10.98 | 15.46 | (1.66) | 2.64 |
Distributions from net realized gain | (7.90) | (4.55) | (7.38) | (7.24) | – |
Total distributions | (7.90) | (4.55) | (7.38) | (7.24) | – |
Net asset value, end of period | $76.50 | $67.03 | $60.60 | $52.52 | $61.42 |
Total ReturnC,D | 30.31% | 19.44% | 33.64% | (3.10)% | 4.49% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.86% | 1.81% | 1.66% | 1.61% | 1.80% |
Expenses net of fee waivers, if any | 1.86% | 1.81% | 1.66% | 1.61% | 1.80% |
Expenses net of all reductions | 1.86% | 1.80% | 1.66% | 1.61% | 1.80% |
Net investment income (loss) | (.98)%B | (1.09)% | (.69)% | (.62)% | (.87)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $483 | $244 | $201 | $178 | $238 |
Portfolio turnover rateG | 37%H | 46% | 52% | 66% | 51% |
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 (1.17) %.
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 Growth Opportunities Fund Class I
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $82.42 | $73.38 | $61.52 | $70.05 | $66.35 |
Income from Investment Operations | |||||
Net investment income (loss)A | .03B | (.05) | .22 | .25 | .11 |
Net realized and unrealized gain (loss) | 23.01 | 14.25 | 19.02 | (1.54) | 3.59 |
Total from investment operations | 23.04 | 14.20 | 19.24 | (1.29) | 3.70 |
Distributions from net realized gain | (7.90) | (5.16) | (7.38) | (7.24) | – |
Total distributions | (7.90) | (5.16) | (7.38) | (7.24) | – |
Net asset value, end of period | $97.56 | $82.42 | $73.38 | $61.52 | $70.05 |
Total ReturnC | 31.66% | 20.67% | 35.01% | (2.09)% | 5.58% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .84% | .78% | .63% | .58% | .77% |
Expenses net of fee waivers, if any | .84% | .78% | .63% | .58% | .77% |
Expenses net of all reductions | .84% | .78% | .63% | .58% | .77% |
Net investment income (loss) | .04%B | (.06)% | .34% | .41% | .16% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $2,819 | $850 | $642 | $562 | $1,061 |
Portfolio turnover rateF | 37%G | 46% | 52% | 66% | 51% |
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 $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.15) %.
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.
Fidelity Advisor Growth Opportunities Fund Class Z
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $83.00 | $73.88 | $61.82 | $70.27 | $66.48 |
Income from Investment Operations | |||||
Net investment income (loss)A | .14B | .04 | .32 | .33 | .20 |
Net realized and unrealized gain (loss) | 23.20 | 14.35 | 19.12 | (1.54) | 3.59 |
Total from investment operations | 23.34 | 14.39 | 19.44 | (1.21) | 3.79 |
Distributions from net investment income | – | (.05) | – | – | – |
Distributions from net realized gain | (7.90) | (5.22) | (7.38) | (7.24) | – |
Total distributions | (7.90) | (5.27) | (7.38) | (7.24) | – |
Net asset value, end of period | $98.44 | $83.00 | $73.88 | $61.82 | $70.27 |
Total ReturnC | 31.81% | 20.82% | 35.18% | (1.96)% | 5.70% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .72% | .66% | .51% | .45% | .64% |
Expenses net of fee waivers, if any | .72% | .66% | .50% | .45% | .64% |
Expenses net of all reductions | .72% | .65% | .50% | .45% | .64% |
Net investment income (loss) | .16%B | .06% | .47% | .54% | .29% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $1,114 | $88 | $152 | $7 | $5 |
Portfolio turnover rateF | 37%G | 46% | 52% | 66% | 51% |
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 $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.03)%.
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, 2019
(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. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
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 ranged from less than .005% to .01%.
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. 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, income approach and cost approach and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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 | $129,409 | Market comparable | Enterprise value/Sales multiple (EV/S) | 0.4 - 8.4 / 7.2 | Increase |
Transaction price | $0.77 | Increase | |||
Discount rate | 10.0% - 44.1% / 10.4% | Decrease | |||
Discount for lack of marketability | 10.00% | Decrease | |||
Premium rate | 15.5% - 20.0% / 20.0% | Increase | |||
Market approach | Transaction price | $0.00 - $237.86 / $34.27 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
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, 2019, 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Non-cash dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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 $64 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, 2019, 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, redemptions in kind, deferred trustees compensation, net operating losses, certain foreign taxes, 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 | $2,550,365 |
Gross unrealized depreciation | (129,682) |
Net unrealized appreciation (depreciation) | $2,420,683 |
Tax Cost | $6,057,447 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $317,448 |
Net unrealized appreciation (depreciation) on securities and other investments | $2,420,680 |
The Fund intends to elect to defer to its next fiscal year $5,209 of ordinary losses recognized during the period January 1, 2019 to November 30, 2019.
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $– | $ 32,569 |
Long-term Capital Gains | 375,736 | 181,974 |
Total | $375,736 | $ 214,543 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $5,013,969 and $2,112,130, 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 .65% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $2,575 | $122 |
Class M | .25% | .25% | 9,475 | 228 |
Class C | .75% | .25% | 3,480 | 1,190 |
$15,530 | $1,540 |
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 | $1,156 |
Class M | 163 |
Class C(a) | 76 |
$1,395 |
(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 | $1,858 | .18 |
Class M | 3,145 | .17 |
Class C | 647 | .18 |
Class I | 2,995 | .17 |
Class Z | 336 | .05 |
$8,981 |
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. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .02%.
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Growth Opportunities Fund | $89 |
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 | $37,421 | 1.84% | $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.
Affiliated Redemptions In-Kind. During the period, 714 shares of the Fund were redeemed in-kind for investments and cash with a value of $63,177. The net realized gain of $37,752 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
The Fund participates with other funds managed by 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 $13 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 from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower, at period end was $375. Total fees paid by the Fund to NFS, as lending agent, amounted to $300. 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 $194 from securities loaned to NFS, as affiliated borrower.
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 $114 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, custodian credits reduced the Fund's expenses by $9.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $28.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Class A | $69,056 | $38,843 |
Class M | 172,195 | 104,766 |
Class C | 28,420 | 14,984 |
Class I | 81,919 | 45,003 |
Class Z | 24,146 | 10,947 |
Total | $375,736 | $214,543 |
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, 2019 | Year ended November 30, 2018 | Year ended November 30, 2019 | Year ended November 30, 2018 | |
Class A | ||||
Shares sold | 8,598 | 1,765 | $684,846 | $132,452 |
Reinvestment of distributions | 1,004 | 567 | 65,327 | 36,792 |
Shares redeemed | (3,360) | (1,443) | (270,268) | (104,059) |
Net increase (decrease) | 6,242 | 889 | $479,905 | $65,185 |
Class M | ||||
Shares sold | 2,869 | 2,091 | $223,333 | $152,273 |
Reinvestment of distributions | 2,574 | 1,564 | 165,967 | 100,981 |
Shares redeemed | (3,822) | (3,604) | (299,591) | (258,947) |
Net increase (decrease) | 1,621 | 51 | $89,709 | $(5,693) |
Class C | ||||
Shares sold | 4,254 | 889 | $289,250 | $58,616 |
Reinvestment of distributions | 482 | 240 | 26,865 | 13,699 |
Shares redeemed | (2,061) | (811) | (139,159) | (51,367) |
Net increase (decrease) | 2,675 | 318 | $176,956 | $20,948 |
Class I | ||||
Shares sold | 25,181 | 3,407 | $2,186,583 | $274,660 |
Reinvestment of distributions | 845 | 448 | 59,435 | 31,123 |
Shares redeemed | (7,438)(a) | (2,298) | (646,852)(a) | (178,161) |
Net increase (decrease) | 18,588 | 1,557 | $1,599,166 | $127,622 |
Class Z | ||||
Shares sold | 13,616 | 1,090 | $1,190,747 | $88,159 |
Reinvestment of distributions | 324 | 150 | 22,945 | 10,497 |
Shares redeemed | (3,679) | (2,233) | (332,807) | (168,545) |
Net increase (decrease) | 10,261 | (993) | $880,885 | $(69,889) |
(a) Amount includes in-kind redemptions (see the Affiliated Redemptions In-Kind note for additional details).
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. (FIIOC) converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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, 2019, 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, 2019, 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, 2019, 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 13, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Class A | 1.09% | |||
Actual | $1,000.00 | $1,166.60 | $5.92 | |
Hypothetical-C | $1,000.00 | $1,019.60 | $5.52 | |
Class M | 1.32% | |||
Actual | $1,000.00 | $1,165.30 | $7.17 | |
Hypothetical-C | $1,000.00 | $1,018.45 | $6.68 | |
Class C | 1.85% | |||
Actual | $1,000.00 | $1,162.10 | $10.03 | |
Hypothetical-C | $1,000.00 | $1,015.79 | $9.35 | |
Class I | .84% | |||
Actual | $1,000.00 | $1,168.10 | $4.57 | |
Hypothetical-C | $1,000.00 | $1,020.86 | $4.26 | |
Class Z | .72% | |||
Actual | $1,000.00 | $1,168.80 | $3.91 | |
Hypothetical-C | $1,000.00 | $1,021.46 | $3.65 |
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 | 12/30/19 | 12/27/19 | $0.000 | $3.641 |
Class M | 12/30/19 | 12/27/19 | $0.000 | $3.641 |
Class C | 12/30/19 | 12/27/19 | $0.000 | $3.641 |
Class I | 12/30/19 | 12/27/19 | $0.000 | $3.641 |
Class Z | 12/30/19 | 12/27/19 | $0.000 | $3.641 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019, $383,299,325 or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Growth Opportunities Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.GO-ANN-0120
1.704314.122
Fidelity Advisor® Growth & Income Fund
Annual Report
November 30, 2019
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See the inside front cover for important information about access to your fund’s shareholder reports.
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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
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 7.12% | 7.10% | 11.33% |
Class M (incl. 3.50% sales charge) | 9.36% | 7.34% | 11.33% |
Class C (incl. contingent deferred sales charge) | 11.76% | 7.56% | 11.16% |
Class I | 13.89% | 8.66% | 12.33% |
Class Z | 14.11% | 8.75% | 12.38% |
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 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, 2009, 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/0001379491-20-000191/img552792118_740.jpg)
Period Ending Values | ||
$29,261 | Fidelity Advisor® Growth & Income Fund - Class A | |
$35,289 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Portfolio Manager Matthew Fruhan: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) gained roughly 13% to 14%, trailing the benchmark S&P 500® index. Versus the benchmark, sector positioning detracted most, especially a large overweight in energy, by far the weakest category this period, and an underweight in information technology, which led the market. The fund's higher-than-usual cash position also detracted. The biggest individual relative detractor – and one of our largest holdings on November 30 – was integrated energy company Exxon Mobil (-10%), which struggled along with a sluggish price of oil. Another big individual detractor was Altria Group (-3%), another large holding. Concern about the company's ownership in e-cigarette manufacturer Juul Labs hurt Altria's shares, given new concerns about the health impact of Juul's product. In contrast, the fund's biggest contributor was industrial conglomerate General Electric (+56%), by far our largest holding on November 30 and a stock that I believed was significantly undervalued. Semiconductor and telecommunication equipment firm Qualcomm (+50%) was another contributor, benefiting after resolving a licensing dispute with Apple. Lacking exposure to benchmark component Amazon.com (+7%) also helped, as the online retailer's shares were up about 7% the past year.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, 2019
% of fund's net assets | |
General Electric Co. | 6.0 |
Microsoft Corp.(a) | 4.8 |
Exxon Mobil Corp. | 4.6 |
Comcast Corp. Class A | 3.8 |
Altria Group, Inc. | 3.7 |
Wells Fargo & Co. | 3.1 |
Bank of America Corp.(a) | 2.8 |
Bristol-Myers Squibb Co. | 2.4 |
JPMorgan Chase & Co.(a) | 2.3 |
Apple, Inc. | 2.3 |
35.8 |
(a) Security or a portion of the security is pledged as collateral for call options written.
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Health Care | 18.1 |
Financials | 17.9 |
Industrials | 14.9 |
Information Technology | 14.1 |
Consumer Staples | 9.4 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019*,** | ||
Stocks | 94.9% | |
Convertible Securities | 0.4% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.6% |
* Foreign investments - 10.7%
** Written options - (0.1)%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 94.9% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 8.2% | |||
Diversified Telecommunication Services - 1.5% | |||
AT&T, Inc. (a) | 15,354 | $574 | |
Verizon Communications, Inc. | 125,609 | 7,567 | |
8,141 | |||
Entertainment - 1.6% | |||
Activision Blizzard, Inc. | 42,600 | 2,336 | |
The Walt Disney Co. | 15,600 | 2,365 | |
Vivendi SA | 157,400 | 4,322 | |
9,023 | |||
Interactive Media & Services - 0.4% | |||
Alphabet, Inc.: | |||
Class A (b) | 953 | 1,243 | |
Class C (b) | 913 | 1,191 | |
2,434 | |||
Media - 4.7% | |||
Comcast Corp. Class A | 479,958 | 21,190 | |
Interpublic Group of Companies, Inc. | 99,400 | 2,227 | |
Omnicom Group, Inc. | 8,300 | 660 | |
Sinclair Broadcast Group, Inc. Class A | 49,100 | 1,710 | |
25,787 | |||
TOTAL COMMUNICATION SERVICES | 45,385 | ||
CONSUMER DISCRETIONARY - 1.6% | |||
Household Durables - 0.3% | |||
Mohawk Industries, Inc. (b) | 200 | 28 | |
Whirlpool Corp. | 11,800 | 1,689 | |
1,717 | |||
Leisure Products - 0.0% | |||
Brunswick Corp. | 300 | 18 | |
Specialty Retail - 1.1% | |||
Lowe's Companies, Inc. (a) | 38,557 | 4,523 | |
TJX Companies, Inc. | 22,040 | 1,347 | |
5,870 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Puma AG | 806 | 61 | |
PVH Corp. | 9,300 | 902 | |
Tapestry, Inc. | 6,300 | 169 | |
1,132 | |||
TOTAL CONSUMER DISCRETIONARY | 8,737 | ||
CONSUMER STAPLES - 9.4% | |||
Beverages - 1.1% | |||
The Coca-Cola Co. | 117,984 | 6,300 | |
Food & Staples Retailing - 1.9% | |||
Walgreens Boots Alliance, Inc. | 35,700 | 2,128 | |
Walmart, Inc. (a) | 70,410 | 8,385 | |
10,513 | |||
Food Products - 0.4% | |||
Nestle SA sponsored ADR | 18,700 | 1,944 | |
Household Products - 1.3% | |||
Colgate-Palmolive Co. | 5,400 | 366 | |
Energizer Holdings, Inc. | 11,700 | 584 | |
Procter & Gamble Co. (a) | 39,435 | 4,813 | |
Spectrum Brands Holdings, Inc. | 26,800 | 1,676 | |
7,439 | |||
Tobacco - 4.7% | |||
Altria Group, Inc. | 413,720 | 20,562 | |
British American Tobacco PLC sponsored ADR | 100,180 | 3,968 | |
Philip Morris International, Inc. | 22,461 | 1,863 | |
26,393 | |||
TOTAL CONSUMER STAPLES | 52,589 | ||
ENERGY - 8.2% | |||
Energy Equipment & Services - 0.1% | |||
Schlumberger Ltd. | 11,100 | 402 | |
Oil, Gas & Consumable Fuels - 8.1% | |||
Cenovus Energy, Inc. | 3,000 | 27 | |
Cenovus Energy, Inc. (Canada) | 820,900 | 7,311 | |
Equinor ASA sponsored ADR | 274,600 | 5,088 | |
Exxon Mobil Corp. | 372,200 | 25,358 | |
Hess Corp. | 76,300 | 4,737 | |
Kosmos Energy Ltd. | 391,600 | 2,338 | |
Noble Energy, Inc. | 8,800 | 183 | |
45,042 | |||
TOTAL ENERGY | 45,444 | ||
FINANCIALS - 17.9% | |||
Banks - 12.3% | |||
Bank of America Corp.(a) | 466,842 | 15,555 | |
Citigroup, Inc. (a) | 38,927 | 2,924 | |
First Hawaiian, Inc. | 15,600 | 445 | |
JPMorgan Chase & Co. (a) | 99,043 | 13,050 | |
M&T Bank Corp. | 6,600 | 1,087 | |
PNC Financial Services Group, Inc. | 46,616 | 7,142 | |
SunTrust Banks, Inc. | 85,135 | 6,031 | |
U.S. Bancorp | 79,630 | 4,780 | |
Wells Fargo & Co. | 322,250 | 17,550 | |
68,564 | |||
Capital Markets - 4.3% | |||
Apollo Global Management LLC Class A | 1,300 | 57 | |
Brookfield Asset Management, Inc. | 20,801 | 1,215 | |
Cboe Global Markets, Inc. | 3,610 | 429 | |
Charles Schwab Corp. | 26,113 | 1,293 | |
FS KKR Capital Corp. | 3,600 | 23 | |
KKR & Co. LP | 71,313 | 2,103 | |
Morgan Stanley | 35,430 | 1,753 | |
Northern Trust Corp. | 77,937 | 8,358 | |
Raymond James Financial, Inc. | 12,100 | 1,087 | |
S&P Global, Inc. | 200 | 53 | |
State Street Corp. | 95,770 | 7,192 | |
Virtu Financial, Inc. Class A | 8,526 | 142 | |
23,705 | |||
Consumer Finance - 0.0% | |||
Shriram Transport Finance Co. Ltd. | 14,100 | 222 | |
Insurance - 1.0% | |||
Chubb Ltd. | 14,700 | 2,227 | |
Marsh & McLennan Companies, Inc. | 16,966 | 1,834 | |
The Travelers Companies, Inc. | 8,800 | 1,203 | |
5,264 | |||
Thrifts & Mortgage Finance - 0.3% | |||
Radian Group, Inc. | 59,490 | 1,537 | |
TOTAL FINANCIALS | 99,292 | ||
HEALTH CARE - 17.7% | |||
Biotechnology - 2.0% | |||
AbbVie, Inc. | 29,300 | 2,570 | |
Alexion Pharmaceuticals, Inc. (b) | 27,800 | 3,168 | |
Amgen, Inc. | 13,200 | 3,098 | |
Intercept Pharmaceuticals, Inc. (b) | 19,495 | 2,113 | |
10,949 | |||
Health Care Equipment & Supplies - 0.3% | |||
Becton, Dickinson & Co. | 4,200 | 1,086 | |
Boston Scientific Corp. (b) | 14,500 | 627 | |
1,713 | |||
Health Care Providers & Services - 7.5% | |||
AmerisourceBergen Corp. | 40,000 | 3,516 | |
Cardinal Health, Inc. | 81,800 | 4,501 | |
Cigna Corp. | 35,600 | 7,117 | |
CVS Health Corp. (a) | 160,851 | 12,107 | |
McKesson Corp. | 43,633 | 6,311 | |
Patterson Companies, Inc. | 57,900 | 1,127 | |
UnitedHealth Group, Inc. | 24,900 | 6,969 | |
41,648 | |||
Pharmaceuticals - 7.9% | |||
Bayer AG | 116,073 | 8,766 | |
Bristol-Myers Squibb Co. | 234,900 | 13,375 | |
GlaxoSmithKline PLC sponsored ADR (a) | 221,309 | 10,065 | |
Johnson & Johnson | 87,201 | 11,989 | |
Novartis AG sponsored ADR | 601 | 55 | |
44,250 | |||
TOTAL HEALTH CARE | 98,560 | ||
INDUSTRIALS - 14.9% | |||
Aerospace & Defense - 1.5% | |||
General Dynamics Corp. | 13,000 | 2,363 | |
Huntington Ingalls Industries, Inc. | 6,400 | 1,611 | |
Meggitt PLC | 353 | 3 | |
The Boeing Co. | 1,900 | 696 | |
United Technologies Corp. | 25,231 | 3,743 | |
8,416 | |||
Air Freight & Logistics - 2.1% | |||
C.H. Robinson Worldwide, Inc. | 6,500 | 500 | |
Expeditors International of Washington, Inc. | 800 | 60 | |
FedEx Corp. | 6,900 | 1,104 | |
United Parcel Service, Inc. Class B (a) | 84,979 | 10,175 | |
11,839 | |||
Commercial Services & Supplies - 0.6% | |||
Healthcare Services Group, Inc. (c) | 53,000 | 1,333 | |
Interface, Inc. | 63,300 | 1,063 | |
Ritchie Bros. Auctioneers, Inc. | 1,700 | 73 | |
Stericycle, Inc. (b) | 10,525 | 661 | |
3,130 | |||
Electrical Equipment - 0.6% | |||
Acuity Brands, Inc. | 9,400 | 1,229 | |
Hubbell, Inc. Class B | 13,212 | 1,942 | |
Rockwell Automation, Inc. | 1,900 | 372 | |
3,543 | |||
Industrial Conglomerates - 6.1% | |||
3M Co. | 2,400 | 407 | |
General Electric Co. | 2,958,093 | 33,333 | |
33,740 | |||
Machinery - 0.8% | |||
Donaldson Co., Inc. | 18,900 | 1,060 | |
Flowserve Corp. | 25,100 | 1,222 | |
Fortive Corp. | 800 | 58 | |
Westinghouse Air Brake Co. (a) | 23,231 | 1,825 | |
4,165 | |||
Professional Services - 0.5% | |||
RELX PLC (London Stock Exchange) | 110,796 | 2,684 | |
Robert Half International, Inc. | 1,800 | 105 | |
2,789 | |||
Road & Rail - 2.0% | |||
J.B. Hunt Transport Services, Inc. (a) | 32,720 | 3,783 | |
Knight-Swift Transportation Holdings, Inc. Class A | 118,600 | 4,387 | |
Union Pacific Corp. | 17,500 | 3,080 | |
11,250 | |||
Trading Companies & Distributors - 0.7% | |||
Fastenal Co. | 15,200 | 540 | |
MSC Industrial Direct Co., Inc. Class A | 700 | 51 | |
Watsco, Inc. | 19,564 | 3,482 | |
4,073 | |||
TOTAL INDUSTRIALS | 82,945 | ||
INFORMATION TECHNOLOGY - 14.1% | |||
Communications Equipment - 0.2% | |||
Cisco Systems, Inc. | 22,571 | 1,023 | |
IT Services - 2.3% | |||
Genpact Ltd. | 17,200 | 700 | |
IBM Corp. | 12,500 | 1,681 | |
MasterCard, Inc. Class A | 190 | 56 | |
Paychex, Inc. | 9,209 | 793 | |
Unisys Corp. (b) | 72,692 | 827 | |
Visa, Inc. Class A (a) | 46,140 | 8,513 | |
12,570 | |||
Semiconductors & Semiconductor Equipment - 2.6% | |||
Analog Devices, Inc. | 6,300 | 712 | |
Applied Materials, Inc. | 28,595 | 1,656 | |
Marvell Technology Group Ltd. | 14,500 | 382 | |
NVIDIA Corp. | 300 | 65 | |
Qualcomm, Inc. | 136,498 | 11,404 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 8,500 | 451 | |
14,670 | |||
Software - 6.7% | |||
Microsoft Corp. (a) | 174,373 | 26,397 | |
Oracle Corp. | 83,484 | 4,687 | |
SAP SE sponsored ADR | 44,700 | 6,077 | |
37,161 | |||
Technology Hardware, Storage & Peripherals - 2.3% | |||
Apple, Inc. | 48,573 | 12,981 | |
TOTAL INFORMATION TECHNOLOGY | 78,405 | ||
MATERIALS - 0.9% | |||
Chemicals - 0.7% | |||
Corteva, Inc. | 22,300 | 580 | |
International Flavors & Fragrances, Inc. | 4,900 | 692 | |
Nutrien Ltd. | 45,380 | 2,153 | |
The Scotts Miracle-Gro Co. Class A (a) | 5,300 | 536 | |
3,961 | |||
Metals & Mining - 0.2% | |||
BHP Billiton Ltd. sponsored ADR (c) | 24,300 | 1,252 | |
TOTAL MATERIALS | 5,213 | ||
REAL ESTATE - 1.3% | |||
Equity Real Estate Investment Trusts (REITs) - 1.3% | |||
American Tower Corp. | 9,700 | 2,076 | |
CoreSite Realty Corp. | 10,300 | 1,168 | |
Equinix, Inc. (a) | 3,910 | 2,216 | |
Public Storage | 3,400 | 716 | |
Simon Property Group, Inc. | 5,900 | 892 | |
7,068 | |||
UTILITIES - 0.7% | |||
Electric Utilities - 0.5% | |||
Duke Energy Corp. | 11,200 | 988 | |
Edison International | 2,500 | 173 | |
Exelon Corp. | 11,800 | 524 | |
PPL Corp. | 31,200 | 1,062 | |
Southern Co. | 1,100 | 68 | |
2,815 | |||
Multi-Utilities - 0.2% | |||
Sempra Energy | 6,600 | 972 | |
TOTAL UTILITIES | 3,787 | ||
TOTAL COMMON STOCKS | |||
(Cost $393,582) | 527,425 | ||
Convertible Preferred Stocks - 0.4% | |||
HEALTH CARE - 0.4% | |||
Health Care Equipment & Supplies - 0.3% | |||
Becton, Dickinson & Co. Series A, 6.125% | 26,900 | 1,673 | |
Life Sciences Tools & Services - 0.1% | |||
Avantor, Inc. Series A 6.25% | 5,100 | 307 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $1,790) | 1,980 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.0% | |||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Intercept Pharmaceuticals, Inc. 2% 5/15/26 | |||
(Cost $191) | 190 | 227 | |
Shares | Value (000s) | ||
Other - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Utica Shale Drilling Program (non-operating revenue interest) (d)(e)(f) | |||
(Cost $1,470) | 1,469,796 | 687 | |
Money Market Funds - 4.8% | |||
Fidelity Cash Central Fund 1.61% (g) | 25,752,483 | 25,758 | |
Fidelity Securities Lending Cash Central Fund 1.61% (g)(h) | 921,598 | 922 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $26,680) | 26,680 | ||
TOTAL INVESTMENT IN SECURITIES - 100.2% | |||
(Cost $423,713) | 556,999 | ||
NET OTHER ASSETS (LIABILITIES) - (0.2)% | (1,078) | ||
NET ASSETS - 100% | $555,921 |
Written Options | ||||||
Counterparty | Number of Contracts | Notional Amount (000s) | Exercise Price | Expiration Date | Value (000s) | |
Call Options | ||||||
AT&T, Inc. | Chicago Board Options Exchange | 146 | $546 | $40.00 | 1/17/20 | $(2) |
Bank of America Corp. | Chicago Board Options Exchange | 416 | 1,386 | 34.00 | 1/17/20 | (29) |
Citigroup, Inc. | Chicago Board Options Exchange | 38 | 285 | 80.00 | 1/17/20 | (3) |
CVS Health Corp. | Chicago Board Options Exchange | 76 | 572 | 75.00 | 12/20/19 | (12) |
Equinix, Inc. | Chicago Board Options Exchange | 4 | 227 | 570.00 | 12/20/19 | (4) |
Equinix, Inc. | Chicago Board Options Exchange | 4 | 227 | 580.00 | 12/20/19 | (2) |
Flowserve Corp. | Bank of America NA | 196 | 955 | 55.00 | 2/21/20 | (15) |
GlaxoSmithKline PLC | Chicago Board Options Exchange | 107 | 487 | 46.00 | 1/17/20 | (8) |
J.B. Hunt Transport Services, Inc. | Chicago Board Options Exchange | 50 | 578 | 125.00 | 2/21/20 | (11) |
JPMorgan Chase & Co. | Chicago Board Options Exchange | 152 | 2,003 | 120.00 | 12/20/19 | (184) |
JPMorgan Chase & Co. | Chicago Board Options Exchange | 152 | 2,003 | 115.00 | 12/20/19 | (256) |
JPMorgan Chase & Co. | Chicago Board Options Exchange | 44 | 580 | 130.00 | 1/17/20 | (19) |
JPMorgan Chase & Co. | Chicago Board Options Exchange | 44 | 580 | 135.00 | 1/17/20 | (8) |
Lowe's Companies, Inc. | Chicago Board Options Exchange | 19 | 223 | 120.00 | 1/17/20 | (5) |
Microsoft Corp. | Chicago Board Options Exchange | 82 | 1,241 | 155.00 | 1/17/20 | (19) |
Procter & Gamble Co. | Chicago Board Options Exchange | 37 | 452 | 125.00 | 3/20/20 | (13) |
Procter & Gamble Co. | Chicago Board Options Exchange | 37 | 452 | 130.00 | 3/20/20 | (6) |
Scotts Miracle-Gro Co. | Chicago Board Options Exchange | 25 | 253 | 115.00 | 12/20/19 | 0 |
Scotts Miracle-Gro Co. | Chicago Board Options Exchange | 25 | 253 | 120.00 | 12/20/19 | (1) |
United Parcel Service, Inc. | Chicago Board Options Exchange | 82 | 982 | 130.00 | 4/17/20 | (18) |
Visa, Inc. | Chicago Board Options Exchange | 19 | 351 | 190.00 | 1/17/20 | (5) |
Walmart, Inc. | Chicago Board Options Exchange | 31 | 369 | 125.00 | 1/17/20 | (2) |
Westinghouse Air Brake Co. | Chicago Board Options Exchange | 69 | 542 | 85.00 | 12/20/19 | (2) |
TOTAL WRITTEN OPTIONS | $(624) |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Security or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $14,592,000.
(b) Non-income producing
(c) Security or a portion of the security is on loan at period end.
(d) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(e) 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 $687,000 or 0.1% of net assets.
(f) Level 3 security
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
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 | $438 |
Fidelity Securities Lending Cash Central Fund | 9 |
Total | $447 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $45,385 | $45,385 | $-- | $-- |
Consumer Discretionary | 8,737 | 8,737 | -- | -- |
Consumer Staples | 52,589 | 52,589 | -- | -- |
Energy | 45,444 | 45,444 | -- | -- |
Financials | 99,292 | 99,292 | -- | -- |
Health Care | 100,540 | 89,794 | 10,746 | -- |
Industrials | 82,945 | 82,945 | -- | -- |
Information Technology | 78,405 | 78,405 | -- | -- |
Materials | 5,213 | 5,213 | -- | -- |
Real Estate | 7,068 | 7,068 | -- | -- |
Utilities | 3,787 | 3,787 | -- | -- |
Corporate Bonds | 227 | -- | 227 | -- |
Other | 687 | -- | -- | 687 |
Money Market Funds | 26,680 | 26,680 | -- | -- |
Total Investments in Securities: | $556,999 | $545,339 | $10,973 | $687 |
Derivative Instruments: | ||||
Liabilities | ||||
Written Options | $(624) | $(609) | $(15) | $-- |
Total Liabilities | $(624) | $(609) | $(15) | $-- |
Total Derivative Instruments: | $(624) | $(609) | $(15) | $-- |
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, 2019. 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 | $(624) |
Total Equity Risk | 0 | (624) |
Total Value of Derivatives | $0 | $(624) |
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 89.3% |
United Kingdom | 3.0% |
Germany | 2.7% |
Canada | 1.9% |
Others (Individually Less Than 1%) | 3.1% |
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, 2019 | |
Assets | ||
Investment in securities, at value (including securities loaned of $889) — See accompanying schedule: Unaffiliated issuers (cost $397,033) | $530,319 | |
Fidelity Central Funds (cost $26,680) | 26,680 | |
Total Investment in Securities (cost $423,713) | $556,999 | |
Restricted cash | 68 | |
Receivable for investments sold | 869 | |
Receivable for fund shares sold | 532 | |
Dividends receivable | 1,332 | |
Distributions receivable from Fidelity Central Funds | 32 | |
Prepaid expenses | 1 | |
Other receivables | 3 | |
Total assets | 559,836 | |
Liabilities | ||
Payable for investments purchased | $919 | |
Payable for fund shares redeemed | 922 | |
Accrued management fee | 200 | |
Distribution and service plan fees payable | 165 | |
Written options, at value (premium received $295) | 624 | |
Other affiliated payables | 101 | |
Other payables and accrued expenses | 60 | |
Collateral on securities loaned | 924 | |
Total liabilities | 3,915 | |
Net Assets | $555,921 | |
Net Assets consist of: | ||
Paid in capital | $388,442 | |
Total accumulated earnings (loss) | 167,479 | |
Net Assets | $555,921 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($287,997 ÷ 10,170 shares)(a) | $28.32 | |
Maximum offering price per share (100/94.25 of $28.32) | $30.05 | |
Class M: | ||
Net Asset Value and redemption price per share ($172,388 ÷ 6,089 shares)(a) | $28.31 | |
Maximum offering price per share (100/96.50 of $28.31) | $29.34 | |
Class C: | ||
Net Asset Value and offering price per share ($40,517 ÷ 1,545 shares)(a) | $26.22 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($47,747 ÷ 1,646 shares) | $29.01 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($7,272 ÷ 250 shares) | $29.09 |
(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, 2019 | |
Investment Income | ||
Dividends | $14,697 | |
Interest | 26 | |
Income from Fidelity Central Funds (including $9 from security lending) | 447 | |
Total income | 15,170 | |
Expenses | ||
Management fee | $2,302 | |
Transfer agent fees | 1,027 | |
Distribution and service plan fees | 1,958 | |
Accounting and security lending fees | 202 | |
Custodian fees and expenses | 27 | |
Independent trustees' fees and expenses | 3 | |
Registration fees | 80 | |
Audit | 64 | |
Legal | 6 | |
Miscellaneous | 5 | |
Total expenses before reductions | 5,674 | |
Expense reductions | (16) | |
Total expenses after reductions | 5,658 | |
Net investment income (loss) | 9,512 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 32,258 | |
Foreign currency transactions | (1) | |
Written options | 354 | |
Total net realized gain (loss) | 32,611 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $2) | 23,002 | |
Assets and liabilities in foreign currencies | 1 | |
Written options | (361) | |
Total change in net unrealized appreciation (depreciation) | 22,642 | |
Net gain (loss) | 55,253 | |
Net increase (decrease) in net assets resulting from operations | $64,765 |
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, 2019 | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $9,512 | $8,015 |
Net realized gain (loss) | 32,611 | 61,138 |
Change in net unrealized appreciation (depreciation) | 22,642 | (49,485) |
Net increase (decrease) in net assets resulting from operations | 64,765 | 19,668 |
Distributions to shareholders | (62,774) | (50,628) |
Share transactions - net increase (decrease) | (7,551) | (3,254) |
Total increase (decrease) in net assets | (5,560) | (34,214) |
Net Assets | ||
Beginning of period | 561,481 | 595,695 |
End of period | $555,921 | $561,481 |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.69 | $30.29 | $26.89 | $26.36 | $28.95 |
Income from Investment Operations | |||||
Net investment income (loss)A | .49 | .43 | .41 | .37 | .42 |
Net realized and unrealized gain (loss) | 2.48 | .58 | 3.83 | 2.12 | (.76)B |
Total from investment operations | 2.97 | 1.01 | 4.24 | 2.49 | (.34) |
Distributions from net investment income | (.47) | (.36) | (.39)C | (.39) | (.36) |
Distributions from net realized gain | (2.87) | (2.26) | (.45)C | (1.57) | (1.88) |
Total distributions | (3.34) | (2.61)D | (.84) | (1.96) | (2.25)E |
Net asset value, end of period | $28.32 | $28.69 | $30.29 | $26.89 | $26.36 |
Total ReturnF,G | 13.65% | 3.42% | 16.15% | 10.59% | (.96)%B |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .96% | .96% | .97% | .99% | .99% |
Expenses net of fee waivers, if any | .96% | .96% | .97% | .99% | .98% |
Expenses net of all reductions | .95% | .95% | .97% | .99% | .98% |
Net investment income (loss) | 1.93% | 1.49% | 1.47% | 1.51% | 1.57% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $288 | $243 | $255 | $253 | $244 |
Portfolio turnover rateJ | 29% | 40% | 36% | 31% | 35% |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.67 | $30.26 | $26.87 | $26.32 | $28.91 |
Income from Investment Operations | |||||
Net investment income (loss)A | .43 | .36 | .34 | .31 | .35 |
Net realized and unrealized gain (loss) | 2.47 | .59 | 3.82 | 2.12 | (.76)B |
Total from investment operations | 2.90 | .95 | 4.16 | 2.43 | (.41) |
Distributions from net investment income | (.39) | (.28) | (.32)C | (.32) | (.29) |
Distributions from net realized gain | (2.87) | (2.26) | (.45)C | (1.57) | (1.88) |
Total distributions | (3.26) | (2.54) | (.77) | (1.88)D | (2.18)E |
Net asset value, end of period | $28.31 | $28.67 | $30.26 | $26.87 | $26.32 |
Total ReturnF,G | 13.33% | 3.19% | 15.85% | 10.36% | (1.22)%B |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.21% | 1.21% | 1.23% | 1.24% | 1.23% |
Expenses net of fee waivers, if any | 1.21% | 1.21% | 1.22% | 1.24% | 1.23% |
Expenses net of all reductions | 1.20% | 1.20% | 1.22% | 1.24% | 1.23% |
Net investment income (loss) | 1.68% | 1.24% | 1.22% | 1.26% | 1.32% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $172 | $175 | $186 | $176 | $180 |
Portfolio turnover rateJ | 29% | 40% | 36% | 31% | 35% |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $26.79 | $28.45 | $25.33 | $24.92 | $27.51 |
Income from Investment Operations | |||||
Net investment income (loss)A | .27 | .20 | .19 | .17 | .21 |
Net realized and unrealized gain (loss) | 2.28 | .55 | 3.60 | 2.01 | (.73)B |
Total from investment operations | 2.55 | .75 | 3.79 | 2.18 | (.52) |
Distributions from net investment income | (.26) | (.15) | (.22)C | (.21) | (.18) |
Distributions from net realized gain | (2.87) | (2.26) | (.45)C | (1.57) | (1.88) |
Total distributions | (3.12)D | (2.41) | (.67) | (1.77)E | (2.07)F |
Net asset value, end of period | $26.22 | $26.79 | $28.45 | $25.33 | $24.92 |
Total ReturnG,H | 12.74% | 2.64% | 15.28% | 9.81% | (1.74)%B |
Ratios to Average Net AssetsI,J | |||||
Expenses before reductions | 1.73% | 1.72% | 1.73% | 1.74% | 1.73% |
Expenses net of fee waivers, if any | 1.73% | 1.71% | 1.73% | 1.74% | 1.73% |
Expenses net of all reductions | 1.73% | 1.71% | 1.72% | 1.74% | 1.73% |
Net investment income (loss) | 1.15% | .73% | .72% | .76% | .82% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $41 | $75 | $86 | $80 | $79 |
Portfolio turnover rateK | 29% | 40% | 36% | 31% | 35% |
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 $3.12 per share is comprised of distributions from net investment income of $.255 and distributions from net realized gain of $2.869 per share.
E 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.
F 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.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the contingent deferred sales charge.
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.
Fidelity Advisor Growth & Income Fund Class I
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $29.33 | $30.91 | $27.41 | $26.85 | $29.47 |
Income from Investment Operations | |||||
Net investment income (loss)A | .57 | .52 | .50 | .44 | .50 |
Net realized and unrealized gain (loss) | 2.52 | .60 | 3.90 | 2.16 | (.78)B |
Total from investment operations | 3.09 | 1.12 | 4.40 | 2.60 | (.28) |
Distributions from net investment income | (.54) | (.44) | (.45)C | (.48) | (.45) |
Distributions from net realized gain | (2.87) | (2.26) | (.45)C | (1.57) | (1.88) |
Total distributions | (3.41) | (2.70) | (.90) | (2.04)D | (2.34)E |
Net asset value, end of period | $29.01 | $29.33 | $30.91 | $27.41 | $26.85 |
Total ReturnF | 13.89% | 3.71% | 16.45% | 10.91% | (.70)%B |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .70% | .69% | .70% | .73% | .71% |
Expenses net of fee waivers, if any | .69% | .69% | .70% | .73% | .70% |
Expenses net of all reductions | .69% | .69% | .70% | .73% | .70% |
Net investment income (loss) | 2.19% | 1.75% | 1.74% | 1.77% | 1.86% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $48 | $47 | $53 | $35 | $36 |
Portfolio turnover rateI | 29% | 40% | 36% | 31% | 35% |
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, | 2019 | 2018 | 2017 A |
Selected Per–Share Data | |||
Net asset value, beginning of period | $29.35 | $30.94 | $27.35 |
Income from Investment Operations | |||
Net investment income (loss)B | .62 | .56 | .51 |
Net realized and unrealized gain (loss) | 2.53 | .59 | 3.08 |
Total from investment operations | 3.15 | 1.15 | 3.59 |
Distributions from net investment income | (.54) | (.49) | – |
Distributions from net realized gain | (2.87) | (2.26) | – |
Total distributions | (3.41) | (2.74)C | – |
Net asset value, end of period | $29.09 | $29.35 | $30.94 |
Total ReturnD,E | 14.11% | 3.84% | 13.13% |
Ratios to Average Net AssetsF,G | |||
Expenses before reductions | .56% | .56% | .57%H |
Expenses net of fee waivers, if any | .56% | .56% | .57%H |
Expenses net of all reductions | .55% | .55% | .57%H |
Net investment income (loss) | 2.33% | 1.89% | 2.13%H |
Supplemental Data | |||
Net assets, end of period (in millions) | $7 | $22 | $16 |
Portfolio turnover rateI | 29% | 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, 2019
(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. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
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 ranged from less than .005% to .01%.
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. 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, 2019 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, 2019, 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, market discount, partnerships, 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 | $155,779 |
Gross unrealized depreciation | (24,995) |
Net unrealized appreciation (depreciation) | $130,784 |
Tax Cost | $425,591 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $7,967 |
Undistributed long-term capital gain | $28,732 |
Net unrealized appreciation (depreciation) on securities and other investments | $130,781 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $8,127 | $ 8,206 |
Long-term Capital Gains | 54,647 | 42,422 |
Total | $62,774 | $ 50,628 |
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 .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.
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 receive 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 $148,067 and $222,266, 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% | $648 | $15 |
Class M | .25% | .25% | 826 | 19 |
Class C | .75% | .25% | 484 | 49 |
$1,958 | $83 |
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 | $59 |
Class M | 15 |
Class C(a) | 4 |
$78 |
(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 | $512 | .20 |
Class M | 324 | .20 |
Class C | 102 | .21 |
Class I | 86 | .18 |
Class Z | 3 | .05 |
$1,027 |
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. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .04%.
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Growth & Income Fund | $4 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. Total fees paid by the Fund to NFS, as lending agent, amounted to less than five hundred dollars. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $12 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $4.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Class A | $28,125 | $21,875 |
Class M | 19,861 | 15,518 |
Class C | 8,665 | 7,230 |
Class I | 5,384 | 4,343 |
Class Z | 739 | 1,662 |
Total | $62,774 | $50,628 |
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, 2019 | Year ended November 30, 2018 | Year ended November 30, 2019 | Year ended November 30, 2018 | |
Class A | ||||
Shares sold | 2,141 | 693 | $53,751 | $20,030 |
Reinvestment of distributions | 1,185 | 728 | 26,128 | 20,716 |
Shares redeemed | (1,629) | (1,369) | (41,300) | (39,630) |
Net increase (decrease) | 1,697 | 52 | $38,579 | $1,116 |
Class M | ||||
Shares sold | 389 | 403 | $9,907 | $11,720 |
Reinvestment of distributions | 879 | 533 | 19,427 | 15,179 |
Shares redeemed | (1,276) | (977) | (32,309) | (28,255) |
Net increase (decrease) | (8) | (41) | $(2,975) | $(1,356) |
Class C | ||||
Shares sold | 325 | 259 | $7,678 | $7,069 |
Reinvestment of distributions | 415 | 251 | 8,532 | 6,699 |
Shares redeemed | (2,002) | (729) | (46,928) | (19,873) |
Net increase (decrease) | (1,262) | (219) | $(30,718) | $(6,105) |
Class I | ||||
Shares sold | 637 | 464 | $16,618 | $13,745 |
Reinvestment of distributions | 212 | 136 | 4,787 | 3,952 |
Shares redeemed | (796) | (714) | (20,915) | (21,373) |
Net increase (decrease) | 53 | (114) | $490 | $(3,676) |
Class Z | ||||
Shares sold | 253 | 711 | $6,620 | $21,177 |
Reinvestment of distributions | 19 | 15 | 425 | 433 |
Shares redeemed | (759) | (505) | (19,972) | (14,843) |
Net increase (decrease) | (487) | 221 | $(12,927) | $6,767 |
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. (FIIOC) converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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, 2019, 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, 2019, 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, 2019, 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, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Class A | .95% | |||
Actual | $1,000.00 | $1,163.00 | $5.15 | |
Hypothetical-C | $1,000.00 | $1,020.31 | $4.81 | |
Class M | 1.20% | |||
Actual | $1,000.00 | $1,161.70 | $6.50 | |
Hypothetical-C | $1,000.00 | $1,019.05 | $6.07 | |
Class C | 1.71% | |||
Actual | $1,000.00 | $1,158.60 | $9.25 | |
Hypothetical-C | $1,000.00 | $1,016.50 | $8.64 | |
Class I | .69% | |||
Actual | $1,000.00 | $1,164.60 | $3.74 | |
Hypothetical-C | $1,000.00 | $1,021.61 | $3.50 | |
Class Z | .55% | |||
Actual | $1,000.00 | $1,165.50 | $2.99 | |
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 | 12/30/19 | 12/27/19 | $0.478 | $1.469 |
Class M | 12/30/19 | 12/27/19 | $0.403 | $1.469 |
Class C | 12/30/19 | 12/27/19 | $0.236 | $1.469 |
Class I | 12/30/19 | 12/27/19 | $0.543 | $1.469 |
Class Z | 12/30/19 | 12/27/19 | $0.583 | $1.469 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019, $32,175,492, 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 2018, 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 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Growth & Income Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.AGAI-ANN-0120
1.539472.122
Fidelity Advisor® Small Cap Fund
Annual Report
November 30, 2019
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See the inside front cover for important information about access to your fund’s shareholder reports.
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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.
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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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 7.42% | 4.63% | 8.82% |
Class M (incl. 3.50% sales charge) | 9.75% | 4.89% | 8.83% |
Class C (incl. contingent deferred sales charge) | 12.12% | 5.07% | 8.63% |
Class I | 14.26% | 6.16% | 9.77% |
Class Z | 14.46% | 6.32% | 9.87% |
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, 2009, 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/0001379491-20-000191/img552794835_740.jpg)
Period Ending Values | ||
$23,277 | Fidelity Advisor® Small Cap Fund - Class A | |
$32,117 | Russell 2000® Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Portfolio Manager Jennifer Fo Cardillo: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) gained roughly 13% to 14%, significantly outperforming the 7.51% advance of the benchmark Russell 2000® Index. Security selection drove the fund's outperformance of the benchmark, led by my picks in the industrials, consumer discretionary, energy, financials and information technology sectors. The fund's top relative individual contributor – and our largest holding – was Generac Holdings, the market leader in backup-power generation. Our position in Generac shares gained about 73%, rising due to the company's strong business execution and an expanding market opportunity in the wake of California's planned power outages. TopBuild, a U.S. installer and distributor of insulation products for the construction industry, gained 116% for the fund and also notably contributed, benefiting from improved housing-market fundamentals. It also helped to hold a sizable stake in Synnex (+54%), a technology distributor and business-process outsourcer, as the company successfully integrated a recent corporate acquisition and improved its cash flow. In contrast, our biggest detractor versus the benchmark was Supernus Pharmaceuticals (-49%), a specialty drugmaker whose shares fell on stronger-than-expected competition. Another notable detractor was wireless-network access provider Boingo Wireless (-54%), which lowered earnings estimates.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 29, 2019, Jamie Harmon retired from Fidelity, leaving Jennifer Fo Cardillo as sole portfolio manager of the fund.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2019
% of fund's net assets | |
Generac Holdings, Inc. | 1.8 |
Chemed Corp. | 1.8 |
SYNNEX Corp. | 1.8 |
Essent Group Ltd. | 1.7 |
ICON PLC | 1.7 |
BJ's Wholesale Club Holdings, Inc. | 1.6 |
First Citizens Bancshares, Inc. | 1.6 |
ICF International, Inc. | 1.5 |
iShares Russell 2000 Index ETF | 1.5 |
Oshkosh Corp. | 1.5 |
16.5 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Industrials | 18.3 |
Information Technology | 17.4 |
Financials | 17.0 |
Health Care | 13.4 |
Consumer Discretionary | 13.3 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019 * | ||
Stocks | 99.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
* Foreign investments - 11.8%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 3.4% | |||
Interactive Media & Services - 1.0% | |||
CarGurus, Inc. Class A (a) | 473,000 | $18,963 | |
Media - 1.9% | |||
Gray Television, Inc. (a) | 1,090,900 | 22,080 | |
The New York Times Co. Class A | 433,300 | 13,974 | |
36,054 | |||
Wireless Telecommunication Services - 0.5% | |||
Boingo Wireless, Inc. (a) | 745,000 | 8,575 | |
TOTAL COMMUNICATION SERVICES | 63,592 | ||
CONSUMER DISCRETIONARY - 13.3% | |||
Diversified Consumer Services - 0.8% | |||
Grand Canyon Education, Inc. (a) | 161,800 | 13,784 | |
Hotels, Restaurants & Leisure - 3.2% | |||
Churchill Downs, Inc. | 203,900 | 26,509 | |
Hilton Grand Vacations, Inc. (a) | 344,013 | 11,913 | |
Planet Fitness, Inc. (a) | 288,600 | 21,333 | |
59,755 | |||
Household Durables - 3.7% | |||
Cavco Industries, Inc. (a) | 91,400 | 18,281 | |
Taylor Morrison Home Corp. (a) | 745,500 | 17,311 | |
TopBuild Corp. (a) | 163,100 | 17,987 | |
TRI Pointe Homes, Inc. (a) | 871,900 | 13,584 | |
67,163 | |||
Leisure Products - 1.3% | |||
Brunswick Corp. | 164,700 | 9,679 | |
Clarus Corp. | 473,669 | 5,963 | |
YETI Holdings, Inc. (a)(b) | 276,000 | 8,782 | |
24,424 | |||
Multiline Retail - 0.6% | |||
Ollie's Bargain Outlet Holdings, Inc. (a)(b) | 177,200 | 11,589 | |
Specialty Retail - 2.7% | |||
Aaron's, Inc. Class A | 106,900 | 6,243 | |
Boot Barn Holdings, Inc. (a)(b) | 246,400 | 9,812 | |
Murphy U.S.A., Inc. (a) | 183,800 | 21,602 | |
The Children's Place Retail Stores, Inc. (b) | 162,800 | 11,764 | |
49,421 | |||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Carter's, Inc. | 182,700 | 18,875 | |
TOTAL CONSUMER DISCRETIONARY | 245,011 | ||
CONSUMER STAPLES - 2.8% | |||
Food & Staples Retailing - 1.6% | |||
BJ's Wholesale Club Holdings, Inc. (a)(b) | 1,215,030 | 28,796 | |
Food Products - 1.2% | |||
Nomad Foods Ltd. (a) | 1,079,400 | 22,667 | |
TOTAL CONSUMER STAPLES | 51,463 | ||
ENERGY - 2.1% | |||
Energy Equipment & Services - 0.6% | |||
Cactus, Inc. | 348,700 | 10,527 | |
Oil, Gas & Consumable Fuels - 1.5% | |||
Hess Midstream Partners LP | 989,048 | 20,226 | |
Rattler Midstream LP | 526,600 | 8,378 | |
28,604 | |||
TOTAL ENERGY | 39,131 | ||
FINANCIALS - 17.0% | |||
Banks - 6.9% | |||
ConnectOne Bancorp, Inc. | 962,700 | 24,250 | |
First Citizens Bancshares, Inc. | 55,300 | 28,745 | |
First Interstate Bancsystem, Inc. | 422,100 | 17,770 | |
Independent Bank Corp., Massachusetts | 249,100 | 20,974 | |
Old National Bancorp, Indiana | 594,200 | 10,743 | |
ServisFirst Bancshares, Inc. | 396,900 | 14,431 | |
Trico Bancshares | 251,700 | 9,728 | |
126,641 | |||
Capital Markets - 3.3% | |||
Blucora, Inc. (a) | 547,540 | 12,889 | |
LPL Financial | 283,000 | 26,135 | |
Morningstar, Inc. | 135,300 | 21,256 | |
60,280 | |||
Consumer Finance - 1.4% | |||
First Cash Financial Services, Inc. | 315,200 | 25,481 | |
Insurance - 2.6% | |||
Enstar Group Ltd. (a) | 62,800 | 12,824 | |
Hastings Group Holdings PLC (c) | 4,450,964 | 10,229 | |
Primerica, Inc. | 186,200 | 24,921 | |
47,974 | |||
Thrifts & Mortgage Finance - 2.8% | |||
Essent Group Ltd. | 560,923 | 30,654 | |
WSFS Financial Corp. | 477,100 | 21,274 | |
51,928 | |||
TOTAL FINANCIALS | 312,304 | ||
HEALTH CARE - 13.4% | |||
Biotechnology - 2.6% | |||
Allakos, Inc. (a)(b) | 83,500 | 7,933 | |
Allogene Therapeutics, Inc. (a)(b) | 128,800 | 3,630 | |
Audentes Therapeutics, Inc. (a) | 95,900 | 2,784 | |
bluebird bio, Inc. (a) | 48,600 | 3,934 | |
FibroGen, Inc. (a) | 184,500 | 7,817 | |
G1 Therapeutics, Inc. (a) | 57,500 | 1,242 | |
Heron Therapeutics, Inc. (a) | 258,000 | 6,594 | |
Kezar Life Sciences, Inc. (a) | 164,200 | 429 | |
Kura Oncology, Inc. (a) | 195,500 | 3,116 | |
Mirati Therapeutics, Inc. (a) | 60,900 | 6,137 | |
Principia Biopharma, Inc. (a) | 97,500 | 3,493 | |
47,109 | |||
Health Care Equipment & Supplies - 2.6% | |||
Integra LifeSciences Holdings Corp. (a) | 308,100 | 18,791 | |
Masimo Corp. (a) | 83,700 | 12,979 | |
Merit Medical Systems, Inc. (a) | 224,600 | 6,289 | |
Tandem Diabetes Care, Inc. (a) | 117,000 | 8,077 | |
TransMedics Group, Inc. | 129,200 | 2,423 | |
48,559 | |||
Health Care Providers & Services - 3.0% | |||
Chemed Corp. | 77,300 | 33,241 | |
Encompass Health Corp. | 158,000 | 11,172 | |
LHC Group, Inc. (a) | 78,877 | 10,522 | |
54,935 | |||
Health Care Technology - 0.7% | |||
HMS Holdings Corp. (a) | 428,700 | 12,947 | |
Life Sciences Tools & Services - 3.4% | |||
10X Genomics, Inc. (a) | 9,500 | 616 | |
Charles River Laboratories International, Inc. (a) | 156,600 | 22,746 | |
ICON PLC (a) | 184,700 | 30,136 | |
PRA Health Sciences, Inc. (a) | 90,500 | 9,847 | |
63,345 | |||
Pharmaceuticals - 1.1% | |||
Horizon Pharma PLC (a) | 247,800 | 8,123 | |
Supernus Pharmaceuticals, Inc. (a) | 307,600 | 7,192 | |
Zogenix, Inc. (a) | 100,100 | 4,783 | |
20,098 | |||
TOTAL HEALTH CARE | 246,993 | ||
INDUSTRIALS - 18.3% | |||
Building Products - 1.4% | |||
Armstrong World Industries, Inc. | 146,900 | 14,105 | |
Patrick Industries, Inc. | 233,064 | 11,541 | |
25,646 | |||
Commercial Services & Supplies - 1.1% | |||
Tetra Tech, Inc. | 220,600 | 19,477 | |
Construction & Engineering - 1.8% | |||
EMCOR Group, Inc. | 162,200 | 14,424 | |
MasTec, Inc. (a) | 271,300 | 17,998 | |
32,422 | |||
Electrical Equipment - 1.8% | |||
Generac Holdings, Inc. (a) | 340,300 | 33,521 | |
Machinery - 8.0% | |||
Douglas Dynamics, Inc. | 304,300 | 16,466 | |
ESCO Technologies, Inc. | 129,000 | 11,361 | |
Gardner Denver Holdings, Inc. (a) | 253,700 | 8,593 | |
ITT, Inc. | 370,700 | 25,867 | |
Luxfer Holdings PLC sponsored | 1,177,300 | 20,567 | |
Oshkosh Corp. | 297,900 | 26,948 | |
Rexnord Corp. (a) | 790,800 | 24,981 | |
SPX Flow, Inc. (a) | 284,700 | 13,495 | |
148,278 | |||
Professional Services - 3.4% | |||
ASGN, Inc. (a) | 240,100 | 16,089 | |
FTI Consulting, Inc. (a) | 162,800 | 17,744 | |
ICF International, Inc. | 316,879 | 28,434 | |
62,267 | |||
Trading Companies & Distributors - 0.8% | |||
GMS, Inc. (a) | 476,000 | 14,737 | |
TOTAL INDUSTRIALS | 336,348 | ||
INFORMATION TECHNOLOGY - 17.4% | |||
Electronic Equipment & Components - 5.0% | |||
CDW Corp. | 163,000 | 22,013 | |
ePlus, Inc. (a) | 175,889 | 14,699 | |
Insight Enterprises, Inc. (a) | 215,972 | 14,166 | |
Napco Security Technolgies, Inc. (a)(b) | 263,351 | 8,230 | |
SYNNEX Corp. | 262,641 | 32,255 | |
91,363 | |||
IT Services - 5.2% | |||
Booz Allen Hamilton Holding Corp. Class A | 318,900 | 23,203 | |
Euronet Worldwide, Inc. (a) | 141,700 | 22,274 | |
Genpact Ltd. | 434,300 | 17,676 | |
Hackett Group, Inc. | 331,940 | 5,089 | |
KBR, Inc. | 155,000 | 4,614 | |
Repay Holdings Corp. (a)(b) | 757,200 | 10,472 | |
Verra Mobility Corp. (a) | 796,700 | 11,927 | |
95,255 | |||
Semiconductors & Semiconductor Equipment - 1.7% | |||
Entegris, Inc. | 324,200 | 15,341 | |
Onto Innovation, Inc. (a) | 505,300 | 16,958 | |
32,299 | |||
Software - 5.5% | |||
CyberArk Software Ltd. (a) | 107,700 | 13,199 | |
Everbridge, Inc. (a) | 107,100 | 9,418 | |
j2 Global, Inc. | 262,700 | 25,487 | |
Pegasystems, Inc. | 148,900 | 11,558 | |
Proofpoint, Inc. (a)(b) | 121,200 | 14,385 | |
PROS Holdings, Inc. (a) | 200,100 | 12,464 | |
RealPage, Inc. (a) | 105,009 | 5,779 | |
Zensar Technologies Ltd. | 3,486,930 | 9,069 | |
101,359 | |||
TOTAL INFORMATION TECHNOLOGY | 320,276 | ||
MATERIALS - 4.4% | |||
Chemicals - 1.9% | |||
Ashland Global Holdings, Inc. | 199,700 | 14,318 | |
Element Solutions, Inc. (a) | 1,822,100 | 21,300 | |
35,618 | |||
Construction Materials - 0.8% | |||
Eagle Materials, Inc. | 162,800 | 14,982 | |
Containers & Packaging - 1.3% | |||
Aptargroup, Inc. | 203,700 | 22,839 | |
Paper & Forest Products - 0.4% | |||
Neenah, Inc. | 97,100 | 7,067 | |
TOTAL MATERIALS | 80,506 | ||
REAL ESTATE - 4.6% | |||
Equity Real Estate Investment Trusts (REITs) - 2.6% | |||
Americold Realty Trust | 557,100 | 20,958 | |
CoreSite Realty Corp. | 85,000 | 9,638 | |
EPR Properties | 252,100 | 17,879 | |
48,475 | |||
Real Estate Management & Development - 2.0% | |||
CBRE Group, Inc. (a) | 166,000 | 9,465 | |
Cushman & Wakefield PLC (a) | 1,367,000 | 26,506 | |
35,971 | |||
TOTAL REAL ESTATE | 84,446 | ||
UTILITIES - 1.5% | |||
Gas Utilities - 0.8% | |||
Star Gas Partners LP | 1,602,900 | 15,051 | |
Multi-Utilities - 0.7% | |||
Telecom Plus PLC | 785,486 | 13,511 | |
TOTAL UTILITIES | 28,562 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,472,620) | 1,808,632 | ||
Money Market Funds - 3.3% | |||
Fidelity Cash Central Fund 1.61% (d) | 9,611,238 | 9,613 | |
Fidelity Securities Lending Cash Central Fund 1.61% (d)(e) | 50,615,881 | 50,621 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $60,234) | 60,234 | ||
Equity Funds - 1.5% | |||
Small Blend Funds - 1.5% | |||
iShares Russell 2000 Index ETF (b) | |||
(Cost $26,308) | 171,600 | 27,760 | |
TOTAL INVESTMENT IN SECURITIES - 103.0% | |||
(Cost $1,559,162) | 1,896,626 | ||
NET OTHER ASSETS (LIABILITIES) - (3.0)% | (54,699) | ||
NET ASSETS - 100% | $1,841,927 |
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 $10,229,000 or 0.6% 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.
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 | $452 |
Fidelity Securities Lending Cash Central Fund | 500 |
Total | $952 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
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% |
United Kingdom | 3.9% |
Bermuda | 3.4% |
Ireland | 2.1% |
British Virgin Islands | 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, 2019 | |
Assets | ||
Investment in securities, at value (including securities loaned of $49,196) — See accompanying schedule: Unaffiliated issuers (cost $1,498,928) | $1,836,392 | |
Fidelity Central Funds (cost $60,234) | 60,234 | |
Total Investment in Securities (cost $1,559,162) | $1,896,626 | |
Receivable for fund shares sold | 1,007 | |
Dividends receivable | 1,073 | |
Distributions receivable from Fidelity Central Funds | 54 | |
Prepaid expenses | 3 | |
Other receivables | 9 | |
Total assets | 1,898,772 | |
Liabilities | ||
Payable to custodian bank | $2,696 | |
Payable for fund shares redeemed | 1,706 | |
Accrued management fee | 1,005 | |
Distribution and service plan fees payable | 438 | |
Other affiliated payables | 330 | |
Other payables and accrued expenses | 48 | |
Collateral on securities loaned | 50,622 | |
Total liabilities | 56,845 | |
Net Assets | $1,841,927 | |
Net Assets consist of: | ||
Paid in capital | $1,447,891 | |
Total accumulated earnings (loss) | 394,036 | |
Net Assets | $1,841,927 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($653,507 ÷ 26,953 shares)(a) | $24.25 | |
Maximum offering price per share (100/94.25 of $24.25) | $25.73 | |
Class M: | ||
Net Asset Value and redemption price per share ($541,631 ÷ 24,557 shares)(a) | $22.06 | |
Maximum offering price per share (100/96.50 of $22.06) | $22.86 | |
Class C: | ||
Net Asset Value and offering price per share ($96,095 ÷ 5,616 shares)(a) | $17.11 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($433,677 ÷ 16,010 shares) | $27.09 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($117,017 ÷ 4,310 shares) | $27.15 |
(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, 2019 | |
Investment Income | ||
Dividends | $14,703 | |
Interest | 9 | |
Income from Fidelity Central Funds (including $500 from security lending) | 952 | |
Total income | 15,664 | |
Expenses | ||
Management fee | ||
Basic fee | $12,617 | |
Performance adjustment | (3,824) | |
Transfer agent fees | 3,636 | |
Distribution and service plan fees | 5,506 | |
Accounting and security lending fees | 563 | |
Custodian fees and expenses | 64 | |
Independent trustees' fees and expenses | 11 | |
Registration fees | 104 | |
Audit | 65 | |
Legal | 6 | |
Interest | 5 | |
Miscellaneous | 15 | |
Total expenses before reductions | 18,768 | |
Expense reductions | (67) | |
Total expenses after reductions | 18,701 | |
Net investment income (loss) | (3,037) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 68,188 | |
Fidelity Central Funds | (1) | |
Foreign currency transactions | (38) | |
Futures contracts | 5,195 | |
Total net realized gain (loss) | 73,344 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 155,084 | |
Assets and liabilities in foreign currencies | (1) | |
Futures contracts | (41) | |
Total change in net unrealized appreciation (depreciation) | 155,042 | |
Net gain (loss) | 228,386 | |
Net increase (decrease) in net assets resulting from operations | $225,349 |
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, 2019 | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(3,037) | $(4,505) |
Net realized gain (loss) | 73,344 | 262,229 |
Change in net unrealized appreciation (depreciation) | 155,042 | (370,037) |
Net increase (decrease) in net assets resulting from operations | 225,349 | (112,313) |
Distributions to shareholders | (233,679) | (325,472) |
Share transactions - net increase (decrease) | (240,341) | (99,053) |
Total increase (decrease) in net assets | (248,671) | (536,838) |
Net Assets | ||
Beginning of period | 2,090,598 | 2,627,436 |
End of period | $1,841,927 | $2,090,598 |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $24.46 | $29.35 | $25.52 | $27.56 | $29.85 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.03) | (.04) | .03 | .12B | .02C |
Net realized and unrealized gain (loss) | 2.56 | (1.28) | 4.18 | .05 | 1.10 |
Total from investment operations | 2.53 | (1.32) | 4.21 | .17 | 1.12 |
Distributions from net investment income | – | – | (.08) | – | – |
Distributions from net realized gain | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Total distributions | (2.74) | (3.57) | (.38) | (2.21) | (3.41) |
Net asset value, end of period | $24.25 | $24.46�� | $29.35 | $25.52 | $27.56 |
Total ReturnD,E | 13.97% | (5.18)% | 16.68% | 1.31% | 4.17% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .98% | .97% | 1.05% | 1.32% | 1.26% |
Expenses net of fee waivers, if any | .98% | .97% | 1.05% | 1.32% | 1.26% |
Expenses net of all reductions | .98% | .96% | 1.04% | 1.31% | 1.25% |
Net investment income (loss) | (.13)% | (.13)% | .10% | .52%B | .07%C |
Supplemental Data | |||||
Net assets, end of period (in millions) | $654 | $640 | $805 | $932 | $1,047 |
Portfolio turnover rateH | 56% | 74% | 84% | 81% | 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 .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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $22.58 | $27.43 | $23.88 | $25.99 | $28.40 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.07) | (.09) | (.03) | .07B | (.04)C |
Net realized and unrealized gain (loss) | 2.29 | (1.19) | 3.91 | .03 | 1.04 |
Total from investment operations | 2.22 | (1.28) | 3.88 | .10 | 1.00 |
Distributions from net investment income | – | – | (.03) | – | – |
Distributions from net realized gain | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Total distributions | (2.74) | (3.57) | (.33) | (2.21) | (3.41) |
Net asset value, end of period | $22.06 | $22.58 | $27.43 | $23.88 | $25.99 |
Total ReturnD,E | 13.73% | (5.42)% | 16.41% | 1.10% | 3.93% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.22% | 1.20% | 1.28% | 1.54% | 1.49% |
Expenses net of fee waivers, if any | 1.22% | 1.20% | 1.28% | 1.54% | 1.49% |
Expenses net of all reductions | 1.21% | 1.19% | 1.27% | 1.54% | 1.49% |
Net investment income (loss) | (.36)% | (.37)% | (.13)% | .29%B | (.16)%C |
Supplemental Data | |||||
Net assets, end of period (in millions) | $542 | $580 | $734 | $756 | $888 |
Portfolio turnover rateH | 56% | 74% | 84% | 81% | 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 $.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 dividends 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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.32 | $23.02 | $20.17 | $22.44 | $25.10 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.15) | (.18) | (.14) | (.05)B | (.16)C |
Net realized and unrealized gain (loss) | 1.68 | (.95) | 3.29 | (.01) | .91 |
Total from investment operations | 1.53 | (1.13) | 3.15 | (.06) | .75 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Total distributions | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Net asset value, end of period | $17.11 | $18.32 | $23.02 | $20.17 | $22.44 |
Total ReturnD,E | 13.05% | (5.88)% | 15.80% | .50% | 3.38% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.79% | 1.74% | 1.81% | 2.08% | 2.02% |
Expenses net of fee waivers, if any | 1.79% | 1.74% | 1.81% | 2.08% | 2.02% |
Expenses net of all reductions | 1.78% | 1.73% | 1.80% | 2.07% | 2.01% |
Net investment income (loss) | (.93)% | (.90)% | (.66)% | (.24)%B | (.69)%C |
Supplemental Data | |||||
Net assets, end of period (in millions) | $96 | $196 | $273 | $274 | $318 |
Portfolio turnover rateH | 56% | 74% | 84% | 81% | 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 $.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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $26.89 | $31.84 | $27.65 | $29.59 | $31.80 |
Income from Investment Operations | |||||
Net investment income (loss)A | .03 | .04 | .11 | .20B | .10C |
Net realized and unrealized gain (loss) | 2.91 | (1.42) | 4.54 | .07 | 1.18 |
Total from investment operations | 2.94 | (1.38) | 4.65 | .27 | 1.28 |
Distributions from net investment income | – | – | (.15) | – | (.08) |
Distributions from net realized gain | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Total distributions | (2.74) | (3.57) | (.46)D | (2.21) | (3.49) |
Net asset value, end of period | $27.09 | $26.89 | $31.84 | $27.65 | $29.59 |
Total ReturnE | 14.26% | (4.93)% | 17.01% | 1.58% | 4.46% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .72% | .71% | .78% | 1.05% | .99% |
Expenses net of fee waivers, if any | .72% | .71% | .78% | 1.04% | .99% |
Expenses net of all reductions | .72% | .70% | .77% | 1.04% | .99% |
Net investment income (loss) | .14% | .12% | .37% | .79%B | .34%C |
Supplemental Data | |||||
Net assets, end of period (in millions) | $434 | $604 | $758 | $652 | $704 |
Portfolio turnover rateH | 56% | 74% | 84% | 81% | 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 .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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $26.90 | $31.81 | $27.63 | $29.53 | $31.76 |
Income from Investment Operations | |||||
Net investment income (loss)A | .07 | .08 | .15 | .24B | .14C |
Net realized and unrealized gain (loss) | 2.92 | (1.42) | 4.53 | .07 | 1.17 |
Total from investment operations | 2.99 | (1.34) | 4.68 | .31 | 1.31 |
Distributions from net investment income | – | – | (.20) | – | (.14) |
Distributions from net realized gain | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Total distributions | (2.74) | (3.57) | (.50) | (2.21) | (3.54)D |
Net asset value, end of period | $27.15 | $26.90 | $31.81 | $27.63 | $29.53 |
Total ReturnE | 14.46% | (4.80)% | 17.17% | 1.73% | 4.59% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .57% | .56% | .63% | .89% | .84% |
Expenses net of fee waivers, if any | .57% | .56% | .63% | .89% | .84% |
Expenses net of all reductions | .57% | .55% | .62% | .89% | .84% |
Net investment income (loss) | .29% | .28% | .51% | .94%B | .48%C |
Supplemental Data | |||||
Net assets, end of period (in millions) | $117 | $71 | $57 | $44 | $41 |
Portfolio turnover rateH | 56% | 74% | 84% | 81% | 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 .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, 2019
(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. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
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 ranged from less than .005% to .01%.
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. 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.
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.
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.
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, 2019, 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, passive foreign investment companies (PFIC), 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 | $412,157 |
Gross unrealized depreciation | (75,052) |
Net unrealized appreciation (depreciation) | $337,105 |
Tax Cost | $1,559,521 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $– |
Undistributed long-term capital gain | $70,478 |
Net unrealized appreciation (depreciation) on securities and other investments | $334,208 |
The Fund intends to elect to defer to its next fiscal year $10,650 of ordinary losses recognized during the period January 1, 2019 to November 30, 2019.
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Long-term Capital Gains | $233,679 | $325,472 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. 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 $1,018,497 and $1,479,914, 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 .48% 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% | $1,572 | $21 |
Class M | .25% | .25% | 2,691 | 20 |
Class C | .75% | .25% | 1,243 | 110 |
$5,506 | $ 151 |
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 | $77 |
Class M | 12 |
Class C(a) | 9 |
$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 | $1,325 | .21 |
Class M | 1,032 | .19 |
Class C | 312 | .25 |
Class I | 935 | .20 |
Class Z | 32 | .05 |
$3,636 |
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. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .03%.
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Small Cap Fund | $55 |
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 | $7,616 | 2.65% | $5 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $5 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $18. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $59 from securities loaned to NFS, as affiliated borrower.
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 $52 for the period
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $15.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Class A | $70,409 | $97,007 |
Class M | 69,540 | 94,774 |
Class C | 28,270 | 42,142 |
Class I | 58,773 | 84,511 |
Class Z | 6,687 | 7,038 |
Total | $233,679 | $325,472 |
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, 2019 | Year ended November 30, 2018 | Year ended November 30, 2019 | Year ended November 30, 2018 | |
Class A | ||||
Shares sold | 5,398 | 2,683 | $117,576 | $70,872 |
Reinvestment of distributions | 3,724 | 3,654 | 68,215 | 94,669 |
Shares redeemed | (8,332) | (7,596) | (183,112) | (199,704) |
Net increase (decrease) | 790 | (1,259) | $2,679 | $(34,163) |
Class M | ||||
Shares sold | 2,649 | 2,955 | $52,736 | $71,993 |
Reinvestment of distributions | 4,110 | 3,900 | 68,624 | 93,479 |
Shares redeemed | (7,883) | (7,929) | (157,565) | (192,971) |
Net increase (decrease) | (1,124) | (1,074) | $(36,205) | $(27,499) |
Class C | ||||
Shares sold | 637 | 1,069 | $9,759 | $21,280 |
Reinvestment of distributions | 2,131 | 2,060 | 27,737 | 40,250 |
Shares redeemed | (7,879) | (4,279) | (121,637) | (84,745) |
Net increase (decrease) | (5,111) | (1,150) | $(84,141) | $(23,215) |
Class I | ||||
Shares sold | 2,794 | 5,442 | $67,982 | $157,788 |
Reinvestment of distributions | 2,665 | 2,708 | 54,406 | 76,927 |
Shares redeemed | (11,902) | (9,517) | (288,598) | (273,837) |
Net increase (decrease) | (6,443) | (1,367) | $(166,210) | $(39,122) |
Class Z | ||||
Shares sold | 3,553 | 1,924 | $90,450 | $55,987 |
Reinvestment of distributions | 290 | 228 | 5,933 | 6,486 |
Shares redeemed | (2,166) | (1,308) | (52,848) | (37,527) |
Net increase (decrease) | 1,677 | 844 | $43,535 | $24,946 |
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. (FIIOC) converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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, 2019, the related statement of operations for the year ended November 30, 2019, the statement of changes in net assets for each of the two years in the period ended November 30, 2019, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2019 (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, 2019, 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, 2019 and the financial highlights for each of the five years in the period ended November 30, 2019 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, 2019 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 10, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Class A | 1.04% | |||
Actual | $1,000.00 | $1,141.40 | $5.58 | |
Hypothetical-C | $1,000.00 | $1,019.85 | $5.27 | |
Class M | 1.27% | |||
Actual | $1,000.00 | $1,140.20 | $6.81 | |
Hypothetical-C | $1,000.00 | $1,018.70 | $6.43 | |
Class C | 1.87% | |||
Actual | $1,000.00 | $1,136.40 | $10.02 | |
Hypothetical-C | $1,000.00 | $1,015.69 | $9.45 | |
Class I | .78% | |||
Actual | $1,000.00 | $1,142.70 | $4.19 | |
Hypothetical-C | $1,000.00 | $1,021.16 | $3.95 | |
Class Z | .62% | |||
Actual | $1,000.00 | $1,143.80 | $3.33 | |
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 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 | 12/30/19 | 12/27/19 | $0.928 |
Class M | 12/30/19 | 12/27/19 | $0.928 |
Class C | 12/30/19 | 12/27/19 | $0.928 |
Class I | 12/30/19 | 12/27/19 | $0.928 |
Class Z | 12/30/19 | 12/27/19 | $0.928 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019, $74,906,725, or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Small Cap Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.ASCF-ANN-0120
1.713164.122
Fidelity Advisor® Stock Selector Mid Cap Fund
Annual Report
November 30, 2019
Includes Fidelity and Fidelity Advisor share classes
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fipro_logo.jpg)
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 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 5.68% | 6.95% | 11.14% |
Class M (incl. 3.50% sales charge) | 7.97% | 7.20% | 11.16% |
Class C (incl. contingent deferred sales charge) | 10.37% | 7.41% | 10.96% |
Fidelity® Stock Selector Mid Cap Fund | 12.38% | 8.45% | 12.07% |
Class I | 12.41% | 8.47% | 12.08% |
Class Z | 12.59% | 8.56% | 12.13% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Fidelity® Stock Selector Mid Cap Fund took place on June 6, 2012. Returns prior to June 6, 2012, are those of Class I.
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, 2009, 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/0001379491-20-000191/img552794372_740.jpg)
Period Ending Values | ||
$28,743 | Fidelity Advisor® Stock Selector Mid Cap Fund - Class A | |
$34,236 | S&P MidCap 400® Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Co-Portfolio Manager Robert Stansky: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 11% to 13%, well ahead of the 8.86% advance of the benchmark S&P MidCap 400® Index. Versus the benchmark, picks within the consumer discretionary, health care and real estate sectors were particularly successful. Overall, the fund’s co-managers added value in nine of 11 market sectors. Exposure to growth-oriented stocks also added value because these types of investments significantly outperformed their value counterparts this period. At an individual stock level, the fund’s top relative contributor was consumer finance and insurance provider OneMain Holdings (+60%). Consumer spending has remained relatively strong, whereas delinquencies and defaults have stayed fairly low – a nearly ideal environment for companies like OneMain. Other contributors included Insulet (+123%), which makes insulin-delivery systems for people with insulin-dependent diabetes, and Netherlands-based engineering & construction firm Arcadis (+66%). Conversely, security selection in the materials sector, along with an underweighting in the market-leading information technology sector, detracted modestly. Audience-measurement expert Nielsen Holdings (-25%) was the fund’s largest relative detractor. Amneal Pharmaceuticals (-83%) – which we sold from the portfolio prior to period end – also hurt. All of the stocks just mentioned were out-of-benchmark holdings.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, 2019
% of fund's net assets | |
OneMain Holdings, Inc. | 2.5 |
AECOM | 1.9 |
Huntington Bancshares, Inc. | 1.8 |
First Horizon National Corp. | 1.6 |
Nielsen Holdings PLC | 1.5 |
PVH Corp. | 1.3 |
HD Supply Holdings, Inc. | 1.2 |
Jeld-Wen Holding, Inc. | 1.2 |
Masimo Corp. | 1.2 |
Duke Realty Corp. | 1.2 |
15.4 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Industrials | 15.7 |
Financials | 15.7 |
Information Technology | 14.6 |
Consumer Discretionary | 12.1 |
Real Estate | 10.7 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019 * | ||
Stocks and Equity Futures | 97.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.2% |
* Foreign investments - 11.1%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 97.0% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 2.9% | |||
Diversified Telecommunication Services - 0.4% | |||
GCI Liberty, Inc. (a) | 134,124 | $9,521 | |
Entertainment - 0.4% | |||
Electronic Arts, Inc. (a) | 76,100 | 7,687 | |
Interactive Media & Services - 0.1% | |||
TripAdvisor, Inc. | 98,100 | 2,786 | |
Media - 2.0% | |||
Discovery Communications, Inc. Class A (a)(b) | 174,180 | 5,737 | |
Interpublic Group of Companies, Inc. | 213,051 | 4,772 | |
Liberty Broadband Corp. Class A (a) | 97,487 | 11,534 | |
Liberty Media Corp.: | |||
Liberty Media Class A (a) | 105,036 | 4,524 | |
Liberty SiriusXM Series A (a) | 150,900 | 7,349 | |
Nexstar Broadcasting Group, Inc. Class A | 16,000 | 1,723 | |
Omnicom Group, Inc. | 51,782 | 4,116 | |
Sinclair Broadcast Group, Inc. Class A | 78,100 | 2,720 | |
42,475 | |||
TOTAL COMMUNICATION SERVICES | 62,469 | ||
CONSUMER DISCRETIONARY - 12.1% | |||
Auto Components - 1.4% | |||
Gentex Corp. | 695,200 | 19,744 | |
Lear Corp. | 83,900 | 10,094 | |
29,838 | |||
Distributors - 1.0% | |||
LKQ Corp. (a) | 595,000 | 20,992 | |
Diversified Consumer Services - 1.0% | |||
Graham Holdings Co. | 8,200 | 5,179 | |
Grand Canyon Education, Inc. (a) | 116,700 | 9,942 | |
H&R Block, Inc. | 223,000 | 5,437 | |
20,558 | |||
Household Durables - 1.9% | |||
Mohawk Industries, Inc. (a) | 66,300 | 9,240 | |
NVR, Inc. (a) | 4,600 | 17,443 | |
Whirlpool Corp. | 97,600 | 13,967 | |
40,650 | |||
Internet & Direct Marketing Retail - 0.1% | |||
Liberty Interactive Corp. QVC Group Series A (a) | 262,584 | 2,484 | |
Leisure Products - 0.5% | |||
Brunswick Corp. | 193,600 | 11,378 | |
Multiline Retail - 0.7% | |||
Dollar General Corp. | 31,000 | 4,878 | |
Dollar Tree, Inc. (a) | 111,900 | 10,234 | |
15,112 | |||
Specialty Retail - 3.3% | |||
AutoNation, Inc. (a) | 243,600 | 12,446 | |
AutoZone, Inc. (a) | 14,500 | 17,080 | |
O'Reilly Automotive, Inc. (a) | 35,300 | 15,612 | |
Ross Stores, Inc. | 108,100 | 12,556 | |
Williams-Sonoma, Inc. (b) | 161,800 | 11,229 | |
68,923 | |||
Textiles, Apparel & Luxury Goods - 2.2% | |||
PVH Corp. | 280,900 | 27,236 | |
Tapestry, Inc. | 715,200 | 19,232 | |
46,468 | |||
TOTAL CONSUMER DISCRETIONARY | 256,403 | ||
CONSUMER STAPLES - 2.7% | |||
Beverages - 0.2% | |||
Coca-Cola European Partners PLC | 58,300 | 2,942 | |
Food & Staples Retailing - 0.3% | |||
U.S. Foods Holding Corp. (a) | 158,700 | 6,311 | |
Food Products - 1.0% | |||
Conagra Brands, Inc. | 225,327 | 6,505 | |
Ingredion, Inc. | 137,600 | 11,444 | |
The J.M. Smucker Co. | 38,300 | 4,025 | |
21,974 | |||
Household Products - 1.0% | |||
Church & Dwight Co., Inc. | 57,000 | 4,004 | |
Energizer Holdings, Inc. | 245,600 | 12,253 | |
Spectrum Brands Holdings, Inc. | 67,707 | 4,233 | |
20,490 | |||
Tobacco - 0.2% | |||
Universal Corp. | 85,500 | 4,465 | |
TOTAL CONSUMER STAPLES | 56,182 | ||
ENERGY - 2.0% | |||
Energy Equipment & Services - 0.3% | |||
Dril-Quip, Inc. (a) | 93,400 | 3,947 | |
Nabors Industries Ltd. | 1,327,900 | 2,735 | |
6,682 | |||
Oil, Gas & Consumable Fuels - 1.7% | |||
Cimarex Energy Co. | 91,200 | 4,192 | |
EQT Corp. | 544,000 | 4,749 | |
HollyFrontier Corp. | 101,300 | 5,222 | |
PBF Energy, Inc. Class A | 237,800 | 7,443 | |
PDC Energy, Inc. (a) | 143,700 | 3,266 | |
WPX Energy, Inc. (a) | 1,033,700 | 10,172 | |
35,044 | |||
TOTAL ENERGY | 41,726 | ||
FINANCIALS - 15.7% | |||
Banks - 6.5% | |||
Banco Inter SA unit | 248,400 | 2,648 | |
First Horizon National Corp. | 2,091,200 | 33,626 | |
Huntington Bancshares, Inc. | 2,496,806 | 37,177 | |
Live Oak Bancshares, Inc. (b) | 186,000 | 3,395 | |
PacWest Bancorp | 419,300 | 15,615 | |
Piraeus Bank SA (a) | 1,283,500 | 4,497 | |
Popular, Inc. | 180,800 | 10,000 | |
Signature Bank | 160,200 | 19,762 | |
Wintrust Financial Corp. | 160,900 | 10,927 | |
137,647 | |||
Capital Markets - 3.7% | |||
Avanza Bank Holding AB | 488,803 | 4,757 | |
E*TRADE Financial Corp. | 265,500 | 11,762 | |
Lazard Ltd. Class A | 468,800 | 18,114 | |
Morningstar, Inc. | 109,700 | 17,234 | |
SEI Investments Co. | 291,600 | 18,817 | |
Virtu Financial, Inc. Class A (b) | 528,870 | 8,779 | |
79,463 | |||
Consumer Finance - 3.4% | |||
First Cash Financial Services, Inc. | 103,500 | 8,367 | |
OneMain Holdings, Inc. | 1,228,614 | 52,938 | |
SLM Corp. | 1,265,062 | 10,791 | |
72,096 | |||
Diversified Financial Services - 0.3% | |||
ECN Capital Corp. | 1,906,300 | 6,386 | |
Insurance - 1.4% | |||
Argo Group International Holdings, Ltd. | 85,200 | 5,604 | |
Beazley PLC | 470,300 | 3,236 | |
Old Republic International Corp. | 627,700 | 14,161 | |
Talanx AG | 134,800 | 6,425 | |
29,426 | |||
Thrifts & Mortgage Finance - 0.4% | |||
Essent Group Ltd. | 143,300 | 7,831 | |
TOTAL FINANCIALS | 332,849 | ||
HEALTH CARE - 10.4% | |||
Biotechnology - 0.9% | |||
Neurocrine Biosciences, Inc. (a) | 80,000 | 9,329 | |
Sarepta Therapeutics, Inc. (a) | 94,000 | 10,574 | |
19,903 | |||
Health Care Equipment & Supplies - 5.4% | |||
Hologic, Inc. (a) | 320,000 | 16,422 | |
Insulet Corp. (a) | 84,000 | 15,599 | |
Integra LifeSciences Holdings Corp. (a) | 210,000 | 12,808 | |
Masimo Corp. (a) | 165,000 | 25,587 | |
Nanosonics Ltd. (a) | 2,800,000 | 12,632 | |
Nevro Corp. (a) | 34,202 | 3,823 | |
Penumbra, Inc. (a) | 100,300 | 17,745 | |
Varian Medical Systems, Inc. (a) | 78,000 | 10,431 | |
115,047 | |||
Health Care Providers & Services - 3.5% | |||
HealthEquity, Inc. (a) | 240,000 | 15,094 | |
LHC Group, Inc. (a) | 67,000 | 8,938 | |
Molina Healthcare, Inc. (a) | 170,000 | 23,035 | |
Premier, Inc. (a) | 240,000 | 8,530 | |
Wellcare Health Plans, Inc. (a) | 56,000 | 18,036 | |
73,633 | |||
Life Sciences Tools & Services - 0.4% | |||
Avantor, Inc. | 460,000 | 7,880 | |
Pharmaceuticals - 0.2% | |||
Nektar Therapeutics (a) | 180,000 | 3,652 | |
TOTAL HEALTH CARE | 220,115 | ||
INDUSTRIALS - 15.7% | |||
Airlines - 1.6% | |||
American Airlines Group, Inc. | 565,191 | 16,244 | |
JetBlue Airways Corp. (a) | 885,600 | 17,066 | |
33,310 | |||
Building Products - 1.2% | |||
Jeld-Wen Holding, Inc. (a) | 1,146,409 | 26,081 | |
Construction & Engineering - 4.2% | |||
AECOM (a) | 901,937 | 39,081 | |
Arcadis NV (b) | 850,084 | 17,290 | |
Fluor Corp. | 162,700 | 2,837 | |
Granite Construction, Inc. (b) | 883,563 | 22,761 | |
Jacobs Engineering Group, Inc. | 71,200 | 6,557 | |
88,526 | |||
Electrical Equipment - 0.9% | |||
Sensata Technologies, Inc. PLC (a) | 371,051 | 19,105 | |
Machinery - 1.4% | |||
Allison Transmission Holdings, Inc. | 368,463 | 17,834 | |
Kennametal, Inc. | 201,600 | 7,022 | |
WABCO Holdings, Inc. (a) | 35,900 | 4,838 | |
29,694 | |||
Marine - 1.0% | |||
A.P. Moller - Maersk A/S Series B | 15,785 | 22,062 | |
Professional Services - 1.5% | |||
Nielsen Holdings PLC | 1,573,499 | 30,762 | |
Road & Rail - 1.8% | |||
Genesee & Wyoming, Inc. Class A (a) | 67,600 | 7,534 | |
Knight-Swift Transportation Holdings, Inc. Class A | 574,200 | 21,240 | |
Ryder System, Inc. | 197,700 | 10,377 | |
39,151 | |||
Trading Companies & Distributors - 2.1% | |||
HD Supply Holdings, Inc. (a) | 665,449 | 26,498 | |
MRC Global, Inc. (a) | 1,393,855 | 18,594 | |
45,092 | |||
TOTAL INDUSTRIALS | 333,783 | ||
INFORMATION TECHNOLOGY - 14.6% | |||
Electronic Equipment & Components - 4.4% | |||
Avnet, Inc. | 319,800 | 13,000 | |
Belden, Inc. | 157,200 | 8,448 | |
Cognex Corp. | 326,700 | 16,394 | |
Coherent, Inc. (a) | 17,500 | 2,640 | |
Corning, Inc. | 339,200 | 9,850 | |
Jabil, Inc. | 185,900 | 7,220 | |
Trimble, Inc. (a) | 523,400 | 21,213 | |
TTM Technologies, Inc. (a) | 488,500 | 6,551 | |
Vishay Intertechnology, Inc. (b) | 398,300 | 7,922 | |
93,238 | |||
IT Services - 3.7% | |||
Akamai Technologies, Inc. (a) | 51,500 | 4,487 | |
Alliance Data Systems Corp. | 31,000 | 3,314 | |
Capgemini SA | 124,500 | 14,726 | |
ExlService Holdings, Inc. (a) | 73,200 | 5,110 | |
Gartner, Inc. (a) | 68,900 | 11,056 | |
GoDaddy, Inc. (a) | 102,500 | 6,804 | |
GreenSky, Inc. Class A (a)(b) | 263,600 | 1,961 | |
Leidos Holdings, Inc. | 85,700 | 7,785 | |
Liveramp Holdings, Inc. (a) | 142,500 | 7,138 | |
PagSeguro Digital Ltd. (a) | 62,000 | 2,104 | |
Twilio, Inc. Class A (a) | 68,000 | 7,023 | |
WEX, Inc. (a) | 31,900 | 6,416 | |
77,924 | |||
Semiconductors & Semiconductor Equipment - 1.4% | |||
Cirrus Logic, Inc. (a) | 93,200 | 6,682 | |
Microchip Technology, Inc. (b) | 84,100 | 7,951 | |
ON Semiconductor Corp. (a) | 379,500 | 8,148 | |
Skyworks Solutions, Inc. | 77,200 | 7,589 | |
30,370 | |||
Software - 4.8% | |||
Blackbaud, Inc. | 84,400 | 6,995 | |
Box, Inc. Class A (a) | 271,400 | 4,950 | |
Check Point Software Technologies Ltd. (a) | 59,500 | 7,014 | |
Citrix Systems, Inc. | 83,500 | 9,420 | |
Constellation Software, Inc. | 7,700 | 8,226 | |
LogMeIn, Inc. | 97,600 | 7,611 | |
Micro Focus International PLC | 594,393 | 8,711 | |
Nortonlifelock, Inc. | 431,200 | 10,737 | |
Parametric Technology Corp. (a) | 275,700 | 21,119 | |
Pivotal Software, Inc. (a) | 509,500 | 7,653 | |
Pluralsight, Inc. (a) | 558,400 | 9,487 | |
101,923 | |||
Technology Hardware, Storage & Peripherals - 0.3% | |||
Western Digital Corp. | 106,900 | 5,380 | |
TOTAL INFORMATION TECHNOLOGY | 308,835 | ||
MATERIALS - 5.8% | |||
Chemicals - 1.8% | |||
Ashland Global Holdings, Inc. | 197,200 | 14,139 | |
Axalta Coating Systems Ltd. (a) | 372,500 | 10,605 | |
Olin Corp. | 459,300 | 8,047 | |
The Chemours Co. LLC | 422,700 | 6,674 | |
39,465 | |||
Construction Materials - 0.6% | |||
Eagle Materials, Inc. | 142,500 | 13,114 | |
Containers & Packaging - 1.7% | |||
Aptargroup, Inc. | 172,100 | 19,296 | |
Sonoco Products Co. | 264,800 | 16,028 | |
35,324 | |||
Metals & Mining - 1.3% | |||
Steel Dynamics, Inc. | 530,500 | 17,894 | |
Wheaton Precious Metals Corp. (b) | 328,000 | 9,066 | |
26,960 | |||
Paper & Forest Products - 0.4% | |||
Louisiana-Pacific Corp. | 284,000 | 8,423 | |
TOTAL MATERIALS | 123,286�� | ||
REAL ESTATE - 10.7% | |||
Equity Real Estate Investment Trusts (REITs) - 9.9% | |||
Acadia Realty Trust (SBI) | 523,500 | 14,072 | |
Alexandria Real Estate Equities, Inc. | 137,000 | 22,265 | |
CareTrust (REIT), Inc. | 697,700 | 14,568 | |
CoreSite Realty Corp. | 105,000 | 11,906 | |
CubeSmart | 174,700 | 5,388 | |
Duke Realty Corp. | 712,078 | 25,051 | |
Equity Lifestyle Properties, Inc. | 185,200 | 13,720 | |
Four Corners Property Trust, Inc. | 314,600 | 8,909 | |
Front Yard Residential Corp. Class B | 546,521 | 6,340 | |
Healthcare Realty Trust, Inc. | 576,100 | 19,121 | |
Highwoods Properties, Inc. (SBI) | 389,000 | 18,886 | |
National Retail Properties, Inc. | 246,800 | 13,757 | |
Outfront Media, Inc. | 319,800 | 7,989 | |
Potlatch Corp. | 161,754 | 7,025 | |
RLJ Lodging Trust | 777,700 | 13,291 | |
UDR, Inc. | 175,400 | 8,428 | |
210,716 | |||
Real Estate Management & Development - 0.8% | |||
Jones Lang LaSalle, Inc. | 62,600 | 10,412 | |
The RMR Group, Inc. | 120,200 | 5,646 | |
16,058 | |||
TOTAL REAL ESTATE | 226,774 | ||
UTILITIES - 4.4% | |||
Electric Utilities - 0.8% | |||
Entergy Corp. | 53,600 | 6,239 | |
OGE Energy Corp. | 164,800 | 6,931 | |
PNM Resources, Inc. | 78,000 | 3,779 | |
16,949 | |||
Gas Utilities - 1.7% | |||
Atmos Energy Corp. | 136,900 | 14,643 | |
National Fuel Gas Co. | 84,100 | 3,786 | |
Southwest Gas Holdings, Inc. | 117,400 | 8,894 | |
UGI Corp. | 227,774 | 9,920 | |
37,243 | |||
Independent Power and Renewable Electricity Producers - 0.2% | |||
Clearway Energy, Inc. Class C | 202,100 | 4,008 | |
Multi-Utilities - 0.6% | |||
Black Hills Corp. | 73,500 | 5,628 | |
CMS Energy Corp. | 32,100 | 1,968 | |
NiSource, Inc. | 165,900 | 4,388 | |
11,984 | |||
Water Utilities - 1.1% | |||
Aqua America, Inc. | 425,098 | 18,819 | |
SJW Corp. | 65,750 | 4,656 | |
23,475 | |||
TOTAL UTILITIES | 93,659 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,807,732) | 2,056,081 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 1.52% to 1.91% 12/12/19 to 2/6/20 (c) | |||
(Cost $969) | 970 | 969 | |
Shares | Value (000s) | ||
Money Market Funds - 4.8% | |||
Fidelity Cash Central Fund 1.61% (d) | 63,654,153 | $63,667 | |
Fidelity Securities Lending Cash Central Fund 1.61% (d)(e) | 38,610,747 | 38,615 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $102,278) | 102,282 | ||
TOTAL INVESTMENT IN SECURITIES - 101.8% | |||
(Cost $1,910,979) | 2,159,332 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (38,503) | ||
NET ASSETS - 100% | $2,120,829 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount (000s) | Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini S&P MidCap 400 Index Contracts (United States) | 83 | Dec. 2019 | $16,683 | $151 | $151 |
The notional amount of futures purchased as a percentage of Net Assets is 0.8%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $759,000.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $1,433 |
Fidelity Securities Lending Cash Central Fund | 168 |
Total | $1,601 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $62,469 | $62,469 | $-- | $-- |
Consumer Discretionary | 256,403 | 256,403 | -- | -- |
Consumer Staples | 56,182 | 56,182 | -- | -- |
Energy | 41,726 | 41,726 | -- | -- |
Financials | 332,849 | 332,849 | -- | -- |
Health Care | 220,115 | 220,115 | -- | -- |
Industrials | 333,783 | 333,783 | -- | -- |
Information Technology | 308,835 | 300,124 | 8,711 | -- |
Materials | 123,286 | 123,286 | -- | -- |
Real Estate | 226,774 | 226,774 | -- | -- |
Utilities | 93,659 | 93,659 | -- | -- |
U.S. Government and Government Agency Obligations | 969 | -- | 969 | -- |
Money Market Funds | 102,282 | 102,282 | -- | -- |
Total Investments in Securities: | $2,159,332 | $2,149,652 | $9,680 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $151 | $151 | $-- | $-- |
Total Assets | $151 | $151 | $-- | $-- |
Total Derivative Instruments: | $151 | $151 | $-- | $-- |
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, 2019. 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) | $151 | $0 |
Total Equity Risk | 151 | 0 |
Total Value of Derivatives | $151 | $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 Total accumulated earnings (loss).
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 | 88.9% |
United Kingdom | 3.1% |
Bermuda | 2.1% |
Canada | 1.1% |
Denmark | 1.0% |
Others (Individually Less Than 1%) | 3.8% |
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, 2019 | |
Assets | ||
Investment in securities, at value (including securities loaned of $37,641) — See accompanying schedule: Unaffiliated issuers (cost $1,808,701) | $2,057,050 | |
Fidelity Central Funds (cost $102,278) | 102,282 | |
Total Investment in Securities (cost $1,910,979) | $2,159,332 | |
Cash | 48 | |
Receivable for investments sold | 1,465 | |
Receivable for fund shares sold | 932 | |
Dividends receivable | 2,532 | |
Distributions receivable from Fidelity Central Funds | 88 | |
Prepaid expenses | 3 | |
Other receivables | 656 | |
Total assets | 2,165,056 | |
Liabilities | ||
Payable for investments purchased | $1,514 | |
Payable for fund shares redeemed | 1,832 | |
Accrued management fee | 1,305 | |
Distribution and service plan fees payable | 385 | |
Payable for daily variation margin on futures contracts | 176 | |
Other affiliated payables | 341 | |
Other payables and accrued expenses | 63 | |
Collateral on securities loaned | 38,611 | |
Total liabilities | 44,227 | |
Net Assets | $2,120,829 | |
Net Assets consist of: | ||
Paid in capital | $1,796,357 | |
Total accumulated earnings (loss) | 324,472 | |
Net Assets | $2,120,829 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($623,090 ÷ 17,273 shares)(a) | $36.07 | |
Maximum offering price per share (100/94.25 of $36.07) | $38.27 | |
Class M: | ||
Net Asset Value and redemption price per share ($543,658 ÷ 14,978 shares)(a) | $36.30 | |
Maximum offering price per share (100/96.50 of $36.30) | $37.62 | |
Class C: | ||
Net Asset Value and offering price per share ($35,234 ÷ 1,096 shares)(a) | $32.15 | |
Fidelity Stock Selector Mid Cap Fund: | ||
Net Asset Value, offering price and redemption price per share ($361,598 ÷ 9,516 shares) | $38.00 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($312,007 ÷ 8,179 shares) | $38.15 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($245,242 ÷ 6,433 shares) | $38.12 |
(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
Amounts in thousands | Year ended November 30, 2019 | |
Investment Income | ||
Dividends | $36,732 | |
Interest | 23 | |
Income from Fidelity Central Funds (including $168 from security lending) | 1,601 | |
Total income | 38,356 | |
Expenses | ||
Management fee | ||
Basic fee | $10,893 | |
Performance adjustment | 2,507 | |
Transfer agent fees | 3,955 | |
Distribution and service plan fees | 4,687 | |
Accounting and security lending fees | 618 | |
Custodian fees and expenses | 52 | |
Independent trustees' fees and expenses | 12 | |
Registration fees | 129 | |
Audit | 77 | |
Legal | 14 | |
Miscellaneous | 14 | |
Total expenses before reductions | 22,958 | |
Expense reductions | (16) | |
Total expenses after reductions | 22,942 | |
Net investment income (loss) | 15,414 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 72,761 | |
Fidelity Central Funds | 2 | |
Foreign currency transactions | (5) | |
Futures contracts | (126) | |
Total net realized gain (loss) | 72,632 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 147,604 | |
Fidelity Central Funds | 1 | |
Assets and liabilities in foreign currencies | 5 | |
Futures contracts | 151 | |
Total change in net unrealized appreciation (depreciation) | 147,761 | |
Net gain (loss) | 220,393 | |
Net increase (decrease) in net assets resulting from operations | $235,807 |
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, 2019 | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $15,414 | $14,138 |
Net realized gain (loss) | 72,632 | 359,827 |
Change in net unrealized appreciation (depreciation) | 147,761 | (288,501) |
Net increase (decrease) in net assets resulting from operations | 235,807 | 85,464 |
Distributions to shareholders | (314,397) | (110,481) |
Share transactions - net increase (decrease) | 218,415 | (543,193) |
Total increase (decrease) in net assets | 139,825 | (568,210) |
Net Assets | ||
Beginning of period | 1,981,004 | 2,549,214 |
End of period | $2,120,829 | $1,981,004 |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.28 | $39.74 | $33.13 | $32.01 | $31.80 |
Income from Investment Operations | |||||
Net investment income (loss)A | .25 | .26 | .13 | .20 | .08 |
Net realized and unrealized gain (loss) | 2.80B | 1.04 | 6.68 | 1.49 | .13 |
Total from investment operations | 3.05 | 1.30 | 6.81 | 1.69 | .21 |
Distributions from net investment income | (.25) | (.11) | (.19) | (.04) | – |
Distributions from net realized gain | (6.01) | (1.65) | (.01) | (.53) | – |
Total distributions | (6.26) | (1.76) | (.20) | (.57) | – |
Net asset value, end of period | $36.07 | $39.28 | $39.74 | $33.13 | $32.01 |
Total ReturnC,D | 12.13%B | 3.36% | 20.64% | 5.49% | .66% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.14% | .93% | .87% | .88% | .98% |
Expenses net of fee waivers, if any | 1.14% | .92% | .87% | .88% | .98% |
Expenses net of all reductions | 1.14% | .91% | .86% | .88% | .97% |
Net investment income (loss) | .75% | .64% | .36% | .64% | .24% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $623 | $532 | $564 | $546 | $593 |
Portfolio turnover rateG | 57% | 81% | 84% | 98% | 109% |
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 $.06 per share. Excluding these litigation proceeds, the total return would have been 11.95%
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 M
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.43 | $39.89 | $33.25 | $32.16 | $32.02 |
Income from Investment Operations | |||||
Net investment income (loss)A | .17 | .16 | .04 | .13 | – |
Net realized and unrealized gain (loss) | 2.85B | 1.04 | 6.71 | 1.49 | .14 |
Total from investment operations | 3.02 | 1.20 | 6.75 | 1.62 | .14 |
Distributions from net investment income | (.14) | (.01) | (.11) | – | – |
Distributions from net realized gain | (6.01) | (1.65) | (.01) | (.53) | – |
Total distributions | (6.15) | (1.66) | (.11)C | (.53) | – |
Net asset value, end of period | $36.30 | $39.43 | $39.89 | $33.25 | $32.16 |
Total ReturnD,E | 11.88%B | 3.10% | 20.37% | 5.22% | .44% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.38% | 1.17% | 1.11% | 1.12% | 1.22% |
Expenses net of fee waivers, if any | 1.38% | 1.17% | 1.11% | 1.12% | 1.21% |
Expenses net of all reductions | 1.38% | 1.15% | 1.10% | 1.11% | 1.21% |
Net investment income (loss) | .51% | .39% | .11% | .41% | .01% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $544 | $536 | $606 | $591 | $681 |
Portfolio turnover rateH | 57% | 81% | 84% | 98% | 109% |
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 $.06 per share. Excluding these litigation proceeds, the total return would have been 11.70%
C 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.
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 Stock Selector Mid Cap Fund Class C
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $35.67 | $36.25 | $30.28 | $29.48 | $29.51 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.01) | (.05) | (.13) | (.03) | (.15) |
Net realized and unrealized gain (loss) | 2.46B | .96 | 6.10 | 1.36 | .12 |
Total from investment operations | 2.45 | .91 | 5.97 | 1.33 | (.03) |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (5.97) | (1.49) | – | (.53) | – |
Total distributions | (5.97) | (1.49) | – | (.53) | – |
Net asset value, end of period | $32.15 | $35.67 | $36.25 | $30.28 | $29.48 |
Total ReturnC,D | 11.27%B | 2.59% | 19.72% | 4.71% | (.10)% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.93% | 1.69% | 1.63% | 1.63% | 1.74% |
Expenses net of fee waivers, if any | 1.93% | 1.69% | 1.63% | 1.63% | 1.73% |
Expenses net of all reductions | 1.93% | 1.67% | 1.62% | 1.63% | 1.73% |
Net investment income (loss) | (.04)% | (.12)% | (.40)% | (.11)% | (.51)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $35 | $114 | $142 | $140 | $155 |
Portfolio turnover rateG | 57% | 81% | 84% | 98% | 109% |
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 $.05 per share. Excluding these litigation proceeds, the total return would have been 11.09%
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 Stock Selector Mid Cap Fund
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.00 | $41.43 | $34.53 | $33.34 | $33.14 |
Income from Investment Operations | |||||
Net investment income (loss)A | .34 | .33 | .20 | .28 | .16 |
Net realized and unrealized gain (loss) | 2.99B | 1.09 | 6.96 | 1.55 | .14 |
Total from investment operations | 3.33 | 1.42 | 7.16 | 1.83 | .30 |
Distributions from net investment income | (.32) | (.20) | (.26) | (.12) | (.10) |
Distributions from net realized gain | (6.01) | (1.65) | (.01) | (.53) | – |
Total distributions | (6.33) | (1.85) | (.26)C | (.64)D | (.10) |
Net asset value, end of period | $38.00 | $41.00 | $41.43 | $34.53 | $33.34 |
Total ReturnE | 12.38%B | 3.53% | 20.87% | 5.73% | .90% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .94% | .77% | .70% | .64% | .75% |
Expenses net of fee waivers, if any | .94% | .76% | .70% | .64% | .74% |
Expenses net of all reductions | .94% | .75% | .69% | .63% | .74% |
Net investment income (loss) | .95% | .80% | .53% | .89% | .48% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $362 | $502 | $545 | $222 | $486 |
Portfolio turnover rateH | 57% | 81% | 84% | 98% | 109% |
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 $.06 per share. Excluding these litigation proceeds, the total return would have been 12.20%
C 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.
D 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.
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 Stock Selector Mid Cap Fund Class I
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.11 | $41.51 | $34.60 | $33.39 | $33.22 |
Income from Investment Operations | |||||
Net investment income (loss)A | .35 | .36 | .23 | .28 | .13 |
Net realized and unrealized gain (loss) | 3.01B | 1.10 | 6.96 | 1.56 | .14 |
Total from investment operations | 3.36 | 1.46 | 7.19 | 1.84 | .27 |
Distributions from net investment income | (.31) | (.21) | (.27) | (.11) | (.10) |
Distributions from net realized gain | (6.01) | (1.65) | (.01) | (.53) | – |
Total distributions | (6.32) | (1.86) | (.28) | (.63)C | (.10) |
Net asset value, end of period | $38.15 | $41.11 | $41.51 | $34.60 | $33.39 |
Total ReturnD | 12.41%B | 3.62% | 20.92% | 5.75% | .80% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .91% | .69% | .63% | .64% | .83% |
Expenses net of fee waivers, if any | .91% | .69% | .63% | .64% | .83% |
Expenses net of all reductions | .91% | .67% | .62% | .64% | .82% |
Net investment income (loss) | .98% | .87% | .60% | .88% | .39% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $312 | $279 | $683 | $523 | $479 |
Portfolio turnover rateG | 57% | 81% | 84% | 98% | 109% |
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 $.06 per share. Excluding these litigation proceeds, the total return would have been 12.23%
C Total distributions of $.63 per share is comprised of distributions from net investment income of $.105 and distributions from net realized gain of $.529 per share.
D Total returns 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 Z
Years ended November 30, | 2019 | 2018 | 2017 A |
Selected Per–Share Data | |||
Net asset value, beginning of period | $41.15 | $41.57 | $35.79 |
Income from Investment Operations | |||
Net investment income (loss)B | .41 | .43 | .23 |
Net realized and unrealized gain (loss) | 2.99C | 1.08 | 5.55 |
Total from investment operations | 3.40 | 1.51 | 5.78 |
Distributions from net investment income | (.42) | (.28) | – |
Distributions from net realized gain | (6.01) | (1.65) | – |
Total distributions | (6.43) | (1.93) | – |
Net asset value, end of period | $38.12 | $41.15 | $41.57 |
Total ReturnD,E | 12.59%C | 3.75% | 16.15% |
Ratios to Average Net AssetsF,G | |||
Expenses before reductions | .75% | .53% | .48%H |
Expenses net of fee waivers, if any | .75% | .53% | .47%H |
Expenses net of all reductions | .75% | .52% | .46%H |
Net investment income (loss) | 1.14% | 1.03% | .69%H |
Supplemental Data | |||
Net assets, end of period (in millions) | $245 | $18 | $9 |
Portfolio turnover rateI | 57% | 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 Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.06 per share. Excluding these litigation proceeds, the total return would have been 12.41%
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, 2019
(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. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
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 ranged from less than .005% to .01%.
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. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2019 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, 2019, 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, passive foreign investment companies (PFIC), 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 | $348,211 |
Gross unrealized depreciation | (106,778) |
Net unrealized appreciation (depreciation) | $241,433 |
Tax Cost | $1,917,899 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $18,933 |
Undistributed long-term capital gain | $64,112 |
Net unrealized appreciation (depreciation) on securities and other investments | $241,428 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $31,377 | $ 53,420 |
Long-term Capital Gains | 283,020 | 57,061 |
Total | $314,397 | $ 110,481 |
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 $1,123,040 and $1,163,642, 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 .66% 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% | $1,440 | $29 |
Class M | .25% | .25% | 2,657 | 40 |
Class C | .75% | .25% | 590 | 43 |
$4,687 | $112 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class 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 | $52 |
Class M | 14 |
Class C(a) | 3 |
$69 |
(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 | $1,084 | .19 |
Class M | 952 | .18 |
Class C | 122 | .21 |
Fidelity Stock Selector Mid Cap Fund | 1,173 | .24 |
Class I | 589 | .20 |
Class Z | 35 | .04 |
$3,955 |
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. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .03%.
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Stock Selector Mid Cap Fund | $37 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $5 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $5. 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 $1 from securities loaned to NFS, as affiliated borrower.
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 $1 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $15.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Class A | $84,647 | $24,662 |
Class M | 83,088 | 24,902 |
Class C | 18,993 | 5,817 |
Fidelity Stock Selector Mid Cap Fund | 82,532 | 23,962 |
Class I | 42,535 | 30,651 |
Class Z | 2,602 | 487 |
Total | $314,397 | $110,481 |
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, 2019 | Year ended November 30, 2018 | Year ended November 30, 2019 | Year ended November 30, 2018 | |
Class A | ||||
Shares sold | 3,779 | 1,009 | $125,147 | $40,393 |
Reinvestment of distributions | 2,756 | 603 | 78,073 | 23,126 |
Shares redeemed | (2,815) | (2,254) | (93,979) | (89,934) |
Net increase (decrease) | 3,720 | (642) | $109,241 | $(26,415) |
Class M | ||||
Shares sold | 1,917 | 943 | $63,921 | $37,889 |
Reinvestment of distributions | 2,831 | 628 | 80,879 | 24,265 |
Shares redeemed | (3,357) | (3,179) | (113,233) | (127,217) |
Net increase (decrease) | 1,391 | (1,608) | $31,567 | $(65,063) |
Class C | ||||
Shares sold | 276 | 105 | $8,212 | $3,842 |
Reinvestment of distributions | 737 | 153 | 18,739 | 5,355 |
Shares redeemed | (3,110) | (989) | (92,128) | (35,928) |
Net increase (decrease) | (2,097) | (731) | $(65,177) | $(26,731) |
Fidelity Stock Selector Mid Cap Fund | ||||
Shares sold | 4,085 | 2,202 | $146,301 | $91,837 |
Reinvestment of distributions | 2,719 | 590 | 81,003 | 23,601 |
Shares redeemed | (9,537) | (3,700) | (335,660) | (155,546) |
Net increase (decrease) | (2,733) | (908) | $(108,356) | $(40,108) |
Class I | ||||
Shares sold | 2,002 | 12,470 | $69,438 | $506,015 |
Reinvestment of distributions | 1,375 | 746 | 41,120 | 29,881 |
Shares redeemed | (1,982) | (22,883) | (69,771) | (930,143) |
Net increase (decrease) | 1,395 | (9,667) | $40,787 | $(394,247) |
Class Z | ||||
Shares sold | 6,216 | 265 | $219,042 | $11,054 |
Reinvestment of distributions | 76 | 12 | 2,264 | 461 |
Shares redeemed | (297) | (51) | (10,953) | (2,144) |
Net increase (decrease) | 5,995 | 226 | $210,353 | $9,371 |
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. (FIIOC) converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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, 2019, 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, 2019, 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, 2019, 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 13, 2020
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 302 funds. Mr. Wiley oversees 199 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 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Class A | 1.20% | |||
Actual | $1,000.00 | $1,118.80 | $6.37 | |
Hypothetical-C | $1,000.00 | $1,019.05 | $6.07 | |
Class M | 1.44% | |||
Actual | $1,000.00 | $1,117.60 | $7.64 | |
Hypothetical-C | $1,000.00 | $1,017.85 | $7.28 | |
Class C | 2.05% | |||
Actual | $1,000.00 | $1,114.80 | $10.87 | |
Hypothetical-C | $1,000.00 | $1,014.79 | $10.35 | |
Fidelity Stock Selector Mid Cap Fund | .99% | |||
Actual | $1,000.00 | $1,120.30 | $5.26 | |
Hypothetical-C | $1,000.00 | $1,020.10 | $5.01 | |
Class I | .96% | |||
Actual | $1,000.00 | $1,120.40 | $5.10 | |
Hypothetical-C | $1,000.00 | $1,020.26 | $4.86 | |
Class Z | .77% | |||
Actual | $1,000.00 | $1,121.20 | $4.09 | |
Hypothetical-C | $1,000.00 | $1,021.21 | $3.90 |
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 | 12/30/19 | 12/27/19 | $0.210 | $1.270 |
Class M | 12/30/19 | 12/27/19 | $0.118 | $1.270 |
Class C | 12/30/19 | 12/27/19 | $0.000 | $1.114 |
Fidelity Stock Selector Mid Cap Fund | 12/30/19 | 12/27/19 | $0.244 | $1.270 |
Class I | 12/30/19 | 12/27/19 | $0.289 | $1.270 |
Class Z | 12/30/19 | 12/27/19 | $0.353 | $1.270 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019 $64,117,168, or, if subsequently determined to be different, the net capital gain of such year.
Class A designates 62%; Class M designates 75%; Class C designates 100%; Fidelity Stock Selector Mid Cap Fund designates 56%; Class I designates 57% and Class Z designates 50% of the dividends distributed in December 2018, during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A designates 75%; Class M designates 91%; Class C designates 100%; Fidelity Stock Selector Mid Cap Fund designates 68%; Class I designates 69% and Class Z designates 60% of the dividends distributed in December 2018, 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 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Stock Selector Mid Cap Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.MC-ANN-0120
1.539186.122
Fidelity Advisor® Large Cap Fund
Annual Report
November 30, 2019
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
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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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 7.63% | 7.55% | 12.23% |
Class M (incl. 3.50% sales charge) | 9.94% | 7.78% | 12.20% |
Class C (incl. contingent deferred sales charge) | 12.37% | 8.01% | 12.05% |
Class I | 14.54% | 9.12% | 13.22% |
Class Z | 14.67% | 9.20% | 13.26% |
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, 2009, 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/0001379491-20-000191/img552792628_740.jpg)
Period Ending Values | ||
$31,692 | Fidelity Advisor® Large Cap Fund - Class A | |
$35,289 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Portfolio Manager Matthew Fruhan: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) gained roughly 13% to 15%, trailing the benchmark S&P 500® index. The fund's underperformance of the benchmark the past 12 months was due to sector positioning, especially a large overweight in energy and an underweight in information technology. Security selection contributed overall, led by my picks in tech and industrials. Our biggest individual relative detractor was integrated energy company Exxon Mobil (-10%), which struggled along with sluggish oil prices. It also hurt to overweight Altria Group (-3%), as concern about its ownership stake in e-cigarette manufacturer Juul Labs hampered the stock. Other notable relative detractors were Apple (+52%), a consumer electronics company I significantly underweighted, and social-media giant Facebook (+43%), a benchmark component the fund did not hold. Exxon Mobil, Altria and Apple were among the fund's largest holdings. In contrast, the top contributor was industrial conglomerate General Electric (+56%), our largest holding on November 30 and a stock that I believed was significantly undervalued. Semiconductor and telecommunications equipment firm Qualcomm (+50%) was another big contributor, benefiting from the successful resolution of a longstanding licensing dispute with Apple. Lastly, lacking exposure to benchmark component Amazon.com (+7%) also helped, as shares of the online retailer lagged the benchmark.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, 2019
% of fund's net assets | |
General Electric Co. | 6.4 |
Microsoft Corp. | 5.2 |
Exxon Mobil Corp. | 4.5 |
Comcast Corp. Class A | 3.7 |
Altria Group, Inc. | 3.6 |
Bank of America Corp. | 3.1 |
Wells Fargo & Co. | 2.9 |
Bristol-Myers Squibb Co. | 2.4 |
Apple, Inc. | 2.3 |
Qualcomm, Inc. | 2.2 |
36.3 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Health Care | 19.0 |
Financials | 18.5 |
Information Technology | 14.9 |
Industrials | 14.0 |
Consumer Staples | 9.0 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019* | ||
Stocks | 97.3% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.5% |
* Foreign investments - 9.7%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 97.3% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 8.3% | |||
Diversified Telecommunication Services - 1.1% | |||
Verizon Communications, Inc. | 196,676 | $11,847,762 | |
Entertainment - 1.9% | |||
Activision Blizzard, Inc. | 60,411 | 3,312,335 | |
Electronic Arts, Inc. (a) | 44,503 | 4,495,248 | |
The Walt Disney Co. | 26,175 | 3,967,607 | |
Vivendi SA | 290,634 | 7,979,896 | |
19,755,086 | |||
Interactive Media & Services - 0.7% | |||
Alphabet, Inc.: | |||
Class A (a) | 2,799 | 3,650,148 | |
Class C (a) | 2,877 | 3,754,370 | |
7,404,518 | |||
Media - 4.6% | |||
Comcast Corp. Class A | 877,623 | 38,747,055 | |
Discovery Communications, Inc. Class A (a) | 49,837 | 1,641,631 | |
Interpublic Group of Companies, Inc. | 153,520 | 3,438,848 | |
Omnicom Group, Inc. | 8,630 | 685,912 | |
Sinclair Broadcast Group, Inc. Class A | 91,901 | 3,200,912 | |
47,714,358 | |||
TOTAL COMMUNICATION SERVICES | 86,721,724 | ||
CONSUMER DISCRETIONARY - 3.5% | |||
Distributors - 0.3% | |||
LKQ Corp. (a) | 84,702 | 2,988,287 | |
Hotels, Restaurants & Leisure - 0.1% | |||
Drive Shack, Inc. (a) | 70,750 | 271,680 | |
Household Durables - 0.9% | |||
Mohawk Industries, Inc. (a) | 46,406 | 6,467,604 | |
Whirlpool Corp. | 22,234 | 3,181,685 | |
9,649,289 | |||
Internet & Direct Marketing Retail - 1.1% | |||
Ocado Group PLC (a) | 6,100 | 104,531 | |
The Booking Holdings, Inc. (a) | 5,909 | 11,250,913 | |
11,355,444 | |||
Leisure Products - 0.0% | |||
Brunswick Corp. | 2,534 | 148,923 | |
Specialty Retail - 0.9% | |||
Lowe's Companies, Inc. | 68,530 | 8,039,254 | |
TJX Companies, Inc. | 25,299 | 1,546,528 | |
9,585,782 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Capri Holdings Ltd. (a) | 9,619 | 357,250 | |
PVH Corp. | 18,159 | 1,760,697 | |
Tapestry, Inc. | 8,146 | 219,046 | |
2,336,993 | |||
TOTAL CONSUMER DISCRETIONARY | 36,336,398 | ||
CONSUMER STAPLES - 9.0% | |||
Beverages - 1.0% | |||
The Coca-Cola Co. | 195,981 | 10,465,385 | |
Food & Staples Retailing - 2.0% | |||
Walgreens Boots Alliance, Inc. | 63,821 | 3,803,732 | |
Walmart, Inc. | 142,095 | 16,922,094 | |
20,725,826 | |||
Food Products - 0.3% | |||
Nestle SA sponsored ADR | 28,772 | 2,990,562 | |
Household Products - 1.1% | |||
Colgate-Palmolive Co. | 1,600 | 108,512 | |
Procter & Gamble Co. | 70,851 | 8,648,073 | |
Spectrum Brands Holdings, Inc. | 37,667 | 2,354,941 | |
11,111,526 | |||
Personal Products - 0.0% | |||
Edgewell Personal Care Co. (a) | 7,012 | 218,494 | |
Tobacco - 4.6% | |||
Altria Group, Inc. | 769,280 | 38,233,216 | |
British American Tobacco PLC sponsored ADR | 182,347 | 7,222,765 | |
Philip Morris International, Inc. | 38,926 | 3,228,133 | |
48,684,114 | |||
TOTAL CONSUMER STAPLES | 94,195,907 | ||
ENERGY - 8.4% | |||
Energy Equipment & Services - 0.1% | |||
Schlumberger Ltd. | 20,900 | 756,580 | |
Oil, Gas & Consumable Fuels - 8.3% | |||
Cenovus Energy, Inc. (Canada) | 1,651,062 | 14,704,557 | |
EOG Resources, Inc. | 2,900 | 205,610 | |
Equinor ASA sponsored ADR | 536,775 | 9,946,441 | |
Exxon Mobil Corp. | 684,768 | 46,653,244 | |
Hess Corp. | 172,035 | 10,681,653 | |
Kosmos Energy Ltd. | 798,684 | 4,768,143 | |
Noble Energy, Inc. | 25,081 | 520,682 | |
87,480,330 | |||
TOTAL ENERGY | 88,236,910 | ||
FINANCIALS - 18.5% | |||
Banks - 11.8% | |||
Bank of America Corp. | 978,814 | 32,614,082 | |
Citigroup, Inc. | 72,609 | 5,454,388 | |
First Hawaiian, Inc. | 18,611 | 531,158 | |
JPMorgan Chase & Co. | 164,918 | 21,729,596 | |
M&T Bank Corp. | 10,428 | 1,717,909 | |
PNC Financial Services Group, Inc. | 81,141 | 12,431,613 | |
SunTrust Banks, Inc. | 150,909 | 10,690,394 | |
U.S. Bancorp | 134,990 | 8,103,450 | |
Wells Fargo & Co. | 560,403 | 30,519,547 | |
123,792,137 | |||
Capital Markets - 4.0% | |||
Cboe Global Markets, Inc. | 7,601 | 903,759 | |
Charles Schwab Corp. | 52,614 | 2,604,393 | |
KKR & Co. LP | 152,591 | 4,499,909 | |
Morgan Stanley | 88,425 | 4,375,269 | |
Northern Trust Corp. | 131,991 | 14,154,715 | |
Raymond James Financial, Inc. | 9,162 | 822,931 | |
State Street Corp. | 193,319 | 14,518,257 | |
41,879,233 | |||
Consumer Finance - 0.0% | |||
Shriram Transport Finance Co. Ltd. | 26,100 | 410,039 | |
Diversified Financial Services - 1.0% | |||
Berkshire Hathaway, Inc. Class B (a) | 18,738 | 4,127,981 | |
KKR Renaissance Co-Invest LP unit (a)(b) | 14,257 | 5,849,439 | |
9,977,420 | |||
Insurance - 0.4% | |||
Chubb Ltd. | 22,295 | 3,377,247 | |
The Travelers Companies, Inc. | 8,900 | 1,216,808 | |
4,594,055 | |||
Thrifts & Mortgage Finance - 1.3% | |||
MGIC Investment Corp. | 152,476 | 2,197,179 | |
Radian Group, Inc. | 432,731 | 11,181,769 | |
13,378,948 | |||
TOTAL FINANCIALS | 194,031,832 | ||
HEALTH CARE - 19.0% | |||
Biotechnology - 2.9% | |||
AbbVie, Inc. | 55,826 | 4,897,615 | |
Alexion Pharmaceuticals, Inc. (a) | 67,356 | 7,674,543 | |
Alnylam Pharmaceuticals, Inc. (a) | 17,019 | 1,993,606 | |
Amgen, Inc. | 24,052 | 5,645,485 | |
Gritstone Oncology, Inc. (a) | 61,940 | 539,497 | |
Heron Therapeutics, Inc. (a) | 12,316 | 314,797 | |
Insmed, Inc. (a) | 82,286 | 1,896,692 | |
Intercept Pharmaceuticals, Inc. (a)(c) | 66,750 | 7,233,698 | |
30,195,933 | |||
Health Care Equipment & Supplies - 1.0% | |||
Becton, Dickinson & Co. | 11,897 | 3,075,375 | |
Boston Scientific Corp.(a) | 177,826 | 7,690,975 | |
10,766,350 | |||
Health Care Providers & Services - 7.3% | |||
AmerisourceBergen Corp. | 75,179 | 6,608,986 | |
Cardinal Health, Inc. | 151,082 | 8,314,042 | |
Cigna Corp. | 67,903 | 13,575,168 | |
Covetrus, Inc. (a)(c) | 46,621 | 667,147 | |
CVS Health Corp. | 285,298 | 21,474,380 | |
McKesson Corp. | 87,206 | 12,613,476 | |
UnitedHealth Group, Inc. | 44,999 | 12,593,870 | |
75,847,069 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B (a) | 114,062 | 158,546 | |
Life Sciences Tools & Services - 0.1% | |||
Avantor, Inc. | 81,374 | 1,393,937 | |
Pharmaceuticals - 7.7% | |||
Bayer AG | 206,166 | 15,570,607 | |
Bristol-Myers Squibb Co. | 439,317 | 25,014,710 | |
GlaxoSmithKline PLC sponsored ADR | 395,038 | 17,966,328 | |
Johnson & Johnson | 147,584 | 20,291,324 | |
TherapeuticsMD, Inc. (a)(c) | 631,352 | 1,584,694 | |
80,427,663 | |||
TOTAL HEALTH CARE | 198,789,498 | ||
INDUSTRIALS - 14.0% | |||
Aerospace & Defense - 1.3% | |||
General Dynamics Corp. | 17,329 | 3,149,372 | |
Huntington Ingalls Industries, Inc. | 9,619 | 2,420,814 | |
The Boeing Co. | 3,667 | 1,342,782 | |
United Technologies Corp. | 47,792 | 7,089,465 | |
14,002,433 | |||
Air Freight & Logistics - 2.3% | |||
C.H. Robinson Worldwide, Inc. | 12,233 | 940,106 | |
FedEx Corp. | 26,892 | 4,304,065 | |
United Parcel Service, Inc. Class B | 150,863 | 18,062,827 | |
XPO Logistics, Inc. (a) | 9,799 | 810,279 | |
24,117,277 | |||
Commercial Services & Supplies - 0.2% | |||
Healthcare Services Group, Inc. (c) | 3,956 | 99,493 | |
Stericycle, Inc. (a) | 28,587 | 1,795,835 | |
1,895,328 | |||
Electrical Equipment - 0.5% | |||
Acuity Brands, Inc. | 20,056 | 2,622,924 | |
Hubbell, Inc. Class B | 16,485 | 2,423,625 | |
Melrose Industries PLC | 1 | 3 | |
5,046,552 | |||
Industrial Conglomerates - 6.5% | |||
3M Co. | 2,359 | 400,487 | |
General Electric Co. | 5,980,008 | 67,394,689 | |
67,795,176 | |||
Machinery - 0.7% | |||
Flowserve Corp. | 66,119 | 3,219,995 | |
Fortive Corp. | 2,900 | 209,293 | |
Westinghouse Air Brake Co. | 47,345 | 3,719,897 | |
7,149,185 | |||
Professional Services - 0.2% | |||
Acacia Research Corp. (a) | 36,900 | 109,593 | |
IHS Markit Ltd. (a) | 28,521 | 2,072,051 | |
RELX PLC (London Stock Exchange) | 21,300 | 515,961 | |
2,697,605 | |||
Road & Rail - 2.3% | |||
J.B. Hunt Transport Services, Inc. | 60,715 | 7,019,868 | |
Knight-Swift Transportation Holdings, Inc. Class A (c) | 251,258 | 9,294,033 | |
Lyft, Inc. | 45,916 | 2,248,966 | |
Union Pacific Corp. | 32,805 | 5,773,352 | |
24,336,219 | |||
TOTAL INDUSTRIALS | 147,039,775 | ||
INFORMATION TECHNOLOGY - 14.9% | |||
Communications Equipment - 0.1% | |||
Cisco Systems, Inc. | 31,544 | 1,429,259 | |
IT Services - 2.3% | |||
MasterCard, Inc. Class A | 11,415 | 3,335,805 | |
Paychex, Inc. | 6,762 | 582,343 | |
Unisys Corp. (a) | 163,962 | 1,865,888 | |
Visa, Inc. Class A | 97,127 | 17,920,903 | |
23,704,939 | |||
Semiconductors & Semiconductor Equipment - 2.8% | |||
Analog Devices, Inc. | 10,518 | 1,188,008 | |
Applied Materials, Inc. | 53,516 | 3,098,576 | |
Marvell Technology Group Ltd. | 25,801 | 680,372 | |
NVIDIA Corp. | 2,407 | 521,693 | |
Qualcomm, Inc. | 270,201 | 22,575,294 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 13,135 | 697,337 | |
28,761,280 | |||
Software - 7.4% | |||
Autodesk, Inc. (a) | 19,241 | 3,480,697 | |
Dynatrace, Inc. (c) | 26,865 | 713,803 | |
Microsoft Corp. | 358,353 | 54,247,477 | |
Oracle Corp. | 140,028 | 7,861,172 | |
Parametric Technology Corp. (a) | 7,000 | 536,200 | |
SAP SE sponsored ADR | 80,317 | 10,919,096 | |
77,758,445 | |||
Technology Hardware, Storage & Peripherals - 2.3% | |||
Apple, Inc. | 91,042 | 24,330,975 | |
TOTAL INFORMATION TECHNOLOGY | 155,984,898 | ||
MATERIALS - 0.9% | |||
Chemicals - 0.7% | |||
Corteva, Inc. | 41,203 | 1,072,102 | |
International Flavors & Fragrances, Inc. | 7,102 | 1,003,015 | |
Intrepid Potash, Inc. (a) | 367,016 | 836,796 | |
Nutrien Ltd. | 84,205 | 3,994,397 | |
The Scotts Miracle-Gro Co. Class A | 3,776 | 381,678 | |
7,287,988 | |||
Metals & Mining - 0.2% | |||
BHP Billiton Ltd. sponsored ADR (c) | 38,065 | 1,961,489 | |
TOTAL MATERIALS | 9,249,477 | ||
REAL ESTATE - 0.6% | |||
Equity Real Estate Investment Trusts (REITs) - 0.6% | |||
American Tower Corp. | 9,709 | 2,078,017 | |
Equinix, Inc. | 5,742 | 3,254,853 | |
Simon Property Group, Inc. | 5,394 | 815,627 | |
6,148,497 | |||
UTILITIES - 0.2% | |||
Electric Utilities - 0.1% | |||
Duke Energy Corp. | 7,282 | 642,054 | |
Southern Co. | 14,741 | 913,795 | |
1,555,849 | |||
Multi-Utilities - 0.1% | |||
Sempra Energy | 4,034 | 594,087 | |
TOTAL UTILITIES | 2,149,936 | ||
TOTAL COMMON STOCKS | |||
(Cost $780,590,012) | 1,018,884,852 | ||
Other - 0.2% | |||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) (b)(d)(e) | |||
(Cost $3,301,608) | 3,301,608 | 1,542,181 | |
Money Market Funds - 4.1% | |||
Fidelity Cash Central Fund 1.61% (f) | 25,592,384 | 25,597,503 | |
Fidelity Securities Lending Cash Central Fund 1.61% (f)(g) | 17,817,913 | 17,819,694 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $43,417,197) | 43,417,197 | ||
TOTAL INVESTMENT IN SECURITIES - 101.6% | |||
(Cost $827,308,817) | 1,063,844,230 | ||
NET OTHER ASSETS (LIABILITIES) - (1.6)% | (16,645,573) | ||
NET ASSETS - 100% | $1,047,198,657 |
Legend
(a) Non-income producing
(b) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,391,620 or 0.7% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(e) 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 |
KKR Renaissance Co-Invest LP unit | 7/25/13 | $1,504,114 |
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 | $318,027 |
Fidelity Securities Lending Cash Central Fund | 166,624 |
Total | $484,651 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $86,721,724 | $86,721,724 | $-- | $-- |
Consumer Discretionary | 36,336,398 | 36,336,398 | -- | -- |
Consumer Staples | 94,195,907 | 94,195,907 | -- | -- |
Energy | 88,236,910 | 88,236,910 | -- | -- |
Financials | 194,031,832 | 188,182,393 | 5,849,439 | -- |
Health Care | 198,789,498 | 183,218,891 | 15,570,607 | -- |
Industrials | 147,039,775 | 147,039,775 | -- | -- |
Information Technology | 155,984,898 | 155,984,898 | -- | -- |
Materials | 9,249,477 | 9,249,477 | -- | -- |
Real Estate | 6,148,497 | 6,148,497 | -- | -- |
Utilities | 2,149,936 | 2,149,936 | -- | -- |
Other | 1,542,181 | -- | -- | 1,542,181 |
Money Market Funds | 43,417,197 | 43,417,197 | -- | -- |
Total Investments in Securities: | $1,063,844,230 | $1,040,882,003 | $21,420,046 | $1,542,181 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2019 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $17,152,116) — See accompanying schedule: Unaffiliated issuers (cost $783,891,620) | $1,020,427,033 | |
Fidelity Central Funds (cost $43,417,197) | 43,417,197 | |
Total Investment in Securities (cost $827,308,817) | $1,063,844,230 | |
Restricted cash | 154,966 | |
Foreign currency held at value (cost $3) | 3 | |
Receivable for investments sold | 1,643,889 | |
Receivable for fund shares sold | 186,034 | |
Dividends receivable | 2,279,350 | |
Distributions receivable from Fidelity Central Funds | 39,552 | |
Prepaid expenses | 1,809 | |
Other receivables | 88,650 | |
Total assets | 1,068,238,483 | |
Liabilities | ||
Payable for investments purchased | $1,804,623 | |
Payable for fund shares redeemed | 657,517 | |
Accrued management fee | 253,973 | |
Distribution and service plan fees payable | 259,547 | |
Other affiliated payables | 181,984 | |
Other payables and accrued expenses | 58,787 | |
Collateral on securities loaned | 17,823,395 | |
Total liabilities | 21,039,826 | |
Net Assets | $1,047,198,657 | |
Net Assets consist of: | ||
Paid in capital | $733,088,152 | |
Total accumulated earnings (loss) | 314,110,505 | |
Net Assets | $1,047,198,657 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($423,325,022 ÷ 12,904,940 shares)(a) | $32.80 | |
Maximum offering price per share (100/94.25 of $32.80) | $34.80 | |
Class M: | ||
Net Asset Value and redemption price per share ($175,138,747 ÷ 5,358,227 shares)(a) | $32.69 | |
Maximum offering price per share (100/96.50 of $32.69) | $33.88 | |
Class C: | ||
Net Asset Value and offering price per share ($119,071,838 ÷ 4,092,880 shares)(a) | $29.09 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($301,067,224 ÷ 8,694,574 shares) | $34.63 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($28,595,826 ÷ 825,571 shares) | $34.64 |
(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
Year ended November 30, 2019 | ||
Investment Income | ||
Dividends | $26,962,553 | |
Non-Cash dividends | 1,756,355 | |
Income from Fidelity Central Funds (including $166,624 from security lending) | 484,651 | |
Total income | 29,203,559 | |
Expenses | ||
Management fee | ||
Basic fee | $5,995,343 | |
Performance adjustment | (1,347,190) | |
Transfer agent fees | 2,039,798 | |
Distribution and service plan fees | 3,122,393 | |
Accounting and security lending fees | 365,058 | |
Custodian fees and expenses | 35,629 | |
Independent trustees' fees and expenses | 6,581 | |
Registration fees | 89,915 | |
Audit | 58,410 | |
Legal | 9,658 | |
Miscellaneous | 7,946 | |
Total expenses before reductions | 10,383,541 | |
Expense reductions | (33,725) | |
Total expenses after reductions | 10,349,816 | |
Net investment income (loss) | 18,853,743 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 84,387,542 | |
Redemptions in-kind with affiliated entities | 38,293,813 | |
Fidelity Central Funds | 497 | |
Foreign currency transactions | (157) | |
Total net realized gain (loss) | 122,681,695 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (5,211,118) | |
Assets and liabilities in foreign currencies | (1,129) | |
Total change in net unrealized appreciation (depreciation) | (5,212,247) | |
Net gain (loss) | 117,469,448 | |
Net increase (decrease) in net assets resulting from operations | $136,323,191 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $18,853,743 | $15,089,949 |
Net realized gain (loss) | 122,681,695 | 165,234,743 |
Change in net unrealized appreciation (depreciation) | (5,212,247) | (127,512,263) |
Net increase (decrease) in net assets resulting from operations | 136,323,191 | 52,812,429 |
Distributions to shareholders | (156,407,970) | (97,436,803) |
Share transactions - net increase (decrease) | (143,854,088) | (129,052,235) |
Total increase (decrease) in net assets | (163,938,867) | (173,676,609) |
Net Assets | ||
Beginning of period | 1,211,137,524 | 1,384,814,133 |
End of period | $1,047,198,657 | $1,211,137,524 |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.76 | $34.98 | $30.27 | $28.12 | $29.60 |
Income from Investment Operations | |||||
Net investment income (loss)A | .51 | .40 | .39 | .34 | .25 |
Net realized and unrealized gain (loss) | 2.97 | .89 | 4.93 | 2.64 | (.74) |
Total from investment operations | 3.48 | 1.29 | 5.32 | 2.98 | (.49) |
Distributions from net investment income | (.45) | (.38) | (.33) | (.23) | (.14) |
Distributions from net realized gain | (3.99) | (2.13) | (.27) | (.60) | (.85) |
Total distributions | (4.44) | (2.51) | (.61)B | (.83) | (.99) |
Net asset value, end of period | $32.80 | $33.76 | $34.98 | $30.27 | $28.12 |
Total ReturnC,D | 14.19% | 3.77% | 17.84% | 11.09% | (1.57)% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .91% | .92% | .91% | .92% | 1.15% |
Expenses net of fee waivers, if any | .91% | .92% | .91% | .92% | 1.15% |
Expenses net of all reductions | .90% | .92% | .90% | .91% | 1.15% |
Net investment income (loss) | 1.71% | 1.17% | 1.22% | 1.25% | .90% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $423,325 | $401,495 | $461,949 | $455,182 | $469,026 |
Portfolio turnover rateG | 28%H | 37% | 31% | 28% | 31% |
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.
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 Large Cap Fund Class M
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.63 | $34.86 | $30.17 | $28.02 | $29.50 |
Income from Investment Operations | |||||
Net investment income (loss)A | .43 | .31 | .31 | .27 | .18 |
Net realized and unrealized gain (loss) | 2.98 | .89 | 4.91 | 2.64 | (.74) |
Total from investment operations | 3.41 | 1.20 | 5.22 | 2.91 | (.56) |
Distributions from net investment income | (.36) | (.29) | (.26) | (.16) | (.07) |
Distributions from net realized gain | (3.99) | (2.13) | (.27) | (.60) | (.85) |
Total distributions | (4.35) | (2.43)B | (.53) | (.76) | (.92) |
Net asset value, end of period | $32.69 | $33.63 | $34.86 | $30.17 | $28.02 |
Total ReturnC,D | 13.93% | 3.50% | 17.54% | 10.81% | (1.84)% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.17% | 1.18% | 1.17% | 1.18% | 1.41% |
Expenses net of fee waivers, if any | 1.16% | 1.18% | 1.17% | 1.18% | 1.41% |
Expenses net of all reductions | 1.16% | 1.18% | 1.17% | 1.18% | 1.41% |
Net investment income (loss) | 1.46% | .92% | .96% | .99% | .63% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $175,139 | $173,195 | $193,882 | $173,119 | $177,560 |
Portfolio turnover rateG | 28%H | 37% | 31% | 28% | 31% |
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.
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 Large Cap Fund Class C
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $30.44 | $31.78 | $27.58 | $25.70 | $27.21 |
Income from Investment Operations | |||||
Net investment income (loss)A | .25 | .13 | .14 | .12 | .04 |
Net realized and unrealized gain (loss) | 2.60 | .81 | 4.49 | 2.40 | (.69) |
Total from investment operations | 2.85 | .94 | 4.63 | 2.52 | (.65) |
Distributions from net investment income | (.21) | (.15) | (.15) | (.04) | (.01) |
Distributions from net realized gain | (3.99) | (2.13) | (.27) | (.60) | (.85) |
Total distributions | (4.20) | (2.28) | (.43)B | (.64) | (.86) |
Net asset value, end of period | $29.09 | $30.44 | $31.78 | $27.58 | $25.70 |
Total ReturnC,D | 13.33% | 3.01% | 16.97% | 10.21% | (2.33)% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.67% | 1.69% | 1.67% | 1.67% | 1.90% |
Expenses net of fee waivers, if any | 1.67% | 1.69% | 1.67% | 1.67% | 1.90% |
Expenses net of all reductions | 1.67% | 1.68% | 1.66% | 1.67% | 1.90% |
Net investment income (loss) | .95% | .41% | .46% | .49% | .14% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $119,072 | $158,775 | $194,553 | $169,524 | $181,957 |
Portfolio turnover rateG | 28%H | 37% | 31% | 28% | 31% |
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.
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 Large Cap Fund Class I
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $35.37 | $36.53 | $31.57 | $29.30 | $30.78 |
Income from Investment Operations | |||||
Net investment income (loss)A | .62 | .51 | .50 | .43 | .34 |
Net realized and unrealized gain (loss) | 3.17 | .93 | 5.14 | 2.74 | (.78) |
Total from investment operations | 3.79 | 1.44 | 5.64 | 3.17 | (.44) |
Distributions from net investment income | (.54) | (.47) | (.40) | (.30) | (.20) |
Distributions from net realized gain | (3.99) | (2.13) | (.27) | (.60) | (.85) |
Total distributions | (4.53) | (2.60) | (.68)B | (.90) | (1.04)C |
Net asset value, end of period | $34.63 | $35.37 | $36.53 | $31.57 | $29.30 |
Total ReturnD | 14.54% | 4.05% | 18.16% | 11.34% | (1.33)% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .64% | .66% | .64% | .65% | .89% |
Expenses net of fee waivers, if any | .64% | .66% | .64% | .65% | .89% |
Expenses net of all reductions | .64% | .66% | .64% | .65% | .89% |
Net investment income (loss) | 1.98% | 1.44% | 1.48% | 1.51% | 1.15% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $301,067 | $459,962 | $520,465 | $433,079 | $498,404 |
Portfolio turnover rateG | 28%H | 37% | 31% | 28% | 31% |
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.
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 Large Cap Fund Class Z
Years ended November 30, | 2019 | 2018 | 2017 A |
Selected Per–Share Data | |||
Net asset value, beginning of period | $35.41 | $36.57 | $32.04 |
Income from Investment Operations | |||
Net investment income (loss)B | .66 | .56 | .51 |
Net realized and unrealized gain (loss) | 3.16 | .93 | 4.02 |
Total from investment operations | 3.82 | 1.49 | 4.53 |
Distributions from net investment income | (.60) | (.52) | – |
Distributions from net realized gain | (3.99) | (2.13) | – |
Total distributions | (4.59) | (2.65) | – |
Net asset value, end of period | $34.64 | $35.41 | $36.57 |
Total ReturnC,D | 14.67% | 4.19% | 14.14% |
Ratios to Average Net AssetsE,F | |||
Expenses before reductions | .51% | .53% | .51%G |
Expenses net of fee waivers, if any | .51% | .53% | .51%G |
Expenses net of all reductions | .51% | .53% | .51%G |
Net investment income (loss) | 2.11% | 1.57% | 1.80%G |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $28,596 | $17,711 | $13,966 |
Portfolio turnover rateH | 28%I | 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.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2019
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. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
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 ranged from less than .005% to .01%.
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. 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, 2019 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, 2019, 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 in-kind transactions, partnerships, foreign currency transactions 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 | $293,868,599 |
Gross unrealized depreciation | (62,549,406) |
Net unrealized appreciation (depreciation) | $231,319,193 |
Tax Cost | $832,525,037 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $16,836,281 |
Undistributed long-term capital gain | $65,957,293 |
Net unrealized appreciation (depreciation) on securities and other investments | $231,316,931 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $15,497,287 | $ 23,346,706 |
Long-term Capital Gains | 140,910,683 | 74,090,097 |
Total | $156,407,970 | $ 97,436,803 |
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 $1,697,147 in this Subsidiary, representing .16% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $310,571,984 and $502,371,578, 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 .42% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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% | $993,100 | $19,710 |
Class M | .25% | .25% | 833,728 | 5,251 |
Class C | .75% | .25% | 1,295,565 | 101,956 |
$3,122,393 | $126,917 |
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 | $88,973 |
Class M | 12,725 |
Class C(a) | 15,224 |
$116,922 |
(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 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 | $749,899 | .19 |
Class M | 328,963 | .20 |
Class C | 260,547 | .20 |
Class I | 688,015 | .17 |
Class Z | 12,374 | .05 |
$2,039,798 |
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. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .03%.
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Large Cap Fund | $10,375 |
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.
Affiliated Redemptions In-Kind. During the period, 3,448,450 shares of the Fund were redeemed in-kind for investments and cash with a value of $109,171,715. The net realized gain of $38,293,813 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
The Fund participates with other funds managed by 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 $3,057 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 from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $14,101. 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 $259 from securities loaned to NFS, as affiliated borrower.
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 $24,954 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $8,771.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Class A | $52,574,860 | $32,666,263 |
Class M | 22,422,377 | 13,408,791 |
Class C | 21,365,837 | 13,819,228 |
Class I | 57,066,246 | 36,527,867 |
Class Z | 2,978,650 | 1,014,654 |
Total | $156,407,970 | $97,436,803 |
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, 2019 | Year ended November 30, 2018 | Year ended November 30, 2019 | Year ended November 30, 2018 | |
Class A | ||||
Shares sold | 2,411,911 | 1,712,222 | $70,596,919 | $58,739,685 |
Reinvestment of distributions | 2,012,376 | 950,555 | 50,953,371 | 31,701,003 |
Shares redeemed | (3,413,311) | (3,976,434) | (100,437,805) | (136,078,999) |
Net increase (decrease) | 1,010,976 | (1,313,657) | $21,112,485 | $(45,638,311) |
Class M | ||||
Shares sold | 632,380 | 598,948 | $18,471,672 | $20,402,311 |
Reinvestment of distributions | 869,758 | 395,478 | 21,996,189 | 13,169,411 |
Shares redeemed | (1,294,413) | (1,406,391) | (37,697,052) | (47,695,158) |
Net increase (decrease) | 207,725 | (411,965) | $2,770,809 | $(14,123,436) |
Class C | ||||
Shares sold | 697,792 | 652,661 | $17,629,082 | $20,372,329 |
Reinvestment of distributions | 880,159 | 423,097 | 19,900,399 | 12,811,392 |
Shares redeemed | (2,701,896) | (1,980,528) | (70,243,190) | (61,523,821) |
Net increase (decrease) | (1,123,945) | (904,770) | $(32,713,709) | $(28,340,100) |
Class I | ||||
Shares sold | 2,258,206 | 2,810,257 | $68,580,970 | $100,775,615 |
Reinvestment of distributions | 1,992,530 | 973,077 | 53,120,853 | 33,921,480 |
Shares redeemed | (8,559,302)(a) | (5,026,296) | (266,670,865)(a) | (180,183,302) |
Net increase (decrease) | (4,308,566) | (1,242,962) | $(144,969,042) | $(45,486,207) |
Class Z | ||||
Shares sold | 663,462 | 445,216 | $20,709,858 | $15,909,977 |
Reinvestment of distributions | 97,118 | 25,324 | 2,587,220 | 882,557 |
Shares redeemed | (435,227) | (352,207) | (13,351,709) | (12,256,715) |
Net increase (decrease) | 325,353 | 118,333 | $9,945,369 | $4,535,819 |
(a) Amount includes in-kind redemptions (see the Affiliated Redemptions In-Kind note for additional details).
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. (FIIOC) converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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, 2019, 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, 2019, 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, 2019, 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 13, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Class A | .84% | |||
Actual | $1,000.00 | $1,168.10 | $4.57 | |
Hypothetical-C | $1,000.00 | $1,020.86 | $4.26 | |
Class M | 1.09% | |||
Actual | $1,000.00 | $1,167.10 | $5.92 | |
Hypothetical-C | $1,000.00 | $1,019.60 | $5.52 | |
Class C | 1.59% | |||
Actual | $1,000.00 | $1,164.10 | $8.63 | |
Hypothetical-C | $1,000.00 | $1,017.10 | $8.04 | |
Class I | .56% | |||
Actual | $1,000.00 | $1,169.90 | $3.05 | |
Hypothetical-C | $1,000.00 | $1,022.26 | $2.84 | |
Class Z | .45% | |||
Actual | $1,000.00 | $1,170.70 | $2.45 | |
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 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 | 12/30/19 | 12/27/19 | $0.599 | $2.083 |
Class M | 12/30/19 | 12/27/19 | $0.516 | $2.083 |
Class C | 12/30/19 | 12/27/19 | $0.358 | $2.083 |
Class I | 12/30/19 | 12/27/19 | $0.658 | $2.083 |
Class Z | 12/30/19 | 12/27/19 | $0.720 | $2.083 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019, $85,653,681, 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 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 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Large Cap Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.LC-ANN-0120
1.539156.122
Fidelity Advisor® Dividend Growth Fund
Annual Report
November 30, 2019
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
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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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 6.35% | 6.75% | 10.87% |
Class M (incl. 3.50% sales charge) | 8.64% | 6.99% | 10.87% |
Class C (incl. contingent deferred sales charge) | 11.04% | 7.20% | 10.70% |
Class I | 13.13% | 8.28% | 11.81% |
Class Z | 13.25% | 8.44% | 11.92% |
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, 2009, 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/0001379491-20-000191/img552795217_740.jpg)
Period Ending Values | ||
$28,057 | Fidelity Advisor® Dividend Growth Fund - Class A | |
$35,289 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Portfolio Manager Gordon Scott: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 12% to 13%, trailing the benchmark S&P 500®. Versus the benchmark, positioning in information technology detracted most, especially an underweighting in this market-leading sector. Stock picks in communication services, consumer staples and financials also weighed on our relative result. Insurance-focused conglomerate Berkshire Hathaway (+1%) was the biggest individual detractor versus the benchmark, due to both its lagging performance and the fact that it was our largest position. The company’s fourth-quarter 2018 financial results were negatively affected by its sizable stake in processed-food company Kraft Heinz (-37%), the fund’s second-largest relative detractor. The latter announced disappointing fourth-quarter results in February. Conversely, stock choices in industrials, consumer discretionary and energy provided a boost compared with the benchmark, as did underweighting the lagging health care sector. Among individual holdings, General Electric (+57%), the fund’s second-largest position, topped our list of contributors the past 12 months. Homebuilder NVR (+54%), a beneficiary of lower interest rates, also helped.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, 2019
% of fund's net assets | |
Berkshire Hathaway, Inc. Class B | 9.5 |
General Electric Co. | 8.9 |
Comcast Corp. Class A | 5.6 |
Bank of America Corp. | 3.7 |
Exxon Mobil Corp. | 3.7 |
JPMorgan Chase & Co. | 3.7 |
Altria Group, Inc. | 2.9 |
Apple, Inc. | 2.6 |
Wells Fargo & Co. | 2.5 |
UnitedHealth Group, Inc. | 2.4 |
45.5 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Financials | 24.4 |
Industrials | 23.9 |
Communication Services | 12.3 |
Health Care | 12.2 |
Consumer Discretionary | 7.6 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019 * | ||
Stocks | 99.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 3.8%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 12.3% | |||
Diversified Telecommunication Services - 0.2% | |||
GCI Liberty, Inc. (a) | 25,200 | $1,789 | |
Interactive Media & Services - 0.1% | |||
TripAdvisor, Inc. | 37,000 | 1,051 | |
Media - 12.0% | |||
CBS Corp. Class B | 203,100 | 8,201 | |
Charter Communications, Inc. Class A (a) | 16,500 | 7,755 | |
Comcast Corp. Class A | 1,346,950 | 59,468 | |
Discovery Communications, Inc. Class A (a)(b) | 253,000 | 8,334 | |
Interpublic Group of Companies, Inc. | 348,900 | 7,815 | |
Liberty Broadband Corp. Class A (a) | 40,100 | 4,744 | |
Liberty Media Corp.: | |||
Liberty Formula One Group Series C (a) | 19,084 | 860 | |
Liberty Media Class A (a) | 8,100 | 349 | |
Liberty SiriusXM Series A (a) | 271,553 | 13,225 | |
Omnicom Group, Inc. | 77,300 | 6,144 | |
Sinclair Broadcast Group, Inc. Class A | 290,800 | 10,129 | |
127,024 | |||
TOTAL COMMUNICATION SERVICES | 129,864 | ||
CONSUMER DISCRETIONARY - 7.6% | |||
Auto Components - 1.0% | |||
BorgWarner, Inc. | 129,400 | 5,441 | |
Lear Corp. | 41,700 | 5,017 | |
10,458 | |||
Automobiles - 1.2% | |||
General Motors Co. | 360,700 | 12,985 | |
Distributors - 1.6% | |||
LKQ Corp. (a) | 473,900 | 16,719 | |
Household Durables - 1.1% | |||
Mohawk Industries, Inc. (a) | 15,300 | 2,132 | |
NVR, Inc. (a) | 900 | 3,413 | |
Whirlpool Corp. | 40,500 | 5,796 | |
11,341 | |||
Internet & Direct Marketing Retail - 0.6% | |||
The Booking Holdings, Inc. (a) | 3,100 | 5,902 | |
Leisure Products - 0.0% | |||
Brunswick Corp. | 6,713 | 395 | |
Specialty Retail - 0.7% | |||
AutoNation, Inc. (a) | 144,206 | 7,367 | |
Textiles, Apparel & Luxury Goods - 1.4% | |||
PVH Corp. | 80,400 | 7,796 | |
Tapestry, Inc. | 256,900 | 6,908 | |
14,704 | |||
TOTAL CONSUMER DISCRETIONARY | 79,871 | ||
CONSUMER STAPLES - 5.9% | |||
Food Products - 1.5% | |||
Conagra Brands, Inc. | 54,400 | 1,571 | |
The Kraft Heinz Co. | 457,600 | 13,957 | |
15,528 | |||
Household Products - 1.5% | |||
Energizer Holdings, Inc. | 106,700 | 5,323 | |
Spectrum Brands Holdings, Inc. | 166,285 | 10,396 | |
15,719 | |||
Tobacco - 2.9% | |||
Altria Group, Inc. | 614,173 | 30,524 | |
TOTAL CONSUMER STAPLES | 61,771 | ||
ENERGY - 6.1% | |||
Oil, Gas & Consumable Fuels - 6.1% | |||
Equinor ASA sponsored ADR | 455,200 | 8,435 | |
Exxon Mobil Corp. | 576,222 | 39,258 | |
Phillips 66 Co. | 146,500 | 16,806 | |
64,499 | |||
FINANCIALS - 24.4% | |||
Banks - 14.1% | |||
Bank of America Corp. | 1,186,603 | 39,538 | |
JPMorgan Chase & Co. | 292,393 | 38,526 | |
M&T Bank Corp. | 73,800 | 12,158 | |
PNC Financial Services Group, Inc. | 107,100 | 16,409 | |
U.S. Bancorp | 250,800 | 15,056 | |
Wells Fargo & Co. | 492,390 | 26,816 | |
148,503 | |||
Capital Markets - 0.7% | |||
KKR & Co. LP | 163,900 | 4,833 | |
Raymond James Financial, Inc. | 29,600 | 2,659 | |
7,492 | |||
Diversified Financial Services - 9.5% | |||
Berkshire Hathaway, Inc. Class B (a) | 453,000 | 99,794 | |
Insurance - 0.1% | |||
The Travelers Companies, Inc. | 8,200 | 1,121 | |
TOTAL FINANCIALS | 256,910 | ||
HEALTH CARE - 12.2% | |||
Health Care Equipment & Supplies - 1.1% | |||
Becton, Dickinson & Co. | 24,800 | 6,411 | |
Envista Holdings Corp. (a)(b) | 173,100 | 4,868 | |
11,279 | |||
Health Care Providers & Services - 7.9% | |||
AmerisourceBergen Corp. | 91,700 | 8,061 | |
Anthem, Inc. | 49,600 | 14,318 | |
Cigna Corp. | 92,800 | 18,553 | |
CVS Health Corp. | 147,200 | 11,080 | |
HCA Holdings, Inc. | 43,900 | 6,087 | |
UnitedHealth Group, Inc. | 91,497 | 25,607 | |
83,706 | |||
Pharmaceuticals - 3.2% | |||
Bayer AG | 129,100 | 9,750 | |
Bristol-Myers Squibb Co. | 418,900 | 23,852 | |
33,602 | |||
TOTAL HEALTH CARE | 128,587 | ||
INDUSTRIALS - 23.9% | |||
Aerospace & Defense - 0.6% | |||
TransDigm Group, Inc. | 10,300 | 5,841 | |
Air Freight & Logistics - 2.5% | |||
FedEx Corp. | 70,600 | 11,300 | |
United Parcel Service, Inc. Class B | 127,800 | 15,301 | |
26,601 | |||
Airlines - 1.0% | |||
Delta Air Lines, Inc. | 192,200 | 11,015 | |
Electrical Equipment - 0.6% | |||
AMETEK, Inc. | 64,700 | 6,406 | |
Industrial Conglomerates - 8.9% | |||
General Electric Co. | 8,289,700 | 93,425 | |
Machinery - 4.7% | |||
Allison Transmission Holdings, Inc. | 105,643 | 5,113 | |
Caterpillar, Inc. | 40,800 | 5,905 | |
Cummins, Inc. | 67,200 | 12,288 | |
Fortive Corp. | 25,400 | 1,833 | |
PACCAR, Inc. | 166,400 | 13,540 | |
Snap-On, Inc. | 70,600 | 11,328 | |
50,007 | |||
Professional Services - 0.6% | |||
Nielsen Holdings PLC | 318,100 | 6,219 | |
Road & Rail - 2.7% | |||
Knight-Swift Transportation Holdings, Inc. Class A (b) | 585,800 | 21,669 | |
Norfolk Southern Corp. | 7,800 | 1,509 | |
Union Pacific Corp. | 28,000 | 4,928 | |
28,106 | |||
Trading Companies & Distributors - 2.3% | |||
AerCap Holdings NV (a) | 32,700 | 2,021 | |
Air Lease Corp. Class A | 233,700 | 10,851 | |
HD Supply Holdings, Inc. (a) | 299,405 | 11,922 | |
24,794 | |||
TOTAL INDUSTRIALS | 252,414 | ||
INFORMATION TECHNOLOGY - 6.6% | |||
IT Services - 2.1% | |||
Amdocs Ltd. | 126,300 | 8,753 | |
Cognizant Technology Solutions Corp. Class A | 158,400 | 10,155 | |
DXC Technology Co. | 89,500 | 3,341 | |
22,249 | |||
Software - 1.8% | |||
Oracle Corp. | 202,600 | 11,374 | |
SS&C Technologies Holdings, Inc. | 133,700 | 8,029 | |
19,403 | |||
Technology Hardware, Storage & Peripherals - 2.7% | |||
Apple, Inc. | 102,424 | 27,373 | |
HP, Inc. | 38,400 | 771 | |
28,144 | |||
TOTAL INFORMATION TECHNOLOGY | 69,796 | ||
MATERIALS - 0.5% | |||
Chemicals - 0.5% | |||
LyondellBasell Industries NV Class A | 52,700 | 4,877 | |
TOTAL COMMON STOCKS | |||
(Cost $905,400) | 1,048,589 | ||
Money Market Funds - 3.2% | |||
Fidelity Cash Central Fund 1.61% (c) | 2,197,011 | 2,197 | |
Fidelity Securities Lending Cash Central Fund 1.61% (c)(d) | 31,578,061 | 31,581 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $33,778) | 33,778 | ||
TOTAL INVESTMENT IN SECURITIES - 102.7% | |||
(Cost $939,178) | 1,082,367 | ||
NET OTHER ASSETS (LIABILITIES) - (2.7)% | (28,383) | ||
NET ASSETS - 100% | $1,053,984 |
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 | $523 |
Fidelity Securities Lending Cash Central Fund | 14 |
Total | $537 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $129,864 | $129,864 | $-- | $-- |
Consumer Discretionary | 79,871 | 79,871 | -- | -- |
Consumer Staples | 61,771 | 61,771 | -- | -- |
Energy | 64,499 | 64,499 | -- | -- |
Financials | 256,910 | 256,910 | -- | -- |
Health Care | 128,587 | 118,837 | 9,750 | -- |
Industrials | 252,414 | 252,414 | -- | -- |
Information Technology | 69,796 | 69,796 | -- | -- |
Materials | 4,877 | 4,877 | -- | -- |
Money Market Funds | 33,778 | 33,778 | -- | -- |
Total Investments in Securities: | $1,082,367 | $1,072,617 | $9,750 | $-- |
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, 2019 | |
Assets | ||
Investment in securities, at value (including securities loaned of $30,416) — See accompanying schedule: Unaffiliated issuers (cost $905,400) | $1,048,589 | |
Fidelity Central Funds (cost $33,778) | 33,778 | |
Total Investment in Securities (cost $939,178) | $1,082,367 | |
Receivable for investments sold | 2,350 | |
Receivable for fund shares sold | 401 | |
Dividends receivable | 2,068 | |
Distributions receivable from Fidelity Central Funds | 14 | |
Prepaid expenses | 2 | |
Other receivables | 348 | |
Total assets | 1,087,550 | |
Liabilities | ||
Payable for investments purchased | $434 | |
Payable for fund shares redeemed | 697 | |
Accrued management fee | 314 | |
Distribution and service plan fees payable | 302 | |
Other affiliated payables | 182 | |
Other payables and accrued expenses | 56 | |
Collateral on securities loaned | 31,581 | |
Total liabilities | 33,566 | |
Net Assets | $1,053,984 | |
Net Assets consist of: | ||
Paid in capital | $870,998 | |
Total accumulated earnings (loss) | 182,986 | |
Net Assets | $1,053,984 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($420,747 ÷ 24,669 shares)(a) | $17.06 | |
Maximum offering price per share (100/94.25 of $17.06) | $18.10 | |
Class M: | ||
Net Asset Value and redemption price per share ($375,698 ÷ 22,181 shares)(a) | $16.94 | |
Maximum offering price per share (100/96.50 of $16.94) | $17.55 | |
Class C: | ||
Net Asset Value and offering price per share ($70,888 ÷ 4,454 shares)(a) | $15.92 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($173,399 ÷ 9,540 shares) | $18.18 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($13,252 ÷ 716 shares) | $18.51 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2019 | |
Investment Income | ||
Dividends | $20,016 | |
Non-Cash dividends | 2,467 | |
Income from Fidelity Central Funds (including $14 from security lending) | 537 | |
Total income | 23,020 | |
Expenses | ||
Management fee | ||
Basic fee | $5,282 | |
Performance adjustment | (2,041) | |
Transfer agent fees | 1,875 | |
Distribution and service plan fees | 3,580 | |
Accounting and security lending fees | 327 | |
Custodian fees and expenses | 24 | |
Independent trustees' fees and expenses | 6 | |
Registration fees | 87 | |
Audit | 65 | |
Legal | 10 | |
Miscellaneous | 8 | |
Total expenses before reductions | 9,223 | |
Expense reductions | (82) | |
Total expenses after reductions | 9,141 | |
Net investment income (loss) | 13,879 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 33,330 | |
Fidelity Central Funds | 1 | |
Foreign currency transactions | (13) | |
Total net realized gain (loss) | 33,318 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 70,220 | |
Fidelity Central Funds | (1) | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) | 70,218 | |
Net gain (loss) | 103,536 | |
Net increase (decrease) in net assets resulting from operations | $117,415 |
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, 2019 | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $13,879 | $15,009 |
Net realized gain (loss) | 33,318 | 140,479 |
Change in net unrealized appreciation (depreciation) | 70,218 | (109,069) |
Net increase (decrease) in net assets resulting from operations | 117,415 | 46,419 |
Distributions to shareholders | (142,301) | (155,466) |
Share transactions - net increase (decrease) | 49,687 | 51,408 |
Total increase (decrease) in net assets | 24,801 | (57,639) |
Net Assets | ||
Beginning of period | 1,029,183 | 1,086,822 |
End of period | $1,053,984 | $1,029,183 |
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $17.97 | $20.01 | $16.90 | $17.35 | $19.65 |
Income from Investment Operations | |||||
Net investment income (loss)A | .24B | .28 | .25 | .21 | .20 |
Net realized and unrealized gain (loss) | 1.39 | .58 | 3.07 | .46 | (.34)C |
Total from investment operations | 1.63 | .86 | 3.32 | .67 | (.14) |
Distributions from net investment income | (.27) | (.26) | (.21) | (.18) | (.19) |
Distributions from net realized gain | (2.27) | (2.65) | – | (.94) | (1.96) |
Total distributions | (2.54) | (2.90)D | (.21) | (1.12) | (2.16)E |
Net asset value, end of period | $17.06 | $17.97 | $20.01 | $16.90 | $17.35 |
Total ReturnF,G | 12.84% | 4.69% | 19.81% | 4.36% | (.41)%C |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .82% | .84% | .85% | .90% | 1.01% |
Expenses net of fee waivers, if any | .82% | .84% | .85% | .90% | 1.00% |
Expenses net of all reductions | .81% | .83% | .84% | .90% | 1.00% |
Net investment income (loss) | 1.53%B | 1.58% | 1.36% | 1.33% | 1.13% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $421 | $353 | $376 | $355 | $356 |
Portfolio turnover rateJ | 75% | 110% | 73% | 31% | 56% |
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 1.28%.
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $17.85 | $19.90 | $16.81 | $17.25 | $19.55 |
Income from Investment Operations | |||||
Net investment income (loss)A | .20B | .24 | .20 | .17 | .15 |
Net realized and unrealized gain (loss) | 1.39 | .57 | 3.05 | .47 | (.34)C |
Total from investment operations | 1.59 | .81 | 3.25 | .64 | (.19) |
Distributions from net investment income | (.23) | (.21) | (.16) | (.14) | (.15) |
Distributions from net realized gain | (2.27) | (2.65) | – | (.94) | (1.96) |
Total distributions | (2.50) | (2.86) | (.16) | (1.08) | (2.11) |
Net asset value, end of period | $16.94 | $17.85 | $19.90 | $16.81 | $17.25 |
Total ReturnD,E | 12.59% | 4.38% | 19.50% | 4.15% | (.67)%C |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.07% | 1.09% | 1.09% | 1.14% | 1.24% |
Expenses net of fee waivers, if any | 1.07% | 1.09% | 1.09% | 1.14% | 1.24% |
Expenses net of all reductions | 1.06% | 1.08% | 1.09% | 1.14% | 1.24% |
Net investment income (loss) | 1.28%B | 1.33% | 1.11% | 1.09% | .89% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $376 | $363 | $374 | $351 | $372 |
Portfolio turnover rateH | 75% | 110% | 73% | 31% | 56% |
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 1.03%.
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 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 Dividend Growth Fund Class C
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $16.92 | $19.00 | $16.06 | $16.53 | $18.82 |
Income from Investment Operations | |||||
Net investment income (loss)A | .11B | .14 | .10 | .09 | .06 |
Net realized and unrealized gain (loss) | 1.29 | .54 | 2.92 | .44 | (.32)C |
Total from investment operations | 1.40 | .68 | 3.02 | .53 | (.26) |
Distributions from net investment income | (.14) | (.12) | (.08) | (.06) | (.06) |
Distributions from net realized gain | (2.27) | (2.65) | – | (.94) | (1.96) |
Total distributions | (2.40)D | (2.76)E | (.08) | (1.00) | (2.03)F |
Net asset value, end of period | $15.92 | $16.92 | $19.00 | $16.06 | $16.53 |
Total ReturnG,H | 11.98% | 3.86% | 18.88% | 3.58% | (1.16)%C |
Ratios to Average Net AssetsI,J | |||||
Expenses before reductions | 1.62% | 1.61% | 1.61% | 1.66% | 1.76% |
Expenses net of fee waivers, if any | 1.61% | 1.61% | 1.61% | 1.66% | 1.76% |
Expenses net of all reductions | 1.61% | 1.60% | 1.61% | 1.66% | 1.76% |
Net investment income (loss) | .73%B | .81% | .59% | .57% | .37% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $71 | $137 | $160 | $154 | $167 |
Portfolio turnover rateK | 75% | 110% | 73% | 31% | 56% |
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 .48%.
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 $2.40 per share is comprised of distributions from net investment income of $.136 and distributions from net realized gain of $2.268 per share.
E 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.
F 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.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the contingent deferred sales charge.
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.
Fidelity Advisor Dividend Growth Fund Class I
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.97 | $20.97 | $17.70 | $18.12 | $20.42 |
Income from Investment Operations | |||||
Net investment income (loss)A | .29B | .34 | .30 | .26 | .25 |
Net realized and unrealized gain (loss) | 1.50 | .61 | 3.21 | .49 | (.35)C |
Total from investment operations | 1.79 | .95 | 3.51 | .75 | (.10) |
Distributions from net investment income | (.31) | (.30) | (.24) | (.22) | (.24) |
Distributions from net realized gain | (2.27) | (2.65) | – | (.94) | (1.96) |
Total distributions | (2.58) | (2.95) | (.24) | (1.17)D | (2.20) |
Net asset value, end of period | $18.18 | $18.97 | $20.97 | $17.70 | $18.12 |
Total ReturnE | 13.13% | 4.93% | 20.07% | 4.60% | (.14)%C |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .58% | .60% | .61% | .67% | .76% |
Expenses net of fee waivers, if any | .58% | .60% | .61% | .67% | .76% |
Expenses net of all reductions | .57% | .59% | .60% | .66% | .76% |
Net investment income (loss) | 1.77%B | 1.82% | 1.59% | 1.57% | 1.37% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $173 | $166 | $170 | $123 | $125 |
Portfolio turnover rateH | 75% | 110% | 73% | 31% | 56% |
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 1.52%.
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, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.28 | $21.27 | $17.95 | $18.36 | $20.44 |
Income from Investment Operations | |||||
Net investment income (loss)A | .32B | .38 | .34 | .29 | .28 |
Net realized and unrealized gain (loss) | 1.52 | .62 | 3.24 | .50 | (.35)C |
Total from investment operations | 1.84 | 1.00 | 3.58 | .79 | (.07) |
Distributions from net investment income | (.34) | (.34) | (.26) | (.26) | (.05) |
Distributions from net realized gain | (2.27) | (2.65) | – | (.94) | (1.96) |
Total distributions | (2.61) | (2.99) | (.26) | (1.20) | (2.01) |
Net asset value, end of period | $18.51 | $19.28 | $21.27 | $17.95 | $18.36 |
Total ReturnD | 13.25% | 5.10% | 20.21% | 4.80% | (.01)%C |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .43% | .45% | .45% | .49% | .59% |
Expenses net of fee waivers, if any | .43% | .45% | .45% | .49% | .59% |
Expenses net of all reductions | .42% | .44% | .44% | .49% | .59% |
Net investment income (loss) | 1.92%B | 1.98% | 1.76% | 1.74% | 1.54% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $13 | $10 | $7 | $2 | $9 |
Portfolio turnover rateG | 75% | 110% | 73% | 31% | 56% |
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 1.67%.
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 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, 2019
(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. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
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 ranged from less than .005% to .01%.
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. 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, 2019 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Non-cash Dividends" and the impact of these dividends is presented in the Financial Highlights. 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, 2019, 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, 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 | $168,543 |
Gross unrealized depreciation | (30,759) |
Net unrealized appreciation (depreciation) | $137,784 |
Tax Cost | $944,583 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $12,290 |
Undistributed long-term capital gain | $32,912 |
Net unrealized appreciation (depreciation) on securities and other investments | $137,784 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $34,609 | $ 12,196 |
Long-term Capital Gains | 107,692 | 143,270 |
Total | $142,301 | $ 155,466 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $728,670 and $754,562, 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 .33% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $936 | $15 |
Class M | .25% | .25% | 1,757 | 16 |
Class C | .75% | .25% | 887 | 72 |
$3,580 | $103 |
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 | $72 |
Class M | 13 |
Class C(a) | 9 |
$94 |
(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 | $709 | .19 |
Class M | 648 | .18 |
Class C | 196 | .22 |
Class I | 317 | .20 |
Class Z | 5 | .05 |
$1,875 |
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. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .03%.
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Dividend Growth Fund | $21 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. Total fees paid by the Fund to NFS, as lending agent, amounted to $1. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
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 $74 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $8.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Class A | $49,025 | $53,981 |
Class M | 50,351 | 53,571 |
Class C | 19,304 | 23,071 |
Class I | 22,201 | 23,769 |
Class Z | 1,419 | 1,074 |
Total | $142,301 | $155,466 |
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, 2019 | Year ended November 30, 2018 | Year ended November 30, 2019 | Year ended November 30, 2018 | |
Class A | ||||
Shares sold | 6,265 | 2,356 | $95,563 | $42,190 |
Reinvestment of distributions | 3,375 | 2,930 | 45,399 | 51,334 |
Shares redeemed | (4,633) | (4,414) | (71,279) | (78,366) |
Net increase (decrease) | 5,007 | 872 | $69,683 | $15,158 |
Class M | ||||
Shares sold | 3,142 | 3,096 | $47,904 | $54,768 |
Reinvestment of distributions | 3,701 | 3,022 | 49,551 | 52,730 |
Shares redeemed | (4,970) | (4,622) | (75,690) | (81,811) |
Net increase (decrease) | 1,873 | 1,496 | $21,765 | $25,687 |
Class C | ||||
Shares sold | 847 | 705 | $12,122 | $11,901 |
Reinvestment of distributions | 1,492 | 1,270 | 18,858 | 21,110 |
Shares redeemed | (5,981) | (2,281) | (85,655) | (38,527) |
Net increase (decrease) | (3,642) | (306) | $(54,675) | $(5,516) |
Class I | ||||
Shares sold | 2,088 | 1,553 | $34,451 | $29,414 |
Reinvestment of distributions | 1,453 | 1,201 | 20,776 | 22,163 |
Shares redeemed | (2,739) | (2,115) | (45,066) | (39,588) |
Net increase (decrease) | 802 | 639 | $10,161 | $11,989 |
Class Z | ||||
Shares sold | 267 | 234 | $4,519 | $4,538 |
Reinvestment of distributions | 90 | 54 | 1,311 | 1,003 |
Shares redeemed | (184) | (77) | (3,077) | (1,451) |
Net increase (decrease) | 173 | 211 | $2,753 | $4,090 |
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. (FIIOC) converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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, 2019, the related statement of operations for the year ended November 30, 2019, the statement of changes in net assets for each of the two years in the period ended November 30, 2019, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2019 (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, 2019, 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, 2019 and the financial highlights for each of the five years in the period ended November 30, 2019 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, 2019 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 10, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Class A | .82% | |||
Actual | $1,000.00 | $1,162.90 | $4.45 | |
Hypothetical-C | $1,000.00 | $1,020.96 | $4.15 | |
Class M | 1.07% | |||
Actual | $1,000.00 | $1,161.10 | $5.80 | |
Hypothetical-C | $1,000.00 | $1,019.70 | $5.42 | |
Class C | 1.61% | |||
Actual | $1,000.00 | $1,157.80 | $8.71 | |
Hypothetical-C | $1,000.00 | $1,017.00 | $8.14 | |
Class I | .58% | |||
Actual | $1,000.00 | $1,163.90 | $3.15 | |
Hypothetical-C | $1,000.00 | $1,022.16 | $2.94 | |
Class Z | .43% | |||
Actual | $1,000.00 | $1,164.90 | $2.33 | |
Hypothetical-C | $1,000.00 | $1,022.91 | $2.18 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (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 | 12/30/19 | 12/27/19 | $0.247 | $0.536 |
Class M | 12/30/19 | 12/27/19 | $0.206 | $0.536 |
Class C | 12/30/19 | 12/27/19 | $0.084 | $0.536 |
Class I | 12/30/19 | 12/27/19 | $0.282 | $0.536 |
Class Z | 12/30/19 | 12/27/19 | $0.308 | $0.536 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019 $35,967,009, 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 63%, 68%, 80%, 59%, and 57% of the dividends 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 69%, 74%, 87%, 64%, and 62% 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 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Dividend Growth Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.ADGF-ANN-0120
1.733548.120
Fidelity Advisor® Series Small Cap Fund
Annual Report
November 30, 2019
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fipro_logo.jpg)
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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Life of fundA |
Fidelity Advisor® Series Small Cap Fund | 15.27% | 6.57% | 7.42% |
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/0001379491-20-000191/img552792288_740.jpg)
Period Ending Values | ||
$15,440 | Fidelity Advisor® Series Small Cap Fund | |
$16,364 | Russell 2000® Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Portfolio Manager Jennifer Fo Cardillo: For the fiscal year, the fund gained 15.27%, significantly outperforming the 7.51% advance of the benchmark Russell 2000® Index. Security selection drove the fund's outperformance of the benchmark, led by my picks in the industrials, consumer discretionary, energy and financials sectors. The fund's top relative individual contributor – and one of our largest holdings – was Generac Holdings, the market leader in backup-power generation. Our position in Generac shares gained about 73%, rising due to the company's strong business execution and an expanding market opportunity in the wake of California's planned power outages. TopBuild, a U.S. installer and distributor of insulation products for the construction industry, gained roughly 115% for the fund and also notably contributed, benefiting from improved housing-market fundamentals. It also helped to hold a sizable stake in Synnex (+54%), a technology distributor and business-process outsourcer, as the company successfully integrated a recent corporate acquisition and improved its cash flow. In contrast, our biggest detractor versus the benchmark was Supernus Pharmaceuticals (-49%), a specialty drugmaker whose shares fell on stronger-than-expected competition. Another notable detractor was wireless-network access provider Boingo Wireless (-54%), which lowered earnings estimates.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 29, 2019, Jamie Harmon retired from Fidelity, leaving Jennifer Fo Cardillo as sole portfolio manager of the fund.Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2019
% of fund's net assets | |
Chemed Corp. | 1.9 |
Generac Holdings, Inc. | 1.8 |
SYNNEX Corp. | 1.8 |
ICON PLC | 1.7 |
Essent Group Ltd. | 1.7 |
First Citizens Bancshares, Inc. | 1.6 |
ICF International, Inc. | 1.6 |
Oshkosh Corp. | 1.5 |
Churchill Downs, Inc. | 1.5 |
Cushman & Wakefield PLC | 1.5 |
16.6 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Industrials | 18.3 |
Information Technology | 17.4 |
Financials | 17.2 |
Health Care | 13.4 |
Consumer Discretionary | 13.3 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019 * | ||
Stocks | 99.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
* Foreign investments - 11.7%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 3.4% | |||
Interactive Media & Services - 1.0% | |||
CarGurus, Inc. Class A (a) | 119,000 | $4,770,710 | |
Media - 1.9% | |||
Gray Television, Inc. (a) | 274,400 | 5,553,856 | |
The New York Times Co. Class A | 108,500 | 3,499,125 | |
9,052,981 | |||
Wireless Telecommunication Services - 0.5% | |||
Boingo Wireless, Inc. (a) | 190,800 | 2,196,108 | |
TOTAL COMMUNICATION SERVICES | 16,019,799 | ||
CONSUMER DISCRETIONARY - 13.3% | |||
Diversified Consumer Services - 0.8% | |||
Grand Canyon Education, Inc. (a) | 41,000 | 3,492,790 | |
Hotels, Restaurants & Leisure - 3.3% | |||
Churchill Downs, Inc. (b) | 53,700 | 6,981,537 | |
Hilton Grand Vacations, Inc. (a) | 87,756 | 3,038,990 | |
Planet Fitness, Inc. (a) | 73,100 | 5,403,552 | |
15,424,079 | |||
Household Durables - 3.6% | |||
Cavco Industries, Inc. (a) | 23,200 | 4,640,232 | |
Taylor Morrison Home Corp. (a) | 187,500 | 4,353,750 | |
TopBuild Corp. (a) | 41,200 | 4,543,536 | |
TRI Pointe Homes, Inc. (a) | 219,400 | 3,418,252 | |
16,955,770 | |||
Leisure Products - 1.3% | |||
Brunswick Corp. | 40,200 | 2,362,554 | |
Clarus Corp. | 120,973 | 1,523,050 | |
YETI Holdings, Inc. (a)(b) | 69,400 | 2,208,308 | |
6,093,912 | |||
Multiline Retail - 0.6% | |||
Ollie's Bargain Outlet Holdings, Inc. (a)(b) | 44,800 | 2,929,920 | |
Specialty Retail - 2.7% | |||
Aaron's, Inc. Class A | 26,900 | 1,570,960 | |
Boot Barn Holdings, Inc. (a) | 62,000 | 2,468,840 | |
Murphy U.S.A., Inc. (a) | 48,400 | 5,688,452 | |
The Children's Place Retail Stores, Inc. (b) | 40,700 | 2,940,982 | |
12,669,234 | |||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Carter's, Inc. | 45,900 | 4,741,929 | |
TOTAL CONSUMER DISCRETIONARY | 62,307,634 | ||
CONSUMER STAPLES - 2.4% | |||
Food & Staples Retailing - 1.2% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 243,020 | 5,759,574 | |
Food Products - 1.2% | |||
Nomad Foods Ltd. (a) | 272,900 | 5,730,900 | |
TOTAL CONSUMER STAPLES | 11,490,474 | ||
ENERGY - 2.1% | |||
Energy Equipment & Services - 0.5% | |||
Cactus, Inc. | 88,300 | 2,665,777 | |
Oil, Gas & Consumable Fuels - 1.6% | |||
Hess Midstream Partners LP | 260,299 | 5,323,115 | |
Rattler Midstream LP | 132,200 | 2,103,302 | |
7,426,417 | |||
TOTAL ENERGY | 10,092,194 | ||
FINANCIALS - 17.2% | |||
Banks - 6.9% | |||
ConnectOne Bancorp, Inc. | 253,376 | 6,382,541 | |
First Citizens Bancshares, Inc. | 14,600 | 7,589,080 | |
First Interstate Bancsystem, Inc. | 105,800 | 4,454,180 | |
Independent Bank Corp., Massachusetts | 63,100 | 5,313,020 | |
Old National Bancorp, Indiana | 149,500 | 2,702,960 | |
ServisFirst Bancshares, Inc. (b) | 100,400 | 3,650,544 | |
Trico Bancshares | 63,300 | 2,446,545 | |
32,538,870 | |||
Capital Markets - 3.4% | |||
Blucora, Inc. (a) | 139,471 | 3,283,147 | |
LPL Financial | 74,500 | 6,880,075 | |
Morningstar, Inc. | 35,600 | 5,592,760 | |
15,755,982 | |||
Consumer Finance - 1.4% | |||
First Cash Financial Services, Inc. | 82,600 | 6,677,384 | |
Insurance - 2.7% | |||
Enstar Group Ltd. (a) | 15,800 | 3,226,518 | |
Hastings Group Holdings PLC (c) | 1,121,434 | 2,577,273 | |
Primerica, Inc. | 49,000 | 6,558,160 | |
12,361,951 | |||
Thrifts & Mortgage Finance - 2.8% | |||
Essent Group Ltd. | 144,300 | 7,885,995 | |
WSFS Financial Corp. | 120,400 | 5,368,636 | |
13,254,631 | |||
TOTAL FINANCIALS | 80,588,818 | ||
HEALTH CARE - 13.4% | |||
Biotechnology - 2.5% | |||
Allakos, Inc. (a)(b) | 21,200 | 2,014,000 | |
Allogene Therapeutics, Inc. (a)(b) | 32,400 | 913,032 | |
Audentes Therapeutics, Inc. (a) | 24,200 | 702,526 | |
bluebird bio, Inc. (a) | 12,300 | 995,562 | |
FibroGen, Inc. (a) | 46,400 | 1,965,968 | |
G1 Therapeutics, Inc. (a) | 11,400 | 246,240 | |
Heron Therapeutics, Inc. (a) | 64,900 | 1,658,844 | |
Kezar Life Sciences, Inc. (a) | 36,200 | 94,482 | |
Kura Oncology, Inc. (a) | 59,100 | 942,054 | |
Mirati Therapeutics, Inc. (a) | 14,800 | 1,491,396 | |
Principia Biopharma, Inc. (a) | 23,300 | 834,839 | |
11,858,943 | |||
Health Care Equipment & Supplies - 2.6% | |||
Integra LifeSciences Holdings Corp. (a) | 77,500 | 4,726,725 | |
Masimo Corp. (a) | 21,100 | 3,271,977 | |
Merit Medical Systems, Inc. (a) | 56,400 | 1,579,200 | |
Tandem Diabetes Care, Inc. (a) | 29,400 | 2,029,482 | |
TransMedics Group, Inc. | 32,500 | 609,375 | |
12,216,759 | |||
Health Care Providers & Services - 3.0% | |||
Chemed Corp. | 20,300 | 8,729,408 | |
Encompass Health Corp. | 39,200 | 2,771,832 | |
LHC Group, Inc. (a) | 19,624 | 2,617,842 | |
14,119,082 | |||
Health Care Technology - 0.7% | |||
HMS Holdings Corp. (a) | 108,500 | 3,276,700 | |
Life Sciences Tools & Services - 3.5% | |||
10X Genomics, Inc. (a) | 5,900 | 382,851 | |
Charles River Laboratories International, Inc. (a) | 39,700 | 5,766,425 | |
ICON PLC (a) | 48,600 | 7,929,576 | |
PRA Health Sciences, Inc. (a) | 22,500 | 2,448,225 | |
16,527,077 | |||
Pharmaceuticals - 1.1% | |||
Horizon Pharma PLC (a) | 62,300 | 2,042,194 | |
Supernus Pharmaceuticals, Inc. (a) | 77,400 | 1,809,612 | |
Zogenix, Inc. (a) | 25,700 | 1,227,946 | |
5,079,752 | |||
TOTAL HEALTH CARE | 63,078,313 | ||
INDUSTRIALS - 18.3% | |||
Building Products - 1.4% | |||
Armstrong World Industries, Inc. | 36,900 | 3,543,138 | |
Patrick Industries, Inc. | 58,581 | 2,900,931 | |
6,444,069 | |||
Commercial Services & Supplies - 1.1% | |||
Tetra Tech, Inc. | 55,900 | 4,935,411 | |
Construction & Engineering - 1.7% | |||
EMCOR Group, Inc. | 40,900 | 3,637,237 | |
MasTec, Inc. (a) | 68,300 | 4,531,022 | |
8,168,259 | |||
Electrical Equipment - 1.8% | |||
Generac Holdings, Inc. (a) | 85,600 | 8,431,600 | |
Machinery - 8.1% | |||
Douglas Dynamics, Inc. | 76,500 | 4,139,415 | |
ESCO Technologies, Inc. | 32,400 | 2,853,468 | |
Gardner Denver Holdings, Inc. (a) | 63,800 | 2,160,906 | |
ITT, Inc. | 97,600 | 6,810,528 | |
Luxfer Holdings PLC sponsored | 296,700 | 5,183,349 | |
Oshkosh Corp. | 78,400 | 7,092,064 | |
Rexnord Corp. (a) | 208,100 | 6,573,879 | |
SPX Flow, Inc. (a) | 71,600 | 3,393,840 | |
38,207,449 | |||
Professional Services - 3.4% | |||
ASGN, Inc. (a) | 60,900 | 4,080,909 | |
FTI Consulting, Inc. (a) | 41,100 | 4,479,489 | |
ICF International, Inc. | 83,376 | 7,481,328 | |
16,041,726 | |||
Trading Companies & Distributors - 0.8% | |||
GMS, Inc. (a) | 119,900 | 3,712,104 | |
TOTAL INDUSTRIALS | 85,940,618 | ||
INFORMATION TECHNOLOGY - 17.4% | |||
Electronic Equipment & Components - 5.0% | |||
CDW Corp. | 41,200 | 5,564,060 | |
ePlus, Inc. (a) | 44,513 | 3,719,951 | |
Insight Enterprises, Inc. (a) | 55,698 | 3,653,232 | |
Napco Security Technolgies, Inc. (a)(b) | 67,141 | 2,098,156 | |
SYNNEX Corp. | 67,613 | 8,303,553 | |
23,338,952 | |||
IT Services - 5.2% | |||
Booz Allen Hamilton Holding Corp. Class A | 80,900 | 5,886,284 | |
Euronet Worldwide, Inc. (a) | 37,300 | 5,863,187 | |
Genpact Ltd. | 108,300 | 4,407,810 | |
Hackett Group, Inc. | 84,407 | 1,293,959 | |
KBR, Inc. | 38,900 | 1,158,053 | |
Repay Holdings Corp. (a) | 190,500 | 2,634,615 | |
Verra Mobility Corp. (a) | 202,100 | 3,025,437 | |
24,269,345 | |||
Semiconductors & Semiconductor Equipment - 1.7% | |||
Entegris, Inc. | 81,600 | 3,861,312 | |
Onto Innovation, Inc. (a) | 128,700 | 4,319,172 | |
8,180,484 | |||
Software - 5.5% | |||
CyberArk Software Ltd. (a) | 27,100 | 3,321,105 | |
Everbridge, Inc. (a) | 27,000 | 2,374,380 | |
j2 Global, Inc. | 69,100 | 6,704,082 | |
Pegasystems, Inc. | 37,500 | 2,910,750 | |
Proofpoint, Inc. (a)(b) | 30,500 | 3,620,045 | |
PROS Holdings, Inc. (a) | 51,200 | 3,189,248 | |
RealPage, Inc. (a) | 27,100 | 1,491,313 | |
Zensar Technologies Ltd. | 850,161 | 2,211,042 | |
25,821,965 | |||
TOTAL INFORMATION TECHNOLOGY | 81,610,746 | ||
MATERIALS - 4.4% | |||
Chemicals - 2.0% | |||
Ashland Global Holdings, Inc. | 50,200 | 3,599,340 | |
Element Solutions, Inc. (a) | 479,600 | 5,606,524 | |
9,205,864 | |||
Construction Materials - 0.8% | |||
Eagle Materials, Inc. | 40,800 | 3,754,824 | |
Containers & Packaging - 1.2% | |||
Aptargroup, Inc. | 52,400 | 5,875,088 | |
Paper & Forest Products - 0.4% | |||
Neenah, Inc. | 24,400 | 1,775,832 | |
TOTAL MATERIALS | 20,611,608 | ||
REAL ESTATE - 4.7% | |||
Equity Real Estate Investment Trusts (REITs) - 2.7% | |||
Americold Realty Trust | 143,300 | 5,390,946 | |
CoreSite Realty Corp. | 21,400 | 2,426,546 | |
EPR Properties | 66,400 | 4,709,088 | |
12,526,580 | |||
Real Estate Management & Development - 2.0% | |||
CBRE Group, Inc. (a) | 41,900 | 2,389,138 | |
Cushman & Wakefield PLC (a) | 359,833 | 6,977,162 | |
9,366,300 | |||
TOTAL REAL ESTATE | 21,892,880 | ||
UTILITIES - 1.5% | |||
Gas Utilities - 0.8% | |||
Star Gas Partners LP | 403,178 | 3,785,841 | |
Multi-Utilities - 0.7% | |||
Telecom Plus PLC | 197,467 | 3,396,608 | |
TOTAL UTILITIES | 7,182,449 | ||
TOTAL COMMON STOCKS | |||
(Cost $380,549,353) | 460,815,533 | ||
Money Market Funds - 4.8% | |||
Fidelity Cash Central Fund 1.61% (d) | 3,797,450 | 3,798,209 | |
Fidelity Securities Lending Cash Central Fund 1.61% (d)(e) | 18,684,548 | 18,686,417 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $22,484,548) | 22,484,626 | ||
Equity Funds - 1.0% | |||
Small Blend Funds - 1.0% | |||
iShares Russell 2000 Index ETF | |||
(Cost $4,276,417) | 27,800 | 4,497,206 | |
TOTAL INVESTMENT IN SECURITIES - 103.9% | |||
(Cost $407,310,318) | 487,797,365 | ||
NET OTHER ASSETS (LIABILITIES) - (3.9)% | (18,325,868) | ||
NET ASSETS - 100% | $469,471,497 |
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 $2,577,273 or 0.5% 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.
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 | $266,719 |
Fidelity Securities Lending Cash Central Fund | 119,978 |
Total | $386,697 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
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 | 88.3% |
United Kingdom | 3.9% |
Bermuda | 3.3% |
Ireland | 2.1% |
British Virgin Islands | 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
November 30, 2019 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $18,128,468) — See accompanying schedule: Unaffiliated issuers (cost $384,825,770) | $465,312,739 | |
Fidelity Central Funds (cost $22,484,548) | 22,484,626 | |
Total Investment in Securities (cost $407,310,318) | $487,797,365 | |
Cash | 63,930 | |
Foreign currency held at value (cost $6) | 6 | |
Receivable for fund shares sold | 5,709,437 | |
Dividends receivable | 264,592 | |
Distributions receivable from Fidelity Central Funds | 13,259 | |
Total assets | 493,848,589 | |
Liabilities | ||
Payable for fund shares redeemed | $5,686,947 | |
Other payables and accrued expenses | 3,667 | |
Collateral on securities loaned | 18,686,478 | |
Total liabilities | 24,377,092 | |
Net Assets | $469,471,497 | |
Net Assets consist of: | ||
Paid in capital | $377,684,250 | |
Total accumulated earnings (loss) | 91,787,247 | |
Net Assets | $469,471,497 | |
Net Asset Value, offering price and redemption price per share ($469,471,497 ÷ 40,059,895 shares) | $11.72 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2019 | ||
Investment Income | ||
Dividends | $3,538,752 | |
Interest | 5,684 | |
Income from Fidelity Central Funds (including $119,978 from security lending) | 386,697 | |
Total income | 3,931,133 | |
Expenses | ||
Custodian fees and expenses | $18,446 | |
Independent trustees' fees and expenses | 2,535 | |
Interest | 742 | |
Commitment fees | 1,162 | |
Total expenses | 22,885 | |
Net investment income (loss) | 3,908,248 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 7,586,843 | |
Fidelity Central Funds | (152) | |
Foreign currency transactions | (5,362) | |
Futures contracts | 1,904,008 | |
Total net realized gain (loss) | 9,485,337 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $41,442) | 50,118,327 | |
Fidelity Central Funds | 78 | |
Assets and liabilities in foreign currencies | (18,123) | |
Futures contracts | (4,352) | |
Total change in net unrealized appreciation (depreciation) | 50,095,930 | |
Net gain (loss) | 59,581,267 | |
Net increase (decrease) in net assets resulting from operations | $63,489,515 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,908,248 | $3,906,262 |
Net realized gain (loss) | 9,485,337 | 36,501,502 |
Change in net unrealized appreciation (depreciation) | 50,095,930 | (57,675,834) |
Net increase (decrease) in net assets resulting from operations | 63,489,515 | (17,268,070) |
Distributions to shareholders | (41,752,285) | (30,404,834) |
Share transactions | ||
Proceeds from sales of shares | 85,084,631 | 56,560,740 |
Reinvestment of distributions | 41,752,285 | 30,404,834 |
Cost of shares redeemed | (120,256,244) | (61,234,443) |
Net increase (decrease) in net assets resulting from share transactions | 6,580,672 | 25,731,131 |
Total increase (decrease) in net assets | 28,317,902 | (21,941,773) |
Net Assets | ||
Beginning of period | 441,153,595 | 463,095,368 |
End of period | $469,471,497 | $441,153,595 |
Other Information | ||
Shares | ||
Sold | 7,779,011 | 4,702,111 |
Issued in reinvestment of distributions | 4,659,853 | 2,567,976 |
Redeemed | (11,054,068) | (4,989,443) |
Net increase (decrease) | 1,384,796 | 2,280,644 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Series Small Cap Fund
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $11.41 | $12.72 | $10.93 | $11.26 | $11.19 |
Income from Investment Operations | |||||
Net investment income (loss)A | .09 | .10 | .08 | .09B | .03C |
Net realized and unrealized gain (loss) | 1.32 | (.58) | 1.81 | .10 | .38 |
Total from investment operations | 1.41 | (.48) | 1.89 | .19 | .41 |
Distributions from net investment income | (.11)D | (.07) | (.10) | (.03) | (.02) |
Distributions from net realized gain | (.99)D | (.76) | – | (.50) | (.32) |
Total distributions | (1.10) | (.83) | (.10) | (.52)E | (.34) |
Net asset value, end of period | $11.72 | $11.41 | $12.72 | $10.93 | $11.26 |
Total ReturnF | 15.27% | (4.02)% | 17.37% | 1.96% | 3.81% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .01% | .01% | .41% | .97% | 1.04% |
Expenses net of fee waivers, if any | .01% | .01% | .41% | .97% | 1.03% |
Expenses net of all reductions | .01% | - %I | .40% | .97% | 1.02% |
Net investment income (loss) | .89% | .83% | .72% | .85%B | .30%C |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $469,471 | $441,154 | $463,095 | $451,368 | $483,566 |
Portfolio turnover rateJ | 76% | 82% | 88% | 90% | 35% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E 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.
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 represents less than .005%.
J Amount does not include the portfolio activity of any underlying Fidelity Central Fund.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2019
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 are offered only to certain other Fidelity funds and Fidelity managed 529 plans. 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 ranged from less than .005% to .01%.
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. 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.
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.
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.
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, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences resulted in distribution reclassifications.
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, passive foreign investment companies (PFIC), 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 | $98,426,455 |
Gross unrealized depreciation | (18,372,211) |
Net unrealized appreciation (depreciation) | $80,054,244 |
Tax Cost | $407,743,121 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $2,271,732 |
Undistributed long-term capital gain | $9,975,386 |
Net unrealized appreciation (depreciation) on securities and other investments | $79,507,703 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $4,651,853 | $ 2,604,033 |
Long-term Capital Gains | 37,100,432 | 27,800,801 |
Total | $41,752,285 | $ 30,404,834 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin 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 $327,009,439 and $335,985,857, 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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Series Small Cap Fund | $12,250 |
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 | $5,439,500 | 2.46% | $742 |
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 $1,162 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 from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $4,356. 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 $13 from securities loaned to NFS, as affiliated borrower.
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.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
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, 2019, the related statement of operations for the year ended November 30, 2019, the statement of changes in net assets for each of the two years in the period ended November 30, 2019, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2019 (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, 2019, 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, 2019 and the financial highlights for each of the five years in the period ended November 30, 2019 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, 2019 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 14, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Actual | - %-C | $1,000.00 | $1,146.80 | $--D |
Hypothetical-E | $1,000.00 | $1,025.07 | $--D |
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 Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Series Small Cap Fund voted to pay on December 19, 2019, to shareholders of record at the opening of business on December 18, 2019, a distribution of $0.281 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.067 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019, $10,031,942, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 54% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 68% 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 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Series Small Cap Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.AXS5-ANN-0120
1.967941.106
Fidelity Advisor® Series Growth Opportunities Fund
Annual Report
November 30, 2019
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fipro_logo.jpg)
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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Life of fundA |
Fidelity Advisor® Series Growth Opportunities Fund | 32.07% | 17.91% | 17.74% |
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/0001379491-20-000191/img552790537_740.jpg)
Period Ending Values | ||
$26,929 | Fidelity Advisor® Series Growth Opportunities Fund | |
$22,695 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Portfolio Manager Kyle Weaver: For the fiscal year, the fund gained 32.07%, considerably ahead of the 20.28% advance of the benchmark Russell 3000® Growth Index. Versus the benchmark, stock selection in the consumer staples sector contributed most by a wide margin, led by top contributor Juul Labs (+4%). We transitioned our non-benchmark holdings in Juul to a much smaller position the past 12 months, which was timely. Stock choices in consumer discretionary, communication services, health care and information technology also lifted the fund’s relative result. Roku (+301%), a maker of online media players, was a noteworthy contributor, along with Carvana (+117%), a fast-growing operator of an e-commerce platform for selling used cars. It also helped to establish a non-benchmark stake in Sea Limited (+221%), a Singapore-based provider of e-commerce and digital entertainment in various Southeast Asian countries, as well as in Latin America. Conversely, security selection in materials and industrials detracted this period, although a large underweighting offset much of the relative underperformance in the latter group. Alliance Data Systems returned -47% until I exited the position; the provider of private-label credit cards was the largest individual relative detractor. Untimely non-benchmark exposure to meal-delivery service Waitr Holdings returned about -97% and hurt our relative result. Waitr was not held at period end.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, 2019
% of fund's net assets | |
Microsoft Corp. | 7.1 |
Alphabet, Inc. Class C | 4.7 |
Amazon.com, Inc. | 4.5 |
Apple, Inc. | 4.4 |
Facebook, Inc. Class A | 3.4 |
Salesforce.com, Inc. | 2.6 |
Carvana Co. Class A | 2.0 |
UnitedHealth Group, Inc. | 1.7 |
LendingTree, Inc. | 1.6 |
JUUL Labs, Inc. Series C | 1.6 |
33.6 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Information Technology | 38.9 |
Communication Services | 16.9 |
Consumer Discretionary | 15.0 |
Health Care | 14.9 |
Industrials | 4.0 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019 * | ||
Stocks | 97.7% | |
Convertible Securities | 2.3% |
* Foreign investments - 14.9%
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 97.7% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 16.9% | |||
Entertainment - 3.9% | |||
Activision Blizzard, Inc. | 54,849 | $3,007,371 | |
Electronic Arts, Inc. (a) | 21,165 | 2,137,877 | |
Netflix, Inc. (a) | 8,373 | 2,634,648 | |
Roku, Inc. Class A (a) | 30,360 | 4,868,833 | |
Sea Ltd. ADR (a) | 154,752 | 5,732,014 | |
Take-Two Interactive Software, Inc. (a) | 11,622 | 1,410,330 | |
The Walt Disney Co. | 37,360 | 5,663,029 | |
25,454,102 | |||
Interactive Media & Services - 10.8% | |||
Alphabet, Inc.: | |||
Class A (a) | 7,095 | 9,252,519 | |
Class C (a) | 23,376 | 30,504,745 | |
CarGurus, Inc. Class A (a) | 148,710 | 5,961,784 | |
Facebook, Inc. Class A (a) | 108,208 | 21,819,061 | |
IAC/InterActiveCorp (a) | 11,100 | 2,471,970 | |
Zillow Group, Inc. Class A (a) | 4,228 | 165,146 | |
70,175,225 | |||
Media - 0.9% | |||
Charter Communications, Inc. Class A (a) | 2,250 | 1,057,523 | |
Comcast Corp. Class A | 101,391 | 4,476,413 | |
5,533,936 | |||
Wireless Telecommunication Services - 1.3% | |||
T-Mobile U.S., Inc. (a) | 107,554 | 8,448,367 | |
TOTAL COMMUNICATION SERVICES | 109,611,630 | ||
CONSUMER DISCRETIONARY - 14.9% | |||
Automobiles - 1.2% | |||
Tesla, Inc. (a) | 23,022 | 7,595,879 | |
Diversified Consumer Services - 0.2% | |||
Arco Platform Ltd. Class A (a) | 36,872 | 1,585,496 | |
Hotels, Restaurants & Leisure - 0.2% | |||
McDonald's Corp. | 1,000 | 194,480 | |
Planet Fitness, Inc. (a) | 14,787 | 1,093,055 | |
Starbucks Corp. | 68 | 5,809 | |
1,293,344 | |||
Internet & Direct Marketing Retail - 9.8% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 45,547 | 9,109,400 | |
Amazon.com, Inc. (a) | 16,193 | 29,160,354 | |
Meituan Dianping Class B (a) | 135,408 | 1,785,098 | |
MercadoLibre, Inc. (a) | 6,511 | 3,780,156 | |
Naspers Ltd. Class N | 11,334 | 1,614,894 | |
Pinduoduo, Inc. ADR (a) | 200,982 | 7,225,303 | |
Prosus NV (a) | 14,334 | 977,125 | |
The Booking Holdings, Inc. (a) | 3,109 | 5,919,629 | |
The RealReal, Inc. (b) | 84,771 | 1,458,061 | |
Wayfair LLC Class A (a) | 32,071 | 2,723,469 | |
63,753,489 | |||
Multiline Retail - 0.2% | |||
Dollar Tree, Inc. (a) | 15,256 | 1,395,314 | |
Specialty Retail - 2.9% | |||
Carvana Co. Class A (a)(b) | 136,975 | 13,056,457 | |
Floor & Decor Holdings, Inc. Class A (a) | 58,118 | 2,790,245 | |
Lowe's Companies, Inc. | 23,412 | 2,746,462 | |
18,593,164 | |||
Textiles, Apparel & Luxury Goods - 0.4% | |||
Allbirds, Inc. (a)(c)(d) | 898 | 42,897 | |
lululemon athletica, Inc. (a) | 11,001 | 2,482,816 | |
2,525,713 | |||
TOTAL CONSUMER DISCRETIONARY | 96,742,399 | ||
CONSUMER STAPLES - 2.1% | |||
Beverages - 0.3% | |||
Budweiser Brewing Co. APAC Ltd. (a)(e) | 82,034 | 292,372 | |
Fever-Tree Drinks PLC | 54,410 | 1,539,662 | |
1,832,034 | |||
Food & Staples Retailing - 0.6% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 77,272 | 1,831,346 | |
Performance Food Group Co. (a) | 38,884 | 1,829,881 | |
Walmart, Inc. | 1,234 | 146,957 | |
3,808,184 | |||
Food Products - 0.1% | |||
Beyond Meat, Inc. (b) | 8,756 | 726,398 | |
Personal Products - 0.1% | |||
Unilever NV | 9,314 | 554,118 | |
Tobacco - 1.0% | |||
Altria Group, Inc. | 130,632 | 6,492,410 | |
JUUL Labs, Inc. Class B (a)(c)(d) | 709 | 101,422 | |
6,593,832 | |||
TOTAL CONSUMER STAPLES | 13,514,566 | ||
ENERGY - 1.1% | |||
Oil, Gas & Consumable Fuels - 1.1% | |||
Reliance Industries Ltd. | 319,926 | 6,916,518 | |
FINANCIALS - 3.0% | |||
Banks - 0.2% | |||
HDFC Bank Ltd. sponsored ADR | 24,722 | 1,526,584 | |
Capital Markets - 0.9% | |||
Cboe Global Markets, Inc. | 13,752 | 1,635,113 | |
Charles Schwab Corp. | 13,768 | 681,516 | |
London Stock Exchange Group PLC | 21,641 | 1,924,355 | |
Morningstar, Inc. | 500 | 78,550 | |
MSCI, Inc. | 3,021 | 783,013 | |
TD Ameritrade Holding Corp. | 19,226 | 996,484 | |
Virtu Financial, Inc. Class A | 800 | 13,280 | |
6,112,311 | |||
Consumer Finance - 0.3% | |||
Synchrony Financial | 43,799 | 1,638,521 | |
Thrifts & Mortgage Finance - 1.6% | |||
LendingTree, Inc. (a)(b) | 28,300 | 10,202,999 | |
TOTAL FINANCIALS | 19,480,415 | ||
HEALTH CARE - 14.9% | |||
Biotechnology - 5.4% | |||
AbbVie, Inc. | 14,665 | 1,286,560 | |
ACADIA Pharmaceuticals, Inc. (a) | 32,626 | 1,477,632 | |
Acceleron Pharma, Inc. (a) | 6,805 | 333,173 | |
Agios Pharmaceuticals, Inc. (a) | 20,200 | 785,780 | |
Aimmune Therapeutics, Inc. (a)(b) | 19,489 | 544,133 | |
Alexion Pharmaceuticals, Inc. (a) | 40,164 | 4,576,286 | |
Alnylam Pharmaceuticals, Inc. (a) | 20,415 | 2,391,413 | |
Argenx SE ADR (a) | 2,671 | 395,442 | |
Ascendis Pharma A/S sponsored ADR (a) | 7,116 | 819,621 | |
BeiGene Ltd. (a) | 12,487 | 191,735 | |
BioNTech SE ADR (a)(b) | 33,693 | 740,572 | |
bluebird bio, Inc. (a) | 8,095 | 655,209 | |
Blueprint Medicines Corp. (a) | 2,612 | 214,288 | |
Crinetics Pharmaceuticals, Inc. (a)(b) | 36,739 | 718,615 | |
FibroGen, Inc. (a) | 54,799 | 2,321,834 | |
G1 Therapeutics, Inc. (a) | 17,853 | 385,625 | |
Gritstone Oncology, Inc. (a) | 44,893 | 391,018 | |
Heron Therapeutics, Inc. (a) | 38,179 | 975,855 | |
Insmed, Inc. (a) | 147,900 | 3,409,095 | |
Intercept Pharmaceuticals, Inc. (a) | 10,063 | 1,090,527 | |
La Jolla Pharmaceutical Co. (a) | 2,625 | 7,193 | |
Neurocrine Biosciences, Inc. (a) | 19,228 | 2,242,177 | |
Sage Therapeutics, Inc. (a) | 5,497 | 850,771 | |
Sarepta Therapeutics, Inc. (a) | 21,548 | 2,423,935 | |
Vertex Pharmaceuticals, Inc. (a) | 26,894 | 5,963,745 | |
35,192,234 | |||
Health Care Equipment & Supplies - 5.0% | |||
Axonics Modulation Technologies, Inc. (a) | 2,100 | 51,219 | |
Becton, Dickinson & Co. | 17,244 | 4,457,574 | |
Boston Scientific Corp. (a) | 140,160 | 6,061,920 | |
DexCom, Inc. (a) | 10,487 | 2,383,800 | |
Insulet Corp. (a) | 12,245 | 2,273,897 | |
Intuitive Surgical, Inc. (a) | 5,427 | 3,217,668 | |
Masimo Corp. (a) | 10,863 | 1,684,525 | |
Novocure Ltd. (a) | 40,642 | 3,746,380 | |
Penumbra, Inc. (a) | 15,695 | 2,776,759 | |
SmileDirectClub, Inc. (a)(b) | 460,547 | 4,591,654 | |
TransMedics Group, Inc. | 66,064 | 1,238,700 | |
32,484,096 | |||
Health Care Providers & Services - 3.2% | |||
Centene Corp. (a) | 11,456 | 692,744 | |
Cigna Corp. | 12,368 | 2,472,611 | |
Guardant Health, Inc. (a) | 4,004 | 310,991 | |
Humana, Inc. | 17,902 | 6,108,699 | |
UnitedHealth Group, Inc. | 38,291 | 10,716,502 | |
20,301,547 | |||
Life Sciences Tools & Services - 0.3% | |||
10X Genomics, Inc. (a) | 3,660 | 237,497 | |
Bruker Corp. | 22,855 | 1,169,947 | |
Thermo Fisher Scientific, Inc. | 1,100 | 345,345 | |
1,752,789 | |||
Pharmaceuticals - 1.0% | |||
AstraZeneca PLC sponsored ADR | 7,425 | 359,964 | |
Bristol-Myers Squibb Co. | 32,825 | 1,869,056 | |
Bristol-Myers Squibb Co. rights (a) | 10,584 | 22,756 | |
Nabriva Therapeutics PLC (a)(b) | 339,519 | 685,828 | |
Nektar Therapeutics (a) | 33,529 | 680,303 | |
OptiNose, Inc. (a) | 17,423 | 162,731 | |
Roche Holding AG (participation certificate) | 5,851 | 1,803,822 | |
Theravance Biopharma, Inc. (a) | 38,798 | 844,244 | |
6,428,704 | |||
TOTAL HEALTH CARE | 96,159,370 | ||
INDUSTRIALS - 3.7% | |||
Aerospace & Defense - 0.1% | |||
Northrop Grumman Corp. | 2,484 | 873,797 | |
Airlines - 1.1% | |||
JetBlue Airways Corp. (a) | 111,058 | 2,140,088 | |
Spirit Airlines, Inc. (a) | 123,899 | 4,840,734 | |
6,980,822 | |||
Electrical Equipment - 0.5% | |||
Sunrun, Inc. (a) | 114,228 | 1,585,485 | |
Vestas Wind Systems A/S | 18,540 | 1,764,478 | |
3,349,963 | |||
Industrial Conglomerates - 0.1% | |||
General Electric Co. | 59,300 | 668,311 | |
Machinery - 0.3% | |||
Minebea Mitsumi, Inc. | 92,056 | 1,786,940 | |
Professional Services - 0.3% | |||
TransUnion Holding Co., Inc. | 25,504 | 2,201,250 | |
Road & Rail - 1.3% | |||
Lyft, Inc. | 120,439 | 5,899,102 | |
Uber Technologies, Inc. | 82,093 | 2,429,953 | |
8,329,055 | |||
TOTAL INDUSTRIALS | 24,190,138 | ||
INFORMATION TECHNOLOGY - 38.7% | |||
Electronic Equipment & Components - 0.5% | |||
Flextronics International Ltd. (a) | 95,900 | 1,138,333 | |
TTM Technologies, Inc. (a) | 177,161 | 2,375,729 | |
3,514,062 | |||
IT Services - 9.7% | |||
Adyen BV (a)(e) | 688 | 527,746 | |
Black Knight, Inc. (a) | 5,700 | 359,157 | |
EPAM Systems, Inc. (a) | 4,727 | 1,001,415 | |
Fidelity National Information Services, Inc. | 17,035 | 2,353,385 | |
GDS Holdings Ltd. ADR (a)(b) | 183,606 | 8,596,433 | |
Genpact Ltd. | 16,242 | 661,049 | |
Global Payments, Inc. | 23,170 | 4,196,087 | |
GoDaddy, Inc. (a) | 85,601 | 5,682,194 | |
MasterCard, Inc. Class A | 28,304 | 8,271,278 | |
MongoDB, Inc. Class A (a) | 16,334 | 2,428,866 | |
Okta, Inc. (a) | 10,779 | 1,398,899 | |
PagSeguro Digital Ltd. (a) | 71,017 | 2,410,317 | |
PayPal Holdings, Inc. (a) | 45,455 | 4,909,595 | |
StoneCo Ltd. Class A (a) | 1,800 | 73,764 | |
Twilio, Inc. Class A (a) | 18,870 | 1,948,894 | |
Visa, Inc. Class A | 51,892 | 9,574,593 | |
Wix.com Ltd. (a) | 72,620 | 8,779,032 | |
63,172,704 | |||
Semiconductors & Semiconductor Equipment - 6.5% | |||
Applied Materials, Inc. | 60,125 | 3,481,238 | |
Broadcom, Inc. | 10,269 | 3,247,160 | |
Lam Research Corp. | 16,270 | 4,341,324 | |
Marvell Technology Group Ltd. | 178,053 | 4,695,258 | |
Micron Technology, Inc. (a) | 139,828 | 6,643,228 | |
NVIDIA Corp. | 41,562 | 9,008,148 | |
NXP Semiconductors NV | 60,028 | 6,938,036 | |
ON Semiconductor Corp. (a) | 101,539 | 2,180,042 | |
Qualcomm, Inc. | 14,811 | 1,237,459 | |
Skyworks Solutions, Inc. | 783 | 76,969 | |
SolarEdge Technologies, Inc. (a) | 2,545 | 207,697 | |
42,056,559 | |||
Software - 17.2% | |||
Adobe, Inc. (a) | 27,218 | 8,424,788 | |
Anaplan, Inc. (a) | 27,015 | 1,456,649 | |
Autodesk, Inc. (a) | 37,252 | 6,738,887 | |
Cloudflare, Inc. | 11,400 | 199,865 | |
Coupa Software, Inc. (a) | 14,393 | 2,209,182 | |
Datadog, Inc. Class A (a)(b) | 18,082 | 737,203 | |
DocuSign, Inc. (a) | 27,922 | 1,988,326 | |
Elastic NV (a) | 25,560 | 2,029,720 | |
HubSpot, Inc. (a) | 13,450 | 2,030,950 | |
Intuit, Inc. | 9,010 | 2,332,599 | |
Lightspeed POS, Inc. (a) | 96,105 | 2,516,398 | |
Microsoft Corp. | 305,580 | 46,258,693 | |
Nutanix, Inc. Class A (a) | 11,900 | 444,465 | |
Q2 Holdings, Inc. (a) | 3,488 | 294,492 | |
RingCentral, Inc. (a) | 5,609 | 967,384 | |
Salesforce.com, Inc. (a) | 102,927 | 16,765,779 | |
ServiceNow, Inc. (a) | 11,550 | 3,269,112 | |
SS&C Technologies Holdings, Inc. | 17,535 | 1,052,977 | |
The Trade Desk, Inc. (a)(b) | 31,824 | 8,380,532 | |
Workday, Inc. Class A (a) | 12,536 | 2,245,448 | |
Xero Ltd. (a) | 1,553 | 85,381 | |
Zoom Video Communications, Inc. Class A (b) | 9,013 | 671,469 | |
111,100,299 | |||
Technology Hardware, Storage & Peripherals - 4.8% | |||
Apple, Inc. | 105,643 | 28,233,092 | |
Western Digital Corp. | 53,404 | 2,687,823 | |
30,920,915 | |||
TOTAL INFORMATION TECHNOLOGY | 250,764,539 | ||
MATERIALS - 0.9% | |||
Chemicals - 0.9% | |||
LG Chemical Ltd. | 9,771 | 2,535,183 | |
Olin Corp. | 73,385 | 1,285,705 | |
The Chemours Co. LLC | 109,683 | 1,731,895 | |
5,552,783 | |||
REAL ESTATE - 0.8% | |||
Equity Real Estate Investment Trusts (REITs) - 0.7% | |||
American Tower Corp. | 12,598 | 2,696,350 | |
Equinix, Inc. | 2,377 | 1,347,402 | |
4,043,752 | |||
Real Estate Management & Development - 0.1% | |||
Redfin Corp. (a)(b) | 41,096 | 792,331 | |
TOTAL REAL ESTATE | 4,836,083 | ||
UTILITIES - 0.7% | |||
Electric Utilities - 0.6% | |||
NextEra Energy, Inc. | 7,022 | 1,641,884 | |
ORSTED A/S (e) | 26,401 | 2,433,200 | |
4,075,084 | |||
Independent Power and Renewable Electricity Producers - 0.1% | |||
Sunnova Energy International, Inc. (b) | 66,869 | 687,413 | |
TOTAL UTILITIES | 4,762,497 | ||
TOTAL COMMON STOCKS | |||
(Cost $375,189,549) | 632,530,938 | ||
Preferred Stocks - 2.3% | |||
Convertible Preferred Stocks - 2.3% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
Neutron Holdings, Inc. Series C (a)(c)(d) | 1,387,600 | 336,493 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (a)(c)(d) | 354 | 16,911 | |
Series B (a)(c)(d) | 62 | 2,962 | |
Series C (a)(c)(d) | 596 | 28,471 | |
48,344 | |||
TOTAL CONSUMER DISCRETIONARY | 384,837 | ||
CONSUMER STAPLES - 1.7% | |||
Food & Staples Retailing - 0.1% | |||
Blink Health LLC Series C (c)(d) | 12,949 | 494,341 | |
Sweetgreen, Inc.: | |||
Series C (c)(d) | 322 | 5,506 | |
Series D (c)(d) | 5,177 | 88,527 | |
Series I (c)(d) | 12,201 | 208,637 | |
797,011 | |||
Tobacco - 1.6% | |||
JUUL Labs, Inc.: | |||
Series C (a)(c)(d) | 70,175 | 10,038,534 | |
Series D (a)(c)(d) | 938 | 134,181 | |
10,172,715 | |||
TOTAL CONSUMER STAPLES | 10,969,726 | ||
FINANCIALS - 0.0% | |||
Insurance - 0.0% | |||
Clover Health Series D (a)(c)(d) | 67,979 | 232,488 | |
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Nuvation Bio, Inc. Series A (c)(d)(f) | 191,200 | 147,488 | |
INDUSTRIALS - 0.3% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series I (a)(c)(d) | 3,290 | 704,060 | |
Road & Rail - 0.2% | |||
Convoy, Inc. Series D (c)(d) | 93,888 | 1,271,244 | |
TOTAL INDUSTRIALS | 1,975,304 | ||
INFORMATION TECHNOLOGY - 0.2% | |||
Software - 0.2% | |||
ACV Auctions, Inc. Series E (c)(d) | 229,793 | 1,270,801 | |
REAL ESTATE - 0.0% | |||
Real Estate Management & Development - 0.0% | |||
Sonder Canada, Inc. Series D (c)(d) | 15,672 | 164,493 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 15,145,137 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (a)(c)(d) | 190 | 9,076 | |
TOTAL PREFERRED STOCKS | |||
(Cost $5,164,162) | 15,154,213 | ||
Money Market Funds - 9.2% | |||
Fidelity Cash Central Fund 1.61% (g) | 17,452,309 | 17,455,799 | |
Fidelity Securities Lending Cash Central Fund 1.61% (g)(h) | 41,866,600 | 41,870,787 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $59,326,586) | 59,326,586 | ||
TOTAL INVESTMENT IN SECURITIES - 109.2% | |||
(Cost $439,680,297) | 707,011,737 | ||
NET OTHER ASSETS (LIABILITIES) - (9.2)% | (59,467,539) | ||
NET ASSETS - 100% | $647,544,198 |
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 $15,298,532 or 2.4% 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 $3,253,318 or 0.5% of net assets.
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
ACV Auctions, Inc. Series E | 11/6/19 | $1,270,801 |
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 |
Blink Health LLC Series C | 11/7/19 | $494,341 |
Clover Health Series D | 6/7/17 | $637,493 |
Convoy, Inc. Series D | 10/30/19 | $1,271,244 |
JUUL Labs, Inc. Class B | 11/21/17 | $0 |
JUUL Labs, Inc. Series C | 5/22/15 | $0 |
JUUL Labs, Inc. Series D | 6/25/18 | $0 |
Neutron Holdings, Inc. Series C | 7/3/18 | $253,709 |
Nuvation Bio, Inc. Series A | 6/17/19 | $147,488 |
Sonder Canada, Inc. Series D | 5/21/19 | $164,493 |
Space Exploration Technologies Corp. Series I | 4/5/18 | $556,010 |
Sweetgreen, Inc. Series C | 9/13/19 | $5,506 |
Sweetgreen, Inc. Series D | 9/13/19 | $88,527 |
Sweetgreen, Inc. Series I | 9/13/19 | $208,637 |
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 | $81,609 |
Fidelity Securities Lending Cash Central Fund | 349,813 |
Total | $431,422 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $109,611,630 | $109,611,630 | $-- | $-- |
Consumer Discretionary | 97,136,312 | 95,084,608 | 1,614,894 | 436,810 |
Consumer Staples | 24,484,292 | 12,859,026 | 554,118 | 11,071,148 |
Energy | 6,916,518 | 6,916,518 | -- | -- |
Financials | 19,712,903 | 17,556,060 | 1,924,355 | 232,488 |
Health Care | 96,306,858 | 94,355,548 | 1,803,822 | 147,488 |
Industrials | 26,165,442 | 24,190,138 | -- | 1,975,304 |
Information Technology | 252,035,340 | 250,564,674 | 199,865 | 1,270,801 |
Materials | 5,552,783 | 5,552,783 | -- | -- |
Real Estate | 5,000,576 | 4,836,083 | -- | 164,493 |
Utilities | 4,762,497 | 4,762,497 | -- | -- |
Money Market Funds | 59,326,586 | 59,326,586 | -- | -- |
Total Investments in Securities: | $707,011,737 | $685,616,151 | $6,097,054 | $15,298,532 |
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 | $35,640,549 |
Net Realized Gain (Loss) on Investment Securities | 50,003,363 |
Net Unrealized Gain (Loss) on Investment Securities | (24,745,922) |
Cost of Purchases | 797,011 |
Proceeds of Sales | (50,623,853) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $11,071,148 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2019 | $(24,745,922) |
Other Investments in Securities | |
Beginning Balance | $6,557,526 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | (2,024,561) |
Cost of Purchases | 2,854,026 |
Proceeds of Sales | (3,159,607) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $4,227,384 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2019 | $(189,010) |
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 | 85.1% |
Cayman Islands | 5.6% |
Netherlands | 1.9% |
Israel | 1.3% |
India | 1.3% |
Others (Individually Less Than 1%) | 4.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2019 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $40,797,634) — See accompanying schedule: Unaffiliated issuers (cost $380,353,711) | $647,685,151 | |
Fidelity Central Funds (cost $59,326,586) | 59,326,586 | |
Total Investment in Securities (cost $439,680,297) | $707,011,737 | |
Foreign currency held at value (cost $295,774) | 295,770 | |
Receivable for investments sold | 5,770,855 | |
Receivable for fund shares sold | 41,932 | |
Dividends receivable | 288,692 | |
Distributions receivable from Fidelity Central Funds | 44,848 | |
Other receivables | 1,312 | |
Total assets | 713,455,146 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $447,641 | |
Delayed delivery | 73,744 | |
Payable for fund shares redeemed | 23,227,013 | |
Other payables and accrued expenses | 289,275 | |
Collateral on securities loaned | 41,873,275 | |
Total liabilities | 65,910,948 | |
Net Assets | $647,544,198 | |
Net Assets consist of: | ||
Paid in capital | $236,960,643 | |
Total accumulated earnings (loss) | 410,583,555 | |
Net Assets | $647,544,198 | |
Net Asset Value, offering price and redemption price per share ($647,544,198 ÷ 39,794,096 shares) | $16.27 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2019 | ||
Investment Income | ||
Dividends | $3,654,786 | |
Non-Cash dividends | 937,171 | |
Income from Fidelity Central Funds (including $349,813 from security lending) | 431,422 | |
Total income | 5,023,379 | |
Expenses | ||
Custodian fees and expenses | $48,630 | |
Independent trustees' fees and expenses | 3,721 | |
Interest | 20,012 | |
Commitment fees | 1,713 | |
Total expenses | 74,076 | |
Net investment income (loss) | 4,949,303 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $79,235) | 140,504,025 | |
Fidelity Central Funds | (745) | |
Foreign currency transactions | (14,701) | |
Total net realized gain (loss) | 140,488,579 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $206,253) | 44,504,523 | |
Assets and liabilities in foreign currencies | (1,424) | |
Total change in net unrealized appreciation (depreciation) | 44,503,099 | |
Net gain (loss) | 184,991,678 | |
Net increase (decrease) in net assets resulting from operations | $189,940,981 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $4,949,303 | $4,516,554 |
Net realized gain (loss) | 140,488,579 | 110,580,462 |
Change in net unrealized appreciation (depreciation) | 44,503,099 | 23,085,757 |
Net increase (decrease) in net assets resulting from operations | 189,940,981 | 138,182,773 |
Distributions to shareholders | (116,238,648) | (57,776,852) |
Share transactions | ||
Proceeds from sales of shares | 112,560,324 | 48,085,779 |
Reinvestment of distributions | 116,238,648 | 57,776,852 |
Cost of shares redeemed | (291,300,492) | (168,412,313) |
Net increase (decrease) in net assets resulting from share transactions | (62,501,520) | (62,549,682) |
Total increase (decrease) in net assets | 11,200,813 | 17,856,239 |
Net Assets | ||
Beginning of period | 636,343,385 | 618,487,146 |
End of period | $647,544,198 | $636,343,385 |
Other Information | ||
Shares | ||
Sold | 7,714,881 | 3,387,118 |
Issued in reinvestment of distributions | 10,359,951 | 4,527,966 |
Redeemed | (19,446,179) | (11,384,837) |
Net increase (decrease) | (1,371,347) | (3,469,753) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Series Growth Opportunities Fund
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.46 | $13.86 | $10.62 | $12.23 | $11.79 |
Income from Investment Operations | |||||
Net investment income (loss)A | .11B | .10 | .09 | .05 | .05C |
Net realized and unrealized gain (loss) | 3.56 | 2.83 | 3.54 | (.32) | .60 |
Total from investment operations | 3.67 | 2.93 | 3.63 | (.27) | .65 |
Distributions from net investment income | (.11) | (.11) | (.04) | (.07) | (.02) |
Distributions from net realized gain | (2.75) | (1.22) | (.36) | (1.27) | (.20) |
Total distributions | (2.86) | (1.33) | (.39)D | (1.34) | (.21)E |
Net asset value, end of period | $16.27 | $15.46 | $13.86 | $10.62 | $12.23 |
Total ReturnF | 32.07% | 23.13% | 35.40% | (2.09)% | 5.71% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .01% | .01% | .31% | .62% | .74% |
Expenses net of fee waivers, if any | .01% | .01% | .31% | .62% | .74% |
Expenses net of all reductions | .01% | .01% | .30% | .61% | .74% |
Net investment income (loss) | .77%B | .69% | .71% | .45% | .44%C |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $647,544 | $636,343 | $618,487 | $590,988 | $633,109 |
Portfolio turnover rateI | 78%J | 47% | 50% | 67% | 50% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .62%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
D 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.
J 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, 2019
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 are offered only to certain other Fidelity funds and Fidelity managed 529 plans. 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 ranged from less than .005% to .01%.
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. 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, income approach and cost approach and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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 | $ 15,298,532 | Market comparable | Enterprise value/Sales multiple (EV/S) | 0.4 - 8.4 / 7.2 | Increase |
Transaction price | $0.77 | Increase | |||
Discount rate | 10.0% - 44.1% / 10.8% | Decrease | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Premium rate | 15.5% - 20.0% / 20.0% | Increase | |||
Market approach | Transaction price | $0.24 - $214.00 / $44.18 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
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, 2019, 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Non-cash dividends" and the impact of these dividends is presented in the Financial Highlights. 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, 2019, 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 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 | $275,851,940 |
Gross unrealized depreciation | (10,667,896) |
Net unrealized appreciation (depreciation) | $265,184,044 |
Tax Cost | $441,827,693 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $18,289,414 |
Undistributed long-term capital gain | $127,385,766 |
Net unrealized appreciation (depreciation) on securities and other investments | $265,182,425 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $14,057,523 | $ 18,314,172 |
Long-term Capital Gains | 102,181,125 | 39,462,680 |
Total | $116,238,648 | $ 57,776,852 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $492,110,174 and $684,868,738, 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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Series Growth Opportunities Fund | $10,461 |
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 | $9,221,625 | 2.44% | $20,012 |
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.
Affiliated Exchanges In-Kind. During the period, the Fund received investments and cash valued at $63,177,493 in exchange for 4,283,220 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
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 $1,713 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 from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower, at period end was $455,824. Total fees paid by the Fund to NFS, as lending agent, amounted to $23,733. 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 $39,151 from securities loaned to NFS, as affiliated borrower.
8. 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 and accounts managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
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, 2019, 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, 2019, 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, 2019, 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, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Actual | .01% | $1,000.00 | $1,162.10 | $.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 19, 2019, to shareholders of record at the opening of business on December 18, 2019, a distribution of $3.586 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.125 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2019, $127,385,766, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 20% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 26% of the dividend 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 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Series Growth Opportunities Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.AXS3-ANN-0120
1.967930.106
Fidelity Advisor® Series Equity Growth Fund
Annual Report
November 30, 2019
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-000191/fipro_logo.jpg)
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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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, 2019 | Past 1 year | Past 5 years | Life of fundA |
Fidelity Advisor® Series Equity Growth Fund | 19.73% | 13.63% | 13.64% |
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/0001379491-20-000191/img552791607_740.jpg)
Period Ending Values | ||
$20,172 | Fidelity Advisor® Series Equity Growth Fund | |
$20,207 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: U.S. stocks continued to roll for the year ending November 30, 2019, with the S&P 500® index soaring 16.11% and marking history as the longest and strongest bull market ever, despite persistent, nagging concerns about global growth and trade. After a rough December 2018, upbeat company earnings, along with signs the Fed may pause on rates, boosted stocks to an all-time high on April 30. In May, however, volatility spiked and the index sunk as trade negotiations between the U.S. and China broke down. The bull market roared back to recorded a series of highs in July, when the Fed, affirming a dovish shift in policy, cut interest rates for the first time since 2008. Volatility intensified in August, however, as the Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the U.S. economy could be heading for recession. The market proved resilient, however, achieving a new high on October 30, when the Fed lowered rates for the third time this year. The rally continued with a strong November (+4%). Information technology (+32%) led the way, as investors regained comfort taking on risk. Communication services (+21%) also stood out, followed by real estate (+18%) and utilities (+17%). In contrast, energy (-8%) was by far the weakest group – struggling amid sluggish oil prices – while several solid gainers nonetheless fell short of the market: health care (+7%), consumer staples and materials (+13% each), financials and consumer discretionary (+14% each), and industrials (+16%).Comments from Co-Portfolio Manager Jason Weiner: For the fiscal year, the fund gained 19.73%, lagging the 20.28% advance of the benchmark Russell 3000® Growth Index. Versus the benchmark, stock selection in the materials, financials and communication services sectors detracted most, followed by an overweighting in energy. Underweighting consumer electronics giant Apple was the largest individual relative detractor, as the stock gained 52% on greater-than-expected growth for subscription services, such as Apple Music and iCloud, from its installed base (consumers who already own iPhones). Untimely ownership of chemicals manufacturer Chemours (-43%) and online education provider Grand Canyon Education (-29%) also detracted before we decided to exit the positions. Conversely, stock picking in industrials and energy contributed to performance versus the benchmark, as did an overweighting in the software & services industry within information technology. Timely ownership of AbbVie, a leader in biologics, focused on autoimmune, infectious and cardiovascular diseases, was the largest individual contributor, gaining 35% for the fund after we established a position this period. It helped to hold a non-benchmark stake in Canadian e-commerce platform Shopify (+122%). Lastly, the fund’s position in cash detracted in an up market.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, 2019
% of fund's net assets | |
Microsoft Corp. | 9.2 |
Alphabet, Inc. Class A | 7.4 |
Apple, Inc. | 5.4 |
Facebook, Inc. Class A | 4.1 |
Visa, Inc. Class A | 4.0 |
Adobe, Inc. | 3.7 |
Amazon.com, Inc. | 3.7 |
Qualcomm, Inc. | 2.6 |
American Tower Corp. | 2.4 |
NVIDIA Corp. | 2.2 |
44.7 |
Top Five Market Sectors as of November 30, 2019
% of fund's net assets | |
Information Technology | 40.4 |
Communication Services | 14.1 |
Health Care | 13.6 |
Consumer Discretionary | 13.1 |
Industrials | 7.1 |
Asset Allocation (% of fund's net assets)
As of November 30, 2019* | ||
Stocks | 100.1% | |
Short-Term Investments and Net Other Assets (Liabilities)** | (0.1)% |
* Foreign investments – 12.7%
** Net Other Assets (Liabilities) are not included in the pie chart
Schedule of Investments November 30, 2019
Showing Percentage of Net Assets
Common Stocks - 99.9% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 14.1% | |||
Entertainment - 1.8% | |||
Activision Blizzard, Inc. | 214,334 | $11,751,933 | |
Electronic Arts, Inc. (a) | 53,969 | 5,451,409 | |
17,203,342 | |||
Interactive Media & Services - 12.3% | |||
Alphabet, Inc. Class A (a) | 55,302 | 72,118,785 | |
Facebook, Inc. Class A (a) | 202,369 | 40,805,685 | |
Tencent Holdings Ltd. | 184,817 | 7,798,382 | |
120,722,852 | |||
TOTAL COMMUNICATION SERVICES | 137,926,194 | ||
CONSUMER DISCRETIONARY - 13.1% | |||
Automobiles - 0.8% | |||
Ferrari NV | 46,625 | 7,845,589 | |
Diversified Consumer Services - 0.5% | |||
Laureate Education, Inc. Class A (a) | 273,856 | 4,751,402 | |
Hotels, Restaurants & Leisure - 0.3% | |||
Chipotle Mexican Grill, Inc. (a) | 3,311 | 2,694,889 | |
Household Durables - 0.9% | |||
D.R. Horton, Inc. | 74,903 | 4,145,881 | |
NVR, Inc. (a) | 1,199 | 4,546,476 | |
8,692,357 | |||
Internet & Direct Marketing Retail - 7.0% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 41,034 | 8,206,800 | |
Amazon.com, Inc. (a) | 20,207 | 36,388,766 | |
Fiverr International Ltd. (b) | 7,218 | 166,086 | |
Pinduoduo, Inc. ADR (a) | 94,244 | 3,388,072 | |
The Booking Holdings, Inc. (a) | 10,549 | 20,085,612 | |
68,235,336 | |||
Specialty Retail - 2.2% | |||
Five Below, Inc. (a) | 14,492 | 1,792,805 | |
National Vision Holdings, Inc. (a) | 84,447 | 2,550,299 | |
Ross Stores, Inc. | 76,981 | 8,941,343 | |
Ulta Beauty, Inc. (a) | 36,208 | 8,467,603 | |
21,752,050 | |||
Textiles, Apparel & Luxury Goods - 1.4% | |||
Anta Sports Products Ltd. | 192,000 | 1,805,166 | |
Canada Goose Holdings, Inc. (a)(b) | 47,948 | 1,829,770 | |
LVMH Moet Hennessy Louis Vuitton SE | 23,987 | 10,739,022 | |
14,373,958 | |||
TOTAL CONSUMER DISCRETIONARY | 128,345,581 | ||
CONSUMER STAPLES - 3.8% | |||
Beverages - 1.0% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 11 | 2,047 | |
Fever-Tree Drinks PLC | 186 | 5,263 | |
Kweichow Moutai Co. Ltd. (A Shares) | 25,880 | 4,154,814 | |
Pernod Ricard SA | 16,701 | 3,067,474 | |
Pernod Ricard SA ADR | 72,276 | 2,658,311 | |
9,887,909 | |||
Food Products - 0.2% | |||
The Simply Good Foods Co. (a) | 74,992 | 2,072,029 | |
Household Products - 1.8% | |||
Energizer Holdings, Inc. (b) | 158,286 | 7,896,889 | |
Procter & Gamble Co. | 73,662 | 8,991,184 | |
16,888,073 | |||
Personal Products - 0.8% | |||
Estee Lauder Companies, Inc. Class A | 39,156 | 7,653,823 | |
TOTAL CONSUMER STAPLES | 36,501,834 | ||
ENERGY - 1.6% | |||
Oil, Gas & Consumable Fuels - 1.6% | |||
Cheniere Energy, Inc. (a) | 141,075 | 8,540,681 | |
Reliance Industries Ltd. | 335,116 | 7,244,912 | |
15,785,593 | |||
FINANCIALS - 2.1% | |||
Banks - 0.4% | |||
HDFC Bank Ltd. | 41,208 | 730,334 | |
HDFC Bank Ltd. sponsored ADR | 45,819 | 2,829,323 | |
Metro Bank PLC (a)(b) | 18,320 | 44,306 | |
3,603,963 | |||
Capital Markets - 1.7% | |||
CME Group, Inc. | 64,743 | 13,125,348 | |
JMP Group, Inc. | 54,284 | 175,880 | |
MSCI, Inc. | 2,389 | 619,205 | |
The Blackstone Group LP | 53,308 | 2,890,360 | |
Tradeweb Markets, Inc. Class A | 4,807 | 215,017 | |
17,025,810 | |||
TOTAL FINANCIALS | 20,629,773 | ||
HEALTH CARE - 13.6% | |||
Biotechnology - 4.0% | |||
AbbVie, Inc. | 183,042 | 16,058,275 | |
Affimed NV (a) | 114,523 | 295,469 | |
Aimmune Therapeutics, Inc. (a)(b) | 61,382 | 1,713,785 | |
BioNTech AG | 69,642 | 1,377,658 | |
BioNTech SE ADR (a)(b) | 24,205 | 532,026 | |
Calyxt, Inc. (a) | 8,265 | 30,415 | |
Cytokinetics, Inc. (a) | 100,137 | 968,325 | |
Gamida Cell Ltd. (a)(b) | 194,432 | 995,492 | |
Insmed, Inc. (a) | 237,206 | 5,467,598 | |
Neurocrine Biosciences, Inc. (a) | 17,500 | 2,040,675 | |
Rubius Therapeutics, Inc. (a) | 10,687 | 82,290 | |
Vertex Pharmaceuticals, Inc. (a) | 42,772 | 9,484,691 | |
39,046,699 | |||
Health Care Equipment & Supplies - 4.7% | |||
Boston Scientific Corp. (a) | 300,286 | 12,987,370 | |
Danaher Corp. | 56,517 | 8,250,352 | |
Haemonetics Corp. (a) | 25,093 | 3,026,216 | |
Intuitive Surgical, Inc. (a) | 25,109 | 14,887,126 | |
Penumbra, Inc. (a) | 11,814 | 2,090,133 | |
ResMed, Inc. | 27,763 | 4,153,345 | |
45,394,542 | |||
Health Care Providers & Services - 0.8% | |||
Guardant Health, Inc. (a) | 6,985 | 542,525 | |
HealthEquity, Inc. (a) | 38,596 | 2,427,302 | |
UnitedHealth Group, Inc. | 17,808 | 4,983,925 | |
7,953,752 | |||
Health Care Technology - 0.4% | |||
Veeva Systems, Inc. Class A (a) | 28,097 | 4,191,510 | |
Life Sciences Tools & Services - 1.9% | |||
10X Genomics, Inc. (a) | 8,904 | 577,781 | |
Bio-Techne Corp. | 2,086 | 455,270 | |
Bruker Corp. | 96,863 | 4,958,417 | |
Codexis, Inc. (a) | 83,896 | 1,303,744 | |
Thermo Fisher Scientific, Inc. | 35,634 | 11,187,294 | |
18,482,506 | |||
Pharmaceuticals - 1.8% | |||
AstraZeneca PLC sponsored ADR | 268,870 | 13,034,818 | |
Perrigo Co. PLC | 96,053 | 4,920,795 | |
17,955,613 | |||
TOTAL HEALTH CARE | 133,024,622 | ||
INDUSTRIALS - 7.1% | |||
Aerospace & Defense - 0.5% | |||
TransDigm Group, Inc. | 9,295 | 5,271,195 | |
Commercial Services & Supplies - 0.6% | |||
Copart, Inc. (a) | 62,813 | 5,590,357 | |
Edenred SA | 2,000 | 99,272 | |
5,689,629 | |||
Industrial Conglomerates - 0.5% | |||
Roper Technologies, Inc. | 14,043 | 5,060,676 | |
Machinery - 1.1% | |||
Gardner Denver Holdings, Inc. (a) | 309,128 | 10,470,165 | |
Professional Services - 2.3% | |||
Equifax, Inc. | 44,464 | 6,208,953 | |
IHS Markit Ltd. (a) | 88,152 | 6,404,243 | |
TransUnion Holding Co., Inc. | 113,519 | 9,797,825 | |
Upwork, Inc. (a) | 2,517 | 29,323 | |
22,440,344 | |||
Road & Rail - 2.1% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 89,648 | 3,316,080 | |
Lyft, Inc. | 53,800 | 2,635,124 | |
Uber Technologies, Inc. | 475,940 | 14,087,824 | |
20,039,028 | |||
TOTAL INDUSTRIALS | 68,971,037 | ||
INFORMATION TECHNOLOGY - 40.4% | |||
Communications Equipment - 0.1% | |||
ViaSat, Inc. (a) | 12,658 | 930,363 | |
Electronic Equipment & Components - 0.4% | |||
Zebra Technologies Corp. Class A (a) | 14,982 | 3,759,583 | |
IT Services - 9.1% | |||
Black Knight, Inc. (a) | 156,505 | 9,861,380 | |
Fiserv, Inc. (a) | 89,034 | 10,349,312 | |
MasterCard, Inc. Class A | 30,973 | 9,051,240 | |
MongoDB, Inc. Class A (a) | 4,100 | 609,670 | |
Okta, Inc. (a) | 16,811 | 2,181,732 | |
Shopify, Inc. Class A (a) | 25,722 | 8,672,243 | |
Square, Inc. (a) | 76,100 | 5,260,032 | |
VeriSign, Inc. (a) | 1,995 | 380,526 | |
Verra Mobility Corp. (a) | 195,178 | 2,921,815 | |
Visa, Inc. Class A | 213,243 | 39,345,466 | |
88,633,416 | |||
Semiconductors & Semiconductor Equipment - 8.1% | |||
ASML Holding NV | 31,633 | 8,560,522 | |
Cree, Inc. (a) | 6,627 | 292,980 | |
Marvell Technology Group Ltd. | 71,114 | 1,875,276 | |
Micron Technology, Inc. (a) | 107,800 | 5,121,578 | |
NVIDIA Corp. | 99,701 | 21,609,195 | |
NXP Semiconductors NV | 115,464 | 13,345,329 | |
Qualcomm, Inc. | 302,940 | 25,310,637 | |
Semtech Corp. (a) | 65,888 | 3,192,932 | |
79,308,449 | |||
Software - 17.3% | |||
Adobe, Inc. (a) | 118,404 | 36,649,590 | |
Autodesk, Inc. (a) | 30,965 | 5,601,569 | |
Cloudflare, Inc. (a) | 5,646 | 109,984 | |
Datadog, Inc. Class A (a)(b) | 2,423 | 98,786 | |
Elastic NV (a) | 988 | 78,457 | |
Intuit, Inc. | 38,825 | 10,051,404 | |
Manhattan Associates, Inc. (a) | 41,650 | 3,478,192 | |
Microsoft Corp. | 592,168 | 89,642,390 | |
Salesforce.com, Inc. (a) | 116,902 | 19,042,167 | |
SolarWinds, Inc. (a)(b) | 249,735 | 4,829,875 | |
169,582,414 | |||
Technology Hardware, Storage & Peripherals - 5.4% | |||
Apple, Inc. | 197,800 | 52,862,050 | |
TOTAL INFORMATION TECHNOLOGY | 395,076,275 | ||
MATERIALS - 0.7% | |||
Chemicals - 0.7% | |||
Sherwin-Williams Co. | 12,169 | 7,096,109 | |
REAL ESTATE - 3.4% | |||
Equity Real Estate Investment Trusts (REITs) - 3.4% | |||
American Tower Corp. | 110,161 | 23,577,759 | |
Crown Castle International Corp. | 72,110 | 9,638,223 | |
33,215,982 | |||
TOTAL COMMON STOCKS | |||
(Cost $634,382,307) | 976,573,000 | ||
Preferred Stocks - 0.2% | |||
Convertible Preferred Stocks - 0.0% | |||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Nuvation Bio, Inc. Series A (c)(d)(e) | 287,000 | 221,386 | |
INFORMATION TECHNOLOGY - 0.0% | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(d)(e) | 38,419 | 37,074 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 258,460 | ||
Nonconvertible Preferred Stocks - 0.2% | |||
FINANCIALS - 0.2% | |||
Banks - 0.2% | |||
Itau Unibanco Holding SA sponsored ADR | 222,208 | 1,808,773 | |
TOTAL PREFERRED STOCKS | |||
(Cost $2,283,554) | 2,067,233 | ||
Money Market Funds - 3.9% | |||
Fidelity Cash Central Fund 1.61% (f) | 27,405,123 | 27,410,604 | |
Fidelity Securities Lending Cash Central Fund 1.61% (f)(g) | 11,250,959 | 11,252,084 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $38,662,688) | 38,662,688 | ||
TOTAL INVESTMENT IN SECURITIES - 104.0% | |||
(Cost $675,328,549) | 1,017,302,921 | ||
NET OTHER ASSETS (LIABILITIES) - (4.0)% | (39,580,935) | ||
NET ASSETS - 100% | $977,721,986 |
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 purchased on a delayed delivery or when-issued basis.
(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 $258,460 or 0.0% 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 |
Nuvation Bio, Inc. Series A | 6/17/19 | $221,386 |
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 | $183,545 |
Fidelity Securities Lending Cash Central Fund | 129,926 |
Total | $313,471 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2019, 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 | $137,926,194 | $130,127,812 | $7,798,382 | $-- |
Consumer Discretionary | 128,345,581 | 117,606,559 | 10,739,022 | -- |
Consumer Staples | 36,501,834 | 36,501,834 | -- | -- |
Energy | 15,785,593 | 15,785,593 | -- | -- |
Financials | 22,438,546 | 21,708,212 | 730,334 | -- |
Health Care | 133,246,008 | 131,646,964 | 1,377,658 | 221,386 |
Industrials | 68,971,037 | 68,971,037 | -- | -- |
Information Technology | 395,113,349 | 395,076,275 | -- | 37,074 |
Materials | 7,096,109 | 7,096,109 | -- | -- |
Real Estate | 33,215,982 | 33,215,982 | -- | -- |
Money Market Funds | 38,662,688 | 38,662,688 | -- | -- |
Total Investments in Securities: | $1,017,302,921 | $996,399,065 | $20,645,396 | $258,460 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 87.3% |
Netherlands | 3.1% |
Cayman Islands | 2.1% |
France | 1.7% |
United Kingdom | 1.3% |
India | 1.1% |
Canada | 1.1% |
Others (Individually Less Than 1%) | 2.3% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2019 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $10,927,760) — See accompanying schedule: Unaffiliated issuers (cost $636,665,861) | $978,640,233 | |
Fidelity Central Funds (cost $38,662,688) | 38,662,688 | |
Total Investment in Securities (cost $675,328,549) | $1,017,302,921 | |
Receivable for investments sold | 1,255,205 | |
Receivable for fund shares sold | 63,546 | |
Dividends receivable | 651,155 | |
Distributions receivable from Fidelity Central Funds | 39,882 | |
Total assets | 1,019,312,709 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $2,399,291 | |
Delayed delivery | 110,693 | |
Payable for fund shares redeemed | 27,632,773 | |
Other payables and accrued expenses | 196,265 | |
Collateral on securities loaned | 11,251,701 | |
Total liabilities | 41,590,723 | |
Net Assets | $977,721,986 | |
Net Assets consist of: | ||
Paid in capital | $518,803,292 | |
Total accumulated earnings (loss) | 458,918,694 | |
Net Assets | $977,721,986 | |
Net Asset Value, offering price and redemption price per share ($977,721,986 ÷ 62,967,953 shares) | $15.53 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2019 | ||
Investment Income | ||
Dividends | $7,742,659 | |
Income from Fidelity Central Funds (including $129,926 from security lending) | 313,471 | |
Total income | 8,056,130 | |
Expenses | ||
Custodian fees and expenses | $43,564 | |
Independent trustees' fees and expenses | 5,445 | |
Interest | 9,471 | |
Commitment fees | 2,498 | |
Total expenses | 60,978 | |
Net investment income (loss) | 7,995,152 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 109,970,723 | |
Fidelity Central Funds | 353 | |
Foreign currency transactions | (8,195) | |
Total net realized gain (loss) | 109,962,881 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $185,948) | 58,280,442 | |
Assets and liabilities in foreign currencies | (310) | |
Total change in net unrealized appreciation (depreciation) | 58,280,132 | |
Net gain (loss) | 168,243,013 | |
Net increase (decrease) in net assets resulting from operations | $176,238,165 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2019 | Year ended November 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $7,995,152 | $8,981,964 |
Net realized gain (loss) | 109,962,881 | 65,231,272 |
Change in net unrealized appreciation (depreciation) | 58,280,132 | 11,418,110 |
Net increase (decrease) in net assets resulting from operations | 176,238,165 | 85,631,346 |
Distributions to shareholders | (73,966,903) | (143,605,042) |
Share transactions | ||
Proceeds from sales of shares | 174,241,041 | 87,625,024 |
Reinvestment of distributions | 73,966,903 | 143,605,042 |
Cost of shares redeemed | (320,110,139) | (159,465,335) |
Net increase (decrease) in net assets resulting from share transactions | (71,902,195) | 71,764,731 |
Total increase (decrease) in net assets | 30,369,067 | 13,791,035 |
Net Assets | ||
Beginning of period | 947,352,919 | 933,561,884 |
End of period | $977,721,986 | $947,352,919 |
Other Information | ||
Shares | ||
Sold | 12,200,603 | 6,182,178 |
Issued in reinvestment of distributions | 6,236,670 | 10,987,379 |
Redeemed | (22,161,899) | (11,049,440) |
Net increase (decrease) | (3,724,626) | 6,120,117 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Series Equity Growth Fund
Years ended November 30, | 2019 | 2018 | 2017 | 2016 | 2015 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $14.20 | $15.41 | $11.22 | $11.25 | $10.65 |
Income from Investment Operations | |||||
Net investment income (loss)A | .12 | .13 | .08 | .02 | .02 |
Net realized and unrealized gain (loss) | 2.33 | 1.05 | 4.12 | (.03) | .59 |
Total from investment operations | 2.45 | 1.18 | 4.20 | (.01) | .61 |
Distributions from net investment income | (.13) | (.09) | (.01) | (.02) | (.01) |
Distributions from net realized gain | (.99) | (2.30) | – | – | – |
Total distributions | (1.12) | (2.39) | (.01) | (.02) | (.01) |
Net asset value, end of period | $15.53 | $14.20 | $15.41 | $11.22 | $11.25 |
Total ReturnB | 19.73% | 8.96% | 37.51% | (.11)% | 5.70% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | .01% | .01% | .32% | .65% | .74% |
Expenses net of fee waivers, if any | .01% | .01% | .32% | .65% | .74% |
Expenses net of all reductions | .01% | - %E | .32% | .65% | .73% |
Net investment income (loss) | .84% | .92% | .57% | .15% | .19% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $977,722 | $947,353 | $933,562 | $901,989 | $964,918 |
Portfolio turnover rateF | 52%G | 38% | 48% | 60% | 65% |
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 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.
E Amount represents less than .005%.
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, 2019
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 are offered only to certain other Fidelity funds and Fidelity managed 529 plans. 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 ranged from less than .005% to .01%.
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. 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, 2019 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, 2019, 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), 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 | $350,304,041 |
Gross unrealized depreciation | (9,051,089) |
Net unrealized appreciation (depreciation) | $341,252,952 |
Tax Cost | $676,049,969 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $7,318,927 |
Undistributed long-term capital gain | $110,535,487 |
Net unrealized appreciation (depreciation) on securities and other investments | $341,251,430 |
The tax character of distributions paid was as follows:
November 30, 2019 | November 30, 2018 | |
Ordinary Income | $8,554,891 | $ 18,846,280 |
Long-term Capital Gains | 65,412,012 | 124,758,762 |
Total | $73,966,903 | $ 143,605,042 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $483,811,014 and $686,016,607, 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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Advisor Series Equity Growth Fund | $12,077 |
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 | $7,927,824 | 2.53% | $9,471 |
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.
Affiliated Exchanges In-Kind. During the period, the Fund received investments and cash valued at $87,353,775 in exchange for 6,011,960 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
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 $2,498 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 from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $10,668. 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 $5,205 from securities loaned to NFS, as affiliated borrower.
8. 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 and accounts managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Effective January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
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, 2019, the related statement of operations for the year ended November 30, 2019, the statement of changes in net assets for each of the two years in the period ended November 30, 2019, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2019 (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, 2019, 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, 2019 and the financial highlights for each of the five years in the period ended November 30, 2019 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, 2019 by correspondence with the custodian, issuers of privately offered securities 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, 2020
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 302 funds. Mr. Wiley oversees 199 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. 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 Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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 Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
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).
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 LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), 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 (2013-2019) 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).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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, 2019 to November 30, 2019).
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, 2019 | Ending Account Value November 30, 2019 | Expenses Paid During Period-B June 1, 2019 to November 30, 2019 | |
Actual | .01% | $1,000.00 | $1,136.90 | $.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 19, 2019, to shareholders of record at the opening of business on December 18, 2019, a distribution of $1.785 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, 2019, $110,543,996, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 77% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 92% of the dividend 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 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Advisor Series Equity Growth Fund
At its November 2019 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract and amended and restated sub-advisory agreements (together, the Amended and Restated Contracts) for the fund, effective January 1, 2020, for a one month period through January 31, 2020, in connection with an upcoming consolidation of certain of Fidelity's advisory businesses.The Board considered that, on or about January 1, 2020, each of FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and SelectCo, LLC (SelectCo) will merge with and into Fidelity Management & Research Company (FMR) and that, after the merger, FMR will redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that the Amended and Restated Contracts would be updated to reflect the renamed adviser, Fidelity Management & Research Company LLC and its new form of organization and domicile. The Board also noted that the Amended and Restated Contracts will not change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.The Board concluded that the fund's Amended and Restated Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved through January 31, 2020.In connection with its consideration of future renewals of the fund's Amended and Restated 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; 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 Amended and Restated Contracts should be approved.AXM1-ANN-0120
1.9860268.105
Item 2.
Code of Ethics
As of the end of the period, November 30, 2019, 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, 2019 FeesA
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Advisor Equity Growth Fund | $49,000 | $100 | $6,300 | $1,200 |
Fidelity Advisor Equity Income Fund | $46,000 | $100 | $7,200 | $1,200 |
Fidelity Advisor Equity Value Fund | $44,000 | $100 | $6,600 | $1,100 |
Fidelity Advisor Growth & Income Fund | $45,000 | $100 | $5,500 | $1,100 |
Fidelity Advisor Growth Opportunities Fund | $53,000 | $100 | $6,200 | $1,300 |
Fidelity Advisor Large Cap Fund | $46,000 | $100 | $5,200 | $1,100 |
Fidelity Advisor Series Growth Opportunities Fund | $50,000 | $100 | $6,300 | $1,200 |
Fidelity Advisor Stock Selector Mid Cap Fund | $45,000 | $100 | $5,300 | $1,100 |
Fidelity Advisor Value Strategies Fund | $45,000 | $100 | $7,300 | $1,200 |
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 |
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, 2019 FeesA
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Advisor Dividend Growth Fund | $52,000 | $4,100 | $4,400 | $1,800 |
Fidelity Advisor Series Equity Growth Fund | $31,000 | $2,500 | $2,900 | $1,100 |
Fidelity Advisor Series Small Cap Fund | $41,000 | $3,300 | $3,500 | $1,500 |
Fidelity Advisor Small Cap Fund | $43,000 | $3,500 | $3,500 | $1,500 |
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 |
AAmounts may reflect rounding.
The following table(s) present(s) fees billed by Deloitte Entities and PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Fund(s) 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 Fund(s) (“Fund Service Providers”):
Services Billed by Deloitte Entities
November 30, 2019A | November 30, 2018A | |
Audit-Related Fees | $290,000 | $5,000 |
Tax Fees | $5,000 | $5,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
Services Billed by PwC
November 30, 2019A | November 30, 2018A | |
Audit-Related Fees | $7,890,000 | $7,745,000 |
Tax Fees | $10,000 | $20,000 |
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 Deloitte Entities and PwC for services rendered to the Fund(s), 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 Fund(s) are as follows:
Billed By | November 30, 2019A | November 30, 2018A |
Deloitte Entities | $640,000 | $550,000 |
PwC | $12,575,000 | $10,975,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities and PwC to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities and PwC in its(their) audit of the Fund(s), taking into account representations from Deloitte Entities and PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund(s) and its(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(s) 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 Fund’s(s’) last two fiscal years relating to services provided to (i) the Fund(s) or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Fund(s).
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 trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust’s internal control over financial reporting.
Item 12.
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, 2020 |
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, 2020 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | January 24, 2020 |