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: | November 30 |
Date of reporting period: | May 31, 2020 |
Item 1.
Reports to Stockholders
Fidelity Advisor® Value Strategies Fund
Semi-Annual Report
May 31, 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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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
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 May 31, 2020
% of fund's net assets | |
CubeSmart | 3.0 |
Edison International | 2.5 |
Exelon Corp. | 2.5 |
Vistra Energy Corp. | 2.3 |
Sempra Energy | 2.3 |
Equinix, Inc. | 2.2 |
Digital Realty Trust, Inc. | 2.2 |
Equity Lifestyle Properties, Inc. | 2.0 |
Alexion Pharmaceuticals, Inc. | 1.9 |
Raymond James Financial, Inc. | 1.9 |
22.8 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Financials | 17.3 |
Real Estate | 13.9 |
Industrials | 13.1 |
Utilities | 11.1 |
Consumer Discretionary | 9.4 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020 * | ||
Stocks | 98.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.3% |
* Foreign investments - 8.5%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 1.6% | |||
Media - 1.6% | |||
Liberty Global PLC Class C (a) | 195,700 | $4,037 | |
Nexstar Broadcasting Group, Inc. Class A | 84,300 | 7,023 | |
11,060 | |||
CONSUMER DISCRETIONARY - 9.4% | |||
Distributors - 1.1% | |||
LKQ Corp. (a) | 260,400 | 7,151 | |
Diversified Consumer Services - 0.5% | |||
Laureate Education, Inc. Class A (a) | 365,400 | 3,555 | |
Hotels, Restaurants & Leisure - 1.1% | |||
Eldorado Resorts, Inc. (a)(b) | 218,800 | 7,759 | |
Household Durables - 1.8% | |||
Mohawk Industries, Inc. (a) | 83,000 | 7,736 | |
Tempur Sealy International, Inc. (a) | 70,500 | 4,599 | |
12,335 | |||
Internet & Direct Marketing Retail - 1.4% | |||
eBay, Inc. | 212,300 | 9,668 | |
Leisure Products - 0.6% | |||
Mattel, Inc. (a) | 399,900 | 3,683 | |
Specialty Retail - 1.8% | |||
Lowe's Companies, Inc. | 46,000 | 5,996 | |
Sally Beauty Holdings, Inc. (a) | 463,900 | 6,049 | |
12,045 | |||
Textiles, Apparel & Luxury Goods - 1.1% | |||
Tapestry, Inc. | 565,607 | 7,692 | |
TOTAL CONSUMER DISCRETIONARY | 63,888 | ||
CONSUMER STAPLES - 7.6% | |||
Food & Staples Retailing - 1.3% | |||
U.S. Foods Holding Corp. (a) | 452,400 | 8,659 | |
Food Products - 3.2% | |||
Conagra Brands, Inc. | 340,600 | 11,849 | |
Darling Ingredients, Inc.(a) | 332,322 | 7,746 | |
Post Holdings, Inc. (a) | 28,700 | 2,499 | |
22,094 | |||
Household Products - 2.1% | |||
Energizer Holdings, Inc. (b) | 153,800 | 6,749 | |
Spectrum Brands Holdings, Inc. | 154,000 | 7,287 | |
14,036 | |||
Tobacco - 1.0% | |||
Altria Group, Inc. | 177,500 | 6,931 | |
TOTAL CONSUMER STAPLES | 51,720 | ||
ENERGY - 5.1% | |||
Oil, Gas & Consumable Fuels - 5.1% | |||
Cheniere Energy, Inc. (a) | 201,900 | 8,954 | |
Hess Corp. | 181,200 | 8,602 | |
Noble Energy, Inc. | 611,600 | 5,339 | |
The Williams Companies, Inc. | 283,700 | 5,796 | |
Valero Energy Corp. | 86,900 | 5,791 | |
34,482 | |||
FINANCIALS - 17.3% | |||
Banks - 2.4% | |||
First Citizens Bancshares, Inc. | 13,900 | 5,352 | |
M&T Bank Corp. | 75,900 | 8,020 | |
Wells Fargo & Co. | 101,800 | 2,695 | |
16,067 | |||
Capital Markets - 7.9% | |||
Ameriprise Financial, Inc. | 87,100 | 12,200 | |
Apollo Global Management LLC Class A | 256,850 | 12,226 | |
Lazard Ltd. Class A | 214,100 | 5,751 | |
LPL Financial | 152,500 | 10,887 | |
Raymond James Financial, Inc. (b) | 182,800 | 12,664 | |
53,728 | |||
Consumer Finance - 4.4% | |||
Capital One Financial Corp. | 147,100 | 10,009 | |
Discover Financial Services | 146,700 | 6,970 | |
OneMain Holdings, Inc. | 241,200 | 5,627 | |
SLM Corp. | 944,584 | 7,160 | |
29,766 | |||
Insurance - 2.6% | |||
American International Group, Inc. | 121,400 | 3,649 | |
First American Financial Corp. | 53,400 | 2,696 | |
The Travelers Companies, Inc. | 106,200 | 11,361 | |
17,706 | |||
TOTAL FINANCIALS | 117,267 | ||
HEALTH CARE - 7.7% | |||
Biotechnology - 1.9% | |||
Alexion Pharmaceuticals, Inc. (a) | 108,500 | 13,009 | |
Health Care Providers & Services - 4.9% | |||
Centene Corp. (a) | 174,000 | 11,528 | |
Cigna Corp. | 59,700 | 11,780 | |
Humana, Inc. | 24,800 | 10,184 | |
33,492 | |||
Pharmaceuticals - 0.9% | |||
Jazz Pharmaceuticals PLC (a) | 49,700 | 5,930 | |
TOTAL HEALTH CARE | 52,431 | ||
INDUSTRIALS - 13.1% | |||
Commercial Services & Supplies - 0.6% | |||
The Brink's Co. | 101,500 | 4,070 | |
Construction & Engineering - 2.4% | |||
AECOM (a) | 232,500 | 9,014 | |
Williams Scotsman Corp. (a) | 550,700 | 7,346 | |
16,360 | |||
Electrical Equipment - 0.7% | |||
Sensata Technologies, Inc. PLC (a) | 128,200 | 4,570 | |
Machinery - 2.2% | |||
Allison Transmission Holdings, Inc. | 246,300 | 9,290 | |
Stanley Black & Decker, Inc. | 43,900 | 5,507 | |
14,797 | |||
Road & Rail - 2.1% | |||
Knight-Swift Transportation Holdings, Inc. Class A (b) | 188,200 | 7,831 | |
Ryder System, Inc. | 198,200 | 6,790 | |
14,621 | |||
Trading Companies & Distributors - 5.1% | |||
AerCap Holdings NV (a) | 188,937 | 6,091 | |
Ashtead Group PLC | 176,800 | 5,225 | |
Beacon Roofing Supply, Inc. (a) | 379,600 | 9,346 | |
HD Supply Holdings, Inc. (a) | 222,000 | 7,040 | |
Univar, Inc. (a) | 454,000 | 7,019 | |
34,721 | |||
TOTAL INDUSTRIALS | 89,139 | ||
INFORMATION TECHNOLOGY - 4.8% | |||
Communications Equipment - 0.5% | |||
CommScope Holding Co., Inc. (a) | 348,168 | 3,590 | |
Electronic Equipment & Components - 0.8% | |||
Flextronics International Ltd. (a) | 539,700 | 5,240 | |
IT Services - 0.7% | |||
DXC Technology Co. | 317,300 | 4,509 | |
Semiconductors & Semiconductor Equipment - 1.5% | |||
Marvell Technology Group Ltd. | 144,000 | 4,697 | |
NXP Semiconductors NV | 56,100 | 5,391 | |
10,088 | |||
Software - 1.3% | |||
SS&C Technologies Holdings, Inc. | 152,200 | 8,812 | |
TOTAL INFORMATION TECHNOLOGY | 32,239 | ||
MATERIALS - 7.1% | |||
Chemicals - 4.7% | |||
Axalta Coating Systems Ltd. (a) | 198,700 | 4,592 | |
DuPont de Nemours, Inc. | 203,537 | 10,325 | |
Olin Corp. | 779,583 | 9,378 | |
The Chemours Co. LLC | 217,100 | 2,846 | |
Tronox Holdings PLC | 678,700 | 4,507 | |
31,648 | |||
Construction Materials - 0.9% | |||
Summit Materials, Inc. (a) | 400,100 | 6,078 | |
Containers & Packaging - 1.5% | |||
Crown Holdings, Inc. (a) | 160,854 | 10,525 | |
TOTAL MATERIALS | 48,251 | ||
REAL ESTATE - 13.9% | |||
Equity Real Estate Investment Trusts (REITs) - 12.1% | |||
American Tower Corp. | 42,808 | 11,052 | |
CubeSmart | 727,200 | 20,698 | |
Digital Realty Trust, Inc. | 101,600 | 14,586 | |
Equinix, Inc. | 21,400 | 14,929 | |
Equity Lifestyle Properties, Inc. | 218,000 | 13,581 | |
VICI Properties, Inc. | 384,600 | 7,546 | |
82,392 | |||
Real Estate Management & Development - 1.8% | |||
CBRE Group, Inc. (a) | 258,700 | 11,378 | |
Cushman & Wakefield PLC (a) | 52,800 | 541 | |
11,919 | |||
TOTAL REAL ESTATE | 94,311 | ||
UTILITIES - 11.1% | |||
Electric Utilities - 5.0% | |||
Edison International | 296,500 | 17,230 | |
Exelon Corp. | 441,800 | 16,925 | |
34,155 | |||
Independent Power and Renewable Electricity Producers - 2.3% | |||
Vistra Energy Corp. | 773,100 | 15,802 | |
Multi-Utilities - 3.8% | |||
Dominion Energy, Inc. | 117,600 | 9,997 | |
Sempra Energy | 122,988 | 15,535 | |
25,532 | |||
TOTAL UTILITIES | 75,489 | ||
TOTAL COMMON STOCKS | |||
(Cost $692,680) | 670,277 | ||
Money Market Funds - 4.8% | |||
Fidelity Cash Central Fund 0.11% (c) | 5,612,124 | 5,613 | |
Fidelity Securities Lending Cash Central Fund 0.10% (c)(d) | 27,293,411 | 27,296 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $32,909) | 32,909 | ||
TOTAL INVESTMENT IN SECURITIES - 103.5% | |||
(Cost $725,589) | 703,186 | ||
NET OTHER ASSETS (LIABILITIES) - (3.5)% | (23,793) | ||
NET ASSETS - 100% | $679,393 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $28 |
Fidelity Securities Lending Cash Central Fund | 23 |
Total | $51 |
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 May 31, 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 | $11,060 | $11,060 | $-- | $-- |
Consumer Discretionary | 63,888 | 63,888 | -- | -- |
Consumer Staples | 51,720 | 51,720 | -- | -- |
Energy | 34,482 | 34,482 | -- | -- |
Financials | 117,267 | 117,267 | -- | -- |
Health Care | 52,431 | 52,431 | -- | -- |
Industrials | 89,139 | 89,139 | -- | -- |
Information Technology | 32,239 | 32,239 | -- | -- |
Materials | 48,251 | 48,251 | -- | -- |
Real Estate | 94,311 | 94,311 | -- | -- |
Utilities | 75,489 | 75,489 | -- | -- |
Money Market Funds | 32,909 | 32,909 | -- | -- |
Total Investments in Securities: | $703,186 | $703,186 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $26,879) — See accompanying schedule: Unaffiliated issuers (cost $692,680) | $670,277 | |
Fidelity Central Funds (cost $32,909) | 32,909 | |
Total Investment in Securities (cost $725,589) | $703,186 | |
Receivable for investments sold | 2,918 | |
Receivable for fund shares sold | 378 | |
Dividends receivable | 1,290 | |
Distributions receivable from Fidelity Central Funds | 9 | |
Other receivables | 9 | |
Total assets | 707,790 | |
Liabilities | ||
Payable for fund shares redeemed | $563 | |
Accrued management fee | 264 | |
Distribution and service plan fees payable | 106 | |
Other affiliated payables | 119 | |
Other payables and accrued expenses | 47 | |
Collateral on securities loaned | 27,298 | |
Total liabilities | 28,397 | |
Net Assets | $679,393 | |
Net Assets consist of: | ||
Paid in capital | $754,632 | |
Total accumulated earnings (loss) | (75,239) | |
Net Assets | $679,393 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($155,001 ÷ 6,114 shares)(a) | $25.35 | |
Maximum offering price per share (100/94.25 of $25.35) | $26.90 | |
Class M: | ||
Net Asset Value and redemption price per share ($174,521 ÷ 6,462 shares)(a) | $27.01 | |
Maximum offering price per share (100/96.50 of $27.01) | $27.99 | |
Class C: | ||
Net Asset Value and offering price per share ($9,977 ÷ 467 shares)(a) | $21.35 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($252,436 ÷ 8,267 shares) | $30.54 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($39,643 ÷ 1,300 shares) | $30.49 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($47,815 ÷ 1,690 shares) | $28.29 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $8,361 | |
Income from Fidelity Central Funds (including $23 from security lending) | 51 | |
Total income | 8,412 | |
Expenses | ||
Management fee | ||
Basic fee | $2,037 | |
Performance adjustment | 69 | |
Transfer agent fees | 689 | |
Distribution and service plan fees | 758 | |
Accounting fees | 134 | |
Custodian fees and expenses | 5 | |
Independent trustees' fees and expenses | 2 | |
Registration fees | 69 | |
Audit | 31 | |
Legal | 1 | |
Interest | 1 | |
Miscellaneous | 19 | |
Total expenses before reductions | 3,815 | |
Expense reductions | (29) | |
Total expenses after reductions | 3,786 | |
Net investment income (loss) | 4,626 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (54,503) | |
Total net realized gain (loss) | (54,503) | |
Change in net unrealized appreciation (depreciation) on investment securities | (124,647) | |
Net gain (loss) | (179,150) | |
Net increase (decrease) in net assets resulting from operations | $(174,524) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $4,626 | $12,348 |
Net realized gain (loss) | (54,503) | 34,745 |
Change in net unrealized appreciation (depreciation) | (124,647) | 81,602 |
Net increase (decrease) in net assets resulting from operations | (174,524) | 128,695 |
Distributions to shareholders | (45,643) | (103,085) |
Share transactions - net increase (decrease) | (5,136) | 9,554 |
Total increase (decrease) in net assets | (225,303) | 35,164 |
Net Assets | ||
Beginning of period | 904,696 | 869,532 |
End of period | $679,393 | $904,696 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Value Strategies Fund Class A
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $33.23 | $33.48 | $38.91 | $40.25 | $39.01 | $38.91 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .16 | .42B | .35 | .60C | .56 | .35 |
Net realized and unrealized gain (loss) | (6.23) | 3.66 | (2.50) | 6.13 | 1.09 | .06 |
Total from investment operations | (6.07) | 4.08 | (2.15) | 6.73 | 1.65 | .41 |
Distributions from net investment income | (.46) | (.29) | (.51) | (.56) | (.40) | (.28)D |
Distributions from net realized gain | (1.35) | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (1.81) | (4.33) | (3.28) | (8.07)E | (.41) | (.31) |
Net asset value, end of period | $25.35 | $33.23 | $33.48 | $38.91 | $40.25 | $39.01 |
Total ReturnF,G,H | (19.44)% | 16.34% | (6.16)% | 19.84% | 4.33% | 1.07% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.07%K | 1.02% | .91% | .91% | .86% | .93% |
Expenses net of fee waivers, if any | 1.07%K | 1.02% | .91% | .91% | .86% | .93% |
Expenses net of all reductions | 1.07%K | 1.01% | .90% | .90% | .86% | .93% |
Net investment income (loss) | 1.14%K | 1.39%B | .98%L | 1.64%C | 1.48% | .89% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $155 | $204 | $175 | $212 | $203 | $215 |
Portfolio turnover rateM | 56%K | 66% | 72% | 46% | 121% | 9% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.10%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.29%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $8.07 per share is comprised of distributions from net investment income of $.555 and distributions from net realized gain of $7.517 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L The 2018 net investment income (loss) ratio has been restated to reflect the reclassification of certain distributions by the fund.
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Strategies Fund Class M
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $35.23 | $35.16 | $40.69 | $41.72 | $40.40 | $40.28 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .13 | .37B | .28 | .54C | .49 | .28 |
Net realized and unrealized gain (loss) | (6.63) | 3.93 | (2.63) | 6.40 | 1.14 | .06 |
Total from investment operations | (6.50) | 4.30 | (2.35) | 6.94 | 1.63 | .34 |
Distributions from net investment income | (.37) | (.19) | (.41) | (.46) | (.30) | (.19)D |
Distributions from net realized gain | (1.35) | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (1.72) | (4.23) | (3.18) | (7.97)E | (.31) | (.22) |
Net asset value, end of period | $27.01 | $35.23 | $35.16 | $40.69 | $41.72 | $40.40 |
Total ReturnF,G,H | (19.50)% | 16.07% | (6.38)% | 19.57% | 4.11% | .86% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.30%K | 1.25% | 1.14% | 1.13% | 1.08% | 1.15% |
Expenses net of fee waivers, if any | 1.30%K | 1.24% | 1.14% | 1.13% | 1.08% | 1.14% |
Expenses net of all reductions | 1.29%K | 1.24% | 1.13% | 1.13% | 1.07% | 1.14% |
Net investment income (loss) | .92%K | 1.16%B | .75% | 1.42%C | 1.27% | .68% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $175 | $234 | $225 | $271 | $263 | $294 |
Portfolio turnover rateL | 56%K | 66% | 72% | 46% | 121% | 9% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .87%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.06%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $7.97 per share is comprised of distributions from net investment income of $.456 and distributions from net realized gain of $7.517 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Strategies Fund Class C
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.07 | $28.95 | $34.09 | $36.19 | $35.12 | $35.07 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .15B | .06 | .28C | .24 | .05 |
Net realized and unrealized gain (loss) | (5.26) | 3.04 | (2.16) | 5.43 | .97 | .07 |
Total from investment operations | (5.22) | 3.19 | (2.10) | 5.71 | 1.21 | .12 |
Distributions from net investment income | (.15) | (.03) | (.27) | (.30) | (.13) | (.04)D |
Distributions from net realized gain | (1.35) | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (1.50) | (4.07) | (3.04) | (7.81)E | (.14) | (.07) |
Net asset value, end of period | $21.35 | $28.07 | $28.95 | $34.09 | $36.19 | $35.12 |
Total ReturnF,G,H | (19.75)% | 15.41% | (6.89)% | 18.97% | 3.49% | .33% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.88%K | 1.82% | 1.68% | 1.68% | 1.63% | 1.70% |
Expenses net of fee waivers, if any | 1.88%K | 1.82% | 1.68% | 1.68% | 1.63% | 1.69% |
Expenses net of all reductions | 1.87%K | 1.82% | 1.67% | 1.67% | 1.63% | 1.69% |
Net investment income (loss) | .33%K | .58%B | .21% | .87%C | .72% | .13% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $10 | $14 | $34 | $46 | $44 | $49 |
Portfolio turnover rateL | 56%K | 66% | 72% | 46% | 121% | 9% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .30%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .52%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $7.81 per share is comprised of distributions from net investment income of $.295 and distributions from net realized gain of $7.517 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the contingent deferred sales charge.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Value Strategies Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $39.68 | $39.04 | $44.81 | $45.17 | $43.72 | $43.56 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .23 | .60B | .52 | .81C | .76 | .51 |
Net realized and unrealized gain (loss) | (7.49) | 4.46 | (2.92) | 7.01 | 1.21 | .07 |
Total from investment operations | (7.26) | 5.06 | (2.40) | 7.82 | 1.97 | .58 |
Distributions from net investment income | (.53) | (.38) | (.61) | (.66) | (.51) | (.39)D |
Distributions from net realized gain | (1.35) | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (1.88) | (4.42) | (3.37)E | (8.18) | (.52) | (.42) |
Net asset value, end of period | $30.54 | $39.68 | $39.04 | $44.81 | $45.17 | $43.72 |
Total ReturnF,G | (19.30)% | 16.63% | (5.89)% | 20.18% | 4.64% | 1.35% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .80%J | .74% | .63% | .62% | .56% | .67% |
Expenses net of fee waivers, if any | .80%J | .74% | .63% | .62% | .56% | .67% |
Expenses net of all reductions | .80%J | .74% | .62% | .62% | .55% | .66% |
Net investment income (loss) | 1.41%J | 1.66%B | 1.26% | 1.93%C | 1.79% | 1.16% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $252 | $332 | $324 | $436 | $713 | $716 |
Portfolio turnover rateK | 56%J | 66% | 72% | 46% | 121% | 9% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.37%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.15 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.57%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $3.37 per share is comprised of distributions from net investment income of $.608 and distributions from net realized gain of $2.765 per share.
F Total returns 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 Strategies Fund Class K
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $39.65 | $39.03 | $44.82 | $45.18 | $43.74 | $43.57 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .26 | .64B | .58 | .86C | .80 | .58 |
Net realized and unrealized gain (loss) | (7.49) | 4.46 | (2.93) | 7.02 | 1.22 | .07 |
Total from investment operations | (7.23) | 5.10 | (2.35) | 7.88 | 2.02 | .65 |
Distributions from net investment income | (.58) | (.44) | (.67) | (.72) | (.57) | (.45)D |
Distributions from net realized gain | (1.35) | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (1.93) | (4.48) | (3.44) | (8.24) | (.58) | (.48) |
Net asset value, end of period | $30.49 | $39.65 | $39.03 | $44.82 | $45.18 | $43.74 |
Total ReturnE,F | (19.26)% | 16.80% | (5.80)% | 20.36% | 4.76% | 1.51% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .66%I | .61% | .50% | .50% | .44% | .51% |
Expenses net of fee waivers, if any | .66%I | .61% | .50% | .50% | .44% | .51% |
Expenses net of all reductions | .66%I | .61% | .49% | .49% | .43% | .51% |
Net investment income (loss) | 1.55%I | 1.79%B | 1.39% | 2.05%C�� | 1.91% | 1.31% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $40 | $49 | $49 | $79 | $68 | $72 |
Portfolio turnover rateJ | 56%I | 66% | 72% | 46% | 121% | 9% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.50%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.15 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.70%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Strategies Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $36.90 | $36.64 | $42.27 | $43.07 | $41.71 | $41.57 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .21 | .55B | .48 | .74C | .70 | .48 |
Net realized and unrealized gain (loss) | (6.94) | 4.12 | (2.75) | 6.64 | 1.15 | .08 |
Total from investment operations | (6.73) | 4.67 | (2.27) | 7.38 | 1.85 | .56 |
Distributions from net investment income | (.53) | (.37) | (.59) | (.66) | (.48) | (.39)D |
Distributions from net realized gain | (1.35) | (4.04) | (2.77) | (7.52) | (.01) | (.03)D |
Total distributions | (1.88) | (4.41) | (3.36) | (8.18) | (.49) | (.42) |
Net asset value, end of period | $28.29 | $36.90 | $36.64 | $42.27 | $43.07 | $41.71 |
Total ReturnE,F | (19.33)% | 16.64% | (5.95)% | 20.13% | 4.57% | 1.36% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .83%I | .78% | .67% | .67% | .61% | .68% |
Expenses net of fee waivers, if any | .83%I | .78% | .67% | .67% | .61% | .68% |
Expenses net of all reductions | .82%I | .77% | .66% | .66% | .61% | .68% |
Net investment income (loss) | 1.38%I | 1.63%B | 1.22% | 1.88%C | 1.74% | 1.14% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $48 | $72 | $62 | $72 | $73 | $65 |
Portfolio turnover rateJ | 56%I | 66% | 72% | 46% | 121% | 9% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.34%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.53%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Value Strategies Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Fidelity Value Strategies Fund, Class K and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $86,792 |
Gross unrealized depreciation | (115,665) |
Net unrealized appreciation (depreciation) | $(28,873) |
Tax cost | $732,059 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Value Strategies Fund | 214,438 | 260,855 |
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 .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 Fidelity Value Strategies Fund as compared to its benchmark index, the Russell Midcap Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .55% 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% | $214 | $4 |
Class M | .25% | .25% | 488 | 16 |
Class C | .75% | .25% | 56 | 6 |
$758 | $26 |
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 | $9 |
Class M | 3 |
Class C(a) | 1 |
$13 |
(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 K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Effective February 1, 2020, the Board approved to change the fee for Class K 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 | $173 | .20 |
Class M | 171 | .18 |
Class C | 14 | .26 |
Fidelity Value Strategies Fund | 261 | .18 |
Class K | 10 | .04 |
Class I | 60 | .21 |
$689 |
(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 Strategies 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 Strategies Fund | $9 |
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, there 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 |
Borrower | $4,679 | 1.60% | $1 |
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 Value Strategies Fund | $1 |
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 $3. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. 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 $21 for the period. In addition, through arrangements with each class' transfer agent, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
Expense reduction | |
Class A | $–(a) |
Fidelity Value Strategies Fund | –(a) |
$–(a) |
(a) In the amount of less than five hundred dollars
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 $1.
In addition, during the period the investment adviser or an affiliate reimbursed the Fund $7 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 May 31, 2020 | Year ended November 30, 2019 | |
Distributions to shareholders | ||
Class A | $10,968 | $22,450 |
Class M | 11,294 | 27,028 |
Class C | 715 | 4,746 |
Fidelity Value Strategies Fund | 16,343 | 36,063 |
Class K | 2,635 | 5,601 |
Class I | 3,688 | 7,197 |
Total | $45,643 | $103,085 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Class A | ||||
Shares sold | 289 | 969 | $7,429 | $28,670 |
Reinvestment of distributions | 325 | 846 | 10,468 | 21,281 |
Shares redeemed | (632) | (916) | (16,891) | (27,439) |
Net increase (decrease) | (18) | 899 | $1,006 | $22,512 |
Class M | ||||
Shares sold | 149 | 304 | $4,359 | $9,555 |
Reinvestment of distributions | 306 | 943 | 10,508 | 25,185 |
Shares redeemed | (649) | (1,000) | (19,506) | (31,573) |
Net increase (decrease) | (194) | 247 | $(4,639) | $3,167 |
Class C | ||||
Shares sold | 77 | 113 | $1,519 | $2,924 |
Reinvestment of distributions | 26 | 220 | 705 | 4,703 |
Shares redeemed | (122) | (1,033) | (2,774) | (26,038) |
Net increase (decrease) | (19) | (700) | $(550) | $(18,411) |
Fidelity Value Strategies Fund | ||||
Shares sold | 1,354 | 1,167 | $46,579 | $41,078 |
Reinvestment of distributions | 399 | 1,135 | 15,456 | 33,995 |
Shares redeemed | (1,843) | (2,241) | (58,817) | (79,975) |
Net increase (decrease) | (90) | 61 | $3,218 | $(4,902) |
Class K | ||||
Shares sold | 397 | 536 | $13,849 | $20,032 |
Reinvestment of distributions | 68 | 187 | 2,635 | 5,601 |
Shares redeemed | (406) | (744) | (13,008) | (25,793) |
Net increase (decrease) | 59 | (21) | $3,476 | $(160) |
Class I | ||||
Shares sold | 172 | 563 | $5,314 | $18,493 |
Reinvestment of distributions | 97 | 244 | 3,475 | 6,804 |
Shares redeemed | (529) | (538) | (16,436) | (17,949) |
Net increase (decrease) | (260) | 269 | $(7,647) | $7,348 |
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 (December 1, 2019 to May 31, 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 December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Class A | 1.07% | |||
Actual | $1,000.00 | $805.60 | $4.83 | |
Hypothetical-C | $1,000.00 | $1,019.65 | $5.40 | |
Class M | 1.30% | |||
Actual | $1,000.00 | $805.00 | $5.87 | |
Hypothetical-C | $1,000.00 | $1,018.50 | $6.56 | |
Class C | 1.88% | |||
Actual | $1,000.00 | $802.50 | $8.47 | |
Hypothetical-C | $1,000.00 | $1,015.60 | $9.47 | |
Fidelity Value Strategies Fund | .80% | |||
Actual | $1,000.00 | $807.00 | $3.61 | |
Hypothetical-C | $1,000.00 | $1,021.00 | $4.04 | |
Class K | .66% | |||
Actual | $1,000.00 | $807.40 | $2.98 | |
Hypothetical-C | $1,000.00 | $1,021.70 | $3.34 | |
Class I | .83% | |||
Actual | $1,000.00 | $806.70 | $3.75 | |
Hypothetical-C | $1,000.00 | $1,020.85 | $4.19 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Value Strategies Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 Value Strategies Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613077571.jpg)
Fidelity Advisor Value Strategies Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613077843.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.
SO-SANN-0720
1.704744.122
Fidelity Advisor® Equity Income Fund
Semi-Annual Report
May 31, 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.
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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
Wells Fargo & Co. | 2.7 |
Bristol-Myers Squibb Co. | 2.6 |
Comcast Corp. Class A | 2.4 |
AbbVie, Inc. | 2.3 |
General Dynamics Corp. | 2.2 |
Capgemini SA | 2.1 |
UnitedHealth Group, Inc. | 2.0 |
Bank of America Corp. | 1.8 |
Verizon Communications, Inc. | 1.8 |
Amdocs Ltd. | 1.8 |
21.7 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Health Care | 19.2 |
Financials | 17.6 |
Industrials | 10.6 |
Information Technology | 9.2 |
Consumer Staples | 8.8 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020 * | ||
Stocks | 97.1% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.7% |
* Foreign investments - 15.4%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.1% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 7.5% | |||
Diversified Telecommunication Services - 1.8% | |||
Verizon Communications, Inc. | 405,190 | $23,250 | |
Entertainment - 1.4% | |||
Cinemark Holdings, Inc. | 208,100 | 3,128 | |
The Walt Disney Co. | 130,500 | 15,308 | |
18,436 | |||
Media - 4.3% | |||
Comcast Corp. Class A | 776,100 | 30,734 | |
Interpublic Group of Companies, Inc. | 742,000 | 12,696 | |
Omnicom Group, Inc. | 220,700 | 12,092 | |
55,522 | |||
TOTAL COMMUNICATION SERVICES | 97,208 | ||
CONSUMER DISCRETIONARY - 4.5% | |||
Hotels, Restaurants & Leisure - 0.4% | |||
Wyndham Destinations, Inc. | 165,900 | 5,276 | |
Household Durables - 0.6% | |||
Whirlpool Corp. | 69,700 | 8,491 | |
Internet & Direct Marketing Retail - 0.9% | |||
eBay, Inc. | 255,300 | 11,626 | |
Leisure Products - 0.1% | |||
New Academy Holding Co. LLC unit (a)(b)(c)(d) | 52,800 | 1,658 | |
Multiline Retail - 0.1% | |||
Nordstrom, Inc. (e) | 65,400 | 1,055 | |
Specialty Retail - 1.4% | |||
Gap, Inc. (e) | 246,500 | 2,194 | |
Lowe's Companies, Inc. | 90,300 | 11,771 | |
Ross Stores, Inc. | 40,100 | 3,888 | |
17,853 | |||
Textiles, Apparel & Luxury Goods - 1.0% | |||
adidas AG | 15,900 | 4,217 | |
Ralph Lauren Corp. | 27,700 | 2,092 | |
Tapestry, Inc. | 456,600 | 6,210 | |
12,519 | |||
TOTAL CONSUMER DISCRETIONARY | 58,478 | ||
CONSUMER STAPLES - 8.8% | |||
Beverages - 0.9% | |||
Keurig Dr. Pepper, Inc. | 66,700 | 1,862 | |
The Coca-Cola Co. | 207,100 | 9,667 | |
11,529 | |||
Food & Staples Retailing - 1.3% | |||
Kroger Co. | 259,100 | 8,452 | |
Sysco Corp. | 149,500 | 8,246 | |
16,698 | |||
Food Products - 0.7% | |||
General Mills, Inc. | 147,840 | 9,320 | |
Personal Products - 1.0% | |||
Unilever NV (NY Reg.) | 238,800 | 12,303 | |
Tobacco - 4.9% | |||
Altria Group, Inc. | 576,000 | 22,493 | |
British American Tobacco PLC sponsored ADR | 378,501 | 15,170 | |
Imperial Brands PLC | 355,898 | 6,446 | |
Philip Morris International, Inc. | 272,800 | 20,013 | |
64,122 | |||
TOTAL CONSUMER STAPLES | 113,972 | ||
ENERGY - 6.8% | |||
Oil, Gas & Consumable Fuels - 6.8% | |||
BP PLC sponsored ADR | 523,600 | 12,116 | |
Chevron Corp. | 183,569 | 16,833 | |
ConocoPhillips Co. | 161,600 | 6,816 | |
Enterprise Products Partners LP | 397,900 | 7,600 | |
Exxon Mobil Corp. | 490,000 | 22,280 | |
Noble Midstream Partners LP | 98,600 | 953 | |
The Williams Companies, Inc. | 672,450 | 13,738 | |
Valero Energy Corp. | 101,500 | 6,764 | |
Viper Energy Partners LP | 146,700 | 1,539 | |
88,639 | |||
FINANCIALS - 17.6% | |||
Banks - 7.8% | |||
Bank of America Corp. | 983,600 | 23,724 | |
Bank OZK | 402,200 | 9,045 | |
Citigroup, Inc. | 137,900 | 6,607 | |
East West Bancorp, Inc. | 157,800 | 5,515 | |
Huntington Bancshares, Inc. | 1,606,100 | 14,278 | |
PNC Financial Services Group, Inc. | 13,400 | 1,528 | |
The Toronto-Dominion Bank | 131,400 | 5,629 | |
Wells Fargo & Co. | 1,318,450 | 34,904 | |
101,230 | |||
Capital Markets - 3.1% | |||
Goldman Sachs Group, Inc. | 67,500 | 13,263 | |
Lazard Ltd. Class A | 239,300 | 6,428 | |
Northern Trust Corp. | 87,100 | 6,882 | |
State Street Corp. | 219,799 | 13,399 | |
39,972 | |||
Consumer Finance - 1.9% | |||
Capital One Financial Corp. | 224,800 | 15,295 | |
Synchrony Financial | 449,700 | 9,160 | |
24,455 | |||
Insurance - 4.4% | |||
AXA SA | 471,500 | 8,652 | |
Chubb Ltd. | 70,784 | 8,631 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 21,800 | 6,056 | |
First American Financial Corp. | 168,100 | 8,487 | |
Hartford Financial Services Group, Inc. | 132,200 | 5,062 | |
Old Republic International Corp. | 384,600 | 5,996 | |
The Travelers Companies, Inc. | 138,300 | 14,795 | |
57,679 | |||
Mortgage Real Estate Investment Trusts - 0.4% | |||
Starwood Property Trust, Inc. | 384,100 | 5,093 | |
TOTAL FINANCIALS | 228,429 | ||
HEALTH CARE - 19.2% | |||
Biotechnology - 3.4% | |||
AbbVie, Inc. | 322,200 | 29,858 | |
Amgen, Inc. | 61,049 | 14,023 | |
43,881 | |||
Health Care Providers & Services - 7.1% | |||
Anthem, Inc. | 53,400 | 15,705 | |
Cigna Corp. | 66,800 | 13,181 | |
CVS Health Corp. | 189,836 | 12,448 | |
Humana, Inc. | 29,400 | 12,073 | |
McKesson Corp. | 81,900 | 12,995 | |
UnitedHealth Group, Inc. | 85,200 | 25,973 | |
92,375 | |||
Pharmaceuticals - 8.7% | |||
Bristol-Myers Squibb Co. | 567,500 | 33,891 | |
Johnson & Johnson | 140,318 | 20,872 | |
Merck & Co., Inc. | 248,800 | 20,083 | |
Roche Holding AG (participation certificate) | 61,350 | 21,296 | |
Sanofi SA sponsored ADR | 327,500 | 16,084 | |
112,226 | |||
TOTAL HEALTH CARE | 248,482 | ||
INDUSTRIALS - 10.6% | |||
Aerospace & Defense - 2.8% | |||
General Dynamics Corp. | 189,300 | 27,795 | |
Raytheon Technologies Corp. | 128,307 | 8,278 | |
36,073 | |||
Electrical Equipment - 1.6% | |||
Hubbell, Inc. Class B | 72,000 | 8,814 | |
Regal Beloit Corp. | 156,300 | 12,432 | |
21,246 | |||
Industrial Conglomerates - 1.3% | |||
3M Co. | 41,400 | 6,477 | |
General Electric Co. | 1,634,554 | 10,739 | |
17,216 | |||
Machinery - 3.3% | |||
Allison Transmission Holdings, Inc. | 341,200 | 12,870 | |
ITT, Inc. | 118,100 | 6,814 | |
Otis Worldwide Corp. | 264,353 | 13,918 | |
Stanley Black & Decker, Inc. | 73,200 | 9,183 | |
42,785 | |||
Professional Services - 0.7% | |||
Intertrust NV (f) | 564,300 | 8,907 | |
Road & Rail - 0.4% | |||
Union Pacific Corp. | 33,200 | 5,639 | |
Trading Companies & Distributors - 0.5% | |||
HD Supply Holdings, Inc. (a) | 191,400 | 6,069 | |
TOTAL INDUSTRIALS | 137,935 | ||
INFORMATION TECHNOLOGY - 9.2% | |||
Communications Equipment - 1.4% | |||
Cisco Systems, Inc. | 385,453 | 18,432 | |
Electronic Equipment & Components - 0.7% | |||
TE Connectivity Ltd. | 109,700 | 8,913 | |
IT Services - 6.1% | |||
Amdocs Ltd. | 365,900 | 22,781 | |
Capgemini SA | 263,800 | 26,970 | |
Cognizant Technology Solutions Corp. Class A | 104,700 | 5,549 | |
Fidelity National Information Services, Inc. | 49,500 | 6,872 | |
Genpact Ltd. | 121,700 | 4,375 | |
IBM Corp. | 97,000 | 12,115 | |
78,662 | |||
Semiconductors & Semiconductor Equipment - 0.3% | |||
Broadcom, Inc. | 12,900 | 3,757 | |
Software - 0.7% | |||
Oracle Corp. | 81,400 | 4,377 | |
SS&C Technologies Holdings, Inc. | 77,100 | 4,464 | |
8,841 | |||
TOTAL INFORMATION TECHNOLOGY | 118,605 | ||
MATERIALS - 3.1% | |||
Chemicals - 2.3% | |||
CF Industries Holdings, Inc. | 156,500 | 4,596 | |
DuPont de Nemours, Inc. | 410,166 | 20,808 | |
Westlake Chemical Corp. | 89,100 | 4,250 | |
29,654 | |||
Containers & Packaging - 0.8% | |||
WestRock Co. | 361,200 | 10,135 | |
TOTAL MATERIALS | 39,789 | ||
REAL ESTATE - 2.9% | |||
Equity Real Estate Investment Trusts (REITs) - 2.9% | |||
Brandywine Realty Trust (SBI) | 763,500 | 7,368 | |
Corporate Office Properties Trust (SBI) | 189,300 | 4,727 | |
Highwoods Properties, Inc. (SBI) | 139,600 | 5,342 | |
Potlatch Corp. | 228,400 | 7,763 | |
Ryman Hospitality Properties, Inc. | 109,900 | 3,756 | |
SL Green Realty Corp. | 123,100 | 5,185 | |
Store Capital Corp. | 174,700 | 3,379 | |
37,520 | |||
UTILITIES - 6.9% | |||
Electric Utilities - 4.3% | |||
Duke Energy Corp. | 231,500 | 19,823 | |
Edison International | 220,064 | 12,788 | |
Exelon Corp. | 527,800 | 20,220 | |
Pinnacle West Capital Corp. | 34,500 | 2,688 | |
55,519 | |||
Independent Power and Renewable Electricity Producers - 0.3% | |||
Vistra Energy Corp. | 178,500 | 3,649 | |
Multi-Utilities - 2.3% | |||
CenterPoint Energy, Inc. | 954,000 | 16,962 | |
Dominion Energy, Inc. | 149,500 | 12,709 | |
29,671 | |||
TOTAL UTILITIES | 88,839 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,315,106) | 1,257,896 | ||
Other - 0.2% | |||
Energy - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) (c)(d)(g) | |||
(Cost $5,865) | 5,865,354 | 2,696 | |
Money Market Funds - 2.5% | |||
Fidelity Cash Central Fund 0.11% (h) | 29,464,295 | 29,470 | |
Fidelity Securities Lending Cash Central Fund 0.10% (h)(i) | 2,563,968 | 2,564 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $32,034) | 32,034 | ||
TOTAL INVESTMENT IN SECURITIES - 99.8% | |||
(Cost $1,353,005) | 1,292,626 | ||
NET OTHER ASSETS (LIABILITIES) - 0.2% | 3,018 | ||
NET ASSETS - 100% | $1,295,644 |
Legend
(a) Non-income producing
(b) Investment is owned by an entity that is treated as a U.S. Corporation for tax purposes in which the Fund holds a percentage ownership.
(c) Restricted securities (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 $4,354,000 or 0.3% of net assets.
(d) Level 3 security
(e) Security or a portion of the security is on loan at period end.
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $8,907,000 or 0.7% of net assets.
(g) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(i) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
New Academy Holding Co. LLC unit | 8/1/11 | $5,565 |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $5,865 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $73 |
Fidelity Securities Lending Cash Central Fund | 94 |
Total | $167 |
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 May 31, 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 | $97,208 | $97,208 | $-- | $-- |
Consumer Discretionary | 58,478 | 52,603 | 4,217 | 1,658 |
Consumer Staples | 113,972 | 113,972 | -- | -- |
Energy | 88,639 | 88,639 | -- | -- |
Financials | 228,429 | 219,777 | 8,652 | -- |
Health Care | 248,482 | 227,186 | 21,296 | -- |
Industrials | 137,935 | 137,935 | -- | -- |
Information Technology | 118,605 | 118,605 | -- | -- |
Materials | 39,789 | 39,789 | -- | -- |
Real Estate | 37,520 | 37,520 | -- | -- |
Utilities | 88,839 | 88,839 | -- | -- |
Other | 2,696 | -- | -- | 2,696 |
Money Market Funds | 32,034 | 32,034 | -- | -- |
Total Investments in Securities: | $1,292,626 | $1,254,107 | $34,165 | $4,354 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 84.6% |
France | 4.0% |
Switzerland | 3.1% |
United Kingdom | 2.6% |
Bailiwick of Guernsey | 1.8% |
Netherlands | 1.7% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 1.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $2,265) — See accompanying schedule: Unaffiliated issuers (cost $1,320,971) | $1,260,592 | |
Fidelity Central Funds (cost $32,034) | 32,034 | |
Total Investment in Securities (cost $1,353,005) | $1,292,626 | |
Restricted cash | 193 | |
Receivable for investments sold | 9,541 | |
Receivable for fund shares sold | 225 | |
Dividends receivable | 4,500 | |
Distributions receivable from Fidelity Central Funds | 3 | |
Other receivables | 62 | |
Total assets | 1,307,150 | |
Liabilities | ||
Payable for investments purchased | $6,553 | |
Payable for fund shares redeemed | 1,219 | |
Accrued management fee | 447 | |
Distribution and service plan fees payable | 359 | |
Other affiliated payables | 227 | |
Other payables and accrued expenses | 137 | |
Collateral on securities loaned | 2,564 | |
Total liabilities | 11,506 | |
Net Assets | $1,295,644 | |
Net Assets consist of: | ||
Paid in capital | $1,359,376 | |
Total accumulated earnings (loss) | (63,732) | |
Net Assets | $1,295,644 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($531,754 ÷ 21,821 shares)(a) | $24.37 | |
Maximum offering price per share (100/94.25 of $24.37) | $25.86 | |
Class M: | ||
Net Asset Value and redemption price per share ($507,632 ÷ 20,248 shares)(a) | $25.07 | |
Maximum offering price per share (100/96.50 of $25.07) | $25.98 | |
Class C: | ||
Net Asset Value and offering price per share ($64,452 ÷ 2,615 shares)(a) | $24.65 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($168,841 ÷ 6,550 shares) | $25.78 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($22,965 ÷ 892 shares) | $25.75 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $24,615 | |
Income from Fidelity Central Funds (including $94 from security lending) | 167 | |
Total income | 24,782 | |
Expenses | ||
Management fee | $3,072 | |
Transfer agent fees | 1,302 | |
Distribution and service plan fees | 2,468 | |
Accounting fees | 224 | |
Custodian fees and expenses | 20 | |
Independent trustees' fees and expenses | 4 | |
Registration fees | 47 | |
Audit | 30 | |
Legal | 2 | |
Miscellaneous | 40 | |
Total expenses before reductions | 7,209 | |
Expense reductions | (66) | |
Total expenses after reductions | 7,143 | |
Net investment income (loss) | 17,639 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (7,563) | |
Foreign currency transactions | (17) | |
Total net realized gain (loss) | (7,580) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (226,744) | |
Assets and liabilities in foreign currencies | 12 | |
Total change in net unrealized appreciation (depreciation) | (226,732) | |
Net gain (loss) | (234,312) | |
Net increase (decrease) in net assets resulting from operations | $(216,673) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $17,639 | $36,220 |
Net realized gain (loss) | (7,580) | 99,044 |
Change in net unrealized appreciation (depreciation) | (226,732) | 37,356 |
Net increase (decrease) in net assets resulting from operations | (216,673) | 172,620 |
Distributions to shareholders | (106,137) | (212,703) |
Share transactions - net increase (decrease) | (21,148) | (17,423) |
Total increase (decrease) in net assets | (343,958) | (57,506) |
Net Assets | ||
Beginning of period | 1,639,602 | 1,697,108 |
End of period | $1,295,644 | $1,639,602 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Equity Income Fund Class A
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $30.22 | $31.53 | $34.96 | $32.05 | $31.10 | $34.44 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .33 | .67 | .68 | .62 | .59 | .92 |
Net realized and unrealized gain (loss) | (4.15) | 2.08 | (.37)B | 3.32 | 3.13 | (2.15) |
Total from investment operations | (3.82) | 2.75 | .31 | 3.94 | 3.72 | (1.23) |
Distributions from net investment income | (.36) | (.65) | (.78) | (.58)C | (.66) | (.98) |
Distributions from net realized gain | (1.67) | (3.41) | (2.95) | (.46)C | (2.11) | (1.14) |
Total distributions | (2.03) | (4.06) | (3.74)D | (1.03)E | (2.77) | (2.11)F |
Net asset value, end of period | $24.37 | $30.22 | $31.53 | $34.96 | $32.05 | $31.10 |
Total ReturnG,H,I | (13.60)% | 11.73% | .77%B | 12.55% | 13.52% | (3.61)% |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | .93%L | .93% | .93% | .94% | .95% | .95% |
Expenses net of fee waivers, if any | .92%L | .92% | .93% | .94% | .95% | .95% |
Expenses net of all reductions | .92%L | .92% | .91% | .93% | .95% | .94% |
Net investment income (loss) | 2.58%L | 2.37% | 2.11% | 1.88% | 2.01% | 2.85% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $532 | $660 | $609 | $686 | $703 | $688 |
Portfolio turnover rateM | 73%L | 48% | 59% | 48% | 36% | 53% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been .64%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $3.74 per share is comprised of distributions from net investment income of $.783 and distributions from net realized gain of $2.952 per share.
E Total distributions of $1.03 per share is comprised of distributions from net investment income of $.577 and distributions from net realized gain of $.456 per share.
F Total distributions of $2.11 per share is comprised of distributions from net investment income of $.975 and distributions from net realized gain of $1.136 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Income Fund Class M
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.02 | $32.24 | $35.65 | $32.66 | $31.64 | $34.99 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .31 | .62 | .62 | .56 | .53 | .86 |
Net realized and unrealized gain (loss) | (4.27) | 2.15 | (.38)B | 3.38 | 3.19 | (2.18) |
Total from investment operations | (3.96) | 2.77 | .24 | 3.94 | 3.72 | (1.32) |
Distributions from net investment income | (.33) | (.58) | (.70) | (.50)C | (.59) | (.89) |
Distributions from net realized gain | (1.67) | (3.41) | (2.95) | (.46)C | (2.11) | (1.14) |
Total distributions | (1.99)D | (3.99) | (3.65) | (.95)E | (2.70) | (2.03) |
Net asset value, end of period | $25.07 | $31.02 | $32.24 | $35.65 | $32.66 | $31.64 |
Total ReturnF,G,H | (13.70)% | 11.46% | .56%B | 12.29% | 13.24% | (3.83)% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.16%K | 1.16% | 1.16% | 1.17% | 1.18% | 1.18% |
Expenses net of fee waivers, if any | 1.16%K | 1.16% | 1.16% | 1.17% | 1.18% | 1.18% |
Expenses net of all reductions | 1.15%K | 1.16% | 1.15% | 1.17% | 1.18% | 1.17% |
Net investment income (loss) | 2.35%K | 2.14% | 1.88% | 1.64% | 1.78% | 2.62% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $508 | $642 | $662 | $775 | $787 | $813 |
Portfolio turnover rateL | 73%K | 48% | 59% | 48% | 36% | 53% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been .43%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $1.99 per share is comprised of distributions from net investment income of $.326 and distributions from net realized gain of $1.668 per share.
E Total distributions of $.95 per share is comprised of distributions from net investment income of $.495 and distributions from net realized gain of $.456 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Income Fund Class C
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $30.52 | $31.73 | $35.15 | $32.21 | $31.24 | $34.57 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .23 | .45 | .44 | .37 | .37 | .68 |
Net realized and unrealized gain (loss) | (4.18) | 2.12 | (.39)B | 3.35 | 3.14 | (2.15) |
Total from investment operations | (3.95) | 2.57 | .05 | 3.72 | 3.51 | (1.47) |
Distributions from net investment income | (.25) | (.37) | (.52) | (.32)C | (.43) | (.72) |
Distributions from net realized gain | (1.67) | (3.41) | (2.95) | (.46)C | (2.11) | (1.14) |
Total distributions | (1.92) | (3.78) | (3.47) | (.78) | (2.54) | (1.86) |
Net asset value, end of period | $24.65 | $30.52 | $31.73 | $35.15 | $32.21 | $31.24 |
Total ReturnD,E,F | (13.94)% | 10.86% | (.01)%B | 11.72% | 12.63% | (4.34)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.72%I | 1.72% | 1.70% | 1.70% | 1.72% | 1.72% |
Expenses net of fee waivers, if any | 1.72%I | 1.71% | 1.69% | 1.70% | 1.72% | 1.71% |
Expenses net of all reductions | 1.71%I | 1.71% | 1.68% | 1.70% | 1.71% | 1.71% |
Net investment income (loss) | 1.78%I | 1.58% | 1.34% | 1.11% | 1.24% | 2.09% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $64 | $84 | $160 | $195 | $198 | $187 |
Portfolio turnover rateJ | 73%I | 48% | 59% | 48% | 36% | 53% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been (.14)%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total returns 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 Equity Income Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.85 | $32.99 | $36.40 | $33.31 | $32.21 | $35.59 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .39 | .78 | .80 | .74 | .69 | 1.04 |
Net realized and unrealized gain (loss) | (4.39) | 2.21 | (.39)B | 3.46 | 3.26 | (2.23) |
Total from investment operations | (4.00) | 2.99 | .41 | 4.20 | 3.95 | (1.19) |
Distributions from net investment income | (.40) | (.72) | (.87) | (.65)C | (.74) | (1.06) |
Distributions from net realized gain | (1.67) | (3.41) | (2.95) | (.46)C | (2.11) | (1.14) |
Total distributions | (2.07) | (4.13) | (3.82) | (1.11) | (2.85) | (2.19)D |
Net asset value, end of period | $25.78 | $31.85 | $32.99 | $36.40 | $33.31 | $32.21 |
Total ReturnE,F | (13.48)% | 12.00% | 1.05%B | 12.86% | 13.82% | (3.37)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .67%I | .67% | .67% | .68% | .69% | .69% |
Expenses net of fee waivers, if any | .67%I | .67% | .67% | .68% | .69% | .69% |
Expenses net of all reductions | .66%I | .67% | .66% | .68% | .68% | .69% |
Net investment income (loss) | 2.84%I | 2.63% | 2.37% | 2.14% | 2.27% | 3.11% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $169 | $227 | $243 | $269 | $439 | $428 |
Portfolio turnover rateJ | 73%I | 48% | 59% | 48% | 36% | 53% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been .92%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $2.19 per share is comprised of distributions from net investment income of $1.058 and distributions from net realized gain of $1.136 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Income Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.82 | $32.96 | $36.38 | $33.30 | $32.21 | $35.59 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .41 | .82 | .85 | .79 | .74 | 1.08 |
Net realized and unrealized gain (loss) | (4.39) | 2.21 | (.40)B | 3.46 | 3.24 | (2.21) |
Total from investment operations | (3.98) | 3.03 | .45 | 4.25 | 3.98 | (1.13) |
Distributions from net investment income | (.42) | (.77) | (.91) | (.71)C | (.79) | (1.11) |
Distributions from net realized gain | (1.67) | (3.41) | (2.95) | (.46)C | (2.11) | (1.14) |
Total distributions | (2.09) | (4.17)D | (3.87)E | (1.17) | (2.89)F | (2.25) |
Net asset value, end of period | $25.75 | $31.82 | $32.96 | $36.38 | $33.30 | $32.21 |
Total ReturnG,H | (13.42)% | 12.18% | 1.16%B | 13.02% | 13.96% | (3.20)% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .53%K | .53% | .53% | .54% | .54% | .54% |
Expenses net of fee waivers, if any | .53%K | .53% | .53% | .53% | .54% | .54% |
Expenses net of all reductions | .52%K | .52% | .52% | .53% | .53% | .53% |
Net investment income (loss) | 2.98%K | 2.77% | 2.51% | 2.28% | 2.42% | 3.26% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $23 | $27 | $22 | $23 | $15 | $14 |
Portfolio turnover rateL | 73%K | 48% | 59% | 48% | 36% | 53% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 1.03%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $4.17 per share is comprised of distributions from net investment income of $.767 and distributions from net realized gain of $3.407 per share.
E Total distributions of $3.87 per share is comprised of distributions from net investment income of $.914 and distributions from net realized gain of $2.952 per share.
F Total distributions of $2.89 per share is comprised of distributions from net investment income of $.788 and distributions from net realized gain of $2.106 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Equity Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $59 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 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, contingent interest, equity-debt classifications, certain conversion ratio adjustments, partnerships, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $146,510 |
Gross unrealized depreciation | (211,833) |
Net unrealized appreciation (depreciation) | $(65,323) |
Tax cost | $1,357,949 |
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.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $2,889 in this Subsidiary, representing .22% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Equity Income Fund | 513,552 | 619,407 |
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 .20% 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. For the reporting period, the total annualized management fee rate was .43% 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% | $722 | $13 |
Class M | .25% | .25% | 1,385 | 15 |
Class C | .75% | .25% | 361 | 26 |
$2,468 | $54 |
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 | $33 |
Class M | 8 |
Class C(a) | 3 |
$44 |
(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 | $552 | .19 |
Class M | 484 | .17 |
Class C | 85 | .24 |
Class I | 176 | .19 |
Class Z | 5 | .04 |
$1,302 |
(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 Equity Income 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 Equity Income Fund | $17 |
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.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $5.
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 Equity Income 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 $6. 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 $48 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, 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 $2.
During the period, transfer agent credits reduced each class' expenses as noted in the table below.
Expense reduction | |
Class A | $–(a) |
(a) In the amount of less than five hundred dollars
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 $3.
In addition, during the period the investment adviser or an affiliate reimbursed the Fund $13 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 May 31, 2020 | Year ended November 30, 2019 | |
Distributions to shareholders | ||
Class A | $44,083 | $79,342 |
Class M | 40,445 | 81,721 |
Class C | 5,201 | 18,262 |
Class I | 14,604 | 30,468 |
Class Z | 1,804 | 2,910 |
Total | $106,137 | $212,703 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Class A | ||||
Shares sold | 727 | 3,496 | $18,640 | $96,604 |
Reinvestment of distributions | 1,465 | 3,004 | 41,874 | 74,808 |
Shares redeemed | (2,202) | (3,985) | (56,363) | (110,872) |
Net increase (decrease) | (10) | 2,515 | $4,151 | $60,540 |
Class M | ||||
Shares sold | 871 | 1,514 | $22,580 | $43,215 |
Reinvestment of distributions | 1,345 | 3,147 | 39,711 | 80,190 |
Shares redeemed | (2,675) | (4,498) | (71,291) | (128,411) |
Net increase (decrease) | (459) | 163 | $(9,000) | $(5,006) |
Class C | ||||
Shares sold | 174 | 409 | $4,573 | $11,241 |
Reinvestment of distributions | 166 | 709 | 4,867 | 17,599 |
Shares redeemed | (462) | (3,423) | (11,685) | (95,487) |
Net increase (decrease) | (122) | (2,305) | $(2,245) | $(66,647) |
Class I | ||||
Shares sold | 502 | 1,418 | $13,795 | $40,915 |
Reinvestment of distributions | 417 | 1,008 | 12,568 | 26,374 |
Shares redeemed | (1,497) | (2,676) | (41,995) | (78,064) |
Net increase (decrease) | (578) | (250) | $(15,632) | $(10,775) |
Class Z | ||||
Shares sold | 131 | 451 | $3,708 | $12,949 |
Reinvestment of distributions | 55 | 100 | 1,648 | 2,630 |
Shares redeemed | (146) | (376) | (3,778) | (11,114) |
Net increase (decrease) | 40 | 175 | $1,578 | $4,465 |
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 (December 1, 2019 to May 31, 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 December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Class A | .92% | |||
Actual | $1,000.00 | $864.00 | $4.29 | |
Hypothetical-C | $1,000.00 | $1,020.40 | $4.65 | |
Class M | 1.16% | |||
Actual | $1,000.00 | $863.00 | $5.40 | |
Hypothetical-C | $1,000.00 | $1,019.20 | $5.86 | |
Class C | 1.72% | |||
Actual | $1,000.00 | $860.60 | $8.00 | |
Hypothetical-C | $1,000.00 | $1,016.40 | $8.67 | |
Class I | .67% | |||
Actual | $1,000.00 | $865.20 | $3.12 | |
Hypothetical-C | $1,000.00 | $1,021.65 | $3.39 | |
Class Z | .53% | |||
Actual | $1,000.00 | $865.80 | $2.47 | |
Hypothetical-C | $1,000.00 | $1,022.35 | $2.68 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Equity Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 2017 and January 2018. The Board will continue to monitor closely the fund's performance, taking into account the portfolio management changes.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 Equity Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613066444.jpg)
Fidelity Advisor Equity Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613066768.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.
EPI-SANN-0720
1.704674.122
Fidelity Advisor® Equity Growth Fund
Semi-Annual Report
May 31, 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.
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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
Microsoft Corp. | 9.1 |
Alphabet, Inc. Class A | 6.4 |
Amazon.com, Inc. | 5.3 |
Apple, Inc. | 4.7 |
Facebook, Inc. Class A | 4.7 |
Adobe, Inc. | 3.5 |
NVIDIA Corp. | 3.4 |
Visa, Inc. Class A | 3.0 |
Qualcomm, Inc. | 2.1 |
American Tower Corp. | 2.0 |
44.2 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Information Technology | 37.0 |
Health Care | 17.3 |
Communication Services | 14.9 |
Consumer Discretionary | 13.3 |
Industrials | 5.6 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020* | ||
Stocks | 99.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.4% |
* Foreign investments – 14.9%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 14.9% | |||
Diversified Telecommunication Services - 0.2% | |||
Bandwidth, Inc. (a) | 57,100 | $6,330 | |
Entertainment - 2.0% | |||
Activision Blizzard, Inc. | 528,866 | 38,068 | |
CD Projekt RED SA | 84,964 | 8,553 | |
Electronic Arts, Inc. (a) | 188,276 | 23,135 | |
69,756 | |||
Interactive Media & Services - 12.7% | |||
Alphabet, Inc. Class A (a) | 152,548 | 218,681 | |
Facebook, Inc. Class A (a) | 716,431 | 161,261 | |
Tencent Holdings Ltd. | 909,883 | 49,276 | |
Wise Talent Information Technology Co. Ltd. (a) | 1,571,000 | 3,722 | |
432,940 | |||
TOTAL COMMUNICATION SERVICES | 509,026 | ||
CONSUMER DISCRETIONARY - 13.3% | |||
Automobiles - 1.0% | |||
Ferrari NV | 123,875 | 20,899 | |
Tesla, Inc. (a) | 16,000 | 13,360 | |
34,259 | |||
Diversified Consumer Services - 0.3% | |||
Laureate Education, Inc. Class A (a) | 1,061,844 | 10,332 | |
Hotels, Restaurants & Leisure - 0.8% | |||
Dalata Hotel Group PLC | 114,900 | 415 | |
Starbucks Corp. | 355,500 | 27,725 | |
28,140 | |||
Household Durables - 1.2% | |||
Blu Investments LLC (b)(c) | 12,123,162 | 21 | |
D.R. Horton, Inc. | 470,197 | 26,002 | |
NVR, Inc. (a) | 4,961 | 15,982 | |
42,005 | |||
Internet & Direct Marketing Retail - 8.3% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 206,566 | 42,840 | |
Amazon.com, Inc. (a) | 74,293 | 181,451 | |
Delivery Hero AG (a)(d) | 43,500 | 4,161 | |
Fiverr International Ltd. (e) | 21,282 | 1,386 | |
Pinduoduo, Inc. ADR (a) | 336,556 | 22,505 | |
The Booking Holdings, Inc. (a) | 16,551 | 27,134 | |
The RealReal, Inc. (e) | 358,000 | 4,801 | |
284,278 | |||
Leisure Products - 0.2% | |||
Peloton Interactive, Inc. Class A (a) | 143,800 | 6,067 | |
Specialty Retail - 0.6% | |||
National Vision Holdings, Inc. (a) | 41,784 | 1,119 | |
Ross Stores, Inc. | 190,819 | 18,502 | |
19,621 | |||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Aritzia LP (a) | 90,600 | 1,194 | |
Capri Holdings Ltd. (a) | 236,600 | 3,558 | |
LVMH Moet Hennessy Louis Vuitton SE | 56,279 | 23,610 | |
PVH Corp. | 43,000 | 1,955 | |
Tapestry, Inc. | 119,500 | 1,625 | |
31,942 | |||
TOTAL CONSUMER DISCRETIONARY | 456,644 | ||
CONSUMER STAPLES - 4.7% | |||
Beverages - 1.5% | |||
Fever-Tree Drinks PLC | 574 | 15 | |
Kweichow Moutai Co. Ltd. (A Shares) | 100,813 | 19,303 | |
Monster Beverage Corp. (a) | 456,700 | 32,841 | |
52,159 | |||
Food & Staples Retailing - 0.2% | |||
Performance Food Group Co. (a) | 226,900 | 6,047 | |
Food Products - 0.1% | |||
The Simply Good Foods Co. (a) | 247,508 | 4,215 | |
Household Products - 1.4% | |||
Energizer Holdings, Inc. (e) | 535,514 | 23,498 | |
Reckitt Benckiser Group PLC | 263,213 | 23,575 | |
47,073 | |||
Personal Products - 1.5% | |||
Estee Lauder Companies, Inc. Class A | 125,744 | 24,831 | |
Herbalife Nutrition Ltd. (a) | 611,800 | 26,821 | |
51,652 | |||
TOTAL CONSUMER STAPLES | 161,146 | ||
ENERGY - 1.1% | |||
Oil, Gas & Consumable Fuels - 1.1% | |||
Reliance Industries Ltd. | 1,883,261 | 36,477 | |
Reliance Industries Ltd. rights (a) | 130,164 | 382 | |
36,859 | |||
FINANCIALS - 1.9% | |||
Banks - 0.4% | |||
HDFC Bank Ltd. | 136,892 | 1,734 | |
HDFC Bank Ltd. sponsored ADR | 247,581 | 10,356 | |
Metro Bank PLC (a)(e) | 48,880 | 43 | |
12,133 | |||
Capital Markets - 1.3% | |||
CME Group, Inc. | 144,249 | 26,340 | |
Goldman Sachs Group, Inc. | 57,200 | 11,239 | |
JMP Group, Inc. | 137,116 | 395 | |
MSCI, Inc. | 6,511 | 2,141 | |
Tradeweb Markets, Inc. Class A | 42,493 | 2,803 | |
XP, Inc. Class A (a) | 31,500 | 956 | |
43,874 | |||
Consumer Finance - 0.2% | |||
Capital One Financial Corp. | 112,300 | 7,641 | |
TOTAL FINANCIALS | 63,648 | ||
HEALTH CARE - 17.3% | |||
Biotechnology - 7.9% | |||
AbbVie, Inc. | 518,558 | 48,055 | |
ACADIA Pharmaceuticals, Inc. (a) | 32,200 | 1,600 | |
Affimed NV (a) | 341,485 | 1,123 | |
Aimmune Therapeutics, Inc. (a)(e) | 202,418 | 3,362 | |
Applied Therapeutics, Inc. (a) | 85,800 | 3,906 | |
Atara Biotherapeutics, Inc. (a) | 235,700 | 2,711 | |
BioNTech SE ADR (a) | 277,707 | 13,755 | |
CRISPR Therapeutics AG (a)(e) | 55,300 | 3,571 | |
Cytokinetics, Inc. (a) | 299,383 | 6,200 | |
Galapagos Genomics NV sponsored ADR (a) | 56,600 | 11,477 | |
Gamida Cell Ltd. (a) | 755,868 | 4,256 | |
Gilead Sciences, Inc. | 207,000 | 16,111 | |
Global Blood Therapeutics, Inc. (a) | 11,827 | 827 | |
Innovent Biologics, Inc. (a)(d) | 623,000 | 3,421 | |
Insmed, Inc. (a) | 732,689 | 17,797 | |
Neurocrine Biosciences, Inc. (a) | 251,600 | 31,390 | |
Regeneron Pharmaceuticals, Inc. (a) | 103,800 | 63,610 | |
Rubius Therapeutics, Inc. (a) | 31,096 | 201 | |
Sarepta Therapeutics, Inc. (a) | 12,700 | 1,934 | |
Vertex Pharmaceuticals, Inc. (a) | 110,659 | 31,865 | |
Viela Bio, Inc. | 31,000 | 1,454 | |
268,626 | |||
Health Care Equipment & Supplies - 2.5% | |||
Axonics Modulation Technologies, Inc. (a)(e) | 136,400 | 5,002 | |
Danaher Corp. | 156,597 | 26,091 | |
Haemonetics Corp. (a) | 64,607 | 7,086 | |
Intuitive Surgical, Inc. (a) | 60,491 | 35,087 | |
Nevro Corp. (a) | 50,300 | 6,318 | |
Penumbra, Inc. (a) | 34,886 | 6,015 | |
85,599 | |||
Health Care Providers & Services - 1.5% | |||
Guardant Health, Inc. (a) | 20,115 | 1,818 | |
UnitedHealth Group, Inc. | 164,292 | 50,084 | |
51,902 | |||
Health Care Technology - 0.9% | |||
Inspire Medical Systems, Inc. (a) | 129,511 | 10,560 | |
Veeva Systems, Inc. Class A (a) | 92,803 | 20,312 | |
30,872 | |||
Life Sciences Tools & Services - 1.9% | |||
10X Genomics, Inc. (a) | 62,996 | 4,912 | |
Bruker Corp. | 319,537 | 13,830 | |
Charles River Laboratories International, Inc. (a) | 29,100 | 5,228 | |
Codexis, Inc. (a)(e) | 283,204 | 3,517 | |
Nanostring Technologies, Inc. (a) | 146,600 | 4,476 | |
Thermo Fisher Scientific, Inc. | 90,670 | 31,661 | |
63,624 | |||
Pharmaceuticals - 2.6% | |||
AstraZeneca PLC sponsored ADR | 726,630 | 39,674 | |
Eli Lilly & Co. | 250,100 | 38,253 | |
Sanofi SA | 122,300 | 11,963 | |
89,890 | |||
TOTAL HEALTH CARE | 590,513 | ||
INDUSTRIALS - 5.6% | |||
Aerospace & Defense - 0.3% | |||
TransDigm Group, Inc. | 24,182 | 10,273 | |
Airlines - 0.4% | |||
Ryanair Holdings PLC sponsored ADR (a) | 181,100 | 12,998 | |
Commercial Services & Supplies - 0.3% | |||
Cintas Corp. | 47,100 | 11,679 | |
Electrical Equipment - 0.5% | |||
Generac Holdings, Inc. (a) | 159,500 | 17,748 | |
Industrial Conglomerates - 0.7% | |||
General Electric Co. | 1,157,400 | 7,604 | |
Roper Technologies, Inc. | 41,926 | 16,510 | |
24,114 | |||
Machinery - 0.6% | |||
Gardner Denver Holdings, Inc. (a) | 709,072 | 19,996 | |
Professional Services - 1.1% | |||
Equifax, Inc. | 249,736 | 38,349 | |
Upwork, Inc. (a) | 7,483 | 93 | |
38,442 | |||
Road & Rail - 1.6% | |||
Rumo SA (a) | 2,028,300 | 8,564 | |
Uber Technologies, Inc. | 1,262,672 | 45,860 | |
54,424 | |||
Trading Companies & Distributors - 0.1% | |||
Fastenal Co. | 42,100 | 1,737 | |
TOTAL INDUSTRIALS | 191,411 | ||
INFORMATION TECHNOLOGY - 37.0% | |||
Electronic Equipment & Components - 0.8% | |||
FLIR Systems, Inc. | 88,000 | 4,066 | |
II-VI, Inc. (a) | 119,700 | 5,689 | |
Novanta, Inc. (a) | 7,400 | 760 | |
SYNNEX Corp. | 117,300 | 12,510 | |
Zebra Technologies Corp. Class A (a) | 11,900 | 3,110 | |
26,135 | |||
IT Services - 7.2% | |||
Adyen BV (a)(d) | 6,000 | 7,879 | |
Black Knight, Inc. (a) | 361,095 | 27,797 | |
CACI International, Inc. Class A (a) | 6,600 | 1,655 | |
Edenred SA | 12,148 | 507 | |
Edenred SA rights 5/29/20 (a)(e)(f) | 69,600 | 54 | |
MasterCard, Inc. Class A | 86,327 | 25,975 | |
MongoDB, Inc. Class A (a)(e) | 88,500 | 20,542 | |
Okta, Inc. (a) | 51,989 | 10,168 | |
Shopify, Inc. Class A (a) | 38,678 | 29,355 | |
Square, Inc. (a) | 261,600 | 21,211 | |
Visa, Inc. Class A | 517,589 | 101,054 | |
246,197 | |||
Semiconductors & Semiconductor Equipment - 9.2% | |||
ASML Holding NV | 88,967 | 29,316 | |
Enphase Energy, Inc. (a) | 124,200 | 7,227 | |
Lam Research Corp. | 12,100 | 3,311 | |
Micron Technology, Inc. (a) | 497,800 | 23,850 | |
Monolithic Power Systems, Inc. | 10,200 | 2,139 | |
NVIDIA Corp. | 330,399 | 117,298 | |
NXP Semiconductors NV | 286,536 | 27,536 | |
Qualcomm, Inc. | 901,060 | 72,878 | |
Semiconductor Manufacturing International Corp. (a) | 299,500 | 657 | |
SolarEdge Technologies, Inc. (a) | 35,000 | 4,967 | |
Teradyne, Inc. | 138,500 | 9,282 | |
Universal Display Corp. | 106,200 | 15,569 | |
314,030 | |||
Software - 15.1% | |||
Adobe, Inc. (a) | 308,996 | 119,458 | |
Cloudflare, Inc. (a) | 73,954 | 2,150 | |
Datadog, Inc. Class A (a) | 7,677 | 547 | |
Elastic NV (a) | 3,012 | 259 | |
Manhattan Associates, Inc. (a) | 154,027 | 13,616 | |
Microsoft Corp. | 1,706,832 | 312,773 | |
Salesforce.com, Inc. (a) | 393,390 | 68,761 | |
517,564 | |||
Technology Hardware, Storage & Peripherals - 4.7% | |||
Apple, Inc. | 511,200 | 162,531 | |
TOTAL INFORMATION TECHNOLOGY | 1,266,457 | ||
MATERIALS - 1.3% | |||
Chemicals - 1.3% | |||
Albemarle Corp. U.S. (e) | 84,800 | 6,489 | |
DuPont de Nemours, Inc. | 239,400 | 12,145 | |
Ecolab, Inc. | 16,300 | 3,465 | |
Sherwin-Williams Co. | 37,231 | 22,110 | |
44,209 | |||
REAL ESTATE - 2.5% | |||
Equity Real Estate Investment Trusts (REITs) - 2.2% | |||
American Tower Corp. | 267,139 | 68,967 | |
Simon Property Group, Inc. | 118,000 | 6,809 | |
75,776 | |||
Real Estate Management & Development - 0.3% | |||
CBRE Group, Inc. (a) | 211,100 | 9,284 | |
TOTAL REAL ESTATE | 85,060 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,061,666) | 3,404,973 | ||
Convertible Preferred Stocks - 0.0% | |||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Nuvation Bio, Inc. Series A (b)(c)(f) | 951,500 | 894 | |
INFORMATION TECHNOLOGY - 0.0% | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(b)(c) | 105,425 | 3 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $734) | 897 | ||
Money Market Funds - 1.5% | |||
Fidelity Cash Central Fund 0.11% (g) | 8,681,196 | 8,683 | |
Fidelity Securities Lending Cash Central Fund 0.10% (g)(h) | 43,399,319 | 43,404 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $52,087) | 52,087 | ||
TOTAL INVESTMENT IN SECURITIES - 101.1% | |||
(Cost $2,114,487) | 3,457,957 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (39,299) | ||
NET ASSETS - 100% | $3,418,658 |
Legend
(a) Non-income producing
(b) 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 $918,000 or 0.0% of net assets.
(c) Level 3 security
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $15,461,000 or 0.5% of net assets.
(e) Security or a portion of the security is on loan at period end.
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
AppNexus, Inc. Series E (Escrow) | 8/1/14 | $0 |
Blu Investments LLC | 5/21/20 | $21 |
Nuvation Bio, Inc. Series A | 6/17/19 | $734 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $57 |
Fidelity Securities Lending Cash Central Fund | 549 |
Total | $606 |
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 May 31, 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 | $509,026 | $456,028 | $52,998 | $-- |
Consumer Discretionary | 456,644 | 433,013 | 23,610 | 21 |
Consumer Staples | 161,146 | 137,571 | 23,575 | -- |
Energy | 36,859 | 36,859 | -- | -- |
Financials | 63,648 | 61,914 | 1,734 | -- |
Health Care | 591,407 | 575,129 | 15,384 | 894 |
Industrials | 191,411 | 191,411 | -- | -- |
Information Technology | 1,266,460 | 1,265,800 | 657 | 3 |
Materials | 44,209 | 44,209 | -- | -- |
Real Estate | 85,060 | 85,060 | -- | -- |
Money Market Funds | 52,087 | 52,087 | -- | -- |
Total Investments in Securities: | $3,457,957 | $3,339,081 | $117,958 | $918 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 85.1% |
Cayman Islands | 4.5% |
Netherlands | 2.5% |
United Kingdom | 1.9% |
India | 1.5% |
France | 1.0% |
Others (Individually Less Than 1%) | 3.5% |
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) | May 31, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $43,819) — See accompanying schedule: Unaffiliated issuers (cost $2,062,400) | $3,405,870 | |
Fidelity Central Funds (cost $52,087) | 52,087 | |
Total Investment in Securities (cost $2,114,487) | $3,457,957 | |
Receivable for investments sold | 9,799 | |
Receivable for fund shares sold | 1,658 | |
Dividends receivable | 2,301 | |
Distributions receivable from Fidelity Central Funds | 14 | |
Prepaid expenses | 1 | |
Other receivables | 88 | |
Total assets | 3,471,818 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $3,710 | |
Delayed delivery | 421 | |
Payable for fund shares redeemed | 2,100 | |
Accrued management fee | 1,451 | |
Distribution and service plan fees payable | 895 | |
Other affiliated payables | 500 | |
Other payables and accrued expenses | 685 | |
Collateral on securities loaned | 43,398 | |
Total liabilities | 53,160 | |
Net Assets | $3,418,658 | |
Net Assets consist of: | ||
Paid in capital | $1,952,202 | |
Total accumulated earnings (loss) | 1,466,456 | |
Net Assets | $3,418,658 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($1,134,437 ÷ 85,307.4 shares)(a) | $13.30 | |
Maximum offering price per share (100/94.25 of $13.30) | $14.11 | |
Class M: | ||
Net Asset Value and redemption price per share ($1,462,743 ÷ 112,918.2 shares)(a) | $12.95 | |
Maximum offering price per share (100/96.50 of $12.95) | $13.42 | |
Class C: | ||
Net Asset Value and offering price per share ($107,846 ÷ 9,954.9 shares)(a) | $10.83 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($586,694 ÷ 39,465.0 shares) | $14.87 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($126,938 ÷ 8,454.5 shares) | $15.01 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $13,320 | |
Income from Fidelity Central Funds (including $549 from security lending) | 606 | |
Total income | 13,926 | |
Expenses | ||
Management fee | $8,528 | |
Transfer agent fees | 2,627 | |
Distribution and service plan fees | 5,291 | |
Accounting fees | 469 | |
Custodian fees and expenses | 39 | |
Independent trustees' fees and expenses | 9 | |
Registration fees | 62 | |
Audit | 39 | |
Legal | 7 | |
Interest | 7 | |
Miscellaneous | 69 | |
Total expenses before reductions | 17,147 | |
Expense reductions | (57) | |
Total expenses after reductions | 17,090 | |
Net investment income (loss) | (3,164) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 134,779 | |
Fidelity Central Funds | (1) | |
Total net realized gain (loss) | 134,778 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $148) | 212,038 | |
Assets and liabilities in foreign currencies | 2 | |
Total change in net unrealized appreciation (depreciation) | 212,040 | |
Net gain (loss) | 346,818 | |
Net increase (decrease) in net assets resulting from operations | $343,654 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(3,164) | $(7,326) |
Net realized gain (loss) | 134,778 | 363,791 |
Change in net unrealized appreciation (depreciation) | 212,040 | 175,101 |
Net increase (decrease) in net assets resulting from operations | 343,654 | 531,566 |
Distributions to shareholders | (289,806) | (189,976) |
Share transactions - net increase (decrease) | 137,475 | (272,517) |
Total increase (decrease) in net assets | 191,323 | 69,073 |
Net Assets | ||
Beginning of period | 3,227,335 | 3,158,262 |
End of period | $3,418,658 | $3,227,335 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Equity Growth Fund Class A
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 A | 2017 A | 2016 A | 2015 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.07 | $11.84 | $12.26 | $9.61 | $9.88 | $9.38 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.01) | (.02) | (.01) | (.01) | (.02) | (.01) |
Net realized and unrealized gain (loss) | 1.42 | 1.97 | .93 | 3.24 | (.01) | .51 |
Total from investment operations | 1.41 | 1.95 | .92 | 3.23 | (.03) | .50 |
Distributions from net realized gain | (1.18) | (.72) | (1.34) | (.58) | (.24) | – |
Total distributions | (1.18) | (.72) | (1.34) | (.58) | (.24) | – |
Net asset value, end of period | $13.30 | $13.07 | $11.84 | $12.26 | $9.61 | $9.88 |
Total ReturnC,D,E | 11.42% | 18.34% | 8.38% | 35.72% | (.39)% | 5.34% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.00%H | 1.01% | 1.02% | 1.03% | 1.05% | 1.05% |
Expenses net of fee waivers, if any | 1.00%H | 1.01% | 1.01% | 1.03% | 1.05% | 1.05% |
Expenses net of all reductions | 1.00%H | 1.01% | 1.01% | 1.03% | 1.05% | 1.04% |
Net investment income (loss) | (.13)%H | (.16)% | (.09)% | (.12)% | (.25)% | (.13)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,134 | $1,049 | $865 | $843 | $803 | $887 |
Portfolio turnover rateI | 53%H | 49%J | 37% | 48% | 60% | 63% |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Growth Fund Class M
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 A | 2017 A | 2016 A | 2015 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.78 | $11.61 | $12.05 | $9.47 | $9.77 | $9.29 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.02) | (.05) | (.04) | (.04) | (.04) | (.03) |
Net realized and unrealized gain (loss) | 1.37 | 1.94 | .91 | 3.20 | (.02) | .51 |
Total from investment operations | 1.35 | 1.89 | .87 | 3.16 | (.06) | .48 |
Distributions from net realized gain | (1.18) | (.72) | (1.31) | (.58) | (.24) | – |
Total distributions | (1.18) | (.72) | (1.31) | (.58) | (.24) | – |
Net asset value, end of period | $12.95 | $12.78 | $11.61 | $12.05 | $9.47 | $9.77 |
Total ReturnC,D,E | 11.20% | 18.18% | 8.07% | 35.41% | (.62)% | 5.10% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.24%H | 1.25% | 1.25% | 1.26% | 1.28% | 1.27% |
Expenses net of fee waivers, if any | 1.24%H | 1.25% | 1.25% | 1.26% | 1.27% | 1.27% |
Expenses net of all reductions | 1.24%H | 1.24% | 1.24% | 1.26% | 1.27% | 1.27% |
Net investment income (loss) | (.37)%H | (.40)% | (.32)% | (.36)% | (.48)% | (.36)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,463 | $1,417 | $1,332 | $1,353 | $1,129 | $1,306 |
Portfolio turnover rateI | 53%H | 49%J | 37% | 48% | 60% | 63% |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Growth Fund Class C
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 A | 2017 A | 2016 A | 2015 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $10.90 | $10.07 | $10.63 | $8.47 | $8.80 | $8.42 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.05) | (.09) | (.09) | (.08) | (.08) | (.08) |
Net realized and unrealized gain (loss) | 1.16 | 1.64 | .80 | 2.82 | (.01) | .46 |
Total from investment operations | 1.11 | 1.55 | .71 | 2.74 | (.09) | .38 |
Distributions from net realized gain | (1.18) | (.72) | (1.27) | (.58) | (.24) | – |
Total distributions | (1.18) | (.72) | (1.27) | (.58) | (.24) | – |
Net asset value, end of period | $10.83 | $10.90 | $10.07 | $10.63 | $8.47 | $8.80 |
Total ReturnC,D,E | 10.90% | 17.53% | 7.50% | 34.70% | (1.15)% | 4.55% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.79%H | 1.80% | 1.78% | 1.79% | 1.81% | 1.81% |
Expenses net of fee waivers, if any | 1.79%H | 1.80% | 1.78% | 1.79% | 1.81% | 1.81% |
Expenses net of all reductions | 1.79%H | 1.79% | 1.77% | 1.79% | 1.81% | 1.80% |
Net investment income (loss) | (.91)%H | (.95)% | (.85)% | (.89)% | (1.01)% | (.89)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $108 | $101 | $196 | $200 | $161 | $183 |
Portfolio turnover rateI | 53%H | 49%J | 37% | 48% | 60% | 63% |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Growth Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 A | 2017 A | 2016 A | 2015 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $14.46 | $12.98 | $13.32 | $10.36 | $10.61 | $10.04 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .01 | .01 | .02 | .02 | –C | .02 |
Net realized and unrealized gain (loss) | 1.58 | 2.19 | 1.01 | 3.52 | (.01) | .55 |
Total from investment operations | 1.59 | 2.20 | 1.03 | 3.54 | (.01) | .57 |
Distributions from net realized gain | (1.18) | (.72) | (1.37) | (.58) | (.24) | – |
Total distributions | (1.18) | (.72) | (1.37) | (.58) | (.24) | – |
Net asset value, end of period | $14.87 | $14.46 | $12.98 | $13.32 | $10.36 | $10.61 |
Total ReturnD,E | 11.58% | 18.68% | 8.65% | 36.08% | (.12)% | 5.64% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .74%H | .75% | .75% | .77% | .78% | .78% |
Expenses net of fee waivers, if any | .74%H | .75% | .75% | .76% | .78% | .77% |
Expenses net of all reductions | .74%H | .75% | .75% | .76% | .77% | .77% |
Net investment income (loss) | .13%H | .10% | .17% | .14% | .02% | .14% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $587 | $548 | $679 | $677 | $434 | $463 |
Portfolio turnover rateI | 53%H | 49%J | 37% | 48% | 60% | 63% |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Growth Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 A | 2017 A | 2016 A | 2015 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $14.59 | $13.07 | $13.40 | $10.41 | $10.64 | $10.06 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .02 | .03 | .04 | .03 | .02 | .03 |
Net realized and unrealized gain (loss) | 1.58 | 2.21 | 1.02 | 3.54 | (.01) | .55 |
Total from investment operations | 1.60 | 2.24 | 1.06 | 3.57 | .01 | .58 |
Distributions from net realized gain | (1.18) | (.72) | (1.39) | (.58) | (.24) | – |
Total distributions | (1.18) | (.72) | (1.39) | (.58) | (.24) | – |
Net asset value, end of period | $15.01 | $14.59 | $13.07 | $13.40 | $10.41 | $10.64 |
Total ReturnC,D | 11.55% | 18.87% | 8.80% | 36.27% | .02% | 5.77% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .62%G | .62% | .62% | .63% | .64% | .64% |
Expenses net of fee waivers, if any | .62%G | .62% | .62% | .63% | .63% | .64% |
Expenses net of all reductions | .62%G | .62% | .62% | .63% | .63% | .63% |
Net investment income (loss) | .25%G | .23% | .30% | .28% | .16% | .28% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $127 | $112 | $87 | $59 | $33 | $26 |
Portfolio turnover rateH | 53%G | 49%I | 37% | 48% | 60% | 63% |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Total returns 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.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Equity Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $88 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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), redemptions in kind, partnerships, deferred trustees compensation, net operating losses and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $1,376,601 |
Gross unrealized depreciation | (36,750) |
Net unrealized appreciation (depreciation) | $1,339,851 |
Tax cost | $2,118,106 |
The Fund elected to defer to its next fiscal year $6,770 of ordinary losses recognized during the period January 1, 2019 to November 30, 2019.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Equity Growth Fund | 846,072 | 981,460 |
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 .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. For the reporting period, the total annualized management fee rate was .53% 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% | $1,312 | $32 |
Class M | .25% | .25% | 3,478 | 69 |
Class C | .75% | .25% | 501 | 52 |
$5,291 | $153 |
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 | $117 |
Class M | 13 |
Class C(a) | 4 |
$134 |
(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 | $919 | .18 |
Class M | 1,132 | .16 |
Class C | 105 | .21 |
Class I | 446 | .16 |
Class Z | 25 | .04 |
$2,627 |
(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 Equity Growth 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 Equity Growth Fund | $23 |
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, there 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 Equity Growth Fund | Borrower | $11,863 | 1.19% | $7 |
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.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, 6,447 shares of the Fund were redeemed in-kind for investments and cash with a value of $87,354. The Fund had a net realized gain of $40,130 on investments delivered through the in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $17.
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 Equity Growth Fund | $4 |
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. 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 $55. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes an amount of less than five hundred dollars from securities loaned to NFS, as affiliated borrower.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $35 for the period. In addition, through arrangements with the Fund's custodian each class’ transfer agent, 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 $1. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
Expense reduction | |
Class A | $–(a) |
(a) In the amount of less than five hundred dollars.
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 $6.
In addition, during the period, the investment adviser or an affiliate reimbursed the Fund $15 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 May 31, 2020 | Year ended November 30, 2019 | |
Distributions to shareholders | ||
Class A | $94,509 | $51,863 |
Class M | 130,485 | 82,195 |
Class C | 10,905 | 13,683 |
Class I | 44,885 | 37,411 |
Class Z | 9,022 | 4,824 |
Total | $289,806 | $189,976 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Class A | ||||
Shares sold | 5,127 | 15,045 | $62,247 | $176,639 |
Reinvestment of distributions | 7,084 | 4,812 | 88,264 | 48,074 |
Shares redeemed | (7,176) | (12,652) | (85,908) | (148,629) |
Net increase (decrease) | 5,035 | 7,205 | $64,603 | $76,084 |
Class M | ||||
Shares sold | 6,663 | 9,056 | $78,175 | $104,106 |
Reinvestment of distributions | 10,499 | 8,220 | 127,561 | 80,395 |
Shares redeemed | (15,175) | (21,083) | (178,136) | (243,349) |
Net increase (decrease) | 1,987 | (3,807) | $27,600 | $(58,848) |
Class C | ||||
Shares sold | 1,356 | 2,475 | $13,415 | $23,916 |
Reinvestment of distributions | 1,040 | 1,605 | 10,589 | 13,465 |
Shares redeemed | (1,722) | (14,231) | (16,806) | (139,351) |
Net increase (decrease) | 674 | (10,151) | $7,198 | $(101,970) |
Class I | ||||
Shares sold | 6,520 | 10,757 | $89,301 | $139,214 |
Reinvestment of distributions | 2,963 | 3,224 | 41,212 | 35,532 |
Shares redeemed | (7,884) | (28,423)(a) | (104,886) | (373,732)(a) |
Net increase (decrease) | 1,599 | (14,442) | $25,627 | $(198,986) |
Class Z | ||||
Shares sold | 1,845 | 2,726 | $25,862 | $35,347 |
Reinvestment of distributions | 612 | 420 | 8,598 | 4,662 |
Shares redeemed | (1,657) | (2,127) | (22,013) | (28,806) |
Net increase (decrease) | 800 | 1,019 | $12,447 | $11,203 |
(a) Amount includes in-kind redemptions (see Prior Fiscal Year Affiliated Redemptions In-Kind note for additional details).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (December 1, 2019 to May 31, 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 December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Class A | 1.00% | |||
Actual | $1,000.00 | $1,114.20 | $5.29 | |
Hypothetical-C | $1,000.00 | $1,020.00 | $5.05 | |
Class M | 1.24% | |||
Actual | $1,000.00 | $1,112.00 | $6.55 | |
Hypothetical-C | $1,000.00 | $1,018.80 | $6.26 | |
Class C | 1.79% | |||
Actual | $1,000.00 | $1,109.00 | $9.44 | |
Hypothetical-C | $1,000.00 | $1,016.05 | $9.02 | |
Class I | .74% | |||
Actual | $1,000.00 | $1,115.80 | $3.91 | |
Hypothetical-C | $1,000.00 | $1,021.30 | $3.74 | |
Class Z | .62% | |||
Actual | $1,000.00 | $1,115.50 | $3.28 | |
Hypothetical-C | $1,000.00 | $1,021.90 | $3.13 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Equity Growth Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 June 2017. 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 Equity Growth Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613065020.jpg)
Fidelity Advisor Equity Growth Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613065248.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.
EPG-SANN-0720
1.704747.122
Fidelity Advisor® Equity Value Fund
Semi-Annual Report
May 31, 2020
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
Intel Corp. | 2.7 |
Cigna Corp. | 2.6 |
Wells Fargo & Co. | 2.6 |
Centene Corp. | 2.5 |
Bristol-Myers Squibb Co. | 2.3 |
UnitedHealth Group, Inc. | 2.2 |
Comcast Corp. Class A | 2.1 |
DuPont de Nemours, Inc. | 2.0 |
Cisco Systems, Inc. | 2.0 |
Amgen, Inc. | 1.9 |
22.9 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Financials | 20.3 |
Health Care | 19.9 |
Industrials | 12.7 |
Information Technology | 10.6 |
Communication Services | 7.8 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020* | ||
Stocks | 97.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.7% |
* Foreign investments – 16.8%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.0% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 7.8% | |||
Entertainment - 0.3% | |||
Lions Gate Entertainment Corp. Class B (a) | 44,903 | $338,120 | |
Interactive Media & Services - 2.4% | |||
Alphabet, Inc. Class A (a) | 1,009 | 1,446,422 | |
Facebook, Inc. Class A (a) | 5,300 | 1,192,977 | |
2,639,399 | |||
Media - 4.5% | |||
Comcast Corp. Class A | 56,896 | 2,253,082 | |
DISH Network Corp. Class A (a) | 3,100 | 98,115 | |
Fox Corp. Class A | 13,955 | 407,067 | |
Interpublic Group of Companies, Inc. | 74,486 | 1,274,455 | |
ViacomCBS, Inc. Class B | 13,700 | 284,138 | |
WPP PLC | 72,900 | 554,803 | |
4,871,660 | |||
Wireless Telecommunication Services - 0.6% | |||
T-Mobile U.S., Inc. (a) | 7,047 | 704,982 | |
TOTAL COMMUNICATION SERVICES | 8,554,161 | ||
CONSUMER DISCRETIONARY - 7.6% | |||
Auto Components - 0.8% | |||
Lear Corp. | 7,687 | 815,206 | |
Hotels, Restaurants & Leisure - 0.2% | |||
Vail Resorts, Inc. | 1,100 | 218,163 | |
Household Durables - 0.9% | |||
Newell Brands, Inc. | 18,200 | 239,330 | |
Whirlpool Corp. | 6,400 | 779,648 | |
1,018,978 | |||
Multiline Retail - 1.0% | |||
Dollar General Corp. | 5,761 | 1,103,289 | |
Specialty Retail - 3.3% | |||
Best Buy Co., Inc. | 14,400 | 1,124,496 | |
Dick's Sporting Goods, Inc. | 12,000 | 432,720 | |
Lowe's Companies, Inc. | 12,300 | 1,603,305 | |
Urban Outfitters, Inc. (a) | 6,600 | 111,804 | |
Williams-Sonoma, Inc. | 4,400 | 366,124 | |
3,638,449 | |||
Textiles, Apparel & Luxury Goods - 1.4% | |||
Carter's, Inc. | 1,000 | 85,910 | |
PVH Corp. | 21,015 | 955,552 | |
Tapestry, Inc. | 34,345 | 467,092 | |
1,508,554 | |||
TOTAL CONSUMER DISCRETIONARY | 8,302,639 | ||
CONSUMER STAPLES - 4.7% | |||
Beverages - 0.4% | |||
C&C Group PLC (United Kingdom) | 204,566 | 486,077 | |
Food & Staples Retailing - 3.0% | |||
Performance Food Group Co. (a) | 26,800 | 714,220 | |
Sysco Corp. | 20,176 | 1,112,908 | |
U.S. Foods Holding Corp. (a) | 72,770 | 1,392,818 | |
3,219,946 | |||
Food Products - 0.3% | |||
Tyson Foods, Inc. Class A | 5,200 | 319,488 | |
Household Products - 0.2% | |||
Spectrum Brands Holdings, Inc. | 3,800 | 179,816 | |
Tobacco - 0.8% | |||
Altria Group, Inc. | 22,600 | 882,530 | |
TOTAL CONSUMER STAPLES | 5,087,857 | ||
ENERGY - 4.4% | |||
Energy Equipment & Services - 0.2% | |||
Hoegh LNG Partners LP | 20,346 | 210,988 | |
Oil, Gas & Consumable Fuels - 4.2% | |||
BP PLC sponsored ADR | 25,400 | 587,756 | |
Cabot Oil & Gas Corp. | 49,200 | 976,128 | |
Golar LNG Partners LP | 24,167 | 58,726 | |
Parex Resources, Inc. (a) | 89,100 | 1,001,756 | |
Teekay LNG Partners LP | 43,533 | 485,828 | |
Total SA sponsored ADR | 18,600 | 698,988 | |
Valero Energy Corp. | 12,200 | 813,008 | |
4,622,190 | |||
TOTAL ENERGY | 4,833,178 | ||
FINANCIALS - 20.2% | |||
Banks - 8.9% | |||
Bank of America Corp. | 79,600 | 1,919,952 | |
CIT Group, Inc. | 13,600 | 246,704 | |
Cullen/Frost Bankers, Inc. | 3,900 | 296,283 | |
Huntington Bancshares, Inc. | 21,712 | 193,020 | |
JPMorgan Chase & Co. | 14,500 | 1,410,995 | |
M&T Bank Corp. | 5,656 | 597,613 | |
PNC Financial Services Group, Inc. | 11,085 | 1,264,133 | |
Truist Financial Corp. | 26,742 | 983,571 | |
Wells Fargo & Co. | 107,159 | 2,836,499 | |
9,748,770 | |||
Capital Markets - 1.8% | |||
Affiliated Managers Group, Inc. | 8,869 | 590,853 | |
BlackRock, Inc. Class A | 800 | 422,912 | |
Invesco Ltd. | 25,876 | 206,232 | |
State Street Corp. | 11,861 | 723,047 | |
1,943,044 | |||
Consumer Finance - 2.6% | |||
Capital One Financial Corp. | 19,944 | 1,356,990 | |
Discover Financial Services | 31,266 | 1,485,448 | |
2,842,438 | |||
Diversified Financial Services - 1.7% | |||
Berkshire Hathaway, Inc. Class B (a) | 10,103 | 1,874,915 | |
Insurance - 4.2% | |||
Allstate Corp. | 8,697 | 850,654 | |
American International Group, Inc. | 15,400 | 462,924 | |
Chubb Ltd. | 10,638 | 1,297,198 | |
Lincoln National Corp. | 5,300 | 201,029 | |
MetLife, Inc. | 10,700 | 385,307 | |
The Travelers Companies, Inc. | 12,617 | 1,349,767 | |
4,546,879 | |||
Mortgage Real Estate Investment Trusts - 0.5% | |||
AGNC Investment Corp. | 17,500 | 226,450 | |
Annaly Capital Management, Inc. | 30,600 | 188,496 | |
MFA Financial, Inc. | 69,600 | 117,624 | |
532,570 | |||
Thrifts& Mortgage Finance - 0.5% | |||
Essent Group Ltd. | 9,700 | 320,585 | |
MGIC Investment Corp. | 26,000 | 213,460 | |
534,045 | |||
TOTAL FINANCIALS | 22,022,661 | ||
HEALTH CARE - 19.9% | |||
Biotechnology - 4.0% | |||
Alexion Pharmaceuticals, Inc. (a) | 9,100 | 1,091,090 | |
Amgen, Inc. | 8,979 | 2,062,476 | |
Regeneron Pharmaceuticals, Inc. (a) | 2,000 | 1,225,620 | |
4,379,186 | |||
Health Care Providers & Services - 10.6% | |||
Anthem, Inc. | 4,774 | 1,404,081 | |
Centene Corp. (a) | 40,697 | 2,696,176 | |
Cigna Corp. | 14,493 | 2,859,759 | |
CVS Health Corp. | 22,701 | 1,488,505 | |
Humana, Inc. | 1,578 | 648,006 | |
UnitedHealth Group, Inc. | 8,056 | 2,455,872 | |
11,552,399 | |||
Pharmaceuticals - 5.3% | |||
Bristol-Myers Squibb Co. | 42,452 | 2,535,233 | |
Bristol-Myers Squibb Co. rights (a) | 26,404 | 86,869 | |
Roche Holding AG (participation certificate) | 5,551 | 1,926,873 | |
Sanofi SA sponsored ADR | 24,422 | 1,199,364 | |
5,748,339 | |||
TOTAL HEALTH CARE | 21,679,924 | ||
INDUSTRIALS - 12.7% | |||
Aerospace & Defense - 2.4% | |||
Airbus Group NV | 9,300 | 594,335 | |
General Dynamics Corp. | 9,483 | 1,392,389 | |
Raytheon Technologies Corp. | 10,600 | 683,912 | |
2,670,636 | |||
Air Freight & Logistics - 0.6% | |||
Deutsche Post AG | 9,300 | 291,259 | |
Expeditors International of Washington, Inc. | 1,800 | 137,466 | |
XPO Logistics, Inc. (a) | 2,200 | 173,382 | |
602,107 | |||
Airlines - 1.1% | |||
Alaska Air Group, Inc. | 18,800 | 642,772 | |
Copa Holdings SA Class A | 12,900 | 565,794 | |
1,208,566 | |||
Building Products - 1.7% | |||
Carrier Global Corp. (a) | 11,300 | 231,311 | |
Jeld-Wen Holding, Inc. (a) | 10,900 | 148,567 | |
Owens Corning | 17,500 | 918,750 | |
Trane Technologies PLC | 6,129 | 552,897 | |
1,851,525 | |||
Commercial Services & Supplies - 0.1% | |||
Steelcase, Inc. Class A | 5,900 | 68,322 | |
Electrical Equipment - 2.2% | |||
Acuity Brands, Inc. | 8,900 | 766,735 | |
Regal Beloit Corp. | 8,100 | 644,274 | |
Vestas Wind Systems A/S | 9,232 | 942,917 | |
2,353,926 | |||
Industrial Conglomerates - 1.0% | |||
Siemens AG | 10,100 | 1,113,573 | |
Machinery - 2.5% | |||
Gardner Denver Holdings, Inc. (a) | 11,861 | 334,480 | |
ITT, Inc. | 3,800 | 219,260 | |
Oshkosh Corp. | 13,300 | 955,206 | |
Otis Worldwide Corp. | 5,650 | 297,473 | |
Stanley Black & Decker, Inc. | 7,800 | 978,510 | |
2,784,929 | |||
Trading Companies & Distributors - 1.1% | |||
Beacon Roofing Supply, Inc. (a) | 4,100 | 100,942 | |
HD Supply Holdings, Inc. (a) | 28,471 | 902,815 | |
United Rentals, Inc. (a) | 1,800 | 250,002 | |
1,253,759 | |||
TOTAL INDUSTRIALS | 13,907,343 | ||
INFORMATION TECHNOLOGY - 9.4% | |||
Communications Equipment - 2.1% | |||
Cisco Systems, Inc. | 44,725 | 2,138,750 | |
CommScope Holding Co., Inc. (a) | 14,200 | 146,402 | |
2,285,152 | |||
Electronic Equipment & Components - 1.3% | |||
Arrow Electronics, Inc. (a) | 900 | 62,172 | |
Avnet, Inc. | 1,800 | 49,032 | |
TE Connectivity Ltd. | 16,592 | 1,348,100 | |
1,459,304 | |||
IT Services - 1.8% | |||
Amdocs Ltd. | 11,062 | 688,720 | |
Capgemini SA | 4,200 | 429,390 | |
Cognizant Technology Solutions Corp. Class A | 16,821 | 891,513 | |
2,009,623 | |||
Semiconductors & Semiconductor Equipment - 3.4% | |||
Broadcom, Inc. | 400 | 116,508 | |
Intel Corp. | 46,300 | 2,913,658 | |
NXP Semiconductors NV | 6,300 | 605,430 | |
ON Semiconductor Corp. (a) | 7,400 | 122,026 | |
3,757,622 | |||
Software - 0.6% | |||
Nortonlifelock, Inc. | 26,372 | 600,754 | |
Technology Hardware, Storage & Peripherals - 0.2% | |||
HP, Inc. | 12,500 | 189,250 | |
TOTAL INFORMATION TECHNOLOGY | 10,301,705 | ||
MATERIALS - 4.9% | |||
Chemicals - 2.5% | |||
Albemarle Corp. U.S. | 7,100 | 543,292 | |
DuPont de Nemours, Inc. | 43,100 | 2,186,463 | |
2,729,755 | |||
Metals & Mining - 2.4% | |||
BHP Billiton Ltd. sponsored ADR | 2,500 | 117,750 | |
Lundin Mining Corp. | 115,300 | 530,923 | |
Newmont Corp. | 34,371 | 2,009,672 | |
2,658,345 | |||
TOTAL MATERIALS | 5,388,100 | ||
REAL ESTATE - 1.9% | |||
Equity Real Estate Investment Trusts (REITs) - 0.5% | |||
Simon Property Group, Inc. | 8,806 | 508,106 | |
Real Estate Management & Development - 1.4% | |||
CBRE Group, Inc. (a) | 36,328 | 1,597,705 | |
TOTAL REAL ESTATE | 2,105,811 | ||
UTILITIES - 2.5% | |||
Electric Utilities - 2.5% | |||
Exelon Corp. | 35,994 | 1,378,930 | |
Southern Co. | 23,824 | 1,359,636 | |
2,738,566 | |||
TOTAL COMMON STOCKS | |||
(Cost $101,728,069) | 104,921,945 | ||
Nonconvertible Preferred Stocks - 1.3% | |||
FINANCIALS - 0.1% | |||
Mortgage Real Estate Investment Trusts - 0.1% | |||
MFA Financial, Inc. 6.50% (a)(b) | 4,200 | 59,304 | |
INFORMATION TECHNOLOGY - 1.2% | |||
Technology Hardware, Storage & Peripherals - 1.2% | |||
Samsung Electronics Co. Ltd. | 38,740 | 1,347,246 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
(Cost $1,582,065) | 1,406,550 | ||
Money Market Funds - 1.4% | |||
Fidelity Cash Central Fund 0.11% (c) | |||
(Cost $1,549,656) | 1,549,346 | 1,549,656 | |
TOTAL INVESTMENT IN SECURITIES - 98.7% | |||
(Cost $104,859,790) | 107,878,151 | ||
NET OTHER ASSETS (LIABILITIES) - 1.3% | 1,436,722 | ||
NET ASSETS - 100% | $109,314,873 |
Legend
(a) Non-income producing
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
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 | $5,167 |
Fidelity Securities Lending Cash Central Fund | 55 |
Total | $5,222 |
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 May 31, 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 | $8,554,161 | $7,999,358 | $554,803 | $-- |
Consumer Discretionary | 8,302,639 | 8,302,639 | -- | -- |
Consumer Staples | 5,087,857 | 5,087,857 | -- | -- |
Energy | 4,833,178 | 4,833,178 | -- | -- |
Financials | 22,081,965 | 22,081,965 | -- | -- |
Health Care | 21,679,924 | 19,753,051 | 1,926,873 | -- |
Industrials | 13,907,343 | 10,965,259 | 2,942,084 | -- |
Information Technology | 11,648,951 | 11,648,951 | -- | -- |
Materials | 5,388,100 | 5,388,100 | -- | -- |
Real Estate | 2,105,811 | 2,105,811 | -- | -- |
Utilities | 2,738,566 | 2,738,566 | -- | -- |
Money Market Funds | 1,549,656 | 1,549,656 | -- | -- |
Total Investments in Securities: | $107,878,151 | $102,454,391 | $5,423,760 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 83.2% |
Switzerland | 4.2% |
France | 2.1% |
Canada | 1.7% |
Germany | 1.3% |
Korea (South) | 1.2% |
Netherlands | 1.0% |
Others (Individually Less Than 1%) | 5.3% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $103,310,134) | $106,328,495 | |
Fidelity Central Funds (cost $1,549,656) | 1,549,656 | |
Total Investment in Securities (cost $104,859,790) | $107,878,151 | |
Receivable for investments sold | 1,288,283 | |
Receivable for fund shares sold | 120,374 | |
Dividends receivable | 308,564 | |
Distributions receivable from Fidelity Central Funds | 183 | |
Prepaid expenses | 52 | |
Other receivables | 1,049 | |
Total assets | 109,596,656 | |
Liabilities | ||
Payable for investments purchased | $74,863 | |
Payable for fund shares redeemed | 70,469 | |
Accrued management fee | 41,071 | |
Transfer agent fee payable | 18,278 | |
Distribution and service plan fees payable | 29,914 | |
Other affiliated payables | 3,369 | |
Audit fee payable | 26,831 | |
Custody fee payable | 12,927 | |
Other payables and accrued expenses | 4,061 | |
Total liabilities | 281,783 | |
Net Assets | $109,314,873 | |
Net Assets consist of: | ||
Paid in capital | $111,395,109 | |
Total accumulated earnings (loss) | (2,080,236) | |
Net Assets | $109,314,873 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($57,774,667 ÷ 3,693,146 shares)(a) | $15.64 | |
Maximum offering price per share (100/94.25 of $15.64) | $16.59 | |
Class M: | ||
Net Asset Value and redemption price per share ($22,826,541 ÷ 1,458,568 shares)(a) | $15.65 | |
Maximum offering price per share (100/96.50 of $15.65) | $16.22 | |
Class C: | ||
Net Asset Value and offering price per share ($11,938,029 ÷ 782,244 shares)(a) | $15.26 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($14,222,411 ÷ 885,819 shares) | $16.06 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($2,553,225 ÷ 160,225 shares) | $15.94 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $1,360,153 | |
Special dividends | 419,664 | |
Income from Fidelity Central Funds (including $55 from security lending) | 5,222 | |
Total income | 1,785,039 | |
Expenses | ||
Management fee | ||
Basic fee | $319,678 | |
Performance adjustment | (73,772) | |
Transfer agent fees | 117,961 | |
Distribution and service plan fees | 207,114 | |
Accounting fees | 23,342 | |
Custodian fees and expenses | 17,956 | |
Independent trustees' fees and expenses | 373 | |
Registration fees | 64,317 | |
Audit | 33,500 | |
Legal | 1,383 | |
Miscellaneous | 4,275 | |
Total expenses before reductions | 716,127 | |
Expense reductions | (14,641) | |
Total expenses after reductions | 701,486 | |
Net investment income (loss) | 1,083,553 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (5,498,829) | |
Fidelity Central Funds | (51) | |
Foreign currency transactions | (652) | |
Total net realized gain (loss) | (5,499,532) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $1,098) | (12,914,412) | |
Assets and liabilities in foreign currencies | 990 | |
Total change in net unrealized appreciation (depreciation) | (12,913,422) | |
Net gain (loss) | (18,412,954) | |
Net increase (decrease) in net assets resulting from operations | $(17,329,401) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,083,553 | $3,266,981 |
Net realized gain (loss) | (5,499,532) | 23,116,891 |
Change in net unrealized appreciation (depreciation) | (12,913,422)�� | (10,584,737) |
Net increase (decrease) in net assets resulting from operations | (17,329,401) | 15,799,135 |
Distributions to shareholders | (6,894,201) | (18,933,474) |
Share transactions - net increase (decrease) | (5,376,798) | (101,653,211) |
Total increase (decrease) in net assets | (29,600,400) | (104,787,550) |
Net Assets | ||
Beginning of period | 138,915,273 | 243,702,823 |
End of period | $109,314,873 | $138,915,273 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Equity Value Fund Class A
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.81 | $18.77 | $18.84 | $16.46 | $15.66 | $16.00 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .15B | .26 | .26 | .21 | .17 | .35C |
Net realized and unrealized gain (loss) | (2.34) | 1.25 | (.16) | 2.30 | 1.00 | (.50)D |
Total from investment operations | (2.19) | 1.51 | .10 | 2.51 | 1.17 | (.15) |
Distributions from net investment income | (.45) | (.28) | (.13) | (.13) | (.24)E | (.19) |
Distributions from net realized gain | (.53) | (1.19) | (.05) | – | (.13)E | – |
Total distributions | (.98) | (1.47) | (.17)F | (.13) | (.37) | (.19) |
Net asset value, end of period | $15.64 | $18.81 | $18.77 | $18.84 | $16.46 | $15.66 |
Total ReturnG,H,I | (12.41)% | 9.75% | .53% | 15.35% | 7.75% | (.91)%D |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.11%L | 1.00% | 1.00% | 1.10% | 1.19% | 1.24% |
Expenses net of fee waivers, if any | 1.10%L | 1.00% | 1.00% | 1.09% | 1.19% | 1.23% |
Expenses net of all reductions | 1.09%L | .99% | 1.00% | 1.08% | 1.19% | 1.23% |
Net investment income (loss) | 1.89%B,L | 1.47% | 1.39% | 1.18% | 1.08% | 2.23%C |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $57,775 | $71,916 | $67,457 | $81,229 | $77,787 | $67,005 |
Portfolio turnover rateM | 95%L | 43%N | 33% | 42% | 46% | 49% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been 1.19%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.31%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been (.99)%.
E The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
F Total distributions of $.17 per share is comprised of distributions from net investment income of $.126 and distributions from net realized gain of $.045 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
N Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Value Fund Class M
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.79 | $18.73 | $18.80 | $16.43 | $15.62 | $15.96 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .13B | .21 | .21 | .16 | .12 | .31C |
Net realized and unrealized gain (loss) | (2.34) | 1.26 | (.16) | 2.30 | 1.01 | (.50)D |
Total from investment operations | (2.21) | 1.47 | .05 | 2.46 | 1.13 | (.19) |
Distributions from net investment income | (.40) | (.23) | (.07) | (.09) | (.19)E | (.15) |
Distributions from net realized gain | (.53) | (1.19) | (.05) | – | (.13)E | – |
Total distributions | (.93) | (1.41)F | (.12) | (.09) | (.32) | (.15) |
Net asset value, end of period | $15.65 | $18.79 | $18.73 | $18.80 | $16.43 | $15.62 |
Total ReturnG,H,I | (12.52)% | 9.51% | .25% | 15.02% | 7.49% | (1.19)%D |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.37%L | 1.26% | 1.27% | 1.36% | 1.46% | 1.50% |
Expenses net of fee waivers, if any | 1.35%L | 1.26% | 1.27% | 1.35% | 1.46% | 1.50% |
Expenses net of all reductions | 1.34%L | 1.26% | 1.26% | 1.35% | 1.45% | 1.50% |
Net investment income (loss) | 1.63%B,L | 1.21% | 1.12% | .91% | .81% | 1.96%C |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $22,827 | $28,791 | $30,030 | $38,976 | $38,565 | $34,643 |
Portfolio turnover rateM | 95%L | 43%N | 33% | 42% | 46% | 49% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been .93%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.05%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been (1.27)%.
E The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
F Total distributions of $1.41 per share is comprised of distributions from net investment income of $.229 and distributions from net realized gain of $1.185 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
N Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Value Fund Class C
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.29 | $18.25 | $18.33 | $16.04 | $15.27 | $15.63 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .09B | .12 | .11 | .07 | .05 | .23C |
Net realized and unrealized gain (loss) | (2.30) | 1.24 | (.16) | 2.24 | .98 | (.49)D |
Total from investment operations | (2.21) | 1.36 | (.05) | 2.31 | 1.03 | (.26) |
Distributions from net investment income | (.29) | (.13) | – | (.02) | (.13)E | (.10) |
Distributions from net realized gain | (.53) | (1.19) | (.03) | – | (.13)E | – |
Total distributions | (.82) | (1.32) | (.03) | (.02) | (.26) | (.10) |
Net asset value, end of period | $15.26 | $18.29 | $18.25 | $18.33 | $16.04 | $15.27 |
Total ReturnF,G,H | (12.77)% | 8.95% | (.29)% | 14.44% | 6.95% | (1.68)%D |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.91%K | 1.79% | 1.78% | 1.87% | 1.96% | 2.00% |
Expenses net of fee waivers, if any | 1.89%K | 1.79% | 1.78% | 1.86% | 1.96% | 2.00% |
Expenses net of all reductions | 1.88%K | 1.79% | 1.78% | 1.86% | 1.95% | 2.00% |
Net investment income (loss) | 1.10%B,K | .68% | .61% | .40% | .31% | 1.46%C |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $11,938 | $15,819 | $21,206 | $25,427 | $34,006 | $28,295 |
Portfolio turnover rateL | 95%K | 43%M | 33% | 42% | 46% | 49% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been .40%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .55%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been (1.76)%.
E The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the contingent deferred sales charge.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Value Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.16 | $19.09 | $19.18 | $16.74 | $15.93 | $16.27 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .19B | .31 | .32 | .26 | .21 | .40C |
Net realized and unrealized gain (loss) | (2.41) | 1.28 | (.17) | 2.35 | 1.02 | (.50)D |
Total from investment operations | (2.22) | 1.59 | .15 | 2.61 | 1.23 | (.10) |
Distributions from net investment income | (.35) | (.34) | (.19) | (.17) | (.29)E | (.24) |
Distributions from net realized gain | (.53) | (1.19) | (.05) | – | (.13)E | – |
Total distributions | (.88) | (1.52)F | (.24) | (.17) | (.42) | (.24) |
Net asset value, end of period | $16.06 | $19.16 | $19.09 | $19.18 | $16.74 | $15.93 |
Total ReturnG,H | (12.25)% | 10.12% | .75% | 15.73% | 8.02% | (.60)%D |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .75%K | .72% | .73% | .82% | .91% | .93% |
Expenses net of fee waivers, if any | .74%K | .72% | .72% | .82% | .91% | .93% |
Expenses net of all reductions | .73%K | .72% | .72% | .82% | .91% | .93% |
Net investment income (loss) | 2.25%B,K | 1.75% | 1.66% | 1.45% | 1.36% | 2.53%C |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $14,222 | $18,538 | $122,603 | $136,750 | $22,972 | $25,984 |
Portfolio turnover rateL | 95%K | 43%M | 33% | 42% | 46% | 49% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been 1.55%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.15 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.61%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been (.68)%.
E The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
F Total distributions of $1.52 per share is comprised of distributions from net investment income of $.337 and distributions from net realized gain of $1.185 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Value Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||
2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $19.18 | $19.12 | $19.20 | $17.46 |
Income from Investment Operations | ||||
Net investment income (loss)B | .19C | .33 | .34 | .24 |
Net realized and unrealized gain (loss) | (2.37) | 1.28 | (.16) | 1.50 |
Total from investment operations | (2.18) | 1.61 | .18 | 1.74 |
Distributions from net investment income | (.52) | (.37) | (.21) | – |
Distributions from net realized gain | (.53) | (1.19) | (.05) | – |
Total distributions | (1.06)D | (1.55)E | (.26) | – |
Net asset value, end of period | $15.94 | $19.18 | $19.12 | $19.20 |
Total ReturnF,G | (12.20)% | 10.27% | .91% | 9.97% |
Ratios to Average Net AssetsH,I | ||||
Expenses before reductions | .70%J | .58% | .59% | .69%J |
Expenses net of fee waivers, if any | .68%J | .58% | .59% | .69%J |
Expenses net of all reductions | .67%J | .58% | .58% | .68%J |
Net investment income (loss) | 2.31%C,J | 1.89% | 1.80% | 1.59%J |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $2,553 | $3,852 | $2,406 | $581 |
Portfolio turnover rateK | 95%J | 43%L | 33% | 42% |
A For the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been 1.61%.
D Total distributions of $1.06 per share is comprised of distributions from net investment income of $.524 and distributions from net realized gain of $.531 per share.
E Total distributions of $1.55 per share is comprised of distributions from net investment income of $.369 and distributions from net realized gain of $1.185 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
1. Organization.
Fidelity Advisor Equity Value Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), redemptions in kind, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $15,656,470 |
Gross unrealized depreciation | (13,332,141) |
Net unrealized appreciation (depreciation) | $2,324,329 |
Tax cost | $105,553,822 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Equity Value Fund | 56,505,936 | 66,599,055 |
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 .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 3000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .41% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors 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% | $78,923 | $1,150 |
Class M | .25% | .25% | 61,560 | 923 |
Class C | .75% | .25% | 66,631 | 4,615 |
$207,114 | $6,688 |
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 | $8,574 |
Class M | 1,441 |
Class C(a) | 51 |
$10,066 |
(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 and 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 | $66,220 | .21 |
Class M | 26,505 | .22 |
Class C | 16,763 | .25 |
Class I | 7,853 | .10 |
Class Z | 620 | .04 |
$117,961 |
(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 Equity 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 Equity Value Fund | $1,902 |
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.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, 5,066,023 shares of the Fund were redeemed in-kind for investments and cash with a value of $91,298,847. The Fund had a net realized gain of $15,857,287 on investments delivered through the in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $2,220.
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 Equity Value Fund | $169 |
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. At period end, there were no security loans outstanding. Total fees paid by the Fund to NFS, as lending agent, amounted to $5. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. 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 $5,176 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 $36.
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 $279.
In addition, during the period the investment adviser or an affiliate reimbursed the Fund $9,150 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 May 31, 2020 | Year ended November 30, 2019 | |
Distributions to shareholders | ||
Class A | $3,759,647 | $5,220,713 |
Class M | 1,389,000 | 2,271,102 |
Class C | 686,184 | 1,505,420 |
Class I | 848,755 | 9,737,158 |
Class Z | 210,615 | 199,081 |
Total | $6,894,201 | $18,933,474 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Class A | ||||
Shares sold | 198,706 | 706,645 | $3,195,155 | $12,195,411 |
Reinvestment of distributions | 195,838 | 328,286 | 3,595,585 | 5,062,178 |
Shares redeemed | (523,656) | (806,687) | (8,035,743) | (13,913,663) |
Net increase (decrease) | (129,112) | 228,244 | $(1,245,003) | $3,343,926 |
Class M | ||||
Shares sold | 61,647 | 154,552 | $968,813 | $2,634,157 |
Reinvestment of distributions | 74,509 | 145,711 | 1,370,213 | 2,248,322 |
Shares redeemed | (209,780) | (371,205) | (3,395,520) | (6,347,420) |
Net increase (decrease) | (73,624) | (70,942) | $(1,056,494) | $(1,464,941) |
Class C | ||||
Shares sold | 46,618 | 175,881 | $734,454 | $2,938,116 |
Reinvestment of distributions | 37,097 | 96,159 | 666,633 | 1,452,001 |
Shares redeemed | (166,472) | (568,894) | (2,647,564) | (9,543,988) |
Net increase (decrease) | (82,757) | (296,854) | $(1,246,477) | $(5,153,871) |
Class I | ||||
Shares sold | 83,741 | 886,122 | $1,334,193 | $15,260,551 |
Reinvestment of distributions | 40,391 | 583,943 | 760,152 | 9,144,546 |
Shares redeemed | (206,043) | (6,923,103)(a) | (3,201,715) | (124,061,130)(a) |
Net increase (decrease) | (81,911) | (5,453,038) | $(1,107,370) | $(99,656,033) |
Class Z | ||||
Shares sold | 24,628 | 90,632 | $373,821 | $1,579,109 |
Reinvestment of distributions | 9,538 | 10,508 | 178,071 | 164,552 |
Shares redeemed | (74,773) | (26,132) | (1,273,346) | (465,953) |
Net increase (decrease) | (40,607) | 75,008 | $(721,454) | $1,277,708 |
(a) Amount includes in-kind redemptions (see the Prior Fiscal Year Affiliated Redemptions In-Kind note for additional details).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (December 1, 2019 to May 31, 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 December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Class A | 1.10% | |||
Actual | $1,000.00 | $875.90 | $5.16 | |
Hypothetical-C | $1,000.00 | $1,019.50 | $5.55 | |
Class M | 1.35% | |||
Actual | $1,000.00 | $874.80 | $6.33 | |
Hypothetical-C | $1,000.00 | $1,018.25 | $6.81 | |
Class C | 1.89% | |||
Actual | $1,000.00 | $872.30 | $8.85 | |
Hypothetical-C | $1,000.00 | $1,015.55 | $9.52 | |
Class I | .74% | |||
Actual | $1,000.00 | $877.50 | $3.47 | |
Hypothetical-C | $1,000.00 | $1,021.30 | $3.74 | |
Class Z | .68% | |||
Actual | $1,000.00 | $878.00 | $3.19 | |
Hypothetical-C | $1,000.00 | $1,021.60 | $3.44 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Equity Value Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 Equity Value Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613066870.jpg)
Fidelity Advisor Equity Value Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613067387.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.
AEV-SANN-0720
1.759108.119
Fidelity Advisor® Growth Opportunities Fund
Semi-Annual Report
May 31, 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.
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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
Microsoft Corp. | 7.8 |
Amazon.com, Inc. | 6.1 |
Alphabet, Inc. Class C | 4.2 |
Apple, Inc. | 4.0 |
Facebook, Inc. Class A | 4.0 |
Carvana Co. Class A | 2.7 |
Tesla, Inc. | 2.7 |
Uber Technologies, Inc. | 2.1 |
T-Mobile U.S., Inc. | 1.9 |
NVIDIA Corp. | 1.9 |
37.4 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Information Technology | 37.8 |
Consumer Discretionary | 17.3 |
Communication Services | 16.0 |
Health Care | 14.2 |
Industrials | 5.1 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020 * | ||
Stocks | 97.5% | |
Convertible Securities | 1.1% | |
Other Investments | 1.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 14.5%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 16.0% | |||
Entertainment - 3.1% | |||
Activision Blizzard, Inc. | 635,780 | $45,763 | |
Roku, Inc. Class A (a)(b) | 1,123,220 | 123,004 | |
Sea Ltd. ADR (a)(b) | 1,753,184 | 139,904 | |
The Walt Disney Co. | 358,973 | 42,108 | |
350,779 | |||
Interactive Media & Services - 10.3% | |||
Alphabet, Inc.: | |||
Class A (a) | 131,458 | 188,448 | |
Class C (a) | 330,339 | 472,028 | |
Facebook, Inc. Class A (a) | 2,027,385 | 456,344 | |
IAC/InterActiveCorp (a) | 117,500 | 31,768 | |
Snap, Inc. Class A (a) | 513,500 | 9,726 | |
1,158,314 | |||
Media - 0.7% | |||
Comcast Corp. Class A | 1,844,192 | 73,030 | |
Wireless Telecommunication Services - 1.9% | |||
T-Mobile U.S., Inc. (a) | 2,113,177 | 211,402 | |
TOTAL COMMUNICATION SERVICES | 1,793,525 | ||
CONSUMER DISCRETIONARY - 17.3% | |||
Automobiles - 2.7% | |||
Neutron Holdings, Inc. (c) | 4,318,200 | 1,036 | |
Tesla, Inc. (a) | 358,076 | 298,993 | |
300,029 | |||
Diversified Consumer Services - 0.2% | |||
Arco Platform Ltd. Class A (a) | 419,628 | 20,344 | |
Hotels, Restaurants & Leisure - 0.4% | |||
Hilton Worldwide Holdings, Inc. | 113,100 | 8,970 | |
McDonald's Corp. | 11,300 | 2,105 | |
Starbucks Corp. | 406,525 | 31,705 | |
42,780 | |||
Household Durables - 0.0% | |||
iRobot Corp. (a) | 28,400 | 2,094 | |
Internet & Direct Marketing Retail - 10.4% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 505,923 | 104,923 | |
Amazon.com, Inc. (a) | 282,067 | 688,912 | |
MakeMyTrip Ltd. (a)(b) | 280,300 | 4,342 | |
Meituan Dianping Class B (a) | 3,443,314 | 65,582 | |
MercadoLibre, Inc. (a) | 23,089 | 19,664 | |
Naspers Ltd. Class N | 153,566 | 24,999 | |
Pinduoduo, Inc. ADR (a)(b) | 1,974,116 | 132,009 | |
Prosus NV (a) | 269,666 | 22,502 | |
The Booking Holdings, Inc. (a) | 39,831 | 65,300 | |
Wayfair LLC Class A (a) | 214,314 | 36,766 | |
1,164,999 | |||
Specialty Retail - 3.4% | |||
Carvana Co. Class A (a)(b) | 3,307,712 | 307,551 | |
Floor & Decor Holdings, Inc. Class A (a)(b) | 741,982 | 38,583 | |
Lowe's Companies, Inc. | 320,088 | 41,723 | |
387,857 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Allbirds, Inc. (a)(c)(d) | 23,730 | 210 | |
lululemon athletica, Inc. (a) | 75,515 | 22,662 | |
22,872 | |||
TOTAL CONSUMER DISCRETIONARY | 1,940,975 | ||
CONSUMER STAPLES - 0.6% | |||
Food & Staples Retailing - 0.4% | |||
Performance Food Group Co. (a) | 1,238,447 | 33,005 | |
Sysco Corp. | 206,900 | 11,413 | |
44,418 | |||
Food Products - 0.2% | |||
Beyond Meat, Inc. (b) | 184,144 | 23,624 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Class B (a)(c)(d) | 2,772 | 307 | |
TOTAL CONSUMER STAPLES | 68,349 | ||
ENERGY - 1.3% | |||
Oil, Gas & Consumable Fuels - 1.3% | |||
Reliance Industries Ltd. | 7,461,049 | 144,514 | |
Reliance Industries Ltd. rights (a) | 497,403 | 1,461 | |
145,975 | |||
FINANCIALS - 2.7% | |||
Banks - 0.1% | |||
HDFC Bank Ltd. sponsored ADR | 337,000 | 14,097 | |
Capital Markets - 1.0% | |||
BlackRock, Inc. Class A | 51,300 | 27,119 | |
Charles Schwab Corp. | 232,632 | 8,354 | |
London Stock Exchange Group PLC | 427,252 | 42,615 | |
MSCI, Inc. | 19,079 | 6,274 | |
XP, Inc. Class A (a) | 678,336 | 20,594 | |
104,956 | |||
Consumer Finance - 1.6% | |||
Capital One Financial Corp. | 479,000 | 32,591 | |
LendingTree, Inc. (a)(b) | 460,888 | 119,840 | |
Synchrony Financial | 1,300,100 | 26,483 | |
178,914 | |||
TOTAL FINANCIALS | 297,967 | ||
HEALTH CARE - 14.2% | |||
Biotechnology - 5.0% | |||
ACADIA Pharmaceuticals, Inc. (a) | 388,900 | 19,321 | |
Acceleron Pharma, Inc. (a) | 89,200 | 8,816 | |
ADC Therapeutics SA (a) | 135,900 | 5,022 | |
Aimmune Therapeutics, Inc. (a)(b) | 362,311 | 6,018 | |
Alexion Pharmaceuticals, Inc. (a) | 702,721 | 84,256 | |
Alnylam Pharmaceuticals, Inc. (a) | 211,035 | 28,547 | |
Applied Therapeutics, Inc. (a) | 119,300 | 5,431 | |
Arcutis Biotherapeutics, Inc. (a) | 188,300 | 6,317 | |
Argenx SE ADR (a) | 28,529 | 6,256 | |
Ascendis Pharma A/S sponsored ADR (a) | 50,262 | 7,313 | |
BeiGene Ltd. (a) | 127,913 | 1,624 | |
Black Diamond Therapeutics, Inc. (a) | 47,900 | 1,870 | |
Crinetics Pharmaceuticals, Inc. (a) | 570,461 | 9,321 | |
FibroGen, Inc. (a) | 735,301 | 24,588 | |
G1 Therapeutics, Inc. (a) | 95,316 | 1,618 | |
Global Blood Therapeutics, Inc. (a) | 65,300 | 4,566 | |
Gritstone Oncology, Inc. (a) | 311,808 | 2,014 | |
Insmed, Inc. (a) | 1,726,919 | 41,947 | |
Intercept Pharmaceuticals, Inc. (a) | 49,872 | 3,604 | |
Keros Therapeutics, Inc. | 180,000 | 5,173 | |
Morphic Holding, Inc. | 208,036 | 4,323 | |
Neurocrine Biosciences, Inc. (a) | 376,402 | 46,960 | |
Passage Bio, Inc. | 291,200 | 6,415 | |
Protagonist Therapeutics, Inc. (a) | 61,900 | 1,023 | |
Regeneron Pharmaceuticals, Inc. (a) | 201,753 | 123,636 | |
Revolution Medicines, Inc. | 164,400 | 5,050 | |
Sage Therapeutics, Inc. (a) | 53,547 | 1,913 | |
Sarepta Therapeutics, Inc. (a) | 274,493 | 41,797 | |
TG Therapeutics, Inc. (a) | 102,200 | 1,906 | |
Vertex Pharmaceuticals, Inc. (a) | 151,392 | 43,595 | |
Viela Bio, Inc. | 237,700 | 11,148 | |
Zymeworks, Inc. (a) | 77,800 | 2,966 | |
564,354 | |||
Health Care Equipment & Supplies - 3.7% | |||
Atricure, Inc. (a) | 112,700 | 5,388 | |
Becton, Dickinson & Co. | 81,400 | 20,100 | |
Boston Scientific Corp. (a) | 2,589,674 | 98,382 | |
DexCom, Inc. (a) | 113,726 | 43,024 | |
Insulet Corp. (a) | 146,810 | 27,684 | |
Intuitive Surgical, Inc. (a) | 73,357 | 42,549 | |
iRhythm Technologies, Inc. (a)(b) | 125,300 | 15,576 | |
Masimo Corp. (a) | 134,026 | 32,192 | |
Novocure Ltd. (a) | 569,524 | 38,403 | |
Penumbra, Inc. (a) | 161,505 | 27,847 | |
SmileDirectClub, Inc. (a)(b) | 5,019,128 | 39,199 | |
TransMedics Group, Inc. (e) | 2,057,115 | 27,174 | |
417,518 | |||
Health Care Providers & Services - 4.0% | |||
1Life Healthcare, Inc. (a)(b) | 1,065,863 | 34,427 | |
Centene Corp. (a) | 708,444 | 46,934 | |
Cigna Corp. | 353,705 | 69,793 | |
Humana, Inc. | 223,860 | 91,928 | |
UnitedHealth Group, Inc. | 681,467 | 207,745 | |
450,827 | |||
Health Care Technology - 0.1% | |||
Inspire Medical Systems, Inc. (a) | 133,800 | 10,910 | |
Veeva Systems, Inc. Class A (a) | 23,900 | 5,231 | |
16,141 | |||
Life Sciences Tools & Services - 0.2% | |||
10X Genomics, Inc. (a) | 38,840 | 3,028 | |
Bruker Corp. | 336,045 | 14,544 | |
17,572 | |||
Pharmaceuticals - 1.2% | |||
AstraZeneca PLC sponsored ADR | 206,175 | 11,257 | |
Bristol-Myers Squibb Co. | 307,075 | 18,339 | |
Bristol-Myers Squibb Co. rights (a) | 125,816 | 414 | |
IMARA, Inc. | 285,500 | 9,561 | |
Nabriva Therapeutics PLC (a)(b) | 11,265,029 | 12,842 | |
Nabriva Therapeutics PLC warrants 6/1/22 (a) | 6,814,048 | 32 | |
Nektar Therapeutics (a) | 1,220,771 | 26,491 | |
Roche Holding AG (participation certificate) | 142,840 | 49,583 | |
Theravance Biopharma, Inc. (a) | 172,927 | 4,366 | |
132,885 | |||
TOTAL HEALTH CARE | 1,599,297 | ||
INDUSTRIALS - 4.9% | |||
Aerospace & Defense - 0.1% | |||
Northrop Grumman Corp. | 46,216 | 15,492 | |
Airlines - 0.6% | |||
JetBlue Airways Corp. (a) | 4,063,142 | 40,916 | |
Spirit Airlines, Inc. (a)(b) | 1,941,852 | 25,147 | |
66,063 | |||
Construction & Engineering - 0.0% | |||
AECOM (a) | 55,200 | 2,140 | |
Electrical Equipment - 0.6% | |||
Sensata Technologies, Inc. PLC (a) | 50,300 | 1,793 | |
Sunrun, Inc. (a) | 1,993,572 | 33,293 | |
Vestas Wind Systems A/S | 294,160 | 30,044 | |
65,130 | |||
Machinery - 0.2% | |||
Fortive Corp. | 29,900 | 1,823 | |
Minebea Mitsumi, Inc. | 1,127,044 | 19,762 | |
21,585 | |||
Professional Services - 0.4% | |||
Clarivate Analytics PLC (a) | 657,600 | 15,052 | |
TransUnion Holding Co., Inc. | 312,996 | 27,008 | |
42,060 | |||
Road & Rail - 3.0% | |||
Lyft, Inc. (a) | 3,270,013 | 102,221 | |
Uber Technologies, Inc. | 6,456,881 | 234,514 | |
336,735 | |||
TOTAL INDUSTRIALS | 549,205 | ||
INFORMATION TECHNOLOGY - 37.6% | |||
Electronic Equipment & Components - 0.4% | |||
CDW Corp. | 51,000 | 5,656 | |
Flextronics International Ltd. (a) | 2,055,400 | 19,958 | |
FLIR Systems, Inc. | 45,300 | 2,093 | |
Jabil, Inc. | 415,514 | 12,432 | |
40,139 | |||
IT Services - 9.3% | |||
Alliance Data Systems Corp. | 633,300 | 29,341 | |
EPAM Systems, Inc. (a) | 70,473 | 16,254 | |
Fidelity National Information Services, Inc. | 353,146 | 49,027 | |
Gartner, Inc. (a) | 16,900 | 2,057 | |
GDS Holdings Ltd. ADR (a)(b) | 1,372,590 | 78,238 | |
Genpact Ltd. | 775,258 | 27,871 | |
Global Payments, Inc. | 305,512 | 54,836 | |
GoDaddy, Inc. (a) | 1,407,504 | 108,730 | |
MasterCard, Inc. Class A | 357,312 | 107,512 | |
MongoDB, Inc. Class A (a)(b) | 163,312 | 37,906 | |
PayPal Holdings, Inc. (a) | 567,677 | 87,996 | |
Repay Holdings Corp. (a) | 106,700 | 2,458 | |
Riskified Ltd. (c)(d) | 25,657 | 6,958 | |
Riskified Ltd. warrants (a)(c)(d) | 818 | 0 | |
Square, Inc. (a) | 336,900 | 27,316 | |
Twilio, Inc. Class A (a) | 503,491 | 99,490 | |
Visa, Inc. Class A | 707,361 | 138,105 | |
Wix.com Ltd. (a) | 738,346 | 164,156 | |
1,038,251 | |||
Semiconductors & Semiconductor Equipment - 7.3% | |||
Applied Materials, Inc. | 750,901 | 42,186 | |
Broadcom, Inc. | 70,031 | 20,398 | |
Cirrus Logic, Inc. (a) | 75,400 | 5,465 | |
Enphase Energy, Inc. (a) | 303,100 | 17,637 | |
Lam Research Corp. | 168,176 | 46,025 | |
Marvell Technology Group Ltd. | 2,115,879 | 69,020 | |
MediaTek, Inc. | 211,000 | 3,260 | |
Micron Technology, Inc. (a) | 3,394,072 | 162,610 | |
NVIDIA Corp. | 594,468 | 211,048 | |
NXP Semiconductors NV | 1,419,172 | 136,382 | |
ON Semiconductor Corp. (a) | 1,323,161 | 21,819 | |
Qualcomm, Inc. | 259,889 | 21,020 | |
SolarEdge Technologies, Inc. (a)(b) | 412,760 | 58,571 | |
Universal Display Corp. | 57,500 | 8,430 | |
823,871 | |||
Software - 16.3% | |||
Adobe, Inc. (a) | 325,330 | 125,773 | |
Autodesk, Inc. (a) | 381,365 | 80,232 | |
Cerence, Inc. (a) | 142,000 | 4,247 | |
Ceridian HCM Holding, Inc. (a) | 64,500 | 4,442 | |
Cloudflare, Inc. (a) | 368,441 | 10,711 | |
Coupa Software, Inc. (a) | 153,898 | 35,013 | |
DocuSign, Inc. (a) | 255,178 | 35,659 | |
Dynatrace, Inc. | 1,041,100 | 40,051 | |
Elastic NV (a) | 505,140 | 43,402 | |
HubSpot, Inc. (a) | 323,749 | 64,730 | |
Intuit, Inc. | 105,508 | 30,631 | |
Lightspeed POS, Inc. (a)(b) | 1,271,195 | 30,338 | |
Microsoft Corp. | 4,789,615 | 877,695 | |
Nutanix, Inc. Class A (a) | 285,900 | 6,879 | |
Q2 Holdings, Inc. (a) | 32,012 | 2,645 | |
RingCentral, Inc. (a) | 52,091 | 14,286 | |
Salesforce.com, Inc. (a) | 1,176,738 | 205,682 | |
ServiceNow, Inc. (a) | 179,858 | 69,772 | |
Snowflake Computing, Inc. Class B (c)(d) | 6,644 | 258 | |
SS&C Technologies Holdings, Inc. | 208,565 | 12,075 | |
The Trade Desk, Inc. (a)(b) | 262,151 | 81,676 | |
Workday, Inc. Class A (a) | 180,472 | 33,104 | |
Xero Ltd. (a) | 85,947 | 4,885 | |
Zendesk, Inc. (a) | 109,000 | 9,347 | |
Zoom Video Communications, Inc. Class A (a) | 56,600 | 10,159 | |
1,833,692 | |||
Technology Hardware, Storage & Peripherals - 4.3% | |||
Apple, Inc. | 1,436,315 | 456,662 | |
Western Digital Corp. | 697,896 | 30,966 | |
487,628 | |||
TOTAL INFORMATION TECHNOLOGY | 4,223,581 | ||
MATERIALS - 1.4% | |||
Chemicals - 1.4% | |||
LG Chemical Ltd. | 201,392 | 63,826 | |
Olin Corp. | 3,763,269 | 45,272 | |
The Chemours Co. LLC (b) | 3,975,192 | 52,115 | |
161,213 | |||
REAL ESTATE - 0.5% | |||
Equity Real Estate Investment Trusts (REITs) - 0.4% | |||
American Tower Corp. | 169,203 | 43,683 | |
Real Estate Management & Development - 0.1% | |||
Redfin Corp. (a)(b) | 566,604 | 16,992 | |
TOTAL REAL ESTATE | 60,675 | ||
UTILITIES - 1.0% | |||
Electric Utilities - 1.0% | |||
Edison International | 329,821 | 19,166 | |
Enel SpA | 733,800 | 5,674 | |
Iberdrola SA | 518,200 | 5,611 | |
NextEra Energy, Inc. | 122,278 | 31,249 | |
ORSTED A/S (f) | 457,756 | 53,634 | |
115,334 | |||
TOTAL COMMON STOCKS | |||
(Cost $7,311,148) | 10,956,096 | ||
Preferred Stocks - 1.1% | |||
Convertible Preferred Stocks - 1.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (a)(c)(d) | 9,365 | 83 | |
Series B (a)(c)(d) | 1,645 | 15 | |
Series C (a)(c)(d) | 15,730 | 139 | |
Series Seed (a)(c)(d) | 5,030 | 44 | |
281 | |||
CONSUMER STAPLES - 0.6% | |||
Food & Staples Retailing - 0.1% | |||
Blink Health LLC Series C (c)(d) | 143,212 | 6,131 | |
Sweetgreen, Inc.: | |||
Series C (c)(d) | 3,842 | 57 | |
Series D (c)(d) | 61,801 | 923 | |
Series I (c)(d) | 145,657 | 2,176 | |
9,287 | |||
Tobacco - 0.5% | |||
JUUL Labs, Inc.: | |||
Series C (a)(c)(d) | 566,439 | 62,778 | |
Series D (a)(c)(d) | 3,671 | 407 | |
63,185 | |||
TOTAL CONSUMER STAPLES | 72,472 | ||
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Sonder Holdings, Inc.: | |||
Series D (c)(d) | 126,152 | 1,358 | |
Series E (c)(d) | 757,018 | 8,151 | |
9,509 | |||
Insurance - 0.0% | |||
Clover Health Series D (a)(c)(d) | 282,226 | 1,216 | |
TOTAL FINANCIALS | 10,725 | ||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Nuvation Bio, Inc. Series A (c)(d)(g) | 1,839,200 | 1,729 | |
INDUSTRIALS - 0.2% | |||
Aerospace & Defense - 0.0% | |||
Space Exploration Technologies Corp. Series I (a)(c)(d) | 16,438 | 3,616 | |
Road & Rail - 0.2% | |||
Convoy, Inc. Series D (c)(d) | 1,038,289 | 15,564 | |
TOTAL INDUSTRIALS | 19,180 | ||
INFORMATION TECHNOLOGY - 0.2% | |||
IT Services - 0.1% | |||
Riskified Ltd. Series E (c)(d) | 3,900 | 1,058 | |
Yanka Industries, Inc. Series E (c)(d) | 341,047 | 4,120 | |
5,178 | |||
Software - 0.1% | |||
ACV Auctions, Inc. Series E (c)(d) | 2,543,049 | 13,631 | |
TOTAL INFORMATION TECHNOLOGY | 18,809 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 123,196 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Waymo LLC Series A2 (c)(d) | 47,838 | 4,108 | |
TOTAL PREFERRED STOCKS | |||
(Cost $63,027) | 127,304 | ||
Money Market Funds - 7.5% | |||
Fidelity Cash Central Fund 0.11% (h) | 11,188,948 | 11,191 | |
Fidelity Securities Lending Cash Central Fund 0.10% (h)(i) | 831,016,737 | 831,100 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $842,291) | 842,291 | ||
Equity Funds - 1.2% | |||
Domestic Equity Funds - 1.2% | |||
iShares Russell 1000 Growth Index ETF | |||
(Cost $111,842) | 709,500 | 130,775 | |
TOTAL INVESTMENT IN SECURITIES - 107.3% | |||
(Cost $8,328,308) | 12,056,466 | ||
NET OTHER ASSETS (LIABILITIES) - (7.3)% | (820,639) | ||
NET ASSETS - 100% | $11,235,827 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Level 3 security
(d) 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 $135,037,000 or 1.2% of net assets.
(e) Affiliated company
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $53,634,000 or 0.5% of net assets.
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(i) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
ACV Auctions, Inc. Series E | 11/6/19 | $14,064 |
Allbirds, Inc. | 10/9/18 | $260 |
Allbirds, Inc. Series A | 10/9/18 | $103 |
Allbirds, Inc. Series B | 10/9/18 | $18 |
Allbirds, Inc. Series C | 10/9/18 | $173 |
Allbirds, Inc. Series Seed | 10/9/18 | $55 |
Blink Health LLC Series C | 11/7/19 | $5,467 |
Clover Health Series D | 6/7/17 | $2,647 |
Convoy, Inc. Series D | 10/30/19 | $14,058 |
JUUL Labs, Inc. Class B | 11/21/17 | $0 |
JUUL Labs, Inc. Series C | 5/22/15 | $0 |
JUUL Labs, Inc. Series D | 6/25/18 | $0 |
Nuvation Bio, Inc. Series A | 6/17/19 | $1,419 |
Riskified Ltd. | 12/20/19 - 4/15/20 | $5,803 |
Riskified Ltd. Series E | 10/28/19 | $928 |
Riskified Ltd. warrants | 10/28/19 | $0 |
Snowflake Computing, Inc. Class B | 3/19/20 | $258 |
Sonder Holdings, Inc. Series D | 12/20/19 | $1,324 |
Sonder Holdings, Inc. Series E | 4/3/20 - 5/6/20 | $8,150 |
Space Exploration Technologies Corp. Series I | 4/5/18 | $2,778 |
Sweetgreen, Inc. Series C | 9/13/19 | $66 |
Sweetgreen, Inc. Series D | 9/13/19 | $1,057 |
Sweetgreen, Inc. Series I | 9/13/19 | $2,491 |
Waymo LLC Series A2 | 5/8/20 | $4,108 |
Yanka Industries, Inc. Series E | 5/15/20 | $4,120 |
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 | $779 |
Fidelity Securities Lending Cash Central Fund | 7,446 |
Total | $8,225 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
SmileDirectClub, Inc. | $58,222 | $2,880 | $10,534 | $-- | $(5,425) | $(5,944) | $-- |
TransMedics Group, Inc. | 11,927 | 22,067 | -- | -- | -- | (6,820) | 27,174 |
Total | $70,149 | $24,947 | $10,534 | $-- | $(5,425) | $(12,764) | $27,174 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 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 | $1,793,525 | $1,793,525 | $-- | $-- |
Consumer Discretionary | 1,945,364 | 1,826,646 | 113,083 | 5,635 |
Consumer Staples | 140,821 | 68,042 | -- | 72,779 |
Energy | 145,975 | 145,975 | -- | -- |
Financials | 308,692 | 255,352 | 42,615 | 10,725 |
Health Care | 1,601,026 | 1,548,058 | 51,239 | 1,729 |
Industrials | 568,385 | 519,161 | 30,044 | 19,180 |
Information Technology | 4,242,390 | 4,216,365 | -- | 26,025 |
Materials | 161,213 | 161,213 | -- | -- |
Real Estate | 60,675 | 60,675 | -- | -- |
Utilities | 115,334 | 104,049 | 11,285 | -- |
Money Market Funds | 842,291 | 842,291 | -- | -- |
Equity Funds | 130,775 | 130,775 | -- | -- |
Total Investments in Securities: | $12,056,466 | $11,672,127 | $248,266 | $136,073 |
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 | $129,409 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | (15,775) |
Cost of Purchases | 23,763 |
Proceeds of Sales | (1,324) |
Amortization/Accretion | -- |
Transfers into Level 3 | 1,527 |
Transfers out of Level 3 | (1,527) |
Ending Balance | $136,073 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2020 | $(15,775) |
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 | 85.5% |
Cayman Islands | 4.6% |
Netherlands | 1.9% |
Israel | 1.6% |
India | 1.4% |
Others (Individually Less Than 1%) | 5.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $825,748) — See accompanying schedule: Unaffiliated issuers (cost $7,448,964) | $11,187,001 | |
Fidelity Central Funds (cost $842,291) | 842,291 | |
Other affiliated issuers (cost $37,053) | 27,174 | |
Total Investment in Securities (cost $8,328,308) | $12,056,466 | |
Receivable for investments sold | 78,711 | |
Receivable for fund shares sold | 34,524 | |
Dividends receivable | 5,214 | |
Distributions receivable from Fidelity Central Funds | 2,313 | |
Prepaid expenses | 1 | |
Other receivables | 73 | |
Total assets | 12,177,302 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $85,923 | |
Delayed delivery | 709 | |
Payable for fund shares redeemed | 11,346 | |
Accrued management fee | 5,475 | |
Distribution and service plan fees payable | 1,817 | |
Other affiliated payables | 1,218 | |
Other payables and accrued expenses | 3,907 | |
Collateral on securities loaned | 831,080 | |
Total liabilities | 941,475 | |
Net Assets | $11,235,827 | |
Net Assets consist of: | ||
Paid in capital | $7,477,848 | |
Total accumulated earnings (loss) | 3,757,979 | |
Net Assets | $11,235,827 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($1,808,460 ÷ 18,298 shares)(a) | $98.83 | |
Maximum offering price per share (100/94.25 of $98.83) | $104.86 | |
Class M: | ||
Net Asset Value and redemption price per share ($2,315,161 ÷ 23,721 shares)(a) | $97.60 | |
Maximum offering price per share (100/96.50 of $97.60) | $101.14 | |
Class C: | ||
Net Asset Value and offering price per share ($711,974 ÷ 8,569 shares)(a) | $83.09 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($4,628,957 ÷ 43,017 shares) | $107.61 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($1,771,275 ÷ 16,298 shares) | $108.68 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $24,610 | |
Interest | 27 | |
Income from Fidelity Central Funds (including $7,446 from security lending) | 8,225 | |
Total income | 32,862 | |
Expenses | ||
Management fee | ||
Basic fee | $23,726 | |
Performance adjustment | 4,522 | |
Transfer agent fees | 6,429 | |
Distribution and service plan fees | 9,825 | |
Accounting fees | 621 | |
Custodian fees and expenses | 112 | |
Independent trustees' fees and expenses | 24 | |
Registration fees | 352 | |
Audit | 50 | |
Legal | 10 | |
Interest | 1 | |
Miscellaneous | 254 | |
Total expenses before reductions | 45,926 | |
Expense reductions | (255) | |
Total expenses after reductions | 45,671 | |
Net investment income (loss) | (12,809) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 81,858 | |
Fidelity Central Funds | 18 | |
Other affiliated issuers | (5,425) | |
Foreign currency transactions | (43) | |
Futures contracts | (11,475) | |
Total net realized gain (loss) | 64,933 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $235) | 1,306,574 | |
Other affiliated issuers | (12,764) | |
Assets and liabilities in foreign currencies | 12 | |
Total change in net unrealized appreciation (depreciation) | 1,293,822 | |
Net gain (loss) | 1,358,755 | |
Net increase (decrease) in net assets resulting from operations | $1,345,946 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(12,809) | $(12,611) |
Net realized gain (loss)�� | 64,933 | 418,629 |
Change in net unrealized appreciation (depreciation) | 1,293,822 | 1,078,373 |
Net increase (decrease) in net assets resulting from operations | 1,345,946 | 1,484,391 |
Distributions to shareholders | (317,585) | (375,736) |
Share transactions - net increase (decrease) | 2,347,654 | 3,226,621 |
Total increase (decrease) in net assets | 3,376,015 | 4,335,276 |
Net Assets | ||
Beginning of period | 7,859,812 | 3,524,536 |
End of period | $11,235,827 | $7,859,812 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Growth Opportunities Fund Class A
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $90.00 | $76.87 | $68.76 | $58.24 | $66.87 | $63.52 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.15) | (.18)B | (.25) | .04 | .07 | (.08) |
Net realized and unrealized gain (loss) | 12.62 | 21.21 | 13.33 | 17.86 | (1.46) | 3.43 |
Total from investment operations | 12.47 | 21.03 | 13.08 | 17.90 | (1.39) | 3.35 |
Distributions from net realized gain | (3.64) | (7.90) | (4.97) | (7.38) | (7.24) | – |
Total distributions | (3.64) | (7.90) | (4.97) | (7.38) | (7.24) | – |
Net asset value, end of period | $98.83 | $90.00 | $76.87 | $68.76 | $58.24 | $66.87 |
Total ReturnC,D,E | 14.28% | 31.29% | 20.35% | 34.64% | (2.37)% | 5.27% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.09%H | 1.11% | 1.05% | .91% | .86% | 1.05% |
Expenses net of fee waivers, if any | 1.09%H | 1.11% | 1.05% | .91% | .86% | 1.05% |
Expenses net of all reductions | 1.08%H | 1.10% | 1.05% | .91% | .86% | 1.05% |
Net investment income (loss) | (.34)%H | (.22)%B | (.33)% | .06% | .13% | (.12)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,808 | $1,349 | $673 | $540 | $502 | $664 |
Portfolio turnover rateI | 37%H | 37%J | 46% | 52% | 66% | 51% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.15 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.42) %.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Growth Opportunities Fund Class M
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $89.03 | $76.28 | $68.27 | $57.99 | $66.75 | $63.55 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.25) | (.37)B | (.41) | (.10) | (.06) | (.23) |
Net realized and unrealized gain (loss) | 12.46 | 21.02 | 13.24 | 17.76 | (1.46) | 3.43 |
Total from investment operations | 12.21 | 20.65 | 12.83 | 17.66 | (1.52) | 3.20 |
Distributions from net realized gain | (3.64) | (7.90) | (4.82) | (7.38) | (7.24) | – |
Total distributions | (3.64) | (7.90) | (4.82) | (7.38) | (7.24) | – |
Net asset value, end of period | $97.60 | $89.03 | $76.28 | $68.27 | $57.99 | $66.75 |
Total ReturnC,D,E | 14.14% | 31.01% | 20.07% | 34.34% | (2.59)% | 5.04% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.33%H | 1.34% | 1.28% | 1.14% | 1.09% | 1.28% |
Expenses net of fee waivers, if any | 1.33%H | 1.34% | 1.28% | 1.14% | 1.09% | 1.28% |
Expenses net of all reductions | 1.32%H | 1.34% | 1.28% | 1.13% | 1.09% | 1.28% |
Net investment income (loss) | (.58)%H | (.46)%B | (.57)% | (.17)% | (.10)% | (.35)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2,315 | $2,094 | $1,671 | $1,492 | $1,250 | $1,461 |
Portfolio turnover rateI | 37%H | 37%J | 46% | 52% | 66% | 51% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.15 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.65) %.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Growth Opportunities Fund Class C
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $76.50 | $67.03 | $60.60 | $52.52 | $61.42 | $58.78 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.41) | (.67)B | (.70) | (.37) | (.32) | (.52) |
Net realized and unrealized gain (loss) | 10.64 | 18.04 | 11.68 | 15.83 | (1.34) | 3.16 |
Total from investment operations | 10.23 | 17.37 | 10.98 | 15.46 | (1.66) | 2.64 |
Distributions from net realized gain | (3.64) | (7.90) | (4.55) | (7.38) | (7.24) | – |
Total distributions | (3.64) | (7.90) | (4.55) | (7.38) | (7.24) | – |
Net asset value, end of period | $83.09 | $76.50 | $67.03 | $60.60 | $52.52 | $61.42 |
Total ReturnC,D,E | 13.86% | 30.31% | 19.44% | 33.64% | (3.10)% | 4.49% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.85%H | 1.86% | 1.81% | 1.66% | 1.61% | 1.80% |
Expenses net of fee waivers, if any | 1.85%H | 1.86% | 1.81% | 1.66% | 1.61% | 1.80% |
Expenses net of all reductions | 1.84%H | 1.86% | 1.80% | 1.66% | 1.61% | 1.80% |
Net investment income (loss) | (1.10)%H | (.98)%B | (1.09)% | (.69)% | (.62)% | (.87)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $712 | $483 | $244 | $201 | $178 | $238 |
Portfolio turnover rateI | 37%H | 37%J | 46% | 52% | 66% | 51% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.17) %.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Growth Opportunities Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $97.56 | $82.42 | $73.38 | $61.52 | $70.05 | $66.35 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.04) | .03B | (.05) | .22 | .25 | .11 |
Net realized and unrealized gain (loss) | 13.73 | 23.01 | 14.25 | 19.02 | (1.54) | 3.59 |
Total from investment operations | 13.69 | 23.04 | 14.20 | 19.24 | (1.29) | 3.70 |
Distributions from net realized gain | (3.64) | (7.90) | (5.16) | (7.38) | (7.24) | – |
Total distributions | (3.64) | (7.90) | (5.16) | (7.38) | (7.24) | – |
Net asset value, end of period | $107.61 | $97.56 | $82.42 | $73.38 | $61.52 | $70.05 |
Total ReturnC,D | 14.43% | 31.66% | 20.67% | 35.01% | (2.09)% | 5.58% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .83%G | .84% | .78% | .63% | .58% | .77% |
Expenses net of fee waivers, if any | .83%G | .84% | .78% | .63% | .58% | .77% |
Expenses net of all reductions | .82%G | .84% | .78% | .63% | .58% | .77% |
Net investment income (loss) | (.08)%G | .04%B | (.06)% | .34% | .41% | .16% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $4,629 | $2,819 | $850 | $642 | $562 | $1,061 |
Portfolio turnover rateH | 37%G | 37%I | 46% | 52% | 66% | 51% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.15) %.
C Total returns 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.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Growth Opportunities Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $98.44 | $83.00 | $73.88 | $61.82 | $70.27 | $66.48 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .02 | .14B | .04 | .32 | .33 | .20 |
Net realized and unrealized gain (loss) | 13.86 | 23.20 | 14.35 | 19.12 | (1.54) | 3.59 |
Total from investment operations | 13.88 | 23.34 | 14.39 | 19.44 | (1.21) | 3.79 |
Distributions from net investment income | – | – | (.05) | – | – | – |
Distributions from net realized gain | (3.64) | (7.90) | (5.22) | (7.38) | (7.24) | – |
Total distributions | (3.64) | (7.90) | (5.27) | (7.38) | (7.24) | – |
Net asset value, end of period | $108.68 | $98.44 | $83.00 | $73.88 | $61.82 | $70.27 |
Total ReturnC,D | 14.50% | 31.81% | 20.82% | 35.18% | (1.96)% | 5.70% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .71%G | .72% | .66% | .51% | .45% | .64% |
Expenses net of fee waivers, if any | .71%G | .72% | .66% | .50% | .45% | .64% |
Expenses net of all reductions | .71%G | .72% | .65% | .50% | .45% | .64% |
Net investment income (loss) | .03%G | .16%B | .06% | .47% | .54% | .29% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,771 | $1,114 | $88 | $152 | $7 | $5 |
Portfolio turnover rateH | 37%G | 37%I | 46% | 52% | 66% | 51% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.03) %.
C Total returns 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.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Growth Opportunities Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy. If an unaffiliated open-end mutual fund's NAV is unavailable, shares of that fund may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and is categorized as Level 2 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique (s) | Unobservable Input | Amount or Range / Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $136,073 | Market approach | Transaction price | $10.77 - $220.00 / $60.64 | Increase |
Recovery value | Recovery value | 0.0% | Increase | ||
Market comparable | Transaction price | $0.77 | Increase | ||
Discount rate | 3.7% - 62.1% / 16.9% | Decrease | |||
Enterprise value/Sales multiple (EV/S) | 1.0 - 11.2 / 6.8 | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Premium rate | 2.0% - 189.2% / 68.7% | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2020, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $63 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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, redemptions in kind, deferred trustees compensation, net operating losses, certain foreign taxes, losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $3,951,750 |
Gross unrealized depreciation | (268,404) |
Net unrealized appreciation (depreciation) | $3,683,346 |
Tax cost | $8,373,120 |
The Fund elected to defer to its next fiscal year approximately $5,209 of ordinary losses recognized during the period January 1, 2019 to November 30, 2019.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (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.
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 Growth Opportunities Fund | 3,791,373 | 1,649,710 |
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 investment performance of the asset-weighted return of all classes as compared to its benchmark index, the Russell 1000 Growth Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .64% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors 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% | $1,846 | $126 |
Class M | .25% | .25% | 5,215 | 132 |
Class C | .75% | .25% | 2,764 | 1,292 |
$9,825 | $1,550 |
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 | $937 |
Class M | 96 |
Class C(a) | 131 |
$1,164 |
(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 | $1,259 | .17 |
Class M | 1,655 | .16 |
Class C | 482 | .17 |
Class I | 2,744 | .16 |
Class Z | 289 | .04 |
$6,429 |
(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 Growth Opportunities Fund | .01 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Fidelity Advisor Growth Opportunities Fund | $66 |
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, there 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 Growth Opportunities Fund | Borrower | $6,607 | 1.34% | $1 |
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.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, 714 shares of the Fund were redeemed in-kind for investments and cash with a value of $63,177. The Fund had a net realized gain of $37,752 on investments delivered through the in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $28.
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 Growth Opportunities Fund | $10 |
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 $791. 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 $4 from securities loaned to NFS, as affiliated borrower.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $215 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 $3. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
Expense reduction | |
Class A | $1 |
Class M | 1 |
$2 |
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 $15.
In addition, during the period, the investment adviser or an affiliate reimbursed the Fund $20 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 May 31, 2020 | Year ended November 30, 2019 | |
Distributions to shareholders | ||
Class A | $55,552 | $69,056 |
Class M | 85,325 | 172,195 |
Class C | 23,768 | 28,420 |
Class I | 109,948 | 81,919 |
Class Z | 42,990 | 24,146 |
Total | $317,585 | $375,736 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Class A | ||||
Shares sold | 5,232 | 8,598 | $455,516 | $684,846 |
Reinvestment of distributions | 587 | 1,004 | 52,509 | 65,327 |
Shares redeemed | (2,512) | (3,360) | (211,529) | (270,268) |
Net increase (decrease) | 3,307 | 6,242 | $296,496 | $479,905 |
Class M | ||||
Shares sold | 2,018 | 2,869 | $172,823 | $223,333 |
Reinvestment of distributions | 931 | 2,574 | 82,318 | 165,967 |
Shares redeemed | (2,751) | (3,822) | (235,080) | (299,591) |
Net increase (decrease) | 198 | 1,621 | $20,061 | $89,709 |
Class C | ||||
Shares sold | 3,037 | 4,254 | $222,826 | $289,250 |
Reinvestment of distributions | 291 | 482 | 21,939 | 26,865 |
Shares redeemed | (1,070) | (2,061) | (76,415) | (139,159) |
Net increase (decrease) | 2,258 | 2,675 | $168,350 | $176,956 |
Class I | ||||
Shares sold | 22,867 | 25,181 | $2,153,581 | $2,186,583 |
Reinvestment of distributions | 950 | 845 | 92,340 | 59,435 |
Shares redeemed | (9,698) | (7,438)(a) | (877,913) | (646,852)(a) |
Net increase (decrease) | 14,119 | 18,588 | $1,368,008 | $1,599,166 |
Class Z | ||||
Shares sold | 8,001 | 13,616 | $765,717 | $1,190,747 |
Reinvestment of distributions | 398 | 324 | 39,102 | 22,945 |
Shares redeemed | (3,421) | (3,679) | (310,080) | (332,807) |
Net increase (decrease) | 4,978 | 10,261 | $494,739 | $880,885 |
(a) Amount includes in-kind redemptions (see the Prior Fiscal Year Affiliated Redemptions In-Kind note for additional details).
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (December 1, 2019 to May 31, 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 December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Class A | 1.09% | |||
Actual | $1,000.00 | $1,142.80 | $5.84 | |
Hypothetical-C | $1,000.00 | $1,019.55 | $5.50 | |
Class M | 1.33% | |||
Actual | $1,000.00 | $1,141.40 | $7.12 | |
Hypothetical-C | $1,000.00 | $1,018.35 | $6.71 | |
Class C | 1.85% | |||
Actual | $1,000.00 | $1,138.60 | $9.89 | |
Hypothetical-C | $1,000.00 | $1,015.75 | $9.32 | |
Class I | .83% | |||
Actual | $1,000.00 | $1,144.30 | $4.45 | |
Hypothetical-C | $1,000.00 | $1,020.85 | $4.19 | |
Class Z | .71% | |||
Actual | $1,000.00 | $1,145.00 | $3.81 | |
Hypothetical-C | $1,000.00 | $1,021.45 | $3.59 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Growth Opportunities Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 Growth Opportunities Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613070010.jpg)
Fidelity Advisor Growth Opportunities Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613070341.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.
GO-SANN-0720
1.704615.122
Fidelity Advisor® Growth & Income Fund
Semi-Annual Report
May 31, 2020
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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.
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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.
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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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
Microsoft Corp. | 6.4 |
General Electric Co. | 4.1 |
Exxon Mobil Corp. | 3.9 |
Comcast Corp. Class A(a) | 3.8 |
Altria Group, Inc.(a) | 3.6 |
Apple, Inc.(a) | 3.2 |
Bank of America Corp. | 2.8 |
Wells Fargo & Co. | 2.6 |
Johnson & Johnson | 2.4 |
Bristol-Myers Squibb Co. | 2.3 |
35.1 |
(a) Security or a portion of the security is pledged as collateral for call options written.
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Health Care | 19.9 |
Information Technology | 18.7 |
Financials | 15.1 |
Industrials | 13.2 |
Consumer Staples | 9.2 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020*,** | ||
Stocks | 96.6% | |
Convertible Securities | 0.4% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.9% |
* Foreign investments - 13.7%
** Written options - (0.1%)
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.6% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 7.3% | |||
Diversified Telecommunication Services - 1.3% | |||
Verizon Communications, Inc. (a) | 103,309 | $5,928 | |
Entertainment - 1.7% | |||
Activision Blizzard, Inc. | 41,600 | 2,994 | |
The Walt Disney Co. | 19,500 | 2,287 | |
Vivendi SA | 131,100 | 2,998 | |
8,279 | |||
Media - 4.3% | |||
Comcast Corp. Class A (a) | 459,658 | 18,202 | |
Interpublic Group of Companies, Inc. | 119,800 | 2,050 | |
Omnicom Group, Inc. | 6,000 | 329 | |
20,581 | |||
TOTAL COMMUNICATION SERVICES | 34,788 | ||
CONSUMER DISCRETIONARY - 3.1% | |||
Auto Components - 0.5% | |||
BorgWarner, Inc. | 78,900 | 2,537 | |
Automobiles - 0.1% | |||
Harley-Davidson, Inc. (b) | 22,200 | 474 | |
Hotels, Restaurants & Leisure - 0.3% | |||
Starbucks Corp. | 17,400 | 1,357 | |
Household Durables - 0.5% | |||
Mohawk Industries, Inc. (c) | 200 | 19 | |
Whirlpool Corp. | 20,200 | 2,461 | |
2,480 | |||
Specialty Retail - 1.3% | |||
Lowe's Companies, Inc. | 43,557 | 5,678 | |
TJX Companies, Inc. | 3,900 | 206 | |
5,884 | |||
Textiles, Apparel & Luxury Goods - 0.4% | |||
NIKE, Inc. Class B | 18,700 | 1,843 | |
Puma AG | 806 | 57 | |
Tapestry, Inc. | 10,100 | 137 | |
2,037 | |||
TOTAL CONSUMER DISCRETIONARY | 14,769 | ||
CONSUMER STAPLES - 9.2% | |||
Beverages - 1.6% | |||
Anheuser-Busch InBev SA NV ADR (b) | 15,800 | 741 | |
Diageo PLC sponsored ADR | 7,600 | 1,069 | |
Pernod Ricard SA | 2,800 | 435 | |
Remy Cointreau SA | 3,300 | 391 | |
The Coca-Cola Co. | 110,184 | 5,143 | |
7,779 | |||
Food & Staples Retailing - 1.8% | |||
JDE Peet's BV | 33,300 | 1,325 | |
Sysco Corp. | 49,100 | 2,708 | |
Walmart, Inc. (a) | 37,210 | 4,616 | |
8,649 | |||
Household Products - 1.0% | |||
Colgate-Palmolive Co. | 6,200 | 448 | |
Energizer Holdings, Inc. | 19,500 | 856 | |
Procter & Gamble Co. (a) | 19,335 | 2,241 | |
Reynolds Consumer Products, Inc. | 1,400 | 47 | |
Spectrum Brands Holdings, Inc. | 23,400 | 1,107 | |
4,699 | |||
Personal Products - 0.2% | |||
Unilever NV | 13,800 | 713 | |
Tobacco - 4.6% | |||
Altria Group, Inc. (a) | 440,920 | 17,218 | |
British American Tobacco PLC sponsored ADR | 116,680 | 4,677 | |
21,895 | |||
TOTAL CONSUMER STAPLES | 43,735 | ||
ENERGY - 7.1% | |||
Oil, Gas & Consumable Fuels - 7.1% | |||
Cenovus Energy, Inc. | 3,000 | 13 | |
Cenovus Energy, Inc. (Canada) | 816,700 | 3,559 | |
Equinor ASA sponsored ADR | 342,100 | 4,991 | |
Exxon Mobil Corp. | 410,300 | 18,656 | |
Hess Corp. | 112,500 | 5,340 | |
Kosmos Energy Ltd. | 309,200 | 563 | |
Total SA sponsored ADR | 20,700 | 778 | |
33,900 | |||
FINANCIALS - 15.1% | |||
Banks - 9.7% | |||
Bank of America Corp. | 553,042 | 13,339 | |
First Hawaiian, Inc. | 11,800 | 204 | |
JPMorgan Chase & Co. | 58,943 | 5,736 | |
M&T Bank Corp. | 9,200 | 972 | |
PNC Financial Services Group, Inc. | 47,216 | 5,385 | |
Truist Financial Corp. | 138,349 | 5,088 | |
U.S. Bancorp | 91,230 | 3,244 | |
Wells Fargo & Co. | 470,150 | 12,445 | |
46,413 | |||
Capital Markets - 3.8% | |||
Brookfield Asset Management, Inc. Class A | 31,201 | 978 | |
Cboe Global Markets, Inc. | 2,510 | 267 | |
FS KKR Capital Corp. | 3,600 | 13 | |
Julius Baer Group Ltd. | 6,301 | 271 | |
KKR & Co. LP | 60,113 | 1,668 | |
Morgan Stanley | 33,230 | 1,469 | |
Northern Trust Corp. (a) | 81,437 | 6,434 | |
Raymond James Financial, Inc. | 19,700 | 1,365 | |
S&P Global, Inc. | 200 | 65 | |
State Street Corp. | 88,270 | 5,381 | |
TPG Specialty Lending, Inc. | 5,888 | 108 | |
18,019 | |||
Consumer Finance - 0.3% | |||
Discover Financial Services | 25,900 | 1,231 | |
Shriram Transport Finance Co. Ltd. | 14,100 | 107 | |
1,338 | |||
Insurance - 0.9% | |||
Chubb Ltd. | 13,200 | 1,610 | |
Marsh & McLennan Companies, Inc. | 15,666 | 1,659 | |
Old Republic International Corp. | 6,900 | 108 | |
The Travelers Companies, Inc. | 9,400 | 1,006 | |
4,383 | |||
Mortgage Real Estate Investment Trusts - 0.1% | |||
AGNC Investment Corp. | 22,100 | 286 | |
Thrifts & Mortgage Finance - 0.3% | |||
Essent Group Ltd. | 15,400 | 509 | |
Radian Group, Inc. | 58,190 | 924 | |
1,433 | |||
TOTAL FINANCIALS | 71,872 | ||
HEALTH CARE - 19.5% | |||
Biotechnology - 1.6% | |||
AbbVie, Inc. | 16,200 | 1,501 | |
Alexion Pharmaceuticals, Inc. (c) | 27,600 | 3,309 | |
Amgen, Inc. | 6,600 | 1,516 | |
Intercept Pharmaceuticals, Inc. (c) | 19,495 | 1,409 | |
7,735 | |||
Health Care Equipment & Supplies - 0.9% | |||
Becton, Dickinson & Co. | 9,775 | 2,414 | |
Boston Scientific Corp. (c) | 28,200 | 1,071 | |
GN Store Nord A/S | 4,200 | 226 | |
Sonova Holding AG Class B | 2,040 | 446 | |
4,157 | |||
Health Care Providers & Services - 8.3% | |||
AmerisourceBergen Corp. | 27,800 | 2,650 | |
Cardinal Health, Inc. | 71,200 | 3,894 | |
Cigna Corp. | 39,500 | 7,794 | |
CVS Health Corp. | 141,951 | 9,308 | |
McKesson Corp. | 39,933 | 6,336 | |
Patterson Companies, Inc. (b) | 57,200 | 1,126 | |
United Drug PLC (United Kingdom) | 7,720 | 70 | |
UnitedHealth Group, Inc. | 28,500 | 8,688 | |
39,866 | |||
Pharmaceuticals - 8.7% | |||
Bayer AG | 121,073 | 8,277 | |
Bristol-Myers Squibb Co. | 184,300 | 11,006 | |
GlaxoSmithKline PLC sponsored ADR | 207,709 | 8,707 | |
Johnson & Johnson | 76,701 | 11,409 | |
Novartis AG sponsored ADR | 601 | 53 | |
Sanofi SA sponsored ADR | 39,700 | 1,950 | |
41,402 | |||
TOTAL HEALTH CARE | 93,160 | ||
INDUSTRIALS - 13.2% | |||
Aerospace & Defense - 1.1% | |||
General Dynamics Corp. | 13,000 | 1,909 | |
Huntington Ingalls Industries, Inc. | 7,400 | 1,479 | |
Raytheon Technologies Corp. | 8,031 | 518 | |
Safran SA | 7,800 | 752 | |
The Boeing Co. | 2,800 | 408 | |
5,066 | |||
Air Freight & Logistics - 2.1% | |||
Expeditors International of Washington, Inc. | 800 | 61 | |
FedEx Corp. | 14,300 | 1,867 | |
United Parcel Service, Inc. Class B | 81,679 | 8,144 | |
10,072 | |||
Building Products - 0.1% | |||
Johnson Controls International PLC | 20,800 | 653 | |
Commercial Services & Supplies - 0.4% | |||
Healthcare Services Group, Inc. (b) | 59,700 | 1,428 | |
Interface, Inc. | 44,000 | 374 | |
KAR Auction Services, Inc. | 8,000 | 115 | |
Ritchie Bros. Auctioneers, Inc. | 1,700 | 74 | |
1,991 | |||
Electrical Equipment - 1.1% | |||
Acuity Brands, Inc. | 10,100 | 870 | |
Hubbell, Inc. Class B | 13,012 | 1,593 | |
Rockwell Automation, Inc. | 1,900 | 411 | |
Vertiv Holdings Co. (c) | 4,500 | 57 | |
Vertiv Holdings LLC (d) | 160,000 | 2,037 | |
4,968 | |||
Industrial Conglomerates - 4.4% | |||
3M Co. | 9,600 | 1,502 | |
General Electric Co. | 2,923,793 | 19,209 | |
20,711 | |||
Machinery - 1.3% | |||
Caterpillar, Inc. | 2,100 | 252 | |
Cummins, Inc. | 4,800 | 814 | |
Donaldson Co., Inc. | 27,800 | 1,319 | |
Flowserve Corp. | 24,400 | 637 | |
Fortive Corp. | 12,900 | 787 | |
Kardex AG | 600 | 103 | |
Nordson Corp. | 2,200 | 414 | |
Otis Worldwide Corp. | 7,065 | 372 | |
Stanley Black & Decker, Inc. | 5,100 | 640 | |
Westinghouse Air Brake Co. | 16,931 | 1,034 | |
6,372 | |||
Professional Services - 0.6% | |||
Equifax, Inc. | 800 | 123 | |
RELX PLC (London Stock Exchange) | 119,879 | 2,774 | |
Robert Half International, Inc. | 1,800 | 91 | |
2,988 | |||
Road & Rail - 1.2% | |||
J.B. Hunt Transport Services, Inc. | 14,120 | 1,690 | |
Knight-Swift Transportation Holdings, Inc. Class A (a) | 98,100 | 4,082 | |
5,772 | |||
Trading Companies & Distributors - 0.9% | |||
Fastenal Co. | 15,200 | 627 | |
MSC Industrial Direct Co., Inc. Class A | 700 | 49 | |
Watsco, Inc. | 20,664 | 3,676 | |
4,352 | |||
TOTAL INDUSTRIALS | 62,945 | ||
INFORMATION TECHNOLOGY - 18.7% | |||
Communications Equipment - 0.6% | |||
Cisco Systems, Inc. | 63,271 | 3,026 | |
IT Services - 3.4% | |||
Amadeus IT Holding SA Class A | 13,200 | 690 | |
DXC Technology Co. | 11,000 | 156 | |
Fidelity National Information Services, Inc. | 15,400 | 2,138 | |
Genpact Ltd. | 39,700 | 1,427 | |
IBM Corp. | 16,800 | 2,098 | |
MasterCard, Inc. Class A | 2,300 | 692 | |
Unisys Corp. (c) | 75,492 | 858 | |
Visa, Inc. Class A | 42,840 | 8,364 | |
16,423 | |||
Semiconductors & Semiconductor Equipment - 3.0% | |||
Analog Devices, Inc. | 7,100 | 802 | |
Applied Materials, Inc. | 16,595 | 932 | |
Lam Research Corp. | 1,300 | 356 | |
Marvell Technology Group Ltd. | 18,500 | 603 | |
NXP Semiconductors NV | 14,700 | 1,413 | |
Qualcomm, Inc. | 124,998 | 10,110 | |
14,216 | |||
Software - 8.5% | |||
Microsoft Corp. | 165,773 | 30,382 | |
Open Text Corp. | 12,600 | 523 | |
Oracle Corp. | 40,884 | 2,198 | |
SAP SE sponsored ADR | 51,900 | 6,648 | |
Temenos Group AG | 4,260 | 650 | |
40,401 | |||
Technology Hardware, Storage & Peripherals - 3.2% | |||
Apple, Inc. (a) | 47,573 | 15,125 | |
TOTAL INFORMATION TECHNOLOGY | 89,191 | ||
MATERIALS - 1.8% | |||
Chemicals - 1.3% | |||
DuPont de Nemours, Inc. | 69,100 | 3,505 | |
LyondellBasell Industries NV Class A | 11,400 | 727 | |
Nutrien Ltd. | 35,280 | 1,204 | |
PPG Industries, Inc. | 8,500 | 864 | |
6,300 | |||
Metals & Mining - 0.5% | |||
BHP Billiton Ltd. sponsored ADR (b) | 52,600 | 2,477 | |
TOTAL MATERIALS | 8,777 | ||
REAL ESTATE - 1.1% | |||
Equity Real Estate Investment Trusts (REITs) - 1.1% | |||
American Tower Corp. | 6,800 | 1,756 | |
CoreSite Realty Corp. | 7,800 | 974 | |
Equinix, Inc. (a) | 2,010 | 1,402 | |
Public Storage | 3,600 | 730 | |
Simon Property Group, Inc. | 6,600 | 381 | |
5,243 | |||
UTILITIES - 0.5% | |||
Electric Utilities - 0.3% | |||
Duke Energy Corp. | 10,200 | 873 | |
Exelon Corp. | 9,300 | 356 | |
PPL Corp. | 4,100 | 115 | |
Southern Co. | 3,600 | 205 | |
1,549 | |||
Multi-Utilities - 0.2% | |||
Sempra Energy | 6,400 | 808 | |
TOTAL UTILITIES | 2,357 | ||
TOTAL COMMON STOCKS | |||
(Cost $405,731) | 460,737 | ||
Convertible Preferred Stocks - 0.3% | |||
HEALTH CARE - 0.3% | |||
Health Care Equipment & Supplies - 0.3% | |||
Becton, Dickinson & Co. 6.50% (c) | 13,500 | 699 | |
Boston Scientific Corp. Series A 5.50% (c) | 8,200 | 897 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $1,495) | 1,596 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.1% | |||
HEALTH CARE - 0.1% | |||
Biotechnology - 0.1% | |||
Intercept Pharmaceuticals, Inc. 2% 5/15/26 (Cost $284) | 279 | 260 | |
Shares | Value (000s) | ||
Other - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels – 0.1% | |||
Utica Shale Drilling Program (non-operating revenue interest) (d)(e)(f) | |||
(Cost $1,470) | 1,469,796 | 676 | |
Money Market Funds - 4.3% | |||
Fidelity Cash Central Fund 0.11% (g) | 14,322,901 | 14,326 | |
Fidelity Securities Lending Cash Central Fund 0.10% (g)(h) | 6,031,542 | 6,032 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $20,358) | 20,358 | ||
TOTAL INVESTMENT IN SECURITIES - 101.4% | |||
(Cost $429,338) | 483,627 | ||
NET OTHER ASSETS (LIABILITIES) - (1.4)% | (6,700) | ||
NET ASSETS - 100% | $476,927 |
Written Options | ||||||
Counterparty | Number of Contracts | Notional Amount (000s) | Exercise Price | Expiration Date | Value (000s) | |
Call Options | ||||||
Altria Group, Inc. | Chicago Board Options Exchange | 417 | $1,628 | $45.00 | 6/19/20 | $(1) |
Apple, Inc. | Chicago Board Options Exchange | 43 | 1,367 | 320.00 | 6/19/20 | (32) |
Comcast Corp. Class A | Chicago Board Options Exchange | 459 | 1,818 | 40.00 | 6/19/20 | (43) |
Equinix, Inc. | Chicago Board Options Exchange | 6 | 419 | 700.00 | 6/19/20 | (11) |
Knight-Swift Transportation Holdings, Inc. | Chicago Board Options Exchange | 157 | 653 | 35.00 | 6/19/20 | (107) |
Northern Trust Corp. | Chicago Board Options Exchange | 78 | 616 | 95.00 | 7/17/20 | (1) |
Procter & Gamble Co. | Chicago Board Options Exchange | 24 | 278 | 125.00 | 6/19/20 | 0 |
Verizon Communications, Inc. | Chicago Board Options Exchange | 101 | 580 | 57.50 | 6/19/20 | (11) |
Walmart, Inc. | Chicago Board Options Exchange | 136 | 1,687 | 120.00 | 6/19/20 | (73) |
Walmart, Inc. | Chicago Board Options Exchange | 68 | 844 | 125.00 | 6/19/20 | (15) |
Walmart, Inc. | Chicago Board Options Exchange | 57 | 707 | 130.00 | 6/19/20 | (3) |
TOTAL WRITTEN OPTIONS | $(297) |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Security or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $10,597,000.
(b) Security or a portion of the security is on loan at period end.
(c) Non-income producing
(d) 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 $2,713,000 or 0.6% of net assets.
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) Level 3 security
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $1,470 |
Vertiv Holdings LLC | 2/6/20 | $1,600 |
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 | $97 |
Fidelity Securities Lending Cash Central Fund | 51 |
Total | $148 |
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 May 31, 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 | $34,788 | $31,790 | $2,998 | $-- |
Consumer Discretionary | 14,769 | 14,769 | -- | -- |
Consumer Staples | 43,735 | 43,022 | 713 | -- |
Energy | 33,900 | 33,900 | -- | -- |
Financials | 71,872 | 71,601 | 271 | -- |
Health Care | 94,756 | 84,883 | 9,873 | -- |
Industrials | 62,945 | 62,193 | 752 | -- |
Information Technology | 89,191 | 88,501 | 690 | -- |
Materials | 8,777 | 8,777 | -- | -- |
Real Estate | 5,243 | 5,243 | -- | -- |
Utilities | 2,357 | 2,357 | -- | -- |
Corporate Bonds | 260 | -- | 260 | -- |
Other | 676 | -- | -- | 676 |
Money Market Funds | 20,358 | 20,358 | -- | -- |
Total Investments in Securities: | $483,627 | $467,394 | $15,557 | $676 |
Derivative Instruments: | ||||
Liabilities | ||||
Written Options | $(297) | $(297) | $-- | $-- |
Total Liabilities | $(297) | $(297) | $-- | $-- |
Total Derivative Instruments: | $(297) | $(297) | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 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 | |
(Amounts in thousands) | ||
Equity Risk | ||
Written Options(a) | $0 | $(297) |
Total Equity Risk | 0 | (297) |
Total Value of Derivatives | $0 | $(297) |
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 86.3% |
United Kingdom | 3.6% |
Germany | 3.2% |
France | 1.6% |
Canada | 1.3% |
Norway | 1.1% |
Others (Individually Less Than 1%) | 2.9% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $5,830) — See accompanying schedule: Unaffiliated issuers (cost $408,980) | $463,269 | |
Fidelity Central Funds (cost $20,358) | 20,358 | |
Total Investment in Securities (cost $429,338) | $483,627 | |
Restricted cash | 47 | |
Receivable for investments sold | 1,509 | |
Receivable for fund shares sold | 232 | |
Dividends receivable | 1,540 | |
Distributions receivable from Fidelity Central Funds | 12 | |
Other receivables | 5 | |
Total assets | 486,972 | |
Liabilities | ||
Payable for investments purchased | $2,686 | |
Payable for fund shares redeemed | 592 | |
Accrued management fee | 164 | |
Distribution and service plan fees payable | 131 | |
Written options, at value (premium received $328) | 297 | |
Other affiliated payables | 88 | |
Other payables and accrued expenses | 53 | |
Collateral on securities loaned | 6,034 | |
Total liabilities | 10,045 | |
Net Assets | $476,927 | |
Net Assets consist of: | ||
Paid in capital | $407,884 | |
Total accumulated earnings (loss) | 69,043 | |
Net Assets | $476,927 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($242,751 ÷ 10,361.13 shares)(a) | $23.43 | |
Maximum offering price per share (100/94.25 of $23.43) | $24.86 | |
Class M: | ||
Net Asset Value and redemption price per share ($140,334 ÷ 5,982.58 shares)(a) | $23.46 | |
Maximum offering price per share (100/96.50 of $23.46) | $24.31 | |
Class C: | ||
Net Asset Value and offering price per share ($32,917 ÷ 1,517.36 shares)(a) | $21.69 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($45,112 ÷ 1,877.94 shares) | $24.02 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($15,813 ÷ 657.02 shares) | $24.07 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $7,141 | |
Interest | 2 | |
Income from Fidelity Central Funds (including $51 from security lending) | 148 | |
Total income | 7,291 | |
Expenses | ||
Management fee | $1,076 | |
Transfer agent fees | 474 | |
Distribution and service plan fees | 880 | |
Accounting fees | 95 | |
Custodian fees and expenses | 14 | |
Independent trustees' fees and expenses | 1 | |
Registration fees | 47 | |
Audit | 29 | |
Legal | 3 | |
Miscellaneous | 17 | |
Total expenses before reductions | 2,636 | |
Expense reductions | (16) | |
Total expenses after reductions | 2,620 | |
Net investment income (loss) | 4,671 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 12,480 | |
Fidelity Central Funds | 1 | |
Foreign currency transactions | 1 | |
Written options | 454 | |
Total net realized gain (loss) | 12,936 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $2) | (78,995) | |
Written options | 360 | |
Total change in net unrealized appreciation (depreciation) | (78,635) | |
Net gain (loss) | (65,699) | |
Net increase (decrease) in net assets resulting from operations | $(61,028) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $4,671 | $9,512 |
Net realized gain (loss) | 12,936 | 32,611 |
Change in net unrealized appreciation (depreciation) | (78,635) | 22,642 |
Net increase (decrease) in net assets resulting from operations | (61,028) | 64,765 |
Distributions to shareholders | (37,408) | (62,774) |
Share transactions - net increase (decrease) | 19,442 | (7,551) |
Total increase (decrease) in net assets | (78,994) | (5,560) |
Net Assets | ||
Beginning of period | 555,921 | 561,481 |
End of period | $476,927 | $555,921 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Growth & Income Fund Class A
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.32 | $28.69 | $30.29 | $26.89 | $26.36 | $28.95 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .24 | .49 | .43 | .41 | .37 | .42 |
Net realized and unrealized gain (loss) | (3.18) | 2.48 | .58 | 3.83 | 2.12 | (.76)B |
Total from investment operations | (2.94) | 2.97 | 1.01 | 4.24 | 2.49 | (.34) |
Distributions from net investment income | (.48) | (.47) | (.36) | (.39)C | (.39) | (.36) |
Distributions from net realized gain | (1.47) | (2.87) | (2.26) | (.45)C | (1.57) | (1.88) |
Total distributions | (1.95) | (3.34) | (2.61)D | (.84) | (1.96) | (2.25)E |
Net asset value, end of period | $23.43 | $28.32 | $28.69 | $30.29 | $26.89 | $26.36 |
Total ReturnF,G,H | (11.34)% | 13.65% | 3.42% | 16.15% | 10.59% | (.96)%B |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .96%K | .96% | .96% | .97% | .99% | .99% |
Expenses net of fee waivers, if any | .96%K | .96% | .96% | .97% | .99% | .98% |
Expenses net of all reductions | .95%K | .95% | .95% | .97% | .99% | .98% |
Net investment income (loss) | 1.98%K | 1.93% | 1.49% | 1.47% | 1.51% | 1.57% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $243 | $288 | $243 | $255 | $253 | $244 |
Portfolio turnover rateL | 35%K | 29% | 40% | 36% | 31% | 35% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been (1.10)%
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $2.61 per share is comprised of distributions from net investment income of $.355 and distributions from net realized gain of $2.257 per share.
E Total distributions of $2.25 per share is comprised of distributions from net investment income of $.363 and distributions from net realized gain of $1.883 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Growth & Income Fund Class M
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.31 | $28.67 | $30.26 | $26.87 | $26.32 | $28.91 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .21 | .43 | .36 | .34 | .31 | .35 |
Net realized and unrealized gain (loss) | (3.19) | 2.47 | .59 | 3.82 | 2.12 | (.76)B |
Total from investment operations | (2.98) | 2.90 | .95 | 4.16 | 2.43 | (.41) |
Distributions from net investment income | (.40) | (.39) | (.28) | (.32)C | (.32) | (.29) |
Distributions from net realized gain | (1.47) | (2.87) | (2.26) | (.45)C | (1.57) | (1.88) |
Total distributions | (1.87) | (3.26) | (2.54) | (.77) | (1.88)D | (2.18)E |
Net asset value, end of period | $23.46 | $28.31 | $28.67 | $30.26 | $26.87 | $26.32 |
Total ReturnF,G,H | (11.43)% | 13.33% | 3.19% | 15.85% | 10.36% | (1.22)%B |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.21%K | 1.21% | 1.21% | 1.23% | 1.24% | 1.23% |
Expenses net of fee waivers, if any | 1.20%K | 1.21% | 1.21% | 1.22% | 1.24% | 1.23% |
Expenses net of all reductions | 1.20%K | 1.20% | 1.20% | 1.22% | 1.24% | 1.23% |
Net investment income (loss) | 1.74%K | 1.68% | 1.24% | 1.22% | 1.26% | 1.32% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $140 | $172 | $175 | $186 | $176 | $180 |
Portfolio turnover rateL | 35%K | 29% | 40% | 36% | 31% | 35% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been (1.36)%
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $1.88 per share is comprised of distributions from net investment income of $.319 and distributions from net realized gain of $1.565 per share.
E Total distributions of $2.18 per share is comprised of distributions from net investment income of $.293 and distributions from net realized gain of $1.883 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Growth & Income Fund Class C
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.22 | $26.79 | $28.45 | $25.33 | $24.92 | $27.51 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .14 | .27 | .20 | .19 | .17 | .21 |
Net realized and unrealized gain (loss) | (2.96) | 2.28 | .55 | 3.60 | 2.01 | (.73)B |
Total from investment operations | (2.82) | 2.55 | .75 | 3.79 | 2.18 | (.52) |
Distributions from net investment income | (.24) | (.26) | (.15) | (.22)C | (.21) | (.18) |
Distributions from net realized gain | (1.47) | (2.87) | (2.26) | (.45)C | (1.57) | (1.88) |
Total distributions | (1.71) | (3.12)D | (2.41) | (.67) | (1.77)E | (2.07)F |
Net asset value, end of period | $21.69 | $26.22 | $26.79 | $28.45 | $25.33 | $24.92 |
Total ReturnG,H,I | (11.69)% | 12.74% | 2.64% | 15.28% | 9.81% | (1.74)%B |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.73%L | 1.73% | 1.72% | 1.73% | 1.74% | 1.73% |
Expenses net of fee waivers, if any | 1.73%L | 1.73% | 1.71% | 1.73% | 1.74% | 1.73% |
Expenses net of all reductions | 1.73%L | 1.73% | 1.71% | 1.72% | 1.74% | 1.73% |
Net investment income (loss) | 1.21%L | 1.15% | .73% | .72% | .76% | .82% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $33 | $41 | $75 | $86 | $80 | $79 |
Portfolio turnover rateM | 35%L | 29% | 40% | 36% | 31% | 35% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been (1.88)%
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $3.12 per share is comprised of distributions from net investment income of $.255 and distributions from net realized gain of $2.869 per share.
E Total distributions of $1.77 per share is comprised of distributions from net investment income of $.206 and distributions from net realized gain of $1.565 per share.
F Total distributions of $2.07 per share is comprised of distributions from net investment income of $.183 and distributions from net realized gain of $1.883 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the contingent deferred sales charge.
J Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Growth & Income Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.01 | $29.33 | $30.91 | $27.41 | $26.85 | $29.47 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .28 | .57 | .52 | .50 | .44 | .50 |
Net realized and unrealized gain (loss) | (3.26) | 2.52 | .60 | 3.90 | 2.16 | (.78)B |
Total from investment operations | (2.98) | 3.09 | 1.12 | 4.40 | 2.60 | (.28) |
Distributions from net investment income | (.54) | (.54) | (.44) | (.45)C | (.48) | (.45) |
Distributions from net realized gain | (1.47) | (2.87) | (2.26) | (.45)C | (1.57) | (1.88) |
Total distributions | (2.01) | (3.41) | (2.70) | (.90) | (2.04)D | (2.34)E |
Net asset value, end of period | $24.02 | $29.01 | $29.33 | $30.91 | $27.41 | $26.85 |
Total ReturnF,G | (11.21)% | 13.89% | 3.71% | 16.45% | 10.91% | (.70)%B |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .70%J | .70% | .69% | .70% | .73% | .71% |
Expenses net of fee waivers, if any | .70%J | .69% | .69% | .70% | .73% | .70% |
Expenses net of all reductions | .70%J | .69% | .69% | .70% | .73% | .70% |
Net investment income (loss) | 2.24%J | 2.19% | 1.75% | 1.74% | 1.77% | 1.86% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $45 | $48 | $47 | $53 | $35 | $36 |
Portfolio turnover rateK | 35%J | 29% | 40% | 36% | 31% | 35% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been (.84)%
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $2.04 per share is comprised of distributions from net investment income of $.478 and distributions from net realized gain of $1.565 per share.
E Total distributions of $2.34 per share is comprised of distributions from net investment income of $.454 and distributions from net realized gain of $1.883 per share.
F Total returns 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 Growth & Income Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||
2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $29.09 | $29.35 | $30.94 | $27.35 |
Income from Investment Operations | ||||
Net investment income (loss)B | .29 | .62 | .56 | .51 |
Net realized and unrealized gain (loss) | (3.26) | 2.53 | .59 | 3.08 |
Total from investment operations | (2.97) | 3.15 | 1.15 | 3.59 |
Distributions from net investment income | (.58) | (.54) | (.49) | – |
Distributions from net realized gain | (1.47) | (2.87) | (2.26) | – |
Total distributions | (2.05) | (3.41) | (2.74)C | – |
Net asset value, end of period | $24.07 | $29.09 | $29.35 | $30.94 |
Total ReturnD,E | (11.16)% | 14.11% | 3.84% | 13.13% |
Ratios to Average Net AssetsF,G | ||||
Expenses before reductions | .56%H | .56% | .56% | .57%H |
Expenses net of fee waivers, if any | .55%H | .56% | .56% | .57%H |
Expenses net of all reductions | .55%H | .55% | .55% | .57%H |
Net investment income (loss) | 2.39%H | 2.33% | 1.89% | 2.13%H |
Supplemental Data | ||||
Net assets, end of period (in millions) | $16 | $7 | $22 | $16 |
Portfolio turnover rateI | 35%H | 29% | 40% | 36% |
A For the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Total distributions of $2.74 per share is comprised of distributions from net investment income of $.486 and distributions from net realized gain of $2.257 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Growth & Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Exchange-traded options are valued using the last sale price or, in the absence of a sale, the last offering price and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, certain conversion ratio adjustments and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $120,451 |
Gross unrealized depreciation | (68,776) |
Net unrealized appreciation (depreciation) | $51,675 |
Tax cost | $431,983 |
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.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $723 in this Subsidiary, representing .15% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including options. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain OTC derivatives such as options, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement upon the deterioration in the credit quality of the counterparty beyond specified levels. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk on bi-lateral OTC derivatives, the Fund receives collateral in the form of cash or securities once the Fund's net unrealized appreciation on outstanding derivative contracts under an ISDA Master Agreement exceeds certain applicable thresholds, subject to certain minimum transfer provisions. The collateral received is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the counterparty and the Fund's custodian bank. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk related to bi-lateral OTC derivatives is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. The Fund may be required to pledge collateral for the benefit of the counterparties on bi-lateral OTC derivatives in an amount not less than each counterparty's unrealized appreciation on outstanding derivative contracts, subject to certain minimum transfer provisions, and any such pledged collateral is identified in the Schedule of Investments. Counterparty credit risk related to exchange-traded options may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date.
The Fund used exchange-traded and OTC written covered call options to manage its exposure to the market. When the Fund writes a covered call option, the Fund holds the underlying instrument which must be delivered to the holder upon the exercise of the option.
Upon entering into a written options contract, the Fund will receive a premium. Premiums received are reflected as a liability on the Statement of Assets and Liabilities. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When a written option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining the gain or loss realized on that investment. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction are greater or less than the premium received. When an option expires, gains and losses are realized to the extent of premiums received. The net realized gain (loss) on closed and expired written options and the change in net unrealized appreciation (depreciation) on written options are presented in the Statement of Operations.
Writing call options tends to decrease exposure to the underlying instrument and risk of loss is the change in value in excess of the premium received.
Any open options at period end are presented in the Schedule of Investments under the caption "Written Options" and are representative of volume of activity during the period.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Growth & Income Fund | 83,919 | 84,178 |
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 .20% 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. For the reporting period, the total annualized management fee rate was .43% 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% | $322 | $7 |
Class M | .25% | .25% | 377 | 9 |
Class C | .75% | .25% | 181 | 20 |
$880 | $36 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class 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 | $29 |
Class M | 8 |
Class C(a) | 2 |
$39 |
(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 | $249 | .19 |
Class M | 143 | .19 |
Class C | 39 | .22 |
Class I | 41 | .19 |
Class Z | 2 | .04 |
$474 |
(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 Growth & Income 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 Growth & Income 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.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $6.
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 Growth & Income Fund | $1 |
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. Total fees paid by the Fund to NFS, as lending agent, amounted to $5. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $4 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 $1.
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.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Distributions to shareholders | ||
Class A | $19,645 | $28,125 |
Class M | 11,240 | 19,861 |
Class C | 2,639 | 8,665 |
Class I | 3,375 | 5,384 |
Class Z | 509 | 739 |
Total | $37,408 | $62,774 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Class A | ||||
Shares sold | 416 | 2,141 | $10,158 | $53,751 |
Reinvestment of distributions | 680 | 1,185 | 18,480 | 26,128 |
Shares redeemed | (905) | (1,629) | (22,084) | (41,300) |
Net increase (decrease) | 191 | 1,697 | $6,554 | $38,579 |
Class M | ||||
Shares sold | 159 | 389 | $3,839 | $9,907 |
Reinvestment of distributions | 404 | 879 | 10,998 | 19,427 |
Shares redeemed | (669) | (1,276) | (16,526) | (32,309) |
Net increase (decrease) | (106) | (8) | $(1,689) | $(2,975) |
Class C | ||||
Shares sold | 106 | 325 | $2,374 | $7,678 |
Reinvestment of distributions | 102 | 415 | 2,577 | 8,532 |
Shares redeemed | (236) | (2,002) | (5,090) | (46,928) |
Net increase (decrease) | (28) | (1,262) | $(139) | $(30,718) |
Class I | ||||
Shares sold | 521 | 637 | $12,488 | $16,618 |
Reinvestment of distributions | 109 | 212 | 3,021 | 4,787 |
Shares redeemed | (398) | (796) | (9,812) | (20,915) |
Net increase (decrease) | 232 | 53 | $5,697 | $490 |
Class Z | ||||
Shares sold | 435 | 253 | $9,703 | $6,620 |
Reinvestment of distributions | 13 | 19 | 358 | 425 |
Shares redeemed | (41) | (759) | (1,042) | (19,972) |
Net increase (decrease) | 407 | (487) | $9,019 | $(12,927) |
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 (December 1, 2019 to May 31, 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 December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Class A | .96% | |||
Actual | $1,000.00 | $886.60 | $4.53 | |
Hypothetical-C | $1,000.00 | $1,020.20 | $4.85 | |
Class M | 1.20% | |||
Actual | $1,000.00 | $885.70 | $5.66 | |
Hypothetical-C | $1,000.00 | $1,019.00 | $6.06 | |
Class C | 1.73% | |||
Actual | $1,000.00 | $883.10 | $8.14 | |
Hypothetical-C | $1,000.00 | $1,016.35 | $8.72 | |
Class I | .70% | |||
Actual | $1,000.00 | $887.90 | $3.30 | |
Hypothetical-C | $1,000.00 | $1,021.50 | $3.54 | |
Class Z | .55% | |||
Actual | $1,000.00 | $888.40 | $2.60 | |
Hypothetical-C | $1,000.00 | $1,022.25 | $2.78 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Growth & Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 Growth & Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613068585.jpg)
Fidelity Advisor Growth & Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613068887.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.
AGAI-SANN-0720
1.704634.122
Fidelity Advisor® Small Cap Fund
Semi-Annual Report
May 31, 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.
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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
BJ's Wholesale Club Holdings, Inc. | 2.4 |
Chemed Corp. | 2.1 |
Generac Holdings, Inc. | 1.8 |
Charles River Laboratories International, Inc. | 1.7 |
ICON PLC | 1.5 |
SYNNEX Corp. | 1.5 |
Nomad Foods Ltd. | 1.5 |
First Citizens Bancshares, Inc. | 1.4 |
Churchill Downs, Inc. | 1.4 |
Murphy U.S.A., Inc. | 1.4 |
16.7 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Information Technology | 19.7 |
Industrials | 17.9 |
Health Care | 17.8 |
Financials | 14.0 |
Consumer Discretionary | 11.1 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020 * | ||
Stocks | 99.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 11.9%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 3.0% | |||
Media - 2.7% | |||
Cogeco Communications, Inc. | 167,500 | $12,509 | |
Gray Television, Inc. (a) | 1,092,600 | 15,231 | |
The New York Times Co. Class A (b) | 305,100 | 11,969 | |
39,709 | |||
Wireless Telecommunication Services - 0.3% | |||
Boingo Wireless, Inc. (a) | 306,500 | 4,199 | |
TOTAL COMMUNICATION SERVICES | 43,908 | ||
CONSUMER DISCRETIONARY - 11.1% | |||
Diversified Consumer Services - 0.6% | |||
Grand Canyon Education, Inc. (a) | 87,300 | 8,520 | |
Hotels, Restaurants & Leisure - 2.3% | |||
Churchill Downs, Inc. | 155,700 | 20,657 | |
Hilton Grand Vacations, Inc. (a) | 181,513 | 3,910 | |
Planet Fitness, Inc. (a) | 145,600 | 9,410 | |
33,977 | |||
Household Durables - 4.1% | |||
Cavco Industries, Inc. (a) | 77,000 | 14,645 | |
Taylor Morrison Home Corp. (a) | 800,300 | 15,470 | |
TopBuild Corp. (a) | 130,800 | 15,001 | |
TRI Pointe Homes, Inc. (a) | 1,032,900 | 14,791 | |
59,907 | |||
Leisure Products - 1.1% | |||
Brunswick Corp. | 72,000 | 3,961 | |
Clarus Corp. | 513,267 | 5,389 | |
YETI Holdings, Inc. (a)(b) | 200,700 | 6,442 | |
15,792 | |||
Multiline Retail - 1.0% | |||
Ollie's Bargain Outlet Holdings, Inc. (a)(b) | 150,900 | 13,800 | |
Specialty Retail - 1.4% | |||
Murphy U.S.A., Inc. (a) | 175,900 | 20,422 | |
Textiles, Apparel & Luxury Goods - 0.6% | |||
Carter's, Inc. | 92,100 | 7,912 | |
TOTAL CONSUMER DISCRETIONARY | 160,330 | ||
CONSUMER STAPLES - 3.9% | |||
Food & Staples Retailing - 2.4% | |||
BJ's Wholesale Club Holdings, Inc. (a)(b) | 971,530 | 34,974 | |
Food Products - 1.5% | |||
Nomad Foods Ltd. (a) | 1,019,800 | 21,599 | |
TOTAL CONSUMER STAPLES | 56,573 | ||
ENERGY - 1.1% | |||
Energy Equipment & Services - 0.3% | |||
Cactus, Inc. | 217,700 | 4,154 | |
Oil, Gas & Consumable Fuels - 0.8% | |||
Hess Midstream LP (b) | 374,648 | 7,276 | |
Rattler Midstream LP | 526,600 | 4,429 | |
11,705 | |||
TOTAL ENERGY | 15,859 | ||
FINANCIALS - 14.0% | |||
Banks - 5.6% | |||
ConnectOne Bancorp, Inc. | 959,400 | 14,065 | |
First Citizens Bancshares, Inc. | 54,900 | 21,137 | |
First Interstate Bancsystem, Inc. | 360,800 | 11,275 | |
Independent Bank Corp., Massachusetts | 138,300 | 9,608 | |
Old National Bancorp, Indiana | 347,700 | 4,725 | |
ServisFirst Bancshares, Inc. | 375,000 | 13,080 | |
Trico Bancshares | 251,700 | 7,141 | |
81,031 | |||
Capital Markets - 2.8% | |||
Blucora, Inc. (a) | 425,740 | 5,173 | |
LPL Financial | 269,400 | 19,232 | |
Morningstar, Inc. | 111,509 | 17,097 | |
41,502 | |||
Consumer Finance - 1.3% | |||
First Cash Financial Services, Inc. | 266,400 | 18,587 | |
Insurance - 2.2% | |||
Enstar Group Ltd. (a) | 57,202 | 8,146 | |
Hastings Group Holdings PLC (c) | 3,303,071 | 7,506 | |
Primerica, Inc. | 137,900 | 15,671 | |
Selectquote, Inc. | 14,800 | 407 | |
31,730 | |||
Thrifts & Mortgage Finance - 2.1% | |||
Essent Group Ltd. | 530,023 | 17,517 | |
WSFS Financial Corp. | 450,800 | 12,474 | |
29,991 | |||
TOTAL FINANCIALS | 202,841 | ||
HEALTH CARE - 17.8% | |||
Biotechnology - 4.5% | |||
Acceleron Pharma, Inc. (a) | 111,700 | 11,039 | |
ADC Therapeutics SA (a) | 29,383 | 1,086 | |
Agios Pharmaceuticals, Inc. (a) | 52,800 | 2,732 | |
Black Diamond Therapeutics, Inc. (a) | 9,700 | 379 | |
FibroGen, Inc. (a) | 174,300 | 5,829 | |
G1 Therapeutics, Inc. (a) | 57,500 | 976 | |
Global Blood Therapeutics, Inc. (a) | 88,900 | 6,216 | |
Immunomedics, Inc. (a) | 48,400 | 1,626 | |
Kezar Life Sciences, Inc. (a) | 164,200 | 783 | |
Kura Oncology, Inc. (a) | 195,500 | 3,341 | |
Mirati Therapeutics, Inc. (a) | 57,500 | 5,703 | |
Passage Bio, Inc. | 131,900 | 2,906 | |
Principia Biopharma, Inc. (a) | 97,500 | 6,229 | |
Revolution Medicines, Inc. | 118,800 | 3,650 | |
TG Therapeutics, Inc. (a) | 218,000 | 4,066 | |
Viela Bio, Inc. | 134,800 | 6,322 | |
Xenon Pharmaceuticals, Inc. (a) | 209,800 | 2,874 | |
65,757 | |||
Health Care Equipment & Supplies - 3.2% | |||
Integra LifeSciences Holdings Corp. (a) | 243,200 | 12,673 | |
Masimo Corp. (a) | 75,300 | 18,086 | |
Tandem Diabetes Care, Inc. (a) | 162,600 | 13,520 | |
TransMedics Group, Inc. | 146,600 | 1,937 | |
46,216 | |||
Health Care Providers & Services - 3.8% | |||
Andlauer Healthcare Group, Inc. | 74,900 | 1,843 | |
Chemed Corp. | 64,000 | 30,625 | |
Encompass Health Corp. | 154,100 | 11,288 | |
LHC Group, Inc. (a) | 65,177 | 10,592 | |
54,348 | |||
Health Care Technology - 1.2% | |||
HMS Holdings Corp. (a) | 322,400 | 10,072 | |
Phreesia, Inc. | 272,900 | 8,001 | |
18,073 | |||
Life Sciences Tools & Services - 3.9% | |||
10X Genomics, Inc. (a) | 9,700 | 756 | |
Charles River Laboratories International, Inc. (a) | 137,000 | 24,613 | |
ICON PLC (a) | 132,600 | 22,336 | |
PRA Health Sciences, Inc. (a) | 85,500 | 8,849 | |
56,554 | |||
Pharmaceuticals - 1.2% | |||
Arvinas Holding Co. LLC (a) | 67,400 | 2,242 | |
Horizon Pharma PLC (a) | 212,700 | 10,790 | |
IMARA, Inc. | 57,734 | 1,934 | |
Nektar Therapeutics (a) | 116,500 | 2,528 | |
17,494 | |||
TOTAL HEALTH CARE | 258,442 | ||
INDUSTRIALS - 17.9% | |||
Aerospace & Defense - 0.5% | |||
Vectrus, Inc. (a) | 127,297 | 6,991 | |
Building Products - 1.8% | |||
Armstrong World Industries, Inc. | 123,900 | 9,341 | |
Masonite International Corp. (a) | 70,800 | 4,700 | |
Patrick Industries, Inc. | 242,164 | 12,561 | |
26,602 | |||
Commercial Services & Supplies - 1.4% | |||
Tetra Tech, Inc. | 257,800 | 20,340 | |
Construction & Engineering - 0.7% | |||
EMCOR Group, Inc. | 153,200 | 9,736 | |
Electrical Equipment - 2.7% | |||
Atkore International Group, Inc. (a) | 509,000 | 13,662 | |
Generac Holdings, Inc. (a) | 236,400 | 26,304 | |
39,966 | |||
Machinery - 6.5% | |||
Douglas Dynamics, Inc. | 268,407 | 9,808 | |
ESCO Technologies, Inc. | 130,300 | 10,764 | |
ITT, Inc. | 302,700 | 17,466 | |
Luxfer Holdings PLC sponsored | 932,800 | 13,050 | |
Oshkosh Corp. | 281,500 | 20,217 | |
Rexnord Corp. | 400,000 | 12,040 | |
SPX Flow, Inc. (a) | 298,324 | 10,316 | |
93,661 | |||
Professional Services - 3.7% | |||
ASGN, Inc. (a) | 297,200 | 18,305 | |
FTI Consulting, Inc. (a)(b) | 166,000 | 19,996 | |
ICF International, Inc. | 233,979 | 15,344 | |
53,645 | |||
Trading Companies & Distributors - 0.6% | |||
GMS, Inc. (a) | 452,218 | 9,266 | |
TOTAL INDUSTRIALS | 260,207 | ||
INFORMATION TECHNOLOGY - 19.7% | |||
Electronic Equipment & Components - 5.0% | |||
CDW Corp. | 135,400 | 15,017 | |
ePlus, Inc. (a) | 182,489 | 13,451 | |
Insight Enterprises, Inc. (a) | 245,572 | 12,588 | |
Napco Security Technolgies, Inc. (a)(b) | 407,451 | 9,257 | |
SYNNEX Corp. | 206,941 | 22,070 | |
72,383 | |||
IT Services - 6.2% | |||
Booz Allen Hamilton Holding Corp. Class A | 229,900 | 18,337 | |
Endava PLC ADR (a) | 121,308 | 5,832 | |
Euronet Worldwide, Inc. (a) | 67,400 | 6,385 | |
Genpact Ltd. | 489,400 | 17,594 | |
Hackett Group, Inc. | 172,240 | 2,375 | |
KBR, Inc. | 520,200 | 12,199 | |
Maximus, Inc. | 128,900 | 9,283 | |
Repay Holdings Corp. (a)(b) | 746,860 | 17,208 | |
89,213 | |||
Semiconductors & Semiconductor Equipment - 2.6% | |||
Entegris, Inc. | 260,600 | 15,605 | |
Onto Innovation, Inc. (a) | 361,600 | 11,239 | |
Synaptics, Inc. (a)(b) | 176,250 | 11,231 | |
38,075 | |||
Software - 5.9% | |||
Everbridge, Inc. (a) | 91,700 | 13,412 | |
Five9, Inc. (a) | 140,300 | 14,619 | |
j2 Global, Inc. (b) | 222,900 | 17,453 | |
Pegasystems, Inc. | 99,800 | 9,493 | |
Pluralsight, Inc. (a) | 431,600 | 8,990 | |
Proofpoint, Inc. (a) | 98,800 | 11,487 | |
RealPage, Inc. (a) | 99,209 | 6,728 | |
Zensar Technologies Ltd. | 3,219,311 | 3,698 | |
85,880 | |||
TOTAL INFORMATION TECHNOLOGY | 285,551 | ||
MATERIALS - 3.9% | |||
Chemicals - 2.0% | |||
Ashland Global Holdings, Inc. | 154,800 | 10,396 | |
Element Solutions, Inc. (a) | 1,721,600 | 18,748 | |
29,144 | |||
Construction Materials - 0.7% | |||
Eagle Materials, Inc. | 153,800 | 10,268 | |
Containers & Packaging - 1.2% | |||
Aptargroup, Inc. | 156,600 | 17,444 | |
TOTAL MATERIALS | 56,856 | ||
REAL ESTATE - 3.8% | |||
Equity Real Estate Investment Trusts (REITs) - 2.5% | |||
Americold Realty Trust | 472,600 | 16,877 | |
CoreSite Realty Corp. | 80,300 | 10,023 | |
EPR Properties | 158,900 | 5,016 | |
Essential Properties Realty Trust, Inc. | 351,901 | 4,800 | |
36,716 | |||
Real Estate Management & Development - 1.3% | |||
CBRE Group, Inc. (a) | 156,800 | 6,896 | |
Cushman & Wakefield PLC (a) | 1,117,500 | 11,454 | |
18,350 | |||
TOTAL REAL ESTATE | 55,066 | ||
UTILITIES - 2.0% | |||
Electric Utilities - 0.6% | |||
Portland General Electric Co. | 197,900 | 9,323 | |
Gas Utilities - 0.7% | |||
Star Gas Partners LP | 1,356,200 | 10,714 | |
Multi-Utilities - 0.7% | |||
Telecom Plus PLC | 539,026 | 9,666 | |
TOTAL UTILITIES | 29,703 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,233,459) | 1,425,336 | ||
Money Market Funds - 8.0% | |||
Fidelity Cash Central Fund 0.11% (d) | 9,572,057 | 9,574 | |
Fidelity Securities Lending Cash Central Fund 0.10% (d)(e) | 106,344,451 | 106,355 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $115,929) | 115,929 | ||
Equity Funds - 1.3% | |||
Small Blend Funds - 1.3% | |||
iShares Russell 2000 Index ETF (b) | |||
(Cost $15,911) | 132,700 | 18,432 | |
TOTAL INVESTMENT IN SECURITIES - 107.5% | |||
(Cost $1,365,299) | 1,559,697 | ||
NET OTHER ASSETS (LIABILITIES) - (7.5)% | (108,782) | ||
NET ASSETS - 100% | $1,450,915 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $7,506,000 or 0.5% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $48 |
Fidelity Securities Lending Cash Central Fund | 41 |
Total | $89 |
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 May 31, 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 | $43,908 | $43,908 | $-- | $-- |
Consumer Discretionary | 160,330 | 160,330 | -- | -- |
Consumer Staples | 56,573 | 56,573 | -- | -- |
Energy | 15,859 | 15,859 | -- | -- |
Financials | 202,841 | 202,841 | -- | -- |
Health Care | 258,442 | 258,442 | -- | -- |
Industrials | 260,207 | 260,207 | -- | -- |
Information Technology | 285,551 | 285,551 | -- | -- |
Materials | 56,856 | 56,856 | -- | -- |
Real Estate | 55,066 | 55,066 | -- | -- |
Utilities | 29,703 | 29,703 | -- | -- |
Money Market Funds | 115,929 | 115,929 | -- | -- |
Equity Funds | 18,432 | 18,432 | -- | -- |
Total Investments in Securities: | $1,559,697 | $1,559,697 | $-- | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.1% |
United Kingdom | 3.3% |
Bermuda | 3.0% |
Ireland | 2.2% |
Canada | 1.5% |
British Virgin Islands | 1.5% |
Others (Individually Less Than 1%) | 0.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $105,804) — See accompanying schedule: Unaffiliated issuers (cost $1,249,370) | $1,443,768 | |
Fidelity Central Funds (cost $115,929) | 115,929 | |
Total Investment in Securities (cost $1,365,299) | $1,559,697 | |
Receivable for investments sold | 1,487 | |
Receivable for fund shares sold | 511 | |
Dividends receivable | 519 | |
Distributions receivable from Fidelity Central Funds | 11 | |
Other receivables | 2 | |
Total assets | 1,562,227 | |
Liabilities | ||
Payable for investments purchased | $62 | |
Payable for fund shares redeemed | 3,376 | |
Accrued management fee | 840 | |
Distribution and service plan fees payable | 339 | |
Other affiliated payables | 253 | |
Other payables and accrued expenses | 90 | |
Collateral on securities loaned | 106,352 | |
Total liabilities | 111,312 | |
Net Assets | $1,450,915 | |
Net Assets consist of: | ||
Paid in capital | $1,325,500 | |
Total accumulated earnings (loss) | 125,415 | |
Net Assets | $1,450,915 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($543,719 ÷ 25,850 shares)(a) | $21.03 | |
Maximum offering price per share (100/94.25 of $21.03) | $22.31 | |
Class M: | ||
Net Asset Value and redemption price per share ($442,050 ÷ 23,220 shares)(a) | $19.04 | |
Maximum offering price per share (100/96.50 of $19.04) | $19.73 | |
Class C: | ||
Net Asset Value and offering price per share ($75,785 ÷ 5,211 shares)(a) | $14.54 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($326,337 ÷ 13,812 shares) | $23.63 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($63,024 ÷ 2,659 shares) | $23.70 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $7,019 | |
Income from Fidelity Central Funds (including $41 from security lending) | 89 | |
Total income | 7,108 | |
Expenses | ||
Management fee | ||
Basic fee | $5,360 | |
Performance adjustment | 146 | |
Transfer agent fees | 1,493 | |
Distribution and service plan fees | 2,287 | |
Accounting fees | 244 | |
Custodian fees and expenses | 25 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 51 | |
Audit | 35 | |
Legal | 4 | |
Interest | 4 | |
Miscellaneous | 68 | |
Total expenses before reductions | 9,722 | |
Expense reductions | (58) | |
Total expenses after reductions | 9,664 | |
Net investment income (loss) | (2,556) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (52,389) | |
Fidelity Central Funds | 3 | |
Foreign currency transactions | (8) | |
Total net realized gain (loss) | (52,394) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (143,066) | |
Total change in net unrealized appreciation (depreciation) | (143,066) | |
Net gain (loss) | (195,460) | |
Net increase (decrease) in net assets resulting from operations | $(198,016) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(2,556) | $(3,037) |
Net realized gain (loss) | (52,394) | 73,344 |
Change in net unrealized appreciation (depreciation) | (143,066) | 155,042 |
Net increase (decrease) in net assets resulting from operations | (198,016) | 225,349 |
Distributions to shareholders | (70,605) | (233,679) |
Share transactions - net increase (decrease) | (122,391) | (240,341) |
Total increase (decrease) in net assets | (391,012) | (248,671) |
Net Assets | ||
Beginning of period | 1,841,927 | 2,090,598 |
End of period | $1,450,915 | $1,841,927 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Small Cap Fund Class A
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $24.25 | $24.46 | $29.35 | $25.52 | $27.56 | $29.85 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.03) | (.03) | (.04) | .03 | .12B | .02C |
Net realized and unrealized gain (loss) | (2.26) | 2.56 | (1.28) | 4.18 | .05 | 1.10 |
Total from investment operations | (2.29) | 2.53 | (1.32) | 4.21 | .17 | 1.12 |
Distributions from net investment income | – | – | – | (.08) | – | – |
Distributions from net realized gain | (.93) | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Total distributions | (.93) | (2.74) | (3.57) | (.38) | (2.21) | (3.41) |
Net asset value, end of period | $21.03 | $24.25 | $24.46 | $29.35 | $25.52 | $27.56 |
Total ReturnD,E,F | (9.90)% | 13.97% | (5.18)% | 16.68% | 1.31% | 4.17% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.22%I | .98% | .97% | 1.05% | 1.32% | 1.26% |
Expenses net of fee waivers, if any | 1.21%I | .98% | .97% | 1.05% | 1.32% | 1.26% |
Expenses net of all reductions | 1.21%I | .98% | .96% | 1.04% | 1.31% | 1.25% |
Net investment income (loss) | (.30)%I | (.13)% | (.13)% | .10% | .52%B | .07%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $544 | $654 | $640 | $805 | $932 | $1,047 |
Portfolio turnover rateJ | 37%I | 56% | 74% | 84% | 81% | 33% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .07%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.16) %.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Small Cap Fund Class M
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.06 | $22.58 | $27.43 | $23.88 | $25.99 | $28.40 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.05) | (.07) | (.09) | (.03) | .07B | (.04)C |
Net realized and unrealized gain (loss) | (2.04) | 2.29 | (1.19) | 3.91 | .03 | 1.04 |
Total from investment operations | (2.09) | 2.22 | (1.28) | 3.88 | .10 | 1.00 |
Distributions from net investment income | – | – | – | (.03) | – | – |
Distributions from net realized gain | (.93) | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Total distributions | (.93) | (2.74) | (3.57) | (.33) | (2.21) | (3.41) |
Net asset value, end of period | $19.04 | $22.06 | $22.58 | $27.43 | $23.88 | $25.99 |
Total ReturnD,E,F | (9.97)% | 13.73% | (5.42)% | 16.41% | 1.10% | 3.93% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.45%I | 1.22% | 1.20% | 1.28% | 1.54% | 1.49% |
Expenses net of fee waivers, if any | 1.44%I | 1.22% | 1.20% | 1.28% | 1.54% | 1.49% |
Expenses net of all reductions | 1.44%I | 1.21% | 1.19% | 1.27% | 1.54% | 1.49% |
Net investment income (loss) | (.53)%I | (.36)% | (.37)% | (.13)% | .29%B | (.16)%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $442 | $542 | $580 | $734 | $756 | $888 |
Portfolio turnover rateJ | 37%I | 56% | 74% | 84% | 81% | 33% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.16) %.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.39) %.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Small Cap Fund Class C
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.11 | $18.32 | $23.02 | $20.17 | $22.44 | $25.10 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.08) | (.15) | (.18) | (.14) | (.05)B | (.16)C |
Net realized and unrealized gain (loss) | (1.56) | 1.68 | (.95) | 3.29 | (.01) | .91 |
Total from investment operations | (1.64) | 1.53 | (1.13) | 3.15 | (.06) | .75 |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (.93) | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Total distributions | (.93) | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Net asset value, end of period | $14.54 | $17.11 | $18.32 | $23.02 | $20.17 | $22.44 |
Total ReturnD,E,F | (10.24)% | 13.05% | (5.88)% | 15.80% | .50% | 3.38% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 2.03%I | 1.79% | 1.74% | 1.81% | 2.08% | 2.02% |
Expenses net of fee waivers, if any | 2.02%I | 1.79% | 1.74% | 1.81% | 2.08% | 2.02% |
Expenses net of all reductions | 2.02%I | 1.78% | 1.73% | 1.80% | 2.07% | 2.01% |
Net investment income (loss) | (1.11)%I | (.93)% | (.90)% | (.66)% | (.24)%B | (.69)%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $76 | $96 | $196 | $273 | $274 | $318 |
Portfolio turnover rateJ | 37%I | 56% | 74% | 84% | 81% | 33% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.69) %.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.91) %.
D Total returns 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 Small Cap Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.09 | $26.89 | $31.84 | $27.65 | $29.59 | $31.80 |
Income from Investment Operations | ||||||
Net investment income (loss)A | –B | .03 | .04 | .11 | .20C | .10D |
Net realized and unrealized gain (loss) | (2.53) | 2.91 | (1.42) | 4.54 | .07 | 1.18 |
Total from investment operations | (2.53) | 2.94 | (1.38) | 4.65 | .27 | 1.28 |
Distributions from net investment income | – | – | – | (.15) | – | (.08) |
Distributions from net realized gain | (.93) | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Total distributions | (.93) | (2.74) | (3.57) | (.46)E | (2.21) | (3.49) |
Net asset value, end of period | $23.63 | $27.09 | $26.89 | $31.84 | $27.65 | $29.59 |
Total ReturnF,G | (9.74)% | 14.26% | (4.93)% | 17.01% | 1.58% | 4.46% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .95%J | .72% | .71% | .78% | 1.05% | .99% |
Expenses net of fee waivers, if any | .95%J | .72% | .71% | .78% | 1.04% | .99% |
Expenses net of all reductions | .94%J | .72% | .70% | .77% | 1.04% | .99% |
Net investment income (loss) | (.03)%J | .14% | .12% | .37% | .79%C | .34%D |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $326 | $434 | $604 | $758 | $652 | $704 |
Portfolio turnover rateK | 37%J | 56% | 74% | 84% | 81% | 33% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .34%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .11%.
E Total distributions of $.46 per share is comprised of distributions from net investment income of $.152 and distributions from net realized gain of $.304 per share.
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 Small Cap Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.15 | $26.90 | $31.81 | $27.63 | $29.53 | $31.76 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .01 | .07 | .08 | .15 | .24B | .14C |
Net realized and unrealized gain (loss) | (2.53) | 2.92 | (1.42) | 4.53 | .07 | 1.17 |
Total from investment operations | (2.52) | 2.99 | (1.34) | 4.68 | .31 | 1.31 |
Distributions from net investment income | – | – | – | (.20) | – | (.14) |
Distributions from net realized gain | (.93) | (2.74) | (3.57) | (.30) | (2.21) | (3.41) |
Total distributions | (.93) | (2.74) | (3.57) | (.50) | (2.21) | (3.54)D |
Net asset value, end of period | $23.70 | $27.15 | $26.90 | $31.81 | $27.63 | $29.53 |
Total ReturnE,F | (9.68)% | 14.46% | (4.80)% | 17.17% | 1.73% | 4.59% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .80%I | .57% | .56% | .63% | .89% | .84% |
Expenses net of fee waivers, if any | .80%I | .57% | .56% | .63% | .89% | .84% |
Expenses net of all reductions | .79%I | .57% | .55% | .62% | .89% | .84% |
Net investment income (loss) | .11%I | .29% | .28% | .51% | .94%B | .48%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $63 | $117 | $71 | $57 | $44 | $41 |
Portfolio turnover rateJ | 37%I | 56% | 74% | 84% | 81% | 33% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .50%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .26%.
D Total distributions of $3.54 per share is comprised of distributions from net investment income of $.136 and distributions from net realized gain of $3.406 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Small Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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.
ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, market discount, net operating losses and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $314,063 |
Gross unrealized depreciation | (126,575) |
Net unrealized appreciation (depreciation) | $187,488 |
Tax cost | $1,372,209 |
The Fund elected to defer to its next fiscal year $10,650 of ordinary losses recognized during the period January 1, 2019 to November 30, 2019.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Small Cap Fund | 295,297 | 491,959 |
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 .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 2000 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .70% 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% | $709 | $9 |
Class M | .25% | .25% | 1,170 | 9 |
Class C | .75% | .25% | 408 | 29 |
$2,287 | $47 |
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 | $35 |
Class M | 5 |
Class C(a) | 4 |
$44 |
(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 | $587 | .21 |
Class M | 438 | .19 |
Class C | 108 | .27 |
Class I | 339 | .19 |
Class Z | 21 | .04 |
$1,493 |
(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 Small Cap 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 Small Cap Fund | $18 |
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, there 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 Small Cap Fund | Borrower | $19,902 | 1.30% | $4 |
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.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $3.
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 Small Cap 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 $4. 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 $36 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 $4.
In addition, during the period the investment adviser or an affiliate reimbursed the Fund $18 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 May 31, 2020 | Year ended November 30, 2019 | |
Distributions to shareholders | ||
Class A | $24,708 | $70,409 |
Class M | 22,581 | 69,540 |
Class C | 5,121 | 28,270 |
Class I | 14,130 | 58,773 |
Class Z | 4,065 | 6,687 |
Total | $70,605 | $233,679 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Class A | ||||
Shares sold | 1,192 | 5,398 | $24,699 | $117,576 |
Reinvestment of distributions | 1,006 | 3,724 | 23,936 | 68,215 |
Shares redeemed | (3,301) | (8,332) | (69,600) | (183,112) |
Net increase (decrease) | (1,103) | 790 | $(20,965) | $2,679 |
Class M | ||||
Shares sold | 1,440 | 2,649 | $26,814 | $52,736 |
Reinvestment of distributions | 1,035 | 4,110 | 22,299 | 68,624 |
Shares redeemed | (3,812) | (7,883) | (72,066) | (157,565) |
Net increase (decrease) | (1,337) | (1,124) | $(22,953) | $(36,205) |
Class C | ||||
Shares sold | 230 | 637 | $3,380 | $9,759 |
Reinvestment of distributions | 302 | 2,131 | 4,988 | 27,737 |
Shares redeemed | (937) | (7,879) | (13,523) | (121,637) |
Net increase (decrease) | (405) | (5,111) | $(5,155) | $(84,141) |
Class I | ||||
Shares sold | 1,381 | 2,794 | $32,578 | $67,982 |
Reinvestment of distributions | 491 | 2,665 | 13,113 | 54,406 |
Shares redeemed | (4,070) | (11,902) | (95,945) | (288,598) |
Net increase (decrease) | (2,198) | (6,443) | $(50,254) | $(166,210) |
Class Z | ||||
Shares sold | 2,316 | 3,553 | $56,520 | $90,450 |
Reinvestment of distributions | 129 | 290 | 3,452 | 5,933 |
Shares redeemed | (4,096) | (2,166) | (83,036) | (52,848) |
Net increase (decrease) | (1,651) | 1,677 | $(23,064) | $43,535 |
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 (December 1, 2019 to May 31, 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 December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Class A | 1.21% | |||
Actual | $1,000.00 | $901.00 | $5.75 | |
Hypothetical-C | $1,000.00 | $1,018.95 | $6.11 | |
Class M | 1.44% | |||
Actual | $1,000.00 | $900.30 | $6.84 | |
Hypothetical-C | $1,000.00 | $1,017.80 | $7.26 | |
Class C | 2.02% | |||
Actual | $1,000.00 | $897.60 | $9.58 | |
Hypothetical-C | $1,000.00 | $1,014.90 | $10.18 | |
Class I | .95% | |||
Actual | $1,000.00 | $902.60 | $4.52 | |
Hypothetical-C | $1,000.00 | $1,020.25 | $4.80 | |
Class Z | .80% | |||
Actual | $1,000.00 | $903.20 | $3.81 | |
Hypothetical-C | $1,000.00 | $1,021.00 | $4.04 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Small Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 June 2018 and July 2019. The Board will continue to monitor closely the fund's performance, taking into account the portfolio management changes.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 Small Cap Fund
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Fidelity Advisor Small Cap Fund
The Board noted that the comparisons for 2015 and later reflect a revised Total Mapped Group that no longer includes funds with micro-cap objectives and that FMR believes this Total Mapped Group is a more appropriate comparison because the fund does not have a micro-cap objective.
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613075868.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.
ASCF-SANN-0720
1.721218.121
Fidelity Advisor® Stock Selector Mid Cap Fund
Semi-Annual Report
May 31, 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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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
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 May 31, 2020
% of fund's net assets | |
AECOM | 2.3 |
Sensata Technologies, Inc. PLC | 1.6 |
First Horizon National Corp. | 1.6 |
Masimo Corp. | 1.5 |
Allison Transmission Holdings, Inc. | 1.4 |
Molina Healthcare, Inc. | 1.3 |
HD Supply Holdings, Inc. | 1.3 |
Penumbra, Inc. | 1.2 |
Discover Financial Services | 1.2 |
Jeld-Wen Holding, Inc. | 1.2 |
14.6 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Information Technology | 16.2 |
Industrials | 15.6 |
Financials | 14.0 |
Consumer Discretionary | 12.7 |
Health Care | 12.0 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020 * | ||
Stocks and Equity Futures | 97.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.6% |
* Foreign investments - 11.5%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.4% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 1.8% | |||
Diversified Telecommunication Services - 0.3% | |||
GCI Liberty, Inc. (a) | 73,424 | $5,080 | |
Media - 1.5% | |||
Discovery Communications, Inc. Class A (a)(b) | 138,180 | 3,005 | |
Interpublic Group of Companies, Inc. | 213,051 | 3,645 | |
Liberty Broadband Corp. Class A (a) | 44,387 | 5,978 | |
Liberty Media Corp. Liberty SiriusXM Series A (a) | 114,300 | 4,172 | |
Nexstar Broadcasting Group, Inc. Class A | 31,700 | 2,641 | |
Omnicom Group, Inc. | 59,882 | 3,281 | |
ViacomCBS, Inc. Class B | 207,700 | 4,308 | |
27,030 | |||
TOTAL COMMUNICATION SERVICES | 32,110 | ||
CONSUMER DISCRETIONARY - 12.7% | |||
Auto Components - 2.4% | |||
BorgWarner, Inc. | 489,000 | 15,721 | |
Gentex Corp. | 258,100 | 6,824 | |
Lear Corp. | 181,000 | 19,195 | |
41,740 | |||
Automobiles - 0.4% | |||
Harley-Davidson, Inc. (b) | 358,100 | 7,642 | |
Distributors - 0.9% | |||
LKQ Corp. (a) | 579,600 | 15,916 | |
Diversified Consumer Services - 0.6% | |||
H&R Block, Inc. | 604,100 | 10,270 | |
Hotels, Restaurants & Leisure - 0.4% | |||
Darden Restaurants, Inc. | 98,400 | 7,563 | |
Household Durables - 2.8% | |||
Lennar Corp. Class A | 176,400 | 10,665 | |
Mohawk Industries, Inc. (a) | 132,800 | 12,377 | |
NVR, Inc. (a) | 3,300 | 10,631 | |
Whirlpool Corp. | 133,900 | 16,312 | |
49,985 | |||
Leisure Products - 0.6% | |||
Mattel, Inc. (a)(b) | 1,073,300 | 9,885 | |
Multiline Retail - 0.5% | |||
Dollar Tree, Inc. (a) | 85,300 | 8,348 | |
Specialty Retail - 0.7% | |||
AutoNation, Inc. (a) | 302,400 | 11,939 | |
Textiles, Apparel & Luxury Goods - 3.4% | |||
Capri Holdings Ltd. (a) | 401,300 | 6,036 | |
Hanesbrands, Inc. (b) | 844,100 | 8,323 | |
PVH Corp. | 302,700 | 13,764 | |
Ralph Lauren Corp. (b) | 145,400 | 10,979 | |
Tapestry, Inc. | 1,087,500 | 14,790 | |
Wolverine World Wide, Inc. | 312,600 | 6,546 | |
60,438 | |||
TOTAL CONSUMER DISCRETIONARY | 223,726 | ||
CONSUMER STAPLES - 3.1% | |||
Beverages - 0.1% | |||
Coca-Cola European Partners PLC | 58,300 | 2,198 | |
Food & Staples Retailing - 0.2% | |||
U.S. Foods Holding Corp. (a) | 220,000 | 4,211 | |
Food Products - 1.3% | |||
Conagra Brands, Inc. | 186,327 | 6,482 | |
Ingredion, Inc. | 135,600 | 11,422 | |
Nomad Foods Ltd. (a) | 237,500 | 5,030 | |
22,934 | |||
Household Products - 1.4% | |||
Church & Dwight Co., Inc. | 57,000 | 4,279 | |
Energizer Holdings, Inc. | 245,600 | 10,777 | |
Reynolds Consumer Products, Inc. | 173,400 | 5,790 | |
Spectrum Brands Holdings, Inc. | 66,007 | 3,123 | |
23,969 | |||
Tobacco - 0.1% | |||
Universal Corp. | 29,600 | 1,304 | |
TOTAL CONSUMER STAPLES | 54,616 | ||
ENERGY - 1.3% | |||
Energy Equipment & Services - 0.1% | |||
Dril-Quip, Inc. (a)(b) | 39,700 | 1,206 | |
Oil, Gas & Consumable Fuels - 1.2% | |||
Cimarex Energy Co. | 142,900 | 3,755 | |
EQT Corp. | 527,300 | 7,034 | |
HollyFrontier Corp. | 73,400 | 2,308 | |
PBF Energy, Inc. Class A | 223,300 | 2,371 | |
PDC Energy, Inc. (a) | 116,200 | 1,415 | |
WPX Energy, Inc. (a) | 956,000 | 5,421 | |
22,304 | |||
TOTAL ENERGY | 23,510 | ||
FINANCIALS - 13.9% | |||
Banks - 4.7% | |||
First Horizon National Corp. (b) | 2,910,800 | 27,216 | |
Huntington Bancshares, Inc. | 1,530,006 | 13,602 | |
Live Oak Bancshares, Inc. (b) | 136,000 | 1,841 | |
PacWest Bancorp | 575,800 | 9,967 | |
Piraeus Bank SA (a) | 1,283,500 | 2,016 | |
Signature Bank | 160,200 | 16,486 | |
Wintrust Financial Corp. | 260,900 | 11,052 | |
82,180 | |||
Capital Markets - 2.7% | |||
AllianceBernstein Holding LP | 594,600 | 14,847 | |
Avanza Bank Holding AB | 488,803 | 7,169 | |
Lazard Ltd. Class A | 310,700 | 8,345 | |
SEI Investments Co. | 134,300 | 7,282 | |
Virtu Financial, Inc. Class A | 437,370 | 10,431 | |
48,074 | |||
Consumer Finance - 3.6% | |||
Ally Financial, Inc. | 201,300 | 3,511 | |
Discover Financial Services | 443,900 | 21,090 | |
First Cash Financial Services, Inc. | 95,366 | 6,654 | |
OneMain Holdings, Inc. | 798,114 | 18,620 | |
SLM Corp. | 1,895,362 | 14,367 | |
64,242 | |||
Diversified Financial Services - 0.2% | |||
ECN Capital Corp. | 933,400 | 3,213 | |
Insurance - 2.1% | |||
Fairfax Financial Holdings Ltd. (sub. vtg.) | 9,900 | 2,750 | |
First American Financial Corp. | 323,100 | 16,313 | |
Old Republic International Corp. | 869,500 | 13,556 | |
Talanx AG | 134,800 | 4,734 | |
37,353 | |||
Thrifts & Mortgage Finance - 0.6% | |||
Essent Group Ltd. | 162,900 | 5,384 | |
MGIC Investment Corp. | 728,700 | 5,983 | |
11,367 | |||
TOTAL FINANCIALS | 246,429 | ||
HEALTH CARE - 12.0% | |||
Biotechnology - 1.4% | |||
Neurocrine Biosciences, Inc. (a) | 106,000 | 13,225 | |
Sarepta Therapeutics, Inc. (a) | 70,000 | 10,659 | |
23,884 | |||
Health Care Equipment & Supplies - 6.1% | |||
Insulet Corp. (a) | 77,000 | 14,520 | |
Masimo Corp. (a) | 111,000 | 26,661 | |
Nanosonics Ltd. (a) | 2,824,853 | 13,613 | |
Nevro Corp. (a) | 88,000 | 11,053 | |
Penumbra, Inc. (a) | 128,000 | 22,070 | |
Quidel Corp. (a) | 67,000 | 11,725 | |
Tandem Diabetes Care, Inc. (a) | 106,000 | 8,814 | |
108,456 | |||
Health Care Providers & Services - 3.3% | |||
Centene Corp. (a) | 240,000 | 15,900 | |
LHC Group, Inc. (a) | 114,000 | 18,526 | |
Molina Healthcare, Inc. (a) | 124,000 | 23,042 | |
57,468 | |||
Life Sciences Tools & Services - 0.6% | |||
Bruker Corp. | 250,600 | 10,846 | |
Pharmaceuticals - 0.6% | |||
Nektar Therapeutics (a)(b) | 494,000 | 10,720 | |
TOTAL HEALTH CARE | 211,374 | ||
INDUSTRIALS - 15.6% | |||
Aerospace & Defense - 0.1% | |||
Textron, Inc. | 57,200 | 1,771 | |
Building Products - 1.4% | |||
Carrier Global Corp. (a) | 175,300 | 3,588 | |
Jeld-Wen Holding, Inc. (a) | 1,513,509 | 20,629 | |
24,217 | |||
Construction & Engineering - 4.0% | |||
AECOM (a) | 1,049,337 | 40,680 | |
Arcadis NV | 593,484 | 10,145 | |
Fluor Corp. | 169,900 | 1,973 | |
Granite Construction, Inc. (b) | 997,280 | 17,552 | |
70,350 | |||
Electrical Equipment - 1.6% | |||
Sensata Technologies, Inc. PLC (a) | 811,519 | 28,931 | |
Machinery - 2.5% | |||
Allison Transmission Holdings, Inc. | 646,663 | 24,392 | |
Colfax Corp. (a)(b) | 662,607 | 18,593 | |
ITT, Inc. | 4,900 | 283 | |
43,268 | |||
Marine - 0.9% | |||
A.P. Moller - Maersk A/S Series B | 16,946 | 16,707 | |
Professional Services - 1.1% | |||
Nielsen Holdings PLC | 1,337,999 | 18,585 | |
Road & Rail - 1.7% | |||
Knight-Swift Transportation Holdings, Inc. Class A (b) | 325,000 | 13,523 | |
Ryder System, Inc. | 505,600 | 17,322 | |
30,845 | |||
Trading Companies & Distributors - 2.3% | |||
HD Supply Holdings, Inc. (a) | 704,119 | 22,328 | |
MRC Global, Inc. (a)(b) | 3,090,911 | 18,298 | |
40,626 | |||
TOTAL INDUSTRIALS | 275,300 | ||
INFORMATION TECHNOLOGY - 16.2% | |||
Electronic Equipment & Components - 4.1% | |||
Avnet, Inc. | 352,300 | 9,597 | |
Belden, Inc. (b) | 61,600 | 2,097 | |
Cognex Corp. | 297,600 | 16,886 | |
Corning, Inc. | 375,700 | 8,562 | |
Jabil, Inc. | 113,500 | 3,396 | |
Trimble, Inc. (a) | 509,600 | 19,936 | |
TTM Technologies, Inc. (a) | 466,200 | 5,394 | |
Vishay Intertechnology, Inc. (b) | 382,900 | 6,226 | |
72,094 | |||
IT Services - 3.7% | |||
Akamai Technologies, Inc. (a) | 29,700 | 3,142 | |
Capgemini SA | 124,500 | 12,728 | |
ExlService Holdings, Inc. (a) | 112,373 | 6,874 | |
Gartner, Inc. (a) | 68,400 | 8,324 | |
GoDaddy, Inc. (a) | 127,000 | 9,811 | |
Liveramp Holdings, Inc. (a) | 183,800 | 9,269 | |
Twilio, Inc. Class A (a) | 18,800 | 3,715 | |
WEX, Inc. (a) | 79,300 | 11,743 | |
65,606 | |||
Semiconductors & Semiconductor Equipment - 1.4% | |||
Cirrus Logic, Inc. (a) | 57,000 | 4,131 | |
Microchip Technology, Inc. | 64,600 | 6,203 | |
ON Semiconductor Corp. (a) | 455,100 | 7,505 | |
Skyworks Solutions, Inc. | 50,200 | 5,951 | |
23,790 | |||
Software - 6.7% | |||
Anaplan, Inc. (a) | 151,800 | 6,971 | |
Blackbaud, Inc. | 196,200 | 11,499 | |
Box, Inc. Class A (a) | 313,200 | 6,258 | |
Ceridian HCM Holding, Inc. (a)(b) | 99,400 | 6,846 | |
Check Point Software Technologies Ltd.(a) | 31,200 | 3,422 | |
Constellation Software, Inc. | 7,700 | 8,753 | |
Elastic NV (a) | 97,100 | 8,343 | |
HubSpot, Inc. (a) | 39,900 | 7,978 | |
LogMeIn, Inc. | 97,600 | 8,286 | |
Micro Focus International PLC | 594,393 | 2,928 | |
Nortonlifelock, Inc. | 270,700 | 6,167 | |
Parametric Technology Corp. (a) | 220,300 | 16,827 | |
Pluralsight, Inc. (a) | 386,100 | 8,042 | |
RealPage, Inc. (a) | 137,500 | 9,325 | |
Tenable Holdings, Inc. (a) | 218,100 | 6,820 | |
118,465 | |||
Technology Hardware, Storage & Peripherals - 0.3% | |||
Western Digital Corp. | 134,900 | 5,986 | |
TOTAL INFORMATION TECHNOLOGY | 285,941 | ||
MATERIALS - 6.2% | |||
Chemicals - 1.9% | |||
Ashland Global Holdings, Inc. | 197,200 | 13,244 | |
Axalta Coating Systems Ltd. (a) | 372,500 | 8,608 | |
Olin Corp. | 459,300 | 5,525 | |
The Chemours Co. LLC | 422,700 | 5,542 | |
32,919 | |||
Construction Materials - 0.5% | |||
Eagle Materials, Inc. | 142,500 | 9,513 | |
Containers & Packaging - 1.8% | |||
Aptargroup, Inc. | 172,100 | 19,170 | |
Sonoco Products Co. | 264,800 | 13,719 | |
32,889 | |||
Metals & Mining - 1.6% | |||
Steel Dynamics, Inc. | 530,500 | 14,090 | |
Wheaton Precious Metals Corp. | 328,000 | 14,104 | |
28,194 | |||
Paper & Forest Products - 0.4% | |||
Louisiana-Pacific Corp. | 284,000 | 6,705 | |
TOTAL MATERIALS | 110,220 | ||
REAL ESTATE - 8.8% | |||
Equity Real Estate Investment Trusts (REITs) - 8.2% | |||
CareTrust (REIT), Inc. | 614,657 | 11,451 | |
CoreSite Realty Corp. | 116,100 | 14,492 | |
CubeSmart | 201,072 | 5,723 | |
Douglas Emmett, Inc. | 416,300 | 12,223 | |
Duke Realty Corp. | 415,974 | 14,343 | |
Four Corners Property Trust, Inc. | 692,472 | 14,971 | |
Healthcare Realty Trust, Inc. | 446,154 | 13,697 | |
Highwoods Properties, Inc. (SBI) | 366,600 | 14,030 | |
Invitation Homes, Inc. | 275,400 | 7,243 | |
Mid-America Apartment Communities, Inc. | 38,500 | 4,480 | |
Outfront Media, Inc. | 443,700 | 6,230 | |
Potlatch Corp. | 223,628 | 7,601 | |
RLJ Lodging Trust | 543,372 | 5,602 | |
UDR, Inc. | 213,063 | 7,879 | |
VICI Properties, Inc. | 292,800 | 5,745 | |
145,710 | |||
Real Estate Management & Development - 0.6% | |||
CBRE Group, Inc. (a) | 4,000 | 176 | |
Cushman & Wakefield PLC (a) | 603,711 | 6,188 | |
The RMR Group, Inc. | 138,056 | 3,722 | |
10,086 | |||
TOTAL REAL ESTATE | 155,796 | ||
UTILITIES - 4.8% | |||
Electric Utilities - 1.3% | |||
Allete, Inc. | 11,696 | 687 | |
Entergy Corp. | 56,400 | 5,743 | |
Evergy, Inc. | 28,300 | 1,746 | |
IDACORP, Inc. | 58,492 | 5,453 | |
OGE Energy Corp. | 54,900 | 1,719 | |
PNM Resources, Inc. | 192,600 | 7,862 | |
23,210 | |||
Gas Utilities - 1.8% | |||
Atmos Energy Corp. | 64,600 | 6,640 | |
National Fuel Gas Co. (b) | 153,400 | 6,438 | |
New Jersey Resources Corp. | 52,900 | 1,858 | |
Southwest Gas Holdings, Inc. | 124,400 | 9,448 | |
Spire, Inc. | 22,900 | 1,670 | |
UGI Corp. | 153,100 | 4,875 | |
30,929 | |||
Independent Power and Renewable Electricity Producers - 0.3% | |||
Clearway Energy, Inc. Class C | 233,100 | 5,107 | |
Multi-Utilities - 0.9% | |||
Black Hills Corp. | 116,700 | 7,202 | |
MDU Resources Group, Inc. | 334,939 | 7,288 | |
NiSource, Inc. | 96,300 | 2,295 | |
16,785 | |||
Water Utilities - 0.5% | |||
Essential Utilities, Inc. | 183,715 | 8,039 | |
TOTAL UTILITIES | 84,070 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,738,917) | 1,703,092 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
FINANCIALS - 0.1% | |||
Banks - 0.1% | |||
Banco BMG SA (c) | |||
(Cost $6,408) | 2,783,000 | 2,425 | |
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.1% | |||
U.S. Treasury Bills, yield at date of purchase 0.12% to 0.38% 6/11/20 to 8/13/20 (d) | |||
(Cost $1,050) | 1,050 | 1,050 | |
Shares | Value (000s) | ||
Money Market Funds - 6.3% | |||
Fidelity Cash Central Fund 0.11% (e) | 50,400,151 | $50,410 | |
Fidelity Securities Lending Cash Central Fund 0.10% (e)(f) | 61,446,548 | 61,453 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $111,860) | 111,863 | ||
TOTAL INVESTMENT IN SECURITIES - 102.9% | |||
(Cost $1,858,235) | 1,818,430 | ||
NET OTHER ASSETS (LIABILITIES) - (2.9)% | (50,610) | ||
NET ASSETS - 100% | $1,767,820 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount (000s) | Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini S&P MidCap 400 Index Contracts (United States) | 94 | June 2020 | $16,566 | $772 | $772 |
The notional amount of futures purchased as a percentage of Net Assets is 0.9%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,425,000 or 0.1% of net assets.
(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $736,000.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $250 |
Fidelity Securities Lending Cash Central Fund | 57 |
Total | $307 |
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 May 31, 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 | $32,110 | $32,110 | $-- | $-- |
Consumer Discretionary | 223,726 | 223,726 | -- | -- |
Consumer Staples | 54,616 | 54,616 | -- | -- |
Energy | 23,510 | 23,510 | -- | -- |
Financials | 248,854 | 248,854 | -- | -- |
Health Care | 211,374 | 211,374 | -- | -- |
Industrials | 275,300 | 258,593 | 16,707 | -- |
Information Technology | 285,941 | 283,013 | 2,928 | -- |
Materials | 110,220 | 110,220 | -- | -- |
Real Estate | 155,796 | 155,796 | -- | -- |
Utilities | 84,070 | 84,070 | -- | -- |
U.S. Government and Government Agency Obligations | 1,050 | -- | 1,050 | -- |
Money Market Funds | 111,863 | 111,863 | -- | -- |
Total Investments in Securities: | $1,818,430 | $1,797,745 | $20,685 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $772 | $772 | $-- | $-- |
Total Assets | $772 | $772 | $-- | $-- |
Total Derivative Instruments: | $772 | $772 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 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 | |
(Amounts in thousands) | ||
Equity Risk | ||
Futures Contracts(a) | $772 | $0 |
Total Equity Risk | 772 | 0 |
Total Value of Derivatives | $772 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.5% |
United Kingdom | 3.4% |
Canada | 1.6% |
Bermuda | 1.3% |
Netherlands | 1.1% |
Others (Individually Less Than 1%) | 4.1% |
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) | May 31, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $58,932) — See accompanying schedule: Unaffiliated issuers (cost $1,746,375) | $1,706,567 | |
Fidelity Central Funds (cost $111,860) | 111,863 | |
Total Investment in Securities (cost $1,858,235) | $1,818,430 | |
Receivable for investments sold | 34,108 | |
Receivable for fund shares sold | 662 | |
Dividends receivable | 2,763 | |
Distributions receivable from Fidelity Central Funds | 14 | |
Other receivables | 9 | |
Total assets | 1,855,986 | |
Liabilities | ||
Payable to custodian bank | $606 | |
Payable for investments purchased | 23,496 | |
Payable for fund shares redeemed | 1,106 | |
Accrued management fee | 838 | |
Distribution and service plan fees payable | 290 | |
Payable for daily variation margin on futures contracts | 25 | |
Other affiliated payables | 272 | |
Other payables and accrued expenses | 87 | |
Collateral on securities loaned | 61,446 | |
Total liabilities | 88,166 | |
Net Assets | $1,767,820 | |
Net Assets consist of: | ||
Paid in capital | $1,837,023 | |
Total accumulated earnings (loss) | (69,203) | |
Net Assets | $1,767,820 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($506,288 ÷ 17,099.69 shares)(a) | $29.61 | |
Maximum offering price per share (100/94.25 of $29.61) | $31.42 | |
Class M: | ||
Net Asset Value and redemption price per share ($429,751 ÷ 14,401.09 shares)(a) | $29.84 | |
Maximum offering price per share (100/96.50 of $29.84) | $30.92 | |
Class C: | ||
Net Asset Value and offering price per share ($26,654 ÷ 1,007.55 shares)(a) | $26.45 | |
Fidelity Stock Selector Mid Cap Fund: | ||
Net Asset Value, offering price and redemption price per share ($288,119 ÷ 9,215.09 shares) | $31.27 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($259,208 ÷ 8,267.52 shares) | $31.35 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($257,800 ÷ 8,235.76 shares) | $31.30 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $17,841 | |
Special dividends | 5,174 | |
Interest | 4 | |
Income from Fidelity Central Funds (including $57 from security lending) | 307 | |
Total income | 23,326 | |
Expenses | ||
Management fee | ||
Basic fee | $4,999 | |
Performance adjustment | 1,395 | |
Transfer agent fees | 1,567 | |
Distribution and service plan fees | 2,003 | |
Accounting fees | 287 | |
Custodian fees and expenses | 23 | |
Independent trustees' fees and expenses | 6 | |
Registration fees | 78 | |
Audit | 37 | |
Legal | 10 | |
Miscellaneous | 54 | |
Total expenses before reductions | 10,459 | |
Expense reductions | (99) | |
Total expenses after reductions | 10,360 | |
Net investment income (loss) | 12,966 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (30,244) | |
Foreign currency transactions | (8) | |
Futures contracts | (3,543) | |
Total net realized gain (loss) | (33,795) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (288,157) | |
Fidelity Central Funds | (1) | |
Assets and liabilities in foreign currencies | 1 | |
Futures contracts | 621 | |
Total change in net unrealized appreciation (depreciation) | (287,536) | |
Net gain (loss) | (321,331) | |
Net increase (decrease) in net assets resulting from operations | $(308,365) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $12,966 | $15,414 |
Net realized gain (loss) | (33,795) | 72,632 |
Change in net unrealized appreciation (depreciation) | (287,536) | 147,761 |
Net increase (decrease) in net assets resulting from operations | (308,365) | 235,807 |
Distributions to shareholders | (85,310) | (314,397) |
Share transactions - net increase (decrease) | 40,666 | 218,415 |
Total increase (decrease) in net assets | (353,009) | 139,825 |
Net Assets | ||
Beginning of period | 2,120,829 | 1,981,004 |
End of period | $1,767,820 | $2,120,829 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Stock Selector Mid Cap Fund Class A
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $36.07 | $39.28 | $39.74 | $33.13 | $32.01 | $31.80 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .21B | .25 | .26 | .13 | .20 | .08 |
Net realized and unrealized gain (loss) | (5.19) | 2.80C | 1.04 | 6.68 | 1.49 | .13 |
Total from investment operations | (4.98) | 3.05 | 1.30 | 6.81 | 1.69 | .21 |
Distributions from net investment income | (.21) | (.25) | (.11) | (.19) | (.04) | – |
Distributions from net realized gain | (1.27) | (6.01) | (1.65) | (.01) | (.53) | – |
Total distributions | (1.48) | (6.26) | (1.76) | (.20) | (.57) | – |
Net asset value, end of period | $29.61 | $36.07 | $39.28 | $39.74 | $33.13 | $32.01 |
Total ReturnD,E,F | (14.49)% | 12.13%C | 3.36% | 20.64% | 5.49% | .66% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.17%I | 1.14% | .93% | .87% | .88% | .98% |
Expenses net of fee waivers, if any | 1.17%I | 1.14% | .92% | .87% | .88% | .98% |
Expenses net of all reductions | 1.16%I | 1.14% | .91% | .86% | .88% | .97% |
Net investment income (loss) | 1.33%B,I | .75% | .64% | .36% | .64% | .24% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $506 | $623 | $532 | $564 | $546 | $593 |
Portfolio turnover rateJ | 89%I | 57% | 81% | 84% | 98% | 109% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been .78%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.06 per share. Excluding these litigation proceeds, the total return would have been 11.95%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Stock Selector Mid Cap Fund Class M
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $36.30 | $39.43 | $39.89 | $33.25 | $32.16 | $32.02 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .17B | .17 | .16 | .04 | .13 | – |
Net realized and unrealized gain (loss) | (5.24) | 2.85C | 1.04 | 6.71 | 1.49 | .14 |
Total from investment operations | (5.07) | 3.02 | 1.20 | 6.75 | 1.62 | .14 |
Distributions from net investment income | (.12) | (.14) | (.01) | (.11) | – | – |
Distributions from net realized gain | (1.27) | (6.01) | (1.65) | (.01) | (.53) | – |
Total distributions | (1.39) | (6.15) | (1.66) | (.11)D | (.53) | – |
Net asset value, end of period | $29.84 | $36.30 | $39.43 | $39.89 | $33.25 | $32.16 |
Total ReturnE,F,G | (14.61)% | 11.88%C | 3.10% | 20.37% | 5.22% | .44% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.41%J | 1.38% | 1.17% | 1.11% | 1.12% | 1.22% |
Expenses net of fee waivers, if any | 1.41%J | 1.38% | 1.17% | 1.11% | 1.12% | 1.21% |
Expenses net of all reductions | 1.40%J | 1.38% | 1.15% | 1.10% | 1.11% | 1.21% |
Net investment income (loss) | 1.09%B,J | .51% | .39% | .11% | .41% | .01% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $430 | $544 | $536 | $606 | $591 | $681 |
Portfolio turnover rateK | 89%J | 57% | 81% | 84% | 98% | 109% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been .54%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.06 per share. Excluding these litigation proceeds, the total return would have been 11.70%.
D Total distributions of $.11 per share is comprised of distributions from net investment income of $.106 and distributions from net realized gain of $.006 per share.
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 Stock Selector Mid Cap Fund Class C
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.15 | $35.67 | $36.25 | $30.28 | $29.48 | $29.51 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .08B | (.01) | (.05) | (.13) | (.03) | (.15) |
Net realized and unrealized gain (loss) | (4.67) | 2.46C | .96 | 6.10 | 1.36 | .12 |
Total from investment operations | (4.59) | 2.45 | .91 | 5.97 | 1.33 | (.03) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (1.11) | (5.97) | (1.49) | – | (.53) | – |
Total distributions | (1.11) | (5.97) | (1.49) | – | (.53) | – |
Net asset value, end of period | $26.45 | $32.15 | $35.67 | $36.25 | $30.28 | $29.48 |
Total ReturnD,E,F | (14.85)% | 11.27%C | 2.59% | 19.72% | 4.71% | (.10)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.96%I | 1.93% | 1.69% | 1.63% | 1.63% | 1.74% |
Expenses net of fee waivers, if any | 1.96%I | 1.93% | 1.69% | 1.63% | 1.63% | 1.73% |
Expenses net of all reductions | 1.95%I | 1.93% | 1.67% | 1.62% | 1.63% | 1.73% |
Net investment income (loss) | .54%B,I | (.04)% | (.12)% | (.40)% | (.11)% | (.51)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $27 | $35 | $114 | $142 | $140 | $155 |
Portfolio turnover rateJ | 89%I | 57% | 81% | 84% | 98% | 109% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been (.01) %.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 11.09%.
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 Stock Selector Mid Cap Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $38.00 | $41.00 | $41.43 | $34.53 | $33.34 | $33.14 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .26B | .34 | .33 | .20 | .28 | .16 |
Net realized and unrealized gain (loss) | (5.48) | 2.99C | 1.09 | 6.96 | 1.55 | .14 |
Total from investment operations | (5.22) | 3.33 | 1.42 | 7.16 | 1.83 | .30 |
Distributions from net investment income | (.24) | (.32) | (.20) | (.26) | (.12) | (.10) |
Distributions from net realized gain | (1.27) | (6.01) | (1.65) | (.01) | (.53) | – |
Total distributions | (1.51) | (6.33) | (1.85) | (.26)D | (.64)E | (.10) |
Net asset value, end of period | $31.27 | $38.00 | $41.00 | $41.43 | $34.53 | $33.34 |
Total ReturnF,G | (14.39)% | 12.38%C | 3.53% | 20.87% | 5.73% | .90% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .92%J | .94% | .77% | .70% | .64% | .75% |
Expenses net of fee waivers, if any | .92%J | .94% | .76% | .70% | .64% | .74% |
Expenses net of all reductions | .91%J | .94% | .75% | .69% | .63% | .74% |
Net investment income (loss) | 1.58%B,J | .95% | .80% | .53% | .89% | .48% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $288 | $362 | $502 | $545 | $222 | $486 |
Portfolio turnover rateK | 89%J | 57% | 81% | 84% | 98% | 109% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been 1.02%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.06 per share. Excluding these litigation proceeds, the total return would have been 12.20%.
D Total distributions of $.26 per share is comprised of distributions from net investment income of $.255 and distributions from net realized gain of $.006 per share.
E Total distributions of $.64 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.529 per share.
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 Stock Selector Mid Cap Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $38.15 | $41.11 | $41.51 | $34.60 | $33.39 | $33.22 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .26B | .35 | .36 | .23 | .28 | .13 |
Net realized and unrealized gain (loss) | (5.50) | 3.01C | 1.10 | 6.96 | 1.56 | .14 |
Total from investment operations | (5.24) | 3.36 | 1.46 | 7.19 | 1.84 | .27 |
Distributions from net investment income | (.29) | (.31) | (.21) | (.27) | (.11) | (.10) |
Distributions from net realized gain | (1.27) | (6.01) | (1.65) | (.01) | (.53) | – |
Total distributions | (1.56) | (6.32) | (1.86) | (.28) | (.63)D | (.10) |
Net asset value, end of period | $31.35 | $38.15 | $41.11 | $41.51 | $34.60 | $33.39 |
Total ReturnE,F | (14.42)% | 12.41%C | 3.62% | 20.92% | 5.75% | .80% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .93%I | .91% | .69% | .63% | .64% | .83% |
Expenses net of fee waivers, if any | .93%I | .91% | .69% | .63% | .64% | .83% |
Expenses net of all reductions | .92%I | .91% | .67% | .62% | .64% | .82% |
Net investment income (loss) | 1.57%B,I | .98% | .87% | .60% | .88% | .39% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $259 | $312 | $279 | $683 | $523 | $479 |
Portfolio turnover rateJ | 89%I | 57% | 81% | 84% | 98% | 109% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been 1.02%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.06 per share. Excluding these litigation proceeds, the total return would have been 12.23%.
D Total distributions of $.63 per share is comprised of distributions from net investment income of $.105 and distributions from net realized gain of $.529 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Stock Selector Mid Cap Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||
2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $38.12 | $41.15 | $41.57 | $35.79 |
Income from Investment Operations | ||||
Net investment income (loss)B | .28C | .41 | .43 | .23 |
Net realized and unrealized gain (loss) | (5.48) | 2.99D | 1.08 | 5.55 |
Total from investment operations | (5.20) | 3.40 | 1.51 | 5.78 |
Distributions from net investment income | (.35) | (.42) | (.28) | – |
Distributions from net realized gain | (1.27) | (6.01) | (1.65) | – |
Total distributions | (1.62) | (6.43) | (1.93) | – |
Net asset value, end of period | $31.30 | $38.12 | $41.15 | $41.57 |
Total ReturnE,F | (14.34)% | 12.59%D | 3.75% | 16.15% |
Ratios to Average Net AssetsG,H | ||||
Expenses before reductions | .78%I | .75% | .53% | .48%I |
Expenses net of fee waivers, if any | .78%I | .75% | .53% | .47%I |
Expenses net of all reductions | .77%I | .75% | .52% | .46%I |
Net investment income (loss) | 1.72%C,I | 1.14% | 1.03% | .69%I |
Supplemental Data | ||||
Net assets, end of period (in millions) | $258 | $245 | $18 | $9 |
Portfolio turnover rateJ | 89%I | 57% | 81% | 84% |
A For the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend the ratio of net investment income (loss) to average net assets would have been 1.17%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.06 per share. Excluding these litigation proceeds, the total return would have been 12.41%.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Stock Selector Mid Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Fidelity Stock Selector Mid Cap Fund, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $219,185 |
Gross unrealized depreciation | (274,297) |
Net unrealized appreciation (depreciation) | $(55,112) |
Tax cost | $1,874,314 |
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. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Stock Selector Mid Cap Fund | 822,452 | 830,752 |
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 S&P MidCap 400 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .68% 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% | $674 | $13 |
Class M | .25% | .25% | 1,179 | 18 |
Class C | .75% | .25% | 150 | 15 |
$2,003 | $46 |
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 | $31 |
Class M | 7 |
Class C(a) | 2 |
$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. 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 | $501 | .19 |
Class M | 411 | .17 |
Class C | 33 | .22 |
Fidelity Stock Selector Mid Cap Fund | 300 | .19 |
Class I | 271 | .20 |
Class Z | 51 | .04 |
$1,567 |
(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 Stock Selector Mid Cap 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 Stock Selector Mid Cap Fund | $26 |
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.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $2.
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 Stock Selector Mid Cap Fund | $3 |
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. Total fees paid by the Fund to NFS, as lending agent, amounted to $6. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $84 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 $4.
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.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Distributions to shareholders | ||
Class A | $25,261 | $84,647 |
Class M | 20,788 | 83,088 |
Class C | 1,203 | 18,993 |
Fidelity Stock Selector Mid Cap Fund | 14,538 | 82,532 |
Class I | 12,973 | 42,535 |
Class Z | 10,547 | 2,602 |
Total | $85,310 | $314,397 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Class A | ||||
Shares sold | 1,069 | 3,779 | $31,943 | $125,147 |
Reinvestment of distributions | 663 | 2,756 | 23,541 | 78,073 |
Shares redeemed | (1,905) | (2,815) | (58,263) | (93,979) |
Net increase (decrease) | (173) | 3,720 | $(2,779) | $109,241 |
Class M | ||||
Shares sold | 762 | 1,917 | $24,334 | $63,921 |
Reinvestment of distributions | 565 | 2,831 | 20,270 | 80,879 |
Shares redeemed | (1,904) | (3,357) | (58,098) | (113,233) |
Net increase (decrease) | (577) | 1,391 | $(13,494) | $31,567 |
Class C | ||||
Shares sold | 106 | 276 | $2,918 | $8,212 |
Reinvestment of distributions | 37 | 737 | 1,171 | 18,739 |
Shares redeemed | (231) | (3,110) | (6,102) | (92,128) |
Net increase (decrease) | (88) | (2,097) | $(2,013) | $(65,177) |
Fidelity Stock Selector Mid Cap Fund | ||||
Shares sold | 1,035 | 4,085 | $34,727 | $146,301 |
Reinvestment of distributions | 376 | 2,719 | 14,097 | 81,003 |
Shares redeemed | (1,712) | (9,537) | (52,776) | (335,660) |
Net increase (decrease) | (301) | (2,733) | $(3,952) | $(108,356) |
Class I | ||||
Shares sold | 1,080 | 2,002 | $34,527 | $69,438 |
Reinvestment of distributions | 334 | 1,375 | 12,548 | 41,120 |
Shares redeemed | (1,325) | (1,982) | (43,022) | (69,771) |
Net increase (decrease) | 89 | 1,395 | $4,053 | $40,787 |
Class Z | ||||
Shares sold | 2,344 | 6,216 | $73,463 | $219,042 |
Reinvestment of distributions | 277 | 76 | 10,383 | 2,264 |
Shares redeemed | (818) | (297) | (24,995) | (10,953) |
Net increase (decrease) | 1,803 | 5,995 | $58,851 | $210,353 |
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 (December 1, 2019 to May 31, 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 December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Class A | 1.17% | |||
Actual | $1,000.00 | $855.10 | $5.43 | |
Hypothetical-C | $1,000.00 | $1,019.15 | $5.91 | |
Class M | 1.41% | |||
Actual | $1,000.00 | $853.90 | $6.53 | |
Hypothetical-C | $1,000.00 | $1,017.95 | $7.11 | |
Class C | 1.96% | |||
Actual | $1,000.00 | $851.50 | $9.07 | |
Hypothetical-C | $1,000.00 | $1,015.20 | $9.87 | |
Fidelity Stock Selector Mid Cap Fund | .92% | |||
Actual | $1,000.00 | $856.10 | $4.27 | |
Hypothetical-C | $1,000.00 | $1,020.40 | $4.65 | |
Class I | .93% | |||
Actual | $1,000.00 | $855.80 | $4.31 | |
Hypothetical-C | $1,000.00 | $1,020.35 | $4.70 | |
Class Z | .78% | |||
Actual | $1,000.00 | $856.60 | $3.62 | |
Hypothetical-C | $1,000.00 | $1,021.10 | $3.94 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Stock Selector Mid Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 April 2017. 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 Stock Selector Mid Cap Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613076187.jpg)
Fidelity Advisor Stock Selector Mid Cap Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613076519.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.
MC-SANN-0720
1.704677.122
Fidelity Advisor® Large Cap Fund
Semi-Annual Report
May 31, 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.
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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
Microsoft Corp. | 6.9 |
General Electric Co. | 4.6 |
Exxon Mobil Corp. | 4.0 |
Comcast Corp. Class A | 3.9 |
Altria Group, Inc. | 3.6 |
Apple, Inc. | 3.2 |
Bank of America Corp. | 3.0 |
Wells Fargo & Co. | 2.7 |
Bristol-Myers Squibb Co. | 2.7 |
Qualcomm, Inc. | 2.2 |
36.8 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Health Care | 21.2 |
Information Technology | 19.4 |
Financials | 15.9 |
Industrials | 12.2 |
Communication Services | 7.9 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020 * | ||
Stocks | 99.4% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.4% |
* Foreign investments - 11.3%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 7.9% | |||
Diversified Telecommunication Services - 0.9% | |||
Verizon Communications, Inc. | 128,176 | $7,354,739 | |
Entertainment - 2.0% | |||
Activision Blizzard, Inc. | 52,511 | 3,779,742 | |
Electronic Arts, Inc. (a) | 26,303 | 3,232,113 | |
The Walt Disney Co. | 34,575 | 4,055,648 | |
Vivendi SA | 235,634 | 5,387,852 | |
16,455,355 | |||
Interactive Media & Services - 0.7% | |||
Alphabet, Inc.: | |||
Class A (a) | 1,234 | 1,768,964 | |
Class C (a) | 1,162 | 1,660,405 | |
ANGI Homeservices, Inc. Class A (a) | 28,300 | 307,055 | |
Match Group, Inc. (a)(b) | 24,800 | 2,208,192 | |
5,944,616 | |||
Media - 4.3% | |||
Comcast Corp. Class A | 800,223 | 31,688,831 | |
Discovery Communications, Inc. Class A (a) | 44,537 | 968,680 | |
Interpublic Group of Companies, Inc. | 151,220 | 2,587,374 | |
35,244,885 | |||
TOTAL COMMUNICATION SERVICES | 64,999,595 | ||
CONSUMER DISCRETIONARY - 5.0% | |||
Auto Components - 0.5% | |||
BorgWarner, Inc. | 124,616 | 4,006,404 | |
Automobiles - 0.6% | |||
General Motors Co. | 182,200 | 4,715,336 | |
Distributors - 0.2% | |||
LKQ Corp. (a) | 56,602 | 1,554,291 | |
Hotels, Restaurants & Leisure - 0.2% | |||
Starbucks Corp. | 25,100 | 1,957,549 | |
Household Durables - 1.1% | |||
Mohawk Industries, Inc. (a) | 45,906 | 4,278,439 | |
Whirlpool Corp. | 38,434 | 4,682,030 | |
8,960,469 | |||
Internet & Direct Marketing Retail - 0.9% | |||
Expedia, Inc. | 8,900 | 707,372 | |
Ocado Group PLC (a) | 46,600 | 1,260,942 | |
The Booking Holdings, Inc. (a) | 3,359 | 5,506,812 | |
7,475,126 | |||
Specialty Retail - 1.2% | |||
Lowe's Companies, Inc. | 76,530 | 9,975,686 | |
Textiles, Apparel & Luxury Goods - 0.3% | |||
NIKE, Inc. Class B | 24,600 | 2,425,068 | |
Tapestry, Inc. | 19,446 | 264,466 | |
2,689,534 | |||
TOTAL CONSUMER DISCRETIONARY | 41,334,395 | ||
CONSUMER STAPLES - 7.9% | |||
Beverages - 1.3% | |||
Anheuser-Busch InBev SA NV ADR (b) | 18,400 | 862,592 | |
Diageo PLC sponsored ADR | 15,200 | 2,137,272 | |
The Coca-Cola Co. | 165,581 | 7,729,321 | |
10,729,185 | |||
Food & Staples Retailing - 1.5% | |||
Performance Food Group Co. (a) | 37,000 | 986,050 | |
Sysco Corp. | 83,000 | 4,578,280 | |
Walmart, Inc. | 50,995 | 6,326,440 | |
11,890,770 | |||
Household Products - 0.6% | |||
Colgate-Palmolive Co. | 3,100 | 224,223 | |
Energizer Holdings, Inc. | 2,100 | 92,148 | |
Procter & Gamble Co. | 27,451 | 3,182,120 | |
Spectrum Brands Holdings, Inc. | 31,167 | 1,474,822 | |
4,973,313 | |||
Personal Products - 0.1% | |||
Unilever NV | 19,800 | 1,023,223 | |
Tobacco - 4.4% | |||
Altria Group, Inc. | 743,380 | 29,028,989 | |
British American Tobacco PLC sponsored ADR | 170,847 | 6,847,548 | |
35,876,537 | |||
TOTAL CONSUMER STAPLES | 64,493,028 | ||
ENERGY - 7.5% | |||
Energy Equipment & Services - 0.1% | |||
Subsea 7 SA | 71,200 | 408,709 | |
Oil, Gas & Consumable Fuels - 7.4% | |||
Cenovus Energy, Inc. (Canada) | 1,653,062 | 7,203,669 | |
Equinor ASA sponsored ADR | 577,375 | 8,423,901 | |
Exxon Mobil Corp. | 710,368 | 32,300,433 | |
Hess Corp. | 227,435 | 10,796,339 | |
Kosmos Energy Ltd. | 621,084 | 1,130,373 | |
Total SA sponsored ADR | 28,900 | 1,086,062 | |
60,940,777 | |||
TOTAL ENERGY | 61,349,486 | ||
FINANCIALS - 15.9% | |||
Banks - 10.1% | |||
Bank of America Corp. | 1,031,714 | 24,884,942 | |
JPMorgan Chase & Co. | 126,018 | 12,262,812 | |
M&T Bank Corp. | 11,828 | 1,249,746 | |
PNC Financial Services Group, Inc. | 78,541 | 8,956,816 | |
Truist Financial Corp. | 213,627 | 7,857,201 | |
U.S. Bancorp | 150,890 | 5,365,648 | |
Wells Fargo & Co. | 844,503 | 22,353,994 | |
82,931,159 | |||
Capital Markets - 3.5% | |||
Cboe Global Markets, Inc. | 4,001 | 425,946 | |
KKR & Co. LP | 128,891 | 3,576,725 | |
Morgan Stanley | 83,925 | 3,709,485 | |
Northern Trust Corp. | 126,591 | 10,001,955 | |
Raymond James Financial, Inc. | 19,462 | 1,348,327 | |
State Street Corp. | 164,819 | 10,047,366 | |
29,109,804 | |||
Consumer Finance - 0.4% | |||
Discover Financial Services | 68,100 | 3,235,431 | |
Encore Capital Group, Inc. (a) | 400 | 12,708 | |
3,248,139 | |||
Diversified Financial Services - 0.6% | |||
KKR Renaissance Co-Invest LP unit (a)(c) | 14,257 | 4,870,215 | |
Insurance - 0.3% | |||
Chubb Ltd. | 16,395 | 1,999,206 | |
The Travelers Companies, Inc. | 6,700 | 716,766 | |
2,715,972 | |||
Thrifts & Mortgage Finance - 1.0% | |||
MGIC Investment Corp. | 152,476 | 1,251,828 | |
Radian Group, Inc. | 412,031 | 6,543,052 | |
7,794,880 | |||
TOTAL FINANCIALS | 130,670,169 | ||
HEALTH CARE - 21.2% | |||
Biotechnology - 2.7% | |||
AbbVie, Inc. | 24,326 | 2,254,290 | |
ADC Therapeutics SA (a) | 9,319 | 344,337 | |
Alexion Pharmaceuticals, Inc. (a) | 62,656 | 7,512,454 | |
Alnylam Pharmaceuticals, Inc. (a) | 12,619 | 1,706,972 | |
Amgen, Inc. | 8,652 | 1,987,364 | |
Crinetics Pharmaceuticals, Inc. (a) | 19,500 | 318,630 | |
Gritstone Oncology, Inc. (a) | 50,240 | 324,550 | |
Heron Therapeutics, Inc. (a) | 12,316 | 224,398 | |
Insmed, Inc. (a) | 85,786 | 2,083,742 | |
Intercept Pharmaceuticals, Inc. (a)(b) | 66,750 | 4,823,355 | |
United Therapeutics Corp. (a) | 3,400 | 401,030 | |
21,981,122 | |||
Health Care Equipment & Supplies - 1.3% | |||
Becton, Dickinson & Co. | 12,897 | 3,184,656 | |
Boston Scientific Corp. (a) | 186,226 | 7,074,726 | |
Intuitive Surgical, Inc. (a) | 1,200 | 696,036 | |
10,955,418 | |||
Health Care Providers & Services - 8.3% | |||
AmerisourceBergen Corp. | 42,879 | 4,088,084 | |
Cardinal Health, Inc. | 110,582 | 6,047,730 | |
Centene Corp. (a) | 18,800 | 1,245,500 | |
Cigna Corp. | 70,903 | 13,990,580 | |
Covetrus, Inc. (a)(b) | 36,821 | 562,625 | |
CVS Health Corp. | 238,698 | 15,651,428 | |
McKesson Corp. | 73,306 | 11,631,463 | |
UnitedHealth Group, Inc. | 47,599 | 14,510,555 | |
67,727,965 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B (a) | 114,062 | 89,847 | |
Pharmaceuticals - 8.9% | |||
Bayer AG | 206,966 | 14,148,112 | |
Bristol-Myers Squibb Co. | 367,017 | 21,918,255 | |
Elanco Animal Health, Inc. (a) | 27,000 | 578,070 | |
GlaxoSmithKline PLC sponsored ADR | 351,438 | 14,732,281 | |
Johnson & Johnson | 120,384 | 17,907,120 | |
Sanofi SA sponsored ADR | 59,400 | 2,917,134 | |
TherapeuticsMD, Inc. (a)(b) | 573,652 | 648,227 | |
72,849,199 | |||
TOTAL HEALTH CARE | 173,603,551 | ||
INDUSTRIALS - 12.2% | |||
Aerospace & Defense - 0.9% | |||
Airbus Group NV | 10,300 | 658,242 | |
General Dynamics Corp. | 15,129 | 2,221,391 | |
Huntington Ingalls Industries, Inc. | 10,119 | 2,022,687 | |
Raytheon Technologies Corp. | 11,992 | 773,724 | |
Safran SA | 6,800 | 655,240 | |
The Boeing Co. | 5,367 | 782,777 | |
7,114,061 | |||
Air Freight & Logistics - 2.4% | |||
FedEx Corp. | 36,092 | 4,712,172 | |
United Parcel Service, Inc. Class B | 140,563 | 14,015,537 | |
XPO Logistics, Inc. (a) | 11,299 | 890,474 | |
19,618,183 | |||
Airlines - 0.1% | |||
Ryanair Holdings PLC sponsored ADR (a) | 8,300 | 595,691 | |
Building Products - 0.0% | |||
Johnson Controls International PLC | 14,200 | 446,022 | |
Commercial Services & Supplies - 0.1% | |||
IAA Spinco, Inc. (a) | 12,800 | 524,800 | |
Electrical Equipment - 1.0% | |||
Acuity Brands, Inc. | 19,556 | 1,684,749 | |
Hubbell, Inc. Class B | 14,285 | 1,748,770 | |
Vertiv Holdings Co. (a) | 28,700 | 365,351 | |
Vertiv Holdings LLC (c) | 350,000 | 4,455,500 | |
8,254,370 | |||
Industrial Conglomerates - 4.9% | |||
3M Co. | 14,659 | 2,293,254 | |
General Electric Co. | 5,800,508 | 38,109,338 | |
40,402,592 | |||
Machinery - 1.0% | |||
Cummins, Inc. | 7,000 | 1,187,200 | |
Flowserve Corp. | 56,419 | 1,472,536 | |
Fortive Corp. | 21,000 | 1,280,580 | |
Otis Worldwide Corp. | 21,096 | 1,110,704 | |
Stanley Black & Decker, Inc. | 9,900 | 1,241,955 | |
Westinghouse Air Brake Co. | 32,545 | 1,987,523 | |
8,280,498 | |||
Professional Services - 0.3% | |||
Acacia Research Corp. (a) | 36,900 | 95,571 | |
RELX PLC (London Stock Exchange) | 95,348 | 2,206,136 | |
2,301,707 | |||
Road & Rail - 1.5% | |||
J.B. Hunt Transport Services, Inc. | 24,615 | 2,945,677 | |
Knight-Swift Transportation Holdings, Inc. Class A (b) | 165,158 | 6,872,224 | |
Lyft, Inc. (a) | 37,716 | 1,179,002 | |
Ryder System, Inc. | 41,600 | 1,425,216 | |
12,422,119 | |||
Trading Companies & Distributors - 0.0% | |||
Beijer Ref AB (B Shares) | 5,900 | 174,698 | |
TOTAL INDUSTRIALS | 100,134,741 | ||
INFORMATION TECHNOLOGY - 19.4% | |||
Communications Equipment - 0.5% | |||
Cisco Systems, Inc. | 75,044 | 3,588,604 | |
IT Services - 3.2% | |||
Gartner, Inc. (a) | 9,900 | 1,204,830 | |
Genpact Ltd. | 43,200 | 1,553,040 | |
IBM Corp. | 11,600 | 1,448,840 | |
MasterCard, Inc. Class A | 9,215 | 2,772,701 | |
Twilio, Inc. Class A (a) | 4,300 | 849,680 | |
Unisys Corp. (a) | 150,162 | 1,705,840 | |
Visa, Inc. Class A | 85,927 | 16,776,387 | |
26,311,318 | |||
Semiconductors & Semiconductor Equipment - 2.7% | |||
Analog Devices, Inc. | 8,718 | 984,698 | |
Applied Materials, Inc. | 28,416 | 1,596,411 | |
Lam Research Corp. | 1,500 | 410,505 | |
Marvell Technology Group Ltd. | 31,201 | 1,017,777 | |
NVIDIA Corp. | 407 | 144,493 | |
Qualcomm, Inc. | 223,101 | 18,044,409 | |
22,198,293 | |||
Software - 9.8% | |||
Autodesk, Inc. (a) | 17,841 | 3,753,390 | |
Dynatrace, Inc. | 21,165 | 814,218 | |
Elastic NV (a) | 21,300 | 1,830,096 | |
Microsoft Corp. | 309,253 | 56,670,611 | |
Oracle Corp. | 71,528 | 3,846,061 | |
Parametric Technology Corp. (a) | 22,900 | 1,749,102 | |
SAP SE sponsored ADR | 83,017 | 10,634,478 | |
Workday, Inc. Class A (a) | 7,000 | 1,284,010 | |
80,581,966 | |||
Technology Hardware, Storage & Peripherals - 3.2% | |||
Apple, Inc. | 82,142 | 26,116,227 | |
TOTAL INFORMATION TECHNOLOGY | 158,796,408 | ||
MATERIALS - 1.8% | |||
Chemicals - 1.4% | |||
DuPont de Nemours, Inc. | 123,700 | 6,275,301 | |
Intrepid Potash, Inc. (a) | 281,816 | 346,634 | |
Livent Corp. (a) | 4,400 | 29,656 | |
LyondellBasell Industries NV Class A | 23,200 | 1,479,232 | |
Nutrien Ltd. | 58,805 | 2,007,361 | |
PPG Industries, Inc. | 13,200 | 1,342,044 | |
11,480,228 | |||
Metals & Mining - 0.4% | |||
BHP Billiton Ltd. sponsored ADR (b) | 70,765 | 3,333,032 | |
TOTAL MATERIALS | 14,813,260 | ||
REAL ESTATE - 0.5% | |||
Equity Real Estate Investment Trusts (REITs) - 0.5% | |||
American Tower Corp. | 7,709 | 1,990,233 | |
Equinix, Inc. | 2,642 | 1,843,138 | |
3,833,371 | |||
UTILITIES - 0.1% | |||
Multi-Utilities - 0.1% | |||
Sempra Energy | 2,834 | 357,963 | |
TOTAL COMMON STOCKS | |||
(Cost $730,536,665) | 814,385,967 | ||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) (c)(d)(e) | |||
(Cost $3,301,608) | 3,301,608 | 1,517,749 | |
Money Market Funds - 2.4% | |||
Fidelity Cash Central Fund 0.11% (f) | 731,693 | 731,840 | |
Fidelity Securities Lending Cash Central Fund 0.10% (f)(g) | 19,248,731 | 19,250,656 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $19,982,496) | 19,982,496 | ||
TOTAL INVESTMENT IN SECURITIES - 102.0% | |||
(Cost $753,820,769) | 835,886,212 | ||
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (16,074,687) | ||
NET ASSETS - 100% | $819,811,525 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $10,843,464 or 1.3% of net assets.
(d) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(e) Level 3 security
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
KKR Renaissance Co-Invest LP unit | 7/25/13 | $1,504,114 |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $3,301,608 |
Vertiv Holdings LLC | 2/6/20 | $3,500,000 |
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 | $63,737 |
Fidelity Securities Lending Cash Central Fund | 150,390 |
Total | $214,127 |
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 May 31, 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 | $64,999,595 | $59,611,743 | $5,387,852 | $-- |
Consumer Discretionary | 41,334,395 | 41,334,395 | -- | -- |
Consumer Staples | 64,493,028 | 63,469,805 | 1,023,223 | -- |
Energy | 61,349,486 | 61,349,486 | -- | -- |
Financials | 130,670,169 | 125,799,954 | 4,870,215 | -- |
Health Care | 173,603,551 | 159,455,439 | 14,148,112 | -- |
Industrials | 100,134,741 | 98,821,259 | 1,313,482 | -- |
Information Technology | 158,796,408 | 158,796,408 | -- | -- |
Materials | 14,813,260 | 14,813,260 | -- | -- |
Real Estate | 3,833,371 | 3,833,371 | -- | -- |
Utilities | 357,963 | 357,963 | -- | -- |
Other | 1,517,749 | -- | -- | 1,517,749 |
Money Market Funds | 19,982,496 | 19,982,496 | -- | -- |
Total Investments in Securities: | $835,886,212 | $807,625,579 | $26,742,884 | $1,517,749 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.7% |
United Kingdom | 3.3% |
Germany | 3.0% |
France | 1.1% |
Canada | 1.1% |
Norway | 1.0% |
Others (Individually Less Than 1%) | 1.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $18,876,613) — See accompanying schedule: Unaffiliated issuers (cost $733,838,273) | $815,903,716 | |
Fidelity Central Funds (cost $19,982,496) | 19,982,496 | |
Total Investment in Securities (cost $753,820,769) | $835,886,212 | |
Cash | 81,075 | |
Restricted cash | 108,111 | |
Receivable for investments sold | 3,155,027 | |
Receivable for fund shares sold | 173,088 | |
Dividends receivable | 2,574,415 | |
Distributions receivable from Fidelity Central Funds | 27,780 | |
Prepaid expenses | 258 | |
Other receivables | 2,443 | |
Total assets | 842,008,409 | |
Liabilities | ||
Payable for investments purchased | $1,263,355 | |
Payable for fund shares redeemed | 1,133,434 | |
Accrued management fee | 151,909 | |
Distribution and service plan fees payable | 198,274 | |
Other affiliated payables | 142,932 | |
Other payables and accrued expenses | 54,180 | |
Collateral on securities loaned | 19,252,800 | |
Total liabilities | 22,196,884 | |
Net Assets | $819,811,525 | |
Net Assets consist of: | ||
Paid in capital | $716,063,243 | |
Total accumulated earnings (loss) | 103,748,282 | |
Net Assets | $819,811,525 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($344,149,973 ÷ 12,972,225 shares)(a) | $26.53 | |
Maximum offering price per share (100/94.25 of $26.53) | $28.15 | |
Class M: | ||
Net Asset Value and redemption price per share ($141,928,068 ÷ 5,363,216 shares)(a) | $26.46 | |
Maximum offering price per share (100/96.50 of $26.46) | $27.42 | |
Class C: | ||
Net Asset Value and offering price per share ($91,298,471 ÷ 3,904,281 shares)(a) | $23.38 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($216,235,912 ÷ 7,689,584 shares) | $28.12 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($26,199,101 ÷ 932,544 shares) | $28.09 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $12,065,280 | |
Income from Fidelity Central Funds (including $150,390 from security lending) | 214,127 | |
Total income | 12,279,407 | |
Expenses | ||
Management fee | ||
Basic fee | $2,423,536 | |
Performance adjustment | (1,226,163) | |
Transfer agent fees | 809,365 | |
Distribution and service plan fees | 1,361,396 | |
Accounting fees | 153,603 | |
Custodian fees and expenses | 12,243 | |
Independent trustees' fees and expenses | 2,755 | |
Registration fees | 48,488 | |
Audit | 32,595 | |
Legal | 1,570 | |
Miscellaneous | 26,625 | |
Total expenses before reductions | 3,646,013 | |
Expense reductions | (20,935) | |
Total expenses after reductions | 3,625,078 | |
Net investment income (loss) | 8,654,329 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 19,609,316 | |
Fidelity Central Funds | 1,997 | |
Foreign currency transactions | 2,103 | |
Total net realized gain (loss) | 19,613,416 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (154,469,970) | |
Assets and liabilities in foreign currencies | 2,151 | |
Total change in net unrealized appreciation (depreciation) | (154,467,819) | |
Net gain (loss) | (134,854,403) | |
Net increase (decrease) in net assets resulting from operations | $(126,200,074) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $8,654,329 | $18,853,743 |
Net realized gain (loss) | 19,613,416 | 122,681,695 |
Change in net unrealized appreciation (depreciation) | (154,467,819) | (5,212,247) |
Net increase (decrease) in net assets resulting from operations | (126,200,074) | 136,323,191 |
Distributions to shareholders | (84,162,149) | (156,407,970) |
Share transactions - net increase (decrease) | (17,024,909) | (143,854,088) |
Total increase (decrease) in net assets | (227,387,132) | (163,938,867) |
Net Assets | ||
Beginning of period | 1,047,198,657 | 1,211,137,524 |
End of period | $819,811,525 | $1,047,198,657 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Large Cap Fund Class A
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.80 | $33.76 | $34.98 | $30.27 | $28.12 | $29.60 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .27 | .51 | .40 | .39 | .34 | .25 |
Net realized and unrealized gain (loss) | (3.86) | 2.97 | .89 | 4.93 | 2.64 | (.74) |
Total from investment operations | (3.59) | 3.48 | 1.29 | 5.32 | 2.98 | (.49) |
Distributions from net investment income | (.60) | (.45) | (.38) | (.33) | (.23) | (.14) |
Distributions from net realized gain | (2.08) | (3.99) | (2.13) | (.27) | (.60) | (.85) |
Total distributions | (2.68) | (4.44) | (2.51) | (.61)B | (.83) | (.99) |
Net asset value, end of period | $26.53 | $32.80 | $33.76 | $34.98 | $30.27 | $28.12 |
Total ReturnC,D,E | (12.14)% | 14.19% | 3.77% | 17.84% | 11.09% | (1.57)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .76%H | .91% | .92% | .91% | .92% | 1.15% |
Expenses net of fee waivers, if any | .76%H | .91% | .92% | .91% | .92% | 1.15% |
Expenses net of all reductions | .76%H | .90% | .92% | .90% | .91% | 1.15% |
Net investment income (loss) | 1.95%H | 1.71% | 1.17% | 1.22% | 1.25% | .90% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $344,150 | $423,325 | $401,495 | $461,949 | $455,182 | $469,026 |
Portfolio turnover rateI | 28%H | 28%J | 37% | 31% | 28% | 31% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.61 per share is comprised of distributions from net investment income of $.334 and distributions from net realized gain of $.273 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Large Cap Fund Class M
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.69 | $33.63 | $34.86 | $30.17 | $28.02 | $29.50 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .24 | .43 | .31 | .31 | .27 | .18 |
Net realized and unrealized gain (loss) | (3.87) | 2.98 | .89 | 4.91 | 2.64 | (.74) |
Total from investment operations | (3.63) | 3.41 | 1.20 | 5.22 | 2.91 | (.56) |
Distributions from net investment income | (.52) | (.36) | (.29) | (.26) | (.16) | (.07) |
Distributions from net realized gain | (2.08) | (3.99) | (2.13) | (.27) | (.60) | (.85) |
Total distributions | (2.60) | (4.35) | (2.43)B | (.53) | (.76) | (.92) |
Net asset value, end of period | $26.46 | $32.69 | $33.63 | $34.86 | $30.17 | $28.02 |
Total ReturnC,D,E | (12.28)% | 13.93% | 3.50% | 17.54% | 10.81% | (1.84)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.02%H | 1.17% | 1.18% | 1.17% | 1.18% | 1.41% |
Expenses net of fee waivers, if any | 1.01%H | 1.16% | 1.18% | 1.17% | 1.18% | 1.41% |
Expenses net of all reductions | 1.01%H | 1.16% | 1.18% | 1.17% | 1.18% | 1.41% |
Net investment income (loss) | 1.69%H | 1.46% | .92% | .96% | .99% | .63% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $141,928 | $175,139 | $173,195 | $193,882 | $173,119 | $177,560 |
Portfolio turnover rateI | 28%H | 28%J | 37% | 31% | 28% | 31% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $2.43 per share is comprised of distributions from net investment income of $.294 and distributions from net realized gain of $2.132 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Large Cap Fund Class C
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.09 | $30.44 | $31.78 | $27.58 | $25.70 | $27.21 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .15 | .25 | .13 | .14 | .12 | .04 |
Net realized and unrealized gain (loss) | (3.42) | 2.60 | .81 | 4.49 | 2.40 | (.69) |
Total from investment operations | (3.27) | 2.85 | .94 | 4.63 | 2.52 | (.65) |
Distributions from net investment income | (.36) | (.21) | (.15) | (.15) | (.04) | (.01) |
Distributions from net realized gain | (2.08) | (3.99) | (2.13) | (.27) | (.60) | (.85) |
Total distributions | (2.44) | (4.20) | (2.28) | (.43)B | (.64) | (.86) |
Net asset value, end of period | $23.38 | $29.09 | $30.44 | $31.78 | $27.58 | $25.70 |
Total ReturnC,D,E | (12.49)% | 13.33% | 3.01% | 16.97% | 10.21% | (2.33)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.53%H | 1.67% | 1.69% | 1.67% | 1.67% | 1.90% |
Expenses net of fee waivers, if any | 1.53%H | 1.67% | 1.69% | 1.67% | 1.67% | 1.90% |
Expenses net of all reductions | 1.53%H | 1.67% | 1.68% | 1.66% | 1.67% | 1.90% |
Net investment income (loss) | 1.18%H | .95% | .41% | .46% | .49% | .14% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $91,298 | $119,072 | $158,775 | $194,553 | $169,524 | $181,957 |
Portfolio turnover rateI | 28%H | 28%J | 37% | 31% | 28% | 31% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.43 per share is comprised of distributions from net investment income of $.152 and distributions from net realized gain of $.273 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Large Cap Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $34.63 | $35.37 | $36.53 | $31.57 | $29.30 | $30.78 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .33 | .62 | .51 | .50 | .43 | .34 |
Net realized and unrealized gain (loss) | (4.10) | 3.17 | .93 | 5.14 | 2.74 | (.78) |
Total from investment operations | (3.77) | 3.79 | 1.44 | 5.64 | 3.17 | (.44) |
Distributions from net investment income | (.66) | (.54) | (.47) | (.40) | (.30) | (.20) |
Distributions from net realized gain | (2.08) | (3.99) | (2.13) | (.27) | (.60) | (.85) |
Total distributions | (2.74) | (4.53) | (2.60) | (.68)B | (.90) | (1.04)C |
Net asset value, end of period | $28.12 | $34.63 | $35.37 | $36.53 | $31.57 | $29.30 |
Total ReturnD,E | (12.04)% | 14.54% | 4.05% | 18.16% | 11.34% | (1.33)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .49%H | .64% | .66% | .64% | .65% | .89% |
Expenses net of fee waivers, if any | .48%H | .64% | .66% | .64% | .65% | .89% |
Expenses net of all reductions | .48%H | .64% | .66% | .64% | .65% | .89% |
Net investment income (loss) | 2.22%H | 1.98% | 1.44% | 1.48% | 1.51% | 1.15% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $216,236 | $301,067 | $459,962 | $520,465 | $433,079 | $498,404 |
Portfolio turnover rateI | 28%H | 28%J | 37% | 31% | 28% | 31% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.68 per share is comprised of distributions from net investment income of $.404 and distributions from net realized gain of $.273 per share.
C Total distributions of $1.04 per share is comprised of distributions from net investment income of $.195 and distributions from net realized gain of $.849 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Large Cap Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||
2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $34.64 | $35.41 | $36.57 | $32.04 |
Income from Investment Operations | ||||
Net investment income (loss)B | .34 | .66 | .56 | .51 |
Net realized and unrealized gain (loss) | (4.09) | 3.16 | .93 | 4.02 |
Total from investment operations | (3.75) | 3.82 | 1.49 | 4.53 |
Distributions from net investment income | (.72) | (.60) | (.52) | – |
Distributions from net realized gain | (2.08) | (3.99) | (2.13) | – |
Total distributions | (2.80) | (4.59) | (2.65) | – |
Net asset value, end of period | $28.09 | $34.64 | $35.41 | $36.57 |
Total ReturnC,D | (11.99)% | 14.67% | 4.19% | 14.14% |
Ratios to Average Net AssetsE,F | ||||
Expenses before reductions | .37%G | .51% | .53% | .51%G |
Expenses net of fee waivers, if any | .37%G | .51% | .53% | .51%G |
Expenses net of all reductions | .36%G | .51% | .53% | .51%G |
Net investment income (loss) | 2.34%G | 2.11% | 1.57% | 1.80%G |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $26,199 | $28,596 | $17,711 | $13,966 |
Portfolio turnover rateH | 28%G | 28%I | 37% | 31% |
A For the period February 1, 2017 (commencement of sale of shares) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
1. Organization.
Fidelity Advisor Large Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to in-kind transactions, partnerships, foreign currency transactions and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $216,653,853 |
Gross unrealized depreciation | (140,720,216) |
Net unrealized appreciation (depreciation) | $75,933,637 |
Tax cost | $759,952,575 |
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.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $1,625,860 in this Subsidiary, representing .20% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Large Cap Fund | 127,831,711 | 197,425,228 |
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 .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 S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .26% 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% | $466,371 | $7,152 |
Class M | .25% | .25% | 383,888 | 3,346 |
Class C | .75% | .25% | 511,137 | 31,724 |
$1,361,396 | $42,222 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class M shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $52,294 |
Class M | 4,686 |
Class C(a) | 5,738 |
$62,718 |
(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 | $346,918 | .19 |
Class M | 146,746 | .19 |
Class C | 104,138 | .20 |
Class I | 205,951 | .16 |
Class Z | 5,612 | .04 |
$809,365 |
(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 Large Cap 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 Large Cap Fund | $4,424 |
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.
Prior Year Affiliated Redemptions In-Kind. During the prior period, 3,448,450 shares of the Fund were redeemed in-kind for investments and cash with a value of $109,171,715. The Fund had a net realized gain of $38,293,813 on investments delivered through in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
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 Large Cap Fund | $1,231 |
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. The value of securities loaned to NFS, as affiliated borrower, at period end was $4,859. Total fees paid by the Fund to NFS, as lending agent, amounted to $13,503. 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 $356 from securities loaned to NFS, as affiliated borrower.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $8,164 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 $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 $2,103.
In addition, during the period the investment adviser or an affiliate reimbursed the Fund $10,630 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 May 31, 2020 | Year ended November 30, 2019 | |
Distributions to shareholders | ||
Class A | $34,539,981 | $52,574,860 |
Class M | 13,794,563 | 22,422,377 |
Class C | 9,862,974 | 21,365,837 |
Class I | 23,630,124 | 57,066,246 |
Class Z | 2,334,507 | 2,978,650 |
Total | $84,162,149 | $156,407,970 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Class A | ||||
Shares sold | 1,028,234 | 2,411,911 | $27,897,938 | $70,596,919 |
Reinvestment of distributions | 1,075,735 | 2,012,376 | 33,444,611 | 50,953,371 |
Shares redeemed | (2,036,684) | (3,413,311) | (55,233,264) | (100,437,805) |
Net increase (decrease) | 67,285 | 1,010,976 | $6,109,285 | $21,112,485 |
Class M | ||||
Shares sold | 330,173 | 632,380 | $8,692,429 | $18,471,672 |
Reinvestment of distributions | 437,667 | 869,758 | 13,589,551 | 21,996,189 |
Shares redeemed | (762,851) | (1,294,413) | (20,896,625) | (37,697,052) |
Net increase (decrease) | 4,989 | 207,725 | $1,385,355 | $2,770,809 |
Class C | ||||
Shares sold | 216,622 | 697,792 | $5,210,462 | $17,629,082 |
Reinvestment of distributions | 326,534 | 880,159 | 8,979,690 | 19,900,399 |
Shares redeemed | (731,755) | (2,701,896) | (17,339,834) | (70,243,190) |
Net increase (decrease) | (188,599) | (1,123,945) | $(3,149,682) | $(32,713,709) |
Class I | ||||
Shares sold | 763,455 | 2,258,206 | $22,437,671 | $68,580,970 |
Reinvestment of distributions | 649,329 | 1,992,530 | 21,375,913 | 53,120,853 |
Shares redeemed | (2,417,774) | (8,559,302)(a) | (68,486,304) | (266,670,865)(a) |
Net increase (decrease) | (1,004,990) | (4,308,566) | $(24,672,720) | $(144,969,042) |
Class Z | ||||
Shares sold | 206,322 | 663,462 | $6,038,514 | $20,709,858 |
Reinvestment of distributions | 65,037 | 97,118 | 2,137,756 | 2,587,220 |
Shares redeemed | (164,386) | (435,227) | (4,873,417) | (13,351,709) |
Net increase (decrease) | 106,973 | 325,353 | $3,302,853 | $9,945,369 |
(a) Amount includes in-kind redemptions (see the Prior Year Affiliated Redemptions In-Kind note for additional details).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (December 1, 2019 to May 31, 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 December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Class A | .76% | |||
Actual | $1,000.00 | $878.60 | $3.57 | |
Hypothetical-C | $1,000.00 | $1,021.20 | $3.84 | |
Class M | 1.01% | |||
Actual | $1,000.00 | $877.20 | $4.74 | |
Hypothetical-C | $1,000.00 | $1,019.95 | $5.10 | |
Class C | 1.53% | |||
Actual | $1,000.00 | $875.10 | $7.17 | |
Hypothetical-C | $1,000.00 | $1,017.35 | $7.72 | |
Class I | .48% | |||
Actual | $1,000.00 | $879.60 | $2.26 | |
Hypothetical-C | $1,000.00 | $1,022.60 | $2.43 | |
Class Z | .37% | |||
Actual | $1,000.00 | $880.10 | $1.74 | |
Hypothetical-C | $1,000.00 | $1,023.15 | $1.87 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Large Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 Large Cap Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613071504.jpg)
Fidelity Advisor Large Cap Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613071955.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.
LC-SANN-0720
1.704742.122
Fidelity® Real Estate High Income Fund
Semi-Annual Report
May 31, 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 (collect) 1-401-292-6402 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)
Quality Diversification (% of fund's net assets)
As of May 31, 2020 | ||
AAA,AA,A | 4.4% | |
BBB | 30.9% | |
BB | 20.5% | |
B | 13.0% | |
CCC,CC,C | 2.7% | |
Not Rated | 23.7% | |
Equities | 3.4% | |
Short-Term Investments and Net Other Assets | 1.4% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. Where neither Moody's nor S&P ratings are available, we have used Fitch® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of May 31, 2020 | ||
CMOs and Other Mortgage Related Securities | 79.5% | |
Asset-Backed Securities | 6.5% | |
Nonconvertible Bonds | 4.6% | |
Convertible Bonds, Preferred Stocks | 3.2% | |
Common Stocks | 0.4% | |
Bank Loan Obligations | 4.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.4% |
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 4.8% | |||
Principal Amount | Value | ||
Convertible Bonds - 0.2% | |||
Homebuilders/Real Estate - 0.2% | |||
PennyMac Corp. 5.5% 11/1/24 (a) | $1,699,000 | $1,281,951 | |
Nonconvertible Bonds - 4.6% | |||
Banks & Thrifts - 0.2% | |||
HAT Holdings I LLC/HAT Holdings II LLC 6% 4/15/25 (a) | 1,570,000 | 1,621,025 | |
Consumer Products - 0.1% | |||
Nordstrom, Inc. 8.75% 5/15/25 (a) | 545,000 | 585,256 | |
Diversified Media - 0.3% | |||
Lamar Media Corp. 4% 2/15/30 (a) | 1,705,000 | 1,641,063 | |
Healthcare - 0.4% | |||
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 1,433,000 | 1,468,825 | |
MPT Operating Partnership LP/MPT Finance Corp. 5.25% 8/1/26 | 333,000 | 341,325 | |
Sabra Health Care LP 3.9% 10/15/29 | 795,000 | 670,801 | |
2,480,951 | |||
Homebuilders/Real Estate - 1.9% | |||
Adams Homes, Inc. 7.5% 2/15/25 (a) | 1,215,000 | 1,117,436 | |
American Homes 4 Rent LP 4.25% 2/15/28 | 1,836,000 | 1,805,798 | |
DTZ U.S. Borrower LLC 6.75% 5/15/28 (a) | 685,000 | 715,962 | |
iStar Financial, Inc.: | |||
4.25% 8/1/25 | 3,630,000 | 3,180,788 | |
4.75% 10/1/24 | 2,805,000 | 2,524,500 | |
Uniti Group, Inc. 7.875% 2/15/25 (a) | 1,195,000 | 1,214,419 | |
VICI Properties, Inc.: | |||
4.125% 8/15/30 (a) | 985,000 | 950,525 | |
4.625% 12/1/29 (a) | 835,000 | 833,046 | |
12,342,474 | |||
Hotels - 1.5% | |||
ESH Hospitality, Inc. 5.25% 5/1/25 (a) | 3,540,000 | 3,442,650 | |
Hilton Domestic Operating Co., Inc. 5.75% 5/1/28 (a) | 925,000 | 955,063 | |
Marriott Ownership Resorts, Inc. 4.75% 1/15/28 (a) | 3,250,000 | 2,861,235 | |
Times Square Hotel Trust 8.528% 8/1/26 (a) | 2,337,838 | 2,518,028 | |
9,776,976 | |||
Super Retail - 0.2% | |||
Macy's, Inc. 8.375% 6/15/25 (a)(b) | 1,555,000 | 1,576,381 | |
TOTAL NONCONVERTIBLE BONDS | 30,024,126 | ||
TOTAL CORPORATE BONDS | |||
(Cost $32,817,902) | 31,306,077 | ||
Asset-Backed Securities - 6.5% | |||
American Homes 4 Rent: | |||
Series 2014-SFR3 Class E, 6.418% 12/17/36 (a) | 1,553,000 | 1,703,983 | |
Series 2015-SFR1 Class E, 5.639% 4/17/52 (a) | 3,096,223 | 3,187,526 | |
Series 2015-SFR2: | |||
Class E, 6.07% 10/17/52 (a) | 3,728,000 | 3,703,826 | |
Class XS, 0% 10/17/52 (a)(c)(d)(e) | 2,619,531 | 26 | |
Argent Securities, Inc. pass-thru certificates Series 2004-W9 Class M7, 1 month U.S. LIBOR + 4.200% 4.399% 6/26/34 (a)(c)(f) | 51,392 | 117,528 | |
Capital Trust RE CDO Ltd. Series 2005-1A: | |||
Class D, 1 month U.S. LIBOR + 1.500% 3.3464% 3/20/50 (a)(c)(e)(f) | 750,000 | 75 | |
Class E, 1 month U.S. LIBOR + 2.100% 3.9464% 3/20/50 (a)(c)(e)(f) | 2,670,000 | 267 | |
Crest Ltd. Series 2004-1A Class H1, 3 month U.S. LIBOR + 3.690% 5.9458% 1/28/40 (a)(c)(e)(f) | 2,802,032 | 280 | |
Home Partners America Trust Series 2019-2 Class F, 3.866% 10/19/39 (a) | 2,185,295 | 1,765,682 | |
Home Partners of America Credit Trust Series 2017-1: | |||
Class E, 1 month U.S. LIBOR + 2.650% 2.8321% 7/17/34 (a)(c)(f) | 772,000 | 755,998 | |
Class F, 1 month U.S. LIBOR + 3.530% 3.7211% 7/17/34 (a)(c)(f) | 1,912,000 | 1,833,950 | |
Home Partners of America Trust Series 2018-1 Class F, 1 month U.S. LIBOR + 2.350% 2.5321% 7/17/37 (a)(c)(f) | 2,045,000 | 1,811,898 | |
Invitation Homes Trust Series 2018-SFR2: | |||
Class E, 1 month U.S. LIBOR + 2.000% 2.1836% 6/17/37 (a)(c)(f) | 843,000 | 797,522 | |
Class F, 1 month U.S. LIBOR + 2.250% 2.6% 6/17/37 (a)(c)(f) | 1,710,993 | 1,536,402 | |
Merit Securities Corp. Series 13 Class M1, 7.7764% 12/28/33 (c) | 1,042,455 | 1,071,737 | |
Progress Residential Trust: | |||
Series 2018-SFR2 Class F, 4.953% 8/17/35 (a) | 567,000 | 530,528 | |
Series 2019-SFR4 Class F, 3.684% 10/17/36 (a) | 4,527,000 | 4,076,755 | |
Series 2020-SFR1: | |||
Class G, 4.028% 4/17/37 (a) | 1,638,000 | 1,361,990 | |
Class H, 5.268% 4/17/37 (a) | 462,000 | 374,893 | |
Starwood Waypoint Homes Trust Series 2017-1 Class F, 1 month U.S. LIBOR + 3.400% 3.5836% 1/17/35 (a)(c)(f) | 2,935,000 | 2,800,174 | |
Taberna Preferred Funding III Ltd. Series 2005-3A: | |||
Class D, 3 month U.S. LIBOR + 2.650% 4.5405% 2/5/36 (a)(c)(e)(f) | 2,799,362 | 210 | |
Class E, 3 month U.S. LIBOR + 4.500% 6.3905% 2/5/36 (a)(c)(e)(f) | 1,044,248 | 78 | |
Taberna Preferred Funding VI Ltd. Series 2006-6A Class F1, 3 month U.S. LIBOR + 4.500% 5.0409% 12/5/36 (a)(c)(e)(f) | 5,145,326 | 386 | |
Tricon American Homes: | |||
Series 2016-SFR1 Class F, 5.769% 11/17/33 (a) | 4,586,000 | 4,513,257 | |
Series 2017-SFR1 Class F, 5.151% 9/17/34 (a) | 4,587,000 | 4,512,705 | |
Series 2017-SFR2 Class F, 5.104% 1/17/36 (a) | 664,000 | 658,945 | |
Series 2018-SFR1 Class F, 4.96% 5/17/37 (a) | 1,440,000 | 1,333,374 | |
Series 2019-SFR1 Class F, 3.745% 3/17/38 (a) | 2,121,000 | 2,040,429 | |
VB-S1 Issuer LLC Series 2018-1A Class F, 5.25% 2/15/48 (a) | 2,142,000 | 2,067,256 | |
TOTAL ASSET-BACKED SECURITIES | |||
(Cost $53,223,262) | 42,557,680 | ||
Collateralized Mortgage Obligations - 0.0% | |||
Private Sponsor - 0.0% | |||
Countrywide Home Loans, Inc. Series 2003-R1 Class 2B4, 3.3614% 2/25/43 (a)(c)(e) | 26,623 | 5,525 | |
Credit Suisse First Boston Mortgage Securities Corp. Series 2002-26 Class 4B3, 7% 10/25/17 (e) | 26,858 | 3 | |
TOTAL PRIVATE SPONSOR | 5,528 | ||
U.S. Government Agency - 0.0% | |||
Fannie Mae REMIC Trust: | |||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.947% 2/25/42 (a)(c) | 37,628 | 10,233 | |
Series 2002-W6 subordinate REMIC pass thru certificates, Class 3B4, 4.1188% 1/25/42 (a)(c)(e) | 27,262 | 404 | |
Series 2003-W10 subordinate REMIC pass thru certificates: | |||
Class 2B4, 3.9106% 6/25/43 (c)(e)(g) | 133,733 | 37,098 | |
Class 2B5, 3.9106% 6/25/43 (c)(e)(g) | 1,523 | 33 | |
TOTAL U.S. GOVERNMENT AGENCY | 47,768 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
(Cost $100,663) | 53,296 | ||
Commercial Mortgage Securities - 79.5% | |||
Atrium Hotel Portfolio Trust floater Series 2018-ATRM Class D, 1 month U.S. LIBOR + 2.300% 2.4836% 6/15/35 (a)(c)(f) | 663,000 | 542,866 | |
BAMLL Trust Series 2015-200P Class F, 3.5958% 4/14/33 (a)(c) | 2,588,000 | 2,468,530 | |
Banc of America Merrill Lynch Large Loan, Inc. floater: | |||
Series 2019-AHT Class C, 1 month U.S. LIBOR + 2.000% 2.1836% 3/15/34 (a)(c)(f) | 910,000 | 785,223 | |
Series 2019-RLJ Class D, 1 month U.S. LIBOR + 1.950% 2.1336% 4/15/36 (a)(c)(f) | 2,982,000 | 2,154,887 | |
BANK: | |||
sequential payer Series 2019-BN23 Class E, 2.5% 12/15/52 (a) | 1,638,000 | 746,875 | |
Series 2017-BNK4 Class D, 3.357% 5/15/50 (a) | 4,416,000 | 2,641,928 | |
Series 2017-BNK6 Class D, 3.1% 7/15/60 (a) | 2,593,000 | 1,670,575 | |
Series 2017-BNK8: | |||
Class D, 2.6% 11/15/50 (a) | 4,653,000 | 2,884,029 | |
Class E, 2.8% 11/15/50 (a) | 2,625,000 | 1,212,268 | |
Series 2018-BN12 Class D, 3% 5/15/61 (a) | 2,082,000 | 1,057,860 | |
Series 2019-BN18: | |||
Class D, 3% 5/15/62 (a) | 2,541,000 | 1,456,471 | |
Class E, 3% 5/15/62 (a) | 1,302,000 | 653,973 | |
Series 2019-BN19: | |||
Class D, 3% 8/15/61 (a) | 3,753,000 | 2,198,654 | |
Class E, 3% 8/15/61 (a) | 612,000 | 313,798 | |
Series 2019-BN20 Class D, 2.5% 9/15/62 (a) | 3,994,000 | 2,368,098 | |
Series 2019-BN21: | |||
Class E, 2.5% 10/17/52 (a) | 2,210,000 | 948,514 | |
Class F, 2.6818% 10/17/52 (a) | 3,234,000 | 1,279,748 | |
Series 2019-BN22 Class D, 2.5% 11/15/62 (a) | 2,465,000 | 1,398,185 | |
Series 2020-BN26 Class D, 2.5% 3/15/63 (a) | 1,269,000 | 681,535 | |
Bank of America Commercial Mortgage Securities Trust Series 2017-BNK3 Class D, 3.25% 2/15/50 (a) | 2,201,000 | 1,291,399 | |
Barclays Commercial Mortgage Securities LLC: | |||
Series 2015-STP: | |||
Class D, 4.2844% 9/10/28 (a)(c) | 1,288,000 | 1,280,140 | |
Class E, 4.2844% 9/10/28 (a)(c) | 6,580,000 | 6,464,584 | |
Series 2019-C5: | |||
Class D, 2.5% 11/15/52 (a) | 726,000 | 438,142 | |
Class E, 2.5% 11/15/52 (a) | 2,545,000 | 1,187,090 | |
Class F, 2.6014% 11/15/52 (a)(c) | 1,322,000 | 525,885 | |
BBCMS Mortgage Trust: | |||
Series 2016-ETC Class D, 3.6089% 8/14/36 (a)(c) | 1,749,000 | 1,296,807 | |
Series 2020-C6 Class E, 2.4% 2/15/53 (a) | 1,512,000 | 624,644 | |
Benchmark Mortgage Trust: | |||
sequential payer Series 2019-B14: | |||
Class 225D, 3.2943% 12/15/62 (a)(c) | 1,680,000 | 1,446,470 | |
Class 225E, 3.2943% 12/15/62 (a)(c) | 1,132,000 | 886,546 | |
Series 2018-B7: | |||
Class D, 3% 5/15/53 (a)(c) | 833,000 | 479,326 | |
Class E, 3% 5/15/53 (a)(c) | 833,000 | 407,687 | |
Class F, 3.6099% 5/15/53 (a)(c) | 3,065,000 | 1,276,754 | |
Series 2019-B12 Class D, 3% 8/15/52 (a) | 2,499,000 | 1,341,541 | |
Series 2020-IG3 Class 825E, 3.0763% 9/15/48 (a)(c) | 3,049,000 | 2,333,666 | |
BX Commercial Mortgage Trust: | |||
floater: | |||
Series 2018-BIOA: | |||
Class E, 1 month U.S. LIBOR + 1.950% 2.1347% 3/15/37 (a)(c)(f) | 3,260,000 | 2,974,447 | |
Class F, 1 month U.S. LIBOR + 2.470% 2.6547% 3/15/37 (a)(c)(f) | 1,801,000 | 1,650,329 | |
Series 2019-CALM Class E, 1 month U.S. LIBOR + 2.000% 2.1836% 11/25/32 (a)(c)(f) | 819,000 | 692,716 | |
Series 2020-BXLP Class G, 1 month U.S. LIBOR + 2.500% 2.6836% 12/15/36 (a)(c)(f) | 4,650,000 | 4,284,059 | |
Series 2020-VIVA: | |||
Class D, 3.667% 3/9/44 (a)(c) | 3,667,000 | 3,132,963 | |
Class E, 3.667% 3/9/44 (a)(c) | 2,357,000 | 1,847,726 | |
BX Trust: | |||
floater: | |||
Series 2017-APPL Class F, 1 month U.S. LIBOR + 4.250% 4.4336% 7/15/34 (a)(c)(f) | 2,444,600 | 2,113,857 | |
Series 2018-IND: | |||
Class G, 1 month U.S. LIBOR + 2.050% 2.2336% 11/15/35 (a)(c)(f) | 683,900 | 641,030 | |
Class H, 1 month U.S. LIBOR + 3.000% 3.1836% 11/15/35 (a)(c)(f) | 1,271,900 | 1,195,724 | |
Series 2019-IMC Class G, 1 month U.S. LIBOR + 3.600% 3.7836% 4/15/34 (a)(c)(f) | 3,255,000 | 2,345,564 | |
Series 2019-XL: | |||
Class F, 1 month U.S. LIBOR + 2.000% 2.1836% 10/15/36 (a)(c)(f) | 1,315,587 | 1,239,773 | |
Class J, 1 month U.S. LIBOR + 2.650% 2.8336% 10/15/36 (a)(c)(f) | 11,524,041 | 10,789,215 | |
Series 2019-OC11: | |||
Class C, 3.856% 12/9/41 (a) | 2,405,000 | 2,234,242 | |
Class E, 4.0755% 12/9/41 (a)(c) | 7,251,000 | 6,392,319 | |
CALI Mortgage Trust Series 2019-101C Class F, 4.3244% 3/10/39 (a)(c) | 3,093,000 | 2,581,475 | |
CAMB Commercial Mortgage Trust floater Series 2019-LIFE Class G, 1 month U.S. LIBOR + 3.250% 3.4336% 12/15/37 (a)(c)(f) | 1,972,000 | 1,816,034 | |
CD Mortgage Trust Series 2017-CD3 Class D, 3.25% 2/10/50 (a) | 4,073,000 | 2,572,117 | |
Citigroup Commercial Mortgage Trust: | |||
Series 2013-375P Class E, 3.5176% 5/10/35 (a)(c) | 4,069,000 | 3,783,857 | |
Series 2013-GC15 Class D, 5.2133% 9/10/46 (a)(c) | 7,323,000 | 6,022,387 | |
Series 2016-C3 Class D, 3% 11/15/49 (a) | 4,412,000 | 2,255,342 | |
Series 2019-GC41: | |||
Class D, 3% 8/10/56 (a) | 2,273,000 | 1,207,364 | |
Class E, 3% 8/10/56 (a) | 1,848,000 | 853,854 | |
Series 2019-GC43 Class E, 3% 11/10/52 (a) | 2,772,000 | 1,259,070 | |
Series 2020-GC46: | |||
Class D, 2.6% 1/15/53 (a) | 2,756,000 | 1,491,481 | |
Class E, 2.6% 1/15/53 (a) | 329,000 | 160,935 | |
COMM Mortgage Trust: | |||
floater: | |||
Series 2018-HCLV Class G, 1 month U.S. LIBOR + 5.050% 5.24% 9/15/33 (a)(c)(f) | 1,487,000 | 1,069,412 | |
Series 2019-521F Class F, 1 month U.S. LIBOR + 2.390% 2.5776% 6/15/34 (a)(c)(f) | 2,772,000 | 2,162,271 | |
sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (a) | 2,840,000 | 1,498,878 | |
Series 2012-CR1: | |||
Class D, 5.3197% 5/15/45 (a)(c) | 7,226,000 | 4,446,831 | |
Class G, 2.462% 5/15/45 (a) | 2,322,000 | 783,649 | |
Series 2013-CR10 Class D, 4.7889% 8/10/46 (a)(c) | 3,673,000 | 3,196,875 | |
Series 2013-CR12 Class D, 5.0713% 10/10/46 (a)(c) | 4,043,000 | 2,593,795 | |
Series 2013-LC6 Class D, 4.3185% 1/10/46 (a)(c) | 5,644,000 | 3,440,109 | |
Series 2014-CR15 Class D, 4.7449% 2/10/47 (a)(c) | 1,060,000 | 842,844 | |
Series 2014-CR17 Class E, 4.8474% 5/10/47 (a)(c) | 589,000 | 364,389 | |
Series 2014-LC17 Class C, 4.5729% 10/10/47 (c) | 752,000 | 674,715 | |
Series 2014-UBS2 Class D, 5.0026% 3/10/47 (a)(c) | 3,454,000 | 2,573,587 | |
Series 2015-3BP Class F, 3.2384% 2/10/35 (a)(c) | 4,405,000 | 3,665,329 | |
Series 2017-CD4 Class D, 3.3% 5/10/50 (a) | 3,234,000 | 1,920,692 | |
Series 2019-CD4 Class C, 4.349% 5/10/50 (c) | 3,977,000 | 3,715,323 | |
COMM Trust Series 2017-COR2 Class D, 3% 9/10/50 (a) | 1,146,000 | 744,169 | |
Commercial Mortgage Trust Series 2016-CD2 Class D, 2.7749% 11/10/49 (c) | 1,680,000 | 964,565 | |
Commercial Mortgage Trust pass-thru certificates: | |||
Series 2012-CR2: | |||
Class D, 4.8309% 8/15/45 (a)(c) | 789,000 | 612,756 | |
Class E, 4.8309% 8/15/45 (a)(c) | 5,385,400 | 3,275,185 | |
Class F, 4.25% 8/15/45 (a) | 7,162,000 | 3,225,999 | |
Series 2014-CR2 Class G, 4.25% 8/15/45 (a) | 1,556,000 | 311,200 | |
CPT Mortgage Trust sequential payer Series 2019-CPT Class F, 2.9968% 11/13/39 (a)(c) | 2,772,000 | 2,009,363 | |
Credit Suisse First Boston Mortgage Securities Corp. Series 1998-C1 Class H, 6% 5/17/40 (a) | 638,820 | 421,644 | |
Credit Suisse Mortgage Trust: | |||
floater Series 2019-ICE4 Class F, 1 month U.S. LIBOR + 2.650% 2.8336% 5/15/36 (a)(c)(f) | 1,512,000 | 1,391,908 | |
Series 2019-UVIL Class E, 3.3928% 12/15/41 (a)(c) | 2,289,000 | 1,501,855 | |
CSAIL Commercial Mortgage Trust: | |||
Series 2017-C8 Class D, 4.4701% 6/15/50 (a) | 3,902,000 | 2,591,282 | |
Series 2017-CX10 Class UESD, 4.2366% 10/15/32 (a)(c) | 1,890,000 | 1,587,461 | |
Series 2017-CX9 Class D, 4.1516% 9/15/50 (a)(c) | 1,615,000 | 919,239 | |
Series 2019-C15 Class C, 4.9802% 3/15/52 (c) | 3,132,000 | 2,736,042 | |
CSMC Trust Series 2017-MOON Class E, 3.1965% 7/10/34 (a)(c) | 1,007,000 | 927,867 | |
DBCCRE Mortgage Trust Series 2014-ARCP: | |||
Class D, 4.9345% 1/10/34 (a)(c) | 833,000 | 751,515 | |
Class E, 4.9345% 1/10/34 (a)(c) | 4,264,000 | 3,644,229 | |
DBGS Mortgage Trust: | |||
Series 2018-C1: | |||
Class C, 4.6364% 10/15/51 (c) | 777,000 | 637,674 | |
Class D, 2.8864% 10/15/51 (a)(c) | 3,459,000 | 2,100,891 | |
Series 2019-1735 Class F, 4.1946% 4/10/37 (a)(c) | 1,000,000 | 706,592 | |
DBUBS Mortgage Trust Series 2011-LC1A: | |||
Class F, 5.6865% 11/10/46 (a)(c) | 7,292,000 | 6,807,263 | |
Class G, 4.652% 11/10/46 (a) | 7,812,000 | 7,058,798 | |
DC Office Trust Series 2019-MTC Class E, 3.1744% 9/15/45 (a) | 1,029,000 | 698,067 | |
Freddie Mac: | |||
pass-thru certificates Series K013 Class X3, 2.8139% 1/25/43 (c)(d) | 4,473,000 | 44,282 | |
Series KAIV Class X2, 3.6147% 6/25/41 (c)(d) | 2,316,000 | 62,095 | |
GPMT Ltd. floater Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.950% 3.1209% 11/21/35 (a)(c)(f) | 1,227,000 | 925,798 | |
Grace Mortgage Trust Series 2014-GRCE Class G, 3.5901% 6/10/28 (a)(c) | 2,093,000 | 1,951,314 | |
GS Mortgage Securities Corp. Trust floater: | |||
Series 2019-70P Class F, 1 month U.S. LIBOR + 2.650% 2.8336% 10/15/36 (a)(c)(f) | 2,550,000 | 2,061,688 | |
Series 2019-SOHO Class E, 1 month U.S. LIBOR + 1.870% 2.0583% 6/15/36 (a)(c)(f) | 4,894,000 | 4,387,563 | |
GS Mortgage Securities Trust: | |||
Series 2011-GC5: | |||
Class D, 5.3888% 8/10/44 (a)(c) | 1,929,752 | 1,397,203 | |
Class E, 5.3888% 8/10/44 (a)(c) | 2,432,000 | 1,526,404 | |
Class F, 4.5% 8/10/44 (a) | 4,308,000 | 2,093,917 | |
Series 2012-GC6: | |||
Class D, 5.6509% 1/10/45 (a)(c) | 3,753,000 | 2,304,765 | |
Class E, 5% 1/10/45 (a)(c) | 2,984,000 | 1,540,957 | |
Series 2012-GC6I Class F, 5% 1/10/45 (c) | 1,508,000 | 1,053,478 | |
Series 2012-GCJ7: | |||
Class D, 5.6987% 5/10/45 (a)(c) | 8,756,500 | 7,400,008 | |
Class F, 5% 5/10/45 (a) | 3,433,000 | 926,910 | |
Series 2012-GCJ9 Class D, 4.7404% 11/10/45 (a)(c) | 4,238,000 | 3,292,009 | |
Series 2013-GC12 Class D, 4.4514% 6/10/46 (a)(c) | 869,000 | 711,167 | |
Series 2013-GC13 Class D, 4.0834% 7/10/46 (a)(c) | 5,470,000 | 3,678,792 | |
Series 2013-GC16: | |||
Class D, 5.3107% 11/10/46 (a)(c) | 3,923,000 | 3,207,696 | |
Class F, 3.5% 11/10/46 (a) | 2,530,000 | 1,652,903 | |
Series 2016-GS2: | |||
Class B, 3.759% 5/10/49 | 1,869,000 | 1,852,772 | |
Class D, 2.753% 5/10/49 (a) | 2,058,050 | 1,245,099 | |
Series 2016-GS3 Class D, 2.62% 10/10/49 (a) | 6,086,000 | 3,983,266 | |
Series 2016-REMZ Class MZB, 7.727% 2/10/21 (a) | 3,902,000 | 3,733,260 | |
Series 2016-RENT: | |||
Class E, 4.0667% 2/10/29 (a)(c) | 8,315,240 | 8,126,556 | |
Class F, 4.0667% 2/10/29 (a)(c) | 8,451,000 | 8,052,574 | |
Series 2017-GS6 Class D, 3.243% 5/10/50 (a) | 4,676,000 | 2,923,207 | |
Series 2019-GC38 Class D, 3% 2/10/52 (a) | 1,162,000 | 680,883 | |
Series 2019-GC39 Class D, 3% 5/10/52 (a) | 2,830,000 | 1,676,934 | |
Series 2019-GC40: | |||
Class D, 3% 7/10/52 (a) | 2,079,000 | 1,271,311 | |
Class DBF, 3.5497% 7/10/52 (a)(c) | 2,523,000 | 2,087,323 | |
Series 2019-GC42: | |||
Class D, 2.8% 9/1/52 (a) | 4,807,000 | 2,485,819 | |
Class E, 2.8% 9/1/52 (a) | 2,519,000 | 1,130,354 | |
Series 2019-GS5 Class C, 4.299% 3/10/50 (c) | 2,499,000 | 2,132,468 | |
Series 2019-GSA1 Class E, 2.8% 11/10/52 (a) | 1,655,000 | 746,080 | |
Series 2020-GC45: | |||
Class D, 2.85% 2/13/53 (a) | 2,289,000 | 1,178,650 | |
Class SWD, 3.2185% 12/13/39 (a) | 1,764,000 | 1,245,080 | |
Series 2020-GC47 Class D, 3.5708% 5/12/53 (a)(c) | 756,000 | 603,541 | |
Hilton U.S.A. Trust: | |||
Series 2016-HHV Class F, 4.1935% 11/5/38 (a)(c) | 5,550,000 | 4,258,508 | |
Series 2016-SFP: | |||
Class D, 4.9269% 11/5/35 (a) | 1,556,000 | 1,482,423 | |
Class F, 6.1552% 11/5/35 (a) | 5,000,000 | 4,259,183 | |
Home Partners of America Trust Series 2019-1: | |||
Class E, 3.604% 9/17/39 (a)�� | 1,565,557 | 1,490,186 | |
Class F, 4.101% 9/17/39 (a) | 254,030 | 224,822 | |
Hudson Yards Mortgage Trust: | |||
Series 2019-30HY Class E, 3.4431% 7/10/39 (a)(c) | 1,947,000 | 1,857,417 | |
Series 2019-55HY Class F, 2.9428% 12/10/41 (a)(c) | 1,617,000 | 1,412,734 | |
IMT Trust Series 2017-APTS: | |||
Class EFL, 1 month U.S. LIBOR + 2.150% 2.3336% 6/15/34 (a)(c)(f) | 1,704,469 | 1,448,227 | |
Class FFL, 1 month U.S. LIBOR + 2.850% 3.0336% 6/15/34 (a)(c)(f) | 699,501 | 580,046 | |
Independence Plaza Trust Series 2018-INDP Class E, 4.996% 7/10/35 (a) | 2,083,000 | 1,972,057 | |
Invitation Homes Trust floater: | |||
Series 2018-SFR3 Class F, 1 month U.S. LIBOR + 2.250% 2.5% 7/17/37 (a)(c)(f) | 459,572 | 412,009 | |
Series 2018-SFR4 Class F, 1 month U.S. LIBOR + 2.200% 2.3821% 1/17/38 (a)(c)(f) | 1,381,000 | 1,222,494 | |
J.P. Morgan Chase Commercial Mortgage Securities Trust Series 2020-NNN Class EFX, 3.972% 1/16/37 (a) | 2,771,000 | 2,572,742 | |
JP Morgan Chase Commercial Mortgage Securities Trust floater: | |||
Series 2018-LAQ Class C, 1 month U.S. LIBOR + 1.600% 1.7836% 6/15/32 (a)(c)(f) | 1,600,422 | 1,399,997 | |
Series 2019-MFP: | |||
Class E, 1 month U.S. LIBOR + 2.160% 2.3436% 7/15/36 (a)(c)(f) | 2,292,000 | 1,938,076 | |
Class F, 1 month U.S. LIBOR + 3.000% 3.1836% 7/15/36 (a)(c)(f) | 777,000 | 618,121 | |
JPMBB Commercial Mortgage Securities Trust: | |||
Series 2014-C23 Class UH5, 4.7094% 9/15/47 (a) | 604,000 | 517,338 | |
Series 2014-C26 Class D, 3.8811% 1/15/48 (a)(c) | 2,329,000 | 1,648,240 | |
Series 2015-C32 Class C, 4.6544% 11/15/48 (c) | 1,500,000 | 1,272,917 | |
JPMCC Commercial Mortgage Securities Trust Series 2016-JP4 Class D, 3.4231% 12/15/49 (a)(c) | 2,418,000 | 1,480,055 | |
JPMDB Commercial Mortgage Securities Trust: | |||
Series 2016-C4 Class D, 3.0895% 12/15/49 (a)(c) | 3,867,000 | 2,114,812 | |
Series 2017-C7 Class D, 3% 10/15/50 (a) | 1,813,000 | 1,217,774 | |
Series 2018-C8 Class D, 3.2441% 6/15/51 (a)(c) | 1,171,000 | 689,147 | |
Series 2019-COR6: | |||
Class D, 2.5% 11/13/52 (a) | 1,354,000 | 668,966 | |
Class E, 2.5% 11/13/52 (a) | 2,582,000 | 1,102,029 | |
JPMorgan Chase Commercial Mortgage Securities Corp. Series 2012-CBX: | |||
Class D, 5.1318% 6/15/45 (a)(c) | 3,373,000 | 2,431,447 | |
Class E, 5.1318% 6/15/45 (a)(c) | 3,206,000 | 1,879,691 | |
Class F, 4% 6/15/45 (a) | 3,743,000 | 1,871,500 | |
Class G 4% 6/15/45 (a) | 4,129,000 | 1,445,150 | |
JPMorgan Chase Commercial Mortgage Securities Trust: | |||
Series 2011-C3: | |||
Class E, 5.6641% 2/15/46 (a)(c) | 3,008,000 | 1,306,549 | |
Class G, 4.409% 2/15/46 (a)(c) | 1,082,000 | 206,094 | |
Class H, 4.409% 2/15/46 (a)(c) | 2,622,000 | 391,263 | |
Series 2011-C4: | |||
Class C, 5.3431% 7/15/46 (a)(c) | 1,664,000 | 1,656,199 | |
Class F, 3.873% 7/15/46 (a) | 494,000 | 439,246 | |
Class H, 3.873% 7/15/46 (a) | 2,683,000 | 2,303,288 | |
Class NR, 3.873% 7/15/46 (a) | 1,322,500 | 986,929 | |
Series 2013-LC11: | |||
Class D, 4.1675% 4/15/46 (c) | 3,677,000 | 2,220,935 | |
Class E, 3.25% 4/15/46 (a)(c) | 104,000 | 57,692 | |
Class F, 3.25% 4/15/46 (a)(c) | 5,894,000 | 2,371,232 | |
Series 2014-DSTY: | |||
Class D, 3.8046% 6/10/27 (a)(c) | 3,213,000 | 321,300 | |
Class E, 3.8046% 6/10/27 (a)(c)(e) | 4,232,000 | 338,560 | |
Series 2015-UES Class F, 3.621% 9/5/32 (a)(c) | 5,089,000 | 4,939,243 | |
Series 2018-AON Class F, 4.6132% 7/5/31 (a)(c) | 2,150,000 | 1,919,739 | |
Series 2019-OSB Class E, 3.7828% 6/5/39 (a)(c) | 2,350,000 | 1,808,123 | |
KNDL 2019-KNSQ Mortgage Trust floater Series 2019-KNSQ Class F, 1 month U.S. LIBOR + 2.000% 2.1836% 5/15/36 (a)(c)(f) | 3,483,000 | 3,172,884 | |
Liberty Street Trust Series 2016-225L Class E, 4.6485% 2/10/36 (a)(c) | 2,063,000 | 1,971,453 | |
Mach One Trust LLC Series 2004-1A Class M, 5.45% 5/28/40 (a)(c) | 40,740 | 40,305 | |
Market Mortgage Trust Series 2020-525M Class F, 2.9406% 2/12/40 (a)(c) | 1,976,000 | 1,671,528 | |
MOFT Trust Series 2020-ABC: | |||
Class D, 3.4767% 2/6/30 (a)(c) | 1,144,000 | 1,013,568 | |
Class E, 3.4767% 2/6/30 (a)(c) | 841,000 | 712,135 | |
Morgan Stanley BAML Trust: | |||
sequential payer Series 2014-C18 Class 300E, 4.6896% 8/15/31 | 1,666,000 | 1,440,833 | |
Series 2012-C5 Class E, 4.6763% 8/15/45 (a)(c) | 889,000 | 741,858 | |
Series 2012-C6 Class D, 4.607% 11/15/45 (a)(c) | 3,633,000 | 3,110,031 | |
Series 2012-C6, Class F, 4.607% 11/15/45 (a)(c) | 1,575,000 | 1,206,454 | |
Series 2013-C12 Class D, 4.7655% 10/15/46 (a)(c) | 3,996,000 | 2,988,563 | |
Series 2013-C13: | |||
Class D, 4.9039% 11/15/46 (a)(c) | 5,150,000 | 3,801,495 | |
Class E, 4.9039% 11/15/46 (a)(c) | 1,666,000 | 1,177,490 | |
Series 2013-C7: | |||
Class D, 4.2375% 2/15/46 (a)(c) | 3,450,000 | 2,426,672 | |
Class E, 4.2375% 2/15/46 (a)(c) | 1,316,000 | 824,903 | |
Series 2013-C8 Class D, 4.0563% 12/15/48 (a)(c) | 1,883,000 | 1,547,832 | |
Series 2013-C9: | |||
Class D, 4.1205% 5/15/46 (a)(c) | 4,440,000 | 3,415,723 | |
Class E, 4.1205% 5/15/46 (a)(c) | 1,594,370 | 1,133,171 | |
Series 2016-C30 Class D, 3% 9/15/49 (a) | 1,565,000 | 945,177 | |
Series 2016-C31 Class D, 3% 11/15/49 (a)(c) | 2,453,000 | 1,383,821 | |
Series 2017-C33 Class D, 3.356% 5/15/50 (a) | 2,932,000 | 1,627,034 | |
Morgan Stanley Capital I Trust: | |||
floater Series 2019-AGLN: | |||
Class F, 1 month U.S. LIBOR + 2.600% 2.7836% 3/15/34 (a)(c)(f) | 1,500,000 | 1,174,734 | |
Class G, 1 month U.S. LIBOR + 3.150% 3.3336% 3/15/34 (a)(c)(f) | 900,000 | 702,510 | |
sequential payer Series 2011-C1 Class F, 4.193% 9/15/47 (a) | 1,886,000 | 1,695,142 | |
Series 1998-CF1 Class G, 7.35% 7/15/32 (a)(c) | 64,016 | 65,298 | |
Series 2011-C2: | |||
Class D, 5.4782% 6/15/44 (a)(c) | 6,083,000 | 3,929,319 | |
Class E, 5.4782% 6/15/44 (a)(c) | 764,000 | 450,476 | |
Class F, 5.4782% 6/15/44 (a)(c) | 3,015,000 | 1,266,300 | |
Series 2011-C3: | |||
Class C, 5.2444% 7/15/49 (a)(c) | 2,061,000 | 1,783,049 | |
Class D, 5.2444% 7/15/49 (a)(c) | 8,074,000 | 6,417,834 | |
Class E, 5.2444% 7/15/49 (a)(c) | 2,610,000 | 1,881,207 | |
Class F, 5.2444% 7/15/49 (a)(c) | 984,000 | 658,651 | |
Class G, 5.2444% 7/15/49 (a)(c) | 3,536,800 | 2,162,856 | |
Series 2012-C4 Class D, 5.419% 3/15/45 (a)(c) | 1,624,000 | 832,912 | |
Series 2015-MS1 Class D, 4.0311% 5/15/48 (a)(c) | 4,300,000 | 3,025,790 | |
Series 2015-UBS8 Class D, 3.18% 12/15/48 (a) | 2,839,000 | 1,681,707 | |
Series 2016-BNK2 Class C, 3% 11/15/49 (a) | 4,506,000 | 2,813,785 | |
Series 2017-CLS Class F, 1 month U.S. LIBOR + 2.600% 2.7836% 11/15/34 (a)(c)(f) | 916,000 | 869,591 | |
Series 2018-MP Class E, 4.276% 7/11/40 (a)(c) | 2,499,000 | 1,730,173 | |
Series 2020-CNP Class D, 2.508% 4/5/42 (a)(c) | 1,043,000 | 831,301 | |
Morgan Stanley Dean Witter Capital I Trust Series 2001-TOP3 Class E, 7.6601% 7/15/33 (a)(c) | 263,215 | 268,559 | |
Motel 6 Trust floater: | |||
Series 2017-M6MZ, Class M, 1 month U.S. LIBOR + 6.920% 7.1101% 8/15/24 (a)(c)(f) | 967,271 | 746,713 | |
Series 2017-MTL6, Class F, 1 month U.S. LIBOR + 4.250% 4.4336% 8/15/34 (a)(c)(f) | 8,997,045 | 7,021,121 | |
MRCD Series 2019-PARK Class G, 2.7175% 12/15/36 (a) | 3,428,000 | 2,916,221 | |
MSCG Trust Series 2016-SNR: | |||
Class D, 6.55% 11/15/34 (a) | 6,879,050 | 6,726,213 | |
Class E, 6.8087% 11/15/34 (a) | 1,727,200 | 1,559,182 | |
MSJP Commercial Securities Mortgage Trust Series 2015-HAUL Class E, 4.851% 9/5/47 (a)(c) | 1,014,000 | 614,635 | |
Natixis Commercial Mortgage Securities Series 2019-10K: | |||
Class E, 4.1346% 5/15/39 (a)(c) | 984,000 | 840,121 | |
Class F, 4.1346% 5/15/39 (a)(c) | 3,014,000 | 2,160,734 | |
Natixis Commercial Mortgage Securities Trust: | |||
floater Series 2018-FL1: | |||
Class WAN1, 1 month U.S. LIBOR + 2.750% 3.564% 6/15/35 (a)(c)(f) | 262,000 | 211,586 | |
Class WAN2, 1 month U.S. LIBOR + 3.750% 4.564% 6/15/35 (a)(c)(f) | 222,000 | 170,940 | |
Series 2018-285M Class F, 3.7904% 11/15/32 (a)(c) | 909,000 | 851,726 | |
Series 2018-TECH: | |||
Class E, 1 month U.S. LIBOR + 2.250% 2.4336% 11/15/34 (a)(c)(f) | 638,000 | 540,767 | |
Class F, 1 month U.S. LIBOR + 3.000% 3.1836% 11/15/34 (a)(c)(f) | 96,000 | 81,212 | |
Class G, 1 month U.S. LIBOR + 4.000% 4.1836% 11/15/34 (a)(c)(f) | 572,000 | 460,067 | |
Series 2019-1776 Class F, 4.2988% 10/15/36 (a) | 3,589,000 | 3,196,315 | |
Series 2020-2PAC: | |||
Class AMZ2, 3.5% 1/15/37 (a)(c) | 1,754,950 | 1,528,096 | |
Class AMZ3, 3.5% 1/15/37 (a)(c) | 822,675 | 669,933 | |
Class MSK3, 3.25% 12/15/36 (a)(c) | 855,550 | 671,471 | |
Progress Residential Series 2019-SFR3 Class F, 3.867% 9/17/36 (a) | 1,228,000 | 1,131,088 | |
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (a) | 1,901,191 | 2,213,842 | |
SG Commercial Mortgage Securities Trust Series 2020-COVE: | |||
Class F, 3.8518% 3/15/37 (a)(c) | 3,105,000 | 2,622,387 | |
Class G, 3.8518% 3/15/37 (a)(c) | 858,000 | 651,574 | |
Sg Commercial Mtg Securities Trust 2019-Pres Series 2019-PREZ Class F, 3.5929% 9/15/39 (a)(c) | 3,206,000 | 2,545,358 | |
TIAA Seasoned Commercial Mortgage Trust Series 2007-C4 Class F, 5.5206% 8/15/39 (c) | 4,452,000 | 4,318,842 | |
UBS Commercial Mortgage Trust: | |||
Series 2012-C1: | |||
Class D, 5.5691% 5/10/45 (a)(c) | 3,272,000 | 2,245,074 | |
Class E, 5% 5/10/45 (a)(c) | 1,911,000 | 978,945 | |
Class F, 5% 5/10/45 (a)(c) | 2,484,000 | 496,800 | |
Series 2018-C8 Class C, 4.7026% 2/15/51 (c) | 756,000 | 669,118 | |
UBS-BAMLL Trust: | |||
Series 12-WRM Class D, 4.238% 6/10/30 (a)(c) | 2,090,000 | 1,765,674 | |
Series 2012-WRM Class C, 4.238% 6/10/30 (a)(c) | 890,000 | 625,861 | |
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class C, 6.0504% 1/10/45 (a)(c) | 672,000 | 539,011 | |
Wells Fargo Commercial Mortgage Trust: | |||
floater Series 2020-SOP Class E, 1 month U.S. LIBOR + 2.710% 2.8936% 1/15/35 (a)(c)(f) | 1,066,000 | 889,820 | |
Series 2010-C1 Class XB, 0.5329% 11/15/43 (a)(c)(d) | 21,422,254 | 25,765 | |
Series 2012-LC5: | |||
Class D, 4.7593% 10/15/45 (a)(c) | 6,116,000 | 5,661,202 | |
Class E, 4.7593% 10/15/45 (a)(c) | 1,051,000 | 894,384 | |
Class F, 4.7593% 10/15/45 (a)(c) | 588,000 | 453,181 | |
Series 2015-NXS4: | |||
Class D, 3.6694% 12/15/48 (c) | 1,834,000 | 1,374,863 | |
Class E, 3.6694% 12/15/48 (a)(c) | 2,047,000 | 1,178,361 | |
Series 2016-BNK1 Class D, 3% 8/15/49 (a) | 1,526,000 | 810,842 | |
Series 2016-C35 Class D, 3.142% 7/15/48 (a) | 5,461,000 | 2,491,533 | |
Series 2016-NXS6 Class D, 3.059% 11/15/49 (a) | 4,250,000 | 2,491,207 | |
Series 2017-RB1 Class D, 3.401% 3/15/50 (a) | 1,824,000 | 1,060,719 | |
WF-RBS Commercial Mortgage Trust: | |||
sequential payer Series 2011-C4I Class G, 5% 6/15/44 (e) | 1,252,600 | 192,921 | |
Series 2011-C3: | |||
Class D, 5.6803% 3/15/44 (a)(c) | 5,103,000 | 2,188,010 | |
Class E, 5% 3/15/44 (a) | 1,258,000 | 289,427 | |
Class F, 5% 3/15/44 (a) | 2,421,350 | 117,942 | |
Series 2011-C4: | |||
Class D, 5.221% 6/15/44 (a)(c) | 1,616,000 | 1,224,415 | |
Class E, 5.221% 6/15/44 (a)(c) | 1,274,000 | 549,646 | |
Series 2011-C5: | |||
Class D, 5.656% 11/15/44 (a)(c) | 2,978,000 | 2,675,619 | |
Class E, 5.656% 11/15/44 (a)(c) | 4,203,655 | 3,157,860 | |
Class F, 5.25% 11/15/44 (a)(c) | 3,930,000 | 2,722,001 | |
Class G, 5.25% 11/15/44 (a)(c) | 1,255,150 | 791,264 | |
Series 2012-C6 Class D, 5.5783% 4/15/45 (a)(c) | 2,707,000 | 2,436,360 | |
Series 2012-C7: | |||
Class E, 4.8119% 6/15/45 (a)(c) | 1,514,000 | 607,449 | |
Class F, 4.5% 6/15/45 (a) | 1,470,000 | 367,500 | |
Class G, 4.5% 6/15/45 (a) | 4,218,750 | 632,813 | |
Series 2012-C8: | |||
Class D, 4.8843% 8/15/45 (a)(c) | 833,000 | 724,731 | |
Class E, 4.8843% 8/15/45 (a)(c) | 1,167,000 | 934,640 | |
Series 2013-C11: | |||
Class D, 4.2569% 3/15/45 (a)(c) | 1,865,000 | 1,495,530 | |
Class E, 4.2569% 3/15/45 (a)(c) | 4,999,000 | 3,521,833 | |
Series 2013-C13 Class D, 4.1387% 5/15/45 (a)(c) | 1,499,000 | 1,261,854 | |
Series 2013-C16 Class D, 5.0325% 9/15/46 (a)(c) | 668,000 | 370,035 | |
Series 2013-UBS1 Class D, 4.7372% 3/15/46 (a)(c) | 2,638,000 | 2,125,619 | |
Worldwide Plaza Trust Series 2017-WWP Class F, 3.5955% 11/10/36 (a)(c) | 4,695,000 | 3,884,645 | |
WP Glimcher Mall Trust Series 2015-WPG: | |||
Class PR1, 3.516% 6/5/35 (a)(c) | 1,638,000 | 1,235,229 | |
Class PR2, 3.516% 6/5/35 (a)(c) | 4,354,000 | 3,209,465 | |
TOTAL COMMERCIAL MORTGAGE SECURITIES | |||
(Cost $660,193,822) | 521,398,903 | ||
Shares | Value | ||
Common Stocks - 0.4% | |||
Homebuilders/Real Estate - 0.4% | |||
Colony Capital, Inc. | 400,000 | 804,000 | |
iStar Financial, Inc. | 150,000 | 1,639,500 | |
TOTAL COMMON STOCKS | |||
(Cost $3,508,793) | 2,443,500 | ||
Preferred Stocks - 3.0% | |||
Convertible Preferred Stocks - 0.2% | |||
Homebuilders/Real Estate - 0.2% | |||
RLJ Lodging Trust Series A, 1.95% | 70,550 | 1,580,320 | |
Nonconvertible Preferred Stocks - 2.8% | |||
Diversified Financial Services - 0.6% | |||
AGNC Investment Corp. Series E 6.50% (c) | 116,492 | 2,608,256 | |
MFA Financial, Inc. Series B, 7.50% | 80,525 | 1,271,490 | |
3,879,746 | |||
Homebuilders/Real Estate - 2.2% | |||
American Homes 4 Rent Series D, 6.50% | 85,500 | 2,218,725 | |
Capstead Mortgage Corp. Series E, 7.50% | 87,175 | 1,989,334 | |
Colony Capital, Inc.: | |||
Series H, 7.125% | 76,200 | 1,162,812 | |
Series I, 7.15% | 71,600 | 1,076,148 | |
Dynex Capital, Inc. Series C 6.90% (c) | 51,407 | 1,143,806 | |
National Storage Affiliates Trust Series A, 6.00% | 37,975 | 1,018,110 | |
Rexford Industrial Realty, Inc. Series B, 5.875% | 91,475 | 2,372,862 | |
Taubman Centers, Inc. Series J, 6.50% | 55,202 | 1,253,085 | |
UMH Properties, Inc. Series C, 6.75% | 98,998 | 2,348,797 | |
14,583,679 | |||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 18,463,425 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $22,567,234) | 20,043,745 | ||
Principal Amount | Value | ||
Bank Loan Obligations - 4.4% | |||
Air Transportation - 0.3% | |||
Hanjin International Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 2.6736% 10/18/20 (c)(f)(h) | 2,120,000 | 1,823,200 | |
Diversified Financial Services - 1.4% | |||
Extell Boston 5.154% 8/31/21 (c)(e)(h) | 1,766,302 | 1,766,302 | |
Veritas-B Junior Mezz C LLC 10.48% 2/6/21 (c)(e)(h) | 7,602,000 | 7,433,236 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 9,199,538 | ||
Homebuilders/Real Estate - 1.8% | |||
Aragon Junior Mezzanine 1 month U.S. LIBOR + 6.000% 7.25% 1/15/25 (c)(e)(f)(h) | 2,450,000 | 2,437,750 | |
DTZ U.S. Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.9236% 8/21/25 (c)(f)(h) | 1,645,175 | 1,534,126 | |
Invitation Homes Operating Par Tranche B, term loan 3 month U.S. LIBOR + 1.700% 1.8738% 2/6/22 (c)(f)(h) | 4,165,000 | 3,935,925 | |
iStar Financial, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.98% 6/28/23 (c)(f)(h) | 3,781,001 | 3,606,130 | |
Realogy Group LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3% 2/8/25 (c)(f)(h) | 93,700 | 83,172 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 11,597,103 | ||
Hotels - 0.4% | |||
Playa Resorts Holding BV Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.75% 4/27/24 (c)(f)(h) | 927,825 | 776,923 | |
Ryman Hospitality Properties, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 2.18% 5/11/24 (c)(f)(h) | 1,712,606 | 1,606,647 | |
TOTAL HOTELS | 2,383,570 | ||
Services - 0.3% | |||
Airbnb, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 7.500% 8.5% 4/17/25 (c)(f)(h) | 355,000 | 360,769 | |
CoreCivic, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 12/18/24 (c)(f)(h) | 2,103,375 | 1,956,139 | |
Lineage Logistics Holdings, LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4% 2/27/25 (c)(f)(h) | 0 | 0 | |
TOTAL SERVICES | 2,316,908 | ||
Telecommunications - 0.2% | |||
SBA Senior Finance II, LLC Tranche B, term loan 3 month U.S. LIBOR + 1.750% 1.93% 4/11/25 (c)(f)(h) | 1,636,023 | 1,589,167 | |
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $30,305,180) | 28,909,486 | ||
Preferred Securities - 0.0% | |||
Homebuilders/Real Estate - 0.0% | |||
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (a)(e) | 3,000,000 | 60,000 | |
Crest Dartmouth Street 2003-1 Ltd. Series 2003-1A Class PS, 6/28/38 (a)(e) | 3,100,000 | 310 | |
TOTAL PREFERRED SECURITIES | |||
(Cost $6,004,704) | 60,310 | ||
Shares | Value | ||
Money Market Funds - 0.5% | |||
Fidelity Cash Central Fund 0.11% (i) | |||
(Cost $3,456,923) | 3,456,232 | 3,456,923 | |
TOTAL INVESTMENT IN SECURITIES - 99.1% | |||
(Cost $812,178,483) | 650,229,920 | ||
NET OTHER ASSETS (LIABILITIES) - 0.9% | 5,968,493 | ||
NET ASSETS - 100% | $656,198,413 |
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 $558,911,515 or 85.2% of net assets.
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(c) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(d) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period.
(e) Level 3 security
(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) 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 $37,131 or 0.0% of net assets.
(h) 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.
(i) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Fannie Mae REMIC Trust Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B4, 3.9106% 6/25/43 | 9/29/03 | $59,407 |
Fannie Mae REMIC Trust Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B5, 3.9106% 6/25/43 | 9/29/03 | $227 |
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 | $289,520 |
Total | $289,520 |
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 May 31, 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: | ||||
Financials | $7,012,886 | $7,012,886 | $-- | $-- |
Real Estate | 15,474,359 | 13,894,039 | 1,580,320 | -- |
Corporate Bonds | 31,306,077 | -- | 31,306,077 | -- |
Asset-Backed Securities | 42,557,680 | -- | 42,556,358 | 1,322 |
Collateralized Mortgage Obligations | 53,296 | -- | 10,233 | 43,063 |
Commercial Mortgage Securities | 521,398,903 | -- | 520,867,422 | 531,481 |
Bank Loan Obligations | 28,909,486 | -- | 17,272,198 | 11,637,288 |
Preferred Securities | 60,310 | -- | -- | 60,310 |
Money Market Funds | 3,456,923 | 3,456,923 | -- | -- |
Total Investments in Securities: | $650,229,920 | $24,363,848 | $613,592,608 | $12,273,464 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Bank Loan Obligations | |
Beginning Balance | $14,253,974 |
Net Realized Gain (Loss) on Investment Securities | (436) |
Net Unrealized Gain (Loss) on Investment Securities | (315,185) |
Cost of Purchases | 2,449,966 |
Proceeds of Sales | (581,009) |
Amortization/Accretion | (88,322) |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (4,081,700) |
Ending Balance | $11,637,288 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2020 | $(315,185) |
Other Investments in Securities | |
Beginning Balance | 135,213 |
Net Realized Gain (Loss) on Investment Securities | (58,938) |
Net Unrealized Gain (Loss) on Investment Securities | (1,874,242) |
Cost of Purchases | 336,677 |
Proceeds of Sales | (21,271) |
Amortization/Accretion | (358,225) |
Transfers into Level 3 | 2,476,962 |
Transfers out of Level 3 | -- |
Ending Balance | $636,176 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2020 | $(1,919,620) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2020 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $808,721,560) | $646,772,997 | |
Fidelity Central Funds (cost $3,456,923) | 3,456,923 | |
Total Investment in Securities (cost $812,178,483) | $650,229,920 | |
Receivable for investments sold | 12,476,533 | |
Dividends receivable | 58,265 | |
Interest receivable | 3,205,622 | |
Distributions receivable from Fidelity Central Funds | 2,418 | |
Prepaid expenses | 162 | |
Other receivables | 252 | |
Total assets | 665,973,172 | |
Liabilities | ||
Payable to custodian bank | $4,608,329 | |
Payable for investments purchased | ||
Regular delivery | 2,915,904 | |
Delayed delivery | 1,555,000 | |
Distributions payable | 186,110 | |
Accrued management fee | 385,541 | |
Other affiliated payables | 33,420 | |
Other payables and accrued expenses | 90,455 | |
Total liabilities | 9,774,759 | |
Net Assets | $656,198,413 | |
Net Assets consist of: | ||
Paid in capital | $834,671,690 | |
Total accumulated earnings (loss) | (178,473,277) | |
Net Assets | $656,198,413 | |
Net Asset Value, offering price and redemption price per share ($656,198,413 ÷ 94,842,400 shares) | $6.92 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2020 | ||
Investment Income | ||
Dividends | $751,844 | |
Interest | 17,559,306 | |
Income from Fidelity Central Funds | 289,520 | |
Total income | 18,600,670 | |
Expenses | ||
Management fee | $2,691,500 | |
Transfer agent fees | 57,556 | |
Accounting fees and expenses | 170,198 | |
Custodian fees and expenses | 9,108 | |
Independent trustees' fees and expenses | 2,285 | |
Audit | 97,496 | |
Legal | 1,091 | |
Miscellaneous | 3,585 | |
Total expenses before reductions | 3,032,819 | |
Expense reductions | (4,977) | |
Total expenses after reductions | 3,027,842 | |
Net investment income (loss) | 15,572,828 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (10,322,959) | |
Fidelity Central Funds | 2,775 | |
Total net realized gain (loss) | (10,320,184) | |
Change in net unrealized appreciation (depreciation) on investment securities | (167,086,835) | |
Net gain (loss) | (177,407,019) | |
Net increase (decrease) in net assets resulting from operations | $(161,834,191) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $15,572,828 | $35,127,955 |
Net realized gain (loss) | (10,320,184) | 807,480 |
Change in net unrealized appreciation (depreciation) | (167,086,835) | 26,266,392 |
Net increase (decrease) in net assets resulting from operations | (161,834,191) | 62,201,827 |
Distributions to shareholders | (16,584,858) | (35,999,475) |
Share transactions | ||
Proceeds from sales of shares | 65,582,500 | 130,445,698 |
Reinvestment of distributions | 14,697,653 | 30,268,155 |
Cost of shares redeemed | (67,185,968) | (98,384,669) |
Net increase (decrease) in net assets resulting from share transactions | 13,094,185 | 62,329,184 |
Total increase (decrease) in net assets | (165,324,864) | 88,531,536 |
Net Assets | ||
Beginning of period | 821,523,277 | 732,991,741 |
End of period | $656,198,413 | $821,523,277 |
Other Information | ||
Shares | ||
Sold | 8,870,042 | 14,895,476 |
Issued in reinvestment of distributions | 1,880,433 | 3,499,304 |
Redeemed | (9,538,314) | (11,621,345) |
Net increase (decrease) | 1,212,161 | 6,773,435 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Real Estate High Income Fund
Six months ended May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.77 | $8.44 | $8.60 | $8.51 | $8.80 | $8.99 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .163 | .418 | .417 | .433 | .451 | .539 |
Net realized and unrealized gain (loss) | (1.839) | .338 | (.148) | .064 | (.343) | (.190) |
Total from investment operations | (1.676) | .756 | .269 | .497 | .108 | .349 |
Distributions from net investment income | (.174) | (.426) | (.429) | (.407) | (.398) | (.462) |
Distributions from net realized gain | – | – | – | – | – | (.050) |
Tax return of capital | – | – | – | – | – | (.027) |
Total distributions | (.174) | (.426) | (.429) | (.407) | (.398) | (.539) |
Net asset value, end of period | $6.92 | $8.77 | $8.44 | $8.60 | $8.51 | $8.80 |
Total ReturnB,C | (19.33)% | 9.15% | 3.23% | 5.94% | 1.26% | 3.96% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | .79%F | .80% | .80% | .80% | .80% | .80% |
Expenses net of fee waivers, if any | .79%F | .80% | .80% | .80% | .80% | .80% |
Expenses net of all reductions | .79%F | .79% | .80% | .80% | .80% | .80% |
Net investment income (loss) | 4.06%F | 4.83% | 4.91% | 5.03% | 5.23% | 6.05% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $656,198 | $821,523 | $732,992 | $1,103,106 | $1,033,232 | $1,052,173 |
Portfolio turnover rateG | 26%F | 26% | 13%H | 18% | 19% | 20% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Annualized
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
1. Organization.
Fidelity Real Estate 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.
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".
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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. Asset backed securities, collateralized mortgage obligations, and commercial mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, 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 equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
The Fund attempts to obtain prices from one or more third party pricing vendors or brokers. For certain securities, independent prices may be unavailable, unreliable or limited to a single third party pricing vendor or broker, and the values reflected may differ from the amount that would be realized if the securities were sold.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Bank Loan Obligations | $ 11,637,288 | Discounted cash flow | Yield | 5.2% - 25.8% / 23.8% | Decrease |
Preferred Securities | $ 60,310 | Recovery value | Recovery value | 0.0% - 2.0% / 2.0% | Increase |
Commercial Mortgage Securities | $ 531,481 | Recovery value | Recovery value | 8.0% - 15.4% / 10.7% | Increase |
Asset-Backed Securities | $ 1,322 | Recovery value | Recovery value | 0.0% | Increase |
Collateralized Mortgage Obligations | $ 43,063 | Discounted cash flow | Yield | 7.0% | Decrease |
Spread | 3.0% - 6.0% / 5.8% | Decrease | |||
Recovery value | Recovery value | 0.0% - 2.2% / 2.0% | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. For certain lower credit quality securitized assets that have contractual cash flows (for example, asset backed securities, collateralized mortgage obligations and commercial mortgage-backed securities), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. 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.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
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 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 certain conversion ratio adjustments, passive foreign investment companies (PFIC), market discount, capital loss carryforwards and expiring capital loss carryforwards.
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 | $4,726,303 |
Gross unrealized depreciation | (166,676,751) |
Net unrealized appreciation (depreciation) | $(161,950,448) |
Tax cost | $812,180,368 |
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 | $(2,208,419) |
Long-term | (4,056,145) |
Total capital loss carryforward | $(6,264,564) |
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 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 and U.S. government securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Real Estate High Income Fund | 156,452,197 | 94,531,470 |
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 .60% 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 .70% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives an asset-based fee of .02% of the Fund's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
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 Real Estate High Income 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 Real Estate High Income Fund | $546 |
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 Real Estate High Income Fund | $1,016 |
During the period, there were no borrowings on this line of credit.
7. 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 $498 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 by $3,651.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $828.
8. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, three otherwise unaffiliated shareholders were the owners of record of approximately 57% of the total outstanding shares of the Fund.
9. Credit and Liquidity Risk.
The Fund invests a significant portion of its assets in below investment grade securities with contractual cash flows, such as asset backed securities, collateralized mortgage obligations and commercial mortgage backed securities. As these securities have a higher degree of sensitivity to changes in economic conditions, including real estate values, the risk of default is higher, and the liquidity and/or value of such securities may be adversely affected.
10. 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 and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2019 to May 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Actual | .79% | $1,000.00 | $806.70 | $3.57 |
Hypothetical-C | $1,000.00 | $1,021.05 | $3.99 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Real Estate 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 noted that there were portfolio management changes for the fund in March 2019 and October 2019. The Board will continue to monitor closely the fund's performance, taking into account the portfolio management changes.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 Real Estate High Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613095736.jpg)
Fidelity Real Estate High Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613095927.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.
REHI-SANN-0720
1.723505.121
Fidelity Advisor® Dividend Growth Fund
Semi-Annual Report
May 31, 2020
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
Exxon Mobil Corp. | 5.0 |
Altria Group, Inc. | 4.0 |
Cisco Systems, Inc. | 3.9 |
Bank of America Corp. | 3.8 |
Comcast Corp. Class A | 3.6 |
Wells Fargo & Co. | 3.4 |
JPMorgan Chase & Co. | 3.2 |
UnitedHealth Group, Inc. | 3.1 |
General Electric Co. | 2.8 |
Apple, Inc. | 2.2 |
35.0 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Financials | 23.9 |
Information Technology | 13.9 |
Industrials | 12.9 |
Consumer Discretionary | 10.8 |
Energy | 10.3 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020* | ||
Stocks | 99.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
* Foreign investments - 4.8%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 8.0% | |||
Media - 8.0% | |||
Comcast Corp. Class A | 766,050 | $30,336 | |
Discovery Communications, Inc. Class A (a)(b) | 163,400 | 3,554 | |
Interpublic Group of Companies, Inc. | 725,000 | 12,405 | |
Liberty Media Corp. Liberty SiriusXM Series A (a) | 50,500 | 1,843 | |
Nexstar Broadcasting Group, Inc. Class A | 10,600 | 883 | |
Omnicom Group, Inc. | 213,600 | 11,703 | |
ViacomCBS, Inc. Class B | 329,900 | 6,842 | |
67,566 | |||
CONSUMER DISCRETIONARY - 10.8% | |||
Auto Components - 2.1% | |||
BorgWarner, Inc. | 297,100 | 9,552 | |
Lear Corp. | 80,800 | 8,569 | |
18,121 | |||
Automobiles - 1.8% | |||
General Motors Co. | 454,900 | 11,773 | |
Harley-Davidson, Inc. (b) | 144,200 | 3,077 | |
14,850 | |||
Distributors - 1.0% | |||
LKQ Corp. (a) | 297,000 | 8,156 | |
Diversified Consumer Services - 1.1% | |||
H&R Block, Inc. (b) | 538,700 | 9,158 | |
Household Durables - 2.6% | |||
Lennar Corp. Class A | 123,900 | 7,491 | |
Whirlpool Corp. (b) | 122,500 | 14,923 | |
22,414 | |||
Textiles, Apparel & Luxury Goods - 2.2% | |||
Hanesbrands, Inc. (b) | 208,800 | 2,059 | |
PVH Corp. | 175,900 | 7,998 | |
Tapestry, Inc. | 619,800 | 8,429 | |
18,486 | |||
TOTAL CONSUMER DISCRETIONARY | 91,185 | ||
CONSUMER STAPLES - 5.6% | |||
Household Products - 1.6% | |||
Energizer Holdings, Inc. | 123,500 | 5,419 | |
Spectrum Brands Holdings, Inc. | 161,985 | 7,665 | |
13,084 | |||
Tobacco - 4.0% | |||
Altria Group, Inc. | 873,473 | 34,109 | |
TOTAL CONSUMER STAPLES | 47,193 | ||
ENERGY - 10.3% | |||
Energy Equipment & Services - 0.5% | |||
Halliburton Co. | 347,100 | 4,078 | |
Oil, Gas & Consumable Fuels - 9.8% | |||
Chevron Corp. | 90,300 | 8,281 | |
Equinor ASA sponsored ADR (b) | 639,400 | 9,329 | |
Exxon Mobil Corp. | 939,722 | 42,730 | |
Phillips 66 Co. | 191,700 | 15,002 | |
Valero Energy Corp. | 109,300 | 7,284 | |
82,626 | |||
TOTAL ENERGY | 86,704 | ||
FINANCIALS - 23.9% | |||
Banks - 17.1% | |||
Bank of America Corp. | 1,338,803 | 32,292 | |
Citigroup, Inc. | 139,400 | 6,679 | |
Comerica, Inc. | 75,800 | 2,755 | |
Fifth Third Bancorp | 422,300 | 8,188 | |
JPMorgan Chase & Co. | 275,793 | 26,837 | |
M&T Bank Corp. | 95,200 | 10,059 | |
PNC Financial Services Group, Inc. | 131,800 | 15,030 | |
U.S. Bancorp | 386,800 | 13,755 | |
Wells Fargo & Co. | 1,086,890 | 28,770 | |
144,365 | |||
Capital Markets - 0.8% | |||
Raymond James Financial, Inc. | 99,800 | 6,914 | |
Consumer Finance - 2.8% | |||
American Express Co. | 17,500 | 1,664 | |
Discover Financial Services | 333,900 | 15,864 | |
Synchrony Financial | 316,600 | 6,449 | |
23,977 | |||
Diversified Financial Services - 1.6% | |||
Berkshire Hathaway, Inc. Class B (a) | 71,600 | 13,288 | |
Insurance - 1.6% | |||
American International Group, Inc. | 172,900 | 5,197 | |
The Travelers Companies, Inc. | 76,100 | 8,141 | |
13,338 | |||
TOTAL FINANCIALS | 201,882 | ||
HEALTH CARE - 10.1% | |||
Biotechnology - 0.1% | |||
AbbVie, Inc. | 9,600 | 890 | |
Health Care Equipment & Supplies - 0.3% | |||
Envista Holdings Corp. (a) | 123,100 | 2,602 | |
Health Care Providers & Services - 8.5% | |||
Anthem, Inc. | 53,100 | 15,617 | |
Cigna Corp. | 87,700 | 17,305 | |
CVS Health Corp. | 185,500 | 12,163 | |
UnitedHealth Group, Inc. | 85,997 | 26,216 | |
71,301 | |||
Pharmaceuticals - 1.2% | |||
Bayer AG | 116,300 | 7,950 | |
Bristol-Myers Squibb Co. | 38,200 | 2,281 | |
10,231 | |||
TOTAL HEALTH CARE | 85,024 | ||
INDUSTRIALS - 12.9% | |||
Aerospace & Defense - 0.4% | |||
The Boeing Co. | 24,300 | 3,544 | |
Air Freight & Logistics - 1.8% | |||
FedEx Corp. | 41,500 | 5,418 | |
United Parcel Service, Inc. Class B | 97,800 | 9,752 | |
15,170 | |||
Electrical Equipment - 0.3% | |||
AMETEK, Inc. | 26,100 | 2,394 | |
Industrial Conglomerates - 2.8% | |||
General Electric Co. | 3,526,100 | 23,166 | |
Machinery - 5.2% | |||
Allison Transmission Holdings, Inc. | 130,143 | 4,909 | |
Caterpillar, Inc. | 28,600 | 3,436 | |
Cummins, Inc. | 67,200 | 11,397 | |
Fortive Corp. | 49,700 | 3,031 | |
PACCAR, Inc. | 166,400 | 12,290 | |
Snap-On, Inc. | 70,600 | 9,156 | |
44,219 | |||
Professional Services - 1.0% | |||
Nielsen Holdings PLC | 406,700 | 5,649 | |
Robert Half International, Inc. | 55,000 | 2,791 | |
8,440 | |||
Road & Rail - 0.9% | |||
Knight-Swift Transportation Holdings, Inc. Class A (b) | 132,200 | 5,501 | |
Ryder System, Inc. | 71,000 | 2,432 | |
7,933 | |||
Trading Companies & Distributors - 0.5% | |||
HD Supply Holdings, Inc. (a) | 135,205 | 4,287 | |
TOTAL INDUSTRIALS | 109,153 | ||
INFORMATION TECHNOLOGY - 13.9% | |||
Communications Equipment - 3.9% | |||
Cisco Systems, Inc. | 687,400 | 32,871 | |
IT Services - 2.0% | |||
Amdocs Ltd. | 110,700 | 6,892 | |
Cognizant Technology Solutions Corp. Class A | 182,200 | 9,657 | |
16,549 | |||
Software - 4.3% | |||
Microsoft Corp. | 76,500 | 14,019 | |
Oracle Corp. | 231,900 | 12,469 | |
SS&C Technologies Holdings, Inc. | 168,000 | 9,726 | |
36,214 | |||
Technology Hardware, Storage & Peripherals - 3.7% | |||
Apple, Inc. | 57,824 | 18,385 | |
HP, Inc. | 874,000 | 13,232 | |
31,617 | |||
TOTAL INFORMATION TECHNOLOGY | 117,251 | ||
MATERIALS - 3.0% | |||
Chemicals - 3.0% | |||
DuPont de Nemours, Inc. | 150,300 | 7,625 | |
LyondellBasell Industries NV Class A | 179,100 | 11,419 | |
Valvoline, Inc. | 212,000 | 3,890 | |
W.R. Grace & Co. | 55,000 | 2,871 | |
25,805 | |||
REAL ESTATE - 0.6% | |||
Equity Real Estate Investment Trusts (REITs) - 0.6% | |||
National Retail Properties, Inc. | 64,700 | 2,031 | |
Realty Income Corp. | 30,800 | 1,704 | |
Simon Property Group, Inc. | 27,100 | 1,564 | |
5,299 | |||
TOTAL COMMON STOCKS | |||
(Cost $868,087) | 837,062 | ||
Money Market Funds - 2.9% | |||
Fidelity Cash Central Fund 0.11% (c) | 5,628,749 | 5,630 | |
Fidelity Securities Lending Cash Central Fund 0.10% (c)(d) | 19,205,997 | 19,208 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $24,838) | 24,838 | ||
TOTAL INVESTMENT IN SECURITIES - 102.0% | |||
(Cost $892,925) | 861,900 | ||
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (16,887) | ||
NET ASSETS - 100% | $845,013 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $31 |
Fidelity Securities Lending Cash Central Fund | 85 |
Total | $116 |
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 May 31, 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 | $67,566 | $67,566 | $-- | $-- |
Consumer Discretionary | 91,185 | 91,185 | -- | -- |
Consumer Staples | 47,193 | 47,193 | -- | -- |
Energy | 86,704 | 86,704 | -- | -- |
Financials | 201,882 | 201,882 | -- | -- |
Health Care | 85,024 | 77,074 | 7,950 | -- |
Industrials | 109,153 | 109,153 | -- | -- |
Information Technology | 117,251 | 117,251 | -- | -- |
Materials | 25,805 | 25,805 | -- | -- |
Real Estate | 5,299 | 5,299 | -- | -- |
Money Market Funds | 24,838 | 24,838 | -- | -- |
Total Investments in Securities: | $861,900 | $853,950 | $7,950 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $18,516) — See accompanying schedule: Unaffiliated issuers (cost $868,087) | $837,062 | |
Fidelity Central Funds (cost $24,838) | 24,838 | |
Total Investment in Securities (cost $892,925) | $861,900 | |
Cash | 139 | |
Receivable for fund shares sold | 486 | |
Dividends receivable | 3,170 | |
Distributions receivable from Fidelity Central Funds | 18 | |
Other receivables | 1 | |
Total assets | 865,714 | |
Liabilities | ||
Payable for fund shares redeemed | $869 | |
Accrued management fee | 188 | |
Distribution and service plan fees payable | 222 | |
Other affiliated payables | 150 | |
Other payables and accrued expenses | 63 | |
Collateral on securities loaned | 19,209 | |
Total liabilities | 20,701 | |
Net Assets | $845,013 | |
Net Assets consist of: | ||
Paid in capital | $876,404 | |
Total accumulated earnings (loss) | (31,391) | |
Net Assets | $845,013 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($329,433 ÷ 24,124 shares)(a) | $13.66 | |
Maximum offering price per share (100/94.25 of $13.66) | $14.49 | |
Class M: | ||
Net Asset Value and redemption price per share ($292,112 ÷ 21,519 shares)(a) | $13.57 | |
Maximum offering price per share (100/96.50 of $13.57) | $14.06 | |
Class C: | ||
Net Asset Value and offering price per share ($53,954 ÷ 4,221 shares)(a) | $12.78 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($149,871 ÷ 10,276 shares) | $14.58 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($19,643 ÷ 1,322 shares) | $14.86 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $13,056 | |
Income from Fidelity Central Funds (including $85 from security lending) | 116 | |
Total income | 13,172 | |
Expenses | ||
Management fee | ||
Basic fee | $2,447 | |
Performance adjustment | (1,013) | |
Transfer agent fees | 862 | |
Distribution and service plan fees | 1,561 | |
Accounting fees | 155 | |
Custodian fees and expenses | 22 | |
Independent trustees' fees and expenses | 3 | |
Registration fees | 38 | |
Audit | 33 | |
Legal | 7 | |
Interest | 2 | |
Miscellaneous | 26 | |
Total expenses before reductions | 4,143 | |
Expense reductions | (43) | |
Total expenses after reductions | 4,100 | |
Net investment income (loss) | 9,072 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (2,369) | |
Fidelity Central Funds | (1) | |
Total net realized gain (loss) | (2,370) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (174,214) | |
Assets and liabilities in foreign currencies | 2 | |
Total change in net unrealized appreciation (depreciation) | (174,212) | |
Net gain (loss) | (176,582) | |
Net increase (decrease) in net assets resulting from operations | $(167,510) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $9,072 | $13,879 |
Net realized gain (loss) | (2,370) | 33,318 |
Change in net unrealized appreciation (depreciation) | (174,212) | 70,218 |
Net increase (decrease) in net assets resulting from operations | (167,510) | 117,415 |
Distributions to shareholders | (46,867) | (142,301) |
Share transactions - net increase (decrease) | 5,406 | 49,687 |
Total increase (decrease) in net assets | (208,971) | 24,801 |
Net Assets | ||
Beginning of period | 1,053,984 | 1,029,183 |
End of period | $845,013 | $1,053,984 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Dividend Growth Fund Class A
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.06 | $17.97 | $20.01 | $16.90 | $17.35 | $19.65 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .15 | .24B | .28 | .25 | .21 | .20 |
Net realized and unrealized gain (loss) | (2.77) | 1.39 | .58 | 3.07 | .46 | (.34)C |
Total from investment operations | (2.62) | 1.63 | .86 | 3.32 | .67 | (.14) |
Distributions from net investment income | (.25) | (.27) | (.26) | (.21) | (.18) | (.19) |
Distributions from net realized gain | (.54) | (2.27) | (2.65) | – | (.94) | (1.96) |
Total distributions | (.78)D | (2.54) | (2.90)E | (.21) | (1.12) | (2.16)F |
Net asset value, end of period | $13.66 | $17.06 | $17.97 | $20.01 | $16.90 | $17.35 |
Total ReturnG,H,I | (16.18)% | 12.84% | 4.69% | 19.81% | 4.36% | (.41)%C |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | .81%L | .82% | .84% | .85% | .90% | 1.01% |
Expenses net of fee waivers, if any | .81%L | .82% | .84% | .85% | .90% | 1.00% |
Expenses net of all reductions | .81%L | .81% | .83% | .84% | .90% | 1.00% |
Net investment income (loss) | 2.07%L | 1.53%B | 1.58% | 1.36% | 1.33% | 1.13% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $329 | $421 | $353 | $376 | $355 | $356 |
Portfolio turnover rateM | 104%L | 75% | 110% | 73% | 31% | 56% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.28%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.51)%
D Total distributions of $.78 per share is comprised of distributions from net investment income of $.247 and distributions from net realized gain of $.536 per share.
E Total distributions of $2.90 per share is comprised of distributions from net investment income of $.255 and distributions from net realized gain of $2.648 per share.
F Total distributions of $2.16 per share is comprised of distributions from net investment income of $.193 and distributions from net realized gain of $1.962 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Dividend Growth Fund Class M
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $16.94 | $17.85 | $19.90 | $16.81 | $17.25 | $19.55 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .13 | .20B | .24 | .20 | .17 | .15 |
Net realized and unrealized gain (loss) | (2.76) | 1.39 | .57 | 3.05 | .47 | (.34)C |
Total from investment operations | (2.63) | 1.59 | .81 | 3.25 | .64 | (.19) |
Distributions from net investment income | (.21) | (.23) | (.21) | (.16) | (.14) | (.15) |
Distributions from net realized gain | (.54) | (2.27) | (2.65) | – | (.94) | (1.96) |
Total distributions | (.74)D | (2.50) | (2.86) | (.16) | (1.08) | (2.11) |
Net asset value, end of period | $13.57 | $16.94 | $17.85 | $19.90 | $16.81 | $17.25 |
Total ReturnE,F,G | (16.32)% | 12.59% | 4.38% | 19.50% | 4.15% | (.67)%C |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.06%J | 1.07% | 1.09% | 1.09% | 1.14% | 1.24% |
Expenses net of fee waivers, if any | 1.05%J | 1.07% | 1.09% | 1.09% | 1.14% | 1.24% |
Expenses net of all reductions | 1.05%J | 1.06% | 1.08% | 1.09% | 1.14% | 1.24% |
Net investment income (loss) | 1.83%J | 1.28%B | 1.33% | 1.11% | 1.09% | .89% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $292 | $376 | $363 | $374 | $351 | $372 |
Portfolio turnover rateK | 104%J | 75% | 110% | 73% | 31% | 56% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.77)%
D Total distributions of $.74 per share is comprised of distributions from net investment income of $.206 and distributions from net realized gain of $.536 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Dividend Growth Fund Class C
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.92 | $16.92 | $19.00 | $16.06 | $16.53 | $18.82 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .09 | .11B | .14 | .10 | .09 | .06 |
Net realized and unrealized gain (loss) | (2.61) | 1.29 | .54 | 2.92 | .44 | (.32)C |
Total from investment operations | (2.52) | 1.40 | .68 | 3.02 | .53 | (.26) |
Distributions from net investment income | (.08) | (.14) | (.12) | (.08) | (.06) | (.06) |
Distributions from net realized gain | (.54) | (2.27) | (2.65) | – | (.94) | (1.96) |
Total distributions | (.62) | (2.40)D | (2.76)E | (.08) | (1.00) | (2.03)F |
Net asset value, end of period | $12.78 | $15.92 | $16.92 | $19.00 | $16.06 | $16.53 |
Total ReturnG,H,I | (16.56)% | 11.98% | 3.86% | 18.88% | 3.58% | (1.16)%C |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.61%L | 1.62% | 1.61% | 1.61% | 1.66% | 1.76% |
Expenses net of fee waivers, if any | 1.61%L | 1.61% | 1.61% | 1.61% | 1.66% | 1.76% |
Expenses net of all reductions | 1.60%L | 1.61% | 1.60% | 1.61% | 1.66% | 1.76% |
Net investment income (loss) | 1.27%L | .73%B | .81% | .59% | .57% | .37% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $54 | $71 | $137 | $160 | $154 | $167 |
Portfolio turnover rateM | 104%L | 75% | 110% | 73% | 31% | 56% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .48%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (1.26)%
D Total distributions of $2.40 per share is comprised of distributions from net investment income of $.136 and distributions from net realized gain of $2.268 per share.
E Total distributions of $2.76 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $2.648 per share.
F Total distributions of $2.03 per share is comprised of distributions from net investment income of $.064 and distributions from net realized gain of $1.962 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the contingent deferred sales charge.
J Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Dividend Growth Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.18 | $18.97 | $20.97 | $17.70 | $18.12 | $20.42 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .18 | .29B | .34 | .30 | .26 | .25 |
Net realized and unrealized gain (loss) | (2.96) | 1.50 | .61 | 3.21 | .49 | (.35)C |
Total from investment operations | (2.78) | 1.79 | .95 | 3.51 | .75 | (.10) |
Distributions from net investment income | (.28) | (.31) | (.30) | (.24) | (.22) | (.24) |
Distributions from net realized gain | (.54) | (2.27) | (2.65) | – | (.94) | (1.96) |
Total distributions | (.82) | (2.58) | (2.95) | (.24) | (1.17)D | (2.20) |
Net asset value, end of period | $14.58 | $18.18 | $18.97 | $20.97 | $17.70 | $18.12 |
Total ReturnE,F | (16.13)% | 13.13% | 4.93% | 20.07% | 4.60% | (.14)%C |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .57%I | .58% | .60% | .61% | .67% | .76% |
Expenses net of fee waivers, if any | .57%I | .58% | .60% | .61% | .67% | .76% |
Expenses net of all reductions | .56%I | .57% | .59% | .60% | .66% | .76% |
Net investment income (loss) | 2.31%I | 1.77%B | 1.82% | 1.59% | 1.57% | 1.37% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $150 | $173 | $166 | $170 | $123 | $125 |
Portfolio turnover rateJ | 104%I | 75% | 110% | 73% | 31% | 56% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.52%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.24)%
D Total distributions of $1.17 per share is comprised of distributions from net investment income of $.224 and distributions from net realized gain of $.941 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Dividend Growth Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.51 | $19.28 | $21.27 | $17.95 | $18.36 | $20.44 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .19 | .32B | .38 | .34 | .29 | .28 |
Net realized and unrealized gain (loss) | (3.00) | 1.52 | .62 | 3.24 | .50 | (.35)C |
Total from investment operations | (2.81) | 1.84 | 1.00 | 3.58 | .79 | (.07) |
Distributions from net investment income | (.31) | (.34) | (.34) | (.26) | (.26) | (.05) |
Distributions from net realized gain | (.54) | (2.27) | (2.65) | – | (.94) | (1.96) |
Total distributions | (.84)D | (2.61) | (2.99) | (.26) | (1.20) | (2.01) |
Net asset value, end of period | $14.86 | $18.51 | $19.28 | $21.27 | $17.95 | $18.36 |
Total ReturnE,F | (15.99)% | 13.25% | 5.10% | 20.21% | 4.80% | (.01)%C |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .42%I | .43% | .45% | .45% | .49% | .59% |
Expenses net of fee waivers, if any | .42%I | .43% | .45% | .45% | .49% | .59% |
Expenses net of all reductions | .41%I | .42% | .44% | .44% | .49% | .59% |
Net investment income (loss) | 2.46%I | 1.92%B | 1.98% | 1.76% | 1.74% | 1.54% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $20 | $13 | $10 | $7 | $2 | $9 |
Portfolio turnover rateJ | 104%I | 75% | 110% | 73% | 31% | 56% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.67%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.11)%
D Total distributions of $.84 per share is comprised of distributions from net investment income of $.308 and distributions from net realized gain of $.536 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Dividend Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $97,689 |
Gross unrealized depreciation | (133,823) |
Net unrealized appreciation (depreciation) | $(36,134) |
Tax cost | $898,034 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Dividend Growth Fund | 477,596 | 512,302 |
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 .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 S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .31% 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% | $454 | $8 |
Class M | .25% | .25% | 806 | 7 |
Class C | .75% | .25% | 301 | 27 |
$1,561 | $42 |
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 | $46 |
Class M | 7 |
Class C(a) | 3 |
$56 |
(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 | $341 | .19 |
Class M | 291 | .18 |
Class C | 71 | .24 |
Class I | 156 | .20 |
Class Z | 3 | .04 |
$862 |
(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 Dividend Growth 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 Dividend Growth Fund | $19 |
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, there 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 Dividend Growth Fund | Borrower | $6,585 | 1.84% | $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 Dividend Growth Fund | $1 |
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 $8. 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 $30 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 $2.
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.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Distributions to shareholders | ||
Class A | $19,240 | $49,025 |
Class M | 16,418 | 50,352 |
Class C | 2,743 | 19,304 |
Class I | 7,861 | 22,201 |
Class Z | 605 | 1,419 |
Total | $46,867 | $142,301 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
Class A | ||||
Shares sold | 1,737 | 6,265 | $24,505 | $95,563 |
Reinvestment of distributions | 1,076 | 3,375 | 18,007 | 45,399 |
Shares redeemed | (3,358) | (4,633) | (47,708) | (71,279) |
Net increase (decrease) | (545) | 5,007 | $(5,196) | $69,683 |
Class M | ||||
Shares sold | 2,177 | 3,142 | $30,438 | $47,904 |
Reinvestment of distributions | 972 | 3,701 | 16,182 | 49,551 |
Shares redeemed | (3,811) | (4,970) | (55,193) | (75,690) |
Net increase (decrease) | (662) | 1,873 | $(8,573) | $21,765 |
Class C | ||||
Shares sold | 431 | 847 | $5,817 | $12,122 |
Reinvestment of distributions | 168 | 1,492 | 2,648 | 18,858 |
Shares redeemed | (832) | (5,981) | (11,126) | (85,655) |
Net increase (decrease) | (233) | (3,642) | $(2,661) | $(54,675) |
Class I | ||||
Shares sold | 2,310 | 2,088 | $35,245 | $34,451 |
Reinvestment of distributions | 411 | 1,453 | 7,332 | 20,776 |
Shares redeemed | (1,985) | (2,739) | (29,846) | (45,066) |
Net increase (decrease) | 736 | 802 | $12,731 | $10,161 |
Class Z | ||||
Shares sold | 903 | 267 | $13,755 | $4,519 |
Reinvestment of distributions | 30 | 90 | 545 | 1,311 |
Shares redeemed | (327) | (184) | (5,195) | (3,077) |
Net increase (decrease) | 606 | 173 | $9,105 | $2,753 |
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 (December 1, 2019 to May 31, 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 December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Class A | .81% | |||
Actual | $1,000.00 | $838.20 | $3.72 | |
Hypothetical-C | $1,000.00 | $1,020.95 | $4.09 | |
Class M | 1.05% | |||
Actual | $1,000.00 | $836.80 | $4.82 | |
Hypothetical-C | $1,000.00 | $1,019.75 | $5.30 | |
Class C | 1.61% | |||
Actual | $1,000.00 | $834.40 | $7.38 | |
Hypothetical-C | $1,000.00 | $1,016.95 | $8.12 | |
Class I | .57% | |||
Actual | $1,000.00 | $838.70 | $2.62 | |
Hypothetical-C | $1,000.00 | $1,022.15 | $2.88 | |
Class Z | .42% | |||
Actual | $1,000.00 | $840.10 | $1.93 | |
Hypothetical-C | $1,000.00 | $1,022.90 | $2.12 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Dividend Growth Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 2017 and January 2018. The Board will continue to monitor closely the fund's performance, taking into account the portfolio management changes.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 Dividend Growth Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613058855.jpg)
Fidelity Advisor Dividend Growth Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-20-003219/img613059302.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.
ADGF-SANN-0720
1.721239.121
Fidelity Advisor® Series Small Cap Fund
Semi-Annual Report
May 31, 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.
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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
BJ's Wholesale Club Holdings, Inc. | 2.4 |
Chemed Corp. | 2.1 |
Generac Holdings, Inc. | 1.8 |
Charles River Laboratories International, Inc. | 1.7 |
SYNNEX Corp. | 1.6 |
ICON PLC | 1.5 |
Nomad Foods Ltd. | 1.5 |
First Citizens Bancshares, Inc. | 1.4 |
Murphy U.S.A., Inc. | 1.4 |
Tetra Tech, Inc. | 1.4 |
16.8 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Information Technology | 19.8 |
Industrials | 17.9 |
Health Care | 17.8 |
Financials | 14.1 |
Consumer Discretionary | 10.6 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020* | ||
Stocks | 98.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.1% |
* Foreign investments - 11.7%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 3.0% | |||
Media - 2.7% | |||
Cogeco Communications, Inc. | 41,400 | $3,091,657 | |
Gray Television, Inc. (a) | 305,300 | 4,255,882 | |
The New York Times Co. Class A | 84,400 | 3,311,012 | |
10,658,551 | |||
Wireless Telecommunication Services - 0.3% | |||
Boingo Wireless, Inc. (a) | 84,900 | 1,163,130 | |
TOTAL COMMUNICATION SERVICES | 11,821,681 | ||
CONSUMER DISCRETIONARY - 10.6% | |||
Diversified Consumer Services - 0.6% | |||
Grand Canyon Education, Inc. (a) | 24,200 | 2,361,678 | |
Hotels, Restaurants & Leisure - 2.2% | |||
Churchill Downs, Inc. | 39,600 | 5,253,732 | |
Hilton Grand Vacations, Inc. (a) | 49,056 | 1,056,666 | |
Planet Fitness, Inc. (a)(b) | 41,000 | 2,649,830 | |
8,960,228 | |||
Household Durables - 3.8% | |||
Cavco Industries, Inc. (a) | 21,600 | 4,108,104 | |
Taylor Morrison Home Corp. (a) | 198,400 | 3,835,072 | |
TopBuild Corp. (a) | 32,600 | 3,738,894 | |
TRI Pointe Homes, Inc. (a) | 255,200 | 3,654,464 | |
15,336,534 | |||
Leisure Products - 1.1% | |||
Brunswick Corp. | 18,300 | 1,006,683 | |
Clarus Corp. | 139,097 | 1,460,519 | |
YETI Holdings, Inc. (a) | 56,000 | 1,797,600 | |
4,264,802 | |||
Multiline Retail - 0.9% | |||
Ollie's Bargain Outlet Holdings, Inc. (a)(b) | 41,500 | 3,795,175 | |
Specialty Retail - 1.4% | |||
Murphy U.S.A., Inc. (a) | 49,100 | 5,700,510 | |
Textiles, Apparel & Luxury Goods - 0.6% | |||
Carter's, Inc. | 27,100 | 2,328,161 | |
TOTAL CONSUMER DISCRETIONARY | 42,747,088 | ||
CONSUMER STAPLES - 3.9% | |||
Food & Staples Retailing - 2.4% | |||
BJ's Wholesale Club Holdings, Inc. (a)(b) | 268,920 | 9,681,121 | |
Food Products - 1.5% | |||
Nomad Foods Ltd. (a) | 282,300 | 5,979,114 | |
TOTAL CONSUMER STAPLES | 15,660,235 | ||
ENERGY - 1.1% | |||
Energy Equipment & Services - 0.3% | |||
Cactus, Inc. | 62,800 | 1,198,224 | |
Oil, Gas & Consumable Fuels - 0.8% | |||
Hess Midstream LP | 98,799 | 1,918,677 | |
Rattler Midstream LP | 148,700 | 1,250,567 | |
3,169,244 | |||
TOTAL ENERGY | 4,367,468 | ||
FINANCIALS - 14.1% | |||
Banks - 5.6% | |||
ConnectOne Bancorp, Inc. | 265,576 | 3,893,344 | |
First Citizens Bancshares, Inc. | 15,200 | 5,852,000 | |
First Interstate Bancsystem, Inc. | 101,000 | 3,156,250 | |
Independent Bank Corp., Massachusetts | 38,200 | 2,653,754 | |
Old National Bancorp, Indiana | 96,900 | 1,316,871 | |
ServisFirst Bancshares, Inc. | 102,700 | 3,582,176 | |
Trico Bancshares | 68,900 | 1,954,693 | |
22,409,088 | |||
Capital Markets - 3.0% | |||
Blucora, Inc. (a) | 119,171 | 1,447,928 | |
LPL Financial | 74,900 | 5,347,111 | |
Morningstar, Inc. | 33,364 | 5,115,368 | |
11,910,407 | |||
Consumer Finance - 1.3% | |||
First Cash Financial Services, Inc. | 74,100 | 5,169,957 | |
Insurance - 2.2% | |||
Enstar Group Ltd. (a) | 15,641 | 2,227,278 | |
Hastings Group Holdings PLC (c) | 914,452 | 2,078,001 | |
Primerica, Inc. | 38,700 | 4,397,868 | |
Selectquote, Inc. | 4,100 | 112,832 | |
8,815,979 | |||
Thrifts & Mortgage Finance - 2.0% | |||
Essent Group Ltd. | 144,300 | 4,769,115 | |
WSFS Financial Corp. | 126,200 | 3,491,954 | |
8,261,069 | |||
TOTAL FINANCIALS | 56,566,500 | ||
HEALTH CARE - 17.8% | |||
Biotechnology - 4.4% | |||
Acceleron Pharma, Inc. (a) | 31,300 | 3,093,379 | |
ADC Therapeutics SA (a) | 10,500 | 387,975 | |
Agios Pharmaceuticals, Inc. (a) | 14,900 | 770,926 | |
Black Diamond Therapeutics, Inc. (a) | 2,500 | 97,625 | |
FibroGen, Inc. (a) | 48,400 | 1,618,496 | |
G1 Therapeutics, Inc. (a) | 11,800 | 200,246 | |
Global Blood Therapeutics, Inc. (a) | 19,800 | 1,384,416 | |
Immunomedics, Inc. (a) | 13,300 | 446,747 | |
Kezar Life Sciences, Inc. (a) | 50,300 | 239,931 | |
Kura Oncology, Inc. (a) | 59,100 | 1,010,019 | |
Mirati Therapeutics, Inc. (a) | 15,700 | 1,557,283 | |
Passage Bio, Inc. | 37,900 | 834,937 | |
Principia Biopharma, Inc. (a) | 23,400 | 1,495,026 | |
Revolution Medicines, Inc. | 32,800 | 1,007,616 | |
TG Therapeutics, Inc. (a) | 59,100 | 1,102,215 | |
Viela Bio, Inc. | 36,500 | 1,711,850 | |
Xenon Pharmaceuticals, Inc. (a) | 57,700 | 790,490 | |
17,749,177 | |||
Health Care Equipment & Supplies - 3.1% | |||
Integra LifeSciences Holdings Corp. (a) | 67,700 | 3,527,847 | |
Masimo Corp. (a) | 19,400 | 4,659,686 | |
Tandem Diabetes Care, Inc. (a) | 45,400 | 3,775,010 | |
TransMedics Group, Inc. | 37,300 | 492,733 | |
12,455,276 | |||
Health Care Providers & Services - 3.8% | |||
Andlauer Healthcare Group, Inc. | 19,000 | 467,393 | |
Chemed Corp. | 17,700 | 8,469,627 | |
Encompass Health Corp. | 47,600 | 3,486,700 | |
LHC Group, Inc. (a) | 17,824 | 2,896,578 | |
15,320,298 | |||
Health Care Technology - 1.3% | |||
HMS Holdings Corp. (a) | 92,100 | 2,877,204 | |
Phreesia, Inc. | 78,400 | 2,298,688 | |
5,175,892 | |||
Life Sciences Tools & Services - 4.0% | |||
10X Genomics, Inc. (a) | 7,400 | 576,978 | |
Charles River Laboratories International, Inc. (a) | 38,100 | 6,845,046 | |
ICON PLC (a) | 36,300 | 6,114,735 | |
PRA Health Sciences, Inc. (a) | 23,400 | 2,421,900 | |
15,958,659 | |||
Pharmaceuticals - 1.2% | |||
Arvinas Holding Co. LLC (a) | 18,900 | 628,803 | |
Horizon Pharma PLC (a) | 58,700 | 2,977,851 | |
IMARA, Inc. | 16,500 | 552,585 | |
Nektar Therapeutics (a) | 33,500 | 726,950 | |
4,886,189 | |||
TOTAL HEALTH CARE | 71,545,491 | ||
INDUSTRIALS - 17.9% | |||
Aerospace & Defense - 0.5% | |||
Vectrus, Inc. (a) | 35,800 | 1,966,136 | |
Building Products - 1.7% | |||
Armstrong World Industries, Inc. | 30,000 | 2,261,700 | |
Masonite International Corp. (a) | 19,200 | 1,274,496 | |
Patrick Industries, Inc. | 66,781 | 3,463,930 | |
7,000,126 | |||
Commercial Services & Supplies - 1.4% | |||
Tetra Tech, Inc. | 71,400 | 5,633,460 | |
Construction & Engineering - 0.7% | |||
EMCOR Group, Inc. | 42,100 | 2,675,455 | |
Electrical Equipment - 2.8% | |||
Atkore International Group, Inc. (a) | 142,400 | 3,822,016 | |
Generac Holdings, Inc. (a) | 65,300 | 7,265,931 | |
11,087,947 | |||
Machinery - 6.5% | |||
Douglas Dynamics, Inc. | 74,300 | 2,714,922 | |
ESCO Technologies, Inc. | 35,600 | 2,940,916 | |
ITT, Inc. | 84,200 | 4,858,340 | |
Luxfer Holdings PLC sponsored | 234,200 | 3,276,458 | |
Oshkosh Corp. | 78,100 | 5,609,142 | |
Rexnord Corp. | 110,700 | 3,332,070 | |
SPX Flow, Inc. (a) | 93,210 | 3,223,202 | |
25,955,050 | |||
Professional Services - 3.7% | |||
ASGN, Inc. (a) | 82,100 | 5,056,539 | |
FTI Consulting, Inc. (a) | 46,000 | 5,541,160 | |
ICF International, Inc. | 65,076 | 4,267,684 | |
14,865,383 | |||
Trading Companies & Distributors - 0.6% | |||
GMS, Inc. (a) | 126,500 | 2,591,985 | |
TOTAL INDUSTRIALS | 71,775,542 | ||
INFORMATION TECHNOLOGY - 19.8% | |||
Electronic Equipment & Components - 5.1% | |||
CDW Corp. | 37,700 | 4,181,307 | |
ePlus, Inc. (a) | 50,613 | 3,730,684 | |
Insight Enterprises, Inc. (a) | 68,598 | 3,516,333 | |
Napco Security Technolgies, Inc. (a)(b) | 114,241 | 2,595,556 | |
SYNNEX Corp. | 61,213 | 6,528,366 | |
20,552,246 | |||
IT Services - 6.2% | |||
Booz Allen Hamilton Holding Corp. Class A | 63,800 | 5,088,688 | |
Endava PLC ADR (a) | 31,001 | 1,490,528 | |
Euronet Worldwide, Inc. (a) | 19,300 | 1,828,289 | |
Genpact Ltd. | 135,500 | 4,871,225 | |
Hackett Group, Inc. | 47,007 | 648,227 | |
KBR, Inc. | 144,000 | 3,376,800 | |
Maximus, Inc. | 35,900 | 2,585,518 | |
Repay Holdings Corp. (a)(b) | 208,500 | 4,803,840 | |
24,693,115 | |||
Semiconductors & Semiconductor Equipment - 2.6% | |||
Entegris, Inc. | 71,600 | 4,287,408 | |
Onto Innovation, Inc. (a) | 99,500 | 3,092,460 | |
Synaptics, Inc. (a) | 49,252 | 3,138,337 | |
10,518,205 | |||
Software - 5.9% | |||
Everbridge, Inc. (a) | 25,100 | 3,671,126 | |
Five9, Inc. (a) | 38,700 | 4,032,540 | |
j2 Global, Inc. | 61,984 | 4,853,347 | |
Pegasystems, Inc. | 27,900 | 2,653,848 | |
Pluralsight, Inc. (a) | 121,200 | 2,524,596 | |
Proofpoint, Inc. (a) | 27,600 | 3,209,052 | |
RealPage, Inc. (a) | 27,100 | 1,837,922 | |
Zensar Technologies Ltd. | 939,388 | 1,079,107 | |
23,861,538 | |||
TOTAL INFORMATION TECHNOLOGY | 79,625,104 | ||
MATERIALS - 3.9% | |||
Chemicals - 2.0% | |||
Ashland Global Holdings, Inc. | 42,900 | 2,881,164 | |
Element Solutions, Inc. (a) | 479,600 | 5,222,844 | |
8,104,008 | |||
Construction Materials - 0.7% | |||
Eagle Materials, Inc. | 42,000 | 2,803,920 | |
Containers & Packaging - 1.2% | |||
Aptargroup, Inc. | 43,400 | 4,834,326 | |
TOTAL MATERIALS | 15,742,254 | ||
REAL ESTATE - 3.8% | |||
Equity Real Estate Investment Trusts (REITs) - 2.5% | |||
Americold Realty Trust | 131,000 | 4,678,010 | |
CoreSite Realty Corp. | 22,000 | 2,746,040 | |
EPR Properties | 44,900 | 1,417,493 | |
Essential Properties Realty Trust, Inc. | 94,792 | 1,292,963 | |
10,134,506 | |||
Real Estate Management & Development - 1.3% | |||
CBRE Group, Inc. (a) | 43,500 | 1,913,130 | |
Cushman & Wakefield PLC (a) | 311,533 | 3,193,213 | |
5,106,343 | |||
TOTAL REAL ESTATE | 15,240,849 | ||
UTILITIES - 2.0% | |||
Electric Utilities - 0.6% | |||
Portland General Electric Co. | 55,000 | 2,591,050 | |
Gas Utilities - 0.7% | |||
Star Gas Partners LP | 375,378 | 2,965,486 | |
Multi-Utilities - 0.7% | |||
Telecom Plus PLC | 147,096 | 2,637,755 | |
TOTAL UTILITIES | 8,194,291 | ||
TOTAL COMMON STOCKS | |||
(Cost $345,759,704) | 393,286,503 | ||
Money Market Funds - 6.0% | |||
Fidelity Cash Central Fund 0.11% (d) | 3,807,433 | 3,808,194 | |
Fidelity Securities Lending Cash Central Fund 0.10% (d)(e) | 20,092,701 | 20,094,710 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $23,902,826) | 23,902,904 | ||
Equity Funds - 1.0% | |||
Small Blend Funds - 1.0% | |||
iShares Russell 2000 Index ETF (b) | |||
(Cost $4,138,807) | 28,600 | 3,972,540 | |
TOTAL INVESTMENT IN SECURITIES - 104.9% | |||
(Cost $373,801,337) | 421,161,947 | ||
NET OTHER ASSETS (LIABILITIES) - (4.9)% | (19,526,888) | ||
NET ASSETS - 100% | $401,635,059 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,078,001 or 0.5% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $19,423 |
Fidelity Securities Lending Cash Central Fund | 10,936 |
Total | $30,359 |
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 May 31, 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 | $11,821,681 | $11,821,681 | $-- | $-- |
Consumer Discretionary | 42,747,088 | 42,747,088 | -- | -- |
Consumer Staples | 15,660,235 | 15,660,235 | -- | -- |
Energy | 4,367,468 | 4,367,468 | -- | -- |
Financials | 56,566,500 | 56,566,500 | -- | -- |
Health Care | 71,545,491 | 71,545,491 | -- | -- |
Industrials | 71,775,542 | 71,775,542 | -- | -- |
Information Technology | 79,625,104 | 79,625,104 | -- | -- |
Materials | 15,742,254 | 15,742,254 | -- | -- |
Real Estate | 15,240,849 | 15,240,849 | -- | -- |
Utilities | 8,194,291 | 8,194,291 | -- | -- |
Money Market Funds | 23,902,904 | 23,902,904 | -- | -- |
Equity Funds | 3,972,540 | 3,972,540 | -- | -- |
Total Investments in Securities: | $421,161,947 | $421,161,947 | $-- | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.3% |
United Kingdom | 3.2% |
Bermuda | 3.0% |
Ireland | 2.2% |
British Virgin Islands | 1.5% |
Canada | 1.4% |
Others (Individually Less Than 1%) | 0.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $20,269,123) — See accompanying schedule: Unaffiliated issuers (cost $349,898,511) | $397,259,043 | |
Fidelity Central Funds (cost $23,902,826) | 23,902,904 | |
Total Investment in Securities (cost $373,801,337) | $421,161,947 | |
Cash | 96,702 | |
Foreign currency held at value (cost $24) | 24 | |
Receivable for investments sold | 3,987,594 | |
Receivable for fund shares sold | 175,482 | |
Dividends receivable | 132,879 | |
Distributions receivable from Fidelity Central Funds | 2,805 | |
Total assets | 425,557,433 | |
Liabilities | ||
Payable for investments purchased | $100,172 | |
Payable for fund shares redeemed | 3,721,062 | |
Other payables and accrued expenses | 6,940 | |
Collateral on securities loaned | 20,094,200 | |
Total liabilities | 23,922,374 | |
Net Assets | $401,635,059 | |
Net Assets consist of: | ||
Paid in capital | $366,041,969 | |
Total accumulated earnings (loss) | 35,593,090 | |
Net Assets | $401,635,059 | |
Net Asset Value, offering price and redemption price per share ($401,635,059 ÷ 38,953,943 shares) | $10.31 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $1,851,453 | |
Income from Fidelity Central Funds (including $10,936 from security lending) | 30,359 | |
Total income | 1,881,812 | |
Expenses | ||
Custodian fees and expenses | $7,997 | |
Independent trustees' fees and expenses | 1,223 | |
Proxy | 755 | |
Commitment fees | 545 | |
Total expenses | 10,520 | |
Net investment income (loss) | 1,871,292 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (11,122,783) | |
Fidelity Central Funds | 1,161 | |
Foreign currency transactions | (1,913) | |
Total net realized gain (loss) | (11,123,535) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (33,126,437) | |
Assets and liabilities in foreign currencies | 9 | |
Total change in net unrealized appreciation (depreciation) | (33,126,428) | |
Net gain (loss) | (44,249,963) | |
Net increase (decrease) in net assets resulting from operations | $(42,378,671) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,871,292 | $3,908,248 |
Net realized gain (loss) | (11,123,535) | 9,485,337 |
Change in net unrealized appreciation (depreciation) | (33,126,428) | 50,095,930 |
Net increase (decrease) in net assets resulting from operations | (42,378,671) | 63,489,515 |
Distributions to shareholders | (13,815,486) | (41,752,285) |
Share transactions | ||
Proceeds from sales of shares | 26,035,504 | 85,084,631 |
Reinvestment of distributions | 13,815,486 | 41,752,285 |
Cost of shares redeemed | (51,493,271) | (120,256,244) |
Net increase (decrease) in net assets resulting from share transactions | (11,642,281) | 6,580,672 |
Total increase (decrease) in net assets | (67,836,438) | 28,317,902 |
Net Assets | ||
Beginning of period | 469,471,497 | 441,153,595 |
End of period | $401,635,059 | $469,471,497 |
Other Information | ||
Shares | ||
Sold | 2,621,141 | 7,779,011 |
Issued in reinvestment of distributions | 1,196,146 | 4,659,853 |
Redeemed | (4,923,239) | (11,054,068) |
Net increase (decrease) | (1,105,952) | 1,384,796 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Series Small Cap Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.72 | $11.41 | $12.72 | $10.93 | $11.26 | $11.19 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .09 | .10 | .08 | .09B | .03C |
Net realized and unrealized gain (loss) | (1.11) | 1.32 | (.58) | 1.81 | .10 | .38 |
Total from investment operations | (1.06) | 1.41 | (.48) | 1.89 | .19 | .41 |
Distributions from net investment income | (.07) | (.11)D | (.07) | (.10) | (.03) | (.02) |
Distributions from net realized gain | (.28) | (.99)D | (.76) | – | (.50) | (.32) |
Total distributions | (.35) | (1.10) | (.83) | (.10) | (.52)E | (.34) |
Net asset value, end of period | $10.31 | $11.72 | $11.41 | $12.72 | $10.93 | $11.26 |
Total ReturnF,G | (9.38)% | 15.27% | (4.02)% | 17.37% | 1.96% | 3.81% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .01%J | .01% | .01% | .41% | .97% | 1.04% |
Expenses net of fee waivers, if any | .01%J | .01% | .01% | .41% | .97% | 1.03% |
Expenses net of all reductions | .01%J | .01% | - %K | .40% | .97% | 1.02% |
Net investment income (loss) | .91%J | .89% | .83% | .72% | .85%B | .30%C |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $401,635 | $469,471 | $441,154 | $463,095 | $451,368 | $483,566 |
Portfolio turnover rateL | 41%J | 76% | 82% | 88% | 90% | 35% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .06%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $.52 per share is comprised of distributions from net investment income of $.027 and distributions from net realized gain of $.496 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
J Annualized
K Amount represents less than .005%.
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
1. Organization.
Fidelity Advisor Series Small Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. Shares are offered only to certain other Fidelity funds and Fidelity managed 529 plans. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
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".
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.
ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $82,334,944 |
Gross unrealized depreciation | (35,530,909) |
Net unrealized appreciation (depreciation) | $46,804,035 |
Tax cost | $374,357,912 |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Series Small Cap Fund | 83,683,961 | 107,349,585 |
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 does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Fidelity Advisor Series Small Cap Fund | $4,618 |
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 Commitment fees on the Statement of Operations, and are as follows:
Amount | |
Fidelity Advisor Series Small Cap Fund | $545 |
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 $1,164. 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. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds and accounts managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
9. 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 and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2019 to May 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Actual | .01% | $1,000.00 | $906.20 | $.05 |
Hypothetical-C | $1,000.00 | $1,024.95 | $.05 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (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 Series Small Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 considering whether to renew the Advisory Contracts for the fund, the Board considered all factors it believed relevant and 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 the fact that no fee is payable under the management contract was fair and reasonable.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.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.Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative 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.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. The Board reviewed the fund's absolute investment performance, as well as the fund's relative investment performance, but did not consider performance to be a material factor in its decision to renew the fund's Advisory Contracts, as the fund is not publicly offered as a stand-alone investment product. In this regard, the Board noted that the fund is designed to offer an investment option for other investment companies managed by Fidelity and ultimately to enhance the performance of those investment companies. The Board noted that there was a portfolio management change for the fund in July 2019. The Board will continue to monitor closely the fund's performance, taking into account the portfolio management changeBased on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered that the fund does not pay FMR a management fee for investment advisory services. The Board also noted that FMR undertakes to pay all operating expenses of the fund with certain exceptions.In connection with the renewal of the Advisory Contracts, the Board also approved amendments to the management contract for the fund to clarify that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program. The Board considered that the amendments would not change the services provided to the fund or the party responsible for making such payments under the current management contract.The Board further considered that FMR has contractually agreed to reimburse the fund to the extent that total operating expenses, with certain exceptions, as a percentage of its average net assets, exceed 0.014% through March 31, 2023.Based on its review, the Board considered that the fund does not pay a management fee and concluded that the fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds.PricewaterhouseCoopers LLP (PwC), auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of the fund profitability information and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's mutual fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the funds' business. The Board noted that changes to fall-out benefits year-over-year reflect business developments at Fidelity's various businesses. The Board considered that a joint ad hoc committee created by it and the boards of other Fidelity funds had recently been established, and met periodically, to evaluate potential fall-out benefits (PFOB Committee). The Board noted that the PFOB Committee, among other things: (i) discussed the legal framework surrounding potential fall-out benefits; (ii) reviewed the Board's responsibilities and approach to potential fall-out benefits; and (iii) reviewed practices employed by competitor funds regarding the review of potential fall-out benefits.The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund were not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions.Economies of Scale. The Board concluded that because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions, the realization of economies of scale was not a material factor in the Board's decision to renew the fund's Advisory Contracts.Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) consideration of performance fees for additional funds; (iii) changes in Fidelity's non-fund businesses and the impact of such changes on the funds; (iv) metrics for evaluating index fund and ETF performance and information about ETF trading characteristics; (v) the methodology with respect to evaluating competitive fund data and peer group classifications and fee comparisons; (vi) the expense structures for different funds and classes; (vii) information regarding other accounts managed by Fidelity, including collective investment trusts and separately managed accounts; and (viii) Fidelity's philosophies and strategies for evaluating funds and classes with lower or declining asset levels.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee arrangements are fair and reasonable, and that the fund's Advisory Contracts should be renewed.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.
AXS5-SANN-0720
1.967944.106
Fidelity Advisor® Series Growth Opportunities Fund
Semi-Annual Report
May 31, 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.
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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
Microsoft Corp. | 7.9 |
Amazon.com, Inc. | 6.1 |
Alphabet, Inc. Class C | 4.0 |
Apple, Inc. | 3.9 |
Facebook, Inc. Class A | 3.9 |
Carvana Co. Class A | 2.7 |
Tesla, Inc. | 2.6 |
Uber Technologies, Inc. | 2.0 |
T-Mobile U.S., Inc. | 1.9 |
NVIDIA Corp. | 1.8 |
36.8 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Information Technology | 36.9 |
Consumer Discretionary | 17.8 |
Communication Services | 15.5 |
Health Care | 15.0 |
Industrials | 5.2 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020* | ||
Stocks | 97.1% | |
Convertible Securities | 2.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
* Foreign investments – 14.1%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.1% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 15.5% | |||
Entertainment - 3.1% | |||
Activision Blizzard, Inc. | 33,208 | $2,390,312 | |
Roku, Inc. Class A (a) | 62,931 | 6,891,574 | |
Sea Ltd. ADR (a) | 93,931 | 7,495,694 | |
The Walt Disney Co. | 19,264 | 2,259,667 | |
19,037,247 | |||
Interactive Media & Services - 9.9% | |||
Alphabet, Inc.: | |||
Class A (a) | 6,823 | 9,780,907 | |
Class C (a) | 17,463 | 24,953,230 | |
Facebook, Inc. Class A (a) | 107,500 | 24,197,175 | |
IAC/InterActiveCorp (a) | 6,326 | 1,710,361 | |
Snap, Inc. Class A (a) | 24,400 | 462,136 | |
61,103,809 | |||
Media - 0.6% | |||
Comcast Corp. Class A | 97,519 | 3,861,752 | |
Wireless Telecommunication Services - 1.9% | |||
T-Mobile U.S., Inc. (a) | 119,701 | 11,974,888 | |
TOTAL COMMUNICATION SERVICES | 95,977,696 | ||
CONSUMER DISCRETIONARY - 17.8% | |||
Automobiles - 2.6% | |||
Neutron Holdings, Inc. (b) | 925,066 | 222,016 | |
Tesla, Inc. (a)(c) | 19,021 | 15,882,535 | |
16,104,551 | |||
Diversified Consumer Services - 0.2% | |||
Arco Platform Ltd. Class A (a) | 22,345 | 1,083,286 | |
Hotels, Restaurants & Leisure - 0.3% | |||
Hilton Worldwide Holdings, Inc. | 5,700 | 452,067 | |
McDonald's Corp. | 600 | 111,792 | |
Starbucks Corp. | 17,570 | 1,370,284 | |
1,934,143 | |||
Household Durables - 0.0% | |||
iRobot Corp. (a) | 1,600 | 117,952 | |
Internet & Direct Marketing Retail - 10.8% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 26,708 | 5,538,972 | |
Amazon.com, Inc. (a) | 15,611 | 38,127,838 | |
MakeMyTrip Ltd. (a) | 15,100 | 233,899 | |
Meituan Dianping Class B (a) | 184,935 | 3,522,281 | |
MercadoLibre, Inc. (a) | 1,257 | 1,070,549 | |
Naspers Ltd. Class N | 8,217 | 1,337,670 | |
Pinduoduo, Inc. ADR (a) | 104,664 | 6,998,882 | |
Prosus NV (a) | 14,463 | 1,206,825 | |
The Booking Holdings, Inc. (a) | 2,152 | 3,528,032 | |
Wayfair LLC Class A (a) | 31,086 | 5,332,803 | |
66,897,751 | |||
Specialty Retail - 3.4% | |||
Carvana Co. Class A (a)(c) | 180,362 | 16,770,059 | |
Floor & Decor Holdings, Inc. Class A (a) | 38,636 | 2,009,072 | |
Lowe's Companies, Inc. | 17,071 | 2,225,205 | |
21,004,336 | |||
Textiles, Apparel & Luxury Goods - 0.5% | |||
Allbirds, Inc. (a)(b)(d) | 4,490 | 39,692 | |
lululemon athletica, Inc. (a) | 11,001 | 3,301,345 | |
3,341,037 | |||
TOTAL CONSUMER DISCRETIONARY | 110,483,056 | ||
CONSUMER STAPLES - 0.6% | |||
Food & Staples Retailing - 0.4% | |||
Performance Food Group Co. (a) | 73,024 | 1,946,090 | |
Sysco Corp. | 11,700 | 645,372 | |
2,591,462 | |||
Food Products - 0.2% | |||
Beyond Meat, Inc. (c) | 9,815 | 1,259,166 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Class B (a)(b)(d) | 709 | 78,578 | |
TOTAL CONSUMER STAPLES | 3,929,206 | ||
ENERGY - 1.3% | |||
Oil, Gas & Consumable Fuels - 1.3% | |||
Reliance Industries Ltd. | 399,989 | 7,747,423 | |
Reliance Industries Ltd. rights (a) | 27,892 | 81,900 | |
7,829,323 | |||
FINANCIALS - 2.5% | |||
Banks - 0.1% | |||
HDFC Bank Ltd. sponsored ADR | 17,320 | 724,496 | |
Capital Markets - 0.9% | |||
BlackRock, Inc. Class A | 2,700 | 1,427,328 | |
Charles Schwab Corp. | 13,024 | 467,692 | |
London Stock Exchange Group PLC | 22,934 | 2,287,506 | |
MSCI, Inc. | 901 | 296,294 | |
Virtu Financial, Inc. Class A | 800 | 19,080 | |
XP, Inc. Class A (a) | 35,800 | 1,086,888 | |
5,584,788 | |||
Consumer Finance - 1.5% | |||
Capital One Financial Corp. | 25,400 | 1,728,216 | |
LendingTree, Inc. (a)(c) | 24,397 | 6,343,708 | |
Synchrony Financial | 68,900 | 1,403,493 | |
9,475,417 | |||
TOTAL FINANCIALS | 15,784,701 | ||
HEALTH CARE - 15.0% | |||
Biotechnology - 5.4% | |||
ACADIA Pharmaceuticals, Inc. (a) | 17,100 | 849,528 | |
Acceleron Pharma, Inc. (a) | 5,000 | 494,150 | |
ADC Therapeutics SA (a) | 7,800 | 288,210 | |
Aimmune Therapeutics, Inc. (a)(c) | 20,319 | 337,499 | |
Alexion Pharmaceuticals, Inc. (a) | 37,785 | 4,530,422 | |
Alnylam Pharmaceuticals, Inc. (a) | 11,363 | 1,537,073 | |
Applied Therapeutics, Inc. (a) | 6,700 | 304,984 | |
Arcutis Biotherapeutics, Inc. (a) | 13,400 | 449,570 | |
Argenx SE ADR (a) | 3,171 | 695,400 | |
Ascendis Pharma A/S sponsored ADR (a) | 7,116 | 1,035,307 | |
BeiGene Ltd. (a) | 7,998 | 101,519 | |
Black Diamond Therapeutics, Inc. (a) | 2,000 | 78,100 | |
Crinetics Pharmaceuticals, Inc. (a) | 40,339 | 659,139 | |
FibroGen, Inc. (a) | 37,936 | 1,268,580 | |
G1 Therapeutics, Inc. (a) | 17,853 | 302,965 | |
Global Blood Therapeutics, Inc. (a) | 4,000 | 279,680 | |
Gritstone Oncology, Inc. (a) | 16,743 | 108,160 | |
Insmed, Inc. (a) | 150,400 | 3,653,216 | |
Intercept Pharmaceuticals, Inc. (a) | 10,063 | 727,152 | |
Keros Therapeutics, Inc. | 8,900 | 255,786 | |
Morphic Holding, Inc. | 17,000 | 353,260 | |
Neurocrine Biosciences, Inc. (a) | 21,036 | 2,624,451 | |
Passage Bio, Inc. | 15,600 | 343,668 | |
Protagonist Therapeutics, Inc. (a) | 3,500 | 57,855 | |
Regeneron Pharmaceuticals, Inc. (a) | 10,924 | 6,694,336 | |
Revolution Medicines, Inc. | 9,200 | 282,624 | |
Sage Therapeutics, Inc. (a) | 5,497 | 196,353 | |
Sarepta Therapeutics, Inc. (a) | 14,547 | 2,215,072 | |
TG Therapeutics, Inc. (a) | 5,800 | 108,170 | |
Vertex Pharmaceuticals, Inc. (a) | 7,249 | 2,087,422 | |
Viela Bio, Inc. | 13,300 | 623,770 | |
Zymeworks, Inc. (a) | 5,800 | 221,096 | |
33,764,517 | |||
Health Care Equipment & Supplies - 4.1% | |||
Atricure, Inc. (a) | 6,500 | 310,765 | |
Becton, Dickinson & Co. | 4,600 | 1,135,878 | |
Boston Scientific Corp. (a) | 139,712 | 5,307,659 | |
DexCom, Inc. (a) | 6,115 | 2,313,366 | |
Insulet Corp. (a) | 12,945 | 2,441,039 | |
Intuitive Surgical, Inc. (a) | 3,872 | 2,245,876 | |
iRhythm Technologies, Inc. (a)(c) | 6,569 | 816,592 | |
Masimo Corp. (a) | 7,194 | 1,727,927 | |
Novocure Ltd. (a) | 30,576 | 2,061,740 | |
Penumbra, Inc. (a) | 15,695 | 2,706,132 | |
SmileDirectClub, Inc. (a)(c) | 267,881 | 2,092,151 | |
TransMedics Group, Inc. (c) | 153,271 | 2,024,710 | |
25,183,835 | |||
Health Care Providers & Services - 3.8% | |||
1Life Healthcare, Inc. (a)(c) | 57,016 | 1,841,617 | |
Centene Corp. (a) | 37,557 | 2,488,151 | |
Cigna Corp. | 18,536 | 3,657,524 | |
Humana, Inc. | 11,793 | 4,842,795 | |
UnitedHealth Group, Inc. | 36,123 | 11,012,097 | |
23,842,184 | |||
Health Care Technology - 0.2% | |||
Inspire Medical Systems, Inc. (a) | 8,300 | 676,782 | |
Veeva Systems, Inc. Class A (a) | 1,300 | 284,531 | |
961,313 | |||
Life Sciences Tools & Services - 0.2% | |||
10X Genomics, Inc. (a) | 2,160 | 168,415 | |
Bruker Corp. | 23,101 | 999,811 | |
1,168,226 | |||
Pharmaceuticals - 1.3% | |||
AstraZeneca PLC sponsored ADR | 11,553 | 630,794 | |
Bristol-Myers Squibb Co. | 16,228 | 969,136 | |
Bristol-Myers Squibb Co. rights (a) | 10,584 | 34,821 | |
IMARA, Inc. | 14,900 | 499,001 | |
Nabriva Therapeutics PLC (a)(c) | 630,352 | 718,601 | |
Nabriva Therapeutics PLC warrants 6/1/22 (a) | 380,833 | 1,812 | |
Nektar Therapeutics (a) | 64,203 | 1,393,205 | |
Roche Holding AG (participation certificate) | 7,866 | 2,730,460 | |
Theravance Biopharma, Inc. (a) | 40,498 | 1,022,575 | |
8,000,405 | |||
TOTAL HEALTH CARE | 92,920,480 | ||
INDUSTRIALS - 4.8% | |||
Aerospace & Defense - 0.1% | |||
Northrop Grumman Corp. | 2,419 | 810,849 | |
Airlines - 0.6% | |||
JetBlue Airways Corp. (a) | 212,061 | 2,135,454 | |
Spirit Airlines, Inc. (a)(c) | 104,657 | 1,355,308 | |
3,490,762 | |||
Construction & Engineering - 0.0% | |||
AECOM (a) | 2,000 | 77,540 | |
Electrical Equipment - 0.6% | |||
Sensata Technologies, Inc. PLC (a) | 3,200 | 114,080 | |
Sunrun, Inc. (a) | 107,088 | 1,788,370 | |
Vestas Wind Systems A/S | 16,138 | 1,648,267 | |
3,550,717 | |||
Machinery - 0.2% | |||
Fortive Corp. | 1,900 | 115,862 | |
Minebea Mitsumi, Inc. | 59,834 | 1,049,155 | |
1,165,017 | |||
Professional Services - 0.3% | |||
Clarivate Analytics PLC (a) | 34,300 | 785,127 | |
TransUnion Holding Co., Inc. | 16,838 | 1,452,951 | |
2,238,078 | |||
Road & Rail - 3.0% | |||
Lyft, Inc. (a) | 190,656 | 5,959,907 | |
Uber Technologies, Inc. | 342,320 | 12,433,062 | |
18,392,969 | |||
TOTAL INDUSTRIALS | 29,725,932 | ||
INFORMATION TECHNOLOGY - 36.7% | |||
Electronic Equipment & Components - 0.4% | |||
CDW Corp. | 2,800 | 310,548 | |
Flextronics International Ltd. (a) | 143,609 | 1,394,443 | |
FLIR Systems, Inc. | 2,600 | 120,120 | |
Jabil, Inc. | 33,200 | 993,344 | |
2,818,455 | |||
IT Services - 8.7% | |||
Alliance Data Systems Corp. | 32,600 | 1,510,358 | |
EPAM Systems, Inc. (a) | 3,653 | 842,528 | |
Fidelity National Information Services, Inc. | 19,913 | 2,764,522 | |
Gartner, Inc. (a) | 600 | 73,020 | |
GDS Holdings Ltd. ADR (a)(c) | 72,346 | 4,123,722 | |
Genpact Ltd. | 40,894 | 1,470,139 | |
Global Payments, Inc. | 16,025 | 2,876,327 | |
GoDaddy, Inc. (a) | 74,598 | 5,762,696 | |
MasterCard, Inc. Class A | 18,747 | 5,640,785 | |
MongoDB, Inc. Class A (a) | 8,754 | 2,031,891 | |
PayPal Holdings, Inc. (a) | 28,215 | 4,373,607 | |
Repay Holdings Corp. (a) | 6,000 | 138,240 | |
Square, Inc. (a) | 17,300 | 1,402,684 | |
Twilio, Inc. Class A (a) | 26,719 | 5,279,674 | |
Visa, Inc. Class A | 37,487 | 7,318,962 | |
Wix.com Ltd. (a) | 39,168 | 8,708,221 | |
54,317,376 | |||
Semiconductors & Semiconductor Equipment - 7.2% | |||
Applied Materials, Inc. | 40,262 | 2,261,919 | |
Broadcom, Inc. | 3,636 | 1,059,058 | |
Cirrus Logic, Inc. (a) | 4,200 | 304,416 | |
Enphase Energy, Inc. (a) | 15,900 | 925,221 | |
Lam Research Corp. | 8,766 | 2,398,991 | |
Marvell Technology Group Ltd. | 111,675 | 3,642,839 | |
MediaTek, Inc. | 12,000 | 185,392 | |
Micron Technology, Inc. (a) | 190,037 | 9,104,673 | |
NVIDIA Corp. | 31,888 | 11,320,878 | |
NXP Semiconductors NV | 80,828 | 7,767,571 | |
ON Semiconductor Corp. (a) | 74,095 | 1,221,827 | |
Qualcomm, Inc. | 13,788 | 1,115,173 | |
SolarEdge Technologies, Inc. (a) | 21,638 | 3,070,432 | |
Universal Display Corp. | 3,200 | 469,120 | |
44,847,510 | |||
Software - 16.2% | |||
Adobe, Inc. (a) | 17,309 | 6,691,659 | |
Autodesk, Inc. (a) | 20,235 | 4,257,039 | |
Cerence, Inc. (a) | 7,900 | 236,289 | |
Ceridian HCM Holding, Inc. (a) | 3,000 | 206,610 | |
Cloudflare, Inc. (a) | 18,100 | 526,167 | |
Coupa Software, Inc. (a) | 8,277 | 1,883,100 | |
DocuSign, Inc. (a) | 13,261 | 1,853,092 | |
Dynatrace, Inc. | 54,211 | 2,085,497 | |
Elastic NV (a) | 32,864 | 2,823,675 | |
HubSpot, Inc. (a) | 16,976 | 3,394,181 | |
Intuit, Inc. | 5,486 | 1,592,696 | |
Lightspeed POS, Inc. (a) | 67,839 | 1,619,050 | |
Microsoft Corp. | 268,629 | 49,226,260 | |
Nutanix, Inc. Class A (a) | 23,700 | 570,222 | |
Q2 Holdings, Inc. (a) | 1,719 | 142,024 | |
RingCentral, Inc. (a) | 2,601 | 713,324 | |
Salesforce.com, Inc. (a) | 62,382 | 10,903,750 | |
ServiceNow, Inc. (a) | 9,518 | 3,692,318 | |
Snowflake Computing, Inc. Class B (b)(d) | 475 | 18,416 | |
SS&C Technologies Holdings, Inc. | 10,653 | 616,755 | |
The Trade Desk, Inc. (a)(c) | 13,823 | 4,306,694 | |
Workday, Inc. Class A (a) | 9,661 | 1,772,117 | |
Xero Ltd. (a) | 4,828 | 274,408 | |
Zendesk, Inc. (a) | 6,100 | 523,075 | |
Zoom Video Communications, Inc. Class A (a) | 3,000 | 538,440 | |
100,466,858 | |||
Technology Hardware, Storage & Peripherals - 4.2% | |||
Apple, Inc. | 76,118 | 24,200,957 | |
Western Digital Corp. | 37,007 | 1,642,001 | |
25,842,958 | |||
TOTAL INFORMATION TECHNOLOGY | 228,293,157 | ||
MATERIALS - 1.4% | |||
Chemicals - 1.4% | |||
LG Chemical Ltd. | 10,812 | 3,426,601 | |
Olin Corp. | 196,468 | 2,363,510 | |
The Chemours Co. LLC | 230,633 | 3,023,599 | |
8,813,710 | |||
REAL ESTATE - 0.5% | |||
Equity Real Estate Investment Trusts (REITs) - 0.4% | |||
American Tower Corp. | 9,598 | 2,477,916 | |
Real Estate Management & Development - 0.1% | |||
Redfin Corp. (a)(c) | 29,391 | 881,436 | |
TOTAL REAL ESTATE | 3,359,352 | ||
UTILITIES - 1.0% | |||
Electric Utilities - 1.0% | |||
Edison International | 19,202 | 1,115,828 | |
Enel SpA | 41,100 | 317,774 | |
Iberdrola SA | 29,000 | 313,997 | |
NextEra Energy, Inc. | 6,585 | 1,682,863 | |
ORSTED A/S (e) | 24,563 | 2,877,995 | |
6,308,457 | |||
TOTAL COMMON STOCKS | |||
(Cost $315,144,305) | 603,425,070 | ||
Preferred Stocks - 2.2% | |||
Convertible Preferred Stocks - 2.2% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (a)(b)(d) | 1,770 | 15,647 | |
Series B (a)(b)(d) | 310 | 2,740 | |
Series C (a)(b)(d) | 2,980 | 26,343 | |
Series Seed (a)(b)(d) | 950 | 8,398 | |
53,128 | |||
CONSUMER STAPLES - 1.4% | |||
Food & Staples Retailing - 0.1% | |||
Blink Health LLC Series C (b)(d) | 12,949 | 554,347 | |
Sweetgreen, Inc.: | |||
Series C (b)(d) | 322 | 4,811 | |
Series D (b)(d) | 5,177 | 77,344 | |
Series I (b)(d) | 12,201 | 182,283 | |
818,785 | |||
Tobacco - 1.3% | |||
JUUL Labs, Inc.: | |||
Series C (a)(b)(d) | 70,175 | 7,777,495 | |
Series D (a)(b)(d) | 938 | 103,959 | |
7,881,454 | |||
TOTAL CONSUMER STAPLES | 8,700,239 | ||
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.1% | |||
Sonder Holdings, Inc.: | |||
Series D (b)(d) | 15,672 | 168,739 | |
Series E (b)(d) | 48,893 | 526,426 | |
695,165 | |||
Insurance - 0.1% | |||
Clover Health Series D (a)(b)(d) | 67,979 | 292,989 | |
TOTAL FINANCIALS | 988,154 | ||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Nuvation Bio, Inc. Series A (b)(d)(f) | 191,200 | 179,728 | |
INDUSTRIALS - 0.4% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series I (a)(b)(d) | 3,290 | 723,800 | |
Road & Rail - 0.3% | |||
Convoy, Inc. Series D (b)(d) | 93,888 | 1,407,381 | |
TOTAL INDUSTRIALS | 2,131,181 | ||
INFORMATION TECHNOLOGY - 0.2% | |||
IT Services - 0.0% | |||
Yanka Industries, Inc. Series E (b)(d) | 19,716 | 238,154 | |
Software - 0.2% | |||
ACV Auctions, Inc. Series E (b)(d) | 229,793 | 1,231,690 | |
TOTAL INFORMATION TECHNOLOGY | 1,469,844 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 13,522,274 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Waymo LLC Series A2 (b)(d) | 2,896 | 248,671 | |
TOTAL PREFERRED STOCKS | |||
(Cost $5,923,704) | 13,770,945 | ||
Money Market Funds - 4.9% | |||
Fidelity Securities Lending Cash Central Fund 0.10% (g)(h) | |||
(Cost $30,220,248) | 30,217,226 | 30,220,248 | |
TOTAL INVESTMENT IN SECURITIES - 104.2% | |||
(Cost $351,288,257) | 647,416,263 | ||
NET OTHER ASSETS (LIABILITIES) - (4.2)% | (26,137,792) | ||
NET ASSETS - 100% | $621,278,471 |
Legend
(a) Non-income producing
(b) Level 3 security
(c) Security or a portion of the security is on loan at period end.
(d) 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 $13,907,631 or 2.2% of net assets.
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,877,995 or 0.5% of net assets.
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
ACV Auctions, Inc. Series E | 11/6/19 | $1,270,801 |
Allbirds, Inc. | 10/9/18 | $49,243 |
Allbirds, Inc. Series A | 10/9/18 | $19,412 |
Allbirds, Inc. Series B | 10/9/18 | $3,400 |
Allbirds, Inc. Series C | 10/9/18 | $32,682 |
Allbirds, Inc. Series Seed | 10/9/18 | $10,419 |
Blink Health LLC Series C | 11/7/19 | $494,341 |
Clover Health Series D | 6/7/17 | $637,493 |
Convoy, Inc. Series D | 10/30/19 | $1,271,244 |
JUUL Labs, Inc. Class B | 11/21/17 | $0 |
JUUL Labs, Inc. Series C | 5/22/15 | $0 |
JUUL Labs, Inc. Series D | 6/25/18 | $0 |
Nuvation Bio, Inc. Series A | 6/17/19 | $147,488 |
Snowflake Computing, Inc. Class B | 3/19/20 | $18,424 |
Sonder Holdings, Inc. Series D | 12/20/19 | $164,493 |
Sonder Holdings, Inc. Series E | 4/3/20 - 5/6/20 | $526,426 |
Space Exploration Technologies Corp. Series I | 4/5/18 | $556,010 |
Sweetgreen, Inc. Series C | 9/13/19 | $5,506 |
Sweetgreen, Inc. Series D | 9/13/19 | $88,527 |
Sweetgreen, Inc. Series I | 9/13/19 | $208,637 |
Waymo LLC Series A2 | 5/8/20 | $248,671 |
Yanka Industries, Inc. Series E | 5/15/20 | $238,154 |
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 | $21,468 |
Fidelity Securities Lending Cash Central Fund | 437,070 |
Total | $458,538 |
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 May 31, 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 | $95,977,696 | $95,977,696 | $-- | $-- |
Consumer Discretionary | 110,784,855 | 104,154,572 | 6,066,776 | 563,507 |
Consumer Staples | 12,629,445 | 3,850,628 | -- | 8,778,817 |
Energy | 7,829,323 | 7,829,323 | -- | -- |
Financials | 16,772,855 | 13,497,195 | 2,287,506 | 988,154 |
Health Care | 93,100,208 | 90,086,689 | 2,833,791 | 179,728 |
Industrials | 31,857,113 | 28,077,665 | 1,648,267 | 2,131,181 |
Information Technology | 229,763,001 | 228,274,741 | -- | 1,488,260 |
Materials | 8,813,710 | 8,813,710 | -- | -- |
Real Estate | 3,359,352 | 3,359,352 | -- | -- |
Utilities | 6,308,457 | 5,676,686 | 631,771 | -- |
Money Market Funds | 30,220,248 | 30,220,248 | -- | -- |
Total Investments in Securities: | $647,416,263 | $619,818,505 | $13,468,111 | $14,129,647 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Equities - Consumer Staples | |
Beginning Balance | $ 11,071,148 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | (2,292,331) |
Cost of Purchases | -- |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $ 8,778,817 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2020 | $(2,292,331) |
Other Investments in Securities | |
Beginning Balance | $ 4,227,384 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 91,772 |
Cost of Purchases | 1,196,167 |
Proceeds of Sales | (164,493) |
Amortization/Accretion | -- |
Transfers into Level 3 | 336,493 |
Transfers out of Level 3 | (336,493) |
Ending Balance | $ 5,350,830 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2020 | $ 91,772 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 85.9% |
Cayman Islands | 4.7% |
Netherlands | 2.0% |
Israel | 1.4% |
India | 1.4% |
Denmark | 1.0% |
Others (Individually Less Than 1%) | 3.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $29,928,205) — See accompanying schedule: Unaffiliated issuers (cost $321,068,009) | $617,196,015 | |
Fidelity Central Funds (cost $30,220,248) | 30,220,248 | |
Total Investment in Securities (cost $351,288,257) | $647,416,263 | |
Foreign currency held at value (cost $9,177) | 23,142 | |
Receivable for investments sold | 14,369,855 | |
Receivable for fund shares sold | 275,029 | |
Dividends receivable | 297,415 | |
Distributions receivable from Fidelity Central Funds | 120,012 | |
Other receivables | 12,342 | |
Total assets | 662,514,058 | |
Liabilities | ||
Payable to custodian bank | $1,458,154 | |
Payable for investments purchased | ||
Regular delivery | 4,650,838 | |
Delayed delivery | 73,744 | |
Payable for fund shares redeemed | 4,658,401 | |
Other payables and accrued expenses | 173,150 | |
Collateral on securities loaned | 30,221,300 | |
Total liabilities | 41,235,587 | |
Net Assets | $621,278,471 | |
Net Assets consist of: | ||
Paid in capital | $276,620,270 | |
Total accumulated earnings (loss) | 344,658,201 | |
Net Assets | $621,278,471 | |
Net Asset Value, offering price and redemption price per share ($621,278,471 ÷ 43,107,129 shares) | $14.41 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $1,589,745 | |
Interest | 1,113 | |
Income from Fidelity Central Funds (including $437,070 from security lending) | 458,538 | |
Total income | 2,049,396 | |
Expenses | ||
Custodian fees and expenses | $27,618 | |
Independent trustees' fees and expenses | 1,752 | |
Interest | 2,463 | |
Miscellaneous | 1,523 | |
Total expenses | 33,356 | |
Net investment income (loss) | 2,016,040 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $95,940) | 49,496,560 | |
Fidelity Central Funds | 1,402 | |
Foreign currency transactions | (33,839) | |
Futures contracts | (264,353) | |
Total net realized gain (loss) | 49,199,770 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $137,683) | 28,934,249 | |
Assets and liabilities in foreign currencies | 23,623 | |
Total change in net unrealized appreciation (depreciation) | 28,957,872 | |
Net gain (loss) | 78,157,642 | |
Net increase (decrease) in net assets resulting from operations | $80,173,682 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,016,040 | $4,949,303 |
Net realized gain (loss) | 49,199,770 | 140,488,579 |
Change in net unrealized appreciation (depreciation) | 28,957,872 | 44,503,099 |
Net increase (decrease) in net assets resulting from operations | 80,173,682 | 189,940,981 |
Distributions to shareholders | (146,099,036) | (116,238,648) |
Share transactions | ||
Proceeds from sales of shares | 26,685,056 | 112,560,324 |
Reinvestment of distributions | 146,099,036 | 116,238,648 |
Cost of shares redeemed | (133,124,465) | (291,300,492) |
Net increase (decrease) in net assets resulting from share transactions | 39,659,627 | (62,501,520) |
Total increase (decrease) in net assets | (26,265,727) | 11,200,813 |
Net Assets | ||
Beginning of period | 647,544,198 | 636,343,385 |
End of period | $621,278,471 | $647,544,198 |
Other Information | ||
Shares | ||
Sold | 2,028,249 | 7,714,881 |
Issued in reinvestment of distributions | 11,449,768 | 10,359,951 |
Redeemed | (10,164,984) | (19,446,179) |
Net increase (decrease) | 3,313,033 | (1,371,347) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Series Growth Opportunities Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $16.27 | $15.46 | $13.86 | $10.62 | $12.23 | $11.79 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .11B | .10 | .09 | .05 | .05C |
Net realized and unrealized gain (loss) | 1.81 | 3.56 | 2.83 | 3.54 | (.32) | .60 |
Total from investment operations | 1.85 | 3.67 | 2.93 | 3.63 | (.27) | .65 |
Distributions from net investment income | (.13) | (.11) | (.11) | (.04) | (.07) | (.02) |
Distributions from net realized gain | (3.59) | (2.75) | (1.22) | (.36) | (1.27) | (.20) |
Total distributions | (3.71)D | (2.86) | (1.33) | (.39)E | (1.34) | (.21)F |
Net asset value, end of period | $14.41 | $16.27 | $15.46 | $13.86 | $10.62 | $12.23 |
Total ReturnG,H | 14.33% | 32.07% | 23.13% | 35.40% | (2.09)% | 5.71% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .01%K | .01% | .01% | .31% | .62% | .74% |
Expenses net of fee waivers, if any | .01%K | .01% | .01% | .31% | .62% | .74% |
Expenses net of all reductions | .01%K | .01% | .01% | .30% | .61% | .74% |
Net investment income (loss) | .68%K | .77%B | .69% | .71% | .45% | .44%C |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $621,278 | $647,544 | $636,343 | $618,487 | $590,988 | $633,109 |
Portfolio turnover rateL | 73%K | 78%M | 47% | 50% | 67% | 50% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .62%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
D Total distributions of $3.71 per share is comprised of distributions from net investment income of $.125 and distributions from net realized gain of $3.586 per share.
E Total distributions of $.39 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.355 per share.
F Total distributions of $.21 per share is comprised of distributions from net investment income of $.016 and distributions from net realized gain of $.197 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
1. Organization.
Fidelity Advisor Series Growth Opportunities Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. Shares are offered only to certain other Fidelity funds and Fidelity managed 529 plans. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
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".
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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $14,129,647 | Market approach | Transaction price | $10.77 - $220.00 / $99.61 | Increase |
Market comparable | Transaction price | $0.77 | Increase | ||
Discount rate | 3.7% - 32.5% / 14.0% | Decrease | |||
Enterprise value/Sales multiple (EV/S) | 1.0 - 11.2 / 4.3 | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Premium rate | 2.0% - 189.2% / 60.5% | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2020, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $306,705,999 |
Gross unrealized depreciation | (14,296,242) |
Net unrealized appreciation (depreciation) | $292,409,757 |
Tax cost | $355,006,506 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (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.
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 Series Growth Opportunities Fund | 217,106,756 | 325,941,977 |
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 does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Fidelity Advisor Series Growth Opportunities Fund | $5,876 |
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, there 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 Series Growth Opportunities Fund | Borrower | $14,396,875 | .77% | $2,463 |
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.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund received investments and cash valued at $63,177,493 in exchange for 4,283,220 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $1,569.
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 Series Growth Opportunities Fund | $768 |
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 $47,242. 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 $3,679 from securities loaned to NFS, as affiliated borrower.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds and accounts managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
10. 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 and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2019 to May 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Actual | .01% | $1,000.00 | $1,143.30 | $.05 |
Hypothetical-C | $1,000.00 | $1,024.95 | $.05 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (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 Series Growth Opportunities Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 considering whether to renew the Advisory Contracts for the fund, the Board considered all factors it believed relevant and 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 the fact that no fee is payable under the management contract was fair and reasonable.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.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.Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative 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.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. The Board reviewed the fund's absolute investment performance, as well as the fund's relative investment performance, but did not consider performance to be a material factor in its decision to renew the fund's Advisory Contracts, as the fund is not publicly offered as a stand-alone investment product. In this regard, the Board noted that the fund is designed to offer an investment option for other investment companies managed by Fidelity and ultimately to enhance the performance of those investment companies.Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered that the fund does not pay FMR a management fee for investment advisory services. The Board also noted that FMR undertakes to pay all operating expenses of the fund with certain exceptions.In connection with the renewal of the Advisory Contracts, the Board also approved amendments to the management contract for the fund to clarify that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program. The Board considered that the amendments would not change the services provided to the fund or the party responsible for making such payments under the current management contract.The Board further considered that FMR has contractually agreed to reimburse the fund to the extent that total operating expenses, with certain exceptions, as a percentage of its average net assets, exceed 0.014% through March 31, 2023.Based on its review, the Board considered that the fund does not pay a management fee and concluded that the fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds.PricewaterhouseCoopers LLP (PwC), auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of the fund profitability information and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's mutual fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the funds' business. The Board noted that changes to fall-out benefits year-over-year reflect business developments at Fidelity's various businesses. The Board considered that a joint ad hoc committee created by it and the boards of other Fidelity funds had recently been established, and met periodically, to evaluate potential fall-out benefits (PFOB Committee). The Board noted that the PFOB Committee, among other things: (i) discussed the legal framework surrounding potential fall-out benefits; (ii) reviewed the Board's responsibilities and approach to potential fall-out benefits; and (iii) reviewed practices employed by competitor funds regarding the review of potential fall-out benefits.The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund were not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions.Economies of Scale. The Board concluded that because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions, the realization of economies of scale was not a material factor in the Board's decision to renew the fund's Advisory Contracts.Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) consideration of performance fees for additional funds; (iii) changes in Fidelity's non-fund businesses and the impact of such changes on the funds; (iv) metrics for evaluating index fund and ETF performance and information about ETF trading characteristics; (v) the methodology with respect to evaluating competitive fund data and peer group classifications and fee comparisons; (vi) the expense structures for different funds and classes; (vii) information regarding other accounts managed by Fidelity, including collective investment trusts and separately managed accounts; and (viii) Fidelity's philosophies and strategies for evaluating funds and classes with lower or declining asset levels.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee arrangements are fair and reasonable, and that the fund's Advisory Contracts should be renewed.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.
AXS3-SANN-0720
1.967933.106
Fidelity Advisor® Series Equity Growth Fund
Semi-Annual Report
May 31, 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.
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 Ten Stocks as of May 31, 2020
% of fund's net assets | |
Microsoft Corp. | 9.1 |
Alphabet, Inc. Class A | 6.4 |
Amazon.com, Inc. | 5.3 |
Apple, Inc. | 4.7 |
Facebook, Inc. Class A | 4.7 |
Adobe, Inc. | 3.5 |
NVIDIA Corp. | 3.4 |
Visa, Inc. Class A | 3.0 |
Qualcomm, Inc. | 2.1 |
American Tower Corp. | 2.0 |
44.2 |
Top Five Market Sectors as of May 31, 2020
% of fund's net assets | |
Information Technology | 37.0 |
Health Care | 17.4 |
Communication Services | 14.9 |
Consumer Discretionary | 13.2 |
Industrials | 5.6 |
Asset Allocation (% of fund's net assets)
As of May 31, 2020* | ||
Stocks | 99.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 14.7%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 14.9% | |||
Diversified Telecommunication Services - 0.2% | |||
Bandwidth, Inc. (a)(b) | 15,400 | $1,707,090 | |
Entertainment - 2.0% | |||
Activision Blizzard, Inc. | 139,234 | 10,022,063 | |
CD Projekt RED SA | 21,450 | 2,159,412 | |
Electronic Arts, Inc. (a) | 49,669 | 6,103,327 | |
18,284,802 | |||
Interactive Media & Services - 12.7% | |||
Alphabet, Inc. Class A (a) | 40,502 | 58,060,427 | |
Facebook, Inc. Class A (a) | 190,169 | 42,805,140 | |
Tencent Holdings Ltd. | 244,117 | 13,220,368 | |
Wise Talent Information Technology Co. Ltd. (a) | 335,400 | 794,672 | |
114,880,607 | |||
TOTAL COMMUNICATION SERVICES | 134,872,499 | ||
CONSUMER DISCRETIONARY - 13.2% | |||
Automobiles - 1.0% | |||
Ferrari NV | 32,725 | 5,521,035 | |
Tesla, Inc. (a) | 4,200 | 3,507,000 | |
9,028,035 | |||
Diversified Consumer Services - 0.3% | |||
Laureate Education, Inc. Class A (a) | 276,956 | 2,694,782 | |
Hotels, Restaurants & Leisure - 0.8% | |||
Dalata Hotel Group PLC | 30,800 | 111,116 | |
Starbucks Corp. | 93,200 | 7,268,668 | |
7,379,784 | |||
Household Durables - 1.2% | |||
D.R. Horton, Inc. | 124,003 | 6,857,366 | |
NVR, Inc. (a) | 1,339 | 4,313,736 | |
11,171,102 | |||
Internet & Direct Marketing Retail - 8.2% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 54,434 | 11,289,067 | |
Amazon.com, Inc. (a) | 19,707 | 48,131,786 | |
Delivery Hero AG (a)(c) | 10,800 | 1,033,172 | |
Fiverr International Ltd. | 2,918 | 190,020 | |
Pinduoduo, Inc. ADR (a) | 88,044 | 5,887,502 | |
The Booking Holdings, Inc. (a) | 4,349 | 7,129,838 | |
The RealReal, Inc. (b) | 85,700 | 1,149,237 | |
74,810,622 | |||
Leisure Products - 0.2% | |||
Peloton Interactive, Inc. Class A (a) | 34,800 | 1,468,212 | |
Specialty Retail - 0.6% | |||
National Vision Holdings, Inc. (a) | 11,047 | 295,839 | |
Ross Stores, Inc. | 50,281 | 4,875,246 | |
5,171,085 | |||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Aritzia LP (a) | 26,300 | 346,503 | |
Capri Holdings Ltd. (a) | 65,700 | 988,128 | |
LVMH Moet Hennessy Louis Vuitton SE | 14,787 | 6,203,521 | |
PVH Corp. | 11,900 | 541,093 | |
Tapestry, Inc. | 33,100 | 450,160 | |
8,529,405 | |||
TOTAL CONSUMER DISCRETIONARY | 120,253,027 | ||
CONSUMER STAPLES - 4.7% | |||
Beverages - 1.5% | |||
Fever-Tree Drinks PLC | 186 | 4,718 | |
Kweichow Moutai Co. Ltd. (A Shares) | 26,580 | 5,089,387 | |
Monster Beverage Corp. (a) | 120,500 | 8,665,155 | |
13,759,260 | |||
Food & Staples Retailing - 0.2% | |||
Performance Food Group Co. (a) | 57,400 | 1,529,710 | |
Food Products - 0.1% | |||
The Simply Good Foods Co. (a) | 68,092 | 1,159,607 | |
Household Products - 1.4% | |||
Energizer Holdings, Inc. (b) | 140,986 | 6,186,466 | |
Reckitt Benckiser Group PLC | 69,453 | 6,220,666 | |
12,407,132 | |||
Personal Products - 1.5% | |||
Estee Lauder Companies, Inc. Class A | 33,156 | 6,547,315 | |
Herbalife Nutrition Ltd. (a) | 160,600 | 7,040,704 | |
13,588,019 | |||
TOTAL CONSUMER STAPLES | 42,443,728 | ||
ENERGY - 1.1% | |||
Oil, Gas & Consumable Fuels - 1.1% | |||
Reliance Industries Ltd. | 505,416 | 9,789,448 | |
Reliance Industries Ltd. rights (a) | 35,487 | 104,201 | |
9,893,649 | |||
FINANCIALS - 1.8% | |||
Banks - 0.4% | |||
HDFC Bank Ltd. | 29,908 | 378,756 | |
HDFC Bank Ltd. sponsored ADR | 66,919 | 2,799,222 | |
Metro Bank PLC (a)(b) | 18,320 | 16,064 | |
3,194,042 | |||
Capital Markets - 1.2% | |||
CME Group, Inc. | 37,943 | 6,928,392 | |
Goldman Sachs Group, Inc. | 15,000 | 2,947,350 | |
JMP Group, Inc. | 284 | 818 | |
MSCI, Inc. | 1,589 | 522,543 | |
Tradeweb Markets, Inc. Class A | 9,207 | 607,294 | |
XP, Inc. Class A (a) | 9,300 | 282,348 | |
11,288,745 | |||
Consumer Finance - 0.2% | |||
Capital One Financial Corp. | 28,800 | 1,959,552 | |
TOTAL FINANCIALS | 16,442,339 | ||
HEALTH CARE - 17.4% | |||
Biotechnology - 8.0% | |||
AbbVie, Inc. | 137,042 | 12,699,682 | |
ACADIA Pharmaceuticals, Inc. (a) | 8,600 | 427,248 | |
Affimed NV (a) | 114,523 | 376,781 | |
Aimmune Therapeutics, Inc. (a)(b) | 55,782 | 926,539 | |
Applied Therapeutics, Inc. (a) | 23,600 | 1,074,272 | |
Atara Biotherapeutics, Inc. (a)(b) | 63,100 | 725,650 | |
BioNTech SE ADR (a) | 72,747 | 3,603,159 | |
CRISPR Therapeutics AG (a)(b) | 14,800 | 955,784 | |
Cytokinetics, Inc. (a) | 74,037 | 1,533,306 | |
Galapagos Genomics NV sponsored ADR (a) | 14,900 | 3,021,422 | |
Gamida Cell Ltd. (a)(b) | 199,332 | 1,122,239 | |
Gilead Sciences, Inc. | 54,700 | 4,257,301 | |
Global Blood Therapeutics, Inc. (a) | 3,476 | 243,042 | |
Innovent Biologics, Inc. (a)(c) | 145,000 | 796,264 | |
Insmed, Inc. (a) | 237,206 | 5,761,734 | |
Neurocrine Biosciences, Inc. (a) | 67,200 | 8,383,872 | |
Regeneron Pharmaceuticals, Inc. (a) | 27,500 | 16,852,275 | |
Rubius Therapeutics, Inc. (a) | 10,687 | 68,931 | |
Sarepta Therapeutics, Inc. (a) | 3,400 | 517,718 | |
Vertex Pharmaceuticals, Inc. (a) | 28,972 | 8,342,777 | |
Viela Bio, Inc. | 8,300 | 389,270 | |
72,079,266 | |||
Health Care Equipment & Supplies - 2.5% | |||
Axonics Modulation Technologies, Inc. (a) | 36,400 | 1,334,788 | |
Danaher Corp. | 41,217 | 6,867,164 | |
Haemonetics Corp. (a) | 16,193 | 1,776,048 | |
Intuitive Surgical, Inc. (a) | 16,209 | 9,401,706 | |
Nevro Corp. (a) | 12,500 | 1,570,000 | |
Penumbra, Inc. (a) | 11,814 | 2,036,970 | |
22,986,676 | |||
Health Care Providers & Services - 1.5% | |||
Guardant Health, Inc. (a) | 4,485 | 405,399 | |
UnitedHealth Group, Inc. | 43,608 | 13,293,899 | |
13,699,298 | |||
Health Care Technology - 0.9% | |||
Inspire Medical Systems, Inc. (a) | 36,218 | 2,953,216 | |
Veeva Systems, Inc. Class A (a) | 24,397 | 5,339,771 | |
8,292,987 | |||
Life Sciences Tools & Services - 1.9% | |||
10X Genomics, Inc. (a) | 16,404 | 1,279,020 | |
Bruker Corp. | 88,363 | 3,824,351 | |
Charles River Laboratories International, Inc. (a) | 7,800 | 1,401,348 | |
Codexis, Inc. (a) | 64,196 | 797,314 | |
Nanostring Technologies, Inc. (a) | 40,700 | 1,242,571 | |
Thermo Fisher Scientific, Inc. | 23,730 | 8,286,279 | |
16,830,883 | |||
Pharmaceuticals - 2.6% | |||
AstraZeneca PLC sponsored ADR | 191,470 | 10,454,262 | |
Eli Lilly & Co. | 65,800 | 10,064,110 | |
Sanofi SA | 33,200 | 3,247,451 | |
23,765,823 | |||
TOTAL HEALTH CARE | 157,654,933 | ||
INDUSTRIALS - 5.6% | |||
Aerospace & Defense - 0.3% | |||
TransDigm Group, Inc. | 6,295 | 2,674,242 | |
Airlines - 0.4% | |||
Ryanair Holdings PLC sponsored ADR (a) | 46,800 | 3,358,836 | |
Commercial Services & Supplies - 0.3% | |||
Cintas Corp. | 12,800 | 3,173,888 | |
Electrical Equipment - 0.5% | |||
Generac Holdings, Inc. (a) | 42,100 | 4,684,467 | |
Industrial Conglomerates - 0.7% | |||
General Electric Co. | 312,400 | 2,052,468 | |
Roper Technologies, Inc. | 10,943 | 4,309,353 | |
6,361,821 | |||
Machinery - 0.6% | |||
Gardner Denver Holdings, Inc. (a) | 187,128 | 5,277,010 | |
Professional Services - 1.1% | |||
Equifax, Inc. | 65,664 | 10,083,364 | |
Upwork, Inc. (a) | 2,517 | 31,311 | |
10,114,675 | |||
Road & Rail - 1.6% | |||
Rumo SA (a) | 552,600 | 2,333,092 | |
Uber Technologies, Inc. | 333,640 | 12,117,805 | |
14,450,897 | |||
Trading Companies & Distributors - 0.1% | |||
Fastenal Co. | 11,300 | 466,238 | |
TOTAL INDUSTRIALS | 50,562,074 | ||
INFORMATION TECHNOLOGY - 37.0% | |||
Electronic Equipment & Components - 0.8% | |||
FLIR Systems, Inc. | 24,300 | 1,122,660 | |
II-VI, Inc. (a) | 33,100 | 1,573,243 | |
Novanta, Inc. (a) | 2,100 | 215,691 | |
SYNNEX Corp. | 30,400 | 3,242,160 | |
Zebra Technologies Corp. Class A (a) | 3,300 | 862,356 | |
7,016,110 | |||
IT Services - 7.2% | |||
Adyen BV (a)(c) | 1,500 | 1,969,784 | |
Black Knight, Inc. (a) | 95,205 | 7,328,881 | |
CACI International, Inc. Class A (a) | 1,900 | 476,482 | |
Edenred SA | 2,100 | 87,603 | |
Edenred SA rights 5/29/20 (a)(b)(d) | 14,500 | 11,267 | |
MasterCard, Inc. Class A | 22,673 | 6,822,079 | |
MongoDB, Inc. Class A (a)(b) | 22,900 | 5,315,319 | |
Okta, Inc. (a) | 13,511 | 2,642,481 | |
Shopify, Inc. Class A (a) | 10,822 | 8,213,433 | |
Square, Inc. (a) | 68,700 | 5,570,196 | |
Visa, Inc. Class A | 137,343 | 26,814,847 | |
65,252,372 | |||
Semiconductors & Semiconductor Equipment - 9.2% | |||
ASML Holding NV | 23,433 | 7,721,408 | |
Enphase Energy, Inc. (a) | 31,000 | 1,803,890 | |
Lam Research Corp. | 3,200 | 875,744 | |
Micron Technology, Inc. (a) | 131,200 | 6,285,792 | |
Monolithic Power Systems, Inc. | 2,900 | 608,275 | |
NVIDIA Corp. | 87,701 | 31,135,609 | |
NXP Semiconductors NV | 76,864 | 7,386,630 | |
Qualcomm, Inc. | 239,240 | 19,349,731 | |
Semiconductor Manufacturing International Corp. (a) | 81,500 | 178,680 | |
SolarEdge Technologies, Inc. (a) | 9,700 | 1,376,430 | |
Teradyne, Inc. | 35,800 | 2,399,316 | |
Universal Display Corp. | 28,300 | 4,148,780 | |
83,270,285 | |||
Software - 15.1% | |||
Adobe, Inc. (a) | 82,004 | 31,702,746 | |
Cloudflare, Inc. (a) | 23,346 | 678,668 | |
Datadog, Inc. Class A (a) | 2,423 | 172,687 | |
Elastic NV (a) | 988 | 84,889 | |
Manhattan Associates, Inc. (a) | 39,573 | 3,498,253 | |
Microsoft Corp. | 453,168 | 83,043,036 | |
Salesforce.com, Inc. (a) | 104,402 | 18,248,426 | |
137,428,705 | |||
Technology Hardware, Storage & Peripherals - 4.7% | |||
Apple, Inc. | 135,700 | 43,144,458 | |
TOTAL INFORMATION TECHNOLOGY | 336,111,930 | ||
MATERIALS - 1.3% | |||
Chemicals - 1.3% | |||
Albemarle Corp. U.S. (b) | 21,900 | 1,675,788 | |
DuPont de Nemours, Inc. | 64,800 | 3,287,304 | |
Ecolab, Inc. | 4,400 | 935,352 | |
Sherwin-Williams Co. | 9,869 | 5,860,706 | |
11,759,150 | |||
REAL ESTATE - 2.5% | |||
Equity Real Estate Investment Trusts (REITs) - 2.2% | |||
American Tower Corp. | 70,861 | 18,294,184 | |
Simon Property Group, Inc. | 29,900 | 1,725,230 | |
20,019,414 | |||
Real Estate Management & Development - 0.3% | |||
CBRE Group, Inc. (a) | 55,000 | 2,418,900 | |
TOTAL REAL ESTATE | 22,438,314 | ||
TOTAL COMMON STOCKS | |||
(Cost $530,922,031) | 902,431,643 | ||
Convertible Preferred Stocks - 0.0% | |||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Nuvation Bio, Inc. Series A (d)(e)(f) | 287,000 | 269,780 | |
INFORMATION TECHNOLOGY - 0.0% | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(e)(f) | 38,419 | 1,203 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $221,386) | 270,983 | ||
Money Market Funds - 0.8% | |||
Fidelity Cash Central Fund 0.11% (g) | 1,148,576 | 1,148,806 | |
Fidelity Securities Lending Cash Central Fund 0.10% (g)(h) | 6,021,877 | 6,022,480 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $7,171,286) | 7,171,286 | ||
TOTAL INVESTMENT IN SECURITIES - 100.3% | |||
(Cost $538,314,703) | 909,873,912 | ||
NET OTHER ASSETS (LIABILITIES) - (0.3)% | (2,564,857) | ||
NET ASSETS - 100% | $907,309,055 |
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 $3,799,220 or 0.4% of net assets.
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(e) 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 $270,983 or 0.0% of net assets.
(f) Level 3 security
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
AppNexus, Inc. Series E (Escrow) | 8/1/14 | $0 |
Nuvation Bio, Inc. Series A | 6/17/19 | $221,386 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $22,671 |
Fidelity Securities Lending Cash Central Fund | 103,377 |
Total | $126,048 |
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 May 31, 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 | $134,872,499 | $120,857,459 | $14,015,040 | $-- |
Consumer Discretionary | 120,253,027 | 114,049,506 | 6,203,521 | -- |
Consumer Staples | 42,443,728 | 36,223,062 | 6,220,666 | -- |
Energy | 9,893,649 | 9,893,649 | -- | -- |
Financials | 16,442,339 | 16,063,583 | 378,756 | -- |
Health Care | 157,924,713 | 153,611,218 | 4,043,715 | 269,780 |
Industrials | 50,562,074 | 50,562,074 | -- | -- |
Information Technology | 336,113,133 | 335,933,250 | 178,680 | 1,203 |
Materials | 11,759,150 | 11,759,150 | -- | -- |
Real Estate | 22,438,314 | 22,438,314 | -- | -- |
Money Market Funds | 7,171,286 | 7,171,286 | -- | -- |
Total Investments in Securities: | $909,873,912 | $878,562,551 | $31,040,378 | $270,983 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 85.3% |
Cayman Islands | 4.4% |
Netherlands | 2.4% |
United Kingdom | 1.8% |
India | 1.5% |
France | 1.1% |
Others (Individually Less Than 1%) | 3.5% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $6,058,493) — See accompanying schedule: Unaffiliated issuers (cost $531,143,417) | $902,702,626 | |
Fidelity Central Funds (cost $7,171,286) | 7,171,286 | |
Total Investment in Securities (cost $538,314,703) | $909,873,912 | |
Foreign currency held at value (cost $39,741) | 39,741 | |
Receivable for investments sold | 11,295,855 | |
Receivable for fund shares sold | 392,811 | |
Dividends receivable | 521,400 | |
Distributions receivable from Fidelity Central Funds | 2,037 | |
Other receivables | 180 | |
Total assets | 922,125,936 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $953,417 | |
Delayed delivery | 121,960 | |
Payable for fund shares redeemed | 7,564,419 | |
Other payables and accrued expenses | 155,385 | |
Collateral on securities loaned | 6,021,700 | |
Total liabilities | 14,816,881 | |
Net Assets | $907,309,055 | |
Net Assets consist of: | ||
Paid in capital | $466,447,626 | |
Total accumulated earnings (loss) | 440,861,429 | |
Net Assets | $907,309,055 | |
Net Asset Value, offering price and redemption price per share ($907,309,055 ÷ 59,385,208 shares) | $15.28 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $3,725,893 | |
Income from Fidelity Central Funds (including $103,377 from security lending) | 126,048 | |
Total income | 3,851,941 | |
Expenses | ||
Custodian fees and expenses | $29,322 | |
Independent trustees' fees and expenses | 2,664 | |
Interest | 5,780 | |
Miscellaneous | 1,923 | |
Total expenses before reductions | 39,689 | |
Expense reductions | (152) | |
Total expenses after reductions | 39,537 | |
Net investment income (loss) | 3,812,404 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 67,551,508 | |
Fidelity Central Funds | (283) | |
Foreign currency transactions | (2,430) | |
Total net realized gain (loss) | 67,548,795 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $56,684) | 29,641,521 | |
Assets and liabilities in foreign currencies | 1,417 | |
Total change in net unrealized appreciation (depreciation) | 29,642,938 | |
Net gain (loss) | 97,191,733 | |
Net increase (decrease) in net assets resulting from operations | $101,004,137 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,812,404 | $7,995,152 |
Net realized gain (loss) | 67,548,795 | 109,962,881 |
Change in net unrealized appreciation (depreciation) | 29,642,938 | 58,280,132 |
Net increase (decrease) in net assets resulting from operations | 101,004,137 | 176,238,165 |
Distributions to shareholders | (119,061,402) | (73,966,903) |
Share transactions | ||
Proceeds from sales of shares | 39,313,594 | 174,241,041 |
Reinvestment of distributions | 119,061,402 | 73,966,903 |
Cost of shares redeemed | (210,730,662) | (320,110,139) |
Net increase (decrease) in net assets resulting from share transactions | (52,355,666) | (71,902,195) |
Total increase (decrease) in net assets | (70,412,931) | 30,369,067 |
Net Assets | ||
Beginning of period | 977,721,986 | 947,352,919 |
End of period | $907,309,055 | $977,721,986 |
Other Information | ||
Shares | ||
Sold | 2,791,817 | 12,200,603 |
Issued in reinvestment of distributions | 8,510,465 | 6,236,670 |
Redeemed | (14,885,027) | (22,161,899) |
Net increase (decrease) | (3,582,745) | (3,724,626) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Series Equity Growth Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.53 | $14.20 | $15.41 | $11.22 | $11.25 | $10.65 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .06 | .12 | .13 | .08 | .02 | .02 |
Net realized and unrealized gain (loss) | 1.61 | 2.33 | 1.05 | 4.12 | (.03) | .59 |
Total from investment operations | 1.67 | 2.45 | 1.18 | 4.20 | (.01) | .61 |
Distributions from net investment income | (.13) | (.13) | (.09) | (.01) | (.02) | (.01) |
Distributions from net realized gain | (1.79) | (.99) | (2.30) | – | – | – |
Total distributions | (1.92) | (1.12) | (2.39) | (.01) | (.02) | (.01) |
Net asset value, end of period | $15.28 | $15.53 | $14.20 | $15.41 | $11.22 | $11.25 |
Total ReturnB,C | 11.86% | 19.73% | 8.96% | 37.51% | (.11)% | 5.70% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | .01%F | .01% | .01% | .32% | .65% | .74% |
Expenses net of fee waivers, if any | .01%F | .01% | .01% | .32% | .65% | .74% |
Expenses net of all reductions | .01%F | .01% | - %G | .32% | .65% | .73% |
Net investment income (loss) | .84%F | .84% | .92% | .57% | .15% | .19% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $907,309 | $977,722 | $947,353 | $933,562 | $901,989 | $964,918 |
Portfolio turnover rateH | 53%F | 52%I | 38% | 48% | 60% | 65% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Annualized
G Amount represents less than .005%.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
1. Organization.
Fidelity Advisor Series Equity Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. Shares are offered only to certain other Fidelity funds and Fidelity managed 529 plans. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
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".
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.
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $378,370,387 |
Gross unrealized depreciation | (8,517,629) |
Net unrealized appreciation (depreciation) | $369,852,758 |
Tax cost | $540,021,154 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Series Equity Growth Fund | 235,802,523 | 408,735,303 |
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 does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Fidelity Advisor Series Equity Growth Fund | $7,118 |
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, there 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 Series Equity Growth Fund | Borrower | $12,335,125 | 1.05% | $5,780 |
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.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund received investments and cash valued at $87,353,775 in exchange for 6,011,960 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Other. During the prior period, the investment adviser reimbursed the Fund for certain losses in the amount of $4,047.
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 Series Equity Growth Fund | $1,168 |
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. At period end, there were no security loans outstanding with NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $10,225. 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 $40 from securities loaned to NFS, as affiliated borrower.
8. 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 by $152.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds and accounts managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
10. 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, and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2019 to May 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 | |
Actual | .01% | $1,000.00 | $1,118.60 | $.05 |
Hypothetical-C | $1,000.00 | $1,024.95 | $.05 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (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 Series Equity Growth Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company 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.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 considering whether to renew the Advisory Contracts for the fund, the Board considered all factors it believed relevant and 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 the fact that no fee is payable under the management contract was fair and reasonable.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.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.Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative 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.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. The Board reviewed the fund's absolute investment performance, as well as the fund's relative investment performance, but did not consider performance to be a material factor in its decision to renew the fund's Advisory Contracts, as the fund is not publicly offered as a stand-alone investment product. In this regard, the Board noted that the fund is designed to offer an investment option for other investment companies managed by Fidelity and ultimately to enhance the performance of those investment companies.Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered that the fund does not pay FMR a management fee for investment advisory services. The Board also noted that FMR undertakes to pay all operating expenses of the fund with certain exceptions.In connection with the renewal of the Advisory Contracts, the Board also approved amendments to the management contract for the fund to clarify that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program. The Board considered that the amendments would not change the services provided to the fund or the party responsible for making such payments under the current management contract.The Board further considered that FMR has contractually agreed to reimburse the fund to the extent that total operating expenses, with certain exceptions, as a percentage of its average net assets, exceed 0.014% through March 31, 2023.Based on its review, the Board considered that the fund does not pay a management fee and concluded that the fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds.PricewaterhouseCoopers LLP (PwC), auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of the fund profitability information and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's mutual fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the funds' business. The Board noted that changes to fall-out benefits year-over-year reflect business developments at Fidelity's various businesses. The Board considered that a joint ad hoc committee created by it and the boards of other Fidelity funds had recently been established, and met periodically, to evaluate potential fall-out benefits (PFOB Committee). The Board noted that the PFOB Committee, among other things: (i) discussed the legal framework surrounding potential fall-out benefits; (ii) reviewed the Board's responsibilities and approach to potential fall-out benefits; and (iii) reviewed practices employed by competitor funds regarding the review of potential fall-out benefits.The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund were not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions.Economies of Scale. The Board concluded that because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions, the realization of economies of scale was not a material factor in the Board's decision to renew the fund's Advisory Contracts.Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) consideration of performance fees for additional funds; (iii) changes in Fidelity's non-fund businesses and the impact of such changes on the funds; (iv) metrics for evaluating index fund and ETF performance and information about ETF trading characteristics; (v) the methodology with respect to evaluating competitive fund data and peer group classifications and fee comparisons; (vi) the expense structures for different funds and classes; (vii) information regarding other accounts managed by Fidelity, including collective investment trusts and separately managed accounts; and (viii) Fidelity's philosophies and strategies for evaluating funds and classes with lower or declining asset levels.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee arrangements are fair and reasonable, and that the fund's Advisory Contracts should be renewed.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.
AXM1-SANN-0720
1.9860269.105
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: | July 22, 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: | July 22, 2020 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | July 22, 2020 |