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, MA 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: | October 31 |
Date of reporting period: | April 30, 2020 |
Item 1.
Reports to Stockholders
Fidelity Advisor® Floating Rate High Income Fund
Semi-Annual Report
April 30, 2020
Includes Fidelity and Fidelity Advisor share classes
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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 1-800-544-8544 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.
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Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Holdings as of April 30, 2020
(by issuer, excluding cash equivalents) | % of fund's net assets |
Bass Pro Shops LLC. | 3.0 |
Intelsat Jackson Holdings SA | 2.2 |
Asurion LLC | 2.2 |
Charter Communication Operating LLC | 1.5 |
TransDigm, Inc. | 1.4 |
10.3 |
Top Five Market Sectors as of April 30, 2020
% of fund's net assets | |
Technology | 14.2 |
Telecommunications | 8.9 |
Services | 6.7 |
Gaming | 6.4 |
Energy | 5.3 |
Quality Diversification (% of fund's net assets)
As of April 30, 2020 | ||
BBB | 5.3% | |
BB | 25.0% | |
B | 55.5% | |
CCC,CC,C | 5.9% | |
D | 0.9% | |
Not Rated | 1.9% | |
Equities | 0.6% | |
Short-Term Investments and Net Other Assets | 4.9% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of April 30, 2020* | ||
Bank Loan Obligations | 88.8% | |
Nonconvertible Bonds | 5.6% | |
Common Stocks | 0.6% | |
Preferred Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.9% |
* Foreign investments - 12.4%
Schedule of Investments April 30, 2020 (Unaudited)
Showing Percentage of Net Assets
Bank Loan Obligations - 88.8% | |||
Principal Amount (000s) | Value (000s) | ||
Aerospace - 1.7% | |||
AI Convoy Luxembourg SARL Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.6501% 1/20/27 (a)(b)(c) | $10,790 | $10,161 | |
Arconic Rolled Products Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.24% 3/25/27 (a)(b)(c) | 8,610 | 8,524 | |
Jazz Acquisition, Inc. 1LN, term loan 3 month U.S. LIBOR + 4.250% 4.65% 6/19/26 (a)(b)(c) | 5,224 | 3,897 | |
TransDigm, Inc.: | |||
Tranche E 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.6536% 5/30/25 (a)(b)(c) | 14,582 | 12,733 | |
Tranche F 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.6536% 12/9/25 (a)(b)(c) | 17,682 | 15,436 | |
Tranche G 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.6536% 8/22/24 (a)(b)(c) | 52,116 | 45,507 | |
WP CPP Holdings LLC: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.53% 4/30/25 (a)(b)(c) | 22,167 | 16,679 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.750% 9.53% 4/30/26 (a)(b)(c) | 5,665 | 3,696 | |
TOTAL AEROSPACE | 116,633 | ||
Air Transportation - 0.7% | |||
Delta Air Lines, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 4/27/23 (b)(c)(d) | 6,500 | 6,465 | |
Dynasty Acquisition Co., Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.9501% 4/8/26 (a)(b)(c) | 15,263 | 13,317 | |
Tranche B2 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.9501% 4/8/26 (a)(b)(c) | 8,206 | 7,160 | |
Kestrel Bidco, Inc. 1LN, term loan 3 month U.S. LIBOR + 2.750% 4% 12/11/26 (a)(b)(c) | 17,729 | 14,197 | |
Transplace Holding, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.822% 10/5/24 (a)(b)(c) | 9,513 | 7,801 | |
TOTAL AIR TRANSPORTATION | 48,940 | ||
Automotive & Auto Parts - 0.6% | |||
Hertz Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.5101% 6/30/23 (a)(b)(c) | 18,249 | 11,264 | |
IAA Spinco, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.6875% 6/29/26 (a)(b)(c) | 6,531 | 6,155 | |
North American Lifting Holdings, Inc.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.9501% 11/27/20 (a)(b)(c) | 15,945 | 7,972 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 9.000% 10.4501% 11/27/21 (a)(b)(c) | 24,195 | 3,629 | |
UOS LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 4.9683% 4/18/25 (a)(b)(c) | 12,745 | 12,044 | |
TOTAL AUTOMOTIVE & AUTO PARTS | 41,064 | ||
Banks & Thrifts - 0.8% | |||
Blackstone CQP Holdco LP Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.6158% 9/30/24 (a)(b)(c) | 29,378 | 26,905 | |
Citadel Securities LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.1536% 2/27/26 (a)(b)(c) | 20,671 | 19,741 | |
Deerfield Dakota Holding LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 3/5/27 (a)(b)(c) | 9,000 | 8,550 | |
Victory Capital Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.9365% 7/1/26 (a)(b)(c) | 4,033 | 3,832 | |
TOTAL BANKS & THRIFTS | 59,028 | ||
Broadcasting - 2.2% | |||
AppLovin Corp.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 8/15/25 (b)(c)(d) | 4,620 | 4,402 | |
Tranche B, term loan 3 month U.S. LIBOR + 3.500% 3.9036% 8/15/25 (a)(b)(c) | 20,134 | 19,115 | |
Diamond Sports Group LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.82% 8/24/26 (a)(b)(c) | 67,834 | 55,045 | |
Entercom Media Corp. Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.500% 2.9036% 11/17/24 (a)(b)(c) | 17,024 | 14,986 | |
ION Media Networks, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.8125% 12/18/24 (a)(b)(c) | 12,599 | 11,423 | |
Nexstar Broadcasting, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.7345% 9/19/26 (a)(b)(c) | 32,637 | 30,556 | |
Sinclair Television Group, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.32% 9/30/26 (a)(b)(c) | 5,396 | 4,991 | |
Springer Nature Deutschland Gm Tranche B16 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.5% 8/24/24 (a)(b)(c) | 20,212 | 10,499 | |
TOTAL BROADCASTING | 151,017 | ||
Building Materials - 1.3% | |||
ACProducts, Inc. 1LN, term loan 3 month U.S. LIBOR + 6.500% 8.1916% 8/13/25 (a)(b)(c) | 11,740 | 10,434 | |
APi Group DE, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 2.9036% 10/1/26 (a)(b)(c) | 22,943 | 22,073 | |
GYP Holdings III Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.1536% 6/1/25 (a)(b)(c) | 6,773 | 6,221 | |
Hamilton Holdco LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 3.46% 1/4/27 (a)(b)(c) | 18,176 | 17,358 | |
HD Supply, Inc. Tranche B 5LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 10/17/23 (a)(b)(c) | 949 | 911 | |
Ingersoll-Rand Services Co. Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 2/28/27 (a)(b)(c) | 18,195 | 17,231 | |
Traverse Midstream Partners Ll Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5% 9/27/24 (a)(b)(c) | 20,729 | 15,414 | |
TOTAL BUILDING MATERIALS | 89,642 | ||
Cable/Satellite TV - 4.2% | |||
Charter Communication Operating LLC Tranche B2 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.16% 2/1/27 (a)(b)(c) | 107,638 | 103,243 | |
Coral-U.S. Co.-Borrower LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 2.6536% 1/31/28 (a)(b)(c) | 37,275 | 34,495 | |
CSC Holdings LLC: | |||
Tranche B 5LN, term loan 3 month U.S. LIBOR + 2.500% 3.314% 4/15/27 (a)(b)(c) | 22,818 | 21,681 | |
Tranche B3 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.064% 1/15/26 (a)(b)(c) | 27,126 | 25,736 | |
LCPR Loan Financing LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.814% 10/22/26 (a)(b)(c) | 17,485 | 17,092 | |
Neptune Finco Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.064% 7/17/25 (a)(b)(c) | 23,423 | 22,248 | |
Virgin Media Bristol LLC Tranche N, term loan 3 month U.S. LIBOR + 2.500% 3.314% 1/31/28 (a)(b)(c) | 16,750 | 15,816 | |
WideOpenWest Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.25% 8/19/23 (a)(b)(c) | 51,719 | 47,888 | |
TOTAL CABLE/SATELLITE TV | 288,199 | ||
Capital Goods - 0.2% | |||
Altra Industrial Motion Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 2.4036% 10/1/25 (a)(b)(c) | 11,917 | 11,202 | |
CPM Holdings, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 8.250% 9.3418% 11/15/26 (a)(b)(c) | 3,655 | 2,997 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.84% 11/15/25 (a)(b)(c) | 4,011 | 3,174 | |
TOTAL CAPITAL GOODS | 17,373 | ||
Chemicals - 2.0% | |||
ASP Chromaflo Dutch I BV Tranche B-2 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.5% 11/18/23 (a)(b)(c) | 3,611 | 3,015 | |
ASP Chromaflo Intermediate Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.5% 11/18/23 (a)(b)(c) | 2,777 | 2,319 | |
Element Solutions, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 2.4036% 1/31/26 (a)(b)(c) | 11,776 | 11,217 | |
Hexion, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.94% 7/1/26 (a)(b)(c) | 7,250 | 6,892 | |
Messer Industries U.S.A., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.9501% 3/1/26 (a)(b)(c) | 18,890 | 17,816 | |
Oxea Corp. Tranche B2, term loan 3 month U.S. LIBOR + 3.500% 4.5% 10/11/24 (a)(b)(c) | 24,354 | 21,736 | |
SCIH Salt Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 3/3/27 (a)(b)(c) | 10,500 | 9,905 | |
Starfruit U.S. Holdco LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.8635% 10/1/25 (a)(b)(c) | 53,235 | 48,178 | |
The Chemours Co. LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.16% 4/3/25 (a)(b)(c) | 17,432 | 15,867 | |
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. term loan 3 month U.S. LIBOR + 2.000% 2.4036% 9/6/24 (a)(b)(c) | 2,493 | 2,349 | |
TOTAL CHEMICALS | 139,294 | ||
Consumer Products - 1.5% | |||
BCPE Empire Holdings, Inc.: | |||
1LN, term loan 3 month U.S. LIBOR + 4.000% 4.4036% 6/11/26 (a)(b)(c) | 8,313 | 7,537 | |
Tranche DD 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.3212% 6/11/26 (a)(b)(c)(e) | 1,642 | 1,489 | |
Owens & Minor Distribution, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.4845% 4/30/25 (a)(b)(c) | 23,642 | 19,036 | |
Rodan & Fields LLC Tranche B, term loan 3 month U.S. LIBOR + 4.000% 4.7978% 6/15/25 (a)(b)(c) | 9,329 | 4,455 | |
Terrier Media Buyer, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.7001% 12/12/26 (a)(b)(c) | 50,374 | 46,722 | |
Weight Watchers International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 5.5% 11/29/24 (a)(b)(c) | 22,816 | 22,103 | |
TOTAL CONSUMER PRODUCTS | 101,342 | ||
Containers - 1.7% | |||
Berry Global, Inc.: | |||
1LN, term loan 3 month U.S. LIBOR + 2.000% 2.8289% 10/1/22 (a)(b)(c) | 9,900 | 9,632 | |
Tranche X 1LN, term loan 3 month U.S. LIBOR + 2.000% 2.8289% 1/19/24 (a)(b)(c) | 9,694 | 9,367 | |
Tranche Y 1LN, term loan 3 month U.S. LIBOR + 2.000% 2.8289% 7/1/26 (a)(b)(c) | 27,338 | 26,037 | |
BWAY Holding Co. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5614% 4/3/24 (a)(b)(c) | 5,031 | 4,305 | |
Canister International Group, Inc. 1LN, term loan 3 month U.S. LIBOR + 4.750% 5.1536% 12/21/26 (a)(b)(c) | 6,000 | 5,760 | |
Charter Nex U.S., Inc.: | |||
1LN, term loan 3 month U.S. LIBOR + 3.500% 3.9036% 5/16/24 (a)(b)(c) | 3,065 | 2,927 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4% 5/16/24 (a)(b)(c) | 5,159 | 4,869 | |
Consolidated Container Co. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.75% 5/22/24 (a)(b)(c) | 13,259 | 12,625 | |
Pregis TopCo Corp. 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.4036% 7/31/26 (a)(b)(c) | 9,975 | 8,932 | |
Reynolds Consumer Products LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 1/30/27 (a)(b)(c) | 21,715 | 20,890 | |
Reynolds Group Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.1536% 2/5/23 (a)(b)(c) | 13,266 | 12,622 | |
TOTAL CONTAINERS | 117,966 | ||
Diversified Financial Services - 4.0% | |||
AlixPartners LLP Tranche B, term loan 3 month U.S. LIBOR + 2.500% 2.9036% 4/4/24 (a)(b)(c) | 12,569 | 12,080 | |
Alpine Finance Merger Sub LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4% 7/12/24 (a)(b)(c) | 448 | 419 | |
AssuredPartners, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 3.9036% 2/13/27 (a)(b)(c) | 15,659 | 14,595 | |
Avolon TLB Borrower 1 (U.S.) LLC: | |||
Tranche B3 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.5% 1/15/25 (a)(b)(c) | 9,740 | 9,142 | |
Tranche B4 1LN, term loan 3 month U.S. LIBOR + 1.500% 2.25% 2/12/27 (a)(b)(c) | 6,375 | 5,894 | |
BCP Renaissance Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.9501% 10/31/24 (a)(b)(c) | 26,056 | 19,933 | |
Delos Finance SARL Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3.2001% 10/6/23 (a)(b)(c) | 20,817 | 19,661 | |
Finco I LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 2.4036% 12/27/22 (a)(b)(c) | 2,750 | 2,635 | |
Fly Funding II SARL Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 3.48% 8/9/25 (a)(b)(c) | 32,524 | 28,987 | |
HarbourVest Partners LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.064% 3/1/25 (a)(b)(c) | 17,394 | 16,525 | |
Kingpin Intermediate Holdings LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.5% 7/3/24 (a)(b)(c) | 2,006 | 1,404 | |
NAB Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.4501% 6/30/24 (a)(b)(c) | 2,403 | 2,142 | |
National Financial Partners Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.6536% 2/3/27 (a)(b)(c) | 8,000 | 7,120 | |
Recess Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.2001% 9/29/24 (a)(b)(c) | 5,602 | 4,444 | |
RPI 2019 Intermediate Finance Trust: | |||
Tranche A 1LN, term loan 3 month U.S. LIBOR + 1.500% 1.9036% 2/11/25 (a)(b)(c)(f) | 27,156 | 24,441 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 2/11/27 (a)(b)(c) | 42,864 | 41,542 | |
RPI Intermediate Finance Trust Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 2/11/27 (a)(b)(c) | 42,566 | 41,302 | |
TransUnion LLC Tranche B5 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 11/16/26 (a)(b)(c) | 29,613 | 28,322 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 280,588 | ||
Energy - 4.2% | |||
Apro LLC Tranche B, term loan: | |||
3 month U.S. LIBOR + 4.000% 4% 11/14/26 (a)(b)(c)(e) | 1,556 | 1,474 | |
3 month U.S. LIBOR + 4.000% 5% 11/14/26 (a)(b)(c) | 5,431 | 5,146 | |
BCP Raptor II LLC Tranche B, term loan 3 month U.S. LIBOR + 4.750% 5.1536% 11/3/25 (a)(b)(c) | 29,775 | 13,883 | |
BCP Raptor LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.25% 6/24/24 (a)(b)(c) | 43,727 | 20,333 | |
Brazos Delaware II LLC Tranche B, term loan 3 month U.S. LIBOR + 4.000% 4.6246% 5/21/25 (a)(b)(c) | 14,177 | 7,180 | |
BW Gas & Convenience Holdings LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 6.250% 6.88% 11/18/24 (a)(b)(c) | 11,356 | 10,164 | |
California Resources Corp.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 10.375% 11.9883% 12/31/21 (a)(b)(c) | 83,115 | 2,961 | |
Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.3633% 12/31/22 (a)(b)(c) | 43,900 | 9,633 | |
Chesapeake Energy Corp. term loan 3 month U.S. LIBOR + 8.000% 9% 6/9/24 (a)(b)(c) | 14,725 | 5,203 | |
Citgo Holding, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 7.000% 8% 8/1/23 (a)(b)(c) | 12,209 | 10,072 | |
Citgo Petroleum Corp.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6% 3/28/24 (a)(b)(c) | 37,558 | 33,051 | |
Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.5% 7/29/21 (a)(b)(c) | 24,798 | 23,558 | |
Consolidated Energy Finance SA Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.2941% 5/7/25 (a)(b)(c) | 44,473 | 36,468 | |
Delek U.S. Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.6536% 3/31/25 (a)(b)(c) | 5,688 | 5,062 | |
EG America LLC: | |||
2LN, term loan 3 month U.S. LIBOR + 8.000% 9.072% 3/23/26 (a)(b)(c) | 3,848 | 2,867 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.072% 2/6/25 (a)(b)(c) | 9,014 | 7,684 | |
Epic Crude Services LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6.62% 3/1/26 (a)(b)(c) | 28,250 | 16,865 | |
Gavilan Resources LLC Tranche 2LN, term loan 3 month U.S. LIBOR + 6.000% 6.9894% 3/1/24 (a)(b)(c) | 44,275 | 3,763 | |
GIP III Stetson I LP Tranche B, term loan 3 month U.S. LIBOR + 4.250% 4.8746% 7/18/25 (a)(b)(c) | 52,971 | 22,226 | |
Gulf Finance LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.250% 6.4228% 8/25/23 (a)(b)(c) | 28,650 | 14,919 | |
Lower Cadence Holdings LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.4036% 5/22/26 (a)(b)(c) | 19,511 | 13,439 | |
Matador Bidco SARL Tranche B 1LN, term loan: | |||
3 month U.S. LIBOR + 4.750% 10/15/26 (b)(c)(d) | 1,250 | 1,150 | |
3 month U.S. LIBOR + 4.750% 5.1536% 10/15/26 (a)(b)(c) | 3,500 | 3,220 | |
Medallion Midland Acquisition Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.25% 10/30/24 (a)(b)(c) | 4,587 | 3,165 | |
Natgasoline LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.3125% 11/14/25 (a)(b)(c) | 21,736 | 19,562 | |
TOTAL ENERGY | 293,048 | ||
Entertainment/Film - 0.7% | |||
Allen Media LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.500% 7.2309% 2/10/27 (a)(b)(c) | 37,375 | 33,638 | |
AMC Entertainment Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.08% 4/22/26 (a)(b)(c) | 4,848 | 3,532 | |
CDS U.S. Intermediate Holdings, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.2001% 7/8/22 (a)(b)(c) | 19,018 | 8,526 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.7001% 7/8/23 (a)(b)(c) | 5,305 | 928 | |
SMG U.S. Midco 2, Inc. 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.4% 1/23/25 (a)(b)(c) | 3,040 | 2,128 | |
TOTAL ENTERTAINMENT/FILM | 48,752 | ||
Environmental - 0.2% | |||
Environmental Resources Management I Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.2001% 7/10/26 (a)(b)(c) | 6,196 | 5,421 | |
The Brickman Group, Ltd. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.1093% 8/15/25 (a)(b)(c) | 4,265 | 4,023 | |
Tunnel Hill Partners LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 3.9036% 2/8/26 (a)(b)(c) | 4,203 | 3,646 | |
WTG Holdings III Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.4525% 12/20/24 (a)(b)(c) | 2,872 | 2,779 | |
TOTAL ENVIRONMENTAL | 15,869 | ||
Food & Drug Retail - 2.6% | |||
Agro Merchants Intermediate Holdings LP Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.2001% 12/6/24 (a)(b)(c) | 4,891 | 4,402 | |
BellRing Brands, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6% 10/10/24 (a)(b)(c) | 7,900 | 7,791 | |
BI-LO LLC Tranche B, term loan 3 month U.S. LIBOR + 8.000% 9.377% 5/31/24 (a)(b)(c) | 61,161 | 57,644 | |
Froneri U.S., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.2394% 1/30/27 (a)(b)(c) | 18,420 | 17,000 | |
GOBP Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.7443% 10/22/25 (a)(b)(c) | 3,070 | 2,964 | |
JBS U.S.A. Lux SA Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 3.072% 5/1/26 (a)(b)(c) | 40,283 | 38,747 | |
JP Intermediate B LLC Tranche B, term loan 3 month U.S. LIBOR + 5.500% 6.5% 11/20/25 (a)(b)(c) | 9,545 | 4,734 | |
Lannett Co., Inc.: | |||
Tranche B, term loan 3 month U.S. LIBOR + 5.000% 6% 11/25/20 (a)(b)(c) | 560 | 516 | |
Tranche B, term loan 3 month U.S. LIBOR + 5.370% 6.375% 11/25/22 (a)(b)(c) | 50,601 | 46,350 | |
TOTAL FOOD & DRUG RETAIL | 180,148 | ||
Food/Beverage/Tobacco - 1.3% | |||
8th Avenue Food & Provisions, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 7.750% 8.5789% 10/1/26 (a)(b)(c) | 2,240 | 2,042 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.3289% 10/1/25 (a)(b)(c) | 3,471 | 3,313 | |
Atkins Nutritional Holdings II, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 7/7/24 (a)(b)(c) | 4,847 | 4,690 | |
Chobani LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.5% 10/7/23 (a)(b)(c) | 40,184 | 38,130 | |
EG Finco Ltd. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.072% 2/6/25 (a)(b)(c) | 4,899 | 4,176 | |
Saffron Borrowco LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 6.750% 7.1536% 6/20/25 (a)(b)(c) | 6,948 | 6,565 | |
Shearer's Foods, Inc. Tranche 2LN, term loan 3 month U.S. LIBOR + 6.750% 7.75% 6/30/22 (a)(b)(c) | 1,964 | 1,853 | |
U.S. Foods, Inc.: | |||
1LN, term loan 3 month U.S. LIBOR + 2.000% 3.072% 9/13/26 (a)(b)(c) | 5,837 | 5,176 | |
Tranche B, term loan 3 month U.S. LIBOR + 1.750% 2.7394% 6/27/23 (a)(b)(c) | 25,254 | 23,214 | |
TOTAL FOOD/BEVERAGE/TOBACCO | 89,159 | ||
Gaming - 6.0% | |||
AP Gaming I LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.9501% 2/15/24 (a)(b)(c) | 5,484 | 4,316 | |
Aristocrat Technologies, Inc. Tranche B 3LN, term loan 3 month U.S. LIBOR + 1.750% 2.859% 10/19/24 (a)(b)(c) | 1,784 | 1,681 | |
Boyd Gaming Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.3865% 9/15/23 (a)(b)(c) | 11,674 | 10,806 | |
Caesars Resort Collection LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.1536% 12/22/24 (a)(b)(c) | 109,897 | 92,497 | |
CityCenter Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3% 4/18/24 (a)(b)(c) | 24,570 | 21,577 | |
Eldorado Resorts, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.25% 4/17/24 (a)(b)(c) | 12,512 | 11,800 | |
Gaming VC Holdings SA Tranche B3 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.3076% 3/16/24 (a)(b)(c) | 11,664 | 11,081 | |
Golden Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.75% 10/20/24 (a)(b)(c) | 45,355 | 36,964 | |
Golden Nugget, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.455% 10/4/23 (a)(b)(c) | 78,829 | 62,896 | |
Mohegan Tribal Gaming Authority Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.375% 10/14/23 (a)(b)(c) | 8,754 | 5,996 | |
PCI Gaming Authority 1LN, term loan 3 month U.S. LIBOR + 2.500% 2.9036% 5/29/26 (a)(b)(c) | 13,178 | 12,155 | |
Penn National Gaming, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3% 10/15/25 (a)(b)(c) | 22,479 | 19,444 | |
Playtika Holding Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 6.000% 7.072% 12/10/24 (a)(b)(c) | 37,525 | 37,056 | |
Scientific Games Corp. Tranche B 5LN, term loan 3 month U.S. LIBOR + 2.750% 4.1313% 8/14/24 (a)(b)(c) | 238 | 196 | |
Stars Group Holdings BV Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.9501% 7/10/25 (a)(b)(c) | 48,534 | 48,170 | |
Station Casinos LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.66% 2/7/27 (a)(b)(c) | 32,262 | 28,359 | |
Twin River Worldwide Holdings, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 8.000% 5/10/25 (b)(c)(d) | 11,875 | 11,638 | |
TOTAL GAMING | 416,632 | ||
Healthcare - 4.1% | |||
Aldevron LLC 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.7001% 10/11/26 (a)(b)(c) | 28,770 | 27,979 | |
American Renal Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.000% 5.4036% 6/22/24 (a)(b)(c) | 2,962 | 2,535 | |
Da Vinci Purchaser Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.2383% 12/13/26 (a)(b)(c) | 20,655 | 19,467 | |
Elanco Animal Health, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2/4/27 (b)(c)(d) | 54,375 | 52,404 | |
HCA Holdings, Inc.: | |||
Tranche B12 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 3/13/25 (a)(b)(c) | 21,509 | 20,981 | |
Tranche B13, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 3/18/26 (a)(b)(c) | 15,015 | 14,619 | |
MPH Acquisition Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.2001% 6/7/23 (a)(b)(c) | 9,993 | 9,174 | |
Ortho-Clinical Diagnostics, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.2663% 6/30/25 (a)(b)(c) | 411 | 364 | |
RegionalCare Hospital Partners Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.7394% 11/16/25 (a)(b)(c) | 15,473 | 14,265 | |
U.S. Anesthesia Partners, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4% 6/23/24 (a)(b)(c) | 16,377 | 13,885 | |
U.S. Renal Care, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.4375% 6/13/26 (a)(b)(c) | 37,592 | 35,443 | |
Upstream Newco, Inc. 1LN, term loan 3 month U.S. LIBOR + 4.500% 4.9036% 11/20/26 (a)(b)(c) | 4,125 | 3,424 | |
Valeant Pharmaceuticals International, Inc.: | |||
Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.750% 3.4683% 11/27/25 (a)(b)(c) | 25,669 | 24,594 | |
Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.7183% 6/1/25 (a)(b)(c) | 4,661 | 4,503 | |
VVC Holding Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.2841% 2/11/26 (a)(b)(c) | 34,042 | 31,319 | |
Wink Holdco, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.4501% 12/1/24 (a)(b)(c) | 8,269 | 7,665 | |
TOTAL HEALTHCARE | 282,621 | ||
Homebuilders/Real Estate - 1.2% | |||
DTZ U.S. Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.7394% 8/21/25 (a)(b)(c) | 28,048 | 25,786 | |
Landry's Finance Acquisition Co. Tranche B 1LN, term loan 3 month U.S. LIBOR + 12.000% 13% 10/4/23 (a)(b)(c) | 4,975 | 5,116 | |
Lightstone Holdco LLC: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 1/30/24 (a)(b)(c) | 16,448 | 12,922 | |
Tranche C 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 1/30/24 (a)(b)(c) | 928 | 729 | |
VICI Properties, LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.4174% 12/22/24 (a)(b)(c) | 42,218 | 39,063 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 83,616 | ||
Hotels - 1.9% | |||
Aimbridge Acquisition Co., Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.017% 2/1/26 (a)(b)(c) | 4,288�� | 3,477 | |
Four Seasons Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 2.4036% 11/30/23 (a)(b)(c) | 42,011 | 38,817 | |
Hilton Worldwide Finance LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.2373% 6/21/26 (a)(b)(c) | 21,745 | 20,586 | |
Marriott Ownership Resorts, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 8/31/25 (a)(b)(c) | 26,430 | 23,688 | |
Travelport Finance Luxembourg SARL: | |||
1LN, term loan 3 month U.S. LIBOR + 5.000% 6.072% 5/29/26 (a)(b)(c) | 27,437 | 16,634 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 9.000% 10.072% 5/28/27 (a)(b)(c) | 11,500 | 3,393 | |
Wyndham Hotels & Resorts, Inc. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 5/30/25 (a)(b)(c) | 24,269 | 22,194 | |
TOTAL HOTELS | 128,789 | ||
Insurance - 4.8% | |||
Acrisure LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.2073% 1/30/27 (a)(b)(c) | 39,847 | 36,527 | |
Alliant Holdings Intermediate LLC: | |||
Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.9894% 5/10/25 (a)(b)(c) | 21,856 | 20,370 | |
Tranche B-2 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.9683% 5/9/25 (a)(b)(c) | 2,481 | 2,324 | |
AmeriLife Holdings LLC: | |||
1LN, term loan 1 month U.S. LIBOR + 4.000% 3/18/27 (b)(c)(e) | 625 | 562 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.9845% 3/18/27 (a)(b)(c) | 4,875 | 4,388 | |
AmWINS Group, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.75% 1/25/24 (a)(b)(c) | 23,379 | 22,543 | |
Asurion LLC: | |||
Tranche B 6LN, term loan 3 month U.S. LIBOR + 3.000% 3.4036% 11/3/23 (a)(b)(c) | 36,798 | 35,056 | |
Tranche B 7LN, term loan 3 month U.S. LIBOR + 3.000% 3.4036% 11/3/24 (a)(b)(c) | 18,838 | 17,927 | |
Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 4% 8/4/22 (a)(b)(c) | 32,327 | 31,067 | |
3 month U.S. LIBOR + 6.500% 6.9036% 8/4/25 (a)(b)(c) | 64,825 | 62,556 | |
HUB International Ltd. Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 4.5435% 4/25/25 (a)(b)(c) | 51,708 | 48,335 | |
3 month U.S. LIBOR + 4.000% 5.6918% 4/25/25 (a)(b)(c) | 14,588 | 13,950 | |
USI, Inc.: | |||
1LN, term loan 3 month U.S. LIBOR + 4.000% 4.4036% 12/2/26 (a)(b)(c) | 2,244 | 2,134 | |
Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.4036% 5/16/24 (a)(b)(c) | 34,622 | 32,530 | |
TOTAL INSURANCE | 330,269 | ||
Leisure - 2.4% | |||
Alterra Mountain Co. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.1536% 7/31/24 (a)(b)(c) | 15,374 | 14,164 | |
Crown Finance U.S., Inc. Tranche B 1LN, term loan: | |||
3 month U.S. LIBOR + 2.250% 3.322% 2/28/25 (a)(b)(c) | 44,518 | 27,898 | |
3 month U.S. LIBOR + 2.500% 3.572% 9/20/26 (a)(b)(c) | 1,493 | 914 | |
Delta 2 SARL Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.5% 2/1/24 (a)(b)(c) | 46,093 | 41,953 | |
Equinox Holdings, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 8.072% 9/8/24 (a)(b)(c) | 7,325 | 4,838 | |
Tranche B-1, term loan 3 month U.S. LIBOR + 3.000% 4.072% 3/8/24 (a)(b)(c) | 12,941 | 10,166 | |
LTF Merger Sub, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.3633% 6/10/22 (a)(b)(c) | 26,387 | 22,223 | |
Seminole Tribe of Florida Tranche B, term loan 3 month U.S. LIBOR + 1.750% 2.7394% 7/6/24 (a)(b)(c) | 19,283 | 18,120 | |
SP PF Buyer LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 4.9036% 12/21/25 (a)(b)(c) | 13,711 | 10,264 | |
United PF Holdings LLC: | |||
1LN, term loan: | |||
3 month U.S. LIBOR + 4.000% 12/30/26 (b)(c)(e) | 1,653 | 1,256 | |
3 month U.S. LIBOR + 4.000% 5.4501% 12/30/26 (a)(b)(c) | 13,347 | 10,144 | |
2LN, term loan 3 month U.S. LIBOR + 8.500% 9.9501% 12/30/27 (a)(b)(c)(f) | 3,500 | 2,275 | |
TOTAL LEISURE | 164,215 | ||
Metals/Mining - 0.2% | |||
Murray Energy Corp.: | |||
term loan 3 month U.S. LIBOR + 11.000% 13% 7/31/20 (a)(b)(c) | 23,059 | 14,988 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.250% 0% 10/17/22(b)(c)(g) | 68,170 | 511 | |
TOTAL METALS/MINING | 15,499 | ||
Paper - 0.8% | |||
Flex Acquisition Co., Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.4334% 12/29/23 (a)(b)(c) | 27,246 | 25,407 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.6834% 6/29/25 (a)(b)(c) | 32,078 | 29,865 | |
TOTAL PAPER | 55,272 | ||
Publishing/Printing - 0.6% | |||
Cengage Learning, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.25% 6/7/23 (a)(b)(c) | 30,121 | 22,892 | |
Harland Clarke Holdings Corp. Tranche B 7LN, term loan 3 month U.S. LIBOR + 4.750% 6.4631% 11/3/23 (a)(b)(c) | 21,524 | 13,632 | |
Learning Care Group (U.S.) No 2 Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.25% 3/13/25 (a)(b)(c) | 1,698 | 1,382 | |
Proquest LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 3.9036% 10/17/26 (a)(b)(c) | 2,095 | 1,981 | |
TOTAL PUBLISHING/PRINTING | 39,887 | ||
Railroad - 0.2% | |||
Genesee & Wyoming, Inc. 1LN, term loan 3 month U.S. LIBOR + 2.000% 3.4501% 12/30/26 (a)(b)(c) | 11,965 | 11,551 | |
Restaurants - 0.7% | |||
CEC Entertainment, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 6.500% 7.572% 8/30/26 (a)(b)(c) | 13,433 | 6,572 | |
KFC Holding Co. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 2.4683% 4/3/25 (a)(b)(c) | 14,159 | 13,474 | |
Red Lobster Hospitality LLC Tranche B, term loan 3 month U.S. LIBOR + 5.250% 6.25% 7/28/21 (a)(b)(c) | 15,331 | 10,904 | |
Whatabrands LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.7316% 8/3/26 (a)(b)(c) | 18,455 | 16,978 | |
TOTAL RESTAURANTS | 47,928 | ||
Services - 6.5% | |||
Airbnb, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 7.500% 4/17/25 (b)(c)(d) | 15,965 | 16,145 | |
Almonde, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.25% 6/13/25 (a)(b)(c) | 30,455 | 25,795 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.5% 6/13/24 (a)(b)(c) | 48,822 | 42,218 | |
Ancestry.com Operations, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 10/19/23 (a)(b)(c) | 16,451 | 14,971 | |
Aramark Services, Inc.: | |||
Tranche B-4 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 1/15/27 (a)(b)(c) | 5,000 | 4,675 | |
Tranche B2 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 3/28/24 (a)(b)(c) | 9,339 | 8,818 | |
Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.4549% 6/21/24 (a)(b)(c) | 20,295 | 17,105 | |
Cast & Crew Payroll LLC Tranche B 1LN, term loan: | |||
3 month U.S. LIBOR + 3.750% 4.16% 2/7/26 (a)(b)(c) | 15,568 | 13,120 | |
3 month U.S. LIBOR + 3.750% 4.16% 2/7/26 (a)(b)(c) | 4,070 | 3,430 | |
CoreCivic, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 12/18/24 (a)(b)(c) | 8,142 | 7,572 | |
Filtration Group Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.4036% 3/29/25 (a)(b)(c) | 9,286 | 8,806 | |
GEMS MENASA Cayman Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6.6133% 7/30/26 (a)(b)(c) | 12,828 | 12,123 | |
Ion Trading Finance Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.072% 11/21/24 (a)(b)(c) | 34,874 | 32,113 | |
KUEHG Corp.: | |||
Tranche B 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.7001% 8/22/25 (a)(b)(c) | 6,500 | 4,875 | |
Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.2001% 2/21/25 (a)(b)(c) | 34,111 | 27,403 | |
Lineage Logistics Holdings, LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4% 2/27/25 (a)(b)(c) | 82,689 | 79,712 | |
Maverick Purchaser Sub LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.4036% 1/23/27 (a)(b)(c) | 17,575 | 16,740 | |
Sabert Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 12/10/26 (a)(b)(c) | 15,960 | 15,082 | |
Sotheby's 1LN, term loan 3 month U.S. LIBOR + 5.500% 6.5% 1/3/27 (a)(b)(c) | 11,188 | 9,565 | |
Spin Holdco, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.25% 11/14/22 (a)(b)(c) | 41,445 | 37,881 | |
SuperMoose Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.2001% 8/29/25 (a)(b)(c) | 19,364 | 16,589 | |
The GEO Group, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 2.75% 3/23/24 (a)(b)(c) | 12,807 | 11,295 | |
WASH Multifamily Acquisition, Inc. Tranche B 1LN, term loan: | |||
3 month U.S. LIBOR + 3.250% 4.25% 5/14/22 (a)(b)(c) | 12,094 | 10,763 | |
3 month U.S. LIBOR + 3.250% 4.25% 5/14/22 (a)(b)(c) | 1,050 | 935 | |
WaterBridge Operating LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.750% 6.75% 6/21/26 (a)(b)(c) | 15,920 | 10,268 | |
TOTAL SERVICES | 447,999 | ||
Steel - 0.2% | |||
JMC Steel Group, Inc. 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.8198% 1/24/27 (a)(b)(c) | 13,125 | 12,398 | |
Super Retail - 4.8% | |||
Academy Ltd. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.0056% 7/2/22 (a)(b)(c) | 14,850 | 9,578 | |
Bass Pro Shops LLC. Tranche B, term loan 3 month U.S. LIBOR + 5.000% 6.072% 9/25/24 (a)(b)(c) | 250,823 | 210,673 | |
BJ's Wholesale Club, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.0789% 2/3/24 (a)(b)(c) | 26,702 | 25,867 | |
David's Bridal, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 8.000% 9.46% 1/18/24 (a)(b)(c)(f) | 495 | 495 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 6.000% 7.65% 6/30/23 (a)(b)(c)(f) | 358 | 358 | |
Harbor Freight Tools U.S.A., Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.25% 8/19/23 (a)(b)(c) | 17,371 | 16,397 | |
Party City Holdings, Inc. term loan 3 month U.S. LIBOR + 2.500% 4.0682% 8/19/22 (a)(b)(c) | 21,383 | 10,498 | |
PETCO Animal Supplies, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.25% 1/26/23 (a)(b)(c) | 23,837 | 15,509 | |
Red Ventures LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 2.9036% 11/8/24 (a)(b)(c) | 12,386 | 11,374 | |
Sports Authority, Inc. Tranche B, term loan 3 month U.S. LIBOR + 6.000% 0% 11/16/17 (b)(c)(f)(g) | 3,612 | 0 | |
Staples, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6.0163% 4/16/26 (a)(b)(c) | 19,468 | 15,444 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 4.500% 5.5163% 9/12/24 (a)(b)(c) | 4,963 | 4,003 | |
The Hillman Group, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.072% 5/31/25 (a)(b)(c) | 14,770 | 12,452 | |
TOTAL SUPER RETAIL | 332,648 | ||
Technology - 13.6% | |||
Anastasia Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.2001% 8/10/25 (a)(b)(c) | 30,510 | 11,751 | |
Boxer Parent Co., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 4.6536% 10/2/25 (a)(b)(c) | 41,751 | 35,906 | |
Brave Parent Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.4036% 4/19/25 (a)(b)(c) | 1,821 | 1,720 | |
Cabot Microelectronics Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 2.4375% 11/15/25 (a)(b)(c) | 9,430 | 9,100 | |
Camelot Finance SA Tranche B, term loan 3 month U.S. LIBOR + 3.250% 3.6536% 10/31/26 (a)(b)(c) | 11,975 | 11,436 | |
CCC Information Services, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.75% 4/27/24 (a)(b)(c) | 8,452 | 8,008 | |
Ceridian HCM Holding, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 2.6365% 4/30/25 (a)(b)(c) | 15,155 | 14,252 | |
CommScope, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.6536% 4/4/26 (a)(b)(c) | 8,727 | 8,185 | |
Cvent, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.1536% 11/29/24 (a)(b)(c) | 8,008 | 6,547 | |
DCert Buyer, Inc. 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.4036% 10/16/26 (a)(b)(c) | 28,500 | 26,742 | |
DG Investment Intermediate Holdings, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.75% 2/1/25 (a)(b)(c) | 15,027 | 13,022 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 6.750% 7.5% 2/1/26 (a)(b)(c) | 3,235 | 2,685 | |
Dynatrace LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.6536% 8/23/25 (a)(b)(c) | 6,388 | 6,133 | |
EIG Investors Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.3876% 2/9/23 (a)(b)(c) | 23,402 | 21,764 | |
Emerald TopCo, Inc. 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.2592% 7/22/26 (a)(b)(c) | 9,065 | 8,494 | |
Epicor Software Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 3.66% 6/1/22 (a)(b)(c) | 21,356 | 20,572 | |
EPV Merger Sub, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.2394% 3/8/26 (a)(b)(c) | 2,250 | 1,897 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.6536% 3/8/25 (a)(b)(c) | 17,373 | 15,983 | |
EXC Holdings III Corp. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.500% 4.9501% 12/2/24 (a)(b)(c) | 13,205 | 12,280 | |
3 month U.S. LIBOR + 7.500% 8.9365% 12/1/25 (a)(b)(c) | 2,000 | 1,643 | |
Fastball Merger Sub LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.572% 1/22/27 (a)(b)(c) | 2,245 | 1,932 | |
Financial & Risk U.S. Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 3.6536% 10/1/25 (a)(b)(c) | 46,955 | 45,884 | |
Go Daddy Operating Co. LLC Tranche B, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 2/15/24 (a)(b)(c) | 13,626 | 13,139 | |
Hyland Software, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 7.75% 7/7/25 (a)(b)(c) | 680 | 629 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4% 7/1/24 (a)(b)(c) | 13,426 | 12,830 | |
II-VI, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 3.9036% 9/24/26 (a)(b)(c) | 1,493 | 1,366 | |
Kronos, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 8.250% 10.0133% 11/1/24 (a)(b)(c) | 30,715 | 29,333 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.7633% 11/1/23 (a)(b)(c) | 19,936 | 19,226 | |
Landesk Group, Inc. term loan: | |||
3 month U.S. LIBOR + 4.250% 5.25% 1/20/24 (a)(b)(c) | 29,022 | 26,236 | |
3 month U.S. LIBOR + 9.000% 10% 1/20/25 (a)(b)(c) | 11,730 | 10,176 | |
MA FinanceCo. LLC: | |||
Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.250% 2.6536% 11/20/21 (a)(b)(c) | 2,138 | 2,025 | |
Tranche B 3LN, term loan: | |||
3 month U.S. LIBOR + 2.500% 2.9036% 6/21/24 (a)(b)(c) | 79,340 | 72,834 | |
3 month U.S. LIBOR + 2.500% 2.9036% 6/21/24 (a)(b)(c) | 11,431 | 10,494 | |
McAfee LLC Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.750% 4.1876% 9/29/24 (a)(b)(c) | 46,174 | 44,071 | |
3 month U.S. LIBOR + 8.500% 9.5% 9/29/25 (a)(b)(c) | 6,159 | 5,951 | |
MH Sub I LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.822% 9/15/24 (a)(b)(c) | 2,501 | 2,309 | |
NAVEX TopCo, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 7.000% 7.41% 9/4/26 (a)(b)(c) | 2,225 | 1,930 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.66% 9/4/25 (a)(b)(c) | 9,865 | 9,150 | |
ON Semiconductor Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 2.4036% 9/19/26 (a)(b)(c) | 990 | 953 | |
Open Text Corp. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 5/30/25 (a)(b)(c) | 976 | 942 | |
Project Alpha Intermediate Holding, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 6.13% 4/26/24 (a)(b)(c) | 2,342 | 2,225 | |
Project Boost Purchaser LLC 1LN, term loan 3 month U.S. LIBOR + 3.500% 3.9036% 5/30/26 (a)(b)(c) | 1,487 | 1,291 | |
Rackspace Hosting, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.7633% 11/3/23 (a)(b)(c) | 19,787 | 18,499 | |
Renaissance Holding Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.0101% 5/31/25 (a)(b)(c) | 8,222 | 7,408 | |
Severin Acquisition LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.7416% 8/1/25 (a)(b)(c) | 15,096 | 14,266 | |
Solera LLC Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.3633% 3/3/23 (a)(b)(c) | 10,468 | 9,904 | |
Sophia L.P. term loan 3 month U.S. LIBOR + 3.250% 4.7001% 9/30/22 (a)(b)(c) | 22,883 | 22,025 | |
SS&C Technologies, Inc.: | |||
Tranche B 3LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 4/16/25 (a)(b)(c) | 15,397 | 14,783 | |
Tranche B 4LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 4/16/25 (a)(b)(c) | 10,987 | 10,549 | |
Tranche B 5LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 4/16/25 (a)(b)(c) | 34,067 | 32,692 | |
Syniverse Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.000% 6.8725% 3/9/23 (a)(b)(c) | 19,898 | 13,636 | |
Tempo Acquisition LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.1536% 5/1/24 (a)(b)(c) | 24,073 | 22,554 | |
TTM Technologies, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.4845% 9/28/24 (a)(b)(c) | 26,699 | 26,098 | |
Uber Technologies, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.500% 3.9036% 7/13/23 (a)(b)(c) | 2,113 | 1,985 | |
3 month U.S. LIBOR + 4.000% 5% 4/4/25 (a)(b)(c) | 21,732 | 20,470 | |
Ultimate Software Group, Inc. 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.1536% 5/4/26 (a)(b)(c) | 28,255 | 26,901 | |
Veritas U.S., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.9501% 1/27/23 (a)(b)(c) | 12,898 | 11,189 | |
Verscend Holding Corp. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.4894% 8/27/25 (a)(b)(c) | 5,560 | 5,225 | |
Vertafore, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.6536% 7/2/25 (a)(b)(c) | 40,602 | 37,181 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.250% 7.6536% 7/2/26 (a)(b)(c) | 15,575 | 14,611 | |
VFH Parent LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.8635% 3/1/26 (a)(b)(c) | 29,280 | 28,284 | |
VM Consolidated, Inc. Tranche B L1N, term loan 3 month U.S. LIBOR + 3.250% 3.6536% 2/28/25 (a)(b)(c) | 8,955 | 8,060 | |
VS Buyer LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.8633% 2/19/27 (a)(b)(c) | 16,875 | 15,863 | |
Web.com Group, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 7.750% 8.9451% 10/11/26 (a)(b)(c) | 11,343 | 9,018 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.9451% 10/11/25 (a)(b)(c) | 10,282 | 9,142 | |
WEX, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 2.6536% 5/17/26 (a)(b)(c) | 7,923 | 7,432 | |
Zelis Payments Buyer, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.750% 5.1536% 9/30/26 (a)(b)(c) | 2,244 | 2,150 | |
TOTAL TECHNOLOGY | 942,971 | ||
Telecommunications - 8.1% | |||
Altice Financing SA Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 3.3746% 1/31/26 (a)(b)(c) | 25 | 23 | |
3 month U.S. LIBOR + 2.750% 3.564% 7/15/25 (a)(b)(c) | 15,581 | 14,340 | |
Connect Finco Sarl Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 12/11/26 (a)(b)(c) | 8,790 | 8,014 | |
Evo Payments International LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 3.69% 12/22/23 (a)(b)(c) | 7,645 | 7,056 | |
Frontier Communications Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.3495% 6/15/24 (a)(b)(c) | 64,290 | 62,338 | |
GTT Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.74% 5/31/25 (a)(b)(c) | 16,003 | 11,556 | |
Intelsat Jackson Holdings SA: | |||
Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.682% 11/27/23 (a)(b)(c) | 109,650 | 107,396 | |
Tranche B-4, term loan 3 month U.S. LIBOR + 4.500% 6.432% 1/2/24 (a)(b)(c) | 4,400 | 4,339 | |
Tranche B-5, term loan 6.625% 1/2/24 (c) | 26,120 | 25,956 | |
Iridium Satellite LLC 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 11/4/26 (a)(b)(c) | 8,395 | 8,280 | |
Level 3 Financing, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 3/1/27 (a)(b)(c) | 31,449 | 30,060 | |
Onvoy LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 2/10/24 (a)(b)(c) | 9,175 | 7,607 | |
Radiate Holdco LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.75% 2/1/24 (a)(b)(c) | 43,423 | 41,462 | |
SBA Senior Finance II, LLC Tranche B, term loan 3 month U.S. LIBOR + 1.750% 2.16% 4/11/25 (a)(b)(c) | 14,354 | 13,833 | |
Securus Technologies, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 4.500% 5.5% 11/1/24 (a)(b)(c) | 39,287 | 32,412 | |
3 month U.S. LIBOR + 8.250% 9.25% 11/1/25 (a)(b)(c) | 30,400 | 18,240 | |
SFR Group SA: | |||
Tranche B 11LN, term loan 3 month U.S. LIBOR + 2.750% 3.1536% 7/31/25 (a)(b)(c) | 37,646 | 34,305 | |
Tranche B 12LN, term loan 3 month U.S. LIBOR + 3.680% 4.5015% 1/31/26 (a)(b)(c) | 3,283 | 3,023 | |
Tranche B 13LN, term loan 3 month U.S. LIBOR + 4.000% 4.814% 8/14/26 (a)(b)(c) | 36,199 | 33,510 | |
T-Mobile U.S.A., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4/1/27 (b)(c)(d) | 45,395 | 45,095 | |
Windstream Services LLC 1LN, term loan 3 month U.S. LIBOR + 2.500% 2.91% 2/26/21 (a)(b)(c) | 3,250 | 3,177 | |
Zayo Group Holdings, Inc. 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.4036% 3/9/27 (a)(b)(c) | 54,920 | 51,472 | |
TOTAL TELECOMMUNICATIONS | 563,494 | ||
Transportation Ex Air/Rail - 0.0% | |||
IBC Capital Ltd. 2LN, term loan 3 month U.S. LIBOR + 7.000% 7.8894% 9/11/24 (a)(b)(c) | 3,000 | 2,340 | |
Utilities - 2.8% | |||
Brookfield WEC Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.9894% 8/1/25 (a)(b)(c) | 64,239 | 60,738 | |
Buckeye Partners LP 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.7663% 10/18/26 (a)(b)(c) | 6,235 | 5,826 | |
ExGen Renewables IV, LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.62% 11/28/24 (a)(b)(c) | 16,157 | 15,501 | |
Granite Generation LLC 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.8177% 11/1/26 (a)(b)(c) | 10,224 | 9,624 | |
Limetree Bay Terminals LLC term loan 3 month U.S. LIBOR + 4.000% 4.4036% 2/15/24 (a)(b)(c) | 17,821 | 14,346 | |
LMBE-MC HoldCo II LLC Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.46% 12/3/25 (a)(b)(c)(f) | 11,002 | 10,012 | |
Moxie Patriot LLC Tranche B, term loan 3 month U.S. LIBOR + 5.750% 7.2001% 12/19/20 (a)(b)(c) | 15,533 | 14,337 | |
Pike Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.25% 7/24/26 (a)(b)(c) | 11,238 | 10,781 | |
UGI Energy Services LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.1536% 8/13/26 (a)(b)(c) | 5,940 | 5,306 | |
Vertiv Group Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.9929% 3/2/27 (a)(b)(c) | 33,000 | 30,938 | |
Vistra Operations Co. LLC Tranche B 3LN, term loan 3 month U.S. LIBOR + 1.750% 2.6933% 12/31/25 (a)(b)(c) | 20,642 | 19,960 | |
TOTAL UTILITIES | 197,369 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $7,180,499) | 6,153,560 | ||
Nonconvertible Bonds - 5.6% | |||
Aerospace - 0.3% | |||
TransDigm, Inc.: | |||
6.25% 3/15/26 (h) | 22,000 | 21,533 | |
8% 12/15/25 (h) | 1,580 | 1,643 | |
TOTAL AEROSPACE | 23,176 | ||
Broadcasting - 0.1% | |||
iHeartCommunications, Inc.: | |||
6.375% 5/1/26 | 770 | 727 | |
8.375% 5/1/27 | 1,395 | 1,165 | |
Univision Communications, Inc. 9.5% 5/1/25 (h) | 4,730 | 4,783 | |
TOTAL BROADCASTING | 6,675 | ||
Cable/Satellite TV - 0.0% | |||
Virgin Media Finance PLC 4.875% 2/15/22 | 2,000 | 2,000 | |
Containers - 0.7% | |||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | |||
4.25% 9/15/22 (h) | 15,000 | 15,080 | |
6% 2/15/25 (h) | 10,000 | 10,009 | |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA 3 month U.S. LIBOR + 3.500% 4.7189% 7/15/21 (a)(b)(h) | 15,130 | 14,903 | |
Trivium Packaging Finance BV 5.5% 8/15/26 (h) | 5,835 | 5,981 | |
TOTAL CONTAINERS | 45,973 | ||
Diversified Financial Services - 0.1% | |||
Icahn Enterprises LP/Icahn Enterprises Finance Corp. 6.25% 2/1/22 | 5,200 | 5,252 | |
Energy - 0.8% | |||
Citgo Petroleum Corp. 6.25% 8/15/22 (h) | 10,000 | 9,575 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 4.4905% 6/15/22 (a)(b)(h) | 27,005 | 22,426 | |
6.875% 6/15/25 (h) | 5,500 | 4,235 | |
Denbury Resources, Inc.: | |||
7.75% 2/15/24 (h) | 9,050 | 1,629 | |
9% 5/15/21 (h) | 3,645 | 656 | |
9.25% 3/31/22(h) | 7,290 | 1,312 | |
EG Global Finance PLC 6.75% 2/7/25 (h) | 5,500 | 5,005 | |
EP Energy LLC/Everest Acquisition Finance, Inc. 7.75% 5/15/26 (g)(h) | 7,340 | 807 | |
Tervita Escrow Corp. 7.625% 12/1/21 (h) | 3,645 | 2,406 | |
Transocean Poseidon Ltd. 6.875% 2/1/27 (h) | 6,230 | 4,891 | |
TOTAL ENERGY | 52,942 | ||
Food & Drug Retail - 0.0% | |||
Albertsons Companies LLC/Safeway, Inc./New Albertson's, Inc./Albertson's LLC 3.5% 2/15/23 (h) | 1,120 | 1,098 | |
Performance Food Group, Inc. 6.875% 5/1/25 (h) | 315 | 321 | |
TOTAL FOOD & DRUG RETAIL | 1,419 | ||
Gaming - 0.4% | |||
Golden Entertainment, Inc. 7.625% 4/15/26 (h) | 5,940 | 4,485 | |
Scientific Games Corp. 5% 10/15/25 (h) | 5,000 | 4,367 | |
Stars Group Holdings BV 7% 7/15/26 (h) | 12,545 | 12,896 | |
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875% 5/15/25 (h) | 7,363 | 6,266 | |
TOTAL GAMING | 28,014 | ||
Healthcare - 0.8% | |||
Community Health Systems, Inc. 6.25% 3/31/23 | 19,115 | 17,777 | |
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 | 28,000 | 27,630 | |
5.125% 5/1/25 | 7,500 | 7,013 | |
Valeant Pharmaceuticals International, Inc. 5.5% 11/1/25 (h) | 5,590 | 5,811 | |
TOTAL HEALTHCARE | 58,231 | ||
Homebuilders/Real Estate - 0.1% | |||
VICI Properties, Inc.: | |||
3.5% 2/15/25 (h) | 1,205 | 1,130 | |
4.25% 12/1/26 (h) | 1,725 | 1,612 | |
4.625% 12/1/29 (h) | 985 | 910 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 3,652 | ||
Leisure - 0.2% | |||
Carnival Corp. 11.5% 4/1/23 (h) | 4,910 | 5,130 | |
Studio City Co. Ltd. 7.25% 11/30/21 (h) | 10,000 | 9,869 | |
TOTAL LEISURE | 14,999 | ||
Paper - 0.2% | |||
CommScope Finance LLC: | |||
5.5% 3/1/24 (h) | 5,800 | 5,800 | |
6% 3/1/26 (h) | 5,800 | 5,800 | |
TOTAL PAPER | 11,600 | ||
Restaurants - 0.1% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc.: | |||
4.25% 5/15/24 (h) | 8,000 | 7,998 | |
5.75% 4/15/25 (h) | 660 | 696 | |
TOTAL RESTAURANTS | 8,694 | ||
Services - 0.2% | |||
APX Group, Inc. 7.625% 9/1/23 | 6,155 | 4,801 | |
Aramark Services, Inc. 6.375% 5/1/25 (h) | 2,535 | 2,636 | |
Expedia, Inc.: | |||
6.25% 5/1/25 (h)(i) | 3,030 | 3,088 | |
7% 5/1/25 (h)(i) | 960 | 976 | |
GEMS MENASA Cayman Ltd. 7.125% 7/31/26 (h) | 4,675 | 4,291 | |
TOTAL SERVICES | 15,792 | ||
Super Retail - 0.0% | |||
Staples, Inc. 10.75% 4/15/27 (h) | 5,625 | 3,206 | |
Technology - 0.6% | |||
Diamond 1 Finance Corp./Diamond 2 Finance Corp. 4.42% 6/15/21 (h) | 16,685 | 17,010 | |
NXP BV/NXP Funding LLC 4.125% 6/1/21 (h) | 16,440 | 16,795 | |
SSL Robotics LLC 9.75% 12/31/23 (h) | 5,625 | 5,974 | |
TOTAL TECHNOLOGY | 39,779 | ||
Telecommunications - 0.8% | |||
Altice Financing SA 7.5% 5/15/26 (h) | 19,200 | 20,016 | |
Intelsat Jackson Holdings SA 8% 2/15/24 (h) | 14,100 | 14,478 | |
SFR Group SA 7.375% 5/1/26 (h) | 18,755 | 19,599 | |
TOTAL TELECOMMUNICATIONS | 54,093 | ||
Transportation Ex Air/Rail - 0.2% | |||
Avolon Holdings Funding Ltd. 5.125% 10/1/23 (h) | 12,290 | 10,994 | |
TOTAL NONCONVERTIBLE BONDS | |||
(Cost $426,148) | 386,491 | ||
Shares | Value (000s) | ||
Common Stocks - 0.6% | |||
Automotive & Auto Parts - 0.0% | |||
Motors Liquidation Co. GUC Trust (j) | 263 | 3 | |
Broadcasting - 0.0% | |||
Clear Channel Outdoor Holdings, Inc. (j) | 319,963 | 309 | |
iHeartMedia, Inc. (j) | 136,038 | 955 | |
iHeartMedia, Inc. warrants 5/1/39 (j) | 30 | 0 | |
ION Media Networks, Inc. (f)(j) | 2,842 | 1,685 | |
TOTAL BROADCASTING | 2,949 | ||
Energy - 0.3% | |||
Expro Holdings U.S., Inc. (f)(j) | 1,477,422 | 14,774 | |
Expro Holdings U.S., Inc. (f)(h)(j) | 542,213 | 5,422 | |
TOTAL ENERGY | 20,196 | ||
Publishing/Printing - 0.0% | |||
Cenveo Corp. (f)(j) | 75,509 | 2,202 | |
Super Retail - 0.0% | |||
David's Bridal, Inc. (f) | 16,536 | 2 | |
David's Bridal, Inc. rights (f)(j) | 4,171 | 1 | |
TOTAL SUPER RETAIL | 3 | ||
Utilities - 0.3% | |||
TexGen Power LLC (f) | 524,336 | 17,744 | |
TOTAL COMMON STOCKS | |||
(Cost $82,484) | 43,097 | ||
Principal Amount (000s) | Value (000s) | ||
Preferred Securities - 0.1% | |||
Banks & Thrifts - 0.1% | |||
JPMorgan Chase & Co.: | |||
3 month U.S. LIBOR + 3.320% 4.7534% (a)(b)(k) | 3,380 | 2,976 | |
3 month U.S. LIBOR + 3.470% 4.2301% (a)(b)(k) | 3,365 | 3,079 | |
TOTAL PREFERRED SECURITIES | |||
(Cost $6,194) | 6,055 | ||
Shares | Value (000s) | ||
Money Market Funds - 3.8% | |||
Fidelity Cash Central Fund 0.16% (l) | |||
(Cost $263,606) | 263,574,899 | 263,654 | |
TOTAL INVESTMENT IN SECURITIES - 98.9% | |||
(Cost $7,958,931) | 6,852,857 | ||
NET OTHER ASSETS (LIABILITIES) - 1.1% | 75,102 | ||
NET ASSETS - 100% | $6,927,959 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(b) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(c) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(d) The coupon rate will be determined upon settlement of the loan after period end.
(e) Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $4,169,000 and $3,596,000, respectively.
(f) Level 3 security
(g) Non-income producing - Security is in default.
(h) 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 $325,548,000 or 4.7% of net assets.
(i) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(j) Non-income producing
(k) Security is perpetual in nature with no stated maturity date.
(l) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $3,914 |
Total | $3,914 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2020, 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 | $2,949 | $1,264 | $-- | $1,685 |
Consumer Discretionary | 3 | -- | -- | 3 |
Energy | 20,196 | -- | -- | 20,196 |
Financials | 3 | 3 | -- | -- |
Industrials | 2,202 | -- | -- | 2,202 |
Utilities | 17,744 | -- | -- | 17,744 |
Bank Loan Obligations | 6,153,560 | -- | 6,115,979 | 37,581 |
Corporate Bonds | 386,491 | -- | 386,491 | -- |
Preferred Securities | 6,055 | -- | 6,055 | -- |
Money Market Funds | 263,654 | 263,654 | -- | -- |
Total Investments in Securities: | $6,852,857 | $264,921 | $6,508,525 | $79,411 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $62,691 |
Net Realized Gain (Loss) on Investment Securities | 8 |
Net Unrealized Gain (Loss) on Investment Securities | (21,246) |
Cost of Purchases | 31,674 |
Proceeds of Sales | (2,109) |
Amortization/Accretion | 9 |
Transfers into Level 3 | 11,545 |
Transfers out of Level 3 | (3,161) |
Ending Balance | $79,411 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2020 | $(21,263) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 87.6% |
Luxembourg | 6.3% |
France | 1.3% |
Netherlands | 1.3% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 2.5% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $7,695,325) | $6,589,203 | |
Fidelity Central Funds (cost $263,606) | 263,654 | |
Total Investment in Securities (cost $7,958,931) | $6,852,857 | |
Cash | 3,128 | |
Receivable for investments sold | 218,345 | |
Receivable for fund shares sold | 2,985 | |
Interest receivable | 42,648 | |
Distributions receivable from Fidelity Central Funds | 32 | |
Prepaid expenses | 5 | |
Other receivables | 205 | |
Total assets | 7,120,205 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $157,728 | |
Delayed delivery | 3,990 | |
Payable for fund shares redeemed | 21,133 | |
Distributions payable | 4,645 | |
Accrued management fee | 3,245 | |
Distribution and service plan fees payable | 258 | |
Other affiliated payables | 815 | |
Other payables and accrued expenses | 432 | |
Total liabilities | 192,246 | |
Net Assets | $6,927,959 | |
Net Assets consist of: | ||
Paid in capital | $8,714,050 | |
Total accumulated earnings (loss) | (1,786,091) | |
Net Assets | $6,927,959 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($408,585 ÷ 48,508 shares)(a) | $8.42 | |
Maximum offering price per share (100/97.25 of $8.42) | $8.66 | |
Class M: | ||
Net Asset Value and redemption price per share ($61,624 ÷ 7,327 shares)(a) | $8.41 | |
Maximum offering price per share (100/97.25 of $8.41) | $8.65 | |
Class C: | ||
Net Asset Value and offering price per share ($188,205 ÷ 22,349 shares)(a) | $8.42 | |
Fidelity Floating Rate High Income Fund: | ||
Net Asset Value, offering price and redemption price per share ($4,851,474 ÷ 576,746 shares) | $8.41 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($723,456 ÷ 86,078 shares) | $8.40 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($694,615 ÷ 82,606 shares) | $8.41 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended April 30, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $6,200 | |
Interest | 241,698 | |
Income from Fidelity Central Funds | 3,914 | |
Total income | 251,812 | |
Expenses | ||
Management fee | $25,035 | |
Transfer agent fees | 4,914 | |
Distribution and service plan fees | 1,890 | |
Accounting fees and expenses | 767 | |
Custodian fees and expenses | 43 | |
Independent trustees' fees and expenses | 29 | |
Registration fees | 170 | |
Audit | 50 | |
Legal | (35) | |
Interest | 58 | |
Miscellaneous | 181 | |
Total expenses before reductions | 33,102 | |
Expense reductions | (59) | |
Total expenses after reductions | 33,043 | |
Net investment income (loss) | 218,769 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (248,010) | |
Fidelity Central Funds | 100 | |
Total net realized gain (loss) | (247,910) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (806,890) | |
Fidelity Central Funds | (31) | |
Total change in net unrealized appreciation (depreciation) | (806,921) | |
Net gain (loss) | (1,054,831) | |
Net increase (decrease) in net assets resulting from operations | $(836,062) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2020 (Unaudited) | Year ended October 31, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $218,769 | $549,299 |
Net realized gain (loss) | (247,910) | (65,406) |
Change in net unrealized appreciation (depreciation) | (806,921) | (206,279) |
Net increase (decrease) in net assets resulting from operations | (836,062) | 277,614 |
Distributions to shareholders | (220,437) | (554,339) |
Share transactions - net increase (decrease) | (1,666,325) | (2,716,901) |
Total increase (decrease) in net assets | (2,722,824) | (2,993,626) |
Net Assets | ||
Beginning of period | 9,650,783 | 12,644,409 |
End of period | $6,927,959 | $9,650,783 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Floating Rate High Income Fund Class A
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $9.39 | $9.61 | $9.67 | $9.60 | $9.42 | $9.85 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .209 | .461 | .398 | .360 | .334 | .375 |
Net realized and unrealized gain (loss) | (.970) | (.216) | (.056) | .056 | .211 | (.425) |
Total from investment operations | (.761) | .245 | .342 | .416 | .545 | (.050) |
Distributions from net investment income | (.209) | (.465) | (.398) | (.346) | (.365) | (.341) |
Distributions from net realized gain | – | – | (.004) | – | – | (.040) |
Total distributions | (.209) | (.465) | (.402) | (.346) | (.365) | (.381) |
Redemption fees added to paid in capitalA | – | – | –B | –B | –B | .001 |
Net asset value, end of period | $8.42 | $9.39 | $9.61 | $9.67 | $9.60 | $9.42 |
Total ReturnC,D,E | (8.24)% | 2.63% | 3.60% | 4.40% | 5.98% | (.53)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .99%H | .98% | .98% | .99% | .99% | .98% |
Expenses net of fee waivers, if any | .99%H | .98% | .98% | .98% | .99% | .98% |
Expenses net of all reductions | .99%H | .98% | .98% | .98% | .98% | .98% |
Net investment income (loss) | 4.59%H | 4.86% | 4.13% | 3.72% | 3.58% | 3.86% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $409 | $546 | $598 | $585 | $707 | $863 |
Portfolio turnover rateI | 43%H | 22% | 47% | 68% | 46% | 26% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund Class M
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $9.38 | $9.59 | $9.65 | $9.58 | $9.40 | $9.84 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .208 | .460 | .396 | .356 | .324 | .365 |
Net realized and unrealized gain (loss) | (.970) | (.206) | (.055) | .057 | .212 | (.434) |
Total from investment operations | (.762) | .254 | .341 | .413 | .536 | (.069) |
Distributions from net investment income | (.208) | (.464) | (.397) | (.343) | (.356) | (.332) |
Distributions from net realized gain | – | – | (.004) | – | – | (.040) |
Total distributions | (.208) | (.464) | (.401) | (.343) | (.356) | (.372) |
Redemption fees added to paid in capitalA | – | – | –B | –B | –B | .001 |
Net asset value, end of period | $8.41 | $9.38 | $9.59 | $9.65 | $9.58 | $9.40 |
Total ReturnC,D,E | (8.25)% | 2.72% | 3.59% | 4.37% | 5.89% | (.72)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.00%H | .99% | .99% | 1.01% | 1.08% | 1.07% |
Expenses net of fee waivers, if any | 1.00%H | .99% | .99% | 1.01% | 1.08% | 1.07% |
Expenses net of all reductions | 1.00%H | .99% | .99% | 1.01% | 1.08% | 1.07% |
Net investment income (loss) | 4.58%H | 4.86% | 4.11% | 3.69% | 3.48% | 3.77% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $62 | $84 | $102 | $137 | $171 | $195 |
Portfolio turnover rateI | 43%H | 22% | 47% | 68% | 46% | 26% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund Class C
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $9.39 | $9.61 | $9.67 | $9.59 | $9.41 | $9.85 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .174 | .392 | .325 | .286 | .263 | .301 |
Net realized and unrealized gain (loss) | (.969) | (.218) | (.056) | .067 | .212 | (.434) |
Total from investment operations | (.795) | .174 | .269 | .353 | .475 | (.133) |
Distributions from net investment income | (.175) | (.394) | (.325) | (.273) | (.295) | (.268) |
Distributions from net realized gain | – | – | (.004) | – | – | (.040) |
Total distributions | (.175) | (.394) | (.329) | (.273) | (.295) | (.308) |
Redemption fees added to paid in capitalA | – | – | –B | –B | –B | .001 |
Net asset value, end of period | $8.42 | $9.39 | $9.61 | $9.67 | $9.59 | $9.41 |
Total ReturnC,D,E | (8.58)% | 1.86% | 2.83% | 3.73% | 5.19% | (1.38)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.75%H | 1.73% | 1.73% | 1.74% | 1.74% | 1.73% |
Expenses net of fee waivers, if any | 1.75%H | 1.73% | 1.73% | 1.74% | 1.74% | 1.73% |
Expenses net of all reductions | 1.75%H | 1.73% | 1.73% | 1.74% | 1.74% | 1.73% |
Net investment income (loss) | 3.83%H | 4.11% | 3.36% | 2.96% | 2.82% | 3.10% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $188 | $261 | $464 | $523 | $582 | $671 |
Portfolio turnover rateI | 43%H | 22% | 47% | 68% | 46% | 26% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $9.38 | $9.60 | $9.65 | $9.58 | $9.40 | $9.84 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .223 | .490 | .426 | .386 | .359 | .401 |
Net realized and unrealized gain (loss) | (.970) | (.218) | (.046) | .057 | .212 | (.435) |
Total from investment operations | (.747) | .272 | .380 | .443 | .571 | (.034) |
Distributions from net investment income | (.223) | (.492) | (.426) | (.373) | (.391) | (.367) |
Distributions from net realized gain | – | – | (.004) | – | – | (.040) |
Total distributions | (.223) | (.492) | (.430) | (.373) | (.391) | (.407) |
Redemption fees added to paid in capitalA | – | – | –B | –B | –B | .001 |
Net asset value, end of period | $8.41 | $9.38 | $9.60 | $9.65 | $9.58 | $9.40 |
Total ReturnC,D | (8.11)% | 2.93% | 4.01% | 4.70% | 6.28% | (.36)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .68%G | .68% | .69% | .70% | .71% | .70% |
Expenses net of fee waivers, if any | .68%G | .68% | .68% | .69% | .71% | .70% |
Expenses net of all reductions | .68%G | .68% | .68% | .69% | .71% | .70% |
Net investment income (loss) | 4.89%G | 5.16% | 4.44% | 4.01% | 3.86% | 4.14% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $4,851 | $7,130 | $9,221 | $7,368 | $6,131 | $6,615 |
Portfolio turnover rateH | 43%G | 22% | 47% | 68% | 46% | 26% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund Class I
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $9.37 | $9.59 | $9.65 | $9.58 | $9.40 | $9.83 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .222 | .486 | .419 | .380 | .355 | .396 |
Net realized and unrealized gain (loss) | (.971) | (.218) | (.056) | .058 | .211 | (.424) |
Total from investment operations | (.749) | .268 | .363 | .438 | .566 | (.028) |
Distributions from net investment income | (.221) | (.488) | (.419) | (.368) | (.386) | (.363) |
Distributions from net realized gain | – | – | (.004) | – | – | (.040) |
Total distributions | (.221) | (.488) | (.423) | (.368) | (.386) | (.403) |
Redemption fees added to paid in capitalA | – | – | –B | –B | –B | .001 |
Net asset value, end of period | $8.40 | $9.37 | $9.59 | $9.65 | $9.58 | $9.40 |
Total ReturnC,D | (8.14)% | 2.88% | 3.84% | 4.64% | 6.23% | (.30)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .73%G | .74% | .75% | .75% | .75% | .74% |
Expenses net of fee waivers, if any | .73%G | .74% | .75% | .75% | .75% | .74% |
Expenses net of all reductions | .73%G | .73% | .75% | .75% | .75% | .74% |
Net investment income (loss) | 4.85%G | 5.11% | 4.36% | 3.95% | 3.81% | 4.10% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $723 | $1,190 | $2,243 | $2,120 | $1,748 | $2,429 |
Portfolio turnover rateH | 43%G | 22% | 47% | 68% | 46% | 26% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund Class Z
Six months ended (Unaudited) April 30, | Years endedOctober 31, | ||
2020 | 2019 | 2018 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $9.37 | $9.59 | $9.65 |
Income from Investment Operations | |||
Net investment income (loss)B | .219 | .484 | .051 |
Net realized and unrealized gain (loss) | (.954) | (.207) | (.076) |
Total from investment operations | (.735) | .277 | (.025) |
Distributions from net investment income | (.225) | (.497) | (.035) |
Distributions from net realized gain | – | – | – |
Total distributions | (.225) | (.497) | (.035) |
Net asset value, end of period | $8.41 | $9.37 | $9.59 |
Total ReturnC,D | (7.99)% | 2.98% | (.26)% |
Ratios to Average Net AssetsE,F | |||
Expenses before reductions | .63%G | .63% | .62%G |
Expenses net of fee waivers, if any | .63%G | .62% | .62%G |
Expenses net of all reductions | .63%G | .62% | .62%G |
Net investment income (loss) | 4.94%G | 5.22% | 7.64%G |
Supplemental Data | |||
Net assets, end of period (in millions) | $695 | $439 | $16 |
Portfolio turnover rateH | 43%G | 22% | 47% |
A For the period October 2, 2018 (commencement of sale of shares) to October 31, 2018.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Floating Rate High 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, Fidelity Floating Rate High Income 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. 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.
Effective January 1, 2020:
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. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 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 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:
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, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
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 April 30, 2020, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Interest in the accompanying financial statements.
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 $203 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. 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.
Distributions are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, 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.
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 market discount, deferred trustees compensation, capital loss carryforwards 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 | $14,434 |
Gross unrealized depreciation | (1,102,977) |
Net unrealized appreciation (depreciation) | $(1,088,543) |
Tax cost | $7,941,400 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(15,579) |
Long-term | (435,448) |
Total capital loss carryforward | $(451,027) |
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. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund also invests in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. In March 2020, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other IBOR-based reference rates as of the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the potential impact of ASU 2020-04 to the financial statements.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Floating Rate High Income Fund | 1,812,624 | 3,392,472 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .10% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Company LLC (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% | $629 | $36 |
Class M | -% | .25% | 95 | 1 |
Class C | .75% | .25% | 1,166 | 88 |
$1,890 | $125 |
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and 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% or .50% 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 | $23 |
Class M | 2 |
Class C(a) | 15 |
$40 |
(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 LLC (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 applicable class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $392 | .16 |
Class M | 62 | .17 |
Class C | 185 | .16 |
Fidelity Floating Rate High Income Fund | 3,373 | .10 |
Class I | 743 | .15 |
Class Z | 159 | .05 |
$4,914 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Advisor Floating Rate High Income Fund | .02 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, were no interfund loans outstanding. 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 | |
Fidelity Advisor Floating Rate High Income Fund | Borrower | $234,961 | .44% | $58 |
Interfund Trades. Funds 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.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Advisor Floating Rate High Income Fund | $12 |
During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
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 $38.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $10.
In addition, during the period the investment adviser or an affiliate reimbursed the Fund $11 for an operational error which is included in the accompanying Statement of Operations.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended April 30, 2020 | Year ended October 31, 2019 | |
Distributions to shareholders | ||
Class A | $11,585 | $27,607 |
Class M | 1,740 | 4,516 |
Class C | 4,497 | 14,797 |
Fidelity Floating Rate High Income Fund | 162,317 | 407,889 |
Class I | 24,857 | 88,477 |
Class Z | 15,441 | 11,053 |
Total | $220,437 | $554,339 |
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended April 30, 2020 | Year ended October 31, 2019 | Six months ended April 30, 2020 | Year ended October 31, 2019 | |
Class A | ||||
Shares sold | 6,204 | 20,991 | $56,858 | $198,969 |
Reinvestment of distributions | 1,186 | 2,721 | 10,763 | 25,731 |
Shares redeemed | (16,997) | (27,807) | (149,214) | (262,666) |
Net increase (decrease) | (9,607) | (4,095) | $(81,593) | $(37,966) |
Class M | ||||
Shares sold | 369 | 1,522 | $3,365 | $14,379 |
Reinvestment of distributions | 184 | 466 | 1,672 | 4,403 |
Shares redeemed | (2,218) | (3,588) | (19,654) | (33,885) |
Net increase (decrease) | (1,665) | (1,600) | $(14,617) | $(15,103) |
Class C | ||||
Shares sold | 1,080 | 3,950 | $9,926 | $37,358 |
Reinvestment of distributions | 433 | 1,392 | 3,929 | 13,143 |
Shares redeemed | (6,962) | (25,878) | (61,897) | (245,211) |
Net increase (decrease) | (5,449) | (20,536) | $(48,042) | $(194,710) |
Fidelity Floating Rate High Income Fund | ||||
Shares sold | 123,614 | 232,457 | $1,147,400 | $2,199,487 |
Reinvestment of distributions | 14,764 | 35,002 | 133,906 | 330,475 |
Shares redeemed | (321,975) | (468,053) | (2,808,283) | (4,418,640) |
Net increase (decrease) | (183,597) | (200,594) | $(1,526,977) | $(1,888,678) |
Class I | ||||
Shares sold | 16,613 | 44,272 | $150,478 | $417,956 |
Reinvestment of distributions | 2,050 | 6,450 | 18,569 | 60,825 |
Shares redeemed | (59,639) | (157,621) | (537,899) | (1,487,256) |
Net increase (decrease) | (40,976) | (106,899) | $(368,852) | $(1,008,475) |
Class Z | ||||
Shares sold | 82,216 | 57,622 | $765,325 | $546,413 |
Reinvestment of distributions | 851 | 767 | 7,535 | 7,244 |
Shares redeemed | (47,266) | (13,272) | (399,104) | (125,626) |
Net increase (decrease) | 35,801 | 45,117 | $373,756 | $428,031 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
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 (November 1, 2019 to April 30, 2020).
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 November 1, 2019 | Ending Account Value April 30, 2020 | Expenses Paid During Period-B November 1, 2019 to April 30, 2020 | |
Class A | .99% | |||
Actual | $1,000.00 | $917.60 | $4.72 | |
Hypothetical-C | $1,000.00 | $1,019.94 | $4.97 | |
Class M | 1.00% | |||
Actual | $1,000.00 | $917.50 | $4.77 | |
Hypothetical-C | $1,000.00 | $1,019.89 | $5.02 | |
Class C | 1.75% | |||
Actual | $1,000.00 | $914.20 | $8.33 | |
Hypothetical-C | $1,000.00 | $1,016.16 | $8.77 | |
Fidelity Floating Rate High Income Fund | .68% | |||
Actual | $1,000.00 | $918.90 | $3.24 | |
Hypothetical-C | $1,000.00 | $1,021.48 | $3.42 | |
Class I | .73% | |||
Actual | $1,000.00 | $918.60 | $3.48 | |
Hypothetical-C | $1,000.00 | $1,021.23 | $3.67 | |
Class Z | .63% | |||
Actual | $1,000.00 | $920.10 | $3.01 | |
Hypothetical-C | $1,000.00 | $1,021.73 | $3.17 |
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 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Floating Rate High Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.Approval of Amended and Restated Advisory Contracts. At its November 2019 meeting, the Board unanimously determined to approve an amended and restated management contract and sub-advisory agreements (Amended and Restated Contracts) for a stub period of January 1, 2020 through January 31, 2020 in connection with a consolidation of certain of Fidelity's advisory businesses. The Board considered that, on or about January 1, 2020, FMR Co., Inc. (FMRC) expected to merge with and into FMR and, after the merger, FMR expected to 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 references to FMR in the Amended and Restated Contracts would be updated to reflect FMR's new form of organization and domicile and considered that the definition of "group assets" for purposes of the fund's group fee would be modified to avoid double-counting assets once the reorganization is complete. The Board also noted Fidelity's assurance that neither the planned consolidation nor the Amended and Restated Contracts will change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees paid by the fund.The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.At its January 2020 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services provided by and the profits realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and ETFs with innovative structures, strategies and pricing and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain target date funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against an appropriate securities market index (benchmark index) and a peer group of funds with similar objectives (peer group), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods ended June 30, 2019, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Floating Rate High Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-002722/img604955220.jpg)
Fidelity Advisor Floating Rate High Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-002722/img604955809.jpg)
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
AFR-SANN-0620
1.757235.119
Fidelity Advisor® High Income Advantage Fund
Semi-Annual Report
April 30, 2020
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-20-002722/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
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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Holdings as of April 30, 2020
(by issuer, excluding cash equivalents) | % of fund's net assets |
Pacific Gas & Electric Co. | 2.7 |
CCO Holdings LLC/CCO Holdings Capital Corp. | 2.4 |
Ally Financial, Inc. | 2.4 |
JPMorgan Chase & Co. | 2.4 |
CSC Holdings LLC | 2.4 |
12.3 |
Top Five Market Sectors as of April 30, 2020
% of fund's net assets | |
Energy | 10.8 |
Banks & Thrifts | 10.6 |
Technology | 9.5 |
Healthcare | 8.9 |
Utilities | 8.0 |
Quality Diversification (% of fund's net assets)
As of April 30, 2020 | ||
BBB | 7.3% | |
BB | 29.1% | |
B | 27.2% | |
CCC,CC,C | 8.9% | |
D | 0.7% | |
Not Rated | 3.5% | |
Equities | 19.9% | |
Short-Term Investments and Net Other Assets | 3.4% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of April 30, 2020 * | ||
Nonconvertible Bonds | 62.0% | |
Convertible Bonds, Preferred Stocks | 0.1% | |
Common Stocks | 19.9% | |
Bank Loan Obligations | 6.0% | |
Other Investments | 8.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.4% |
* Foreign investments - 18.1%
Schedule of Investments April 30, 2020 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 62.1% | |||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.1% | |||
Energy - 0.1% | |||
Denbury Resources, Inc. 6.375% 12/31/24 (a) | $5,735 | $754 | |
Nonconvertible Bonds - 62.0% | |||
Aerospace - 2.6% | |||
Arconic Rolled Products Corp.: | |||
6% 5/15/25 (a)(b) | 900 | 910 | |
6.125% 2/15/28 (a) | 1,090 | 1,037 | |
BBA U.S. Holdings, Inc. 5.375% 5/1/26 (a) | 655 | 604 | |
Bombardier, Inc.: | |||
7.5% 12/1/24 (a) | 2,275 | 1,511 | |
7.5% 3/15/25 (a) | 600 | 388 | |
7.875% 4/15/27 (a) | 4,075 | 2,639 | |
DAE Funding LLC: | |||
4.5% 8/1/22 (a) | 1,410 | 1,285 | |
5% 8/1/24 (a) | 1,940 | 1,734 | |
Moog, Inc. 4.25% 12/15/27 (a) | 480 | 450 | |
Spirit Aerosystems, Inc. 7.5% 4/15/25 (a) | 2,035 | 2,004 | |
TransDigm UK Holdings PLC 6.875% 5/15/26 | 1,820 | 1,556 | |
TransDigm, Inc.: | |||
5.5% 11/15/27 (a) | 11,110 | 9,388 | |
6.25% 3/15/26 (a) | 1,870 | 1,830 | |
7.5% 3/15/27 | 6,780 | 6,172 | |
Wolverine Escrow LLC: | |||
8.5% 11/15/24 (a) | 3,025 | 2,125 | |
9% 11/15/26 (a) | 3,215 | 2,229 | |
35,862 | |||
Air Transportation - 0.4% | |||
Cargo Aircraft Management, Inc. 4.75% 2/1/28 (a) | 965 | 901 | |
Continental Airlines, Inc. pass-thru certificates 6.903% 10/19/23 | 102 | 95 | |
Delta Air Lines, Inc. 7% 5/1/25 (a) | 3,705 | 3,797 | |
4,793 | |||
Automotive & Auto Parts - 0.2% | |||
Allison Transmission, Inc. 5.875% 6/1/29 (a) | 1,265 | 1,226 | |
IAA Spinco, Inc. 5.5% 6/15/27 (a) | 755 | 753 | |
Lithia Motors, Inc. 4.625% 12/15/27 (a) | 490 | 463 | |
2,442 | |||
Banks & Thrifts - 2.4% | |||
Ally Financial, Inc.: | |||
8% 11/1/31 | 3,105 | 3,586 | |
8% 11/1/31 | 24,612 | 29,944 | |
Washington Mutual Bank 5.5% 1/15/13 (c)(d) | 10,000 | 0 | |
33,530 | |||
Broadcasting - 1.0% | |||
iHeartCommunications, Inc. 4.75% 1/15/28 (a) | 1,185 | 1,025 | |
Nexstar Escrow, Inc. 5.625% 7/15/27 (a) | 3,555 | 3,395 | |
Scripps Escrow, Inc. 5.875% 7/15/27 (a) | 1,580 | 1,335 | |
Sirius XM Radio, Inc.: | |||
4.625% 7/15/24 (a) | 2,590 | 2,641 | |
5% 8/1/27 (a) | 3,200 | 3,273 | |
Tegna, Inc. 5% 9/15/29 (a) | 3,055 | 2,731 | |
14,400 | |||
Building Materials - 0.2% | |||
Advanced Drain Systems, Inc. 5% 9/30/27 (a) | 355 | 349 | |
HD Supply, Inc. 5.375% 10/15/26 (a) | 2,975 | 3,034 | |
3,383 | |||
Cable/Satellite TV - 5.9% | |||
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
4.75% 3/1/30 (a) | 8,310 | 8,476 | |
5% 2/1/28 (a) | 740 | 762 | |
5.125% 5/1/27 (a) | 21,260 | 22,075 | |
5.875% 5/1/27 (a) | 2,645 | 2,755 | |
CSC Holdings LLC: | |||
5.375% 2/1/28 (a) | 5,535 | 5,779 | |
5.5% 4/15/27 (a) | 6,640 | 6,904 | |
5.75% 1/15/30 (a) | 9,500 | 9,877 | |
6.5% 2/1/29 (a) | 3,900 | 4,260 | |
7.5% 4/1/28 (a) | 4,535 | 4,984 | |
7.75% 7/15/25 (a) | 1,260 | 1,314 | |
LCPR Senior Secured Financing DAC 6.75% 10/15/27 (a) | 1,615 | 1,679 | |
Ziggo Bond Co. BV 5.125% 2/28/30 (a) | 835 | 822 | |
Ziggo BV: | |||
4.875% 1/15/30 (a) | 1,145 | 1,132 | |
5.5% 1/15/27 (a) | 11,084 | 11,275 | |
82,094 | |||
Chemicals - 2.1% | |||
CF Industries Holdings, Inc.: | |||
4.95% 6/1/43 | 8,970 | 9,166 | |
5.15% 3/15/34 | 3,745 | 3,895 | |
5.375% 3/15/44 | 4,210 | 4,357 | |
OCI NV: | |||
5.25% 11/1/24 (a) | 2,395 | 2,359 | |
6.625% 4/15/23 (a) | 2,575 | 2,575 | |
Olin Corp. 5% 2/1/30 | 1,555 | 1,358 | |
Starfruit Finco BV / Starfruit U.S. Holdco LLC 8% 10/1/26 (a) | 1,190 | 1,114 | |
The Chemours Co. LLC 5.375% 5/15/27 | 4,500 | 3,780 | |
Valvoline, Inc. 4.25% 2/15/30 (a) | 1,155 | 1,123 | |
29,727 | |||
Consumer Products - 0.3% | |||
Terrier Media Buyer, Inc. 8.875% 12/15/27 (a) | 5,435 | 4,484 | |
Containers - 0.8% | |||
ARD Finance SA 6.5% 6/30/27 pay-in-kind (a)(e) | 1,580 | 1,467 | |
Ball Corp. 4.875% 3/15/26 | 4,125 | 4,434 | |
Cascades, Inc.: | |||
5.125% 1/15/26 (a) | 790 | 790 | |
5.375% 1/15/28 (a) | 790 | 794 | |
Crown Americas LLC/Crown Americas Capital Corp. V 4.25% 9/30/26 | 1,210 | 1,212 | |
Trivium Packaging Finance BV: | |||
5.5% 8/15/26 (a) | 1,075 | 1,102 | |
8.5% 8/15/27 (a) | 1,785 | 1,865 | |
11,664 | |||
Diversified Financial Services - 3.5% | |||
Crown Americas LLC/Crown Americas Capital Corp. IV 4.75% 2/1/26 | 4,280 | 4,398 | |
Enviva Partners LP / Enviva Partners Finance Corp. 6.5% 1/15/26 (a) | 1,575 | 1,650 | |
FLY Leasing Ltd. 5.25% 10/15/24 | 1,495 | 1,196 | |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
5.25% 5/15/27 | 4,145 | 3,938 | |
6.25% 5/15/26 | 6,840 | 6,721 | |
6.375% 12/15/25 | 2,990 | 2,975 | |
MSCI, Inc.: | |||
4% 11/15/29 (a) | 900 | 934 | |
5.75% 8/15/25 (a) | 1,345 | 1,405 | |
Park Aerospace Holdings Ltd.: | |||
4.5% 3/15/23 (a) | 3,180 | 2,813 | |
5.25% 8/15/22 (a) | 2,235 | 2,061 | |
5.5% 2/15/24 (a) | 14,300 | 12,590 | |
Springleaf Finance Corp.: | |||
5.375% 11/15/29 | 1,325 | 1,100 | |
6.625% 1/15/28 | 1,185 | 1,046 | |
6.875% 3/15/25 | 2,045 | 1,934 | |
7.125% 3/15/26 | 4,710 | 4,439 | |
49,200 | |||
Diversified Media - 0.2% | |||
Block Communications, Inc. 4.875% 3/1/28 (a) | 1,090 | 1,085 | |
E.W. Scripps Co. 5.125% 5/15/25 (a) | 820 | 691 | |
Outfront Media Capital LLC / Corp. 4.625% 3/15/30 (a) | 1,580 | 1,442 | |
3,218 | |||
Energy - 8.5% | |||
Antero Midstream Partners LP/Antero Midstream Finance Corp.: | |||
5.75% 3/1/27 (a) | 2,355 | 1,743 | |
5.75% 1/15/28 (a) | 1,705 | 1,253 | |
Antero Resources Finance Corp. 5.375% 11/1/21 | 2,165 | 1,936 | |
Callon Petroleum Co. 6.375% 7/1/26 | 1,080 | 173 | |
Centennial Resource Production LLC 6.875% 4/1/27 (a) | 1,600 | 480 | |
Cheniere Energy Partners LP 5.625% 10/1/26 | 2,120 | 2,026 | |
Chesapeake Energy Corp.: | |||
4.875% 4/15/22 | 2,950 | 81 | |
5.75% 3/15/23 | 1,890 | 40 | |
7% 10/1/24 | 840 | 17 | |
8% 1/15/25 | 480 | 10 | |
8% 6/15/27 | 300 | 6 | |
11.5% 1/1/25 (a) | 3,531 | 97 | |
Citgo Holding, Inc. 9.25% 8/1/24 (a) | 1,880 | 1,692 | |
Comstock Escrow Corp. 9.75% 8/15/26 | 4,981 | 4,309 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 4.4905% 6/15/22 (a)(e)(f) | 4,580 | 3,803 | |
6.5% 5/15/26 (a) | 9,920 | 7,713 | |
6.875% 6/15/25 (a) | 3,565 | 2,745 | |
Continental Resources, Inc.: | |||
3.8% 6/1/24 | 598 | 489 | |
4.375% 1/15/28 | 245 | 189 | |
4.5% 4/15/23 | 360 | 318 | |
4.9% 6/1/44 | 375 | 261 | |
Covey Park Energy LLC 7.5% 5/15/25 (a) | 5,550 | 4,607 | |
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. 6.25% 4/1/23 | 310 | 226 | |
CVR Energy, Inc.: | |||
5.25% 2/15/25 (a) | 2,375 | 1,948 | |
5.75% 2/15/28 (a) | 3,170 | 2,680 | |
DCP Midstream LLC 5.85% 5/21/43 (a)(e) | 5,180 | 2,383 | |
DCP Midstream Operating LP 5.375% 7/15/25 | 2,975 | 2,410 | |
Denbury Resources, Inc.: | |||
7.75% 2/15/24 (a) | 11,764 | 2,118 | |
9.25% 3/31/22 (a) | 995 | 179 | |
Diamond Offshore Drilling, Inc.: | |||
4.875% 11/1/43 (c) | 75 | 8 | |
5.7% 10/15/39 (c) | 390 | 42 | |
Duke Energy Field Services 8.125% 8/16/30 | 130 | 101 | |
EG Global Finance PLC 8.5% 10/30/25 (a) | 2,295 | 2,238 | |
Endeavor Energy Resources LP/EER Finance, Inc.: | |||
5.5% 1/30/26 (a) | 800 | 708 | |
5.75% 1/30/28 (a) | 805 | 700 | |
EnLink Midstream LLC 5.375% 6/1/29 | 650 | 403 | |
EP Energy LLC/Everest Acquisition Finance, Inc. 7.75% 5/15/26 (a)(c) | 13,375 | 1,471 | |
EQT Corp. 3.9% 10/1/27 | 3,890 | 3,268 | |
Hess Infrastructure Partners LP 5.625% 2/15/26 (a) | 2,390 | 2,223 | |
Hess Midstream Partners LP 5.125% 6/15/28 (a) | 1,570 | 1,376 | |
Hilcorp Energy I LP/Hilcorp Finance Co.: | |||
5% 12/1/24 (a) | 1,572 | 888 | |
5.75% 10/1/25 (a) | 5,090 | 2,838 | |
6.25% 11/1/28 (a) | 310 | 160 | |
Holly Energy Partners LP/Holly Finance Corp.(a) | 1,060 | 964 | |
Indigo Natural Resources LLC 6.875% 2/15/26 (a) | 2,120 | 1,972 | |
Jonah Energy LLC 7.25% 10/15/25 (a) | 4,335 | 76 | |
KLX Energy Services Holdings, Inc. 11.5% 11/1/25 (a) | 2,300 | 842 | |
Laredo Petroleum, Inc.: | |||
9.5% 1/15/25 | 1,585 | 674 | |
10.125% 1/15/28 | 1,190 | 485 | |
Magnolia Oil & Gas Operating LLC 6% 8/1/26 (a) | 1,855 | 1,521 | |
MEG Energy Corp. 7.125% 2/1/27 (a) | 1,580 | 1,090 | |
MPLX LP 6.375% 5/1/24 (a) | 1,310 | 1,337 | |
Nabors Industries Ltd.: | |||
7.25% 1/15/26 (a) | 1,580 | 600 | |
7.5% 1/15/28 (a) | 1,360 | 544 | |
Nabors Industries, Inc. 5.75% 2/1/25 | 4,590 | 1,044 | |
Oasis Petroleum, Inc. 6.875% 3/15/22 | 857 | 127 | |
Occidental Petroleum Corp.: | |||
4.4% 4/15/46 | 1,305 | 819 | |
4.4% 8/15/49 | 3,295 | 1,989 | |
4.625% 6/15/45 | 1,070 | 655 | |
6.45% 9/15/36 | 1,305 | 953 | |
6.6% 3/15/46 | 1,225 | 907 | |
Pacific Drilling SA 12% 4/1/24 pay-in-kind (a)(e) | 226 | 7 | |
Parsley Energy LLC/Parsley Finance Corp.: | |||
5.375% 1/15/25 (a) | 150 | 135 | |
5.625% 10/15/27 (a) | 355 | 304 | |
PBF Holding Co. LLC/PBF Finance Corp.: | |||
6% 2/15/28 (a) | 3,845 | 2,737 | |
7.25% 6/15/25 | 2,125 | 1,631 | |
PBF Logistics LP/PBF Logistics Finance, Inc. 6.875% 5/15/23 | 3,315 | 2,553 | |
Range Resources Corp. 4.875% 5/15/25 | 5,165 | 4,003 | |
Sanchez Energy Corp. 7.25% 2/15/23 (a)(c) | 6,264 | 63 | |
SESI LLC 7.75% 9/15/24 | 1,160 | 240 | |
SM Energy Co.: | |||
5% 1/15/24 | 1,730 | 546 | |
5.625% 6/1/25 | 2,565 | 718 | |
6.625% 1/15/27 | 850 | 224 | |
6.75% 9/15/26 | 845 | 230 | |
Southwestern Energy Co.: | |||
7.5% 4/1/26 | 6,670 | 5,973 | |
7.75% 10/1/27 | 1,285 | 1,118 | |
Sunoco LP/Sunoco Finance Corp.: | |||
4.875% 1/15/23 | 2,080 | 2,023 | |
5.5% 2/15/26 | 1,770 | 1,708 | |
6% 4/15/27 | 4,240 | 4,134 | |
Teine Energy Ltd. 6.875% 9/30/22 (a) | 4,916 | 4,719 | |
TerraForm Power Operating LLC: | |||
4.25% 1/31/23 (a) | 965 | 989 | |
4.75% 1/15/30 (a) | 1,600 | 1,636 | |
5% 1/31/28 (a) | 1,175 | 1,233 | |
Transocean Poseidon Ltd. 6.875% 2/1/27 (a) | 2,690 | 2,112 | |
Ultra Resources, Inc. 11% 7/12/24 pay-in-kind | 1,983 | 119 | |
W&T Offshore, Inc. 9.75% 11/1/23 (a) | 1,500 | 495 | |
118,605 | |||
Entertainment/Film - 0.5% | |||
Allen Media LLC 10.5% 2/15/28 (a) | 1,585 | 1,177 | |
Livent, Inc. 9.375% 10/15/04 (c)(d) | 11,100 | 0 | |
New Cotai LLC/New Cotai Capital Corp. 10.625% 5/1/19 pay-in-kind (a)(c)(e) | 12,385 | 5,573 | |
6,750 | |||
Environmental - 0.9% | |||
Covanta Holding Corp.: | |||
5.875% 3/1/24 | 4,680 | 4,598 | |
6% 1/1/27 | 3,440 | 3,302 | |
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (a) | 4,733 | 4,615 | |
12,515 | |||
Food & Drug Retail - 0.7% | |||
Albertsons Companies LLC/Safeway, Inc./New Albertson's, Inc./Albertson's LLC: | |||
4.625% 1/15/27 (a) | 2,295 | 2,306 | |
4.875% 2/15/30 (a) | 4,650 | 4,714 | |
Performance Food Group, Inc. 5.5% 10/15/27 (a) | 1,930 | 1,834 | |
Tops Markets LLC 13% 11/19/24 pay-in-kind (e) | 898 | 871 | |
9,725 | |||
Food/Beverage/Tobacco - 3.3% | |||
Darling International, Inc. 5.25% 4/15/27 (a) | 2,155 | 2,171 | |
ESAL GmbH 6.25% 2/5/23 (a) | 633 | 627 | |
JBS Investments II GmbH: | |||
5.75% 1/15/28 (a) | 1,665 | 1,623 | |
7% 1/15/26 (a) | 1,795 | 1,862 | |
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: | |||
5.75% 6/15/25 (a) | 3,895 | 3,944 | |
5.875% 7/15/24 (a) | 3,345 | 3,412 | |
6.75% 2/15/28 (a) | 4,025 | 4,311 | |
JBS U.S.A. Lux SA / JBS Food Co.: | |||
5.5% 1/15/30 (a) | 10,845 | 10,981 | |
6.5% 4/15/29 (a) | 4,655 | 4,923 | |
KeHE Distributors LLC / KeHE Finance Corp. 8.625% 10/15/26 (a) | 1,485 | 1,570 | |
Pilgrim's Pride Corp.: | |||
5.75% 3/15/25 (a) | 625 | 631 | |
5.875% 9/30/27 (a) | 1,110 | 1,123 | |
Post Holdings, Inc.: | |||
4.625% 4/15/30 (a) | 1,585 | 1,553 | |
5.625% 1/15/28 (a) | 2,640 | 2,686 | |
5.75% 3/1/27 (a) | 4,735 | 4,847 | |
46,264 | |||
Gaming - 0.5% | |||
MCE Finance Ltd. 5.375% 12/4/29 (a) | 1,140 | 1,065 | |
Scientific Games Corp.: | |||
7% 5/15/28 (a) | 1,185 | 853 | |
7.25% 11/15/29 (a) | 1,185 | 844 | |
Transocean, Inc. 7.25% 11/1/25 (a) | 4,035 | 1,533 | |
Wynn Macau Ltd. 5.125% 12/15/29 (a) | 2,345 | 2,263 | |
6,558 | |||
Healthcare - 5.9% | |||
BCPE Cycle Merger Sub II, Inc. 10.625% 7/15/27 (a) | 3,835 | 3,821 | |
Catalent Pharma Solutions 5% 7/15/27 (a) | 595 | 607 | |
Centene Corp.: | |||
4.25% 12/15/27 (a) | 1,625 | 1,700 | |
4.625% 12/15/29 (a) | 5,675 | 6,214 | |
4.75% 1/15/25 (a) | 1,050 | 1,075 | |
5.25% 4/1/25 (a) | 555 | 579 | |
5.375% 6/1/26 (a) | 4,620 | 4,895 | |
5.375% 8/15/26 (a) | 1,185 | 1,262 | |
Charles River Laboratories International, Inc. 4.25% 5/1/28 (a) | 485 | 489 | |
Community Health Systems, Inc.: | |||
6.625% 2/15/25 (a) | 1,835 | 1,684 | |
8% 3/15/26 (a) | 11,505 | 11,028 | |
8.125% 6/30/24 (a) | 6,140 | 4,098 | |
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 3,020 | 3,016 | |
DaVita HealthCare Partners, Inc. 5.125% 7/15/24 | 3,635 | 3,690 | |
Encompass Health Corp.: | |||
5.75% 11/1/24 | 915 | 920 | |
5.75% 9/15/25 | 400 | 406 | |
Hologic, Inc.: | |||
4.375% 10/15/25 (a) | 1,860 | 1,869 | |
4.625% 2/1/28 (a) | 645 | 655 | |
IMS Health, Inc. 5% 10/15/26 (a) | 1,125 | 1,160 | |
MPT Operating Partnership LP/MPT Finance Corp. 5% 10/15/27 | 6,875 | 7,013 | |
Ortho-Clinical Diagnostics, Inc. 7.25% 2/1/28 (a) | 2,260 | 2,028 | |
Radiology Partners, Inc. 9.25% 2/1/28 (a) | 2,905 | 2,767 | |
Service Corp. International 5.125% 6/1/29 | 920 | 957 | |
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 | 5,035 | 4,969 | |
5.125% 5/1/25 | 6,430 | 6,012 | |
6.25% 2/1/27 (a) | 4,660 | 4,588 | |
Valeant Pharmaceuticals International, Inc.: | |||
5.75% 8/15/27 (a) | 490 | 517 | |
7% 3/15/24 (a) | 3,215 | 3,336 | |
Vizient, Inc. 6.25% 5/15/27 (a) | 450 | 473 | |
81,828 | |||
Homebuilders/Real Estate - 0.8% | |||
Alliant Holdings Intermediate LLC 6.75% 10/15/27 (a) | 805 | 803 | |
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 4.875% 2/15/30 (a) | 1,080 | 887 | |
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: | |||
5.75% 1/15/28 (a) | 2,100 | 1,901 | |
5.875% 6/15/27 (a) | 1,490 | 1,371 | |
Uniti Group, Inc. 7.875% 2/15/25 (a) | 2,455 | 2,363 | |
VICI Properties, Inc.: | |||
4.25% 12/1/26 (a) | 3,015 | 2,818 | |
4.625% 12/1/29 (a) | 1,720 | 1,589 | |
11,732 | |||
Hotels - 0.4% | |||
Hilton Domestic Operating Co., Inc.: | |||
4.875% 1/15/30 | 1,180 | 1,130 | |
5.125% 5/1/26 | 4,570 | 4,512 | |
5,642 | |||
Insurance - 0.6% | |||
Acrisure LLC / Acrisure Finance, Inc.: | |||
7% 11/15/25 (a) | 5,150 | 4,558 | |
8.125% 2/15/24 (a) | 1,955 | 2,014 | |
HUB International Ltd. 7% 5/1/26 (a) | 1,750 | 1,726 | |
8,298 | |||
Leisure - 0.8% | |||
Carnival Corp. 11.5% 4/1/23 (a) | 4,510 | 4,712 | |
Studio City Co. Ltd. 7.25% 11/30/21 (a) | 3,645 | 3,597 | |
Vail Resorts, Inc. 6.25% 5/15/25 (a) | 850 | 878 | |
Voc Escrow Ltd. 5% 2/15/28 (a) | 1,625 | 1,277 | |
10,464 | |||
Metals/Mining - 1.2% | |||
Alpha Natural Resources, Inc. 9.75% 4/15/18 (c)(d) | 1,770 | 0 | |
Compass Minerals International, Inc. 6.75% 12/1/27 (a) | 3,450 | 3,416 | |
First Quantum Minerals Ltd.: | |||
6.5% 3/1/24 (a) | 2,020 | 1,757 | |
6.875% 3/1/26 (a) | 2,020 | 1,747 | |
7.25% 4/1/23 (a) | 485 | 435 | |
7.5% 4/1/25 (a) | 3,910 | 3,408 | |
FMG Resources (August 2006) Pty Ltd.: | |||
4.75% 5/15/22 (a) | 1,330 | 1,336 | |
5.125% 3/15/23 (a) | 1,920 | 1,938 | |
Howmet Aerospace, Inc. 6.875% 5/1/25 | 1,480 | 1,509 | |
Kaiser Aluminum Corp. 4.625% 3/1/28 (a) | 1,575 | 1,466 | |
17,012 | |||
Restaurants - 0.8% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc.: | |||
4.375% 1/15/28 (a) | 1,805 | 1,745 | |
5% 10/15/25 (a) | 3,545 | 3,563 | |
Golden Nugget, Inc.: | |||
6.75% 10/15/24 (a) | 3,340 | 2,605 | |
8.75% 10/1/25 (a) | 1,630 | 913 | |
KFC Holding Co./Pizza Hut Holding LLC 4.75% 6/1/27 (a) | 1,530 | 1,579 | |
Yum! Brands, Inc.: | |||
4.75% 1/15/30 (a) | 400 | 408 | |
7.75% 4/1/25 (a) | 525 | 572 | |
11,385 | |||
Services - 0.7% | |||
ASGN, Inc. 4.625% 5/15/28 (a) | 1,350 | 1,245 | |
CDK Global, Inc.: | |||
5.25% 5/15/29 (a) | 870 | 887 | |
5.875% 6/15/26 | 670 | 702 | |
GEMS MENASA Cayman Ltd. 7.125% 7/31/26 (a) | 1,360 | 1,248 | |
Tempo Acquisition LLC 6.75% 6/1/25 (a) | 1,380 | 1,339 | |
The GEO Group, Inc.: | |||
5.125% 4/1/23 | 1,365 | 1,143 | |
5.875% 10/15/24 | 882 | 697 | |
6% 4/15/26 | 1,360 | 1,030 | |
United Rentals North America, Inc. 3.875% 11/15/27 | 795 | 777 | |
9,068 | |||
Steel - 0.3% | |||
Big River Steel LLC/BRS Finance Corp. 7.25% 9/1/25 (a) | 1,495 | 1,402 | |
Cleveland-Cliffs, Inc. 5.75% 3/1/25 | 1,312 | 938 | |
Infrabuild Australia Pty Ltd. 12% 10/1/24 (a) | 1,550 | 1,318 | |
3,658 | |||
Super Retail - 0.1% | |||
Asbury Automotive Group, Inc.: | |||
4.5% 3/1/28 (a) | 492 | 413 | |
4.75% 3/1/30 (a) | 489 | 410 | |
Burlington Coat Factory Warehouse Corp. 6.25% 4/15/25 (a) | 450 | 458 | |
1,281 | |||
Technology - 3.1% | |||
Banff Merger Sub, Inc. 9.75% 9/1/26 (a) | 3,355 | 3,011 | |
Camelot Finance SA 4.5% 11/1/26 (a) | 1,515 | 1,526 | |
CDW LLC/CDW Finance Corp. 4.25% 4/1/28 | 2,070 | 2,080 | |
Ensemble S Merger Sub, Inc. 9% 9/30/23 (a) | 5,375 | 5,384 | |
Entegris, Inc. 4.625% 2/10/26 (a) | 2,080 | 2,085 | |
Fair Isaac Corp. 4% 6/15/28 (a) | 1,530 | 1,519 | |
Go Daddy Operating Co. LLC / GD Finance Co., Inc. 5.25% 12/1/27 (a) | 1,495 | 1,536 | |
j2 Cloud Services LLC/j2 Global Communications, Inc. 6% 7/15/25 (a) | 1,320 | 1,333 | |
Match Group, Inc.: | |||
5% 12/15/27 (a) | 1,485 | 1,555 | |
5.625% 2/15/29 (a) | 1,565 | 1,639 | |
NCR Corp. 8.125% 4/15/25 (a) | 645 | 684 | |
Open Text Corp. 3.875% 2/15/28 (a) | 790 | 770 | |
Open Text Holdings, Inc. 4.125% 2/15/30 (a) | 790 | 768 | |
Parametric Technology Corp.: | |||
3.625% 2/15/25 (a) | 925 | 911 | |
4% 2/15/28 (a) | 915 | 897 | |
Qorvo, Inc. 5.5% 7/15/26 | 2,125 | 2,231 | |
TTM Technologies, Inc. 5.625% 10/1/25 (a) | 640 | 612 | |
Uber Technologies, Inc.: | |||
7.5% 9/15/27 (a) | 4,130 | 4,213 | |
8% 11/1/26 (a) | 4,030 | 4,131 | |
Veritas U.S., Inc./Veritas Bermuda Ltd.: | |||
7.5% 2/1/23 (a) | 980 | 952 | |
10.5% 2/1/24 (a) | 5,360 | 4,784 | |
42,621 | |||
Telecommunications - 6.4% | |||
Altice Financing SA 5% 1/15/28 (a) | 1,580 | 1,541 | |
C&W Senior Financing Designated Activity Co.: | |||
6.875% 9/15/27 (a) | 7,020 | 6,932 | |
7.5% 10/15/26 (a) | 1,620 | 1,620 | |
Equinix, Inc. 5.375% 5/15/27 | 1,575 | 1,701 | |
Front Range BidCo, Inc. 4% 3/1/27 (a) | 2,375 | 2,303 | |
Frontier Communications Corp.: | |||
8% 4/1/27 (a)(c) | 2,720 | 2,774 | |
8.5% 4/1/26 (a)(c) | 6,160 | 5,698 | |
GTT Communications, Inc. 7.875% 12/31/24 (a) | 150 | 90 | |
Intelsat Jackson Holdings SA: | |||
5.5% 8/1/23 | 7,385 | 4,011 | |
8% 2/15/24 (a) | 4,060 | 4,169 | |
8.5% 10/15/24 (a) | 3,665 | 2,126 | |
9.75% 7/15/25 (a) | 1,270 | 718 | |
Neptune Finco Corp. 10.875% 10/15/25 (a) | 5,445 | 5,886 | |
Sable International Finance Ltd. 5.75% 9/7/27 (a) | 4,030 | 4,030 | |
Sabre GLBL, Inc. 9.25% 4/15/25 (a) | 1,130 | 1,194 | |
SBA Communications Corp. 3.875% 2/15/27 (a) | 2,375 | 2,425 | |
SFR Group SA: | |||
5.5% 1/15/28 (a) | 3,370 | 3,394 | |
7.375% 5/1/26 (a) | 3,270 | 3,417 | |
8.125% 2/1/27 (a) | 7,435 | 8,011 | |
Sprint Capital Corp.: | |||
6.875% 11/15/28 | 10,985 | 13,230 | |
8.75% 3/15/32 | 8,870 | 12,462 | |
Sprint Corp. 7.625% 3/1/26 | 490 | 579 | |
88,311 | |||
Transportation Ex Air/Rail - 0.7% | |||
Avolon Holdings Funding Ltd.: | |||
3.95% 7/1/24 (a) | 7 | 6 | |
4.375% 5/1/26 (a) | 5 | 4 | |
5.125% 10/1/23 (a) | 4,115 | 3,681 | |
5.25% 5/15/24 (a) | 3,215 | 2,788 | |
5.5% 1/15/23 (a) | 3,665 | 3,367 | |
9,846 | |||
Utilities - 6.2% | |||
Clearway Energy Operating LLC: | |||
4.75% 3/15/28 (a) | 970 | 987 | |
5.75% 10/15/25 | 2,135 | 2,199 | |
DCP Midstream Operating LP 5.125% 5/15/29 | 2,785 | 2,074 | |
InterGen NV 7% 6/30/23 (a) | 17,477 | 15,511 | |
NextEra Energy Partners LP: | |||
4.25% 9/15/24 (a) | 1,265 | 1,284 | |
4.5% 9/15/27 (a) | 880 | 903 | |
NRG Energy, Inc.: | |||
5.25% 6/15/29 (a) | 1,615 | 1,730 | |
5.75% 1/15/28 | 2,590 | 2,784 | |
Pacific Gas & Electric Co.: | |||
3.5% 10/1/20 (c) | 800 | 818 | |
3.75% 8/15/42 (c) | 640 | 626 | |
3.95% 12/1/47 (c) | 3,240 | 3,167 | |
4% 12/1/46 (c) | 3,350 | 3,340 | |
5.8% 3/1/37 (c) | 5,745 | 6,434 | |
6.05% 3/1/34 (c) | 21,535 | 24,227 | |
Pattern Energy Group, Inc. 5.875% 2/1/24 (a) | 495 | 500 | |
TerraForm Global, Inc. 6.125% 3/1/26 (a) | 3,110 | 3,079 | |
The AES Corp.: | |||
4% 3/15/21 | 3,920 | 3,920 | |
4.5% 3/15/23 | 2,590 | 2,584 | |
5.125% 9/1/27 | 1,500 | 1,564 | |
Vistra Operations Co. LLC: | |||
5% 7/31/27 (a) | 3,565 | 3,636 | |
5.5% 9/1/26 (a) | 522 | 537 | |
5.625% 2/15/27 (a) | 4,435 | 4,668 | |
86,572 | |||
TOTAL NONCONVERTIBLE BONDS | 862,932 | ||
TOTAL CORPORATE BONDS | |||
(Cost $970,413) | 863,686 | ||
Shares | Value (000s) | ||
Common Stocks - 19.9% | |||
Air Transportation - 0.5% | |||
Air Canada (g) | 437,300 | 6,359 | |
Automotive & Auto Parts - 0.5% | |||
Allison Transmission Holdings, Inc. | 59,200 | 2,151 | |
Motors Liquidation Co. GUC Trust (g) | 39,832 | 419 | |
Tesla, Inc. (g) | 5,400 | 4,222 | |
UC Holdings, Inc. (d)(g) | 29,835 | 743 | |
TOTAL AUTOMOTIVE & AUTO PARTS | 7,535 | ||
Banks & Thrifts - 0.4% | |||
Bank of America Corp. | 122,200 | 2,939 | |
JPMorgan Chase & Co. | 30,200 | 2,892 | |
WMI Holdings Corp. (g) | 1,504 | 14 | |
TOTAL BANKS & THRIFTS | 5,845 | ||
Broadcasting - 0.4% | |||
Gray Television, Inc. (g) | 133,870 | 1,554 | |
Nexstar Broadcasting Group, Inc. Class A | 53,000 | 3,712 | |
TOTAL BROADCASTING | 5,266 | ||
Building Materials - 0.2% | |||
Carrier Global Corp. (g) | 152,600 | 2,703 | |
Cable/Satellite TV - 0.5% | |||
Altice U.S.A., Inc. Class A (g) | 252,200 | 6,550 | |
Capital Goods - 1.3% | |||
Fortive Corp. | 56,400 | 3,610 | |
Thermo Fisher Scientific, Inc. | 18,400 | 6,158 | |
Zebra Technologies Corp. Class A (g) | 37,000 | 8,497 | |
TOTAL CAPITAL GOODS | 18,265 | ||
Chemicals - 0.2% | |||
CF Industries Holdings, Inc. | 95,800 | 2,635 | |
Consumer Products - 0.2% | |||
Tempur Sealy International, Inc. (g) | 41,000 | 2,204 | |
Containers - 0.2% | |||
Berry Global Group, Inc. (g) | 53,200 | 2,117 | |
Diversified Financial Services - 0.9% | |||
American Express Co. | 29,200 | 2,665 | |
MasterCard, Inc. Class A | 27,500 | 7,562 | |
OneMain Holdings, Inc. | 120,200 | 2,910 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 13,137 | ||
Energy - 0.1% | |||
Forbes Energy Services Ltd. (g) | 65,062 | 6 | |
MEG Energy Corp. (g) | 376,900 | 842 | |
Tidewater, Inc.: | |||
warrants 11/14/42 (g) | 36,326 | 231 | |
warrants 11/14/42 (g) | 12,651 | 80 | |
Tribune Resources, Inc. (d)(g) | 175,172 | 557 | |
Tribune Resources, Inc. warrants 3/30/23 (d)(g) | 49,910 | 25 | |
Ultra Petroleum Corp. warrants 7/14/25 (g) | 39,270 | 0 | |
TOTAL ENERGY | 1,741 | ||
Food & Drug Retail - 0.3% | |||
Southeastern Grocers, Inc. (d)(g) | 57,894 | 2,348 | |
Tops Markets Corp. (d)(g) | 4,395 | 1,545 | |
Tops Markets Corp. (Escrow) (d)(g)(h) | 4,395,000 | 0 | |
TOTAL FOOD & DRUG RETAIL | 3,893 | ||
Food/Beverage/Tobacco - 0.8% | |||
Darling International, Inc. (g) | 133,200 | 2,743 | |
JBS SA | 1,939,300 | 8,502 | |
TOTAL FOOD/BEVERAGE/TOBACCO | 11,245 | ||
Gaming - 1.1% | |||
Boyd Gaming Corp. | 177,200 | 2,957 | |
Eldorado Resorts, Inc. (g) | 183,800 | 3,941 | |
MGM Mirage, Inc. | 86,400 | 1,454 | |
Penn National Gaming, Inc. (g) | 343,900 | 6,128 | |
Studio City International Holdings Ltd. ADR (g) | 35,600 | 619 | |
TOTAL GAMING | 15,099 | ||
Healthcare - 2.3% | |||
Bausch Health Cos., Inc. (Canada) (g) | 61,500 | 1,111 | |
Bristol-Myers Squibb Co. | 43,000 | 2,615 | |
Charles River Laboratories International, Inc. (g) | 26,800 | 3,877 | |
Cigna Corp. | 22,900 | 4,483 | |
HCA Holdings, Inc. | 47,100 | 5,175 | |
Humana, Inc. | 13,300 | 5,078 | |
IQVIA Holdings, Inc. (g) | 22,900 | 3,265 | |
Jazz Pharmaceuticals PLC (g) | 19,947 | 2,199 | |
UnitedHealth Group, Inc. | 15,700 | 4,592 | |
TOTAL HEALTHCARE | 32,395 | ||
Metals/Mining - 0.1% | |||
First Quantum Minerals Ltd. | 203,300 | 1,241 | |
Warrior Metropolitan Coal, Inc. | 692 | 9 | |
TOTAL METALS/MINING | 1,250 | ||
Services - 1.4% | |||
ASGN, Inc. (g) | 25,300 | 1,175 | |
CDK Global, Inc. | 56,258 | 2,210 | |
HD Supply Holdings, Inc. (g) | 128,500 | 3,814 | |
United Rentals, Inc. (g) | 36,900 | 4,742 | |
Visa, Inc. Class A | 44,400 | 7,935 | |
TOTAL SERVICES | 19,876 | ||
Super Retail - 0.2% | |||
Amazon.com, Inc. (g) | 1,000 | 2,474 | |
Arena Brands Holding Corp. Class B (d)(g)(h) | 42,253 | 99 | |
TOTAL SUPER RETAIL | 2,573 | ||
Technology - 6.2% | |||
Adobe, Inc. (g) | 30,900 | 10,927 | |
Alphabet, Inc. Class A (g) | 6,500 | 8,754 | |
CDW Corp. | 21,200 | 2,349 | |
EPAM Systems, Inc. (g) | 30,600 | 6,759 | |
Facebook, Inc. Class A (g) | 37,794 | 7,737 | |
Fiserv, Inc. (g) | 37,178 | 3,832 | |
Global Payments, Inc. | 49,100 | 8,152 | |
GoDaddy, Inc. (g) | 38,800 | 2,694 | |
Lam Research Corp. | 18,500 | 4,723 | |
Microchip Technology, Inc. (i) | 72,900 | 6,396 | |
Microsoft Corp. | 55,300 | 9,910 | |
ON Semiconductor Corp. (g) | 189,400 | 3,039 | |
PayPal Holdings, Inc. (g) | 33,400 | 4,108 | |
Salesforce.com, Inc. (g) | 8,900 | 1,441 | |
SS&C Technologies Holdings, Inc. | 49,100 | 2,708 | |
VMware, Inc. Class A (g)(i) | 22,500 | 2,959 | |
TOTAL TECHNOLOGY | 86,488 | ||
Telecommunications - 0.7% | |||
Palo Alto Networks, Inc. (g) | 16,500 | 3,242 | |
T-Mobile U.S., Inc. (g) | 79,300 | 6,963 | |
TOTAL TELECOMMUNICATIONS | 10,205 | ||
Utilities - 1.4% | |||
NRG Energy, Inc. | 217,600 | 7,296 | |
PG&E Corp. (g) | 230,700 | 2,455 | |
Vistra Energy Corp. | 475,789 | 9,297 | |
TOTAL UTILITIES | 19,048 | ||
TOTAL COMMON STOCKS | |||
(Cost $258,963) | 276,429 | ||
Principal Amount (000s) | Value (000s) | ||
Bank Loan Obligations - 6.0% | |||
Aerospace - 0.0% | |||
Arconic Rolled Products Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.24% 3/25/27 (e)(f)(j) | 205 | 203 | |
Air Transportation - 0.0% | |||
Dynasty Acquisition Co., Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.9501% 4/8/26 (e)(f)(j) | 201 | 175 | |
Tranche B2 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.9501% 4/8/26 (e)(f)(j) | 108 | 94 | |
TOTAL AIR TRANSPORTATION | 269 | ||
Banks & Thrifts - 0.0% | |||
Citadel Securities LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.1536% 2/27/26 (e)(f)(j) | 95 | 90 | |
Building Materials - 0.0% | |||
ACProducts, Inc. 1LN, term loan 3 month U.S. LIBOR + 6.500% 8.1916% 8/13/25 (e)(f)(j) | 655 | 582 | |
Cable/Satellite TV - 0.4% | |||
LCPR Loan Financing LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.814% 10/22/26 (e)(f)(j) | 305 | 298 | |
WideOpenWest Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.25% 8/19/23 (e)(f)(j) | 5,559 | 5,147 | |
TOTAL CABLE/SATELLITE TV | 5,445 | ||
Chemicals - 0.4% | |||
Messer Industries U.S.A., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.9501% 3/1/26 (e)(f)(j) | 6,351 | 5,990 | |
Diversified Financial Services - 0.1% | |||
RPI 2019 Intermediate Finance Trust Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 2/11/27 (e)(f)(j) | 1,162 | 1,126 | |
RPI Intermediate Finance Trust Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 2.1536% 2/11/27 (e)(f)(j) | 834 | 810 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 1,936 | ||
Energy - 1.5% | |||
Ascent Resources Marcellus LLC term loan 3 month U.S. LIBOR + 6.500% 7.5% 3/30/23 (e)(f)(j) | 107 | 89 | |
BCP Raptor II LLC Tranche B, term loan 3 month U.S. LIBOR + 4.750% 5.1536% 11/3/25 (e)(f)(j) | 938 | 437 | |
California Resources Corp.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 10.375% 11.9883% 12/31/21 (e)(f)(j) | 14,365 | 512 | |
Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.3633% 12/31/22 (e)(f)(j) | 17,485 | 3,837 | |
Chesapeake Energy Corp. term loan 3 month U.S. LIBOR + 8.000% 9% 6/9/24 (e)(f)(j) | 12,045 | 4,256 | |
Citgo Holding, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 7.000% 8% 8/1/23 (e)(f)(j) | 219 | 181 | |
Citgo Petroleum Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6% 3/28/24 (e)(f)(j) | 4,079 | 3,589 | |
EG America LLC 2LN, term loan 3 month U.S. LIBOR + 8.000% 9.072% 3/23/26 (e)(f)(j) | 810 | 603 | |
Epic Crude Services LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6.62% 3/1/26 (e)(f)(j) | 6,520 | 3,892 | |
Forbes Energy Services LLC Tranche B, term loan 18% 4/13/21 (d)(e)(j) | 669 | 674 | |
Gavilan Resources LLC Tranche 2LN, term loan 3 month U.S. LIBOR + 6.000% 6.9894% 3/1/24 (e)(f)(j) | 5,790 | 492 | |
Natgasoline LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.3125% 11/14/25 (e)(f)(j) | 341 | 307 | |
Sanchez Energy Corp.: | |||
1LN, term loan 3 month U.S. LIBOR + 8.000% 0% 5/11/20(c)(d)(f)(j) | 1,671 | 1,336 | |
term loan 7.25% 5/11/20(c)(d)(e)(j) | 721 | 577 | |
TOTAL ENERGY | 20,782 | ||
Entertainment/Film - 0.1% | |||
Allen Media LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.500% 7.2309% 2/10/27 (e)(f)(j) | 1,190 | 1,071 | |
Food & Drug Retail - 0.1% | |||
Tops Markets LLC 1LN, term loan 3 month U.S. LIBOR + 8.500% 10% 11/19/23 (d)(e)(f)(j) | 1,763 | 1,772 | |
Healthcare - 0.7% | |||
U.S. Renal Care, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.4375% 6/13/26 (e)(f)(j) | 9,751 | 9,193 | |
Insurance - 0.1% | |||
Alliant Holdings Intermediate LLC Tranche B-2 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.9683% 5/9/25 (e)(f)(j) | 1,672 | 1,567 | |
Services - 1.5% | |||
Almonde, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.5% 6/13/24 (e)(f)(j) | 9,324 | 8,063 | |
KUEHG Corp.: | |||
Tranche B 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.7001% 8/22/25 (e)(f)(j) | 2,615 | 1,961 | |
Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.2001% 2/21/25 (e)(f)(j) | 781 | 627 | |
Maverick Purchaser Sub LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.4036% 1/23/27 (e)(f)(j) | 310 | 295 | |
Sabert Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 12/10/26 (e)(f)(j) | 1,152 | 1,089 | |
Spin Holdco, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.25% 11/14/22 (e)(f)(j) | 9,334 | 8,531 | |
TOTAL SERVICES | 20,566 | ||
Technology - 0.2% | |||
Camelot Finance SA Tranche B, term loan 3 month U.S. LIBOR + 3.250% 3.6536% 10/31/26 (e)(f)(j) | 165 | 157 | |
Curie Merger Sub LLC 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.7001% 11/4/26 (e)(f)(j) | 85 | 81 | |
Kronos, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.7633% 11/1/23 (e)(f)(j) | 2,084 | 2,010 | |
VS Buyer LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.8633% 2/19/27 (e)(f)(j) | 325 | 306 | |
Web.com Group, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 7.750% 8.9451% 10/11/26 (e)(f)(j) | 473 | 376 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.9451% 10/11/25 (e)(f)(j) | 332 | 295 | |
TOTAL TECHNOLOGY | 3,225 | ||
Telecommunications - 0.5% | |||
GTT Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.74% 5/31/25 (e)(f)(j) | 1,306 | 943 | |
SFR Group SA Tranche B 12LN, term loan 3 month U.S. LIBOR + 3.680% 4.5015% 1/31/26 (e)(f)(j) | 4,724 | 4,350 | |
Zayo Group Holdings, Inc. 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.4036% 3/9/27 (e)(f)(j) | 1,215 | 1,139 | |
TOTAL TELECOMMUNICATIONS | 6,432 | ||
Utilities - 0.4% | |||
Pike Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.25% 7/24/26 (e)(f)(j) | 340 | 326 | |
Vertiv Group Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.9929% 3/2/27 (e)(f)(j) | 4,750 | 4,453 | |
TOTAL UTILITIES | 4,779 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $127,630) | 83,902 | ||
Preferred Securities - 8.6% | |||
Banks & Thrifts - 7.8% | |||
Bank of America Corp.: | |||
5.125% (e)(k) | 12,000 | 12,014 | |
5.875% (e)(k) | 14,280 | 14,673 | |
6.1% (e)(k) | 2,590 | 2,761 | |
Citigroup, Inc.: | |||
4.7% (e)(k) | 2,135 | 1,885 | |
5% (e)(k) | 13,000 | 11,909 | |
5.35% (e)(k) | 12,655 | 11,892 | |
6.3% (e)(k) | 4,585 | 4,661 | |
Goldman Sachs Group, Inc.: | |||
4.4% (e)(k) | 1,120 | 1,007 | |
4.95% (e)(k) | 1,880 | 1,791 | |
5.3% (e)(k) | 15,000 | 15,640 | |
JPMorgan Chase & Co.: | |||
4% (e)(k) | 4,755 | 4,172 | |
4.6% (e)(k) | 3,265 | 2,969 | |
5% (e)(k) | 24,800 | 23,374 | |
TOTAL BANKS & THRIFTS | 108,748 | ||
Diversified Financial Services - 0.2% | |||
AerCap Holdings NV 5.875% 10/10/79 (e) | 4,820 | 3,234 | |
Energy - 0.6% | |||
Energy Transfer Partners LP 7.125% (e) | 10,000 | 8,165 | |
TOTAL PREFERRED SECURITIES | |||
(Cost $130,140) | 120,147 | ||
Shares | Value (000s) | ||
Money Market Funds - 3.1% | |||
Fidelity Cash Central Fund 0.16% (l) | 32,847,965 | 32,858 | |
Fidelity Securities Lending Cash Central Fund 0.11% (l)(m) | 9,945,420 | 9,946 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $42,801) | 42,804 | ||
TOTAL INVESTMENT IN SECURITIES - 99.7% | |||
(Cost $1,529,947) | 1,386,968 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 4,055 | ||
NET ASSETS - 100% | $1,391,023 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) 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 $578,975,000 or 41.6% of net assets.
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(c) Non-income producing - Security is in default.
(d) Level 3 security
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(f) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(g) Non-income producing
(h) Restricted securities (including private placements) - 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 $99,000 or 0.0% of net assets.
(i) Security or a portion of the security is on loan at period end.
(j) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(k) Security is perpetual in nature with no stated maturity date.
(l) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(m) 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) |
Arena Brands Holding Corp. Class B | 6/18/97 - 7/13/98 | $1,538 |
Tops Markets Corp. (Escrow) | 11/16/18 | $0 |
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 | $857 |
Fidelity Securities Lending Cash Central Fund | 1 |
Total | $858 |
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 April 30, 2020, 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 | $35,270 | $35,270 | $-- | $-- |
Consumer Discretionary | 24,841 | 23,999 | -- | 842 |
Consumer Staples | 15,138 | 11,245 | -- | 3,893 |
Energy | 1,741 | 1,159 | -- | 582 |
Financials | 11,839 | 11,839 | -- | -- |
Health Care | 38,553 | 38,553 | -- | -- |
Industrials | 24,554 | 24,554 | -- | -- |
Information Technology | 99,443 | 99,443 | -- | -- |
Materials | 6,002 | 6,002 | -- | -- |
Utilities | 19,048 | 19,048 | -- | -- |
Corporate Bonds | 863,686 | -- | 863,686 | -- |
Bank Loan Obligations | 83,902 | -- | 79,543 | 4,359 |
Preferred Securities | 120,147 | -- | 120,147 | -- |
Money Market Funds | 42,804 | 42,804 | -- | -- |
Total Investments in Securities: | $1,386,968 | $313,916 | $1,063,376 | $9,676 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 81.9% |
Netherlands | 3.1% |
Cayman Islands | 2.9% |
Canada | 2.8% |
Multi-National | 2.6% |
Luxembourg | 2.3% |
France | 1.3% |
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) | April 30, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $9,333) — See accompanying schedule: Unaffiliated issuers (cost $1,487,146) | $1,344,164 | |
Fidelity Central Funds (cost $42,801) | 42,804 | |
Total Investment in Securities (cost $1,529,947) | $1,386,968 | |
Receivable for investments sold | 6,033 | |
Receivable for fund shares sold | 1,448 | |
Dividends receivable | 302 | |
Interest receivable | 16,926 | |
Distributions receivable from Fidelity Central Funds | 8 | |
Prepaid expenses | 1 | |
Other receivables | 43 | |
Total assets | 1,411,729 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $5,252 | |
Delayed delivery | 900 | |
Payable for fund shares redeemed | 2,974 | |
Distributions payable | 484 | |
Accrued management fee | 623 | |
Distribution and service plan fees payable | 199 | |
Other affiliated payables | 206 | |
Other payables and accrued expenses | 121 | |
Collateral on securities loaned | 9,947 | |
Total liabilities | 20,706 | |
Net Assets | $1,391,023 | |
Net Assets consist of: | ||
Paid in capital | $1,528,793 | |
Total accumulated earnings (loss) | (137,770) | |
Net Assets | $1,391,023 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($425,098 ÷ 43,052 shares)(a) | $9.87 | |
Maximum offering price per share (100/96.00 of $9.87) | $10.28 | |
Class M: | ||
Net Asset Value and redemption price per share ($266,645 ÷ 26,853 shares)(a) | $9.93 | |
Maximum offering price per share (100/96.00 of $9.93) | $10.34 | |
Class C: | ||
Net Asset Value and offering price per share ($72,632 ÷ 7,369 shares)(a) | $9.86 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($486,083 ÷ 52,570 shares) | $9.25 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($140,565 ÷ 15,200 shares) | $9.25 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended April 30, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $4,359 | |
Interest | 34,540 | |
Income from Fidelity Central Funds (including $1 from security lending) | 858 | |
Total income | 39,757 | |
Expenses | ||
Management fee | $4,446 | |
Transfer agent fees | 1,122 | |
Distribution and service plan fees | 1,427 | |
Accounting fees | 271 | |
Custodian fees and expenses | 15 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 67 | |
Audit | 43 | |
Legal | (78) | |
Miscellaneous | 46 | |
Total expenses before reductions | 7,364 | |
Expense reductions | (44) | |
Total expenses after reductions | 7,320 | |
Net investment income (loss) | 32,437 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 7,277 | |
Fidelity Central Funds | 8 | |
Foreign currency transactions | (14) | |
Total net realized gain (loss) | 7,271 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (195,643) | |
Fidelity Central Funds | 3 | |
Assets and liabilities in foreign currencies | (3) | |
Total change in net unrealized appreciation (depreciation) | (195,643) | |
Net gain (loss) | (188,372) | |
Net increase (decrease) in net assets resulting from operations | $(155,935) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2020 (Unaudited) | Year ended October 31, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $32,437 | $85,768 |
Net realized gain (loss) | 7,271 | (12,433) |
Change in net unrealized appreciation (depreciation) | (195,643) | 52,177 |
Net increase (decrease) in net assets resulting from operations | (155,935) | 125,512 |
Distributions to shareholders | (35,878) | (97,603) |
Share transactions - net increase (decrease) | (98,939) | (181,460) |
Total increase (decrease) in net assets | (290,752) | (153,551) |
Net Assets | ||
Beginning of period | 1,681,775 | 1,835,326 |
End of period | $1,391,023 | $1,681,775 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor High Income Advantage Fund Class A
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.12 | $10.93 | $11.41 | $10.57 | $10.43 | $10.88 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .213 | .517 | .606 | .525 | .501 | .498 |
Net realized and unrealized gain (loss) | (1.228) | .260 | (.543) | .796 | .123 | (.489) |
Total from investment operations | (1.015) | .777 | .063 | 1.321 | .624 | .009 |
Distributions from net investment income | (.229) | (.587) | (.543) | (.482) | (.485) | (.451) |
Distributions from net realized gain | (.006) | – | – | – | – | (.010) |
Total distributions | (.235) | (.587) | (.543) | (.482) | (.485) | (.461) |
Redemption fees added to paid in capitalA | – | – | –B | .001 | .001 | .002 |
Net asset value, end of period | $9.87 | $11.12 | $10.93 | $11.41 | $10.57 | $10.43 |
Total ReturnC,D,E | (9.29)% | 7.41% | .50% | 12.75% | 6.30% | .06% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.00%H | 1.01% | .99% | 1.02% | 1.04% | 1.02% |
Expenses net of fee waivers, if any | 1.00%H | 1.00% | .99% | 1.01% | 1.03% | 1.02% |
Expenses net of all reductions | 1.00%H | 1.00% | .99% | 1.01% | 1.03% | 1.02% |
Net investment income (loss) | 3.96%H | 4.70% | 5.35% | 4.75% | 4.94% | 4.62% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $425 | $515 | $467 | $507 | $593 | $636 |
Portfolio turnover rateI | 49%H | 53% | 45% | 49% | 46% | 42% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor High Income Advantage Fund Class M
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.18 | $10.99 | $11.47 | $10.63 | $10.49 | $10.93 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .215 | .521 | .611 | .529 | .505 | .501 |
Net realized and unrealized gain (loss) | (1.229) | .259 | (.545) | .795 | .123 | (.479) |
Total from investment operations | (1.014) | .780 | .066 | 1.324 | .628 | .022 |
Distributions from net investment income | (.230) | (.590) | (.546) | (.485) | (.489) | (.454) |
Distributions from net realized gain | (.006) | – | – | – | – | (.010) |
Total distributions | (.236) | (.590) | (.546) | (.485) | (.489) | (.464) |
Redemption fees added to paid in capitalA | – | – | –B | .001 | .001 | .002 |
Net asset value, end of period | $9.93 | $11.18 | $10.99 | $11.47 | $10.63 | $10.49 |
Total ReturnC,D,E | (9.22)% | 7.39% | .53% | 12.71% | 6.30% | .18% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.00%H | 1.00% | .98% | 1.01% | 1.03% | 1.02% |
Expenses net of fee waivers, if any | 1.00%H | 1.00% | .98% | 1.01% | 1.03% | 1.02% |
Expenses net of all reductions | .99%H | 1.00% | .98% | 1.01% | 1.03% | 1.02% |
Net investment income (loss) | 3.96%H | 4.71% | 5.36% | 4.76% | 4.95% | 4.63% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $267 | $329 | $337 | $382 | $409 | $445 |
Portfolio turnover rateI | 49%H | 53% | 45% | 49% | 46% | 42% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor High Income Advantage Fund Class C
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.10 | $10.91 | $11.39 | $10.55 | $10.41 | $10.86 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .171 | .434 | .520 | .440 | .424 | .415 |
Net realized and unrealized gain (loss) | (1.218) | .258 | (.543) | .796 | .122 | (.488) |
Total from investment operations | (1.047) | .692 | (.023) | 1.236 | .546 | (.073) |
Distributions from net investment income | (.187) | (.502) | (.457) | (.397) | (.407) | (.369) |
Distributions from net realized gain | (.006) | – | – | – | – | (.010) |
Total distributions | (.193) | (.502) | (.457) | (.397) | (.407) | (.379) |
Redemption fees added to paid in capitalA | – | – | –B | .001 | .001 | .002 |
Net asset value, end of period | $9.86 | $11.10 | $10.91 | $11.39 | $10.55 | $10.41 |
Total ReturnC,D,E | (9.56)% | 6.60% | (.26)% | 11.92% | 5.51% | (.70)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.78%H | 1.77% | 1.75% | 1.78% | 1.79% | 1.78% |
Expenses net of fee waivers, if any | 1.77%H | 1.77% | 1.75% | 1.77% | 1.79% | 1.78% |
Expenses net of all reductions | 1.77%H | 1.76% | 1.75% | 1.77% | 1.79% | 1.78% |
Net investment income (loss) | 3.19%H | 3.94% | 4.59% | 3.99% | 4.18% | 3.86% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $73 | $89 | $130 | $156 | $163 | $171 |
Portfolio turnover rateI | 49%H | 53% | 45% | 49% | 46% | 42% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor High Income Advantage Fund Class I
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $10.42 | $10.25 | $10.70 | $9.91 | $9.78 | $10.20 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .213 | .512 | .590 | .517 | .493 | .488 |
Net realized and unrealized gain (loss) | (1.148) | .241 | (.499) | .750 | .113 | (.455) |
Total from investment operations | (.935) | .753 | .091 | 1.267 | .606 | .033 |
Distributions from net investment income | (.229) | (.583) | (.541) | (.478) | (.477) | (.445) |
Distributions from net realized gain | (.006) | – | – | – | – | (.010) |
Total distributions | (.235) | (.583) | (.541) | (.478) | (.477) | (.455) |
Redemption fees added to paid in capitalA | – | – | –B | .001 | .001 | .002 |
Net asset value, end of period | $9.25 | $10.42 | $10.25 | $10.70 | $9.91 | $9.78 |
Total ReturnC,D | (9.14)% | 7.67% | .80% | 13.06% | 6.54% | .31% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .75%G | .76% | .75% | .77% | .80% | .80% |
Expenses net of fee waivers, if any | .74%G | .76% | .75% | .77% | .80% | .80% |
Expenses net of all reductions | .74%G | .76% | .75% | .77% | .80% | .80% |
Net investment income (loss) | 4.22%G | 4.95% | 5.57% | 5.00% | 5.17% | 4.84% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $486 | $612 | $883 | $811 | $755 | $760 |
Portfolio turnover rateH | 49%G | 53% | 45% | 49% | 46% | 42% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor High Income Advantage Fund Class Z
Six months ended (Unaudited) April 30, | Years endedOctober 31, | ||
2020 | 2019 | 2018 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $10.42 | $10.25 | $10.69 |
Income from Investment Operations | |||
Net investment income (loss)B | .217 | .516 | .034 |
Net realized and unrealized gain (loss) | (1.147) | .248 | (.438) |
Total from investment operations | (.930) | .764 | (.404) |
Distributions from net investment income | (.234) | (.594) | (.036) |
Distributions from net realized gain | (.006) | – | – |
Total distributions | (.240) | (.594) | (.036) |
Net asset value, end of period | $9.25 | $10.42 | $10.25 |
Total ReturnC,D | (9.09)% | 7.79% | (3.78)% |
Ratios to Average Net AssetsE,F | |||
Expenses before reductions | .65%G | .65% | .63%G |
Expenses net of fee waivers, if any | .65%G | .65% | .63%G |
Expenses net of all reductions | .65%G | .65% | .63%G |
Net investment income (loss) | 4.31%G | 5.06% | 5.46%G |
Supplemental Data | |||
Net assets, end of period (in millions) | $141 | $137 | $18 |
Portfolio turnover rateH | 49%G | 53% | 45% |
A For the period October 2, 2018 (commencement of sale of shares) to October 31, 2018.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor High Income Advantage 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. 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.
Effective January 1, 2020:
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. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 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 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:
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, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
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 April 30, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $28 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. 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 daily and paid monthly from net investment income. Distributions from realized gains, if any, 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.
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, equity-debt classifications, deferred trustees compensation, capital loss carryforwards, partnerships, defaulted bonds 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 | $66,660 |
Gross unrealized depreciation | (201,666) |
Net unrealized appreciation (depreciation) | $(135,006) |
Tax cost | $1,521,974 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(11,866) |
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. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor High Income Advantage Fund | 359,487 | 358,411 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .10% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Company LLC (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% | $612 | $19 |
Class M | -% | .25% | 387 | 8 |
Class C | .75% | .25% | 428 | 105 |
$1,427 | $132 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and 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 | $31 |
Class M | 6 |
Class C(a) | 16 |
$53 |
(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 LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $372 | .15 |
Class M | 228 | .15 |
Class C | 72 | .17 |
Class I | 409 | .15 |
Class Z | 41 | .05 |
$1,122 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Advisor High Income Advantage Fund | .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 High Income Advantage Fund | $2 |
Interfund Trades. Funds 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.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Advisor High Income Advantage Fund | $2 |
During the period, there were no borrowings 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 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.
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 $17 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 $11.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $2.
In addition, during the period the investment adviser or an affiliate reimbursed the Fund $14 for an operational error which is included in the accompanying Statement of Operations.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended April 30, 2020 | Year ended October 31, 2019 | |
Distributions to shareholders | ||
Class A | $10,663 | $25,832 |
Class M | 6,731 | 17,699 |
Class C | 1,534 | 5,011 |
Class I | 13,163 | 45,442 |
Class Z | 3,787 | 3,619 |
Total | $35,878 | $97,603 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended April 30, 2020 | Year ended October 31, 2019 | Six months ended April 30, 2020 | Year ended October 31, 2019 | |
Class A | ||||
Shares sold | 3,869 | 13,284 | $42,171 | $146,759 |
Reinvestment of distributions | 904 | 2,177 | 9,732 | 23,539 |
Shares redeemed | (7,987) | (11,934) | (84,416) | (131,037) |
Net increase (decrease) | (3,214) | 3,527 | $(32,513) | $39,261 |
Class M | ||||
Shares sold | 2,043 | 4,243 | $22,208 | $47,099 |
Reinvestment of distributions | 580 | 1,522 | 6,284 | 16,525 |
Shares redeemed | (5,230) | (6,973) | (55,295) | (76,847) |
Net increase (decrease) | (2,607) | (1,208) | $(26,803) | $(13,223) |
Class C | ||||
Shares sold | 1,135 | 2,682 | $12,265 | $29,440 |
Reinvestment of distributions | 133 | 441 | 1,432 | 4,707 |
Shares redeemed | (1,895) | (6,999) | (19,231) | (76,889) |
Net increase (decrease) | (627) | (3,876) | $(5,534) | $(42,742) |
Class I | ||||
Shares sold | 13,487 | 28,794 | $131,089 | $297,138 |
Reinvestment of distributions | 1,161 | 4,006 | 11,719 | 40,475 |
Shares redeemed | (20,808) | (60,237) | (203,620) | (619,902) |
Net increase (decrease) | (6,160) | (27,437) | $(60,812) | $(282,289) |
Class Z | ||||
Shares sold | 6,394 | 14,270 | $67,239 | $147,559 |
Reinvestment of distributions | 273 | 221 | 2,740 | 2,271 |
Shares redeemed | (4,638) | (3,111) | (43,256) | (32,297) |
Net increase (decrease) | 2,029 | 11,380 | $26,723 | $117,533 |
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.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
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 (November 1, 2019 to April 30, 2020).
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 November 1, 2019 | Ending Account Value April 30, 2020 | Expenses Paid During Period-B November 1, 2019 to April 30, 2020 | |
Class A | 1.00% | |||
Actual | $1,000.00 | $907.10 | $4.74 | |
Hypothetical-C | $1,000.00 | $1,019.89 | $5.02 | |
Class M | 1.00% | |||
Actual | $1,000.00 | $907.80 | $4.74 | |
Hypothetical-C | $1,000.00 | $1,019.89 | $5.02 | |
Class C | 1.77% | |||
Actual | $1,000.00 | $904.40 | $8.38 | |
Hypothetical-C | $1,000.00 | $1,016.06 | $8.87 | |
Class I | .74% | |||
Actual | $1,000.00 | $908.60 | $3.51 | |
Hypothetical-C | $1,000.00 | $1,021.18 | $3.72 | |
Class Z | .65% | |||
Actual | $1,000.00 | $909.10 | $3.09 | |
Hypothetical-C | $1,000.00 | $1,021.63 | $3.27 |
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 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor High Income Advantage Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.Approval of Amended and Restated Advisory Contracts. At its November 2019 meeting, the Board unanimously determined to approve an amended and restated management contract and sub-advisory agreements (Amended and Restated Contracts) for a stub period of January 1, 2020 through January 31, 2020 in connection with a consolidation of certain of Fidelity's advisory businesses. The Board considered that, on or about January 1, 2020, FMR Co., Inc. (FMRC) expected to merge with and into FMR and, after the merger, FMR expected to 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 references to FMR in the Amended and Restated Contracts would be updated to reflect FMR's new form of organization and domicile and considered that the definition of "group assets" for purposes of the fund's group fee would be modified to avoid double-counting assets once the reorganization is complete. The Board also noted Fidelity's assurance that neither the planned consolidation nor the Amended and Restated Contracts will change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees paid by the fund.The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.At its January 2020 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services provided by and the profits realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and ETFs with innovative structures, strategies and pricing and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain target date funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there was a portfolio management change for the fund in October 2019. The Board will continue to monitor closely the fund's performance, taking into account the portfolio management change.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against an appropriate securities market index (benchmark index) and a peer group of funds with similar objectives (peer group), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods ended June 30, 2019, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor High Income Advantage Fund
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Fidelity Advisor High Income Advantage Fund
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Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
HY-SANN-0620
1.703458.122
Fidelity Advisor® Value Fund
Semi-Annual Report
April 30, 2020
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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 |
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 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
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Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2020
% of fund's net assets | |
Vistra Energy Corp. | 1.9 |
Sempra Energy | 1.8 |
Digital Realty Trust, Inc. | 1.4 |
Entergy Corp. | 1.3 |
Centene Corp. | 1.3 |
CubeSmart | 1.3 |
Cheniere Energy, Inc. | 1.2 |
The Williams Companies, Inc. | 1.1 |
Edison International | 1.1 |
The Travelers Companies, Inc. | 1.0 |
13.4 |
Top Five Market Sectors as of April 30, 2020
% of fund's net assets | |
Industrials | 17.5 |
Financials | 12.5 |
Materials | 10.8 |
Utilities | 9.4 |
Real Estate | 9.4 |
Asset Allocation (% of fund's net assets)
As of April 30, 2020* | ||
Stocks and Equity Futures | 99.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.6% |
* Foreign investments - 13.8%
Schedule of Investments April 30, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.9% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 2.4% | |||
Media - 2.4% | |||
Discovery Communications, Inc. Class A (a) | 5,500 | $123,310 | |
DISH Network Corp. Class A (a) | 12,548 | 313,888 | |
Interpublic Group of Companies, Inc. | 19,500 | 331,110 | |
Liberty Global PLC Class C (a) | 11,684 | 213,934 | |
Nexstar Broadcasting Group, Inc. Class A | 6,500 | 455,260 | |
1,437,502 | |||
CONSUMER DISCRETIONARY - 8.8% | |||
Automobiles - 0.2% | |||
Bayerische Motoren Werke AG (BMW) | 2,400 | 142,154 | |
Distributors - 0.5% | |||
LKQ Corp. (a) | 12,600 | 329,490 | |
Diversified Consumer Services - 0.4% | |||
Laureate Education, Inc. Class A (a) | 26,600 | 251,902 | |
Hotels, Restaurants & Leisure - 0.8% | |||
Boyd Gaming Corp. | 5,900 | 98,471 | |
Eldorado Resorts, Inc. (a) | 17,158 | 367,868 | |
466,339 | |||
Household Durables - 2.3% | |||
D.R. Horton, Inc. | 6,711 | 316,893 | |
Mohawk Industries, Inc. (a) | 5,215 | 457,460 | |
Tempur Sealy International, Inc. (a) | 4,700 | 252,625 | |
Whirlpool Corp. | 3,000 | 335,220 | |
1,362,198 | |||
Internet & Direct Marketing Retail - 0.7% | |||
eBay, Inc. | 10,100 | 402,283 | |
Leisure Products - 0.5% | |||
Mattel, Inc. (a)(b) | 31,817 | 277,444 | |
Specialty Retail - 2.1% | |||
L Brands, Inc. | 19,300 | 229,477 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 2,600 | 287,456 | |
Lowe's Companies, Inc. | 2,740 | 287,015 | |
Michaels Companies, Inc. (a)(b) | 49,400 | 150,176 | |
Sally Beauty Holdings, Inc. (a) | 28,800 | 279,648 | |
1,233,772 | |||
Textiles, Apparel & Luxury Goods - 1.3% | |||
Capri Holdings Ltd. (a) | 10,800 | 164,700 | |
PVH Corp. | 3,600 | 177,228 | |
Tapestry, Inc. | 29,000 | 431,520 | |
773,448 | |||
TOTAL CONSUMER DISCRETIONARY | 5,239,030 | ||
CONSUMER STAPLES - 6.2% | |||
Food & Staples Retailing - 0.9% | |||
U.S. Foods Holding Corp. (a) | 24,545 | 527,718 | |
Food Products - 3.4% | |||
Conagra Brands, Inc. | 15,400 | 514,976 | |
Darling International, Inc. (a) | 24,261 | 499,534 | |
Nomad Foods Ltd. (a) | 16,398 | 337,963 | |
Post Holdings, Inc. (a) | 1,800 | 165,330 | |
Tyson Foods, Inc. Class A | 8,027 | 499,199 | |
2,017,002 | |||
Household Products - 1.1% | |||
Energizer Holdings, Inc. | 9,100 | 354,536 | |
Spectrum Brands Holdings, Inc. | 7,191 | 309,644 | |
664,180 | |||
Personal Products - 0.2% | |||
Edgewell Personal Care Co. (a) | 5,200 | 143,572 | |
Tobacco - 0.6% | |||
Altria Group, Inc. | 9,300 | 365,025 | |
TOTAL CONSUMER STAPLES | 3,717,497 | ||
ENERGY - 6.8% | |||
Energy Equipment & Services - 0.1% | |||
Baker Hughes Co. Class A | 4,468 | 62,329 | |
Oil, Gas & Consumable Fuels - 6.7% | |||
Cabot Oil & Gas Corp. | 5,412 | 117,007 | |
Cenovus Energy, Inc. (Canada) | 69,869 | 253,485 | |
Cheniere Energy, Inc. (a) | 14,855 | 693,580 | |
Devon Energy Corp. | 8,409 | 104,860 | |
Energy Transfer Equity LP | 24,400 | 204,960 | |
Hess Corp. | 11,900 | 578,816 | |
Marathon Petroleum Corp. | 2,731 | 87,610 | |
Noble Energy, Inc. | 44,600 | 437,526 | |
Pioneer Natural Resources Co. | 1,300 | 116,103 | |
Teekay LNG Partners LP | 17,300 | 200,161 | |
The Williams Companies, Inc. | 35,200 | 681,824 | |
Valero Energy Corp. | 7,400 | 468,790 | |
WPX Energy, Inc. (a) | 14,076 | 86,286 | |
4,031,008 | |||
TOTAL ENERGY | 4,093,337 | ||
FINANCIALS - 12.5% | |||
Banks - 2.6% | |||
Bank of Kyoto Ltd. | 4,000 | 138,284 | |
Comerica, Inc. | 2,700 | 94,122 | |
Fifth Third Bancorp | 3,700 | 69,153 | |
First Citizens Bancshares, Inc. | 994 | 379,708 | |
M&T Bank Corp. | 3,500 | 392,280 | |
Signature Bank | 2,700 | 289,386 | |
Wells Fargo & Co. | 5,900 | 171,395 | |
1,534,328 | |||
Capital Markets - 3.6% | |||
Ameriprise Financial, Inc. | 4,431 | 509,299 | |
Apollo Global Management LLC Class A | 11,234 | 454,865 | |
Lazard Ltd. Class A | 9,800 | 269,500 | |
LPL Financial | 7,200 | 433,584 | |
Raymond James Financial, Inc. | 7,000 | 461,440 | |
2,128,688 | |||
Consumer Finance - 2.7% | |||
Ally Financial, Inc. | 4,500 | 73,755 | |
Capital One Financial Corp. | 5,948 | 385,192 | |
Discover Financial Services | 9,100 | 391,027 | |
Navient Corp. | 10,900 | 83,058 | |
OneMain Holdings, Inc. | 12,816 | 310,275 | |
SLM Corp. | 48,490 | 404,407 | |
1,647,714 | |||
Diversified Financial Services - 0.2% | |||
ECN Capital Corp. | 53,200 | 150,968 | |
Insurance - 3.2% | |||
AMBAC Financial Group, Inc. (a) | 19,801 | 340,577 | |
American International Group, Inc. | 7,200 | 183,096 | |
Axis Capital Holdings Ltd. | 4,800 | 175,680 | |
First American Financial Corp. | 3,900 | 179,868 | |
Old Republic International Corp. | 22,600 | 360,470 | |
Reinsurance Group of America, Inc. | 700 | 73,276 | |
The Travelers Companies, Inc. | 6,000 | 607,260 | |
1,920,227 | |||
Thrifts & Mortgage Finance - 0.2% | |||
Essent Group Ltd. | 3,600 | 98,352 | |
TOTAL FINANCIALS | 7,480,277 | ||
HEALTH CARE - 9.0% | |||
Biotechnology - 1.0% | |||
Alexion Pharmaceuticals, Inc. (a) | 4,100 | 440,627 | |
Ascendis Pharma A/S sponsored ADR (a) | 500 | 67,865 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 3,800 | 38,000 | |
United Therapeutics Corp. (a) | 300 | 32,868 | |
579,360 | |||
Health Care Equipment & Supplies - 1.1% | |||
Dentsply Sirona, Inc. | 1,400 | 59,416 | |
Envista Holdings Corp. (a) | 14,700 | 286,209 | |
Hill-Rom Holdings, Inc. | 500 | 56,245 | |
Hologic, Inc. (a) | 400 | 20,040 | |
The Cooper Companies, Inc. | 286 | 81,996 | |
Zimmer Biomet Holdings, Inc. | 1,286 | 153,934 | |
657,840 | |||
Health Care Providers & Services - 4.5% | |||
AmerisourceBergen Corp. | 463 | 41,513 | |
Cardinal Health, Inc. | 2,135 | 105,640 | |
Centene Corp. (a) | 11,747 | 782,115 | |
Cigna Corp. | 2,900 | 567,762 | |
Humana, Inc. | 1,000 | 381,820 | |
Laboratory Corp. of America Holdings (a) | 1,047 | 172,179 | |
McKesson Corp. | 1,200 | 169,500 | |
Molina Healthcare, Inc. (a) | 400 | 65,588 | |
Premier, Inc. (a) | 10,500 | 348,180 | |
Universal Health Services, Inc. Class B | 500 | 52,845 | |
2,687,142 | |||
Health Care Technology - 0.6% | |||
Change Healthcare, Inc. | 31,700 | 368,988 | |
Life Sciences Tools & Services - 0.7% | |||
Agilent Technologies, Inc. | 1,446 | 110,850 | |
Bio-Rad Laboratories, Inc. Class A (a) | 437 | 192,324 | |
IQVIA Holdings, Inc. (a) | 728 | 103,806 | |
406,980 | |||
Pharmaceuticals - 1.1% | |||
Bayer AG | 4,100 | 270,208 | |
Jazz Pharmaceuticals PLC (a) | 3,238 | 356,990 | |
Mylan NV (a) | 1,700 | 28,509 | |
655,707 | |||
TOTAL HEALTH CARE | 5,356,017 | ||
INDUSTRIALS - 17.5% | |||
Aerospace & Defense - 0.4% | |||
General Dynamics Corp. | 1,600 | 208,992 | |
Textron, Inc. | 1,400 | 36,904 | |
245,896 | |||
Air Freight & Logistics - 0.9% | |||
FedEx Corp. | 2,700 | 342,279 | |
XPO Logistics, Inc. (a) | 2,600 | 173,524 | |
515,803 | |||
Building Products - 0.3% | |||
Carrier Global Corp. (a) | 1,500 | 26,565 | |
Jeld-Wen Holding, Inc. (a) | 11,244 | 142,799 | |
169,364 | |||
Commercial Services & Supplies - 1.3% | |||
ABM Industries, Inc. | 3,600 | 124,164 | |
KAR Auction Services, Inc. | 23,600 | 353,528 | |
The Brink's Co. | 6,300 | 322,056 | |
799,748 | |||
Construction & Engineering - 3.3% | |||
AECOM (a) | 16,582 | 601,263 | |
Arcadis NV | 20,922 | 325,339 | |
Fluor Corp. | 28,300 | 331,110 | |
Granite Construction, Inc. | 22,500 | 369,900 | |
Williams Scotsman Corp. (a) | 30,900 | 359,985 | |
1,987,597 | |||
Electrical Equipment - 2.0% | |||
Atkore International Group, Inc. (a) | 7,600 | 184,984 | |
Regal Beloit Corp. | 3,866 | 274,525 | |
Sensata Technologies, Inc. PLC (a) | 16,094 | 585,500 | |
Vertiv Holdings Co. (a) | 13,600 | 144,024 | |
1,189,033 | |||
Industrial Conglomerates - 0.1% | |||
General Electric Co. | 12,713 | 86,448 | |
Machinery - 1.9% | |||
Allison Transmission Holdings, Inc. | 15,464 | 561,962 | |
Colfax Corp. (a)(b) | 4,900 | 126,371 | |
Kennametal, Inc. | 5,700 | 145,977 | |
Stanley Black & Decker, Inc. | 2,500 | 275,500 | |
1,109,810 | |||
Marine - 0.2% | |||
A.P. Moller - Maersk A/S Series B | 124 | 123,411 | |
Professional Services - 1.8% | |||
ASGN, Inc. (a) | 8,300 | 385,535 | |
Intertrust NV (c) | 14,740 | 232,278 | |
Nielsen Holdings PLC | 29,534 | 435,036 | |
1,052,849 | |||
Road & Rail - 1.7% | |||
Knight-Swift Transportation Holdings, Inc. Class A (b) | 12,000 | 446,160 | |
Ryder System, Inc. | 14,309 | 506,539 | |
TFI International, Inc. (Canada) | 1,500 | 41,596 | |
994,295 | |||
Trading Companies & Distributors - 3.6% | |||
AerCap Holdings NV (a) | 9,261 | 260,419 | |
Ashtead Group PLC | 7,228 | 198,005 | |
Beacon Roofing Supply, Inc. (a) | 19,200 | 422,400 | |
Fortress Transportation & Infrastructure Investors LLC | 16,028 | 188,489 | |
GMS, Inc. (a) | 7,100 | 130,498 | |
HD Supply Holdings, Inc. (a) | 14,495 | 430,212 | |
MRC Global, Inc. (a) | 20,618 | 110,512 | |
Univar, Inc. (a) | 30,700 | 445,764 | |
2,186,299 | |||
TOTAL INDUSTRIALS | 10,460,553 | ||
INFORMATION TECHNOLOGY - 6.1% | |||
Communications Equipment - 1.3% | |||
CommScope Holding Co., Inc. (a) | 27,974 | 307,994 | |
Extreme Networks, Inc. (a) | 16,900 | 57,460 | |
F5 Networks, Inc. (a) | 1,300 | 181,038 | |
ViaSat, Inc. (a) | 5,400 | 228,960 | |
775,452 | |||
Electronic Equipment & Components - 1.0% | |||
Flextronics International Ltd. (a) | 43,723 | 426,736 | |
Insight Enterprises, Inc. (a) | 2,700 | 146,583 | |
573,319 | |||
IT Services - 2.2% | |||
Alliance Data Systems Corp. | 4,600 | 230,322 | |
Capgemini SA | 2,800 | 263,083 | |
DXC Technology Co. | 18,076 | 327,718 | |
Econocom Group SA | 71,500 | 137,745 | |
Unisys Corp. (a) | 26,748 | 336,757 | |
1,295,625 | |||
Semiconductors & Semiconductor Equipment - 1.0% | |||
Marvell Technology Group Ltd. | 13,500 | 360,990 | |
NXP Semiconductors NV | 2,700 | 268,839 | |
629,829 | |||
Software - 0.6% | |||
SS&C Technologies Holdings, Inc. | 6,900 | 380,604 | |
TOTAL INFORMATION TECHNOLOGY | 3,654,829 | ||
MATERIALS - 10.8% | |||
Chemicals - 6.2% | |||
Axalta Coating Systems Ltd. (a) | 21,279 | 420,047 | |
Celanese Corp. Class A | 2,159 | 179,348 | |
DuPont de Nemours, Inc. | 12,774 | 600,633 | |
Element Solutions, Inc. (a) | 33,000 | 338,250 | |
FMC Corp. | 2,511 | 230,761 | |
LyondellBasell Industries NV Class A | 1,618 | 93,763 | |
Olin Corp. | 42,187 | 563,196 | |
The Chemours Co. LLC | 23,456 | 275,139 | |
Tronox Holdings PLC | 49,800 | 339,636 | |
W.R. Grace & Co. | 8,100 | 382,563 | |
Westlake Chemical Corp. | 5,962 | 259,049 | |
3,682,385 | |||
Construction Materials - 1.2% | |||
Eagle Materials, Inc. | 4,100 | 250,141 | |
Martin Marietta Materials, Inc. | 661 | 125,742 | |
Summit Materials, Inc. (a) | 24,000 | 362,640 | |
738,523 | |||
Containers & Packaging - 2.2% | |||
Avery Dennison Corp. | 1,297 | 143,176 | |
Berry Global Group, Inc. (a)(b) | 11,600 | 461,564 | |
Crown Holdings, Inc. (a) | 6,400 | 412,224 | |
O-I Glass, Inc. | 39,243 | 323,362 | |
1,340,326 | |||
Metals & Mining - 1.2% | |||
Antofagasta PLC | 5,964 | 61,070 | |
Barrick Gold Corp. | 9,180 | 236,110 | |
Constellium NV (a) | 42,300 | 328,248 | |
Steel Dynamics, Inc. | 4,110 | 99,750 | |
725,178 | |||
TOTAL MATERIALS | 6,486,412 | ||
REAL ESTATE - 9.4% | |||
Equity Real Estate Investment Trusts (REITs) - 7.9% | |||
Alexandria Real Estate Equities, Inc. | 3,700 | 581,233 | |
American Tower Corp. | 1,243 | 295,834 | |
CubeSmart | 30,100 | 758,520 | |
Digital Realty Trust, Inc. | 5,500 | 822,195 | |
Douglas Emmett, Inc. | 9,043 | 275,721 | |
Equinix, Inc. | 772 | 521,254 | |
Equity Lifestyle Properties, Inc. | 5,576 | 336,289 | |
Essex Property Trust, Inc. | 1,100 | 268,510 | |
Four Corners Property Trust, Inc. | 6,600 | 147,774 | |
Lamar Advertising Co. Class A | 400 | 23,060 | |
National Retail Properties, Inc. | 8,421 | 274,861 | |
VICI Properties, Inc. | 21,900 | 381,498 | |
4,686,749 | |||
Real Estate Management & Development - 1.5% | |||
CBRE Group, Inc. (a) | 8,121 | 348,635 | |
Cushman & Wakefield PLC (a) | 36,400 | 442,988 | |
Howard Hughes Corp. (a) | 2,063 | 111,732 | |
903,355 | |||
TOTAL REAL ESTATE | 5,590,104 | ||
UTILITIES - 9.4% | �� | ||
Electric Utilities - 3.5% | |||
Edison International | 11,600 | 681,036 | |
Entergy Corp. | 8,300 | 792,733 | |
Exelon Corp. | 5,800 | 215,064 | |
FirstEnergy Corp. | 9,500 | 392,065 | |
2,080,898 | |||
Independent Power and Renewable Electricity Producers - 2.9% | |||
The AES Corp. | 42,300 | 560,475 | |
Vistra Energy Corp. | 59,211 | 1,156,985 | |
1,717,460 | |||
Multi-Utilities - 3.0% | |||
CenterPoint Energy, Inc. | 21,200 | 361,036 | |
Dominion Energy, Inc. | 4,900 | 377,937 | |
Sempra Energy | 8,857 | 1,096,939 | |
1,835,912 | |||
TOTAL UTILITIES | 5,634,270 | ||
TOTAL COMMON STOCKS | |||
(Cost $64,209,993) | 59,149,828 | ||
Money Market Funds - 2.9% | |||
Fidelity Cash Central Fund 0.16% (d) | 670,573 | 670,774 | |
Fidelity Securities Lending Cash Central Fund 0.11% (d)(e) | 1,061,103 | 1,061,210 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $1,731,862) | 1,731,984 | ||
TOTAL INVESTMENT IN SECURITIES - 101.8% | |||
(Cost $65,941,855) | 60,881,812 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (1,061,931) | ||
NET ASSETS - 100% | $59,819,881 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini S&P MidCap 400 Index Contracts (United States) | 2 | June 2020 | $328,260 | $36,216 | $36,216 |
The notional amount of futures purchased as a percentage of Net Assets is 0.5%
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 $232,278 or 0.4% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $4,929 |
Fidelity Securities Lending Cash Central Fund | 7,582 |
Total | $12,511 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. 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 April 30, 2020, 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 | $1,437,502 | $1,437,502 | $-- | $-- |
Consumer Discretionary | 5,239,030 | 5,239,030 | -- | -- |
Consumer Staples | 3,717,497 | 3,717,497 | -- | -- |
Energy | 4,093,337 | 4,093,337 | -- | -- |
Financials | 7,480,277 | 7,480,277 | -- | -- |
Health Care | 5,356,017 | 5,356,017 | -- | -- |
Industrials | 10,460,553 | 10,337,142 | 123,411 | -- |
Information Technology | 3,654,829 | 3,654,829 | -- | -- |
Materials | 6,486,412 | 6,486,412 | -- | -- |
Real Estate | 5,590,104 | 5,590,104 | -- | -- |
Utilities | 5,634,270 | 5,634,270 | -- | -- |
Money Market Funds | 1,731,984 | 1,731,984 | -- | -- |
Total Investments in Securities: | $60,881,812 | $60,758,401 | $123,411 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $36,216 | $36,216 | $-- | $-- |
Total Assets | $36,216 | $36,216 | $-- | $-- |
Total Derivative Instruments: | $36,216 | $36,216 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2020. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $36,216 | $0 |
Total Equity Risk | 36,216 | 0 |
Total Value of Derivatives | $36,216 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Consolidated Schedule of Investments. In the Consolidated 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 | 86.2% |
United Kingdom | 3.8% |
Bermuda | 2.2% |
Netherlands | 1.9% |
Canada | 1.1% |
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
April 30, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $983,286) — See accompanying schedule: Unaffiliated issuers (cost $64,209,993) | $59,149,828 | |
Fidelity Central Funds (cost $1,731,862) | 1,731,984 | |
Total Investment in Securities (cost $65,941,855) | $60,881,812 | |
Segregated cash with brokers for derivative instruments | 34,000 | |
Cash | 85,446 | |
Receivable for investments sold | 340,950 | |
Receivable for fund shares sold | 10,669 | |
Dividends receivable | 47,581 | |
Distributions receivable from Fidelity Central Funds | 264 | |
Prepaid expenses | 39 | |
Receivable from investment adviser for expense reductions | 298 | |
Other receivables | 8,056 | |
Total assets | 61,409,115 | |
Liabilities | ||
Payable for investments purchased | $314,980 | |
Payable for fund shares redeemed | 117,104 | |
Accrued management fee | 14,843 | |
Distribution and service plan fees payable | 15,120 | |
Payable for daily variation margin on futures contracts | 10,900 | |
Other affiliated payables | 12,610 | |
Other payables and accrued expenses | 42,827 | |
Collateral on securities loaned | 1,060,850 | |
Total liabilities | 1,589,234 | |
Net Assets | $59,819,881 | |
Net Assets consist of: | ||
Paid in capital | $72,535,872 | |
Total accumulated earnings (loss) | (12,715,991) | |
Net Assets | $59,819,881 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($33,007,427 ÷ 1,920,117 shares)(a) | $17.19 | |
Maximum offering price per share (100/94.25 of $17.19) | $18.24 | |
Class M: | ||
Net Asset Value and redemption price per share ($11,208,721 ÷ 658,897 shares)(a) | $17.01 | |
Maximum offering price per share (100/96.50 of $17.01) | $17.63 | |
Class C: | ||
Net Asset Value and offering price per share ($6,045,157 ÷ 372,243 shares)(a) | $16.24 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($8,086,335 ÷ 465,475 shares) | $17.37 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($1,472,241 ÷ 84,861 shares) | $17.35 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended April 30, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $701,251 | |
Interest | 281 | |
Income from Fidelity Central Funds (including $7,582 from security lending) | 12,511 | |
Total income | 714,043 | |
Expenses | ||
Management fee | ||
Basic fee | $201,081 | |
Performance adjustment | (41,571) | |
Transfer agent fees | 77,824 | |
Distribution and service plan fees | 125,430 | |
Accounting fees | 14,675 | |
Custodian fees and expenses | 21,880 | |
Independent trustees' fees and expenses | 242 | |
Registration fees | 54,104 | |
Audit | 31,968 | |
Legal | 9,434 | |
Miscellaneous | 3,091 | |
Total expenses before reductions | 498,158 | |
Expense reductions | (15,709) | |
Total expenses after reductions | 482,449 | |
Net investment income (loss) | 231,594 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (6,537,794) | |
Fidelity Central Funds | 172 | |
Foreign currency transactions | (236) | |
Futures contracts | (122,157) | |
Total net realized gain (loss) | (6,660,015) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (9,914,278) | |
Fidelity Central Funds | 49 | |
Assets and liabilities in foreign currencies | (126) | |
Futures contracts | 44,524 | |
Total change in net unrealized appreciation (depreciation) | (9,869,831) | |
Net gain (loss) | (16,529,846) | |
Net increase (decrease) in net assets resulting from operations | $(16,298,252) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended April 30, 2020 (Unaudited) | Year ended October 31, 2019 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $231,594 | $673,765 |
Net realized gain (loss) | (6,660,015) | 1,553,020 |
Change in net unrealized appreciation (depreciation) | (9,869,831) | 5,106,103 |
Net increase (decrease) in net assets resulting from operations | (16,298,252) | 7,332,888 |
Distributions to shareholders | (2,554,376) | (10,160,421) |
Share transactions - net increase (decrease) | (6,444,081) | 396,558 |
Total increase (decrease) in net assets | (25,296,709) | (2,430,975) |
Net Assets | ||
Beginning of period | 85,116,590 | 87,547,565 |
End of period | $59,819,881 | $85,116,590 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Value Fund Class A
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.44 | $23.40 | $25.37 | $21.43 | $21.39 | $21.48 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .07 | .19 | .17 | .23B | .22 | .12 |
Net realized and unrealized gain (loss) | (4.60) | 1.57 | (1.31) | 3.86 | .30 | (.14)C |
Total from investment operations | (4.53) | 1.76 | (1.14) | 4.09 | .52 | (.02) |
Distributions from net investment income | (.15) | (.10)D | (.22) | (.14) | (.11) | (.05) |
Distributions from net realized gain | (.57) | (2.62)D | (.61) | (.01) | (.37) | (.02) |
Total distributions | (.72) | (2.72) | (.83) | (.15) | (.48) | (.07) |
Net asset value, end of period | $17.19 | $22.44 | $23.40 | $25.37 | $21.43 | $21.39 |
Total ReturnE,F,G | (20.99)% | 9.00% | (4.73)% | 19.12% | 2.53% | (.12)%C |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.25%J | 1.10% | 1.12% | 1.14% | 1.19% | 1.31% |
Expenses net of fee waivers, if any | 1.22%J | 1.10% | 1.12% | 1.12% | 1.19% | 1.25% |
Expenses net of all reductions | 1.21%J | 1.10% | 1.11% | 1.12% | 1.18% | 1.24% |
Net investment income (loss) | .69%J | .87% | .66% | .95%B | 1.06% | .53% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $33,007 | $47,465 | $45,006 | $59,658 | $54,196 | $50,858 |
Portfolio turnover rateK | 96%J | 77% | 98% | 81% | 77% | 82% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .68%.
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 (.17)%
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Fund Class M
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.19 | $23.15 | $25.10 | $21.22 | $21.17 | $21.27 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .12 | .10 | .16B | .16 | .06 |
Net realized and unrealized gain (loss) | (4.56) | 1.57 | (1.30) | 3.82 | .31 | (.15)C |
Total from investment operations | (4.52) | 1.69 | (1.20) | 3.98 | .47 | (.09) |
Distributions from net investment income | (.09) | (.03)D | (.14) | (.09) | (.05) | – |
Distributions from net realized gain | (.57) | (2.62)D | (.61) | (.01) | (.37) | (.01) |
Total distributions | (.66) | (2.65) | (.75) | (.10) | (.42) | (.01) |
Net asset value, end of period | $17.01 | $22.19 | $23.15 | $25.10 | $21.22 | $21.17 |
Total ReturnE,F,G | (21.11)% | 8.74% | (5.01)% | 18.78% | 2.28% | (.43)%C |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.52%J | 1.39% | 1.39% | 1.40% | 1.47% | 1.58% |
Expenses net of fee waivers, if any | 1.48%J | 1.38% | 1.39% | 1.39% | 1.46% | 1.50% |
Expenses net of all reductions | 1.48%J | 1.38% | 1.37% | 1.38% | 1.46% | 1.49% |
Net investment income (loss) | .42%J | .58% | .40% | .68%B | .78% | .28% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $11,209 | $15,006 | $14,961 | $18,962 | $18,098 | $17,300 |
Portfolio turnover rateK | 96%J | 77% | 98% | 81% | 77% | 82% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .41%.
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 (.48)%
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Fund Class C
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $21.15 | $22.16 | $24.02 | $20.32 | $20.35 | $20.54 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .01 | (.04) | .03B | .05 | (.05) |
Net realized and unrealized gain (loss) | (4.35) | 1.49 | (1.25) | 3.67 | .29 | (.13)C |
Total from investment operations | (4.36) | 1.50 | (1.29) | 3.70 | .34 | (.18) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (.55) | (2.51) | (.57) | – | (.37) | (.01) |
Total distributions | (.55) | (2.51) | (.57) | – | (.37) | (.01) |
Net asset value, end of period | $16.24 | $21.15 | $22.16 | $24.02 | $20.32 | $20.35 |
Total ReturnD,E,F | (21.27)% | 8.13% | (5.55)% | 18.21% | 1.72% | (.89)%C |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 2.06%I | 1.92% | 1.93% | 1.94% | 1.98% | 2.09% |
Expenses net of fee waivers, if any | 1.98%I | 1.92% | 1.93% | 1.92% | 1.97% | 2.00% |
Expenses net of all reductions | 1.97%I | 1.91% | 1.92% | 1.92% | 1.97% | 1.99% |
Net investment income (loss) | (.07)%I | .05% | (.15)% | .15%B | .27% | (.22)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $6,045 | $8,777 | $14,405 | $20,555 | $15,589 | $16,670 |
Portfolio turnover rateJ | 96%I | 77% | 98% | 81% | 77% | 82% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.12) %.
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 (.94)%
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Fund Class I
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.70 | $23.66 | $25.65 | $21.65 | $21.60 | $21.70 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .10 | .26 | .25 | .30B | .28 | .17 |
Net realized and unrealized gain (loss) | (4.64) | 1.59 | (1.34) | 3.91 | .31 | (.14)C |
Total from investment operations | (4.54) | 1.85 | (1.09) | 4.21 | .59 | .03 |
Distributions from net investment income | (.23) | (.19)D | (.29) | (.20) | (.17) | (.11) |
Distributions from net realized gain | (.57) | (2.62)D | (.61) | (.01) | (.37) | (.02) |
Total distributions | (.79)E | (2.81) | (.90) | (.21) | (.54) | (.13) |
Net asset value, end of period | $17.37 | $22.70 | $23.66 | $25.65 | $21.65 | $21.60 |
Total ReturnF,G | (20.85)% | 9.34% | (4.48)% | 19.54% | 2.82% | .13%C |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .93%J | .79% | .82% | .84% | .89% | 1.00% |
Expenses net of fee waivers, if any | .91%J | .79% | .81% | .82% | .89% | 1.00% |
Expenses net of all reductions | .90%J | .79% | .80% | .82% | .89% | .99% |
Net investment income (loss) | 1.00%J | 1.18% | .97% | 1.25%B | 1.36% | .78% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $8,086 | $11,097 | $12,342 | $14,565 | $16,218 | $10,391 |
Portfolio turnover rateK | 96%J | 77% | 98% | 81% | 77% | 82% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .98%.
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 .08%
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $.79 per share is comprised of distributions from net investment income of $.225 and distributions from net realized gain of $.566 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Fund Class Z
Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||
2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $22.69 | $23.67 | $25.67 | $23.57 |
Income from Investment Operations | ||||
Net investment income (loss)B | .12 | .28 | .28 | .23C |
Net realized and unrealized gain (loss) | (4.64) | 1.58 | (1.34) | 1.87 |
Total from investment operations | (4.52) | 1.86 | (1.06) | 2.10 |
Distributions from net investment income | (.25) | (.22)D | (.33) | – |
Distributions from net realized gain | (.57) | (2.62)D | (.61) | – |
Total distributions | (.82) | (2.84) | (.94) | – |
Net asset value, end of period | $17.35 | $22.69 | $23.67 | $25.67 |
Total ReturnE,F | (20.81)% | 9.45% | (4.36)% | 8.91% |
Ratios to Average Net AssetsG,H | ||||
Expenses before reductions | .83%I | .69% | .70% | .72%I |
Expenses net of fee waivers, if any | .80%I | .68% | .70% | .72%I |
Expenses net of all reductions | .79%I | .68% | .68% | .71%I |
Net investment income (loss) | 1.11%I | 1.28% | 1.09% | 1.24%C,I |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $1,472 | $2,772 | $834 | $524 |
Portfolio turnover rateJ | 96%I | 77% | 98% | 81% |
A For the period February 1, 2017 (commencement of sale of shares) to October 31, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .97%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2020
1. Organization.
Fidelity Advisor 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. 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.
Effective January 1, 2020:
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. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 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 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.
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 April 30, 2020 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. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences resulted in distribution reclassifications for the period ended October 31, 2019.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, market discount, partnerships, and losses deferred due to wash sales.
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 | $6,336,329 |
Gross unrealized depreciation | (13,142,379) |
Net unrealized appreciation (depreciation) | $(6,806,050) |
Tax cost | $67,724,078 |
Restricted Securities (including Private Placements). 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 and is representative of volume of activity during the period. Cash deposited to meet initial margin requirements is presented as segregated cash with brokers for derivative instruments in the Statement of Assets and Liabilities.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Value Fund | 35,557,786 | 44,456,141 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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 Midcap Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .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 Company LLC (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% | $51,394 | $1,301 |
Class M | .25% | .25% | 34,584 | 548 |
Class C | .75% | .25% | 39,452 | 4,114 |
$125,430 | $5,963 |
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 | $4,353 |
Class M | 621 |
Class C(a) | 465 |
$5,439 |
(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 LLC (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. Effective February 1, 2020, the Board approved to change the fee for Class Z from .046% to .044%.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $42,936 | .21 |
Class M | 16,279 | .24 |
Class C | 10,674 | .27 |
Class I | 7,418 | .15 |
Class Z | 517 | .04 |
$77,824 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Advisor Value Fund | .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 Value Fund | $2,049 |
Interfund Trades. Funds 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.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Advisor Value Fund | $100 |
During the period, there were no borrowings 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 $767. 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.
The investment adviser contractually agreed to reimburse expenses of each class to the extent annual operating expenses exceeded certain levels of class-level average net assets as noted in the table below. This reimbursement will remain in place through February 28, 2021. Some expenses, for example the compensation of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
Expense Limitations | Reimbursement | |
Class M | 1.50% | $931 |
Class C | 2.00% | 2,142 |
$3,073 |
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 $3,264 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $172.
In addition, during the period the investment adviser or an affiliate reimbursed the Fund $9,200 for an operational error which is included in the accompanying Statement of Operations.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended April 30, 2020 | Year ended October 31, 2019 | |
Distributions to shareholders | ||
Class A | $1,407,110 | $5,138,554 |
Class M | 441,338 | 1,722,141 |
Class C | 225,413 | 1,559,544 |
Class I | 382,996 | 1,432,415 |
Class Z | 97,519 | 307,767 |
Total | $2,554,376 | $10,160,421 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended April 30, 2020 | Year ended October 31, 2019 | Six months ended April 30, 2020 | Year ended October 31, 2019 | |
Class A | ||||
Shares sold | 239,190 | 857,048 | $4,481,179 | $18,259,987 |
Reinvestment of distributions | 60,940 | 255,348 | 1,391,873 | 5,083,969 |
Shares redeemed | (495,187) | (920,804) | (10,236,284) | (19,757,433) |
Net increase (decrease) | (195,057) | 191,592 | $(4,363,232) | $3,586,523 |
Class M | ||||
Shares sold | 25,748 | 91,877 | $522,865 | $1,973,383 |
Reinvestment of distributions | 19,232 | 86,399 | 435,019 | 1,704,650 |
Shares redeemed | (62,400) | (148,106) | (1,283,846) | (3,136,951) |
Net increase (decrease) | (17,420) | 30,170 | $(325,962) | $541,082 |
Class C | ||||
Shares sold | 29,636 | 90,691 | $575,373 | $1,839,288 |
Reinvestment of distributions | 10,313 | 81,404 | 223,175 | 1,538,537 |
Shares redeemed | (82,586) | (407,162) | (1,543,879) | (8,306,857) |
Net increase (decrease) | (42,637) | (235,067) | $(745,331) | $(4,929,032) |
Class I | ||||
Shares sold | 50,604 | 122,532 | $1,005,075 | $2,653,978 |
Reinvestment of distributions | 15,576 | 66,570 | 359,033 | 1,337,382 |
Shares redeemed | (89,460) | (221,906) | (1,800,244) | (4,818,350) |
Net increase (decrease) | (23,280) | (32,804) | $(436,136) | $(826,990) |
Class Z | ||||
Shares sold | 23,728 | 100,054 | $360,074 | $2,305,279 |
Reinvestment of distributions | 3,989 | 15,296 | 91,779 | 306,845 |
Shares redeemed | (65,013) | (28,430) | (1,025,273) | (587,149) |
Net increase (decrease) | (37,296) | 86,920 | $(573,420) | $2,024,975 |
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.
13. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
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 (November 1, 2019 to April 30, 2020).
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 November 1, 2019 | Ending Account Value April 30, 2020 | Expenses Paid During Period-B November 1, 2019 to April 30, 2020 | |
Class A | 1.22% | |||
Actual | $1,000.00 | $790.10 | $5.43 | |
Hypothetical-C | $1,000.00 | $1,018.80 | $6.12 | |
Class M | 1.48% | |||
Actual | $1,000.00 | $788.90 | $6.58 | |
Hypothetical-C | $1,000.00 | $1,017.50 | $7.42 | |
Class C | 1.98% | |||
Actual | $1,000.00 | $787.30 | $8.80 | |
Hypothetical-C | $1,000.00 | $1,015.02 | $9.92 | |
Class I | .91% | |||
Actual | $1,000.00 | $791.50 | $4.05 | |
Hypothetical-C | $1,000.00 | $1,020.34 | $4.57 | |
Class Z | .80% | |||
Actual | $1,000.00 | $791.90 | $3.56 | |
Hypothetical-C | $1,000.00 | $1,020.89 | $4.02 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Value Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.Approval of Amended and Restated Advisory Contracts. At its November 2019 meeting, the Board unanimously determined to approve an amended and restated management contract and sub-advisory agreements (Amended and Restated Contracts) for a stub period of January 1, 2020 through January 31, 2020 in connection with a consolidation of certain of Fidelity's advisory businesses. The Board considered that, on or about January 1, 2020, FMR Co., Inc. (FMRC) expected to merge with and into FMR and, after the merger, FMR expected to 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 references to FMR in the Amended and Restated Contracts would be updated to reflect FMR's new form of organization and domicile and considered that the definition of "group assets" for purposes of the fund's group fee would be modified to avoid double-counting assets once the reorganization is complete. The Board also noted Fidelity's assurance that neither the planned consolidation nor the Amended and Restated Contracts will change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees paid by the fund.The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.At its January 2020 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services provided by and the profits realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and ETFs with innovative structures, strategies and pricing and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain target date funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there were portfolio management changes for the fund in April 2018 and June 2018. The Board will continue to monitor closely the fund's performance as the new portfolio manager(s) establishes a track record.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against an appropriate securities market index (benchmark index) and a peer group of funds with similar objectives (peer group), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods ended June 30, 2019, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Value Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-002722/img604969421.jpg)
Fidelity Advisor Value Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-002722/img604969765.jpg)
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
FAV-SANN-0620
1.800650.116
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Advisor Series I’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Advisor Series I’s (the “Trust”) disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the 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) | Not applicable. |
(a) | (2) | |
(a) | (3) | Not applicable. |
(b) |
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: | June 18, 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: | June 18, 2020 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | June 18, 2020 |