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, 2021 |
Item 1.
Reports to Stockholders
Fidelity Advisor® Value Strategies Fund
Semi-Annual Report
May 31, 2021
Includes Fidelity and Fidelity Advisor share classes
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
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. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Cigna Corp. | 2.2 |
Canadian Natural Resources Ltd. | 2.0 |
Cushman & Wakefield PLC | 1.9 |
CubeSmart | 1.9 |
Olin Corp. | 1.8 |
Caesars Entertainment, Inc. | 1.7 |
Ameriprise Financial, Inc. | 1.6 |
Edison International | 1.6 |
Capital One Financial Corp. | 1.6 |
Tronox Holdings PLC | 1.5 |
17.8 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Financials | 19.5 |
Industrials | 16.7 |
Consumer Discretionary | 11.1 |
Real Estate | 9.3 |
Materials | 8.1 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021 * | ||
Stocks | 96.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.9% |
* Foreign investments – 17.6%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.1% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 2.6% | |||
Diversified Telecommunication Services - 0.5% | |||
Liberty Global PLC Class C (a) | 247,800 | $6,745 | |
Media - 2.1% | |||
Interpublic Group of Companies, Inc. | 489,500 | 16,491 | |
Nexstar Broadcasting Group, Inc. Class A | 70,900 | 10,770 | |
27,261 | |||
TOTAL COMMUNICATION SERVICES | 34,006 | ||
CONSUMER DISCRETIONARY - 11.1% | |||
Auto Components - 1.1% | |||
Adient PLC (a) | 282,100 | 14,122 | |
Distributors - 1.3% | |||
LKQ Corp. (a) | 322,400 | 16,430 | |
Diversified Consumer Services - 0.7% | |||
Laureate Education, Inc. Class A (a) | 639,500 | 9,343 | |
Hotels, Restaurants & Leisure - 1.7% | |||
Caesars Entertainment, Inc. (a) | 207,700 | 22,317 | |
Household Durables - 2.0% | |||
Mohawk Industries, Inc. (a) | 85,100 | 17,929 | |
Taylor Morrison Home Corp. (a) | 261,000 | 7,731 | |
25,660 | |||
Internet & Direct Marketing Retail - 1.3% | |||
eBay, Inc. | 289,400 | 17,619 | |
Leisure Products - 1.1% | |||
Mattel, Inc. (a) | 667,100 | 14,149 | |
Specialty Retail - 0.7% | |||
Sally Beauty Holdings, Inc. (a) | 448,200 | 9,775 | |
Textiles, Apparel & Luxury Goods - 1.2% | |||
Tapestry, Inc. (a) | 344,207 | 15,451 | |
TOTAL CONSUMER DISCRETIONARY | 144,866 | ||
CONSUMER STAPLES - 4.0% | |||
Beverages - 0.7% | |||
Primo Water Corp. | 538,600 | 9,323 | |
Food & Staples Retailing - 0.9% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 261,800 | 11,726 | |
Food Products - 0.9% | |||
Darling Ingredients, Inc. (a) | 175,222 | 11,996 | |
Household Products - 0.7% | |||
Reynolds Consumer Products, Inc. | 288,100 | 8,683 | |
Tobacco - 0.8% | |||
Altria Group, Inc. | 221,700 | 10,912 | |
TOTAL CONSUMER STAPLES | 52,640 | ||
ENERGY - 5.3% | |||
Energy Equipment & Services - 0.4% | |||
Liberty Oilfield Services, Inc. Class A (a) | 363,253 | 5,434 | |
Oil, Gas & Consumable Fuels - 4.9% | |||
Canadian Natural Resources Ltd. | 731,700 | 25,679 | |
Cheniere Energy, Inc. (a) | 215,300 | 18,279 | |
Hess Corp. | 234,100 | 19,622 | |
63,580 | |||
TOTAL ENERGY | 69,014 | ||
FINANCIALS - 19.5% | |||
Banks - 2.6% | |||
East West Bancorp, Inc. | 127,400 | 9,527 | |
First Citizens Bancshares, Inc. | 15,100 | 12,995 | |
Signature Bank | 48,000 | 11,988 | |
34,510 | |||
Capital Markets - 4.5% | |||
Ameriprise Financial, Inc. | 81,600 | 21,203 | |
Bank of New York Mellon Corp. | 174,400 | 9,083 | |
Lazard Ltd. Class A | 298,000 | 14,060 | |
LPL Financial | 96,000 | 14,196 | |
58,542 | |||
Consumer Finance - 5.4% | |||
Capital One Financial Corp. | 126,700 | 20,371 | |
OneMain Holdings, Inc. | 268,000 | 15,501 | |
SLM Corp. | 955,384 | 19,347 | |
Synchrony Financial | 312,000 | 14,792 | |
70,011 | |||
Diversified Financial Services - 0.9% | |||
Voya Financial, Inc. | 177,200 | 11,610 | |
Insurance - 6.1% | |||
American Financial Group, Inc. | 130,200 | 17,324 | |
Arch Capital Group Ltd. (a) | 415,700 | 16,582 | |
Assurant, Inc. | 104,100 | 16,776 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 12,900 | 6,026 | |
Reinsurance Group of America, Inc. | 74,100 | 9,339 | |
The Travelers Companies, Inc. | 87,600 | 13,990 | |
80,037 | |||
TOTAL FINANCIALS | 254,710 | ||
HEALTH CARE - 6.6% | |||
Health Care Providers & Services - 5.1% | |||
Centene Corp. (a) | 249,400 | 18,356 | |
Cigna Corp. | 113,600 | 29,403 | |
Laboratory Corp. of America Holdings (a) | 70,500 | 19,351 | |
67,110 | |||
Pharmaceuticals - 1.5% | |||
Bristol-Myers Squibb Co. | 118,400 | 7,781 | |
Jazz Pharmaceuticals PLC (a) | 66,900 | 11,917 | |
19,698 | |||
TOTAL HEALTH CARE | 86,808 | ||
INDUSTRIALS - 16.7% | |||
Air Freight & Logistics - 0.6% | |||
FedEx Corp. | 23,300 | 7,335 | |
Building Products - 2.0% | |||
Builders FirstSource, Inc. (a) | 314,400 | 14,003 | |
Jeld-Wen Holding, Inc. (a) | 418,800 | 11,731 | |
25,734 | |||
Commercial Services & Supplies - 1.0% | |||
The Brink's Co. | 172,200 | 12,986 | |
Construction & Engineering - 1.9% | |||
Fluor Corp. (a) | 648,700 | 12,001 | |
Willscot Mobile Mini Holdings (a) | 468,800 | 13,595 | |
25,596 | |||
Machinery - 1.0% | |||
Allison Transmission Holdings, Inc. | 320,052 | 13,541 | |
Marine - 1.0% | |||
Kirby Corp. (a) | 198,600 | 12,975 | |
Professional Services - 4.1% | |||
ASGN, Inc. (a) | 104,100 | 10,732 | |
KBR, Inc. | 233,500 | 9,513 | |
Manpower, Inc. | 124,900 | 15,112 | |
Nielsen Holdings PLC | 668,100 | 18,179 | |
53,536 | |||
Road & Rail - 1.6% | |||
Ryder System, Inc. | 111,200 | 9,095 | |
TFI International, Inc. (Canada) | 131,100 | 12,606 | |
21,701 | |||
Trading Companies & Distributors - 3.5% | |||
AerCap Holdings NV (a) | 164,000 | 9,676 | |
Beacon Roofing Supply, Inc. (a) | 276,700 | 15,672 | |
Univar, Inc. (a) | 740,300 | 20,055 | |
45,403 | |||
TOTAL INDUSTRIALS | 218,807 | ||
INFORMATION TECHNOLOGY - 5.5% | |||
Electronic Equipment & Components - 1.0% | |||
Flex Ltd. (a) | 738,000 | 13,483 | |
IT Services - 2.2% | |||
DXC Technology Co. (a) | 372,400 | 14,121 | |
Unisys Corp. (a) | 565,332 | 14,535 | |
28,656 | |||
Software - 2.3% | |||
NortonLifeLock, Inc. | 402,500 | 11,133 | |
SS&C Technologies Holdings, Inc. | 246,200 | 18,187 | |
29,320 | |||
TOTAL INFORMATION TECHNOLOGY | 71,459 | ||
MATERIALS - 8.1% | |||
Chemicals - 4.5% | |||
Axalta Coating Systems Ltd. (a) | 444,100 | 14,407 | |
Olin Corp. | 489,183 | 23,916 | |
Tronox Holdings PLC | 862,300 | 20,247 | |
58,570 | |||
Construction Materials - 0.8% | |||
Eagle Materials, Inc. | 72,300 | 10,611 | |
Containers & Packaging - 1.9% | |||
Crown Holdings, Inc. | 114,254 | 11,796 | |
O-I Glass, Inc. (a) | 721,800 | 13,303 | |
25,099 | |||
Metals & Mining - 0.9% | |||
Constellium NV (a) | 615,100 | 10,986 | |
TOTAL MATERIALS | 105,266 | ||
REAL ESTATE - 9.3% | |||
Equity Real Estate Investment Trusts (REITs) - 7.4% | |||
American Tower Corp. | 68,708 | 17,552 | |
Americold Realty Trust | 396,100 | 15,060 | |
CubeSmart | 557,400 | 24,409 | |
Equinix, Inc. | 26,700 | 19,670 | |
Equity Lifestyle Properties, Inc. | 279,800 | 19,827 | |
96,518 | |||
Real Estate Management & Development - 1.9% | |||
Cushman & Wakefield PLC (a) | 1,287,400 | 24,473 | |
TOTAL REAL ESTATE | 120,991 | ||
UTILITIES - 7.4% | |||
Electric Utilities - 2.8% | |||
Edison International | 365,600 | 20,426 | |
PG&E Corp. (a) | 1,644,400 | 16,674 | |
37,100 | |||
Independent Power and Renewable Electricity Producers - 2.3% | |||
The AES Corp. | 733,000 | 18,626 | |
Vistra Corp. | 674,000 | 10,899 | |
29,525 | |||
Multi-Utilities - 2.3% | |||
CenterPoint Energy, Inc. | 707,200 | 17,892 | |
MDU Resources Group, Inc. | 378,400 | 12,737 | |
30,629 | |||
TOTAL UTILITIES | 97,254 | ||
TOTAL COMMON STOCKS | |||
(Cost $908,568) | 1,255,821 | ||
Money Market Funds - 3.7% | |||
Fidelity Cash Central Fund 0.03% (b) | |||
(Cost $48,585) | 48,575,173 | 48,585 | |
TOTAL INVESTMENT IN SECURITIES - 99.8% | |||
(Cost $957,153) | 1,304,406 | ||
NET OTHER ASSETS (LIABILITIES) - 0.2% | 2,819 | ||
NET ASSETS - 100% | $1,307,225 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $7 |
Fidelity Securities Lending Cash Central Fund | 1 |
Total | $8 |
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, 2021, 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 | $34,006 | $34,006 | $-- | $-- |
Consumer Discretionary | 144,866 | 144,866 | -- | -- |
Consumer Staples | 52,640 | 52,640 | -- | -- |
Energy | 69,014 | 69,014 | -- | -- |
Financials | 254,710 | 254,710 | -- | -- |
Health Care | 86,808 | 86,808 | -- | -- |
Industrials | 218,807 | 218,807 | -- | -- |
Information Technology | 71,459 | 71,459 | -- | -- |
Materials | 105,266 | 105,266 | -- | -- |
Real Estate | 120,991 | 120,991 | -- | -- |
Utilities | 97,254 | 97,254 | -- | -- |
Money Market Funds | 48,585 | 48,585 | -- | -- |
Total Investments in Securities: | $1,304,406 | $1,304,406 | $-- | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 82.4% |
United Kingdom | 5.4% |
Canada | 4.0% |
Bermuda | 3.5% |
Ireland | 2.0% |
Singapore | 1.0% |
Others (Individually Less Than 1%) | 1.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $908,568) | $1,255,821 | |
Fidelity Central Funds (cost $48,585) | 48,585 | |
Total Investment in Securities (cost $957,153) | $1,304,406 | |
Receivable for investments sold | 1,046 | |
Receivable for fund shares sold | 3,917 | |
Dividends receivable | 820 | |
Distributions receivable from Fidelity Central Funds | 1 | |
Other receivables | 8 | |
Total assets | 1,310,198 | |
Liabilities | ||
Payable for investments purchased | $961 | |
Payable for fund shares redeemed | 922 | |
Accrued management fee | 695 | |
Transfer agent fee payable | 154 | |
Distribution and service plan fees payable | 176 | |
Other affiliated payables | 34 | |
Other payables and accrued expenses | 31 | |
Total liabilities | 2,973 | |
Net Assets | $1,307,225 | |
Net Assets consist of: | ||
Paid in capital | $917,676 | |
Total accumulated earnings (loss) | 389,549 | |
Net Assets | $1,307,225 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($261,353 ÷ 5,971.27 shares)(a) | $43.77 | |
Maximum offering price per share (100/94.25 of $43.77) | $46.44 | |
Class M: | ||
Net Asset Value and redemption price per share ($265,230 ÷ 5,685.38 shares)(a) | $46.65 | |
Maximum offering price per share (100/96.50 of $46.65) | $48.34 | |
Class C: | ||
Net Asset Value and offering price per share ($15,562 ÷ 423.46 shares)(a) | $36.75 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($531,872 ÷ 10,062.58 shares) | $52.86 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($60,550 ÷ 1,147.17 shares) | $52.78 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($172,658 ÷ 3,529.85 shares) | $48.91 |
(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, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $6,923 | |
Income from Fidelity Central Funds (including $1 from security lending) | 8 | |
Total income | 6,931 | |
Expenses | ||
Management fee | ||
Basic fee | $2,656 | |
Performance adjustment | 603 | |
Transfer agent fees | 819 | |
Distribution and service plan fees | 946 | |
Accounting fees | 167 | |
Custodian fees and expenses | 6 | |
Independent trustees' fees and expenses | 2 | |
Registration fees | 89 | |
Audit | 30 | |
Legal | 2 | |
Miscellaneous | 2 | |
Total expenses before reductions | 5,322 | |
Expense reductions | (31) | |
Total expenses after reductions | 5,291 | |
Net investment income (loss) | 1,640 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 84,104 | |
Foreign currency transactions | (5) | |
Total net realized gain (loss) | 84,099 | |
Change in net unrealized appreciation (depreciation) on investment securities | 206,793 | |
Net gain (loss) | 290,892 | |
Net increase (decrease) in net assets resulting from operations | $292,532 |
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, 2021 (Unaudited) | Year ended November 30, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,640 | $8,096 |
Net realized gain (loss) | 84,099 | (41,544) |
Change in net unrealized appreciation (depreciation) | 206,793 | 38,216 |
Net increase (decrease) in net assets resulting from operations | 292,532 | 4,768 |
Distributions to shareholders | (6,556) | (45,643) |
Share transactions - net increase (decrease) | 232,320 | (74,892) |
Total increase (decrease) in net assets | 518,296 | (115,767) |
Net Assets | ||
Beginning of period | 788,929 | 904,696 |
End of period | $1,307,225 | $788,929 |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.58 | $33.23 | $33.48 | $38.91 | $40.25 | $39.01 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .29 | .42B | .35 | .60C | .56 |
Net realized and unrealized gain (loss) | 11.43 | .87 | 3.66 | (2.50) | 6.13 | 1.09 |
Total from investment operations | 11.48 | 1.16 | 4.08 | (2.15) | 6.73 | 1.65 |
Distributions from net investment income | (.29) | (.46)D | (.29) | (.51) | (.56) | (.40) |
Distributions from net realized gain | – | (1.34)D | (4.04) | (2.77) | (7.52) | (.01) |
Total distributions | (.29) | (1.81)E | (4.33) | (3.28) | (8.07)E | (.41) |
Net asset value, end of period | $43.77 | $32.58 | $33.23 | $33.48 | $38.91 | $40.25 |
Total ReturnF,G,H | 35.47% | 3.53% | 16.34% | (6.16)% | 19.84% | 4.33% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.14%K | 1.03% | 1.02% | .91% | .91% | .86% |
Expenses net of fee waivers, if any | 1.14%K | 1.02% | 1.02% | .91% | .91% | .86% |
Expenses net of all reductions | 1.13%K | 1.01% | 1.01% | .90% | .90% | .86% |
Net investment income (loss) | .24%K | 1.03% | 1.39%B | .98%L | 1.64%C | 1.48% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $261 | $191 | $204 | $175 | $212 | $203 |
Portfolio turnover rateM | 68%K | 72% | 66% | 72% | 46% | 121% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.10%.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.13 per share. Excluding such non-recurring dividend(s), 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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L The 2018 net investment income (loss) ratio has been restated to reflect the reclassification of certain distributions received by the fund.
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $34.67 | $35.23 | $35.16 | $40.69 | $41.72 | $40.40 |
Income from Investment Operations | ||||||
Net investment income (loss)A | –B | .24 | .37C | .28 | .54D | .49 |
Net realized and unrealized gain (loss) | 12.18 | .92 | 3.93 | (2.63) | 6.40 | 1.14 |
Total from investment operations | 12.18 | 1.16 | 4.30 | (2.35) | 6.94 | 1.63 |
Distributions from net investment income | (.20) | (.37)E | (.19) | (.41) | (.46) | (.30) |
Distributions from net realized gain | – | (1.34)E | (4.04) | (2.77) | (7.52) | (.01) |
Total distributions | (.20) | (1.72)F | (4.23) | (3.18) | (7.97)F | (.31) |
Net asset value, end of period | $46.65 | $34.67 | $35.23 | $35.16 | $40.69 | $41.72 |
Total ReturnG,H,I | 35.30% | 3.32% | 16.07% | (6.38)% | 19.57% | 4.11% |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.37%L | 1.25% | 1.25% | 1.14% | 1.13% | 1.08% |
Expenses net of fee waivers, if any | 1.37%L | 1.25% | 1.24% | 1.14% | 1.13% | 1.08% |
Expenses net of all reductions | 1.36%L | 1.24% | 1.24% | 1.13% | 1.13% | 1.07% |
Net investment income (loss) | .01%L | .81% | 1.16%C | .75% | 1.42%D | 1.27% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $265 | $204 | $234 | $225 | $271 | $263 |
Portfolio turnover rateM | 68%L | 72% | 66% | 72% | 46% | 121% |
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 one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .87%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.13 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.06%.
E The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
F Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
L Annualized
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.33 | $28.07 | $28.95 | $34.09 | $36.19 | $35.12 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.09) | .05 | .15B | .06 | .28C | .24 |
Net realized and unrealized gain (loss) | 9.61 | .71 | 3.04 | (2.16) | 5.43 | .97 |
Total from investment operations | 9.52 | .76 | 3.19 | (2.10) | 5.71 | 1.21 |
Distributions from net investment income | (.10) | (.16)D | (.03) | (.27) | (.30) | (.13) |
Distributions from net realized gain | – | (1.34)D | (4.04) | (2.77) | (7.52) | (.01) |
Total distributions | (.10) | (1.50) | (4.07) | (3.04) | (7.81)E | (.14) |
Net asset value, end of period | $36.75 | $27.33 | $28.07 | $28.95 | $34.09 | $36.19 |
Total ReturnF,G,H | 34.92% | 2.73% | 15.41% | (6.89)% | 18.97% | 3.49% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.92%K | 1.83% | 1.82% | 1.68% | 1.68% | 1.63% |
Expenses net of fee waivers, if any | 1.92%K | 1.83% | 1.82% | 1.68% | 1.68% | 1.63% |
Expenses net of all reductions | 1.92%K | 1.82% | 1.82% | 1.67% | 1.67% | 1.63% |
Net investment income (loss) | (.55)%K | .23% | .58%B | .21% | .87%C | .72% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $16 | $11 | $14 | $34 | $46 | $44 |
Portfolio turnover rateL | 68%K | 72% | 66% | 72% | 46% | 121% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.07 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .30%.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.11 per share. Excluding such non-recurring dividend(s), 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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $39.30 | $39.68 | $39.04 | $44.81 | $45.17 | $43.72 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .12 | .43 | .60B | .52 | .81C | .76 |
Net realized and unrealized gain (loss) | 13.79 | 1.07 | 4.46 | (2.92) | 7.01 | 1.21 |
Total from investment operations | 13.91 | 1.50 | 5.06 | (2.40) | 7.82 | 1.97 |
Distributions from net investment income | (.35) | (.54)D | (.38) | (.61) | (.66) | (.51) |
Distributions from net realized gain | – | (1.34)D | (4.04) | (2.77) | (7.52) | (.01) |
Total distributions | (.35) | (1.88) | (4.42) | (3.37)E | (8.18) | (.52) |
Net asset value, end of period | $52.86 | $39.30 | $39.68 | $39.04 | $44.81 | $45.17 |
Total ReturnF,G | 35.65% | 3.85% | 16.63% | (5.89)% | 20.18% | 4.64% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .86%J | .76% | .74% | .63% | .62% | .56% |
Expenses net of fee waivers, if any | .86%J | .76% | .74% | .63% | .62% | .56% |
Expenses net of all reductions | .86%J | .75% | .74% | .62% | .62% | .55% |
Net investment income (loss) | .52%J | 1.30% | 1.66%B | 1.26% | 1.93%C | 1.79% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $532 | $285 | $332 | $324 | $436 | $713 |
Portfolio turnover rateK | 68%J | 72% | 66% | 72% | 46% | 121% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.10 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.37%.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.15 per share. Excluding such non-recurring dividend(s), 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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $39.27 | $39.65 | $39.03 | $44.82 | $45.18 | $43.74 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .15 | .48 | .64B | .58 | .86C | .80 |
Net realized and unrealized gain (loss) | 13.76 | 1.07 | 4.46 | (2.93) | 7.02 | 1.22 |
Total from investment operations | 13.91 | 1.55 | 5.10 | (2.35) | 7.88 | 2.02 |
Distributions from net investment income | (.40) | (.59)D | (.44) | (.67) | (.72) | (.57) |
Distributions from net realized gain | – | (1.34)D | (4.04) | (2.77) | (7.52) | (.01) |
Total distributions | (.40) | (1.93) | (4.48) | (3.44) | (8.24) | (.58) |
Net asset value, end of period | $52.78 | $39.27 | $39.65 | $39.03 | $44.82 | $45.18 |
Total ReturnE,F | 35.73% | 3.99% | 16.80% | (5.80)% | 20.36% | 4.76% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .75%I | .62% | .61% | .50% | .50% | .44% |
Expenses net of fee waivers, if any | .75%I | .61% | .61% | .50% | .50% | .44% |
Expenses net of all reductions | .74%I | .60% | .61% | .49% | .49% | .43% |
Net investment income (loss) | .63%I | 1.44% | 1.79%B | 1.39% | 2.05%C | 1.91% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $61 | $37 | $49 | $49 | $79 | $68 |
Portfolio turnover rateJ | 68%I | 72% | 66% | 72% | 46% | 121% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.10 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.50%.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.15 per share. Excluding such non-recurring dividend(s), 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $36.40 | $36.90 | $36.64 | $42.27 | $43.07 | $41.71 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .40 | .55B | .48 | .74C | .70 |
Net realized and unrealized gain (loss) | 12.75 | .98 | 4.12 | (2.75) | 6.64 | 1.15 |
Total from investment operations | 12.86 | 1.38 | 4.67 | (2.27) | 7.38 | 1.85 |
Distributions from net investment income | (.35) | (.53)D | (.37) | (.59) | (.66) | (.48) |
Distributions from net realized gain | – | (1.34)D | (4.04) | (2.77) | (7.52) | (.01) |
Total distributions | (.35) | (1.88)E | (4.41) | (3.36) | (8.18) | (.49) |
Net asset value, end of period | $48.91 | $36.40 | $36.90 | $36.64 | $42.27 | $43.07 |
Total ReturnF,G | 35.61% | 3.80% | 16.64% | (5.95)% | 20.13% | 4.57% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .89%J | .78% | .78% | .67% | .67% | .61% |
Expenses net of fee waivers, if any | .89%J | .78% | .78% | .67% | .67% | .61% |
Expenses net of all reductions | .88%J | .77% | .77% | .66% | .66% | .61% |
Net investment income (loss) | .49%J | 1.27% | 1.63%B | 1.22% | 1.88%C | 1.74% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $173 | $61 | $72 | $62 | $72 | $73 |
Portfolio turnover rateK | 68%J | 72% | 66% | 72% | 46% | 121% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.10 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.34%.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.14 per share. Excluding such non-recurring dividend(s), 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 distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2021
(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 June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, capital loss carryforwards, 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 | $356,228 |
Gross unrealized depreciation | (13,295) |
Net unrealized appreciation (depreciation) | $342,933 |
Tax cost | $961,473 |
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 | $(36,691) |
Long-term | (1,927) |
Total capital loss carryforward | $(38,618) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Value Strategies Fund | 518,417 | 334,066 |
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 .65% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors 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% | $283 | $7 |
Class M | .25% | .25% | 597 | 37 |
Class C | .75% | .25% | 66 | 10 |
$946 | $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 | $20 |
Class M | 3 |
Class C(a) | –(b) |
$23 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
(b) In the amount of less than five hundred dollars.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company 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.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets (a) | |
Class A | $205 | .18 |
Class M | 196 | .16 |
Class C | 15 | .22 |
Fidelity Value Strategies Fund | 303 | .16 |
Class K | 11 | .04 |
Class I | 89 | .18 |
$819 |
(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 | .03 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Fidelity Advisor Value Strategies Fund | $8 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Value Strategies Fund | 35,182 | 6,762 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Advisor Value Strategies Fund | $1 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Value Strategies Fund | $–(a) | $– | $– |
(a) In the amount of less than five hundred dollars.
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 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 $1.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Value Strategies Fund | ||
Distributions to shareholders | ||
Class A | $1,656 | $10,967 |
Class M | 1,180 | 11,294 |
Class C | 40 | 715 |
Fidelity Value Strategies Fund | 2,562 | 16,344 |
Class K | 519 | 2,635 |
Class I | 599 | 3,688 |
Total | $6,556 | $45,643 |
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, 2021 | Year ended November 30, 2020 | Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Value Strategies Fund | ||||
Class A | ||||
Shares sold | 433 | 562 | $17,663 | $14,707 |
Reinvestment of distributions | 46 | 325 | 1,564 | 10,468 |
Shares redeemed | (374) | (1,153) | (14,139) | (31,522) |
Net increase (decrease) | 105 | (266) | $5,088 | $(6,347) |
Class M | ||||
Shares sold | 121 | 233 | $5,113 | $6,817 |
Reinvestment of distributions | 30 | 306 | 1,087 | 10,508 |
Shares redeemed | (343) | (1,318) | (14,044) | (38,923) |
Net increase (decrease) | (192) | (779) | $(7,844) | $(21,598) |
Class C | ||||
Shares sold | 97 | 96 | $3,306 | $1,957 |
Reinvestment of distributions | 1 | 26 | 39 | 705 |
Shares redeemed | (92) | (191) | (3,001) | (4,381) |
Net increase (decrease) | 6 | (69) | $344 | $(1,719) |
Fidelity Value Strategies Fund | ||||
Shares sold | 3,717 | 1,873 | $181,572 | $64,949 |
Reinvestment of distributions | 59 | 399 | 2,426 | 15,456 |
Shares redeemed | (961) | (3,381) | (44,469) | (109,785) |
Net increase (decrease) | 2,815 | (1,109) | $139,529 | $(29,380) |
Class K | ||||
Shares sold | 794 | 580 | $34,989 | $20,190 |
Reinvestment of distributions | 13 | 68 | 519 | 2,635 |
Shares redeemed | (602) | (947) | (26,017) | (30,980) |
Net increase (decrease) | 205 | (299) | $9,491 | $(8,155) |
Class I | ||||
Shares sold | 2,066 | 367 | $94,643 | $11,900 |
Reinvestment of distributions | 15 | 97 | 571 | 3,475 |
Shares redeemed | (221) | (744) | (9,502) | (23,068) |
Net increase (decrease) | 1,860 | (280) | $85,712 | $(7,693) |
11. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Value Strategies Fund | ||||
Class A | 1.14% | |||
Actual | $1,000.00 | $1,354.70 | $6.69 | |
Hypothetical-C | $1,000.00 | $1,019.25 | $5.74 | |
Class M | 1.37% | |||
Actual | $1,000.00 | $1,353.00 | $8.04 | |
Hypothetical-C | $1,000.00 | $1,018.10 | $6.89 | |
Class C | 1.92% | |||
Actual | $1,000.00 | $1,349.20 | $11.25 | |
Hypothetical-C | $1,000.00 | $1,015.36 | $9.65 | |
Fidelity Value Strategies Fund | .86% | |||
Actual | $1,000.00 | $1,356.50 | $5.05 | |
Hypothetical-C | $1,000.00 | $1,020.64 | $4.33 | |
Class K | .75% | |||
Actual | $1,000.00 | $1,357.30 | $4.41 | |
Hypothetical-C | $1,000.00 | $1,021.19 | $3.78 | |
Class I | .89% | |||
Actual | $1,000.00 | $1,356.10 | $5.23 | |
Hypothetical-C | $1,000.00 | $1,020.49 | $4.48 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Value Strategies Fund
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Fidelity Advisor Value Strategies Fund
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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, 2019 through November 30, 2020. 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-0721
1.704744.123
Fidelity Advisor® Equity Income Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Bristol-Myers Squibb Co. | 3.1 |
Wells Fargo & Co. | 3.1 |
Verizon Communications, Inc. | 2.5 |
Cisco Systems, Inc. | 2.2 |
Amdocs Ltd. | 2.1 |
Merck & Co., Inc. | 2.0 |
Unilever PLC sponsored ADR | 1.9 |
Philip Morris International, Inc. | 1.9 |
General Dynamics Corp. | 1.8 |
AbbVie, Inc. | 1.7 |
22.3 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Health Care | 17.5 |
Financials | 16.5 |
Industrials | 12.9 |
Information Technology | 11.7 |
Consumer Staples | 10.5 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021* | ||
Stocks | 97.6% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.2% |
* Foreign investments - 17.8%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 7.1% | |||
Diversified Telecommunication Services - 2.9% | |||
Deutsche Telekom AG | 278,100 | $5,779 | |
Verizon Communications, Inc. | 742,590 | 41,949 | |
47,728 | |||
Entertainment - 0.8% | |||
Cinemark Holdings, Inc. (a)(b) | 268,600 | 6,086 | |
The Walt Disney Co. (a) | 43,700 | 7,807 | |
13,893 | |||
Media - 3.4% | |||
Cogeco Communications, Inc. | 87,400 | 8,401 | |
Comcast Corp. Class A | 225,700 | 12,942 | |
Interpublic Group of Companies, Inc. | 463,900 | 15,629 | |
Omnicom Group, Inc. | 230,500 | 18,956 | |
55,928 | |||
TOTAL COMMUNICATION SERVICES | 117,549 | ||
CONSUMER DISCRETIONARY - 4.4% | |||
Auto Components - 0.5% | |||
BorgWarner, Inc. | 166,200 | 8,524 | |
Household Durables - 0.5% | |||
Whirlpool Corp. | 35,400 | 8,393 | |
Internet & Direct Marketing Retail - 1.1% | |||
eBay, Inc. | 289,900 | 17,649 | |
Leisure Products - 0.3% | |||
Allstar Co-Invest Blocker LP (a)(c) | 24,619 | 5,659 | |
Multiline Retail - 0.5% | |||
Kohl's Corp. | 66,500 | 3,690 | |
Nordstrom, Inc. (a) | 132,500 | 4,444 | |
8,134 | |||
Specialty Retail - 0.8% | |||
Lowe's Companies, Inc. | 67,200 | 13,093 | |
Textiles, Apparel & Luxury Goods - 0.7% | |||
PVH Corp. (a) | 36,000 | 4,134 | |
Tapestry, Inc. (a) | 167,200 | 7,506 | |
11,640 | |||
TOTAL CONSUMER DISCRETIONARY | 73,092 | ||
CONSUMER STAPLES - 10.5% | |||
Beverages - 1.7% | |||
Keurig Dr. Pepper, Inc. | 236,000 | 8,723 | |
The Coca-Cola Co. | 357,200 | 19,750 | |
28,473 | |||
Food & Staples Retailing - 0.5% | |||
Kroger Co. | 233,000 | 8,616 | |
Food Products - 0.5% | |||
The J.M. Smucker Co. | 57,600 | 7,678 | |
Household Products - 2.2% | |||
Kimberly-Clark Corp. | 65,900 | 8,609 | |
Procter & Gamble Co. | 124,900 | 16,843 | |
Reynolds Consumer Products, Inc. | 332,200 | 10,013 | |
35,465 | |||
Personal Products - 1.9% | |||
Unilever PLC sponsored ADR | 535,600 | 32,120 | |
Tobacco - 3.7% | |||
Altria Group, Inc. | 281,100 | 13,836 | |
British American Tobacco PLC sponsored ADR | 194,201 | 7,510 | |
Imperial Brands PLC | 392,198 | 8,915 | |
Philip Morris International, Inc. | 328,600 | 31,687 | |
61,948 | |||
TOTAL CONSUMER STAPLES | 174,300 | ||
ENERGY - 4.4% | |||
Oil, Gas & Consumable Fuels - 4.4% | |||
BP PLC sponsored ADR | 577,900 | 15,158 | |
Enterprise Products Partners LP | 418,800 | 9,888 | |
Exxon Mobil Corp. | 456,600 | 26,652 | |
Royal Dutch Shell PLC Class A sponsored ADR (b) | 354,000 | 13,668 | |
Suncor Energy, Inc. | 245,400 | 5,705 | |
Viper Energy Partners LP | 146,700 | 2,645 | |
73,716 | |||
FINANCIALS - 16.5% | |||
Banks - 5.8% | |||
Bank OZK | 151,300 | 6,462 | |
Citigroup, Inc. | 135,300 | 10,649 | |
Huntington Bancshares, Inc. | 756,700 | 12,001 | |
M&T Bank Corp. | 101,400 | 16,294 | |
Wells Fargo & Co. | 1,084,850 | 50,684 | |
96,090 | |||
Capital Markets - 3.2% | |||
Apollo Global Management LLC Class A (b) | 180,500 | 10,350 | |
Bank of New York Mellon Corp. | 338,900 | 17,650 | |
State Street Corp. | 296,599 | 25,798 | |
53,798 | |||
Consumer Finance - 0.6% | |||
Capital One Financial Corp. | 66,500 | 10,692 | |
Insurance - 6.9% | |||
Assurant, Inc. | 66,600 | 10,733 | |
AXA SA | 336,100 | 9,280 | |
Chubb Ltd. | 111,784 | 19,002 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 16,300 | 7,614 | |
First American Financial Corp. | 309,400 | 19,898 | |
Hartford Financial Services Group, Inc. | 109,900 | 7,182 | |
Old Republic International Corp. | 518,500 | 13,616 | |
The Travelers Companies, Inc. | 169,800 | 27,117 | |
114,442 | |||
TOTAL FINANCIALS | 275,022 | ||
HEALTH CARE - 17.5% | |||
Biotechnology - 1.7% | |||
AbbVie, Inc. | 255,200 | 28,889 | |
Health Care Providers & Services - 5.7% | |||
Anthem, Inc. | 45,300 | 18,039 | |
Cigna Corp. | 81,300 | 21,045 | |
CVS Health Corp. | 231,636 | 20,023 | |
McKesson Corp. | 75,500 | 14,525 | |
Premier, Inc. | 241,200 | 7,960 | |
UnitedHealth Group, Inc. | 30,400 | 12,522 | |
94,114 | |||
Pharmaceuticals - 10.1% | |||
Bristol-Myers Squibb Co. | 800,000 | 52,573 | |
Johnson & Johnson | 156,418 | 26,474 | |
Merck & Co., Inc. | 430,300 | 32,655 | |
Roche Holding AG (participation certificate) | 57,730 | 20,084 | |
Royalty Pharma PLC (b) | 208,000 | 8,345 | |
Sanofi SA sponsored ADR | 529,200 | 28,275 | |
168,406 | |||
TOTAL HEALTH CARE | 291,409 | ||
INDUSTRIALS - 12.9% | |||
Aerospace & Defense - 4.4% | |||
General Dynamics Corp. | 157,800 | 29,968 | |
L3Harris Technologies, Inc. | 42,200 | 9,202 | |
Northrop Grumman Corp. | 26,900 | 9,842 | |
Raytheon Technologies Corp. | 273,907 | 24,298 | |
73,310 | |||
Air Freight & Logistics - 0.5% | |||
United Parcel Service, Inc. Class B | 38,600 | 8,284 | |
Building Products - 0.7% | |||
Owens Corning | 113,400 | 12,094 | |
Electrical Equipment - 0.4% | |||
Regal Beloit Corp. | 50,400 | 7,168 | |
Industrial Conglomerates - 2.1% | |||
3M Co. | 77,300 | 15,695 | |
General Electric Co. | 1,092,754 | 15,364 | |
Rheinmetall AG | 32,100 | 3,333 | |
34,392 | |||
Machinery - 3.2% | |||
Allison Transmission Holdings, Inc. | 492,300 | 20,829 | |
ITT, Inc. | 88,600 | 8,320 | |
Otis Worldwide Corp. | 173,453 | 13,587 | |
Stanley Black & Decker, Inc. | 45,700 | 9,908 | |
52,644 | |||
Professional Services - 1.6% | |||
CACI International, Inc. Class A (a) | 16,500 | 4,207 | |
Intertrust NV (d) | 564,300 | 10,406 | |
Manpower, Inc. | 57,900 | 7,005 | |
Science Applications International Corp. | 61,600 | 5,535 | |
27,153 | |||
TOTAL INDUSTRIALS | 215,045 | ||
INFORMATION TECHNOLOGY - 11.7% | |||
Communications Equipment - 2.2% | |||
Cisco Systems, Inc. | 688,053 | 36,398 | |
Electronic Equipment & Components - 0.6% | |||
Hitachi Ltd. | 186,800 | 9,786 | |
IT Services - 6.4% | |||
Amdocs Ltd. | 435,722 | 34,030 | |
Capgemini SA | 94,700 | 17,677 | |
Fidelity National Information Services, Inc. | 103,700 | 15,449 | |
Fiserv, Inc. (a) | 92,000 | 10,598 | |
Genpact Ltd. | 119,200 | 5,452 | |
IBM Corp. | 108,200 | 15,553 | |
Maximus, Inc. | 90,100 | 8,350 | |
107,109 | |||
Software - 2.0% | |||
Micro Focus International PLC | 690,500 | 5,087 | |
NortonLifeLock, Inc. | 185,200 | 5,123 | |
Open Text Corp. | 263,400 | 12,406 | |
SS&C Technologies Holdings, Inc. | 151,400 | 11,184 | |
33,800 | |||
Technology Hardware, Storage & Peripherals - 0.5% | |||
Samsung Electronics Co. Ltd. | 112,970 | 8,204 | |
TOTAL INFORMATION TECHNOLOGY | 195,297 | ||
MATERIALS - 3.4% | |||
Chemicals - 2.0% | |||
CF Industries Holdings, Inc. | 241,600 | 12,846 | |
DuPont de Nemours, Inc. | 145,166 | 12,280 | |
LyondellBasell Industries NV Class A | 75,000 | 8,447 | |
33,573 | |||
Metals & Mining - 1.4% | |||
Newmont Corp. | 302,500 | 22,228 | |
TOTAL MATERIALS | 55,801 | ||
REAL ESTATE - 2.2% | |||
Equity Real Estate Investment Trusts (REITs) - 2.2% | |||
Corporate Office Properties Trust (SBI) | 362,000 | 9,991 | |
Douglas Emmett, Inc. | 153,000 | 5,312 | |
Highwoods Properties, Inc. (SBI) | 299,500 | 13,681 | |
Ryman Hospitality Properties, Inc. (a) | 95,600 | 7,161 | |
36,145 | |||
UTILITIES - 7.0% | |||
Electric Utilities - 5.4% | |||
Duke Energy Corp. | 253,000 | 25,356 | |
Edison International | 274,664 | 15,345 | |
Entergy Corp. | 76,100 | 8,010 | |
Exelon Corp. | 317,200 | 14,312 | |
FirstEnergy Corp. | 182,600 | 6,922 | |
Pinnacle West Capital Corp. | 66,900 | 5,658 | |
PPL Corp. | 285,800 | 8,320 | |
Southern Co. | 82,900 | 5,299 | |
89,222 | |||
Independent Power and Renewable Electricity Producers - 0.3% | |||
Vistra Corp. | 319,700 | 5,170 | |
Multi-Utilities - 1.3% | |||
CenterPoint Energy, Inc. | 879,100 | 22,241 | |
TOTAL UTILITIES | 116,633 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,295,350) | 1,624,009 | ||
Other - 0.2% | |||
Energy - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) (c)(e)(f) | |||
(Cost $5,865) | 5,865,354 | 2,604 | |
Money Market Funds - 3.7% | |||
Fidelity Cash Central Fund 0.03% (g) | 29,511,091 | 29,517 | |
Fidelity Securities Lending Cash Central Fund 0.03% (g)(h) | 32,683,506 | 32,687 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $62,204) | 62,204 | ||
TOTAL INVESTMENT IN SECURITIES - 101.5% | |||
(Cost $1,363,419) | 1,688,817 | ||
NET OTHER ASSETS (LIABILITIES) - (1.5)% | (25,752) | ||
NET ASSETS - 100% | $1,663,065 |
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 $8,263,000 or 0.5% of net assets.
(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 $10,406,000 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) |
Allstar Co-Invest Blocker LP | 8/1/11 | $3,098 |
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 | $8 |
Fidelity Securities Lending Cash Central Fund | 28 |
Total | $36 |
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, 2021, 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 | $117,549 | $117,549 | $-- | $-- |
Consumer Discretionary | 73,092 | 67,433 | 5,659 | -- |
Consumer Staples | 174,300 | 174,300 | -- | -- |
Energy | 73,716 | 73,716 | -- | -- |
Financials | 275,022 | 275,022 | -- | -- |
Health Care | 291,409 | 291,409 | -- | -- |
Industrials | 215,045 | 215,045 | -- | -- |
Information Technology | 195,297 | 190,210 | 5,087 | -- |
Materials | 55,801 | 55,801 | -- | -- |
Real Estate | 36,145 | 36,145 | -- | -- |
Utilities | 116,633 | 116,633 | -- | -- |
Other | 2,604 | -- | -- | 2,604 |
Money Market Funds | 62,204 | 62,204 | -- | -- |
Total Investments in Securities: | $1,688,817 | $1,675,467 | $10,746 | $2,604 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 82.2% |
United Kingdom | 4.9% |
France | 3.4% |
Switzerland | 2.3% |
Bailiwick of Guernsey | 2.1% |
Canada | 2.0% |
Netherlands | 1.1% |
Others (Individually Less Than 1%) | 2.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $31,509) — See accompanying schedule: Unaffiliated issuers (cost $1,301,215) | $1,626,613 | |
Fidelity Central Funds (cost $62,204) | 62,204 | |
Total Investment in Securities (cost $1,363,419) | $1,688,817 | |
Cash | 2,578 | |
Restricted cash | 25 | |
Receivable for investments sold | 3,000 | |
Receivable for fund shares sold | 575 | |
Dividends receivable | 4,127 | |
Distributions receivable from Fidelity Central Funds | 21 | |
Other receivables | 67 | |
Total assets | 1,699,210 | |
Liabilities | ||
Payable for investments purchased | $836 | |
Payable for fund shares redeemed | 1,204 | |
Accrued management fee | 589 | |
Distribution and service plan fees payable | 465 | |
Other affiliated payables | 277 | |
Other payables and accrued expenses | 88 | |
Collateral on securities loaned | 32,686 | |
Total liabilities | 36,145 | |
Net Assets | $1,663,065 | |
Net Assets consist of: | ||
Paid in capital | $1,254,685 | |
Total accumulated earnings (loss) | 408,380 | |
Net Assets | $1,663,065 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($711,601.1 ÷ 21,037.721 shares)(a) | $33.83 | |
Maximum offering price per share (100/94.25 of $33.83) | $35.89 | |
Class M: | ||
Net Asset Value and redemption price per share ($616,065.4 ÷ 17,691.436 shares)(a) | $34.82 | |
Maximum offering price per share (100/96.50 of $34.82) | $36.08 | |
Class C: | ||
Net Asset Value and offering price per share ($71,661.7 ÷ 2,093.748 shares)(a) | $34.23 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($230,059.6 ÷ 6,419.668 shares) | $35.84 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($33,677.6 ÷ 940.825 shares) | $35.80 |
(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, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $20,218 | |
Income from Fidelity Central Funds (including $28 from security lending) | 36 | |
Total income | 20,254 | |
Expenses | ||
Management fee | $3,250 | |
Transfer agent fees | 1,346 | |
Distribution and service plan fees | 2,589 | |
Accounting fees | 238 | |
Custodian fees and expenses | 17 | |
Independent trustees' fees and expenses | 3 | |
Registration fees | 43 | |
Audit | 32 | |
Legal | 3 | |
Miscellaneous | 2 | |
Total expenses before reductions | 7,523 | |
Expense reductions | (36) | |
Total expenses after reductions | 7,487 | |
Net investment income (loss) | 12,767 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 78,309 | |
Foreign currency transactions | 9 | |
Total net realized gain (loss) | 78,318 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 218,824 | |
Assets and liabilities in foreign currencies | 10 | |
Total change in net unrealized appreciation (depreciation) | 218,834 | |
Net gain (loss) | 297,152 | |
Net increase (decrease) in net assets resulting from operations | $309,919 |
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, 2021 (Unaudited) | Year ended November 30, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $12,767 | $33,072 |
Net realized gain (loss) | 78,318 | 3,568 |
Change in net unrealized appreciation (depreciation) | 218,834 | (59,755) |
Net increase (decrease) in net assets resulting from operations | 309,919 | (23,115) |
Distributions to shareholders | (15,802) | (120,284) |
Share transactions - net increase (decrease) | (23,999) | (103,256) |
Total increase (decrease) in net assets | 270,118 | (246,655) |
Net Assets | ||
Beginning of period | 1,392,947 | 1,639,602 |
End of period | $1,663,065 | $1,392,947 |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.88 | $30.22 | $31.53 | $34.96 | $32.05 | $31.10 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .27 | .65 | .67 | .68 | .62 | .59 |
Net realized and unrealized gain (loss) | 6.02 | (.67) | 2.08 | (.37)B | 3.32 | 3.13 |
Total from investment operations | 6.29 | (.02) | 2.75 | .31 | 3.94 | 3.72 |
Distributions from net investment income | (.34) | (.66) | (.65) | (.78) | (.58)C | (.66) |
Distributions from net realized gain | –D | (1.67) | (3.41) | (2.95) | (.46)C | (2.11) |
Total distributions | (.34) | (2.32)E | (4.06) | (3.74)E | (1.03)E | (2.77) |
Net asset value, end of period | $33.83 | $27.88 | $30.22 | $31.53 | $34.96 | $32.05 |
Total ReturnF,G,H | 22.75% | .02% | 11.73% | .77%B | 12.55% | 13.52% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .90%K | .92% | .93% | .93% | .94% | .95% |
Expenses net of fee waivers, if any | .90%K | .92% | .92% | .93% | .94% | .95% |
Expenses net of all reductions | .90%K | .92% | .92% | .91% | .93% | .95% |
Net investment income (loss) | 1.76%K | 2.51% | 2.37% | 2.11% | 1.88% | 2.01% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $712 | $591 | $660 | $609 | $686 | $703 |
Portfolio turnover rateL | 47%K | 65% | 48% | 59% | 48% | 36% |
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 Amount represents less than $.005 per share.
E Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.69 | $31.02 | $32.24 | $35.65 | $32.66 | $31.64 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .24 | .60 | .62 | .62 | .56 | .53 |
Net realized and unrealized gain (loss) | 6.19 | (.68) | 2.15 | (.38)B | 3.38 | 3.19 |
Total from investment operations | 6.43 | (.08) | 2.77 | .24 | 3.94 | 3.72 |
Distributions from net investment income | (.30) | (.59) | (.58) | (.70) | (.50)C | (.59) |
Distributions from net realized gain | –D | (1.67) | (3.41) | (2.95) | (.46)C | (2.11) |
Total distributions | (.30) | (2.25)E | (3.99) | (3.65) | (.95)E | (2.70) |
Net asset value, end of period | $34.82 | $28.69 | $31.02 | $32.24 | $35.65 | $32.66 |
Total ReturnF,G,H | 22.59% | (.22)% | 11.46% | .56%B | 12.29% | 13.24% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.14%K | 1.16% | 1.16% | 1.16% | 1.17% | 1.18% |
Expenses net of fee waivers, if any | 1.14%K | 1.16% | 1.16% | 1.16% | 1.17% | 1.18% |
Expenses net of all reductions | 1.14%K | 1.15% | 1.16% | 1.15% | 1.17% | 1.18% |
Net investment income (loss) | 1.52%K | 2.28% | 2.14% | 1.88% | 1.64% | 1.78% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $616 | $534 | $642 | $662 | $775 | $787 |
Portfolio turnover rateL | 47%K | 65% | 48% | 59% | 48% | 36% |
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 Amount represents less than $.005 per share.
E Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.21 | $30.52 | $31.73 | $35.15 | $32.21 | $31.24 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .15 | .45 | .45 | .44 | .37 | .37 |
Net realized and unrealized gain (loss) | 6.09 | (.66) | 2.12 | (.39)B | 3.35 | 3.14 |
Total from investment operations | 6.24 | (.21) | 2.57 | .05 | 3.72 | 3.51 |
Distributions from net investment income | (.22) | (.43) | (.37) | (.52) | (.32)C | (.43) |
Distributions from net realized gain | –D | (1.67) | (3.41) | (2.95) | (.46)C | (2.11) |
Total distributions | (.22) | (2.10) | (3.78) | (3.47) | (.78) | (2.54) |
Net asset value, end of period | $34.23 | $28.21 | $30.52 | $31.73 | $35.15 | $32.21 |
Total ReturnE,F,G | 22.25% | (.77)% | 10.86% | (.01)%B | 11.72% | 12.63% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.70%J | 1.72% | 1.72% | 1.70% | 1.70% | 1.72% |
Expenses net of fee waivers, if any | 1.70%J | 1.72% | 1.71% | 1.69% | 1.70% | 1.72% |
Expenses net of all reductions | 1.70%J | 1.72% | 1.71% | 1.68% | 1.70% | 1.71% |
Net investment income (loss) | .96%J | 1.71% | 1.58% | 1.34% | 1.11% | 1.24% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $72 | $63 | $84 | $160 | $195 | $198 |
Portfolio turnover rateK | 47%J | 65% | 48% | 59% | 48% | 36% |
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 Amount represents less than $.005 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 contingent deferred sales charge.
H Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.51 | $31.85 | $32.99 | $36.40 | $33.31 | $32.21 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .33 | .75 | .78 | .80 | .74 | .69 |
Net realized and unrealized gain (loss) | 6.37 | (.70) | 2.21 | (.39)B | 3.46 | 3.26 |
Total from investment operations | 6.70 | .05 | 2.99 | .41 | 4.20 | 3.95 |
Distributions from net investment income | (.37) | (.72) | (.72) | (.87) | (.65)C | (.74) |
Distributions from net realized gain | –D | (1.67) | (3.41) | (2.95) | (.46)C | (2.11) |
Total distributions | (.37) | (2.39) | (4.13) | (3.82) | (1.11) | (2.85) |
Net asset value, end of period | $35.84 | $29.51 | $31.85 | $32.99 | $36.40 | $33.31 |
Total ReturnE,F | 22.91% | .27% | 12.00% | 1.05%B | 12.86% | 13.82% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .65%I | .67% | .67% | .67% | .68% | .69% |
Expenses net of fee waivers, if any | .65%I | .67% | .67% | .67% | .68% | .69% |
Expenses net of all reductions | .65%I | .66% | .67% | .66% | .68% | .68% |
Net investment income (loss) | 2.01%I | 2.77% | 2.63% | 2.37% | 2.14% | 2.27% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $230 | $178 | $227 | $243 | $269 | $439 |
Portfolio turnover rateJ | 47%I | 65% | 48% | 59% | 48% | 36% |
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 Amount represents less than $.005 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.48 | $31.82 | $32.96 | $36.38 | $33.30 | $32.21 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .35 | .79 | .82 | .85 | .79 | .74 |
Net realized and unrealized gain (loss) | 6.36 | (.70) | 2.21 | (.40)B | 3.46 | 3.24 |
Total from investment operations | 6.71 | .09 | 3.03 | .45 | 4.25 | 3.98 |
Distributions from net investment income | (.39) | (.76) | (.77) | (.91) | (.71)C | (.79) |
Distributions from net realized gain | –D | (1.67) | (3.41) | (2.95) | (.46)C | (2.11) |
Total distributions | (.39) | (2.43) | (4.17)E | (3.87)E | (1.17) | (2.89)E |
Net asset value, end of period | $35.80 | $29.48 | $31.82 | $32.96 | $36.38 | $33.30 |
Total ReturnF,G | 22.98% | .43% | 12.18% | 1.16%B | 13.02% | 13.96% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .51%J | .53% | .53% | .53% | .54% | .54% |
Expenses net of fee waivers, if any | .51%J | .52% | .53% | .53% | .53% | .54% |
Expenses net of all reductions | .51%J | .52% | .52% | .52% | .53% | .53% |
Net investment income (loss) | 2.15%J | 2.91% | 2.77% | 2.51% | 2.28% | 2.42% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $34 | $26 | $27 | $22 | $23 | $15 |
Portfolio turnover rateK | 47%J | 65% | 48% | 59% | 48% | 36% |
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 Amount represents less than $.005 per share.
E Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2021
(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 June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Fidelity Advisor Equity Income Fund | $50 |
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, passive foreign investment companies (PFIC), 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 | $359,600 |
Gross unrealized depreciation | (36,273) |
Net unrealized appreciation (depreciation) | $323,327 |
Tax cost | $1,365,490 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Consolidated Subsidiary. The Funds included in the table below hold certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, investments in Subsidiaries were as follows:
$ Amount | % of Net Assets | |
Fidelity Advisor Equity Income Fund | 2,629 | .16 |
The financial statements have been consolidated to include the Subsidiary accounts where applicable. Accordingly, all inter-company transactions and balances have been eliminated.
At period end, any estimated tax liability for these investments is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations. The tax liability incurred may differ materially depending on conditions when these investments are disposed. Any cash held by a Subsidiary is restricted as to its use and is presented as "Restricted cash" in the Statement of Assets and Liabilities, if applicable.
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 | 343,866 | 379,683 |
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% | $813 | $21 |
Class M | .25% | .25% | 1,439 | 21 |
Class C | .75% | .25% | 337 | 27 |
$2,589 | $69 |
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 | $39 |
Class M | 8 |
Class C(a) | 2 |
$49 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $590 | .18 |
Class M | 490 | .17 |
Class C | 78 | .23 |
Class I | 182 | .18 |
Class Z | 6 | .04 |
$1,346 |
(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 | $6 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Equity Income Fund | 30,604 | 50,015 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Advisor Equity Income Fund | $1 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Equity Income Fund | $3 | $– | $– |
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 expenses. This amount totaled $34 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.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Equity Income Fund | ||
Distributions to shareholders | ||
Class A | $7,133 | $50,413 |
Class M | 5,555 | 45,467 |
Class C | 484 | 5,660 |
Class I | 2,275 | 16,633 |
Class Z | 355 | 2,111 |
Total | $15,802 | $120,284 |
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, 2021 | Year ended November 30, 2020 | Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Equity Income Fund | ||||
Class A | ||||
Shares sold | 1,053 | 1,785 | $32,646 | $45,360 |
Reinvestment of distributions | 230 | 1,709 | 6,742 | 47,884 |
Shares redeemed | (1,448) | (4,122) | (44,277) | (105,342) |
Net increase (decrease) | (165) | (628) | $(4,889) | $(12,098) |
Class M | ||||
Shares sold | 775 | 1,555 | $24,547 | $40,510 |
Reinvestment of distributions | 181 | 1,540 | 5,434 | 44,626 |
Shares redeemed | (1,868) | (5,199) | (58,802) | (136,971) |
Net increase (decrease) | (912) | (2,104) | $(28,821) | $(51,835) |
Class C | ||||
Shares sold | 201 | 263 | $6,256 | $6,887 |
Reinvestment of distributions | 16 | 184 | 474 | 5,305 |
Shares redeemed | (373) | (934) | (11,553) | (23,819) |
Net increase (decrease) | (156) | (487) | $(4,823) | $(11,627) |
Class I | ||||
Shares sold | 883 | 841 | $29,358 | $22,912 |
Reinvestment of distributions | 66 | 488 | 2,069 | 14,415 |
Shares redeemed | (569) | (2,417) | (18,351) | (66,691) |
Net increase (decrease) | 380 | (1,088) | $13,076 | $(29,364) |
Class Z | ||||
Shares sold | 165 | 320 | $5,396 | $8,792 |
Reinvestment of distributions | 10 | 66 | 317 | 1,925 |
Shares redeemed | (130) | (342) | (4,255) | (9,049) |
Net increase (decrease) | 45 | 44 | $1,458 | $1,668 |
11. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Equity Income Fund | ||||
Class A | .90% | |||
Actual | $1,000.00 | $1,227.50 | $5.00 | |
Hypothetical-C | $1,000.00 | $1,020.44 | $4.53 | |
Class M | 1.14% | |||
Actual | $1,000.00 | $1,225.90 | $6.33 | |
Hypothetical-C | $1,000.00 | $1,019.25 | $5.74 | |
Class C | 1.70% | |||
Actual | $1,000.00 | $1,222.50 | $9.42 | |
Hypothetical-C | $1,000.00 | $1,016.45 | $8.55 | |
Class I | .65% | |||
Actual | $1,000.00 | $1,229.10 | $3.61 | |
Hypothetical-C | $1,000.00 | $1,021.69 | $3.28 | |
Class Z | .51% | |||
Actual | $1,000.00 | $1,229.80 | $2.84 | |
Hypothetical-C | $1,000.00 | $1,022.39 | $2.57 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 January 2018. 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, 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/0001379491-21-003389/img711076885.jpg)
Fidelity Advisor Equity Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711077252.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, 2019 through November 30, 2020. 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-0721
1.704674.123
Fidelity Advisor® Equity Growth Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Microsoft Corp. | 9.3 |
Alphabet, Inc. Class A | 9.0 |
Amazon.com, Inc. | 5.4 |
Apple, Inc. | 4.2 |
UnitedHealth Group, Inc. | 4.1 |
NVIDIA Corp. | 3.2 |
Facebook, Inc. Class A | 3.1 |
Adobe, Inc. | 2.7 |
Qualcomm, Inc. | 2.2 |
Tencent Holdings Ltd. | 2.0 |
45.2 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Information Technology | 31.7 |
Communication Services | 17.4 |
Health Care | 14.9 |
Industrials | 11.3 |
Consumer Discretionary | 10.9 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021* | ||
Stocks | 99.5% | |
Convertible Securities | 0.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments – 18.9%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 17.4% | |||
Diversified Telecommunication Services - 0.9% | |||
Cellnex Telecom SA (a) | 690,951 | $41,469 | |
Entertainment - 1.4% | |||
Take-Two Interactive Software, Inc. (b) | 156,100 | 28,966 | |
Warner Music Group Corp. Class A | 1,001,700 | 35,951 | |
64,917 | |||
Interactive Media & Services - 14.5% | |||
Alphabet, Inc. Class A (b) | 180,048 | 424,346 | |
Facebook, Inc. Class A (b) | 447,131 | 146,985 | |
Snap, Inc. Class A (b) | 54,300 | 3,373 | |
Tencent Holdings Ltd. | 1,208,183 | 96,356 | |
Tongdao Liepin Group (b) | 1,834,800 | 5,484 | |
Zoominfo Technologies, Inc. | 226,800 | 9,941 | |
686,485 | |||
Media - 0.6% | |||
Cable One, Inc. | 14,800 | 26,870 | |
TOTAL COMMUNICATION SERVICES | 819,741 | ||
CONSUMER DISCRETIONARY - 10.9% | |||
Automobiles - 0.5% | |||
Ferrari NV | 121,375 | 25,599 | |
Diversified Consumer Services - 0.7% | |||
Laureate Education, Inc. Class A (b) | 2,121,744 | 30,999 | |
Hotels, Restaurants & Leisure - 0.7% | |||
Airbnb, Inc. Class A | 75,500 | 10,600 | |
Compass Group PLC (b) | 178,000 | 4,062 | |
Dalata Hotel Group PLC | 446,100 | 2,406 | |
Flutter Entertainment PLC | 88,200 | 16,553 | |
33,621 | |||
Household Durables - 0.6% | |||
Blu Investments LLC (c)(d) | 12,123,162 | 4 | |
D.R. Horton, Inc. | 124,597 | 11,873 | |
NVR, Inc. (b) | 1,761 | 8,606 | |
Toll Brothers, Inc. | 127,300 | 8,305 | |
28,788 | |||
Internet & Direct Marketing Retail - 6.7% | |||
Alibaba Group Holding Ltd. sponsored ADR (b) | 271,066 | 57,997 | |
Amazon.com, Inc. (b) | 79,293 | 255,567 | |
Coupang, Inc. Class A (b)(e) | 38,200 | 1,558 | |
Pinduoduo, Inc. ADR (b) | 14,756 | 1,843 | |
316,965 | |||
Specialty Retail - 0.1% | |||
Aritzia LP (b) | 89,600 | 2,189 | |
Textiles, Apparel & Luxury Goods - 1.6% | |||
LVMH Moet Hennessy Louis Vuitton SE | 61,579 | 49,097 | |
Prada SpA | 2,750,600 | 19,155 | |
Samsonite International SA (a)(b) | 4,408,800 | 8,339 | |
76,591 | |||
TOTAL CONSUMER DISCRETIONARY | 514,752 | ||
CONSUMER STAPLES - 3.5% | |||
Beverages - 1.5% | |||
Fever-Tree Drinks PLC | 575 | 21 | |
Kweichow Moutai Co. Ltd. (A Shares) | 101,829 | 35,457 | |
Monster Beverage Corp. (b) | 391,300 | 36,888 | |
72,366 | |||
Household Products - 1.3% | |||
Energizer Holdings, Inc. | 565,014 | 26,013 | |
Reckitt Benckiser Group PLC | 267,671 | 24,170 | |
The Clorox Co. | 65,000 | 11,487 | |
61,670 | |||
Tobacco - 0.7% | |||
Altria Group, Inc. | 166,500 | 8,195 | |
Swedish Match Co. AB | 2,560,000 | 23,748 | |
31,943 | |||
TOTAL CONSUMER STAPLES | 165,979 | ||
ENERGY - 1.4% | |||
Oil, Gas & Consumable Fuels - 1.4% | |||
Reliance Industries Ltd. | 2,100,161 | 62,563 | |
Reliance Industries Ltd. | 130,164 | 2,185 | |
64,748 | |||
FINANCIALS - 5.1% | |||
Banks - 1.0% | |||
Comerica, Inc. | 130,300 | 10,227 | |
HDFC Bank Ltd. (b) | 135,292 | 2,828 | |
HDFC Bank Ltd. sponsored ADR (b) | 240,181 | 18,381 | |
M&T Bank Corp. | 62,700 | 10,075 | |
Metro Bank PLC (b)(e) | 48,280 | 75 | |
Wintrust Financial Corp. | 51,700 | 4,158 | |
45,744 | |||
Capital Markets - 2.1% | |||
BlackRock, Inc. Class A | 16,700 | 14,647 | |
CME Group, Inc. | 199,249 | 43,588 | |
Franklin Resources, Inc. | 548,700 | 18,771 | |
JMP Group, Inc. (b)(e) | 135,516 | 764 | |
MSCI, Inc. | 6,411 | 3,001 | |
S&P Global, Inc. | 6,300 | 2,391 | |
T. Rowe Price Group, Inc. | 73,400 | 14,045 | |
97,207 | |||
Consumer Finance - 0.5% | |||
Capital One Financial Corp. | 160,300 | 25,773 | |
Insurance - 1.5% | |||
American Financial Group, Inc. | 183,300 | 24,390 | |
American International Group, Inc. | 290,900 | 15,371 | |
Arthur J. Gallagher & Co. | 215,653 | 31,617 | |
BRP Group, Inc. (b) | 79,100 | 1,944 | |
73,322 | |||
TOTAL FINANCIALS | 242,046 | ||
HEALTH CARE - 14.9% | |||
Biotechnology - 3.9% | |||
ACADIA Pharmaceuticals, Inc. (b) | 71,900 | 1,606 | |
Adamas Pharmaceuticals, Inc. (b) | 1,027,900 | 5,684 | |
Affimed NV (b) | 337,485 | 2,993 | |
Alnylam Pharmaceuticals, Inc. (b) | 47,800 | 6,787 | |
Applied Therapeutics, Inc. (b) | 247,100 | 4,752 | |
Atara Biotherapeutics, Inc. (b) | 232,900 | 3,158 | |
Biogen, Inc. (b) | 11,400 | 3,049 | |
BioNTech SE ADR (b)(e) | 95,707 | 19,524 | |
CRISPR Therapeutics AG (b) | 51,700 | 6,110 | |
Evelo Biosciences, Inc. (b) | 34,000 | 456 | |
Exelixis, Inc. (b) | 194,100 | 4,377 | |
Gamida Cell Ltd. (b)(e) | 934,668 | 6,066 | |
Hookipa Pharma, Inc. (b) | 173,000 | 2,887 | |
Innovent Biologics, Inc. (a)(b) | 615,500 | 7,450 | |
Insmed, Inc. (b) | 539,889 | 13,281 | |
Prelude Therapeutics, Inc. | 17,000 | 591 | |
Regeneron Pharmaceuticals, Inc. (b) | 106,200 | 53,358 | |
Rubius Therapeutics, Inc. (b) | 80,596 | 1,969 | |
Seres Therapeutics, Inc. (b) | 96,200 | 2,031 | |
Synlogic, Inc. (b) | 596,600 | 2,231 | |
Vertex Pharmaceuticals, Inc. (b) | 132,859 | 27,718 | |
Vor Biopharma, Inc. (b)(e) | 24,477 | 516 | |
Vor Biopharma, Inc. | 252,839 | 5,068 | |
XOMA Corp. (b) | 118,900 | 3,504 | |
185,166 | |||
Health Care Equipment & Supplies - 2.6% | |||
Axonics Modulation Technologies, Inc. (b) | 126,300 | 7,286 | |
Danaher Corp. | 149,997 | 38,420 | |
Edwards Lifesciences Corp. (b) | 215,400 | 20,657 | |
Insulet Corp. (b) | 2,236 | 603 | |
Intuitive Surgical, Inc. (b) | 47,191 | 39,743 | |
Medacta Group SA (a)(b) | 8,040 | 1,109 | |
Nevro Corp. (b) | 30,000 | 4,521 | |
Outset Medical, Inc. | 31,733 | 1,532 | |
Penumbra, Inc. (b) | 34,886 | 8,690 | |
122,561 | |||
Health Care Providers & Services - 4.6% | |||
Guardant Health, Inc. (b) | 23,815 | 2,956 | |
HealthEquity, Inc. (b) | 236,000 | 19,616 | |
UnitedHealth Group, Inc. | 468,992 | 193,187 | |
215,759 | |||
Health Care Technology - 0.9% | |||
agilon health, Inc. (b) | 101,200 | 3,637 | |
Certara, Inc. | 85,823 | 2,258 | |
MultiPlan Corp. (c) | 738,622 | 6,234 | |
MultiPlan Corp.: | |||
Class A (b)(e) | 191,200 | 1,614 | |
warrants (b)(c) | 36,565 | 91 | |
Schrodinger, Inc. (b)(e) | 52,900 | 3,713 | |
Simulations Plus, Inc. (e) | 48,200 | 2,544 | |
Veeva Systems, Inc. Class A (b) | 66,803 | 19,462 | |
39,553 | |||
Life Sciences Tools & Services - 1.0% | |||
10X Genomics, Inc. (b) | 31,196 | 5,615 | |
Berkeley Lights, Inc. (b) | 97,800 | 4,254 | |
Bio-Techne Corp. | 9,200 | 3,807 | |
Bruker Corp. | 334,737 | 23,244 | |
Codexis, Inc. (b) | 287,504 | 5,894 | |
Nanostring Technologies, Inc. (b) | 62,300 | 3,457 | |
Olink Holding AB ADR (b) | 16,200 | 572 | |
Sotera Health Co. | 76,100 | 1,834 | |
48,677 | |||
Pharmaceuticals - 1.9% | |||
Aclaris Therapeutics, Inc. (b) | 144,100 | 3,205 | |
Eli Lilly & Co. | 345,500 | 69,010 | |
Endo International PLC (b) | 1,480,800 | 8,692 | |
Nuvation Bio, Inc. | 186,501 | 2,519 | |
Revance Therapeutics, Inc. (b) | 251,100 | 7,435 | |
90,861 | |||
TOTAL HEALTH CARE | 702,577 | ||
INDUSTRIALS - 11.3% | |||
Aerospace & Defense - 1.6% | |||
Airbus Group NV (b) | 295,500 | 38,542 | |
Axon Enterprise, Inc. (b) | 21,200 | 2,981 | |
Northrop Grumman Corp. | 32,300 | 11,818 | |
TransDigm Group, Inc. (b) | 35,882 | 23,282 | |
76,623 | |||
Airlines - 0.9% | |||
Ryanair Holdings PLC sponsored ADR (b) | 345,500 | 40,337 | |
Building Products - 0.5% | |||
Builders FirstSource, Inc. (b) | 199,000 | 8,863 | |
Fortune Brands Home & Security, Inc. | 140,400 | 14,484 | |
23,347 | |||
Construction & Engineering - 0.5% | |||
Fluor Corp. (b) | 1,187,100 | 21,961 | |
Willscot Mobile Mini Holdings (b) | 93,934 | 2,724 | |
24,685 | |||
Electrical Equipment - 1.1% | |||
AMETEK, Inc. | 92,700 | 12,524 | |
Ballard Power Systems, Inc. (b)(e) | 17,100 | 296 | |
Bloom Energy Corp. Class A (b)(e) | 87,000 | 2,103 | |
Ceres Power Holdings PLC (b) | 320,200 | 4,945 | |
Encore Wire Corp. | 43,165 | 3,548 | |
Generac Holdings, Inc. (b) | 87,600 | 28,796 | |
52,212 | |||
Industrial Conglomerates - 1.6% | |||
General Electric Co. | 5,406,400 | 76,014 | |
Machinery - 0.9% | |||
Ingersoll Rand, Inc. (b) | 608,972 | 30,229 | |
Woodward, Inc. | 104,400 | 13,278 | |
43,507 | |||
Professional Services - 2.1% | |||
CACI International, Inc. Class A (b) | 46,600 | 11,881 | |
Equifax, Inc. | 198,736 | 46,711 | |
KBR, Inc. | 360,600 | 14,691 | |
Upwork, Inc. (b) | 522,495 | 24,594 | |
97,877 | |||
Road & Rail - 1.6% | |||
Canadian Pacific Railway Ltd. | 191,500 | 15,561 | |
CSX Corp. | 181,100 | 18,132 | |
Uber Technologies, Inc. (b) | 827,172 | 42,045 | |
75,738 | |||
Trading Companies & Distributors - 0.5% | |||
Ferguson PLC | 164,400 | 22,385 | |
TOTAL INDUSTRIALS | 532,725 | ||
INFORMATION TECHNOLOGY - 31.6% | |||
Electronic Equipment & Components - 0.4% | |||
Dolby Laboratories, Inc. Class A | 108,700 | 10,603 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1,740,000 | 7,164 | |
Jabil, Inc. | 27,700 | 1,564 | |
Novanta, Inc. (b) | 7,300 | 1,014 | |
20,345 | |||
IT Services - 2.8% | |||
Adyen BV (a)(b) | 5,700 | 13,177 | |
Amadeus IT Holding SA Class A (b) | 205,500 | 15,515 | |
Black Knight, Inc. (b) | 196,996 | 14,458 | |
Edenred SA | 1,503 | 82 | |
Edenred SA rights (b)(f) | 1,503 | 1 | |
MasterCard, Inc. Class A | 42,027 | 15,154 | |
MongoDB, Inc. Class A (b) | 113,600 | 33,164 | |
Shopify, Inc. Class A (b) | 15,578 | 19,106 | |
Square, Inc. (b) | 100,500 | 22,363 | |
133,020 | |||
Semiconductors & Semiconductor Equipment - 7.6% | |||
Aixtron AG | 434,700 | 8,976 | |
ASML Holding NV | 58,967 | 39,830 | |
eMemory Technology, Inc. | 36,000 | 1,230 | |
Enphase Energy, Inc. (b) | 94,100 | 13,461 | |
MediaTek, Inc. | 84,000 | 3,032 | |
NVIDIA Corp. | 233,699 | 151,853 | |
Qualcomm, Inc. | 776,860 | 104,519 | |
SiTime Corp. (b) | 35,100 | 3,451 | |
SolarEdge Technologies, Inc. (b) | 35,500 | 9,159 | |
Universal Display Corp. | 111,200 | 24,004 | |
359,515 | |||
Software - 15.7% | |||
Adobe, Inc. (b) | 254,096 | 128,212 | |
Anaplan, Inc. (b) | 64,200 | 3,307 | |
Autodesk, Inc. (b) | 32,800 | 9,376 | |
Cloudflare, Inc. (b) | 60,454 | 4,961 | |
Coupa Software, Inc. (b) | 16,500 | 3,930 | |
CyberArk Software Ltd. (b) | 177,800 | 22,499 | |
Datadog, Inc. Class A (b) | 7,577 | 690 | |
Duck Creek Technologies, Inc. (b) | 4,200 | 165 | |
Elastic NV (b) | 3,012 | 356 | |
Epic Games, Inc. (c)(d) | 3,289 | 2,911 | |
FireEye, Inc. (b)(e) | 2,574,200 | 57,585 | |
Manhattan Associates, Inc. (b) | 157,427 | 21,407 | |
Microsoft Corp. | 1,761,232 | 439,749 | |
Palo Alto Networks, Inc. (b) | 115,400 | 41,919 | |
Volue A/S | 485,800 | 3,020 | |
740,087 | |||
Technology Hardware, Storage & Peripherals - 5.1% | |||
Apple, Inc. | 1,598,100 | 199,139 | |
Samsung Electronics Co. Ltd. | 539,880 | 39,209 | |
238,348 | |||
TOTAL INFORMATION TECHNOLOGY | 1,491,315 | ||
MATERIALS - 3.0% | |||
Chemicals - 2.5% | |||
Albemarle Corp. U.S. | 192,500 | 32,163 | |
Axalta Coating Systems Ltd. (b) | 210,600 | 6,832 | |
Corbion NV | 65,900 | 3,836 | |
LG Chemical Ltd. | 27,900 | 20,615 | |
Sherwin-Williams Co. | 136,493 | 38,700 | |
The Chemours Co. LLC | 370,100 | 13,298 | |
115,444 | |||
Construction Materials - 0.3% | |||
Eagle Materials, Inc. | 109,000 | 15,997 | |
Metals & Mining - 0.2% | |||
First Quantum Minerals Ltd. | 226,100 | 5,564 | |
Lynas Rare Earths Ltd. (b) | 225,314 | 963 | |
MP Materials Corp. (b)(e) | 73,000 | 2,050 | |
8,577 | |||
TOTAL MATERIALS | 140,018 | ||
REAL ESTATE - 0.4% | |||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
Equity Residential (SBI) | 70,600 | 5,468 | |
Prologis (REIT), Inc. | 82,600 | 9,734 | |
15,202 | |||
Real Estate Management & Development - 0.1% | |||
CBRE Group, Inc. (b) | 78,000 | 6,847 | |
TOTAL REAL ESTATE | 22,049 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,607,750) | 4,695,950 | ||
Convertible Preferred Stocks - 0.3% | |||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
ElevateBio LLC Series C (c)(d) | 111,100 | 466 | |
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (b)(c)(d) | 105,425 | 3 | |
Software - 0.1% | |||
ASAPP, Inc. Series C (c)(d) | 367,427 | 2,424 | |
TOTAL INFORMATION TECHNOLOGY | 2,427 | ||
MATERIALS - 0.2% | |||
Metals & Mining - 0.2% | |||
Illuminated Holdings, Inc.: | |||
Series C2 (c)(d) | 76,285 | 3,296 | |
Series C3 (c)(d) | 95,356 | 4,119 | |
Series C4 (c)(d) | 27,230 | 1,176 | |
8,591 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $8,638) | 11,484 | ||
Money Market Funds - 1.0% | |||
Fidelity Cash Central Fund 0.03% (g) | 19,224,601 | 19,228 | |
Fidelity Securities Lending Cash Central Fund 0.03% (g)(h) | 28,349,375 | 28,352 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $47,580) | 47,580 | ||
TOTAL INVESTMENT IN SECURITIES - 100.8% | |||
(Cost $2,663,968) | 4,755,014 | ||
NET OTHER ASSETS (LIABILITIES) - (0.8)% | (37,101) | ||
NET ASSETS - 100% | $4,717,913 |
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 $71,544,000 or 1.5% of net assets.
(b) Non-income producing
(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 $20,724,000 or 0.4% of net assets.
(d) Level 3 security
(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 |
ASAPP, Inc. Series C | 4/30/21 | $2,424 |
Blu Investments LLC | 5/21/20 | $21 |
ElevateBio LLC Series C | 3/9/21 | $466 |
Epic Games, Inc. | 3/29/21 | $2,911 |
Illuminated Holdings, Inc. Series C2 | 7/7/20 | $1,907 |
Illuminated Holdings, Inc. Series C3 | 7/7/20 | $2,861 |
Illuminated Holdings, Inc. Series C4 | 1/8/21 | $980 |
MultiPlan Corp. | 10/8/20 | $7,313 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $3 |
Fidelity Securities Lending Cash Central Fund | 202 |
Total | $205 |
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, 2021, 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 | $819,741 | $819,741 | $-- | $-- |
Consumer Discretionary | 514,752 | 510,686 | 4,062 | 4 |
Consumer Staples | 165,979 | 141,809 | 24,170 | -- |
Energy | 64,748 | 62,563 | 2,185 | -- |
Financials | 242,046 | 242,046 | -- | -- |
Health Care | 703,043 | 694,899 | 7,678 | 466 |
Industrials | 532,725 | 532,725 | -- | -- |
Information Technology | 1,493,742 | 1,488,403 | 1 | 5,338 |
Materials | 148,609 | 140,018 | -- | 8,591 |
Real Estate | 22,049 | 22,049 | -- | -- |
Money Market Funds | 47,580 | 47,580 | -- | -- |
Total Investments in Securities: | $4,755,014 | $4,702,519 | $38,096 | $14,399 |
Net unrealized depreciation on unfunded commitments | $(784) | $-- | $(784) | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 81.1% |
Cayman Islands | 3.6% |
Netherlands | 2.6% |
India | 1.9% |
Ireland | 1.5% |
Korea (South) | 1.3% |
Spain | 1.2% |
France | 1.0% |
Others (Individually Less Than 1%) | 5.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $27,997) — See accompanying schedule: Unaffiliated issuers (cost $2,616,388) | $4,707,434 | |
Fidelity Central Funds (cost $47,580) | 47,580 | |
Total Investment in Securities (cost $2,663,968) | $4,755,014 | |
Cash | 251 | |
Foreign currency held at value (cost $564) | 565 | |
Receivable for investments sold | 5,094 | |
Receivable for fund shares sold | 1,885 | |
Dividends receivable | 2,803 | |
Distributions receivable from Fidelity Central Funds | 7 | |
Prepaid expenses | 1 | |
Other receivables | 192 | |
Total assets | 4,765,812 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $8,108 | |
Delayed delivery | 1 | |
Net unrealized depreciation on unfunded commitments | 784 | |
Payable for fund shares redeemed | 3,833 | |
Accrued management fee | 2,025 | |
Distribution and service plan fees payable | 1,209 | |
Other affiliated payables | 701 | |
Other payables and accrued expenses | 2,891 | |
Collateral on securities loaned | 28,347 | |
Total liabilities | 47,899 | |
Net Assets | $4,717,913 | |
Net Assets consist of: | ||
Paid in capital | $2,241,781 | |
Total accumulated earnings (loss) | 2,476,132 | |
Net Assets | $4,717,913 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($1,625,494 ÷ 94,320 shares)(a) | $17.23 | |
Maximum offering price per share (100/94.25 of $17.23) | $18.28 | |
Class M: | ||
Net Asset Value and redemption price per share ($1,867,024 ÷ 111,591 shares)(a) | $16.73 | |
Maximum offering price per share (100/96.50 of $16.73) | $17.34 | |
Class C: | ||
Net Asset Value and offering price per share ($139,033 ÷ 10,203 shares)(a) | $13.63 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($858,557 ÷ 43,963 shares) | $19.53 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($227,805 ÷ 11,536 shares) | $19.75 |
(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, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $14,377 | |
Income from Fidelity Central Funds (including $202 from security lending) | 205 | |
Total income | 14,582 | |
Expenses | ||
Management fee | $12,035 | |
Transfer agent fees | 3,583 | |
Distribution and service plan fees | 7,231 | |
Accounting fees | 532 | |
Custodian fees and expenses | 65 | |
Independent trustees' fees and expenses | 9 | |
Registration fees | 77 | |
Audit | 37 | |
Legal | 7 | |
Interest | 4 | |
Miscellaneous | 10 | |
Total expenses before reductions | 23,590 | |
Expense reductions | (187) | |
Total expenses after reductions | 23,403 | |
Net investment income (loss) | (8,821) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 401,579 | |
Foreign currency transactions | (134) | |
Total net realized gain (loss) | 401,445 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $266) | 168,312 | |
Unfunded commitments | (784) | |
Assets and liabilities in foreign currencies | 10 | |
Total change in net unrealized appreciation (depreciation) | 167,538 | |
Net gain (loss) | 568,983 | |
Net increase (decrease) in net assets resulting from operations | $560,162 |
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, 2021 (Unaudited) | Year ended November 30, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(8,821) | $(14,272) |
Net realized gain (loss) | 401,445 | 525,770 |
Change in net unrealized appreciation (depreciation) | 167,538 | 789,004 |
Net increase (decrease) in net assets resulting from operations | 560,162 | 1,300,502 |
Distributions to shareholders | (476,279) | (289,806) |
Share transactions - net increase (decrease) | 327,855 | 68,144 |
Total increase (decrease) in net assets | 411,738 | 1,078,840 |
Net Assets | ||
Beginning of period | 4,306,175 | 3,227,335 |
End of period | $4,717,913 | $4,306,175 |
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, | |||||
2021 | 2020 | 2019 | 2018 A | 2017 A | 2016 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.06 | $13.07 | $11.84 | $12.26 | $9.61 | $9.88 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.03) | (.05) | (.02) | (.01) | (.01) | (.02) |
Net realized and unrealized gain (loss) | 2.11 | 5.22 | 1.97 | .93 | 3.24 | (.01) |
Total from investment operations | 2.08 | 5.17 | 1.95 | .92 | 3.23 | (.03) |
Distributions from net realized gain | (1.91) | (1.18) | (.72) | (1.34) | (.58) | (.24) |
Total distributions | (1.91) | (1.18) | (.72) | (1.34) | (.58) | (.24) |
Net asset value, end of period | $17.23 | $17.06 | $13.07 | $11.84 | $12.26 | $9.61 |
Total ReturnC,D,E | 13.21% | 42.92% | 18.34% | 8.38% | 35.72% | (.39)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .98%H | .99% | 1.01% | 1.02% | 1.03% | 1.05% |
Expenses net of fee waivers, if any | .97%H | .99% | 1.01% | 1.01% | 1.03% | 1.05% |
Expenses net of all reductions | .97%H | .99% | 1.01% | 1.01% | 1.03% | 1.05% |
Net investment income (loss) | (.33)%H | (.33)% | (.16)% | (.09)% | (.12)% | (.25)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,625 | $1,477 | $1,049 | $865 | $843 | $803 |
Portfolio turnover rateI | 50%H | 52% | 49%J | 37% | 48% | 60% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 A | 2017 A | 2016 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $16.60 | $12.78 | $11.61 | $12.05 | $9.47 | $9.77 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.05) | (.08) | (.05) | (.04) | (.04) | (.04) |
Net realized and unrealized gain (loss) | 2.05 | 5.08 | 1.94 | .91 | 3.20 | (.02) |
Total from investment operations | 2.00 | 5.00 | 1.89 | .87 | 3.16 | (.06) |
Distributions from net realized gain | (1.87) | (1.18) | (.72) | (1.31) | (.58) | (.24) |
Total distributions | (1.87) | (1.18) | (.72) | (1.31) | (.58) | (.24) |
Net asset value, end of period | $16.73 | $16.60 | $12.78 | $11.61 | $12.05 | $9.47 |
Total ReturnC,D,E | 13.08% | 42.54% | 18.18% | 8.07% | 35.41% | (.62)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.22%H | 1.23% | 1.25% | 1.25% | 1.26% | 1.28% |
Expenses net of fee waivers, if any | 1.22%H | 1.23% | 1.25% | 1.25% | 1.26% | 1.27% |
Expenses net of all reductions | 1.21%H | 1.23% | 1.24% | 1.24% | 1.26% | 1.27% |
Net investment income (loss) | (.57)%H | (.57)% | (.40)% | (.32)% | (.36)% | (.48)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,867 | $1,747 | $1,417 | $1,332 | $1,353 | $1,129 |
Portfolio turnover rateI | 50%H | 52% | 49%J | 37% | 48% | 60% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 A | 2017 A | 2016 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.84 | $10.90 | $10.07 | $10.63 | $8.47 | $8.80 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.07) | (.13) | (.09) | (.09) | (.08) | (.08) |
Net realized and unrealized gain (loss) | 1.69 | 4.25 | 1.64 | .80 | 2.82 | (.01) |
Total from investment operations | 1.62 | 4.12 | 1.55 | .71 | 2.74 | (.09) |
Distributions from net realized gain | (1.83) | (1.18) | (.72) | (1.27) | (.58) | (.24) |
Total distributions | (1.83) | (1.18) | (.72) | (1.27) | (.58) | (.24) |
Net asset value, end of period | $13.63 | $13.84 | $10.90 | $10.07 | $10.63 | $8.47 |
Total ReturnC,D,E | 12.85% | 41.73% | 17.53% | 7.50% | 34.70% | (1.15)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.75%H | 1.78% | 1.80% | 1.78% | 1.79% | 1.81% |
Expenses net of fee waivers, if any | 1.75%H | 1.77% | 1.80% | 1.78% | 1.79% | 1.81% |
Expenses net of all reductions | 1.74%H | 1.77% | 1.79% | 1.77% | 1.79% | 1.81% |
Net investment income (loss) | (1.10)%H | (1.12)% | (.95)% | (.85)% | (.89)% | (1.01)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $139 | $131 | $101 | $196 | $200 | $161 |
Portfolio turnover rateI | 50%H | 52% | 49%J | 37% | 48% | 60% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 A | 2017 A | 2016 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.10 | $14.46 | $12.98 | $13.32 | $10.36 | $10.61 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.01) | (.01) | .01 | .02 | .02 | –C |
Net realized and unrealized gain (loss) | 2.38 | 5.83 | 2.19 | 1.01 | 3.52 | (.01) |
Total from investment operations | 2.37 | 5.82 | 2.20 | 1.03 | 3.54 | (.01) |
Distributions from net realized gain | (1.94) | (1.18) | (.72) | (1.37) | (.58) | (.24) |
Total distributions | (1.94) | (1.18) | (.72) | (1.37) | (.58) | (.24) |
Net asset value, end of period | $19.53 | $19.10 | $14.46 | $12.98 | $13.32 | $10.36 |
Total ReturnD,E | 13.36% | 43.32% | 18.68% | 8.65% | 36.08% | (.12)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .72%H | .74% | .75% | .75% | .77% | .78% |
Expenses net of fee waivers, if any | .72%H | .73% | .75% | .75% | .76% | .78% |
Expenses net of all reductions | .71%H | .73% | .75% | .75% | .76% | .77% |
Net investment income (loss) | (.07)%H | (.07)% | .10% | .17% | .14% | .02% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $859 | $770 | $548 | $679 | $677 | $434 |
Portfolio turnover rateI | 50%H | 52% | 49%J | 37% | 48% | 60% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 A | 2017 A | 2016 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.30 | $14.59 | $13.07 | $13.40 | $10.41 | $10.64 |
Income from Investment Operations | ||||||
Net investment income (loss)B | –C | .01 | .03 | .04 | .03 | .02 |
Net realized and unrealized gain (loss) | 2.41 | 5.88 | 2.21 | 1.02 | 3.54 | (.01) |
Total from investment operations | 2.41 | 5.89 | 2.24 | 1.06 | 3.57 | .01 |
Distributions from net realized gain | (1.96) | (1.18) | (.72) | (1.39) | (.58) | (.24) |
Total distributions | (1.96) | (1.18) | (.72) | (1.39) | (.58) | (.24) |
Net asset value, end of period | $19.75 | $19.30 | $14.59 | $13.07 | $13.40 | $10.41 |
Total ReturnD,E | 13.45% | 43.43% | 18.87% | 8.80% | 36.27% | .02% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .60%H | .61% | .62% | .62% | .63% | .64% |
Expenses net of fee waivers, if any | .60%H | .61% | .62% | .62% | .63% | .63% |
Expenses net of all reductions | .59%H | .61% | .62% | .62% | .63% | .63% |
Net investment income (loss) | .04%H | .05% | .23% | .30% | .28% | .16% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $228 | $180 | $112 | $87 | $59 | $33 |
Portfolio turnover rateI | 50%H | 52% | 49%J | 37% | 48% | 60% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2021
(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 June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Fidelity Advisor Equity Growth Fund | $51 |
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, 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 | $2,124,862 |
Gross unrealized depreciation | (42,332) |
Net unrealized appreciation (depreciation) | $2,082,530 |
Tax cost | $2,672,484 |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
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 | 1,127,583 | 1,293,635 |
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% | $1,965 | $66 |
Class M | .25% | .25% | 4,569 | 122 |
Class C | .75% | .25% | 697 | 87 |
$7,231 | $275 |
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 | $206 |
Class M | 19 |
Class C(a) | 6 |
$231 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $1,299 | .17 |
Class M | 1,451 | .16 |
Class C | 132 | .19 |
Class I | 655 | .16 |
Class Z�� | 46 | .04 |
$3,583 |
(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 | .02 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Fidelity Advisor Equity Growth Fund | $20 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $10,206 | .31% | $4 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Equity Growth Fund | 52,805 | 73,043 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Advisor Equity Growth Fund | $4 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Equity Growth Fund | $21 | $–(a) | $11 |
(a) In the amount of less than five hundred dollars.
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Advisor Equity Growth Fund | $664 | .59% | $–(a) |
(a) In the amount of less than five hundred dollars.
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 expenses. This amount totaled $180 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 $7.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Equity Growth Fund | ||
Distributions to shareholders | ||
Class A | $165,526 | $94,509 |
Class M | 196,250 | 130,485 |
Class C | 17,503 | 10,905 |
Class I | 77,607 | 44,885 |
Class Z | 19,393 | 9,022 |
Total | $476,279 | $289,806 |
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, 2021 | Year ended November 30, 2020 | Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Equity Growth Fund | ||||
Class A | ||||
Shares sold | 5,851 | 12,402 | $97,271 | $169,105 |
Reinvestment of distributions | 9,810 | 7,084 | 155,004 | 88,264 |
Shares redeemed | (7,917) | (13,182) | (131,077) | (178,516) |
Net increase (decrease) | 7,744 | 6,304 | $121,198 | $78,853 |
Class M | ||||
Shares sold | 5,225 | 12,320 | $84,420 | $163,111 |
Reinvestment of distributions | 12,449 | 10,499 | 191,216 | 127,561 |
Shares redeemed | (11,336) | (28,497) | (182,679) | (372,328) |
Net increase (decrease) | 6,338 | (5,678) | $92,957 | $(81,656) |
Class C | ||||
Shares sold | 1,060 | 2,208 | $14,134 | $24,218 |
Reinvestment of distributions | 1,378 | 1,040 | 17,283 | 10,589 |
Shares redeemed | (1,730) | (3,034) | (22,955) | (33,247) |
Net increase (decrease) | 708 | 214 | $8,462 | $1,560 |
Class I | ||||
Shares sold | 5,725 | 14,257 | $107,772 | $221,694 |
Reinvestment of distributions | 4,008 | 2,963 | 71,711 | 41,212 |
Shares redeemed | (6,118) | (14,738) | (115,198) | (222,116) |
Net increase (decrease) | 3,615 | 2,482 | $64,285 | $40,790 |
Class Z | ||||
Shares sold | 2,550 | 3,582 | $48,789 | $56,572 |
Reinvestment of distributions | 1,033 | 612 | 18,669 | 8,598 |
Shares redeemed | (1,397) | (2,498) | (26,505) | (36,573) |
Net increase (decrease) | 2,186 | 1,696 | $40,953 | $28,597 |
12. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Equity Growth Fund | ||||
Class A | .97% | |||
Actual | $1,000.00 | $1,132.10 | $5.16 | |
Hypothetical-C | $1,000.00 | $1,020.09 | $4.89 | |
Class M | 1.22% | |||
Actual | $1,000.00 | $1,130.80 | $6.48 | |
Hypothetical-C | $1,000.00 | $1,018.85 | $6.14 | |
Class C | 1.75% | |||
Actual | $1,000.00 | $1,128.50 | $9.29 | |
Hypothetical-C | $1,000.00 | $1,016.21 | $8.80 | |
Class I | .72% | |||
Actual | $1,000.00 | $1,133.60 | $3.83 | |
Hypothetical-C | $1,000.00 | $1,021.34 | $3.63 | |
Class Z | .60% | |||
Actual | $1,000.00 | $1,134.50 | $3.19 | |
Hypothetical-C | $1,000.00 | $1,021.94 | $3.02 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, 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/0001379491-21-003389/img711073870.jpg)
Fidelity Advisor Equity Growth Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711074211.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, 2019 through November 30, 2020. 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-0721
1.704747.123
Fidelity Advisor® Equity Value Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Berkshire Hathaway, Inc. Class B | 4.2 |
Comcast Corp. Class A | 3.1 |
Bank of America Corp. | 2.6 |
JPMorgan Chase & Co. | 2.4 |
Cigna Corp. | 2.2 |
CBRE Group, Inc. | 2.1 |
Centene Corp. | 2.1 |
Alphabet, Inc. Class A | 2.1 |
Bristol-Myers Squibb Co. | 2.1 |
Cisco Systems, Inc. | 2.0 |
24.9 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Financials | 19.6 |
Health Care | 17.0 |
Industrials | 13.4 |
Communication Services | 10.1 |
Information Technology | 8.5 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021* | ||
Stocks | 99.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.0% |
* Foreign investments – 18.0%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.1% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 10.1% | |||
Diversified Telecommunication Services - 1.7% | |||
Verizon Communications, Inc. | 52,354 | $2,957,477 | |
Entertainment - 0.4% | |||
Lions Gate Entertainment Corp. Class B (a) | 34,803 | 604,876 | |
Interactive Media & Services - 2.5% | |||
Alphabet, Inc. Class A (a) | 1,524 | 3,591,839 | |
Facebook, Inc. Class A (a) | 2,500 | 821,825 | |
4,413,664 | |||
Media - 5.5% | |||
Comcast Corp. Class A | 95,351 | 5,467,426 | |
Fox Corp. Class A | 13,455 | 502,544 | |
Interpublic Group of Companies, Inc. | 77,590 | 2,614,007 | |
WPP PLC | 72,142 | 997,629 | |
9,581,606 | |||
TOTAL COMMUNICATION SERVICES | 17,557,623 | ||
CONSUMER DISCRETIONARY - 6.0% | |||
Auto Components - 0.9% | |||
Lear Corp. | 7,970 | 1,541,079 | |
Household Durables - 0.8% | |||
Newell Brands, Inc. | 18,000 | 516,420 | |
Whirlpool Corp. | 3,300 | 782,397 | |
1,298,817 | |||
Multiline Retail - 1.0% | |||
Dollar General Corp. | 8,634 | 1,752,357 | |
Specialty Retail - 1.5% | |||
Best Buy Co., Inc. | 14,101 | 1,639,100 | |
Lowe's Companies, Inc. | 5,190 | 1,011,168 | |
2,650,268 | |||
Textiles, Apparel & Luxury Goods - 1.8% | |||
PVH Corp. (a) | 16,988 | 1,950,562 | |
Tapestry, Inc. (a) | 27,847 | 1,250,052 | |
3,200,614 | |||
TOTAL CONSUMER DISCRETIONARY | 10,443,135 | ||
CONSUMER STAPLES - 7.0% | |||
Beverages - 0.4% | |||
C&C Group PLC: | |||
(United Kingdom) (a) | 216,266 | 741,699 | |
rights (a) | 56,417 | 44,885 | |
786,584 | |||
Food & Staples Retailing - 1.5% | |||
Kroger Co. | 44,438 | 1,643,317 | |
U.S. Foods Holding Corp. (a) | 22,970 | 894,452 | |
2,537,769 | |||
Food Products - 2.1% | |||
Mondelez International, Inc. | 40,084 | 2,546,537 | |
Tyson Foods, Inc. Class A | 13,215 | 1,050,593 | |
3,597,130 | |||
Household Products - 3.0% | |||
Procter & Gamble Co. | 23,890 | 3,221,567 | |
Reckitt Benckiser Group PLC | 16,789 | 1,515,997 | |
Spectrum Brands Holdings, Inc. | 5,000 | 444,450 | |
5,182,014 | |||
TOTAL CONSUMER STAPLES | 12,103,497 | ||
ENERGY - 1.4% | |||
Energy Equipment & Services - 0.2% | |||
Hoegh LNG Partners LP | 22,346 | 372,731 | |
Oil, Gas & Consumable Fuels - 1.2% | |||
Parex Resources, Inc. (a) | 82,500 | 1,443,579 | |
Teekay LNG Partners LP | 42,933 | 668,037 | |
2,111,616 | |||
TOTAL ENERGY | 2,484,347 | ||
FINANCIALS - 19.6% | |||
Banks - 7.8% | |||
Bank of America Corp. | 106,436 | 4,511,822 | |
Cullen/Frost Bankers, Inc. | 4,300 | 519,053 | |
JPMorgan Chase & Co. | 25,210 | 4,140,490 | |
M&T Bank Corp. | 12,390 | 1,990,949 | |
PNC Financial Services Group, Inc. | 12,416 | 2,417,147 | |
13,579,461 | |||
Capital Markets - 1.7% | |||
Affiliated Managers Group, Inc. | 7,881 | 1,292,484 | |
BlackRock, Inc. Class A | 700 | 613,928 | |
Invesco Ltd. | 21,276 | 607,004 | |
State Street Corp. | 4,961 | 431,508 | |
2,944,924 | |||
Consumer Finance - 2.3% | |||
Capital One Financial Corp. | 10,261 | 1,649,764 | |
Discover Financial Services | 19,714 | 2,311,664 | |
3,961,428 | |||
Diversified Financial Services - 4.2% | |||
Berkshire Hathaway, Inc. Class B (a) | 25,011 | 7,239,185 | |
Insurance - 3.6% | |||
Allstate Corp. | 3,897 | 532,369 | |
American International Group, Inc. | 17,200 | 908,848 | |
Chubb Ltd. | 13,679 | 2,325,293 | |
The Travelers Companies, Inc. | 15,988 | 2,553,284 | |
6,319,794 | |||
TOTAL FINANCIALS | 34,044,792 | ||
HEALTH CARE - 17.0% | |||
Biotechnology - 3.5% | |||
Alexion Pharmaceuticals, Inc. (a) | 16,164 | 2,853,754 | |
Amgen, Inc. | 8,842 | 2,103,865 | |
Regeneron Pharmaceuticals, Inc. (a) | 2,235 | 1,122,931 | |
6,080,550 | |||
Health Care Providers & Services - 9.2% | |||
Anthem, Inc. | 4,969 | 1,978,755 | |
Centene Corp. (a) | 49,889 | 3,671,830 | |
Cigna Corp. | 14,733 | 3,813,637 | |
CVS Health Corp. | 22,124 | 1,912,399 | |
Humana, Inc. | 2,717 | 1,189,231 | |
UnitedHealth Group, Inc. | 8,291 | 3,415,229 | |
15,981,081 | |||
Pharmaceuticals - 4.3% | |||
Bristol-Myers Squibb Co. | 54,338 | 3,571,093 | |
Roche Holding AG (participation certificate) | 6,477 | 2,253,277 | |
Sanofi SA sponsored ADR | 30,469 | 1,627,959 | |
7,452,329 | |||
TOTAL HEALTH CARE | 29,513,960 | ||
INDUSTRIALS - 13.4% | |||
Aerospace & Defense - 2.4% | |||
L3Harris Technologies, Inc. | 8,668 | 1,890,144 | |
Northrop Grumman Corp. | 6,009 | 2,198,513 | |
4,088,657 | |||
Air Freight & Logistics - 0.6% | |||
Deutsche Post AG | 15,973 | 1,089,918 | |
Building Products - 2.7% | |||
Johnson Controls International PLC | 17,168 | 1,142,359 | |
Owens Corning | 18,249 | 1,946,256 | |
Trane Technologies PLC | 8,219 | 1,532,022 | |
4,620,637 | |||
Electrical Equipment - 0.9% | |||
Regal Beloit Corp. | 7,725 | 1,098,727 | |
Vestas Wind Systems A/S | 13,660 | 531,877 | |
1,630,604 | |||
Industrial Conglomerates - 2.5% | |||
3M Co. | 11,098 | 2,253,338 | |
Siemens AG | 13,139 | 2,131,130 | |
4,384,468 | |||
Machinery - 4.3% | |||
ITT, Inc. | 14,875 | 1,396,763 | |
Oshkosh Corp. | 19,025 | 2,500,646 | |
Otis Worldwide Corp. | 14,074 | 1,102,416 | |
Pentair PLC | 19,607 | 1,352,295 | |
Stanley Black & Decker, Inc. | 5,383 | 1,167,034 | |
7,519,154 | |||
TOTAL INDUSTRIALS | 23,333,438 | ||
INFORMATION TECHNOLOGY - 6.6% | |||
Communications Equipment - 2.0% | |||
Cisco Systems, Inc. | 66,916 | 3,539,856 | |
Electronic Equipment & Components - 1.3% | |||
TE Connectivity Ltd. | 16,891 | 2,291,771 | |
IT Services - 2.0% | |||
Amdocs Ltd. | 13,184 | 1,029,670 | |
Capgemini SA | 4,400 | 821,339 | |
Cognizant Technology Solutions Corp. Class A | 23,608 | 1,689,388 | |
3,540,397 | |||
Semiconductors & Semiconductor Equipment - 0.7% | |||
NXP Semiconductors NV | 5,486 | 1,159,850 | |
Software - 0.6% | |||
NortonLifeLock, Inc. | 37,109 | 1,026,435 | |
TOTAL INFORMATION TECHNOLOGY | 11,558,309 | ||
MATERIALS - 3.6% | |||
Chemicals - 1.4% | |||
DuPont de Nemours, Inc. | 17,505 | 1,480,748 | |
International Flavors & Fragrances, Inc. | 6,918 | 980,073 | |
2,460,821 | |||
Metals & Mining - 2.2% | |||
BHP Group Ltd. sponsored ADR (b) | 2,200 | 163,042 | |
Lundin Mining Corp. | 133,911 | 1,423,428 | |
Newmont Corp. | 29,608 | 2,175,596 | |
3,762,066 | |||
TOTAL MATERIALS | 6,222,887 | ||
REAL ESTATE - 3.9% | |||
Equity Real Estate Investment Trusts (REITs) - 1.8% | |||
American Tower Corp. | 7,847 | 2,004,595 | |
Simon Property Group, Inc. | 8,546 | 1,098,076 | |
3,102,671 | |||
Real Estate Management & Development - 2.1% | |||
CBRE Group, Inc. (a) | 41,911 | 3,678,948 | |
TOTAL REAL ESTATE | 6,781,619 | ||
UTILITIES - 8.5% | |||
Electric Utilities - 7.0% | |||
Duke Energy Corp. | 18,258 | 1,829,817 | |
Evergy, Inc. | 28,064 | 1,739,687 | |
Exelon Corp. | 45,742 | 2,063,879 | |
PG&E Corp. (a) | 153,800 | 1,559,532 | |
Portland General Electric Co. | 22,553 | 1,081,191 | |
PPL Corp. | 44,888 | 1,306,690 | |
Southern Co. | 41,212 | 2,634,271 | |
12,215,067 | |||
Multi-Utilities - 1.5% | |||
Dominion Energy, Inc. | 32,760 | 2,494,346 | |
TOTAL UTILITIES | 14,709,413 | ||
TOTAL COMMON STOCKS | |||
(Cost $120,304,026) | 168,753,020 | ||
Nonconvertible Preferred Stocks - 1.9% | |||
INFORMATION TECHNOLOGY - 1.9% | |||
Technology Hardware, Storage & Peripherals - 1.9% | |||
Samsung Electronics Co. Ltd. | |||
(Cost $2,072,720) | 48,419 | 3,188,823 | |
Money Market Funds - 2.1% | |||
Fidelity Cash Central Fund 0.03% (c) | 3,527,559 | 3,528,264 | |
Fidelity Securities Lending Cash Central Fund 0.03% (c)(d) | 159,059 | 159,075 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $3,687,339) | 3,687,339 | ||
TOTAL INVESTMENT IN SECURITIES - 101.1% | |||
(Cost $126,064,085) | 175,629,182 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (1,880,694) | ||
NET ASSETS - 100% | $173,748,488 |
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 |
Fidelity Cash Central Fund | $844 |
Fidelity Securities Lending Cash Central Fund | 56 |
Total | $900 |
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, 2021, 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 | $17,557,623 | $16,559,994 | $997,629 | $-- |
Consumer Discretionary | 10,443,135 | 10,443,135 | -- | -- |
Consumer Staples | 12,103,497 | 10,587,500 | 1,515,997 | -- |
Energy | 2,484,347 | 2,484,347 | -- | -- |
Financials | 34,044,792 | 34,044,792 | -- | -- |
Health Care | 29,513,960 | 29,513,960 | -- | -- |
Industrials | 23,333,438 | 23,333,438 | -- | -- |
Information Technology | 14,747,132 | 14,747,132 | -- | -- |
Materials | 6,222,887 | 6,222,887 | -- | -- |
Real Estate | 6,781,619 | 6,781,619 | -- | -- |
Utilities | 14,709,413 | 14,709,413 | -- | -- |
Money Market Funds | 3,687,339 | 3,687,339 | -- | -- |
Total Investments in Securities: | $175,629,182 | $173,115,556 | $2,513,626 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 82.0% |
Switzerland | 3.9% |
Ireland | 2.8% |
Canada | 2.0% |
Korea (South) | 1.9% |
Germany | 1.8% |
France | 1.4% |
Others (Individually Less Than 1%) | 4.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $155,631) — See accompanying schedule: Unaffiliated issuers (cost $122,376,746) | $171,941,843 | |
Fidelity Central Funds (cost $3,687,339) | 3,687,339 | |
Total Investment in Securities (cost $126,064,085) | $175,629,182 | |
Foreign currency held at value (cost $44) | 1,134 | |
Receivable for fund shares sold | 162,925 | |
Dividends receivable | 282,787 | |
Distributions receivable from Fidelity Central Funds | 172 | |
Prepaid expenses | 25 | |
Other receivables | 1,715 | |
Total assets | 176,077,940 | |
Liabilities | ||
Payable for investments purchased | $1,023,902 | |
Payable for fund shares redeemed | 949,863 | |
Accrued management fee | 88,372 | |
Distribution and service plan fees payable | 46,291 | |
Other affiliated payables | 29,876 | |
Other payables and accrued expenses | 32,073 | |
Collateral on securities loaned | 159,075 | |
Total liabilities | 2,329,452 | |
Net Assets | $173,748,488 | |
Net Assets consist of: | ||
Paid in capital | $124,644,034 | |
Total accumulated earnings (loss) | 49,104,454 | |
Net Assets | $173,748,488 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($93,782,674 ÷ 4,046,962 shares)(a) | $23.17 | |
Maximum offering price per share (100/94.25 of $23.17) | $24.58 | |
Class M: | ||
Net Asset Value and redemption price per share ($32,442,953 ÷ 1,399,655 shares)(a) | $23.18 | |
Maximum offering price per share (100/96.50 of $23.18) | $24.02 | |
Class C: | ||
Net Asset Value and offering price per share ($16,860,797 ÷ 745,611 shares)(a) | $22.61 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($25,918,538 ÷ 1,089,631 shares) | $23.79 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($4,743,526 ÷ 200,830 shares) | $23.62 |
(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, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $1,366,101 | |
Income from Fidelity Central Funds (including $56 from security lending) | 900 | |
Total income | 1,367,001 | |
Expenses | ||
Management fee | ||
Basic fee | $386,230 | |
Performance adjustment | 32,084 | |
Transfer agent fees | 137,611 | |
Distribution and service plan fees | 238,407 | |
Accounting fees | 28,546 | |
Custodian fees and expenses | 6,288 | |
Independent trustees' fees and expenses | 273 | |
Registration fees | 66,020 | |
Audit | 31,452 | |
Legal | 2,085 | |
Miscellaneous | 367 | |
Total expenses before reductions | 929,363 | |
Expense reductions | (5,209) | |
Total expenses after reductions | 924,154 | |
Net investment income (loss) | 442,847 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 6,081,556 | |
Fidelity Central Funds | 18 | |
Foreign currency transactions | (372) | |
Total net realized gain (loss) | 6,081,202 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 24,555,237 | |
Assets and liabilities in foreign currencies | 2,688 | |
Total change in net unrealized appreciation (depreciation) | 24,557,925 | |
Net gain (loss) | 30,639,127 | |
Net increase (decrease) in net assets resulting from operations | $31,081,974 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2021 (Unaudited) | Year ended November 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $442,847 | $1,586,131 |
Net realized gain (loss) | 6,081,202 | (6,522,494) |
Change in net unrealized appreciation (depreciation) | 24,557,925 | 9,081,200 |
Net increase (decrease) in net assets resulting from operations | 31,081,974 | 4,144,837 |
Distributions to shareholders | (1,211,157) | (6,894,201) |
Share transactions - net increase (decrease) | 20,229,464 | (12,517,702) |
Total increase (decrease) in net assets | 50,100,281 | (15,267,066) |
Net Assets | ||
Beginning of period | 123,648,207 | 138,915,273 |
End of period | $173,748,488 | $123,648,207 |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.87 | $18.81 | $18.77 | $18.84 | $16.46 | $15.66 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .07 | .24B | .26 | .26 | .21 | .17 |
Net realized and unrealized gain (loss) | 4.43 | .80 | 1.25 | (.16) | 2.30 | 1.00 |
Total from investment operations | 4.50 | 1.04 | 1.51 | .10 | 2.51 | 1.17 |
Distributions from net investment income | (.20) | (.45) | (.28) | (.13) | (.13) | (.24)C |
Distributions from net realized gain | – | (.53) | (1.19) | (.05) | – | (.13)C |
Total distributions | (.20) | (.98) | (1.47) | (.17)D | (.13) | (.37) |
Net asset value, end of period | $23.17 | $18.87 | $18.81 | $18.77 | $18.84 | $16.46 |
Total ReturnE,F,G | 24.06% | 5.68% | 9.75% | .53% | 15.35% | 7.75% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.20%J | 1.11% | 1.00% | 1.00% | 1.10% | 1.19% |
Expenses net of fee waivers, if any | 1.20%J | 1.10% | 1.00% | 1.00% | 1.09% | 1.19% |
Expenses net of all reductions | 1.19%J | 1.09% | .99% | 1.00% | 1.08% | 1.19% |
Net investment income (loss) | .67%J | 1.44%B | 1.47% | 1.39% | 1.18% | 1.08% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $93,783 | $67,291 | $71,916 | $67,457 | $81,229 | $77,787 |
Portfolio turnover rateK | 36%J | 75% | 43%L | 33% | 42% | 46% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.06 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.08%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L 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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.85 | $18.79 | $18.73 | $18.80 | $16.43 | $15.62 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .20B | .21 | .21 | .16 | .12 |
Net realized and unrealized gain (loss) | 4.44 | .79 | 1.26 | (.16) | 2.30 | 1.01 |
Total from investment operations | 4.48 | .99 | 1.47 | .05 | 2.46 | 1.13 |
Distributions from net investment income | (.15) | (.40) | (.23) | (.07) | (.09) | (.19)C |
Distributions from net realized gain | – | (.53) | (1.19) | (.05) | – | (.13)C |
Total distributions | (.15) | (.93) | (1.41)D | (.12) | (.09) | (.32) |
Net asset value, end of period | $23.18 | $18.85 | $18.79 | $18.73 | $18.80 | $16.43 |
Total ReturnE,F,G | 23.95% | 5.37% | 9.51% | .25% | 15.02% | 7.49% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.45%J | 1.37% | 1.26% | 1.27% | 1.36% | 1.46% |
Expenses net of fee waivers, if any | 1.45%J | 1.36% | 1.26% | 1.27% | 1.35% | 1.46% |
Expenses net of all reductions | 1.44%J | 1.35% | 1.26% | 1.26% | 1.35% | 1.45% |
Net investment income (loss) | .42%J | 1.19%B | 1.21% | 1.12% | .91% | .81% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $32,443 | $25,905 | $28,791 | $30,030 | $38,976 | $38,565 |
Portfolio turnover rateK | 36%J | 75% | 43%L | 33% | 42% | 46% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.06 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .83%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L 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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.33 | $18.29 | $18.25 | $18.33 | $16.04 | $15.27 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .10B | .12 | .11 | .07 | .05 |
Net realized and unrealized gain (loss) | 4.33 | .76 | 1.24 | (.16) | 2.24 | .98 |
Total from investment operations | 4.32 | .86 | 1.36 | (.05) | 2.31 | 1.03 |
Distributions from net investment income | (.04) | (.29) | (.13) | – | (.02) | (.13)C |
Distributions from net realized gain | – | (.53) | (1.19) | (.03) | – | (.13)C |
Total distributions | (.04) | (.82) | (1.32) | (.03) | (.02) | (.26) |
Net asset value, end of period | $22.61 | $18.33 | $18.29 | $18.25 | $18.33 | $16.04 |
Total ReturnD,E,F | 23.61% | 4.78% | 8.95% | (.29)% | 14.44% | 6.95% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.99%I | 1.91% | 1.79% | 1.78% | 1.87% | 1.96% |
Expenses net of fee waivers, if any | 1.99%I | 1.90% | 1.79% | 1.78% | 1.86% | 1.96% |
Expenses net of all reductions | 1.98%I | 1.89% | 1.79% | 1.78% | 1.86% | 1.95% |
Net investment income (loss) | (.12)%I | .64%B | .68% | .61% | .40% | .31% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $16,861 | $11,555 | $15,819 | $21,206 | $25,427 | $34,006 |
Portfolio turnover rateJ | 36%I | 75% | 43%K | 33% | 42% | 46% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.06 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .29%.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Value Fund Class I
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.39 | $19.16 | $19.09 | $19.18 | $16.74 | $15.93 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .10 | .30B | .31 | .32 | .26 | .21 |
Net realized and unrealized gain (loss) | 4.56 | .81 | 1.28 | (.17) | 2.35 | 1.02 |
Total from investment operations | 4.66 | 1.11 | 1.59 | .15 | 2.61 | 1.23 |
Distributions from net investment income | (.26) | (.35) | (.34) | (.19) | (.17) | (.29)C |
Distributions from net realized gain | – | (.53) | (1.19) | (.05) | – | (.13)C |
Total distributions | (.26) | (.88) | (1.52)D | (.24) | (.17) | (.42) |
Net asset value, end of period | $23.79 | $19.39 | $19.16 | $19.09 | $19.18 | $16.74 |
Total ReturnE,F | 24.32% | 5.95% | 10.12% | .75% | 15.73% | 8.02% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .91%I | .77% | .72% | .73% | .82% | .91% |
Expenses net of fee waivers, if any | .91%I | .76% | .72% | .72% | .82% | .91% |
Expenses net of all reductions | .90%I | .75% | .72% | .72% | .82% | .91% |
Net investment income (loss) | .96%I | 1.78%B | 1.75% | 1.66% | 1.45% | 1.36% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $25,919 | $16,291 | $18,538 | $122,603 | $136,750 | $22,972 |
Portfolio turnover rateJ | 36%I | 75% | 43%K | 33% | 42% | 46% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.06 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.42%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Equity Value Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.26 | $19.18 | $19.12 | $19.20 | $17.46 |
Income from Investment Operations | |||||
Net investment income (loss)B | .12 | .32C | .33 | .34 | .24 |
Net realized and unrealized gain (loss) | 4.51 | .82 | 1.28 | (.16) | 1.50 |
Total from investment operations | 4.63 | 1.14 | 1.61 | .18 | 1.74 |
Distributions from net investment income | (.27) | (.52) | (.37) | (.21) | – |
Distributions from net realized gain | – | (.53) | (1.19) | (.05) | – |
Total distributions | (.27) | (1.06)D | (1.55)D | (.26) | – |
Net asset value, end of period | $23.62 | $19.26 | $19.18 | $19.12 | $19.20 |
Total ReturnE,F | 24.34% | 6.09% | 10.27% | .91% | 9.97% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .80%I | .70% | .58% | .59% | .69%I |
Expenses net of fee waivers, if any | .80%I | .69% | .58% | .59% | .69%I |
Expenses net of all reductions | .79%I | .68% | .58% | .58% | .68%I |
Net investment income (loss) | 1.07%I | 1.86%C | 1.89% | 1.80% | 1.59%I |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $4,744 | $2,606 | $3,852 | $2,406 | $581 |
Portfolio turnover rateJ | 36%I | 75% | 43%K | 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 one or more large, non-recurring dividend(s) which amounted to $.06 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.50%.
D Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K 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, 2021
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 June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, certain foreign taxes, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $50,222,131 |
Gross unrealized depreciation | (1,099,065) |
Net unrealized appreciation (depreciation) | $49,123,066 |
Tax cost | $126,506,116 |
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 | $(2,171,223) |
Long-term | (4,421,469) |
Total capital loss carryforward | $(6,592,692) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Equity Value Fund | 44,760,195 | 25,500,917 |
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 .57% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors 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% | $98,100 | $2,519 |
Class M | .25% | .25% | 72,110 | 1,250 |
Class C | .75% | .25% | 68,197 | 8,174 |
$238,407 | $11,943 |
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 | $24,600 |
Class M | 2,269 |
Class C(a) | 339 |
$27,208 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $75,612 | .19 |
Class M | 28,026 | .19 |
Class C | 15,876 | .23 |
Class I | 17,283 | .16 |
Class Z | 814 | .04 |
$137,611 |
(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 | $513 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Equity Value Fund | 2,379,843 | 2,060,866 |
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 the Miscellaneous expenses on the Statement of Operations, and are listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Advisor Equity Value Fund | $131 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Equity Value Fund | $10 | $– | $– |
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 expenses. This amount totaled $5,018 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 $191.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Equity Value Fund | ||
Distributions to shareholders | ||
Class A | $709,748 | $3,759,647 |
Class M | 208,993 | 1,389,000 |
Class C | 24,421 | 686,184 |
Class I | 224,961 | 848,755 |
Class Z | 43,034 | 210,615 |
Total | $1,211,157 | $6,894,201 |
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, 2021 | Year ended November 30, 2020 | Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Equity Value Fund | ||||
Class A | ||||
Shares sold | 747,544 | 404,813 | $16,141,276 | $6,728,890 |
Reinvestment of distributions | 35,675 | 195,838 | 686,387 | 3,595,585 |
Shares redeemed | (302,764) | (856,402) | (6,367,603) | (13,656,866) |
Net increase (decrease) | 480,455 | (255,751) | $10,460,060 | $(3,332,391) |
Class M | ||||
Shares sold | 135,677 | 93,950 | $2,937,415 | $1,515,259 |
Reinvestment of distributions | 10,601 | 74,509 | 204,174 | 1,370,213 |
Shares redeemed | (120,855) | (326,419) | (2,526,955) | (5,334,827) |
Net increase (decrease) | 25,423 | (157,960) | $614,634 | $(2,449,355) |
Class C | ||||
Shares sold | 211,448 | 95,407 | $4,444,567 | $1,552,348 |
Reinvestment of distributions | 1,282 | 37,097 | 24,143 | 666,633 |
Shares redeemed | (97,407) | (367,217) | (1,985,477) | (5,908,459) |
Net increase (decrease) | 115,323 | (234,713) | $2,483,233 | $(3,689,478) |
Class I | ||||
Shares sold | 627,876 | 136,802 | $13,603,715 | $2,250,542 |
Reinvestment of distributions | 10,646 | 40,391 | 209,931 | 760,152 |
Shares redeemed | (388,830) | (304,984) | (8,519,485) | (4,914,087) |
Net increase (decrease) | 249,692 | (127,791) | $5,294,161 | $(1,903,393) |
Class Z | ||||
Shares sold | 81,012 | 40,256 | $1,715,325 | $640,402 |
Reinvestment of distributions | 1,708 | 9,538 | 33,426 | 178,071 |
Shares redeemed | (17,229) | (115,287) | (371,375) | (1,961,558) |
Net increase (decrease) | 65,491 | (65,493) | $1,377,376 | $(1,143,085) |
11. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Equity Value Fund | ||||
Class A | 1.20% | |||
Actual | $1,000.00 | $1,240.60 | $6.70 | |
Hypothetical-C | $1,000.00 | $1,018.95 | $6.04 | |
Class M | 1.45% | |||
Actual | $1,000.00 | $1,239.50 | $8.10 | |
Hypothetical-C | $1,000.00 | $1,017.70 | $7.29 | |
Class C | 1.99% | |||
Actual | $1,000.00 | $1,236.10 | $11.09 | |
Hypothetical- C | $1,000.00 | $1,015.01 | $10.00 | |
Class I | .91% | |||
Actual | $1,000.00 | $1,243.20 | $5.09 | |
Hypothetical-C | $1,000.00 | $1,020.39 | $4.58 | |
Class Z | .80% | |||
Actual | $1,000.00 | $1,243.40 | $4.47 | |
Hypothetical-C | $1,000.00 | $1,020.94 | $4.03 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, 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/0001379491-21-003389/img711092983.jpg)
Fidelity Advisor Equity Value Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711093482.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, 2019 through November 30, 2020. 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-0721
1.759108.120
Fidelity Advisor® Growth Opportunities Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Microsoft Corp. | 6.8 |
Alphabet, Inc. Class C | 5.0 |
Amazon.com, Inc. | 4.7 |
Apple, Inc. | 3.8 |
Facebook, Inc. Class A | 3.5 |
Sea Ltd. ADR | 2.5 |
NVIDIA Corp. | 2.4 |
Salesforce.com, Inc. | 1.9 |
T-Mobile U.S., Inc. | 1.8 |
UnitedHealth Group, Inc. | 1.8 |
34.2 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Information Technology | 37.3 |
Communication Services | 21.1 |
Consumer Discretionary | 14.7 |
Health Care | 14.6 |
Industrials | 3.7 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021* | ||
Stocks | 97.8% | |
Convertible Securities | 1.9% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 14.9%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.7% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 21.1% | |||
Entertainment - 5.7% | |||
Activision Blizzard, Inc. | 53,680 | $5,220 | |
Netflix, Inc. (a) | 674,900 | 339,346 | |
Roku, Inc. Class A (a) | 932,720 | 323,383 | |
Sea Ltd. ADR (a) | 2,255,184 | 571,103 | |
Spotify Technology SA (a) | 95,200 | 22,997 | |
The Walt Disney Co. (a) | 268,173 | 47,909 | |
1,309,958 | |||
Interactive Media & Services - 12.2% | |||
Alphabet, Inc.: | |||
Class A (a) | 167,258 | 394,202 | |
Class C (a) | 467,139 | 1,126,534 | |
Facebook, Inc. Class A (a) | 2,450,785 | 805,647 | |
IAC (a) | 117,500 | 18,738 | |
JOYY, Inc. ADR | 508,165 | 39,103 | |
Match Group, Inc. (a) | 253,612 | 36,363 | |
MediaAlpha, Inc. Class A | 292,500 | 12,379 | |
Snap, Inc. Class A (a) | 2,682,400 | 166,631 | |
Vimeo, Inc. (a) | 190,761 | 8,012 | |
Zoominfo Technologies, Inc. (b) | 3,680,600 | 161,321 | |
2,768,930 | |||
Media - 1.4% | |||
Comcast Corp. Class A | 1,928,692 | 110,591 | |
Magnite, Inc. (a) | 5,280,000 | 156,816 | |
TechTarget, Inc. (a) | 815,442 | 57,334 | |
324,741 | |||
Wireless Telecommunication Services - 1.8% | |||
T-Mobile U.S., Inc. | 2,894,725 | 409,459 | |
TOTAL COMMUNICATION SERVICES | 4,813,088 | ||
CONSUMER DISCRETIONARY - 13.9% | |||
Automobiles - 1.7% | |||
Arrival Group (c) | 1,603,317 | 29,229 | |
Lordstown Motors Corp. (c) | 828,055 | 7,378 | |
Neutron Holdings, Inc. (d) | 474,927 | 7 | |
Rad Power Bikes, Inc. (c)(d) | 382,384 | 1,845 | |
Tesla, Inc. (a) | 570,280 | 356,550 | |
395,009 | |||
Diversified Consumer Services - 0.2% | |||
Arco Platform Ltd. Class A (a) | 821,328 | 23,868 | |
FSN E-Commerce Ventures Pvt Ltd. (c)(d) | 77,510 | 11,508 | |
35,376 | |||
Hotels, Restaurants & Leisure - 0.4% | |||
Airbnb, Inc. Class A | 469,900 | 65,974 | |
Penn National Gaming, Inc. (a) | 91,800 | 7,525 | |
Rush Street Interactive, Inc. (c) | 398,700 | 4,948 | |
78,447 | |||
Household Durables - 0.5% | |||
Lovesac (a) | 65,100 | 5,405 | |
Purple Innovation, Inc. (a)(b) | 3,740,300 | 106,673 | |
112,078 | |||
Internet & Direct Marketing Retail - 8.2% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 941,723 | 201,491 | |
Amazon.com, Inc. (a) | 333,967 | 1,076,399 | |
Deliveroo Holdings PLC (a)(b)(e) | 6,405,900 | 22,880 | |
Doordash, Inc. (b) | 150,700 | 22,647 | |
Farfetch Ltd. Class A (a) | 380,000 | 17,605 | |
Global-e Online Ltd. (a) | 1,480,790 | 48,659 | |
Meituan Class B (a)(e) | 2,406,200 | 91,146 | |
Pinduoduo, Inc. ADR (a) | 2,172,716 | 271,329 | |
Porch Group, Inc. Class A (a) | 1,347,400 | 23,067 | |
thredUP, Inc. (a) | 38,653 | 912 | |
Wayfair LLC Class A (a) | 274,271 | 84,075 | |
Zomato Pvt Ltd. (c)(d) | 10,619,500 | 8,524 | |
1,868,734 | |||
Leisure Products - 0.4% | |||
Peloton Interactive, Inc. Class A (a) | 817,200 | 90,145 | |
Specialty Retail - 2.1% | |||
Academy Sports & Outdoors, Inc. | 220,500 | 8,055 | |
American Eagle Outfitters, Inc. | 154,628 | 5,478 | |
Auto1 Group SE (e) | 856,072 | 45,967 | |
Carvana Co. Class A (a)(b) | 1,478,012 | 391,806 | |
Cazoo Holdings Ltd. (c) | 128,891 | 3,934 | |
Shift Technologies, Inc. Class A (a)(b) | 4,138,283 | 29,299 | |
484,539 | |||
Textiles, Apparel & Luxury Goods - 0.4% | |||
Allbirds, Inc. (a)(c)(d) | 23,730 | 256 | |
Bombas LLC (c)(d) | 4,569,969 | 20,197 | |
Capri Holdings Ltd. (a) | 243,800 | 13,826 | |
Deckers Outdoor Corp. (a) | 15,771 | 5,290 | |
Figs, Inc. Class A (a) | 36,800 | 1,257 | |
lululemon athletica, Inc. (a) | 137,410 | 44,401 | |
Paymentus Holdings, Inc. (a) | 42,400 | 1,293 | |
Tapestry, Inc. (a) | 197,500 | 8,866 | |
95,386 | |||
TOTAL CONSUMER DISCRETIONARY | 3,159,714 | ||
CONSUMER STAPLES - 1.4% | |||
Food & Staples Retailing - 1.0% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 1,582,100 | 70,862 | |
Blink Health, Inc. Series A1 (c)(d) | 56,119 | 1,832 | |
Costco Wholesale Corp. | 350,100 | 132,432 | |
Oatly Group AB ADR (a)(b) | 252,900 | 5,996 | |
Sweetgreen, Inc. warrants 1/21/26 (a)(c)(d) | 376,789 | 1,488 | |
212,610 | |||
Food Products - 0.4% | |||
AppHarvest, Inc. (c) | 3,990,851 | 63,125 | |
AppHarvest, Inc. (a)(b) | 969,200 | 16,137 | |
Beyond Meat, Inc. (a)(b) | 112,444 | 16,352 | |
95,614 | |||
Tobacco - 0.0% | |||
JUUL Labs, Inc. Class B (a)(c)(d) | 2,772 | 155 | |
TOTAL CONSUMER STAPLES | 308,379 | ||
ENERGY - 1.2% | |||
Oil, Gas & Consumable Fuels - 1.2% | |||
Reliance Industries Ltd. | 8,704,778 | 259,312 | |
Reliance Industries Ltd. | 497,403 | 8,351 | |
267,663 | |||
FINANCIALS - 2.5% | |||
Banks - 0.6% | |||
Wells Fargo & Co. | 3,147,800 | 147,065 | |
Capital Markets - 0.2% | |||
Coinbase Global, Inc. (a)(b) | 17,900 | 4,234 | |
XP, Inc. Class A (a) | 838,136 | 33,240 | |
37,474 | |||
Consumer Finance - 0.9% | |||
Capital One Financial Corp. | 424,500 | 68,251 | |
LendingTree, Inc. (a)(b) | 609,288 | 125,056 | |
193,307 | |||
Diversified Financial Services - 0.6% | |||
Deerfield Healthcare Technology Acquisitions Corp. Class A (a)(b)(f) | 1,581,252 | 20,319 | |
Flywire Corp. (a) | 474,373 | 16,290 | |
Jaws Acquisition Corp. (a) | 1,094,034 | 15,874 | |
Northern Star Acquisition Corp. Class A (b)(f) | 867,578 | 9,691 | |
Rapyd Financial Network 2016 Ltd. (d) | 340,545 | 25,000 | |
Social Finance, Inc. (c) | 1,932,324 | 35,043 | |
TS Innovation Acquisitions Corp. (a)(b) | 1,166,500 | 12,493 | |
View, Inc. (c) | 1,205,473 | 9,070 | |
143,780 | |||
Insurance - 0.2% | |||
Goosehead Insurance | 268,000 | 24,085 | |
Palomar Holdings, Inc. (a)(b) | 256,869 | 18,751 | |
Trupanion, Inc. (a)(b) | 150,725 | 13,591 | |
56,427 | |||
TOTAL FINANCIALS | 578,053 | ||
HEALTH CARE - 14.6% | |||
Biotechnology - 5.3% | |||
AbbVie, Inc. | 664,900 | 75,267 | |
ADC Therapeutics SA (a) | 238,174 | 5,156 | |
Agios Pharmaceuticals, Inc. (a) | 1,010,600 | 56,371 | |
Alnylam Pharmaceuticals, Inc. (a) | 566,635 | 80,457 | |
Applied Therapeutics, Inc. (a) | 484,100 | 9,309 | |
Arcutis Biotherapeutics, Inc. (a) | 238,200 | 6,277 | |
Argenx SE ADR (a) | 154,199 | 43,020 | |
Ascendis Pharma A/S sponsored ADR (a) | 67,662 | 9,092 | |
Aurinia Pharmaceuticals, Inc. (a)(b) | 1,401,300 | 20,347 | |
Crinetics Pharmaceuticals, Inc. (a) | 570,461 | 10,012 | |
Cullinan Oncology, Inc. | 82,900 | 2,465 | |
Cytokinetics, Inc. (a) | 584,000 | 12,749 | |
Exelixis, Inc. (a) | 1,032,031 | 23,272 | |
Forma Therapeutics Holdings, Inc. | 273,900 | 7,688 | |
Fusion Pharmaceuticals, Inc. (a) | 141,767 | 1,164 | |
Generation Bio Co. | 131,000 | 4,488 | |
Gritstone Bio, Inc. (a)(b) | 1,099,408 | 10,115 | |
Instil Bio, Inc. (a) | 641,532 | 11,419 | |
Keros Therapeutics, Inc. (a) | 277,800 | 15,157 | |
Kura Oncology, Inc. (a) | 263,507 | 5,863 | |
Mirati Therapeutics, Inc. (a) | 190,500 | 30,128 | |
Moderna, Inc. (a) | 283,500 | 52,450 | |
Morphic Holding, Inc. (a) | 208,036 | 10,269 | |
Neurocrine Biosciences, Inc. (a) | 1,379,902 | 132,774 | |
Novavax, Inc. (a)(b) | 813,300 | 120,059 | |
ORIC Pharmaceuticals, Inc. (a) | 81,899 | 1,871 | |
Passage Bio, Inc. (a) | 398,600 | 5,281 | |
Poseida Therapeutics, Inc. (a) | 61,100 | 516 | |
Prelude Therapeutics, Inc. | 391,600 | 13,612 | |
Protagonist Therapeutics, Inc. (a) | 410,100 | 14,399 | |
PTC Therapeutics, Inc. (a) | 58,900 | 2,313 | |
Regeneron Pharmaceuticals, Inc. (a) | 514,653 | 258,577 | |
Relay Therapeutics, Inc. (a) | 569,985 | 18,308 | |
Repare Therapeutics, Inc. | 22,200 | 718 | |
Revolution Medicines, Inc. (a) | 511,000 | 15,284 | |
Sage Therapeutics, Inc. (a) | 53,547 | 3,727 | |
Sarepta Therapeutics, Inc. (a) | 635,893 | 48,105 | |
TG Therapeutics, Inc. (a) | 505,700 | 17,634 | |
Translate Bio, Inc. (a) | 924,700 | 16,654 | |
Vaxcyte, Inc. | 460,543 | 9,704 | |
Zentalis Pharmaceuticals, Inc. (a) | 545,300 | 30,455 | |
Zymeworks, Inc. (a) | 77,800 | 2,427 | |
1,214,953 | |||
Health Care Equipment & Supplies - 2.9% | |||
Boston Scientific Corp. (a) | 4,618,674 | 196,525 | |
Danaher Corp. | 300,100 | 76,868 | |
DexCom, Inc. (a) | 203,526 | 75,180 | |
Hologic, Inc. (a) | 786,318 | 49,585 | |
Insulet Corp. (a) | 146,810 | 39,590 | |
JEOL Ltd. | 48,200 | 2,474 | |
Novocure Ltd. (a) | 557,424 | 113,714 | |
Penumbra, Inc. (a) | 171,663 | 42,763 | |
TransMedics Group, Inc. (a)(f) | 2,347,117 | 60,180 | |
ViewRay, Inc. (a) | 620,700 | 3,650 | |
660,529 | |||
Health Care Providers & Services - 5.1% | |||
1Life Healthcare, Inc. (a) | 4,152,263 | 153,634 | |
Alignment Healthcare, Inc. (a) | 909,900 | 22,957 | |
Centene Corp. (a) | 1,724,644 | 126,934 | |
Cigna Corp. | 387,805 | 100,383 | |
Clover Health Investments Corp. (c) | 268,500 | 2,051 | |
Clover Health Investments Corp. Class B | 544,383 | 3,951 | |
Humana, Inc. | 572,560 | 250,610 | |
Oak Street Health, Inc. (a)(b) | 1,488,400 | 89,884 | |
UnitedHealth Group, Inc. | 980,167 | 403,750 | |
1,154,154 | |||
Health Care Technology - 0.5% | |||
agilon health, Inc. (a) | 1,369,700 | 49,227 | |
GoodRx Holdings, Inc. (b) | 786,200 | 29,176 | |
Inspire Medical Systems, Inc. (a) | 145,400 | 28,251 | |
106,654 | |||
Life Sciences Tools & Services - 0.3% | |||
10X Genomics, Inc. (a) | 38,840 | 6,991 | |
Maravai LifeSciences Holdings, Inc. | 700,700 | 26,304 | |
Sartorius Stedim Biotech | 86,300 | 37,401 | |
70,696 | |||
Pharmaceuticals - 0.5% | |||
Horizon Therapeutics PLC (a) | 323,500 | 29,652 | |
IMARA, Inc. (a)(f) | 1,222,046 | 8,884 | |
Intra-Cellular Therapies, Inc. (a) | 132,600 | 5,226 | |
Nabriva Therapeutics PLC (a)(b) | 1,126,502 | 1,555 | |
Nabriva Therapeutics PLC warrants 6/1/22 (a) | 6,814,048 | 0 | |
Nektar Therapeutics (a) | 2,254,071 | 40,731 | |
Nuvation Bio, Inc. (c) | 1,599,372 | 21,606 | |
Nuvation Bio, Inc. | 360,498 | 4,870 | |
Terns Pharmaceuticals, Inc. | 671,300 | 11,486 | |
Theravance Biopharma, Inc. (a) | 172,927 | 2,988 | |
126,998 | |||
TOTAL HEALTH CARE | 3,333,984 | ||
INDUSTRIALS - 3.2% | |||
Aerospace & Defense - 0.0% | |||
Space Exploration Technologies Corp. Class A (a)(c)(d) | 8,500 | 3,570 | |
Air Freight & Logistics - 0.3% | |||
InPost SA | 3,143,300 | 62,984 | |
Building Products - 0.2% | |||
The AZEK Co., Inc. | 910,700 | 39,643 | |
Electrical Equipment - 0.6% | |||
Sunrun, Inc. (a) | 2,035,572 | 91,031 | |
Vestas Wind Systems A/S | 1,451,300 | 56,509 | |
147,540 | |||
Marine - 0.0% | |||
Star Bulk Carriers Corp. | 113,220 | 2,209 | |
Road & Rail - 2.1% | |||
Lyft, Inc. (a) | 2,833,313 | 161,754 | |
TuSimple Holdings, Inc. (a) | 433,800 | 16,632 | |
Uber Technologies, Inc. (a) | 5,818,281 | 295,743 | |
474,129 | |||
TOTAL INDUSTRIALS | 730,075 | ||
INFORMATION TECHNOLOGY - 37.0% | |||
Communications Equipment - 0.3% | |||
Lumentum Holdings, Inc. (a) | 756,300 | 61,540 | |
Electronic Equipment & Components - 0.3% | |||
Flex Ltd. (a) | 2,050,100 | 37,455 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 512,000 | 2,108 | |
Jabil, Inc. | 535,000 | 30,201 | |
69,764 | |||
IT Services - 6.2% | |||
Affirm Holdings, Inc. (b) | 50,400 | 3,065 | |
Afterpay Ltd. (a) | 264,403 | 18,985 | |
EPAM Systems, Inc. (a) | 70,473 | 33,658 | |
Global Payments, Inc. | 411,612 | 79,733 | |
GoDaddy, Inc. (a) | 2,643,704 | 214,034 | |
MasterCard, Inc. Class A | 258,112 | 93,070 | |
MongoDB, Inc. Class A (a) | 227,412 | 66,391 | |
Nuvei Corp. (e) | 1,321,500 | 99,381 | |
PayPal Holdings, Inc. (a) | 532,177 | 138,377 | |
Repay Holdings Corp. (a) | 1,560,700 | 35,443 | |
Riskified Ltd. (a)(c)(d) | 641,425 | 7,376 | |
Riskified Ltd. warrants (a)(c)(d) | 818 | 0 | |
Snowflake Computing, Inc. | 50,644 | 12,055 | |
Square, Inc. (a) | 721,100 | 160,459 | |
Twilio, Inc. Class A (a) | 368,591 | 123,847 | |
Visa, Inc. Class A | 433,561 | 98,548 | |
Wix.com Ltd. (a)(b) | 890,646 | 231,443 | |
1,415,865 | |||
Semiconductors & Semiconductor Equipment - 8.3% | |||
Applied Materials, Inc. | 1,494,601 | 206,449 | |
Cirrus Logic, Inc. (a) | 75,400 | 5,886 | |
Enphase Energy, Inc. (a) | 238,700 | 34,146 | |
Lam Research Corp. | 258,376 | 167,906 | |
Marvell Technology, Inc. | 2,065,479 | 99,763 | |
Micron Technology, Inc. (a) | 3,291,172 | 276,919 | |
NVIDIA Corp. | 840,768 | 546,314 | |
NXP Semiconductors NV | 1,590,972 | 336,363 | |
ON Semiconductor Corp. (a) | 2,523,561 | 101,043 | |
Semtech Corp. (a) | 119,300 | 7,516 | |
SolarEdge Technologies, Inc. (a) | 280,760 | 72,439 | |
SunPower Corp. (a)(b) | 62,300 | 1,457 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 187,200 | 21,970 | |
1,878,171 | |||
Software - 17.7% | |||
ACV Auctions, Inc. | 1,216,743 | 28,384 | |
ACV Auctions, Inc. Class A (a)(b) | 451,681 | 11,708 | |
Adobe, Inc. (a) | 418,130 | 210,980 | |
Alkami Technology, Inc. | 899,637 | 26,938 | |
Alkami Technology, Inc. (a) | 11,800 | 393 | |
Alteryx, Inc. Class A (a) | 19,000 | 1,478 | |
Anaplan, Inc. (a) | 1,298,500 | 66,886 | |
Autodesk, Inc. (a) | 271,065 | 77,487 | |
BTRS Holdings, Inc. (c) | 1,599,340 | 22,871 | |
Ceridian HCM Holding, Inc. (a) | 775,300 | 69,358 | |
Cloudflare, Inc. (a) | 368,441 | 30,234 | |
Coupa Software, Inc. (a) | 161,598 | 38,493 | |
Digital Turbine, Inc. (a) | 1,620,900 | 107,255 | |
DocuSign, Inc. (a) | 100,978 | 20,359 | |
DoubleVerify Holdings, Inc. (a) | 1,048,900 | 38,694 | |
DoubleVerify Holdings, Inc. | 1,082,557 | 35,942 | |
Dynatrace, Inc. (a) | 3,950,900 | 204,420 | |
Elastic NV (a) | 505,240 | 59,724 | |
Epic Games, Inc. (c)(d) | 56,200 | 49,737 | |
Everbridge, Inc. (a)(b) | 45,396 | 5,334 | |
fuboTV, Inc. (a)(b) | 2,073,900 | 49,234 | |
HubSpot, Inc. (a) | 302,749 | 152,701 | |
Intuit, Inc. | 304,508 | 133,706 | |
Lightspeed POS, Inc. (Canada) (a) | 2,232,773 | 162,288 | |
Microsoft Corp. | 6,229,015 | 1,555,264 | |
Olo, Inc. (a)(b) | 82,700 | 2,799 | |
RingCentral, Inc. (a) | 71,791 | 18,843 | |
Salesforce.com, Inc. (a) | 1,816,838 | 432,589 | |
ServiceNow, Inc. (a) | 230,258 | 109,115 | |
Stripe, Inc. Class B (a)(c)(d) | 73,500 | 2,949 | |
Technology One Ltd. | 323,796 | 2,305 | |
The Trade Desk, Inc. (a) | 61,751 | 36,318 | |
Viant Technology, Inc. (b) | 1,411,593 | 41,204 | |
Volue A/S | 2,091,675 | 13,004 | |
Workday, Inc. Class A (a) | 344,872 | 78,879 | |
Zendesk, Inc. (a) | 154,000 | 21,046 | |
Zoom Video Communications, Inc. Class A (a) | 355,800 | 117,958 | |
Zuora, Inc. (a) | 268,000 | 4,146 | |
4,041,023 | |||
Technology Hardware, Storage & Peripherals - 4.2% | |||
Apple, Inc. | 6,873,060 | 856,452 | |
Samsung Electronics Co. Ltd. | 1,330,800 | 96,650 | |
953,102 | |||
TOTAL INFORMATION TECHNOLOGY | 8,419,465 | ||
MATERIALS - 0.8% | |||
Chemicals - 0.0% | |||
Corbion NV | 124,365 | 7,239 | |
Metals & Mining - 0.8% | |||
First Quantum Minerals Ltd. | 1,017,700 | 25,042 | |
Freeport-McMoRan, Inc. | 3,663,100 | 156,488 | |
181,530 | |||
TOTAL MATERIALS | 188,769 | ||
UTILITIES - 2.0% | |||
Electric Utilities - 1.2% | |||
Edison International | 1,271,421 | 71,034 | |
FirstEnergy Corp. | 908,200 | 34,430 | |
NextEra Energy, Inc. | 584,312 | 42,783 | |
ORSTED A/S (e) | 787,956 | 119,561 | |
267,808 | |||
Independent Power and Renewable Electricity Producers - 0.8% | |||
Brookfield Renewable Corp. (b) | 422,650 | 17,911 | |
NextEra Energy Partners LP | 1,621,200 | 110,841 | |
The AES Corp. | 1,892,600 | 48,091 | |
176,843 | |||
TOTAL UTILITIES | 444,651 | ||
TOTAL COMMON STOCKS | |||
(Cost $13,703,357) | 22,243,841 | ||
Preferred Stocks - 2.0% | |||
Convertible Preferred Stocks - 1.9% | |||
COMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Starry, Inc. Series D (a)(c)(d) | 1,493,700 | 2,509 | |
CONSUMER DISCRETIONARY - 0.6% | |||
Automobiles - 0.3% | |||
Bird Rides, Inc. (c) | 1,943,700 | 14,532 | |
Rad Power Bikes, Inc.: | |||
Series A (c)(d) | 49,852 | 240 | |
Series C (c)(d) | 196,163 | 946 | |
Rivian Automotive, Inc.: | |||
Series E (c)(d) | 1,336,833 | 49,262 | |
Series F (c)(d) | 262,266 | 9,665 | |
74,645 | |||
Internet & Direct Marketing Retail - 0.3% | |||
GoBrands, Inc. Series G (c)(d) | 70,400 | 17,580 | |
Instacart, Inc.: | |||
Series H (c)(d) | 267,054 | 33,382 | |
Series I (c)(d) | 90,554 | 11,319 | |
62,281 | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (a)(c)(d) | 9,365 | 101 | |
Series B (a)(c)(d) | 1,645 | 18 | |
Series C (a)(c)(d) | 15,730 | 170 | |
Series Seed (a)(c)(d) | 5,030 | 54 | |
343 | |||
TOTAL CONSUMER DISCRETIONARY | 137,269 | ||
CONSUMER STAPLES - 0.3% | |||
Food & Staples Retailing - 0.1% | |||
Blink Health, Inc. Series C (a)(c)(d) | 209,590 | 6,841 | |
Sweetgreen, Inc.: | |||
Series C (a)(c)(d) | 3,842 | 51 | |
Series D (a)(c)(d) | 61,801 | 813 | |
Series I (a)(c)(d) | 145,657 | 1,915 | |
Series J (c)(d) | 376,789 | 4,955 | |
14,575 | |||
Food Products - 0.1% | |||
Bowery Farming, Inc. Series C1 (c)(d) | 404,785 | 24,388 | |
Tobacco - 0.1% | |||
JUUL Labs, Inc.: | |||
Series C (a)(c)(d) | 566,439 | 31,658 | |
Series D (a)(c)(d) | 3,671 | 205 | |
31,863 | |||
TOTAL CONSUMER STAPLES | 70,826 | ||
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Sonder Holdings, Inc.: | |||
Series D1 (c) | 126,152 | 1,784 | |
Series E (a)(c) | 757,018 | 10,703 | |
12,487 | |||
INDUSTRIALS - 0.5% | |||
Aerospace & Defense - 0.2% | |||
Relativity Space, Inc. Series E (c)(d) | 1,068,417 | 24,397 | |
Space Exploration Technologies Corp.: | |||
Series I (a)(c)(d) | 16,438 | 6,904 | |
Series N (c)(d) | 51,400 | 21,587 | |
52,888 | |||
Construction & Engineering - 0.2% | |||
Beta Technologies, Inc. Series A (c)(d) | 441,839 | 32,374 | |
Road & Rail - 0.1% | |||
Convoy, Inc. Series D (a)(c)(d) | 1,038,289 | 13,373 | |
Transportation Infrastructure - 0.0% | |||
Delhivery Pvt Ltd. Series H (c)(d) | 10,397 | 5,112 | |
TOTAL INDUSTRIALS | 103,747 | ||
INFORMATION TECHNOLOGY - 0.3% | |||
Communications Equipment - 0.0% | |||
Xsight Labs Ltd. Series D (c)(d) | 501,100 | 4,007 | |
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. Series E (c)(d) | 7,873,996 | 8,730 | |
IT Services - 0.2% | |||
ByteDance Ltd. Series E1 (c)(d) | 116,411 | 12,756 | |
Riskified Ltd. Series E (a)(c)(d) | 97,500 | 1,121 | |
Yanka Industries, Inc.: | |||
Series E (c)(d) | 341,047 | 10,871 | |
Series F (c)(d) | 380,955 | 12,144 | |
36,892 | |||
Semiconductors & Semiconductor Equipment - 0.0% | |||
SiMa Ai Series B (c)(d) | 1,198,500 | 6,145 | |
Tenstorrent, Inc. Series C1 (c)(d) | 32,900 | 1,956 | |
8,101 | |||
Software - 0.1% | |||
Databricks, Inc. Series G (c)(d) | 60,400 | 10,713 | |
Stripe, Inc. Series H (c)(d) | 30,700 | 1,232 | |
Thoughtworks, Inc. Series A (c)(d) | 13,782 | 7,738 | |
19,683 | |||
TOTAL INFORMATION TECHNOLOGY | 77,413 | ||
MATERIALS - 0.1% | |||
Metals & Mining - 0.1% | |||
Diamond Foundry, Inc. Series C (c)(d) | 674,317 | 16,184 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 420,435 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
COMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Starry, Inc. Series E1 (c)(d) | 4,395,224 | 7,384 | |
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc. Series 1C (c)(d) | 6,477,300 | 89 | |
Waymo LLC Series A2 (c)(d) | 47,838 | 4,108 | |
4,197 | |||
Specialty Retail - 0.1% | |||
Cazoo Holdings Ltd.: | |||
Series A (c) | 4,209 | 128 | |
Series B (c) | 73,670 | 2,248 | |
Series C (c) | 1,497 | 46 | |
Series D (c) | 263,176 | 8,032 | |
10,454 | |||
TOTAL CONSUMER DISCRETIONARY | 14,651 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 22,035 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $337,056) | 442,470 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
4% 5/22/27 (c)(d) | 843 | 843 | |
4% 6/12/27 (c)(d) | 232 | 232 | |
TOTAL CONVERTIBLE BONDS | |||
(Cost $1,075) | 1,075 | ||
Preferred Securities - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Internet & Direct Marketing Retail - 0.1% | |||
Circle Internet Financial Ltd. 0% (c)(d)(g) | 24,310 | 24,310 | |
INFORMATION TECHNOLOGY - 0.0% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. 0% 1/29/23 (c)(d) | 3,352 | 3,352 | |
Semiconductors & Semiconductor Equipment - 0.0% | |||
Tenstorrent, Inc. 0% (c)(d)(g) | 1,830 | 1,830 | |
TOTAL INFORMATION TECHNOLOGY | 5,182 | ||
TOTAL PREFERRED SECURITIES | |||
(Cost $29,492) | 29,492 | ||
Shares | Value (000s) | ||
Money Market Funds - 2.5% | |||
Fidelity Cash Central Fund 0.03% (h) | 79,037,338 | 79,053 | |
Fidelity Securities Lending Cash Central Fund 0.03% (h)(i) | 489,803,098 | 489,852 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $568,905) | 568,905 | ||
Equity Funds - 0.0% | |||
Domestic Equity Funds - 0.0% | |||
iShares Russell 1000 Growth Index ETF | |||
(Cost $3,969) | 16,000 | 4,098 | |
TOTAL INVESTMENT IN SECURITIES - 102.3% | |||
(Cost $14,643,854) | 23,289,881 | ||
NET OTHER ASSETS (LIABILITIES) - (2.3)% | (513,021) | ||
NET ASSETS - 100% | $22,776,860 |
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) 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 $781,729,000 or 3.4% of net assets.
(d) Level 3 security
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $378,935,000 or 1.7% of net assets.
(f) Affiliated company
(g) Security is perpetual in nature with no stated maturity date.
(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) |
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 |
AppHarvest, Inc. | 1/29/21 | $39,909 |
Arrival Group | 3/24/21 | $16,033 |
Beta Technologies, Inc. Series A | 4/9/21 | $32,374 |
Bird Rides, Inc. | 2/12/21 - 4/20/21 | $10,084 |
Blink Health, Inc. Series A1 | 12/30/20 | $1,520 |
Blink Health, Inc. Series C | 11/7/19 - 1/21/21 | $8,001 |
Bombas LLC | 2/16/21 | $20,197 |
Bowery Farming, Inc. Series C1 | 5/18/21 | $24,388 |
BTRS Holdings, Inc. | 1/12/21 | $15,993 |
ByteDance Ltd. Series E1 | 11/18/20 | $12,756 |
Cazoo Holdings Ltd. | 9/30/20 | $1,767 |
Cazoo Holdings Ltd. Series A | 9/30/20 | $58 |
Cazoo Holdings Ltd. Series B | 9/30/20 | $1,010 |
Cazoo Holdings Ltd. Series C | 9/30/20 | $21 |
Cazoo Holdings Ltd. Series D | 9/30/20 | $3,608 |
Circle Internet Financial Ltd. 0% | 5/11/21 | $24,310 |
Clover Health Investments Corp. | 1/5/21 | $2,685 |
Convoy, Inc. Series D | 10/30/19 | $14,058 |
Databricks, Inc. Series G | 2/1/21 | $10,713 |
Delhivery Pvt Ltd. Series H | 5/20/21 | $5,075 |
Diamond Foundry, Inc. Series C | 3/15/21 | $16,184 |
Enevate Corp. Series E | 1/29/21 | $8,730 |
Enevate Corp. 0% 1/29/23 | 1/29/21 | $3,352 |
Epic Games, Inc. | 7/13/20 - 3/29/21 | $45,615 |
FSN E-Commerce Ventures Pvt Ltd. | 10/7/20 - 10/26/20 | $6,381 |
GoBrands, Inc. Series G | 3/2/21 | $17,580 |
Instacart, Inc. Series H | 11/13/20 | $16,023 |
Instacart, Inc. Series I | 2/26/21 | $11,319 |
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 |
Lordstown Motors Corp. | 10/23/20 | $8,281 |
Neutron Holdings, Inc. Series 1C | 7/3/18 | $1,184 |
Neutron Holdings, Inc. 4% 5/22/27 | 6/4/20 | $843 |
Neutron Holdings, Inc. 4% 6/12/27 | 6/12/20 | $232 |
Nuvation Bio, Inc. | 2/10/21 | $15,994 |
Rad Power Bikes, Inc. | 1/21/21 | $1,845 |
Rad Power Bikes, Inc. Series A | 1/21/21 | $240 |
Rad Power Bikes, Inc. Series C | 1/21/21 | $946 |
Relativity Space, Inc. Series E | 5/27/21 | $24,397 |
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 |
Rivian Automotive, Inc. Series E | 7/10/20 | $20,708 |
Rivian Automotive, Inc. Series F | 1/19/21 | $9,665 |
Rush Street Interactive, Inc. | 12/29/20 | $3,987 |
SiMa Ai Series B | 5/10/21 | $6,145 |
Social Finance, Inc. | 1/7/21 | $19,323 |
Sonder Holdings, Inc. Series D1 | 12/20/19 | $1,324 |
Sonder Holdings, Inc. Series E | 4/3/20 - 5/6/20 | $8,150 |
Space Exploration Technologies Corp. Class A | 2/16/21 | $3,570 |
Space Exploration Technologies Corp. Series I | 4/5/18 | $2,778 |
Space Exploration Technologies Corp. Series N | 8/4/20 | $13,878 |
Starry, Inc. Series D | 7/30/20 | $2,136 |
Starry, Inc. Series E1 | 9/4/20 | $6,184 |
Stripe, Inc. Class B | 5/18/21 | $2,949 |
Stripe, Inc. Series H | 3/15/21 | $1,232 |
Sweetgreen, Inc. warrants 1/21/26 | 1/21/21 | $0 |
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 |
Sweetgreen, Inc. Series J | 1/21/21 | $6,443 |
Tenstorrent, Inc. Series C1 | 4/23/21 | $1,956 |
Tenstorrent, Inc. 0% | 4/23/21 | $1,830 |
Thoughtworks, Inc. Series A | 1/13/21 | $8,437 |
View, Inc. | 3/5/21 | $12,055 |
Waymo LLC Series A2 | 5/8/20 | $4,108 |
Xsight Labs Ltd. Series D | 2/16/21 | $4,007 |
Yanka Industries, Inc. Series E | 5/15/20 | $4,120 |
Yanka Industries, Inc. Series F | 4/8/21 | $12,144 |
Zomato Pvt Ltd. | 12/9/20 - 2/10/21 | $7,456 |
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 | $19 |
Fidelity Securities Lending Cash Central Fund | 1,362 |
Total | $1,381 |
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 |
Deerfield Healthcare Technology Acquisitions Corp. Class A | $-- | $24,592 | $-- | $-- | $-- | $(4,273) | $20,319 |
IMARA, Inc. | 6,296 | 11,823 | -- | -- | -- | (9,235) | 8,884 |
Nabriva Therapeutics PLC | 4,810 | -- | -- | -- | -- | (3,255) | -- |
Northern Star Acquisition Corp. Class A | -- | 10,011 | -- | -- | -- | (320) | 9,691 |
TransMedics Group, Inc. | 31,276 | 9,515 | -- | -- | -- | 19,389 | 60,180 |
Total | $42,382 | $55,941 | $-- | $-- | $-- | $2,306 | $99,074 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2021, 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 | $4,822,981 | $4,813,088 | $-- | $9,893 |
Consumer Discretionary | 3,311,634 | 3,076,836 | 65,527 | 169,271 |
Consumer Staples | 379,205 | 241,779 | 63,125 | 74,301 |
Energy | 267,663 | 259,312 | 8,351 | -- |
Financials | 590,540 | 508,940 | 56,600 | 25,000 |
Health Care | 3,333,984 | 3,303,557 | 30,427 | -- |
Industrials | 833,822 | 726,505 | -- | 107,317 |
Information Technology | 8,496,878 | 8,268,139 | 91,264 | 137,475 |
Materials | 204,953 | 188,769 | -- | 16,184 |
Utilities | 444,651 | 444,651 | -- | -- |
Corporate Bonds | 1,075 | -- | -- | 1,075 |
Preferred Securities | 29,492 | -- | -- | 29,492 |
Money Market Funds | 568,905 | 568,905 | -- | -- |
Equity Funds | 4,098 | 4,098 | -- | -- |
Total Investments in Securities: | $23,289,881 | $22,404,579 | $315,294 | $570,008 |
Net unrealized apppreciation on unfunded commitments | $12,752 | $-- | $12,752 | $-- |
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 | $238,452 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 65,482 |
Cost of Purchases | 334,509 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | 6,229 |
Transfers out of Level 3 | (74,664) |
Ending Balance | $570,008 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2021 | $65,482 |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through in-kind transactions. 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 | 85.1% |
Cayman Islands | 5.3% |
Netherlands | 2.0% |
Canada | 1.4% |
Israel | 1.3% |
India | 1.3% |
Others (Individually Less Than 1%) | 3.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $474,025) — See accompanying schedule: Unaffiliated issuers (cost $13,977,098) | $22,621,902 | |
Fidelity Central Funds (cost $568,905) | 568,905 | |
Other affiliated issuers (cost $97,851) | 99,074 | |
Total Investment in Securities (cost $14,643,854) | $23,289,881 | |
Foreign currency held at value (cost $2,155) | 2,158 | |
Receivable for investments sold | 84,547 | |
Net unrealized appreciation on unfunded commitments | 31,069 | |
Receivable for fund shares sold | 27,135 | |
Dividends receivable | 5,836 | |
Interest receivable | 43 | |
Distributions receivable from Fidelity Central Funds | 178 | |
Prepaid expenses | 3 | |
Other receivables | 120 | |
Total assets | 23,440,970 | |
Liabilities | ||
Payable for investments purchased | $108,991 | |
Net unrealized depreciation on unfunded commitments | 18,317 | |
Payable for fund shares redeemed | 16,208 | |
Accrued management fee | 11,298 | |
Distribution and service plan fees payable | 3,246 | |
Other affiliated payables | 2,872 | |
Other payables and accrued expenses | 13,345 | |
Collateral on securities loaned | 489,833 | |
Total liabilities | 664,110 | |
Net Assets | $22,776,860 | |
Net Assets consist of: | ||
Paid in capital | $12,668,029 | |
Total accumulated earnings (loss) | 10,108,831 | |
Net Assets | $22,776,860 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($3,707,804 ÷ 24,732 shares)(a) | $149.92 | |
Maximum offering price per share (100/94.25 of $149.92) | $159.07 | |
Class M: | ||
Net Asset Value and redemption price per share ($3,450,313 ÷ 23,327 shares)(a) | $147.91 | |
Maximum offering price per share (100/96.50 of $147.91) | $153.27 | |
Class C: | ||
Net Asset Value and offering price per share ($1,355,864 ÷ 10,910 shares)(a) | $124.28 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($10,620,489 ÷ 64,708 shares) | $164.13 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($3,642,390 ÷ 21,950 shares) | $165.94 |
(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
Amounts in thousands | Six months ended May 31, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $39,863 | |
Interest | 21 | |
Income from Fidelity Central Funds (including $1,362 from security lending) | 1,381 | |
Total income | 41,265 | |
Expenses | ||
Management fee | ||
Basic fee | $56,276 | |
Performance adjustment | 8,752 | |
Transfer agent fees | 15,448 | |
Distribution and service plan fees | 19,552 | |
Accounting fees | 876 | |
Custodian fees and expenses | 199 | |
Independent trustees' fees and expenses | 40 | |
Registration fees | 410 | |
Audit | 36 | |
Legal | 15 | |
Interest | 10 | |
Miscellaneous | 36 | |
Total expenses before reductions | 101,650 | |
Expense reductions | (479) | |
Total expenses after reductions | 101,171 | |
Net investment income (loss) | (59,906) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $15) | 1,570,196 | |
Fidelity Central Funds | 10 | |
Foreign currency transactions | (598) | |
Total net realized gain (loss) | 1,569,608 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $2,324) | 735,072 | |
Affiliated issuers | 2,306 | |
Unfunded commitments | 12,752 | |
Assets and liabilities in foreign currencies | 14 | |
Total change in net unrealized appreciation (depreciation) | 750,144 | |
Net gain (loss) | 2,319,752 | |
Net increase (decrease) in net assets resulting from operations | $2,259,846 |
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, 2021 (Unaudited) | Year ended November 30, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(59,906) | $(54,435) |
Net realized gain (loss) | 1,569,608 | 1,119,703 |
Change in net unrealized appreciation (depreciation) | 750,144 | 5,464,667 |
Net increase (decrease) in net assets resulting from operations | 2,259,846 | 6,529,935 |
Distributions to shareholders | (1,000,270) | (317,586) |
Share transactions - net increase (decrease) | 3,060,331 | 4,384,792 |
Total increase (decrease) in net assets | 4,319,907 | 10,597,141 |
Net Assets | ||
Beginning of period | 18,456,953 | 7,859,812 |
End of period | $22,776,860 | $18,456,953 |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $141.06 | $90.00 | $76.87 | $68.76 | $58.24 | $66.87 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.48) | (.56) | (.18)B | (.25) | .04 | .07 |
Net realized and unrealized gain (loss) | 17.07 | 55.26 | 21.21 | 13.33 | 17.86 | (1.46) |
Total from investment operations | 16.59 | 54.70 | 21.03 | 13.08 | 17.90 | (1.39) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (7.73) | (3.64) | (7.90) | (4.97) | (7.38) | (7.24) |
Total distributions | (7.73) | (3.64) | (7.90) | (4.97) | (7.38) | (7.24) |
Net asset value, end of period | $149.92 | $141.06 | $90.00 | $76.87 | $68.76 | $58.24 |
Total ReturnC,D,E | 12.10% | 63.12% | 31.29% | 20.35% | 34.64% | (2.37)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.04%H | 1.06% | 1.11% | 1.05% | .91% | .86% |
Expenses net of fee waivers, if any | 1.04%H | 1.06% | 1.11% | 1.05% | .91% | .86% |
Expenses net of all reductions | 1.03%H | 1.06% | 1.10% | 1.05% | .91% | .86% |
Net investment income (loss) | (.65)%H | (.52)% | (.22)%B | (.33)% | .06% | .13% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $3,708 | $3,037 | $1,349 | $673 | $540 | $502 |
Portfolio turnover rateI | 70%H | 47% | 37%J | 46% | 52% | 66% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.15 per share. Excluding such non-recurring dividend(s), 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $139.13 | $89.03 | $76.28 | $68.27 | $57.99 | $66.75 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.65) | (.79) | (.37)B | (.41) | (.10) | (.06) |
Net realized and unrealized gain (loss) | 16.84 | 54.53 | 21.02 | 13.24 | 17.76 | (1.46) |
Total from investment operations | 16.19 | 53.74 | 20.65 | 12.83 | 17.66 | (1.52) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (7.41) | (3.64) | (7.90) | (4.82) | (7.38) | (7.24) |
Total distributions | (7.41) | (3.64) | (7.90) | (4.82) | (7.38) | (7.24) |
Net asset value, end of period | $147.91 | $139.13 | $89.03 | $76.28 | $68.27 | $57.99 |
Total ReturnC,D,E | 11.96% | 62.71% | 31.01% | 20.07% | 34.34% | (2.59)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.28%H | 1.30% | 1.34% | 1.28% | 1.14% | 1.09% |
Expenses net of fee waivers, if any | 1.28%H | 1.30% | 1.34% | 1.28% | 1.14% | 1.09% |
Expenses net of all reductions | 1.28%H | 1.30% | 1.34% | 1.28% | 1.13% | 1.09% |
Net investment income (loss) | (.89)%H | (.76)% | (.46)%B | (.57)% | (.17)% | (.10)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $3,450 | $3,153 | $2,094 | $1,671 | $1,492 | $1,250 |
Portfolio turnover rateI | 70%H | 47% | 37%J | 46% | 52% | 66% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.15 per share. Excluding such non-recurring dividend(s), 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $118.14 | $76.50 | $67.03 | $60.60 | $52.52 | $61.42 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.87) | (1.15) | (.67)B | (.70) | (.37) | (.32) |
Net realized and unrealized gain (loss) | 14.24 | 46.43 | 18.04 | 11.68 | 15.83 | (1.34) |
Total from investment operations | 13.37 | 45.28 | 17.37 | 10.98 | 15.46 | (1.66) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (7.23) | (3.64) | (7.90) | (4.55) | (7.38) | (7.24) |
Total distributions | (7.23) | (3.64) | (7.90) | (4.55) | (7.38) | (7.24) |
Net asset value, end of period | $124.28 | $118.14 | $76.50 | $67.03 | $60.60 | $52.52 |
Total ReturnC,D,E | 11.67% | 61.89% | 30.31% | 19.44% | 33.64% | (3.10)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.80%H | 1.81% | 1.86% | 1.81% | 1.66% | 1.61% |
Expenses net of fee waivers, if any | 1.80%H | 1.81% | 1.86% | 1.81% | 1.66% | 1.61% |
Expenses net of all reductions | 1.79%H | 1.81% | 1.86% | 1.80% | 1.66% | 1.61% |
Net investment income (loss) | (1.41)%H | (1.27)% | (.98)%B | (1.09)% | (.69)% | (.62)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,356 | $1,159 | $483 | $244 | $201 | $178 |
Portfolio turnover rateI | 70%H | 47% | 37%J | 46% | 52% | 66% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.13 per share. Excluding such non-recurring dividend(s), 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $153.77 | $97.56 | $82.42 | $73.38 | $61.52 | $70.05 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.32) | (.31) | .03B | (.05) | .22 | .25 |
Net realized and unrealized gain (loss) | 18.65 | 60.16 | 23.01 | 14.25 | 19.02 | (1.54) |
Total from investment operations | 18.33 | 59.85 | 23.04 | 14.20 | 19.24 | (1.29) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (7.97) | (3.64) | (7.90) | (5.16) | (7.38) | (7.24) |
Total distributions | (7.97) | (3.64) | (7.90) | (5.16) | (7.38) | (7.24) |
Net asset value, end of period | $164.13 | $153.77 | $97.56 | $82.42 | $73.38 | $61.52 |
Total ReturnC,D | 12.24% | 63.52% | 31.66% | 20.67% | 35.01% | (2.09)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .79%G | .80% | .84% | .78% | .63% | .58% |
Expenses net of fee waivers, if any | .79%G | .80% | .84% | .78% | .63% | .58% |
Expenses net of all reductions | .78%G | .80% | .84% | .78% | .63% | .58% |
Net investment income (loss) | (.40)%G | (.26)% | .04%B | (.06)% | .34% | .41% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $10,620 | $8,282 | $2,819 | $850 | $642 | $562 |
Portfolio turnover rateH | 70%G | 47% | 37%I | 46% | 52% | 66% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.17 per share. Excluding such non-recurring dividend(s), 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $155.40 | $98.44 | $83.00 | $73.88 | $61.82 | $70.27 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.23) | (.17) | .14B | .04 | .32 | .33 |
Net realized and unrealized gain (loss) | 18.84 | 60.77 | 23.20 | 14.35 | 19.12 | (1.54) |
Total from investment operations | 18.61 | 60.60 | 23.34 | 14.39 | 19.44 | (1.21) |
Distributions from net investment income | – | – | – | (.05) | – | – |
Distributions from net realized gain | (8.07) | (3.64) | (7.90) | (5.22) | (7.38) | (7.24) |
Total distributions | (8.07) | (3.64) | (7.90) | (5.27) | (7.38) | (7.24) |
Net asset value, end of period | $165.94 | $155.40 | $98.44 | $83.00 | $73.88 | $61.82 |
Total ReturnC,D | 12.31% | 63.72% | 31.81% | 20.82% | 35.18% | (1.96)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .67%G | .69% | .72% | .66% | .51% | .45% |
Expenses net of fee waivers, if any | .67%G | .68% | .72% | .66% | .50% | .45% |
Expenses net of all reductions | .66%G | .68% | .72% | .65% | .50% | .45% |
Net investment income (loss) | (.28)%G | (.15)% | .16%B | .06% | .47% | .54% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $3,642 | $2,826 | $1,114 | $88 | $152 | $7 |
Portfolio turnover rateH | 70%G | 47% | 37%I | 46% | 52% | 66% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.17 per share. Excluding such non-recurring dividend(s), 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, 2021
(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 June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. Exchange-Traded Funds (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.
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 | $539,441 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.0 - 5.7 / 4.6 | Increase |
Discount rate | 32.5% - 85.7% / 32.9% | Decrease | |||
Premium rate | 7.8% | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Market approach | Transaction price | $0.00 - $885.00 / $176.61 | Increase | ||
Corporate Bonds | $1,075 | Market approach | Transaction price | $100.00 | Increase |
Preferred Securities | $29,492 | Market approach | Transaction price | $100.00 | 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, 2021, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Fidelity Advisor Growth Opportunities Fund | $25 |
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, futures transactions, passive foreign investment companies (PFIC), deferred trustees compensation, net operating losses, 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 | $9,157,971 |
Gross unrealized depreciation | (548,846) |
Net unrealized appreciation (depreciation) | $8,609,125 |
Tax cost | $14,693,508 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
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 Growth Opportunities Fund | 9,380,411 | 7,421,762 |
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 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 .61% 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% | $4,403 | $272 |
Class M | .25% | .25% | 8,579 | 279 |
Class C | .75% | .25% | 6,570 | 2,387 |
$19,552 | $ 2,938 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class M shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $1,733 |
Class M | 134 |
Class C(a) | 143 |
$2,010 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $2,898 | .16 |
Class M | 2,676 | .16 |
Class C | 1,126 | .17 |
Class I | 8,033 | .16 |
Class Z | 715 | .04 |
$15,448 |
(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 | $129 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $29,858 | .31% | $10 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Growth Opportunities Fund | 785,245 | 257,262 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Advisor Growth Opportunities Fund | $20 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Growth Opportunities Fund | $146 | $36 | $501 |
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 expenses. This amount totaled $450 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 $29.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Growth Opportunities Fund | ||
Distributions to shareholders | ||
Class A | $169,742 | $55,553 |
Class M | 168,099 | 85,325 |
Class C | 72,157 | 23,768 |
Class I | 439,475 | 109,950 |
Class Z | 150,797 | 42,990 |
Total | $1,000,270 | $317,586 |
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, 2021 | Year ended November 30, 2020 | Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Growth Opportunities Fund | ||||
Class A | ||||
Shares sold | 4,562 | 11,689 | $678,039 | $1,219,407 |
Reinvestment of distributions | 1,142 | 587 | 161,303 | 52,509 |
Shares redeemed | (2,502) | (5,737) | (367,739) | (605,901) |
Net increase (decrease) | 3,202 | 6,539 | $471,603 | $666,015 |
Class M | ||||
Shares sold | 1,559 | 3,754 | $228,144 | $379,705 |
Reinvestment of distributions | 1,163 | 931 | 162,126 | 82,318 |
Shares redeemed | (2,055) | (5,548) | (299,497) | (555,845) |
Net increase (decrease) | 667 | (863) | $90,773 | $(93,822) |
Class C | ||||
Shares sold | 1,984 | 5,570 | $244,326 | $478,062 |
Reinvestment of distributions | 581 | 291 | 68,282 | 21,939 |
Shares redeemed | (1,467) | (2,360) | (180,709) | (207,656) |
Net increase (decrease) | 1,098 | 3,501 | $131,899 | $292,345 |
Class I | ||||
Shares sold | 19,267 | 42,729 | $3,124,419 | $4,757,625 |
Reinvestment of distributions | 2,534 | 950 | 391,310 | 92,340 |
Shares redeemed | (10,950) | (18,720) | (1,755,982) | (2,085,597) |
Net increase (decrease) | 10,851 | 24,959 | $1,759,747 | $2,764,368 |
Class Z | ||||
Shares sold | 6,409 | 13,629 | $1,047,068 | $1,517,673 |
Reinvestment of distributions | 860 | 398 | 134,230 | 39,102 |
Shares redeemed | (3,507) | (7,159) | (574,989) | (800,889) |
Net increase (decrease) | 3,762 | 6,868 | $606,309 | $755,886 |
11. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Growth Opportunities Fund | ||||
Class A | 1.04% | |||
Actual | $1,000.00 | $1,121.00 | $5.50 | |
Hypothetical-C | $1,000.00 | $1,019.75 | $5.24 | |
Class M | 1.28% | |||
Actual | $1,000.00 | $1,119.60 | $6.76 | |
Hypothetical-C | $1,000.00 | $1,018.55 | $6.44 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $1,116.70 | $9.50 | |
Hypothetical-C | $1,000.00 | $1,015.96 | $9.05 | |
Class I | .79% | |||
Actual | $1,000.00 | $1,122.40 | $4.18 | |
Hypothetical-C | $1,000.00 | $1,020.99 | $3.98 | |
Class Z | .67% | |||
Actual | $1,000.00 | $1,123.10 | $3.55 | |
Hypothetical-C | $1,000.00 | $1,021.59 | $3.38 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, 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/0001379491-21-003389/img711096646.jpg)
Fidelity Advisor Growth Opportunities Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711096834.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, 2019 through November 30, 2020. 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-0721
1.704615.123
Fidelity Advisor® Growth & Income Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
General Electric Co.(a) | 6.2 |
Microsoft Corp. | 5.7 |
Wells Fargo & Co. | 4.7 |
Exxon Mobil Corp. | 4.3 |
Bank of America Corp.(a) | 3.7 |
Comcast Corp. Class A | 3.3 |
Altria Group, Inc. | 2.9 |
Apple, Inc. | 2.8 |
United Parcel Service, Inc. Class B | 2.1 |
Bristol-Myers Squibb Co. | 1.9 |
37.6 |
(a) Security or a portion of the security is pledged as collateral for call options written.
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Financials | 18.6 |
Information Technology | 18.5 |
Industrials | 17.8 |
Health Care | 14.2 |
Energy | 7.9 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021*,** | ||
Stocks | 98.7% | |
Convertible Securities | 0.3% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
* Foreign investments – 12.9%
** Written options – (0.0)%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 7.4% | |||
Diversified Telecommunication Services - 0.7% | |||
Elisa Corp. (A Shares) | 3,200 | $189 | |
Verizon Communications, Inc. | 78,909 | 4,458 | |
4,647 | |||
Entertainment - 2.6% | |||
Activision Blizzard, Inc. | 28,900 | 2,811 | |
Nintendo Co. Ltd. ADR | 21,000 | 1,624 | |
The Walt Disney Co. (a) | 40,800 | 7,289 | |
Vivendi SA | 141,100 | 5,128 | |
16,852 | |||
Media - 4.1% | |||
Comcast Corp. Class A | 369,258 | 21,173 | |
Interpublic Group of Companies, Inc. | 141,800 | 4,777 | |
25,950 | |||
TOTAL COMMUNICATION SERVICES | 47,449 | ||
CONSUMER DISCRETIONARY - 3.3% | |||
Auto Components - 0.8% | |||
BorgWarner, Inc. (b) | 92,900 | 4,765 | |
Automobiles - 0.2% | |||
Harley-Davidson, Inc. | 22,800 | 1,105 | |
Hotels, Restaurants & Leisure - 0.2% | |||
Marriott International, Inc. Class A (a) | 3,400 | 488 | |
Starbucks Corp. | 9,000 | 1,025 | |
1,513 | |||
Household Durables - 0.8% | |||
Sony Group Corp. sponsored ADR | 10,700 | 1,066 | |
Whirlpool Corp. (b) | 17,400 | 4,125 | |
5,191 | |||
Specialty Retail - 1.2% | |||
Lowe's Companies, Inc. | 38,957 | 7,590 | |
Textiles, Apparel & Luxury Goods - 0.1% | |||
Puma AG | 5,844 | 670 | |
Tapestry, Inc. (a) | 300 | 13 | |
683 | |||
TOTAL CONSUMER DISCRETIONARY | 20,847 | ||
CONSUMER STAPLES - 7.0% | |||
Beverages - 2.1% | |||
Anheuser-Busch InBev SA NV ADR | 11,500 | 871 | |
Diageo PLC sponsored ADR (c) | 16,400 | 3,169 | |
Keurig Dr. Pepper, Inc. | 40,400 | 1,493 | |
Pernod Ricard SA | 5,200 | 1,146 | |
Remy Cointreau SA | 3,023 | 632 | |
The Coca-Cola Co. | 113,084 | 6,252 | |
13,563 | |||
Food & Staples Retailing - 0.7% | |||
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 3,700 | 134 | |
Costco Wholesale Corp. | 500 | 189 | |
Sysco Corp. | 51,400 | 4,163 | |
Walmart, Inc. | 1,200 | 170 | |
4,656 | |||
Food Products - 0.2% | |||
Lamb Weston Holdings, Inc. | 13,400 | 1,105 | |
Household Products - 0.5% | |||
Colgate-Palmolive Co. | 6,000 | 503 | |
Energizer Holdings, Inc. | 12,800 | 589 | |
Procter & Gamble Co. | 2,100 | 283 | |
Spectrum Brands Holdings, Inc. | 18,700 | 1,662 | |
3,037 | |||
Tobacco - 3.5% | |||
Altria Group, Inc. | 370,720 | 18,247 | |
British American Tobacco PLC sponsored ADR | 73,380 | 2,838 | |
Swedish Match Co. AB | 109,700 | 1,018 | |
22,103 | |||
TOTAL CONSUMER STAPLES | 44,464 | ||
ENERGY - 7.8% | |||
Oil, Gas & Consumable Fuels - 7.8% | |||
Canadian Natural Resources Ltd. | 34,400 | 1,207 | |
Cenovus Energy, Inc. | 2,300 | 19 | |
Cenovus Energy, Inc. (Canada) | 591,000 | 4,941 | |
Exxon Mobil Corp. | 470,200 | 27,446 | |
Hess Corp. | 107,000 | 8,969 | |
Imperial Oil Ltd. | 29,600 | 996 | |
Kosmos Energy Ltd. (a) | 408,800 | 1,300 | |
Magellan Midstream Partners LP | 34,900 | 1,720 | |
Phillips 66 Co. | 36,700 | 3,091 | |
49,689 | |||
FINANCIALS - 18.6% | |||
Banks - 13.1% | |||
Bank of America Corp. (b) | 556,042 | 23,571 | |
JPMorgan Chase & Co. | 45,143 | 7,414 | |
M&T Bank Corp. | 9,500 | 1,527 | |
PNC Financial Services Group, Inc. | 45,216 | 8,803 | |
Truist Financial Corp. | 116,949 | 7,225 | |
U.S. Bancorp | 86,130 | 5,235 | |
Wells Fargo & Co. | 640,350 | 29,917 | |
83,692 | |||
Capital Markets - 3.7% | |||
Brookfield Asset Management, Inc. Class A | 25,001 | 1,259 | |
KKR & Co. LP | 44,613 | 2,484 | |
Morgan Stanley | 29,830 | 2,713 | |
Northern Trust Corp. | 68,337 | 8,282 | |
Raymond James Financial, Inc. | 22,500 | 2,983 | |
S&P Global, Inc. | 100 | 38 | |
State Street Corp. (b) | 69,270 | 6,025 | |
23,784 | |||
Consumer Finance - 0.5% | |||
Discover Financial Services | 25,700 | 3,014 | |
Insurance - 0.9% | |||
American Financial Group, Inc. | 3,400 | 452 | |
Chubb Ltd. | 11,200 | 1,904 | |
Marsh & McLennan Companies, Inc. | 13,866 | 1,918 | |
Old Republic International Corp. | 15,200 | 399 | |
The Travelers Companies, Inc. | 7,500 | 1,198 | |
5,871 | |||
Thrifts & Mortgage Finance - 0.4% | |||
Essent Group Ltd. | 21,100 | 1,009 | |
Radian Group, Inc. | 65,990 | 1,541 | |
2,550 | |||
TOTAL FINANCIALS | 118,911 | ||
HEALTH CARE - 13.9% | |||
Biotechnology - 0.3% | |||
AbbVie, Inc. | 11,600 | 1,313 | |
Intercept Pharmaceuticals, Inc. (a) | 19,495 | 324 | |
1,637 | |||
Health Care Equipment & Supplies - 1.4% | |||
Becton, Dickinson & Co. | 8,475 | 2,050 | |
Boston Scientific Corp. (a) | 102,700 | 4,370 | |
Danaher Corp. | 2,800 | 717 | |
GN Store Nord A/S | 4,000 | 340 | |
Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 18,700 | 1,056 | |
Sonova Holding AG Class B | 2,053 | 730 | |
9,263 | |||
Health Care Providers & Services - 6.0% | |||
AmerisourceBergen Corp. (b) | 12,700 | 1,457 | |
Cardinal Health, Inc. | 65,700 | 3,684 | |
Cigna Corp. | 30,800 | 7,973 | |
CVS Health Corp. | 96,551 | 8,346 | |
Humana, Inc. | 1,000 | 438 | |
McKesson Corp. | 34,433 | 6,625 | |
Patterson Companies, Inc. | 26,200 | 853 | |
UDG Healthcare PLC (United Kingdom) | 15,300 | 230 | |
UnitedHealth Group, Inc. | 20,900 | 8,609 | |
38,215 | |||
Pharmaceuticals - 6.2% | |||
Bayer AG | 100,373 | 6,319 | |
Bristol-Myers Squibb Co. | 183,500 | 12,060 | |
Eli Lilly & Co. | 5,900 | 1,178 | |
GlaxoSmithKline PLC sponsored ADR | 171,309 | 6,642 | |
Johnson & Johnson | 61,701 | 10,443 | |
Sanofi SA sponsored ADR | 29,400 | 1,571 | |
UCB SA | 14,000 | 1,310 | |
Viatris, Inc. | 7,200 | 110 | |
39,633 | |||
TOTAL HEALTH CARE | 88,748 | ||
INDUSTRIALS - 17.8% | |||
Aerospace & Defense - 2.4% | |||
Airbus Group NV (a) | 14,400 | 1,878 | |
General Dynamics Corp. | 11,500 | 2,184 | |
Huntington Ingalls Industries, Inc. | 8,900 | 1,924 | |
MTU Aero Engines AG | 3,600 | 929 | |
Raytheon Technologies Corp. | 15,731 | 1,395 | |
Safran SA | 7,200 | 1,077 | |
The Boeing Co. (a) | 24,700 | 6,101 | |
15,488 | |||
Air Freight & Logistics - 2.6% | |||
DSV Panalpina A/S | 2,000 | 484 | |
Expeditors International of Washington, Inc. | 700 | 88 | |
FedEx Corp. (b) | 8,500 | 2,676 | |
United Parcel Service, Inc. Class B | 62,979 | 13,515 | |
16,763 | |||
Airlines - 0.0% | |||
Copa Holdings SA Class A (a) | 100 | 8 | |
Building Products - 0.4% | |||
A.O. Smith Corp. | 5,400 | 384 | |
Johnson Controls International PLC | 32,200 | 2,143 | |
2,527 | |||
Commercial Services & Supplies - 0.5% | |||
Healthcare Services Group, Inc. (c) | 61,000 | 1,829 | |
HNI Corp. | 9,300 | 424 | |
Interface, Inc. | 40,100 | 655 | |
Ritchie Bros. Auctioneers, Inc. | 1,300 | 77 | |
2,985 | |||
Electrical Equipment - 1.2% | |||
Acuity Brands, Inc. | 8,800 | 1,635 | |
Hubbell, Inc. Class B | 11,012 | 2,099 | |
Rockwell Automation, Inc. | 1,600 | 422 | |
Vertiv Holdings LLC (a)(d) | 142,400 | 3,534 | |
7,690 | |||
Industrial Conglomerates - 6.6% | |||
3M Co. | 11,800 | 2,396 | |
General Electric Co. (b) | 2,843,693 | 39,977 | |
42,373 | |||
Machinery - 2.2% | |||
Allison Transmission Holdings, Inc. | 20,400 | 863 | |
Caterpillar, Inc. (b) | 5,100 | 1,230 | |
Cummins, Inc. | 4,500 | 1,158 | |
Donaldson Co., Inc. | 48,000 | 2,956 | |
Epiroc AB | 17,400 | 6 | |
Epiroc AB (A Shares) | 17,400 | 394 | |
Flowserve Corp. | 27,600 | 1,170 | |
Fortive Corp. | 19,000 | 1,378 | |
Kardex AG | 550 | 124 | |
Nordson Corp. | 7,500 | 1,663 | |
Otis Worldwide Corp. | 7,265 | 569 | |
Stanley Black & Decker, Inc. | 5,000 | 1,084 | |
Westinghouse Air Brake Co. | 15,031 | 1,244 | |
13,839 | |||
Professional Services - 0.5% | |||
Equifax, Inc. | 5,300 | 1,246 | |
RELX PLC: | |||
rights (a)(e) | 60,400 | 29 | |
(London Stock Exchange) | 60,400 | 1,578 | |
Robert Half International, Inc. | 800 | 71 | |
2,924 | |||
Road & Rail - 0.5% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 69,500 | 3,317 | |
Trading Companies & Distributors - 0.9% | |||
Brenntag AG | 2,900 | 274 | |
Fastenal Co. | 11,700 | 621 | |
MSC Industrial Direct Co., Inc. Class A | 600 | 57 | |
Watsco, Inc. | 16,564 | 4,827 | |
5,779 | |||
TOTAL INDUSTRIALS | 113,693 | ||
INFORMATION TECHNOLOGY - 18.5% | |||
Electronic Equipment & Components - 0.3% | |||
CDW Corp. | 8,800 | 1,456 | |
Vontier Corp. | 15,900 | 558 | |
2,014 | |||
IT Services - 4.3% | |||
Amadeus IT Holding SA Class A (a) | 43,900 | 3,314 | |
DXC Technology Co. (a) | 9,400 | 356 | |
Edenred SA | 32,500 | 1,767 | |
Edenred SA rights (a)(e) | 32,500 | 30 | |
Fidelity National Information Services, Inc. | 36,100 | 5,378 | |
Genpact Ltd. | 45,600 | 2,086 | |
IBM Corp. | 16,300 | 2,343 | |
MasterCard, Inc. Class A | 2,200 | 793 | |
Unisys Corp. (a) | 66,892 | 1,720 | |
Visa, Inc. Class A | 43,440 | 9,874 | |
27,661 | |||
Semiconductors & Semiconductor Equipment - 3.9% | |||
Analog Devices, Inc. | 12,300 | 2,025 | |
Applied Materials, Inc. | 11,595 | 1,602 | |
Intel Corp. | 58,100 | 3,319 | |
Lam Research Corp. | 1,800 | 1,170 | |
Marvell Technology, Inc. | 29,700 | 1,435 | |
NXP Semiconductors NV | 17,300 | 3,658 | |
Qualcomm, Inc. | 86,598 | 11,651 | |
24,860 | |||
Software - 7.0% | |||
Microsoft Corp. | 145,873 | 36,422 | |
Open Text Corp. | 13,700 | 645 | |
SAP SE sponsored ADR | 46,000 | 6,437 | |
Temenos Group AG | 9,690 | 1,493 | |
44,997 | |||
Technology Hardware, Storage & Peripherals - 3.0% | |||
Apple, Inc. | 144,692 | 18,030 | |
Samsung Electronics Co. Ltd. | 13,520 | 982 | |
19,012 | |||
TOTAL INFORMATION TECHNOLOGY | 118,544 | ||
MATERIALS - 2.3% | |||
Chemicals - 1.0% | |||
DuPont de Nemours, Inc. | 61,000 | 5,160 | |
PPG Industries, Inc. | 7,200 | 1,294 | |
6,454 | |||
Metals & Mining - 1.3% | |||
BHP Group Ltd. sponsored ADR (c) | 49,900 | 3,698 | |
First Quantum Minerals Ltd. | 48,600 | 1,196 | |
Freeport-McMoRan, Inc. (b) | 80,000 | 3,418 | |
8,312 | |||
TOTAL MATERIALS | 14,766 | ||
REAL ESTATE - 1.2% | |||
Equity Real Estate Investment Trusts (REITs) - 1.2% | |||
American Tower Corp. | 10,500 | 2,682 | |
CoreSite Realty Corp. | 6,800 | 825 | |
Equinix, Inc. | 110 | 81 | |
Public Storage | 200 | 56 | |
Simon Property Group, Inc. | 29,200 | 3,752 | |
7,396 | |||
UTILITIES - 0.9% | |||
Electric Utilities - 0.7% | |||
Duke Energy Corp. | 9,100 | 912 | |
Entergy Corp. | 11,200 | 1,179 | |
Exelon Corp. | 11,900 | 537 | |
Southern Co. (b) | 29,500 | 1,886 | |
4,514 | |||
Multi-Utilities - 0.2% | |||
CenterPoint Energy, Inc. | 21,600 | 546 | |
Sempra Energy | 5,700 | 772 | |
1,318 | |||
TOTAL UTILITIES | 5,832 | ||
TOTAL COMMON STOCKS | |||
(Cost $390,763) | 630,339 | ||
Convertible Preferred Stocks - 0.2% | |||
HEALTH CARE - 0.2% | |||
Health Care Equipment & Supplies - 0.2% | |||
Becton, Dickinson & Co. 6.50% | 12,900 | 703 | |
Boston Scientific Corp. Series A, 5.50% | 7,700 | 880 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $1,415) | 1,583 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.1% | |||
HEALTH CARE - 0.1% | |||
Biotechnology - 0.1% | |||
Intercept Pharmaceuticals, Inc. 2% 5/15/26 (Cost $868) | 1,093 | 711 | |
Shares | Value (000s) | ||
Other - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Utica Shale Drilling Program (non-operating revenue interest) (d)(f)(g) | |||
(Cost $1,470) | 1,469,796 | 653 | |
Money Market Funds - 1.6% | |||
Fidelity Cash Central Fund 0.03% (h) | 5,716,727 | 5,718 | |
Fidelity Securities Lending Cash Central Fund 0.03% (h)(i) | 4,324,288 | 4,325 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $10,043) | 10,043 | ||
TOTAL INVESTMENT IN SECURITIES - 100.7% | |||
(Cost $404,559) | 643,329 | ||
NET OTHER ASSETS (LIABILITIES) - (0.7)% | (4,546) | ||
NET ASSETS - 100% | $638,783 |
Written Options | ||||||
Counterparty | Number of Contracts | Notional Amount (000s) | Exercise Price | Expiration Date | Value (000s) | |
Call Options | ||||||
AmerisourceBergen Corp. | Chicago Board Options Exchange | 56 | $643 | $125.00 | 8/20/21 | $(12) |
AmerisourceBergen Corp. | Chicago Board Options Exchange | 56 | 643 | 130.00 | 8/20/21 | (10) |
Bank of America Corp. | Chicago Board Options Exchange | 1,000 | 2,348 | 46.00 | 8/20/21 | (40) |
BorgWarner, Inc. | Chicago Board Options Exchange | 184 | 944 | 55.00 | 7/16/21 | (14) |
Caterpillar, Inc. | Chicago Board Options Exchange | 11 | 265 | 250.00 | 7/16/21 | (5) |
FedEx Corp. | Chicago Board Options Exchange | 28 | 881 | 350.00 | 8/20/21 | (18) |
Freeport-McMoRan, Inc. | Chicago Board Options Exchange | 62 | 265 | 43.00 | 6/18/21 | (10) |
General Electric Co. | Chicago Board Options Exchange | 1,000 | 1,992 | 15.00 | 6/18/21 | (21) |
Southern Co. | Chicago Board Options Exchange | 28 | 179 | 70.00 | 8/20/21 | (1) |
State Street Corp. | Chicago Board Options Exchange | 172 | 1,496 | 95.00 | 8/20/21 | (26) |
Whirlpool Corp. | Chicago Board Options Exchange | 22 | 522 | 250.00 | 9/17/21 | (24) |
Whirlpool Corp. | Chicago Board Options Exchange | 22 | 522 | 260.00 | 9/17/21 | (17) |
TOTAL WRITTEN OPTIONS | $(198) |
Legend
(a) Non-income producing
(b) 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 $10,700,000.
(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 $4,187,000 or 0.7% of net assets.
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Level 3 security
(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) |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $1,470 |
Vertiv Holdings LLC | 2/6/20 | $1,424 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $1 |
Fidelity Securities Lending Cash Central Fund | 18 |
Total | $19 |
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, 2021, 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 | $47,449 | $47,449 | $-- | $-- |
Consumer Discretionary | 20,847 | 20,847 | -- | -- |
Consumer Staples | 44,464 | 44,464 | -- | -- |
Energy | 49,689 | 49,689 | -- | -- |
Financials | 118,911 | 118,911 | -- | -- |
Health Care | 90,331 | 88,748 | 1,583 | -- |
Industrials | 113,693 | 113,664 | 29 | -- |
Information Technology | 118,544 | 118,514 | 30 | -- |
Materials | 14,766 | 14,766 | -- | -- |
Real Estate | 7,396 | 7,396 | -- | -- |
Utilities | 5,832 | 5,832 | -- | -- |
Corporate Bonds | 711 | -- | 711 | -- |
Other | 653 | -- | -- | 653 |
Money Market Funds | 10,043 | 10,043 | -- | -- |
Total Investments in Securities: | $643,329 | $640,323 | $2,353 | $653 |
Derivative Instruments: | ||||
Liabilities | ||||
Written Options | $(198) | $(198) | $-- | $-- |
Total Liabilities | $(198) | $(198) | $-- | $-- |
Total Derivative Instruments: | $(198) | $(198) | $-- | $-- |
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, 2021. 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 | $(198) |
Total Equity Risk | 0 | (198) |
Total Value of Derivatives | $0 | $(198) |
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 87.1% |
Germany | 2.2% |
United Kingdom | 2.2% |
France | 1.9% |
Canada | 1.6% |
Netherlands | 1.1% |
Others (Individually Less Than 1%) | 3.9% |
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, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $4,231) — See accompanying schedule: Unaffiliated issuers (cost $394,516) | $633,286 | |
Fidelity Central Funds (cost $10,043) | 10,043 | |
Total Investment in Securities (cost $404,559) | $643,329 | |
Restricted cash | 7 | |
Foreign currency held at value (cost $65) | 65 | |
Receivable for investments sold | 240 | |
Receivable for fund shares sold | 194 | |
Dividends receivable | 1,479 | |
Interest receivable | 1 | |
Distributions receivable from Fidelity Central Funds | 2 | |
Other receivables | 6 | |
Total assets | 645,323 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $753 | |
Delayed delivery | 58 | |
Payable for fund shares redeemed | 657 | |
Accrued management fee | 225 | |
Distribution and service plan fees payable | 181 | |
Written options, at value (premium received $335) | 198 | |
Other affiliated payables | 109 | |
Other payables and accrued expenses | 32 | |
Collateral on securities loaned | 4,327 | |
Total liabilities | 6,540 | |
Net Assets | $638,783 | |
Net Assets consist of: | ||
Paid in capital | $386,700 | |
Total accumulated earnings (loss) | 252,083 | |
Net Assets | $638,783 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($342,001 ÷ 10,328.7 shares)(a) | $33.11 | |
Maximum offering price per share (100/94.25 of $33.11) | $35.13 | |
Class M: | ||
Net Asset Value and redemption price per share ($183,436 ÷ 5,533.3 shares)(a) | $33.15 | |
Maximum offering price per share (100/96.50 of $33.15) | $34.35 | |
Class C: | ||
Net Asset Value and offering price per share ($41,541 ÷ 1,360.5 shares)(a) | $30.53 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($55,539 ÷ 1,633.3 shares) | $34.00 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($16,266 ÷ 477.3 shares) | $34.08 |
(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, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $6,445 | |
Interest | 24 | |
Income from Fidelity Central Funds (including $18 from security lending) | 19 | |
Total income | 6,488 | |
Expenses | ||
Management fee | $1,235 | |
Transfer agent fees | 520 | |
Distribution and service plan fees | 998 | |
Accounting fees | 108 | |
Custodian fees and expenses | 12 | |
Independent trustees' fees and expenses | 1 | |
Registration fees | 44 | |
Audit | 28 | |
Legal | 3 | |
Miscellaneous | 2 | |
Total expenses before reductions | 2,951 | |
Expense reductions | (12) | |
Total expenses after reductions | 2,939 | |
Net investment income (loss) | 3,549 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $10) | 11,980 | |
Foreign currency transactions | (4) | |
Written options | 507 | |
Total net realized gain (loss) | 12,483 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $4) | 113,465 | |
Assets and liabilities in foreign currencies | 2 | |
Written options | 100 | |
Total change in net unrealized appreciation (depreciation) | 113,567 | |
Net gain (loss) | 126,050 | |
Net increase (decrease) in net assets resulting from operations | $129,599 |
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, 2021 (Unaudited) | Year ended November 30, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,549 | $8,377 |
Net realized gain (loss) | 12,483 | 20,862 |
Change in net unrealized appreciation (depreciation) | 113,567 | (7,603) |
Net increase (decrease) in net assets resulting from operations | 129,599 | 21,636 |
Distributions to shareholders | (25,162) | (37,408) |
Share transactions - net increase (decrease) | 15,472 | (21,275) |
Total increase (decrease) in net assets | 119,909 | (37,047) |
Net Assets | ||
Beginning of period | 518,874 | 555,921 |
End of period | $638,783 | $518,874 |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.71 | $28.32 | $28.69 | $30.29 | $26.89 | $26.36 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .20 | .44 | .49 | .43 | .41 | .37 |
Net realized and unrealized gain (loss) | 6.57 | .90 | 2.48 | .58 | 3.83 | 2.12 |
Total from investment operations | 6.77 | 1.34 | 2.97 | 1.01 | 4.24 | 2.49 |
Distributions from net investment income | (.48) | (.48) | (.47) | (.36) | (.39)B | (.39) |
Distributions from net realized gain | (.89) | (1.47) | (2.87) | (2.26) | (.45)B | (1.57) |
Total distributions | (1.37) | (1.95) | (3.34) | (2.61)C | (.84) | (1.96) |
Net asset value, end of period | $33.11 | $27.71 | $28.32 | $28.69 | $30.29 | $26.89 |
Total ReturnD,E,F | 25.46% | 4.86% | 13.65% | 3.42% | 16.15% | 10.59% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .93%I | .95% | .96% | .96% | .97% | .99% |
Expenses net of fee waivers, if any | .93%I | .95% | .96% | .96% | .97% | .99% |
Expenses net of all reductions | .92%I | .95% | .95% | .95% | .97% | .99% |
Net investment income (loss) | 1.32%I | 1.78% | 1.93% | 1.49% | 1.47% | 1.51% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $342 | $277 | $288 | $243 | $255 | $253 |
Portfolio turnover rateJ | 19%I | 28% | 29% | 40% | 36% | 31% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.71 | $28.31 | $28.67 | $30.26 | $26.87 | $26.32 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .16 | .38 | .43 | .36 | .34 | .31 |
Net realized and unrealized gain (loss) | 6.59 | .89 | 2.47 | .59 | 3.82 | 2.12 |
Total from investment operations | 6.75 | 1.27 | 2.90 | .95 | 4.16 | 2.43 |
Distributions from net investment income | (.42) | (.40) | (.39) | (.28) | (.32)B | (.32) |
Distributions from net realized gain | (.89) | (1.47) | (2.87) | (2.26) | (.45)B | (1.57) |
Total distributions | (1.31) | (1.87) | (3.26) | (2.54) | (.77) | (1.88)C |
Net asset value, end of period | $33.15 | $27.71 | $28.31 | $28.67 | $30.26 | $26.87 |
Total ReturnD,E,F | 25.30% | 4.61% | 13.33% | 3.19% | 15.85% | 10.36% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.17%I | 1.20% | 1.21% | 1.21% | 1.23% | 1.24% |
Expenses net of fee waivers, if any | 1.17%I | 1.20% | 1.21% | 1.21% | 1.22% | 1.24% |
Expenses net of all reductions | 1.17%I | 1.20% | 1.20% | 1.20% | 1.22% | 1.24% |
Net investment income (loss) | 1.07%I | 1.53% | 1.68% | 1.24% | 1.22% | 1.26% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $183 | $153 | $172 | $175 | $186 | $176 |
Portfolio turnover rateJ | 19%I | 28% | 29% | 40% | 36% | 31% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $25.56 | $26.22 | $26.79 | $28.45 | $25.33 | $24.92 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .08 | .23 | .27 | .20 | .19 | .17 |
Net realized and unrealized gain (loss) | 6.06 | .82 | 2.28 | .55 | 3.60 | 2.01 |
Total from investment operations | 6.14 | 1.05 | 2.55 | .75 | 3.79 | 2.18 |
Distributions from net investment income | (.28) | (.24) | (.26) | (.15) | (.22)B | (.21) |
Distributions from net realized gain | (.89) | (1.47) | (2.87) | (2.26) | (.45)B | (1.57) |
Total distributions | (1.17) | (1.71) | (3.12)C | (2.41) | (.67) | (1.77)C |
Net asset value, end of period | $30.53 | $25.56 | $26.22 | $26.79 | $28.45 | $25.33 |
Total ReturnD,E,F | 24.96% | 4.07% | 12.74% | 2.64% | 15.28% | 9.81% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.70%I | 1.73% | 1.73% | 1.72% | 1.73% | 1.74% |
Expenses net of fee waivers, if any | 1.70%I | 1.73% | 1.73% | 1.71% | 1.73% | 1.74% |
Expenses net of all reductions | 1.70%I | 1.73% | 1.73% | 1.71% | 1.72% | 1.74% |
Net investment income (loss) | .54%I | 1.00% | 1.15% | .73% | .72% | .76% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $42 | $34 | $41 | $75 | $86 | $80 |
Portfolio turnover rateJ | 19%I | 28% | 29% | 40% | 36% | 31% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.45 | $29.01 | $29.33 | $30.91 | $27.41 | $26.85 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .24 | .52 | .57 | .52 | .50 | .44 |
Net realized and unrealized gain (loss) | 6.74 | .93 | 2.52 | .60 | 3.90 | 2.16 |
Total from investment operations | 6.98 | 1.45 | 3.09 | 1.12 | 4.40 | 2.60 |
Distributions from net investment income | (.55) | (.54) | (.54) | (.44) | (.45)B | (.48) |
Distributions from net realized gain | (.89) | (1.47) | (2.87) | (2.26) | (.45)B | (1.57) |
Total distributions | (1.43)C | (2.01) | (3.41) | (2.70) | (.90) | (2.04)C |
Net asset value, end of period | $34.00 | $28.45 | $29.01 | $29.33 | $30.91 | $27.41 |
Total ReturnD,E | 25.59% | 5.16% | 13.89% | 3.71% | 16.45% | 10.91% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .68%H | .70% | .70% | .69% | .70% | .73% |
Expenses net of fee waivers, if any | .68%H | .70% | .69% | .69% | .70% | .73% |
Expenses net of all reductions | .68%H | .69% | .69% | .69% | .70% | .73% |
Net investment income (loss) | 1.56%H | 2.03% | 2.19% | 1.75% | 1.74% | 1.77% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $56 | $45 | $48 | $47 | $53 | $35 |
Portfolio turnover rateI | 19%H | 28% | 29% | 40% | 36% | 31% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | ||||
2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.52 | $29.09 | $29.35 | $30.94 | $27.35 |
Income from Investment Operations | |||||
Net investment income (loss)B | .27 | .55 | .62 | .56 | .51 |
Net realized and unrealized gain (loss) | 6.76 | .93 | 2.53 | .59 | 3.08 |
Total from investment operations | 7.03 | 1.48 | 3.15 | 1.15 | 3.59 |
Distributions from net investment income | (.59) | (.58) | (.54) | (.49) | – |
Distributions from net realized gain | (.89) | (1.47) | (2.87) | (2.26) | – |
Total distributions | (1.47)C | (2.05) | (3.41) | (2.74)C | – |
Net asset value, end of period | $34.08 | $28.52 | $29.09 | $29.35 | $30.94 |
Total ReturnD,E | 25.73% | 5.26% | 14.11% | 3.84% | 13.13% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .54%H | .55% | .56% | .56% | .57%H |
Expenses net of fee waivers, if any | .54%H | .55% | .56% | .56% | .57%H |
Expenses net of all reductions | .53%H | .55% | .55% | .55% | .57%H |
Net investment income (loss) | 1.71%H | 2.18% | 2.33% | 1.89% | 2.13%H |
Supplemental Data | |||||
Net assets, end of period (in millions) | $16 | $11 | $7 | $22 | $16 |
Portfolio turnover rateI | 19%H | 28% | 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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2021
(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 June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 foreign currency transactions, passive foreign investment companies (PFIC), market discount, 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 | $256,856 |
Gross unrealized depreciation | (20,204) |
Net unrealized appreciation (depreciation) | $236,652 |
Tax cost | $406,814 |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Consolidated Subsidiary. The Funds included in the table below hold certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, investments in Subsidiaries were as follows:
$ Amount | % of Net Assets | |
Fidelity Advisor Growth & Income Fund | 660 | .10 |
The financial statements have been consolidated to include the Subsidiary accounts where applicable. Accordingly, all inter-company transactions and balances have been eliminated.
At period end, any estimated tax liability for these investments is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations. The tax liability incurred may differ materially depending on conditions when these investments are disposed. Any cash held by a Subsidiary is restricted as to its use and is presented as "Restricted cash" in the Statement of Assets and Liabilities, if applicable.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including options. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain OTC derivatives such as options, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement upon the deterioration in the credit quality of the counterparty beyond specified levels. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk on bi-lateral OTC derivatives, the Fund receives collateral in the form of cash or securities once the Fund's net unrealized appreciation on outstanding derivative contracts under an ISDA Master Agreement exceeds certain applicable thresholds, subject to certain minimum transfer provisions. The collateral received is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the counterparty and the Fund's custodian bank. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk related to bi-lateral OTC derivatives is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Counterparty credit risk related to exchange-traded options may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date.
The Fund used exchange-traded and OTC written covered call options to manage its exposure to the market. When the Fund writes a covered call option, the Fund holds the underlying instrument which must be delivered to the holder upon the exercise of the option.
Upon entering into a written options contract, the Fund will receive a premium. Premiums received are reflected as a liability on the Statement of Assets and Liabilities. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When a written option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining the gain or loss realized on that investment. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction are greater or less than the premium received. When an option expires, gains and losses are realized to the extent of premiums received. The net realized gain (loss) on closed and expired written options and the change in net unrealized appreciation (depreciation) on written options are 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 | 53,158 | 63,944 |
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% | $387 | $8 |
Class M | .25% | .25% | 422 | 13 |
Class C | .75% | .25% | 189 | 15 |
$998 | $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 | $35 |
Class M | 5 |
Class C(a) | 1 |
$41 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $281 | .18 |
Class M | 150 | .18 |
Class C | 39 | .21 |
Class I | 47 | .19 |
Class Z | 3 | .04 |
$520 |
(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 | $1 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Growth & Income Fund | 4,120 | 4,588 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Advisor Growth & Income Fund | $1 |
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Growth & Income Fund | $2 | $– | $– |
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund and the Equity Central Funds include an amount in addition to trade execution, which may be rebated back to the Fund to offset expenses. This amount totaled $11 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.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Distributions to shareholders | ||
Class A | $13,601 | $19,645 |
Class M | 7,162 | 11,240 |
Class C | 1,554 | 2,639 |
Class I | 2,271 | 3,375 |
Class Z | 574 | 509 |
Total | $25,162 | $37,408 |
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, 2021 | Year ended November 30, 2020 | Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Class A | ||||
Shares sold | 602 | 838 | $18,326 | $20,649 |
Reinvestment of distributions | 466 | 680 | 12,807 | 18,480 |
Shares redeemed | (720) | (1,707) | (21,531) | (42,354) |
Net increase (decrease) | 348 | (189) | $9,602 | $(3,225) |
Class M | ||||
Shares sold | 183 | 298 | $5,542 | $7,357 |
Reinvestment of distributions | 254 | 404 | 6,998 | 10,998 |
Shares redeemed | (423) | (1,272) | (12,664) | (31,461) |
Net increase (decrease) | 14 | (570) | $(124) | $(13,106) |
Class C | ||||
Shares sold | 128 | 161 | $3,578 | $3,660 |
Reinvestment of distributions | 60 | 102 | 1,533 | 2,577 |
Shares redeemed | (166) | (469) | (4,566) | (10,502) |
Net increase (decrease) | 22 | (206) | $545 | $(4,265) |
Class I | ||||
Shares sold | 336 | 933 | $10,274 | $23,094 |
Reinvestment of distributions | 72 | 109 | 2,022 | 3,021 |
Shares redeemed | (340) | (1,123) | (10,459) | (28,359) |
Net increase (decrease) | 68 | (81) | $1,837 | $(2,244) |
Class Z | ||||
Shares sold | 239 | 768 | $7,660 | $18,165 |
Reinvestment of distributions | 16 | 13 | 460 | 358 |
Shares redeemed | (150) | (659) | (4,508) | (16,958) |
Net increase (decrease) | 105 | 122 | $3,612 | $1,565 |
12. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Growth & Income Fund | ||||
Class A | .93% | |||
Actual | $1,000.00 | $1,254.60 | $5.23 | |
Hypothetical-C | $1,000.00 | $1,020.29 | $4.68 | |
Class M | 1.17% | |||
Actual | $1,000.00 | $1,253.00 | $6.57 | |
Hypothetical-C | $1,000.00 | $1,019.10 | $5.89 | |
Class C | 1.70% | |||
Actual | $1,000.00 | $1,249.60 | $9.53 | |
Hypothetical-C | $1,000.00 | $1,016.45 | $8.55 | |
Class I | .68% | |||
Actual | $1,000.00 | $1,255.90 | $3.82 | |
Hypothetical-C | $1,000.00 | $1,021.54 | $3.43 | |
Class Z | .54% | |||
Actual | $1,000.00 | $1,257.30 | $3.04 | |
Hypothetical-C | $1,000.00 | $1,022.24 | $2.72 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, 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/0001379491-21-003389/img711095579.jpg)
Fidelity Advisor Growth & Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711095766.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, 2019 through November 30, 2020. 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-0721
1.704634.123
Fidelity Advisor® Small Cap Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Crocs, Inc. | 2.0 |
Atkore, Inc. | 1.7 |
First Citizens Bancshares, Inc. | 1.6 |
Concentrix Corp. | 1.5 |
ConnectOne Bancorp, Inc. | 1.5 |
EMCOR Group, Inc. | 1.5 |
LPL Financial | 1.5 |
Insight Enterprises, Inc. | 1.4 |
Oshkosh Corp. | 1.4 |
Gray Television, Inc. | 1.4 |
15.5 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Industrials | 20.2 |
Consumer Discretionary | 16.3 |
Financials | 16.2 |
Health Care | 16.0 |
Information Technology | 14.1 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021 * | ||
Stocks | 99.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
* Foreign investments - 14.4%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 2.6% | |||
Media - 2.6% | |||
Gray Television, Inc. | 1,257,500 | $29,249 | |
TechTarget, Inc. (a)(b) | 352,700 | 24,798 | |
54,047 | |||
CONSUMER DISCRETIONARY - 16.3% | |||
Auto Components - 2.0% | |||
Adient PLC (a) | 412,200 | 20,635 | |
Patrick Industries, Inc. | 260,164 | 22,296 | |
42,931 | |||
Hotels, Restaurants & Leisure - 2.2% | |||
Brinker International, Inc. (a)(b) | 249,000 | 15,301 | |
Churchill Downs, Inc. | 110,900 | 22,128 | |
Lindblad Expeditions Holdings (a) | 514,500 | 8,757 | |
46,186 | |||
Household Durables - 3.3% | |||
Purple Innovation, Inc. (a) | 81,300 | 2,319 | |
Skyline Champion Corp. (a) | 481,686 | 24,397 | |
Taylor Morrison Home Corp. (a) | 495,300 | 14,671 | |
Tempur Sealy International, Inc. | 332,800 | 12,813 | |
TopBuild Corp. (a) | 70,800 | 14,022 | |
68,222 | |||
Internet & Direct Marketing Retail - 0.3% | |||
Kogan.Com Ltd. | 782,758 | 6,179 | |
Leisure Products - 1.8% | |||
Brunswick Corp. | 93,900 | 9,599 | |
Clarus Corp. | 615,990 | 14,593 | |
YETI Holdings, Inc. (a) | 159,200 | 13,946 | |
38,138 | |||
Specialty Retail - 4.7% | |||
American Eagle Outfitters, Inc. (b) | 505,200 | 17,899 | |
Boot Barn Holdings, Inc. (a) | 308,400 | 23,559 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 41,100 | 14,467 | |
Murphy U.S.A., Inc. | 156,900 | 21,152 | |
Musti Group OYJ | 526,793 | 20,395 | |
97,472 | |||
Textiles, Apparel & Luxury Goods - 2.0% | |||
Crocs, Inc. (a) | 407,621 | 41,261 | |
Figs, Inc. Class A (a) | 3,400 | 116 | |
41,377 | |||
TOTAL CONSUMER DISCRETIONARY | 340,505 | ||
CONSUMER STAPLES - 2.2% | |||
Food & Staples Retailing - 1.1% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 513,730 | 23,010 | |
Food Products - 1.1% | |||
Nomad Foods Ltd. (a) | 740,600 | 22,714 | |
TOTAL CONSUMER STAPLES | 45,724 | ||
ENERGY - 1.3% | |||
Oil, Gas & Consumable Fuels - 1.3% | |||
Enviva Partners LP | 170,600 | 8,342 | |
Hess Midstream LP | 298,448 | 7,601 | |
Renewable Energy Group, Inc. (a)(b) | 166,600 | 10,174 | |
26,117 | |||
FINANCIALS - 16.2% | |||
Banks - 6.3% | |||
ConnectOne Bancorp, Inc. | 1,118,300 | 30,966 | |
First Citizens Bancshares, Inc. | 38,800 | 33,391 | |
First Interstate Bancsystem, Inc. | 377,900 | 17,788 | |
Independent Bank Corp., Massachusetts | 138,300 | 11,287 | |
ServisFirst Bancshares, Inc. | 298,500 | 20,734 | |
Trico Bancshares | 330,200 | 15,833 | |
129,999 | |||
Capital Markets - 3.1% | |||
LPL Financial | 206,500 | 30,537 | |
Morningstar, Inc. | 111,509 | 26,315 | |
Patria Investments Ltd. | 493,300 | 8,342 | |
65,194 | |||
Consumer Finance - 1.7% | |||
First Cash Financial Services, Inc. | 182,900 | 14,581 | |
PROG Holdings, Inc. | 393,014 | 20,720 | |
35,301 | |||
Diversified Financial Services - 0.3% | |||
Jaws Acquisition Corp. (a) | 457,600 | 6,640 | |
Insurance - 2.7% | |||
Enstar Group Ltd. (a) | 57,802 | 14,675 | |
Old Republic International Corp. | 612,900 | 16,095 | |
Primerica, Inc. | 158,000 | 25,629 | |
56,399 | |||
Thrifts & Mortgage Finance - 2.1% | |||
Essent Group Ltd. | 473,423 | 22,649 | |
WSFS Financial Corp. (b) | 392,670 | 20,894 | |
43,543 | |||
TOTAL FINANCIALS | 337,076 | ||
HEALTH CARE - 16.0% | |||
Biotechnology - 4.9% | |||
Acceleron Pharma, Inc. (a) | 45,800 | 5,995 | |
ADC Therapeutics SA (a) | 66,997 | 1,450 | |
Agios Pharmaceuticals, Inc. (a) | 47,200 | 2,633 | |
Aurinia Pharmaceuticals, Inc. (a) | 192,800 | 2,799 | |
Avid Bioservices, Inc. (a)(b) | 491,311 | 10,455 | |
Bolt Biotherapeutics, Inc. | 131,800 | 2,308 | |
Cytokinetics, Inc. (a) | 216,000 | 4,715 | |
FibroGen, Inc. (a) | 174,300 | 3,704 | |
Forma Therapeutics Holdings, Inc. | 93,600 | 2,627 | |
Global Blood Therapeutics, Inc. (a) | 54,900 | 2,110 | |
Instil Bio, Inc. (a) | 144,600 | 2,574 | |
Keros Therapeutics, Inc. (a) | 58,000 | 3,164 | |
Kura Oncology, Inc. (a) | 218,000 | 4,851 | |
Mirati Therapeutics, Inc. (a) | 45,400 | 7,180 | |
Novavax, Inc. (a) | 82,900 | 12,238 | |
Passage Bio, Inc. (a) | 131,900 | 1,748 | |
Prelude Therapeutics, Inc. | 48,537 | 1,687 | |
PTC Therapeutics, Inc. (a) | 111,200 | 4,367 | |
Revolution Medicines, Inc. (a) | 147,600 | 4,415 | |
Stoke Therapeutics, Inc. (a) | 57,336 | 2,274 | |
TG Therapeutics, Inc. (a) | 218,000 | 7,602 | |
Turning Point Therapeutics, Inc. (a) | 64,100 | 4,242 | |
Vaxcyte, Inc. | 68,700 | 1,448 | |
Xenon Pharmaceuticals, Inc. (a) | 208,800 | 3,857 | |
Zentalis Pharmaceuticals, Inc. (a) | 48,346 | 2,700 | |
103,143 | |||
Health Care Equipment & Supplies - 3.3% | |||
Axonics Modulation Technologies, Inc. (a) | 87,600 | 5,054 | |
BioLife Solutions, Inc. (a) | 170,900 | 5,693 | |
CryoPort, Inc. (a)(b) | 177,600 | 9,931 | |
Envista Holdings Corp. (a) | 429,900 | 18,761 | |
Heska Corp. (a) | 72,500 | 14,366 | |
Tandem Diabetes Care, Inc. (a) | 137,500 | 11,741 | |
TransMedics Group, Inc. (a) | 146,600 | 3,759 | |
69,305 | |||
Health Care Providers & Services - 4.1% | |||
Acadia Healthcare Co., Inc. (a) | 287,900 | 18,529 | |
Chemed Corp. | 43,200 | 21,226 | |
LHC Group, Inc. (a) | 63,977 | 12,594 | |
Signify Health, Inc. (b) | 262,814 | 6,649 | |
The Ensign Group, Inc. | 196,400 | 16,340 | |
The Joint Corp. (a)(b) | 137,219 | 9,754 | |
85,092 | |||
Health Care Technology - 0.6% | |||
Phreesia, Inc. (a) | 250,600 | 12,405 | |
Life Sciences Tools & Services - 2.2% | |||
Charles River Laboratories International, Inc. (a) | 84,800 | 28,662 | |
Syneos Health, Inc. (a) | 189,400 | 16,648 | |
45,310 | |||
Pharmaceuticals - 0.9% | |||
Arvinas Holding Co. LLC (a) | 95,400 | 6,939 | |
Intra-Cellular Therapies, Inc. (a) | 116,800 | 4,603 | |
Nektar Therapeutics (a) | 116,500 | 2,105 | |
Terns Pharmaceuticals, Inc. | 282,684 | 4,837 | |
18,484 | |||
TOTAL HEALTH CARE | 333,739 | ||
INDUSTRIALS - 20.2% | |||
Aerospace & Defense - 0.5% | |||
Vectrus, Inc. (a) | 203,997 | 10,408 | |
Building Products - 1.8% | |||
Gibraltar Industries, Inc. (a)(b) | 205,312 | 16,312 | |
Masonite International Corp. (a) | 182,800 | 21,854 | |
38,166 | |||
Commercial Services & Supplies - 1.3% | |||
Knoll, Inc. | 433,000 | 11,258 | |
Tetra Tech, Inc. | 133,200 | 15,913 | |
27,171 | |||
Construction & Engineering - 2.0% | |||
EMCOR Group, Inc. | 244,000 | 30,771 | |
Valmont Industries, Inc. | 44,200 | 10,962 | |
41,733 | |||
Electrical Equipment - 2.5% | |||
Array Technologies, Inc. | 379,332 | 6,183 | |
Atkore, Inc. (a) | 465,000 | 35,898 | |
Generac Holdings, Inc. (a) | 32,700 | 10,749 | |
52,830 | |||
Machinery - 5.0% | |||
ESCO Technologies, Inc. | 137,800 | 13,041 | |
ITT, Inc. | 239,100 | 22,451 | |
Kornit Digital Ltd. (a)(b) | 75,100 | 7,825 | |
Luxfer Holdings PLC sponsored | 804,400 | 18,389 | |
Oshkosh Corp. | 223,200 | 29,337 | |
SPX Flow, Inc. | 190,024 | 13,041 | |
104,084 | |||
Professional Services - 5.5% | |||
ASGN, Inc. (a) | 156,900 | 16,175 | |
Booz Allen Hamilton Holding Corp. Class A | 134,100 | 11,389 | |
FTI Consulting, Inc. (a) | 114,800 | 15,791 | |
ICF International, Inc. | 130,479 | 11,469 | |
Insperity, Inc. | 238,800 | 22,015 | |
KBR, Inc. | 679,300 | 27,675 | |
TriNet Group, Inc. (a) | 125,700 | 9,470 | |
113,984 | |||
Road & Rail - 1.0% | |||
TFI International, Inc. | 217,300 | 20,835 | |
Trading Companies & Distributors - 0.6% | |||
GMS, Inc. (a) | 271,918 | 12,451 | |
TOTAL INDUSTRIALS | 421,662 | ||
INFORMATION TECHNOLOGY - 14.1% | |||
Electronic Equipment & Components - 3.3% | |||
ePlus, Inc. (a)(b) | 115,889 | 10,960 | |
Insight Enterprises, Inc. (a) | 280,872 | 29,346 | |
Napco Security Technolgies, Inc. (a) | 280,851 | 9,139 | |
SYNNEX Corp. | 159,541 | 20,198 | |
69,643 | |||
IT Services - 3.7% | |||
Concentrix Corp. (a) | 210,541 | 32,154 | |
Endava PLC ADR (a) | 121,308 | 12,444 | |
Genpact Ltd. | 268,100 | 12,263 | |
Grid Dynamics Holdings, Inc. (a) | 595,900 | 9,159 | |
Repay Holdings Corp. (a) | 506,660 | 11,506 | |
77,526 | |||
Semiconductors & Semiconductor Equipment - 3.1% | |||
Advanced Energy Industries, Inc. (b) | 153,500 | 15,659 | |
Entegris, Inc. | 102,100 | 11,685 | |
Ichor Holdings Ltd. (a)(b) | 295,000 | 16,597 | |
SiTime Corp. (a) | 1,100 | 108 | |
Synaptics, Inc. (a)(b) | 154,950 | 19,575 | |
63,624 | |||
Software - 4.0% | |||
Digital Turbine, Inc. (a) | 246,600 | 16,318 | |
Five9, Inc. (a)(b) | 72,800 | 12,893 | |
j2 Global, Inc. (a)(b) | 180,300 | 22,453 | |
LivePerson, Inc. (a)(b) | 256,300 | 14,084 | |
Rapid7, Inc. (a)(b) | 200,300 | 16,755 | |
82,503 | |||
TOTAL INFORMATION TECHNOLOGY | 293,296 | ||
MATERIALS - 5.2% | |||
Chemicals - 2.0% | |||
Ashland Global Holdings, Inc. (b) | 160,700 | 15,241 | |
Element Solutions, Inc. | 1,167,800 | 27,315 | |
42,556 | |||
Construction Materials - 1.2% | |||
Eagle Materials, Inc. | 172,300 | 25,287 | |
Containers & Packaging - 0.5% | |||
Aptargroup, Inc. | 71,000 | 10,459 | |
Metals & Mining - 1.5% | |||
Constellium NV (a) | 1,256,500 | 22,441 | |
ERO Copper Corp. (a) | 361,700 | 8,397 | |
30,838 | |||
TOTAL MATERIALS | 109,140 | ||
REAL ESTATE - 3.4% | |||
Equity Real Estate Investment Trusts (REITs) - 2.3% | |||
Americold Realty Trust | 364,200 | 13,847 | |
CoreSite Realty Corp. | 85,400 | 10,355 | |
Essential Properties Realty Trust, Inc. (b) | 534,601 | 13,686 | |
Summit Industrial Income REIT | 711,300 | 9,464 | |
47,352 | |||
Real Estate Management & Development - 1.1% | |||
Cushman & Wakefield PLC (a) | 1,202,300 | 22,856 | |
TOTAL REAL ESTATE | 70,208 | ||
UTILITIES - 1.0% | |||
Gas Utilities - 0.5% | |||
Star Gas Partners LP | 1,013,900 | 10,595 | |
Multi-Utilities - 0.5% | |||
Telecom Plus PLC | 560,783 | 9,433 | |
TOTAL UTILITIES | 20,028 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,308,754) | 2,051,542 | ||
Money Market Funds - 6.2% | |||
Fidelity Cash Central Fund 0.03% (c) | 17,240,287 | 17,244 | |
Fidelity Securities Lending Cash Central Fund 0.03% (c)(d) | 111,819,402 | 111,831 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $129,075) | 129,075 | ||
Equity Funds - 0.8% | |||
Small Blend Funds - 0.8% | |||
iShares Russell 2000 Index ETF (b) | |||
(Cost $12,083) | 74,300 | 16,755 | |
TOTAL INVESTMENT IN SECURITIES - 105.5% | |||
(Cost $1,449,912) | 2,197,372 | ||
NET OTHER ASSETS (LIABILITIES) - (5.5)% | (114,427) | ||
NET ASSETS - 100% | $2,082,945 |
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) 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 | $4 |
Fidelity Securities Lending Cash Central Fund | 39 |
Total | $43 |
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.
The value, beginning of period, for the Fidelity Securities Lending Cash Central Fund was $32,593. Net realized gain (loss) and change in net unrealized appreciation (depreciation) on Fidelity Securities Lending Cash Central Fund is presented in the Statement of Operations, if applicable. Purchases and sales of the Fidelity Securities Lending Cash Central Fund were $411,959 and $332,721, respectively, during the period.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2021, 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 | $54,047 | $54,047 | $-- | $-- |
Consumer Discretionary | 340,505 | 340,505 | -- | -- |
Consumer Staples | 45,724 | 45,724 | -- | -- |
Energy | 26,117 | 26,117 | -- | -- |
Financials | 337,076 | 337,076 | -- | -- |
Health Care | 333,739 | 333,739 | -- | -- |
Industrials | 421,662 | 421,662 | -- | -- |
Information Technology | 293,296 | 293,296 | -- | -- |
Materials | 109,140 | 109,140 | -- | -- |
Real Estate | 70,208 | 70,208 | -- | -- |
Utilities | 20,028 | 20,028 | -- | -- |
Money Market Funds | 129,075 | 129,075 | -- | -- |
Equity Funds | 16,755 | 16,755 | -- | -- |
Total Investments in Securities: | $2,197,372 | $2,197,372 | $-- | $-- |
Net unrealized appreciation on unfunded commitments | $21 | $-- | $21 | $-- |
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 | 85.6% |
Canada | 3.1% |
United Kingdom | 3.1% |
Bermuda | 2.4% |
British Virgin Islands | 1.1% |
France | 1.1% |
Ireland | 1.0% |
Finland | 1.0% |
Others (Individually Less Than 1%) | 1.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $109,527) — See accompanying schedule: Unaffiliated issuers (cost $1,320,837) | $2,068,297 | |
Fidelity Central Funds (cost $129,075) | 129,075 | |
Total Investment in Securities (cost $1,449,912) | $2,197,372 | |
Foreign currency held at value (cost $89) | 89 | |
Receivable for fund shares sold | 1,136 | |
Dividends receivable | 755 | |
Distributions receivable from Fidelity Central Funds | 4 | |
Net unrealized appreciation on unfunded commitments | 21 | |
Other receivables | 23 | |
Total assets | 2,199,400 | |
Liabilities | ||
Payable for investments purchased | $183 | |
Payable for fund shares redeemed | 2,166 | |
Accrued management fee | 1,394 | |
Distribution and service plan fees payable | 492 | |
Other affiliated payables | 359 | |
Other payables and accrued expenses | 33 | |
Collateral on securities loaned | 111,828 | |
Total liabilities | 116,455 | |
Net Assets | $2,082,945 | |
Net Assets consist of: | ||
Paid in capital | $1,216,430 | |
Total accumulated earnings (loss) | 866,515 | |
Net Assets | $2,082,945 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($797,195 ÷ 24,707.34 shares)(a) | $32.27 | |
Maximum offering price per share (100/94.25 of $32.27) | $34.24 | |
Class M: | ||
Net Asset Value and redemption price per share ($614,940 ÷ 21,168.82 shares)(a) | $29.05 | |
Maximum offering price per share (100/96.50 of $29.05) | $30.10 | |
Class C: | ||
Net Asset Value and offering price per share ($88,629 ÷ 4,055.58 shares)(a) | $21.85 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($485,683 ÷ 13,325.45 shares) | $36.45 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($96,498 ÷ 2,635.49 shares) | $36.61 |
(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, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $6,241 | |
Income from Fidelity Central Funds (including $39 from security lending) | 43 | |
Total income | 6,284 | |
Expenses | ||
Management fee | ||
Basic fee | $6,617 | |
Performance adjustment | (329) | |
Transfer agent fees | 1,763 | |
Distribution and service plan fees | 2,826 | |
Accounting fees | 298 | |
Custodian fees and expenses | 20 | |
Independent trustees' fees and expenses | 4 | |
Registration fees | 54 | |
Audit | 31 | |
Legal | 3 | |
Miscellaneous | 2 | |
Total expenses before reductions | 11,289 | |
Expense reductions | (68) | |
Total expenses after reductions | 11,221 | |
Net investment income (loss) | (4,937) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 135,492 | |
Foreign currency transactions | (6) | |
Total net realized gain (loss) | 135,486 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 318,742 | |
Unfunded commitments | 21 | |
Assets and liabilities in foreign currencies | 4 | |
Total change in net unrealized appreciation (depreciation) | 318,767 | |
Net gain (loss) | 454,253 | |
Net increase (decrease) in net assets resulting from operations | $449,316 |
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, 2021 (Unaudited) | Year ended November 30, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(4,937) | $(6,042) |
Net realized gain (loss) | 135,486 | 50,655 |
Change in net unrealized appreciation (depreciation) | 318,767 | 91,261 |
Net increase (decrease) in net assets resulting from operations | 449,316 | 135,874 |
Distributions to shareholders | (47,912) | (70,606) |
Share transactions - net increase (decrease) | 1,128 | (226,782) |
Total increase (decrease) in net assets | 402,532 | (161,514) |
Net Assets | ||
Beginning of period | 1,680,413 | 1,841,927 |
End of period | $2,082,945 | $1,680,413 |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.09 | $24.25 | $24.46 | $29.35 | $25.52 | $27.56 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.07) | (.08) | (.03) | (.04) | .03 | .12B |
Net realized and unrealized gain (loss) | 6.98 | 2.85 | 2.56 | (1.28) | 4.18 | .05 |
Total from investment operations | 6.91 | 2.77 | 2.53 | (1.32) | 4.21 | .17 |
Distributions from net investment income | – | – | – | – | (.08) | – |
Distributions from net realized gain | (.73) | (.93) | (2.74) | (3.57) | (.30) | (2.21) |
Total distributions | (.73) | (.93) | (2.74) | (3.57) | (.38) | (2.21) |
Net asset value, end of period | $32.27 | $26.09 | $24.25 | $24.46 | $29.35 | $25.52 |
Total ReturnC,D,E | 27.05% | 11.78% | 13.97% | (5.18)% | 16.68% | 1.31% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.12%H | 1.22% | .98% | .97% | 1.05% | 1.32% |
Expenses net of fee waivers, if any | 1.12%H | 1.22% | .98% | .97% | 1.05% | 1.32% |
Expenses net of all reductions | 1.12%H | 1.22% | .98% | .96% | 1.04% | 1.31% |
Net investment income (loss) | (.47)%H | (.36)% | (.13)% | (.13)% | .10% | .52%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $797 | $638 | $654 | $640 | $805 | $932 |
Portfolio turnover rateI | 44%H | 47% | 56% | 74% | 84% | 81% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.11 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .07%.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $23.58 | $22.06 | $22.58 | $27.43 | $23.88 | $25.99 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.10) | (.12) | (.07) | (.09) | (.03) | .07B |
Net realized and unrealized gain (loss) | 6.30 | 2.57 | 2.29 | (1.19) | 3.91 | .03 |
Total from investment operations | 6.20 | 2.45 | 2.22 | (1.28) | 3.88 | .10 |
Distributions from net investment income | – | – | – | – | (.03) | – |
Distributions from net realized gain | (.73) | (.93) | (2.74) | (3.57) | (.30) | (2.21) |
Total distributions | (.73) | (.93) | (2.74) | (3.57) | (.33) | (2.21) |
Net asset value, end of period | $29.05 | $23.58 | $22.06 | $22.58 | $27.43 | $23.88 |
Total ReturnC,D,E | 26.92% | 11.49% | 13.73% | (5.42)% | 16.41% | 1.10% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.36%H | 1.45% | 1.22% | 1.20% | 1.28% | 1.54% |
Expenses net of fee waivers, if any | 1.36%H | 1.45% | 1.22% | 1.20% | 1.28% | 1.54% |
Expenses net of all reductions | 1.36%H | 1.45% | 1.21% | 1.19% | 1.27% | 1.54% |
Net investment income (loss) | (.71)%H | (.59)% | (.36)% | (.37)% | (.13)% | .29%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $615 | $503 | $542 | $580 | $734 | $756 |
Portfolio turnover rateI | 44%H | 47% | 56% | 74% | 84% | 81% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.10 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.16) %.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.96 | $17.11 | $18.32 | $23.02 | $20.17 | $22.44 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.13) | (.18) | (.15) | (.18) | (.14) | (.05)B |
Net realized and unrealized gain (loss) | 4.75 | 1.96 | 1.68 | (.95) | 3.29 | (.01) |
Total from investment operations | 4.62 | 1.78 | 1.53 | (1.13) | 3.15 | (.06) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (.73) | (.93) | (2.74) | (3.57) | (.30) | (2.21) |
Total distributions | (.73) | (.93) | (2.74) | (3.57) | (.30) | (2.21) |
Net asset value, end of period | $21.85 | $17.96 | $17.11 | $18.32 | $23.02 | $20.17 |
Total ReturnC,D,E | 26.53% | 10.87% | 13.05% | (5.88)% | 15.80% | .50% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.94%H | 2.04% | 1.79% | 1.74% | 1.81% | 2.08% |
Expenses net of fee waivers, if any | 1.94%H | 2.04% | 1.79% | 1.74% | 1.81% | 2.08% |
Expenses net of all reductions | 1.93%H | 2.03% | 1.78% | 1.73% | 1.80% | 2.07% |
Net investment income (loss) | (1.29)%H | (1.18)% | (.93)% | (.90)% | (.66)% | (.24)%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $89 | $81 | $96 | $196 | $273 | $274 |
Portfolio turnover rateI | 44%H | 47% | 56% | 74% | 84% | 81% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.08 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.69) %.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.34 | $27.09 | $26.89 | $31.84 | $27.65 | $29.59 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.04) | (.02) | .03 | .04 | .11 | .20B |
Net realized and unrealized gain (loss) | 7.88 | 3.20 | 2.91 | (1.42) | 4.54 | .07 |
Total from investment operations | 7.84 | 3.18 | 2.94 | (1.38) | 4.65 | .27 |
Distributions from net investment income | – | – | – | – | (.15) | – |
Distributions from net realized gain | (.73) | (.93) | (2.74) | (3.57) | (.30) | (2.21) |
Total distributions | (.73) | (.93) | (2.74) | (3.57) | (.46)C | (2.21) |
Net asset value, end of period | $36.45 | $29.34 | $27.09 | $26.89 | $31.84 | $27.65 |
Total ReturnD,E | 27.23% | 12.07% | 14.26% | (4.93)% | 17.01% | 1.58% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .87%H | .96% | .72% | .71% | .78% | 1.05% |
Expenses net of fee waivers, if any | .87%H | .95% | .72% | .71% | .78% | 1.04% |
Expenses net of all reductions | .86%H | .95% | .72% | .70% | .77% | 1.04% |
Net investment income (loss) | (.22)%H | (.09)% | .14% | .12% | .37% | .79%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $486 | $378 | $434 | $604 | $758 | $652 |
Portfolio turnover rateI | 44%H | 47% | 56% | 74% | 84% | 81% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.12 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .34%.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.45 | $27.15 | $26.90 | $31.81 | $27.63 | $29.53 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .01 | .07 | .08 | .15 | .24B |
Net realized and unrealized gain (loss) | 7.90 | 3.22 | 2.92 | (1.42) | 4.53 | .07 |
Total from investment operations | 7.89 | 3.23 | 2.99 | (1.34) | 4.68 | .31 |
Distributions from net investment income | – | – | – | – | (.20) | – |
Distributions from net realized gain | (.73) | (.93) | (2.74) | (3.57) | (.30) | (2.21) |
Total distributions | (.73) | (.93) | (2.74) | (3.57) | (.50) | (2.21) |
Net asset value, end of period | $36.61 | $29.45 | $27.15 | $26.90 | $31.81 | $27.63 |
Total ReturnC,D | 27.30% | 12.23% | 14.46% | (4.80)% | 17.17% | 1.73% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .73%G | .81% | .57% | .56% | .63% | .89% |
Expenses net of fee waivers, if any | .73%G | .81% | .57% | .56% | .63% | .89% |
Expenses net of all reductions | .72%G | .80% | .57% | .55% | .62% | .89% |
Net investment income (loss) | (.08)%G | .05% | .29% | .28% | .51% | .94%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $96 | $79 | $117 | $71 | $57 | $44 |
Portfolio turnover rateH | 44%G | 47% | 56% | 74% | 84% | 81% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.12 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .50%.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2021
(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 June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, passive foreign investment companies (PFIC), partnerships, 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 | $788,975 |
Gross unrealized depreciation | (41,332) |
Net unrealized appreciation (depreciation) | $747,643 |
Tax cost | $1,449,729 |
The Fund elected to defer to its next fiscal year approximately $6,623 of ordinary losses recognized during the period January 1, 2020 to November 30, 2020.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Small Cap Fund | 419,953 | 472,701 |
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 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 .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% | $932 | $12 |
Class M | .25% | .25% | 1,450 | 13 |
Class C | .75% | .25% | 444 | 28 |
$2,826 | $53 |
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 | $53 |
Class M | 7 |
Class C(a) | 2 |
$62 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $702 | .19 |
Class M | 516 | .18 |
Class C | 112 | .25 |
Class I | 412 | .18 |
Class Z | 21 | .04 |
$1,763 |
(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 | $16 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Small Cap Fund | 25,850 | 21,626 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Advisor Small Cap Fund | $2 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Small Cap Fund | $4 | $–(a) | $– |
(a) In the amount of less than five hundred dollars.
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 expenses. This amount totaled $65 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 $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Small Cap Fund | ||
Distributions to shareholders | ||
Class A | $17,773 | $24,709 |
Class M | 15,471 | 22,581 |
Class C | 3,281 | 5,121 |
Class I | 9,390 | 14,130 |
Class Z | 1,997 | 4,065 |
Total | $47,912 | $70,606 |
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, 2021 | Year ended November 30, 2020 | Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Small Cap Fund | ||||
Class A | ||||
Shares sold | 1,675 | 2,249 | $50,524 | $48,811 |
Reinvestment of distributions | 638 | 1,006 | 17,137 | 23,936 |
Shares redeemed | (2,070) | (5,744) | (61,867) | (125,770) |
Net increase (decrease) | 243 | (2,489) | $5,794 | $(53,023) |
Class M | ||||
Shares sold | 1,594 | 2,550 | $43,313 | $49,900 |
Reinvestment of distributions | 630 | 1,035 | 15,247 | 22,299 |
Shares redeemed | (2,404) | (6,793) | (64,561) | (133,734) |
Net increase (decrease) | (180) | (3,208) | $(6,001) | $(61,535) |
Class C | ||||
Shares sold | 252 | 354 | $5,120 | $5,349 |
Reinvestment of distributions | 178 | 302 | 3,255 | 4,988 |
Shares redeemed | (909) | (1,737) | (18,683) | (26,156) |
Net increase (decrease) | (479) | (1,081) | $(10,308) | $(15,819) |
Class I | ||||
Shares sold | 2,105 | 2,867 | $71,436 | $70,175 |
Reinvestment of distributions | 292 | 491 | 8,856 | 13,113 |
Shares redeemed | (1,956) | (6,484) | (65,719) | (157,609) |
Net increase (decrease) | 441 | (3,126) | $14,573 | $(74,321) |
Class Z | ||||
Shares sold | 573 | 2,960 | $19,286 | $72,922 |
Reinvestment of distributions | 50 | 129 | 1,528 | 3,452 |
Shares redeemed | (679) | (4,708) | (23,744) | (98,458) |
Net increase (decrease) | (56) | (1,619) | $(2,930) | $(22,084) |
11. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Small Cap Fund | ||||
Class A | 1.12% | |||
Actual | $1,000.00 | $1,270.50 | $6.34 | |
Hypothetical-C | $1,000.00 | $1,019.35 | $5.64 | |
Class M | 1.36% | |||
Actual | $1,000.00 | $1,269.20 | $7.69 | |
Hypothetical-C | $1,000.00 | $1,018.15 | $6.84 | |
Class C | 1.94% | |||
Actual | $1,000.00 | $1,265.30 | $10.96 | |
Hypothetical-C | $1,000.00 | $1,015.26 | $9.75 | |
Class I | .87% | |||
Actual | $1,000.00 | $1,272.30 | $4.93 | |
Hypothetical-C | $1,000.00 | $1,020.59 | $4.38 | |
Class Z | .73% | |||
Actual | $1,000.00 | $1,273.00 | $4.14 | |
Hypothetical-C | $1,000.00 | $1,021.29 | $3.68 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, 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
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711101633.jpg)
Fidelity Advisor Small Cap Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711101997.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, 2019 through November 30, 2020. 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-0721
1.721218.122
Fidelity Advisor® Stock Selector Mid Cap Fund
Semi-Annual Report
May 31, 2021
Includes Fidelity and Fidelity Advisor share classes
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/fid_sun.jpg)
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
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. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Nielsen Holdings PLC | 1.8 |
Caesars Entertainment, Inc. | 1.6 |
Curtiss-Wright Corp. | 1.6 |
PacWest Bancorp | 1.5 |
AECOM | 1.4 |
OneMain Holdings, Inc. | 1.4 |
MRC Global, Inc. | 1.3 |
Sensata Technologies, Inc. PLC | 1.3 |
American Financial Group, Inc. | 1.3 |
Granite Construction, Inc. | 1.2 |
14.4 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Industrials | 18.5 |
Financials | 16.6 |
Consumer Discretionary | 14.2 |
Information Technology | 12.8 |
Health Care | 9.5 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021 * | ||
Stocks and Equity Futures | 98.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.9% |
* Foreign investments - 11.5%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 1.4% | |||
Diversified Telecommunication Services - 0.0% | |||
Iridium Communications, Inc. (a) | 21,700 | $829 | |
Entertainment - 0.2% | |||
Cinemark Holdings, Inc. (a)(b) | 142,500 | 3,229 | |
Live Nation Entertainment, Inc. (a) | 14,700 | 1,325 | |
Warner Music Group Corp. Class A | 31,600 | 1,134 | |
5,688 | |||
Interactive Media & Services - 0.2% | |||
IAC (a) | 9,000 | 1,435 | |
TripAdvisor, Inc. (a) | 43,200 | 1,877 | |
Vimeo, Inc. (a) | 8,911 | 374 | |
3,686 | |||
Media - 1.0% | |||
Cable One, Inc. | 4,100 | 7,444 | |
Discovery Communications, Inc. Class A (a) | 33,180 | 1,065 | |
Gray Television, Inc. | 57,400 | 1,335 | |
Interpublic Group of Companies, Inc. | 102,651 | 3,458 | |
Liberty Media Corp.: | |||
Liberty Formula One Group Series C (a) | 22,200 | 991 | |
Liberty SiriusXM Series A (a) | 27,500 | 1,201 | |
Nexstar Broadcasting Group, Inc. Class A | 19,800 | 3,008 | |
S4 Capital PLC (a) | 109,000 | 861 | |
The New York Times Co. Class A | 98,000 | 4,196 | |
23,559 | |||
TOTAL COMMUNICATION SERVICES | 33,762 | ||
CONSUMER DISCRETIONARY - 13.7% | |||
Auto Components - 1.5% | |||
Adient PLC (a) | 277,500 | 13,892 | |
Lear Corp. | 105,353 | 20,371 | |
34,263 | |||
Automobiles - 0.9% | |||
Aston Martin Lagonda Global Holdings PLC (a)(c) | 127,600 | 3,818 | |
Harley-Davidson, Inc. | 345,272 | 16,735 | |
20,553 | |||
Distributors - 0.7% | |||
LKQ Corp. (a) | 311,598 | 15,879 | |
Diversified Consumer Services - 0.0% | |||
Cairo Mezz PLC (a) | 5,744,132 | 867 | |
Hotels, Restaurants & Leisure - 4.1% | |||
Aristocrat Leisure Ltd. | 219,980 | 6,988 | |
Caesars Entertainment, Inc. (a) | 355,302 | 38,177 | |
Churchill Downs, Inc. | 90,047 | 17,967 | |
Darden Restaurants, Inc. | 50,455 | 7,227 | |
Domino's Pizza, Inc. | 21,500 | 9,178 | |
Elior SA (a)(c) | 158,604 | 1,254 | |
Wyndham Hotels & Resorts, Inc. | 194,833 | 14,624 | |
95,415 | |||
Household Durables - 2.1% | |||
Leggett & Platt, Inc. | 130,540 | 7,184 | |
Mohawk Industries, Inc. (a) | 81,340 | 17,137 | |
NVR, Inc. (a) | 2,778 | 13,577 | |
Taylor Morrison Home Corp. (a) | 404,764 | 11,989 | |
49,887 | |||
Internet & Direct Marketing Retail - 0.2% | |||
Deliveroo Holdings PLC (a)(c) | 158,400 | 566 | |
Farfetch Ltd. Class A (a) | 83,800 | 3,882 | |
4,448 | |||
Leisure Products - 0.6% | |||
Mattel, Inc. (a) | 697,276 | 14,789 | |
Multiline Retail - 0.4% | |||
Nordstrom, Inc. (a)(b) | 294,134 | 9,865 | |
Textiles, Apparel & Luxury Goods - 3.2% | |||
Capri Holdings Ltd. (a) | 303,264 | 17,198 | |
Columbia Sportswear Co. | 83,904 | 8,619 | |
PVH Corp. (a) | 150,354 | 17,264 | |
Ralph Lauren Corp. | 59,269 | 7,354 | |
Tapestry, Inc. (a) | 510,349 | 22,910 | |
73,345 | |||
TOTAL CONSUMER DISCRETIONARY | 319,311 | ||
CONSUMER STAPLES - 3.3% | |||
Beverages - 0.3% | |||
Boston Beer Co., Inc. Class A (a) | 5,800 | 6,137 | |
Molson Coors Beverage Co. Class B (a) | 30,500 | 1,779 | |
7,916 | |||
Food & Staples Retailing - 1.0% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 190,300 | 8,524 | |
Casey's General Stores, Inc. | 11,900 | 2,628 | |
Grocery Outlet Holding Corp. (a)(b) | 62,484 | 2,129 | |
Sprouts Farmers Market LLC (a)(b) | 170,500 | 4,535 | |
U.S. Foods Holding Corp. (a) | 109,300 | 4,256 | |
22,072 | |||
Food Products - 1.4% | |||
Bunge Ltd. | 22,300 | 1,936 | |
Darling Ingredients, Inc. (a) | 156,500 | 10,714 | |
Ingredion, Inc. | 47,700 | 4,528 | |
Lamb Weston Holdings, Inc. | 45,800 | 3,778 | |
Nomad Foods Ltd. (a) | 125,800 | 3,858 | |
Post Holdings, Inc. (a) | 34,500 | 3,986 | |
TreeHouse Foods, Inc. (a) | 86,100 | 4,194 | |
32,994 | |||
Household Products - 0.6% | |||
Energizer Holdings, Inc. | 121,000 | 5,571 | |
Reynolds Consumer Products, Inc. | 88,600 | 2,670 | |
Spectrum Brands Holdings, Inc. | 51,607 | 4,587 | |
12,828 | |||
Personal Products - 0.0% | |||
Herbalife Nutrition Ltd. (a) | 17,800 | 936 | |
TOTAL CONSUMER STAPLES | 76,746 | ||
ENERGY - 1.2% | |||
Energy Equipment & Services - 0.1% | |||
Liberty Oilfield Services, Inc. Class A (a) | 194,460 | 2,909 | |
Oil, Gas & Consumable Fuels - 1.1% | |||
APA Corp. | 135,202 | 2,812 | |
Cimarex Energy Co. | 139,432 | 9,447 | |
DHT Holdings, Inc. | 30,700 | 196 | |
EQT Corp. (a) | 358,492 | 7,485 | |
Euronav NV | 43,400 | 415 | |
Hess Midstream LP | 99,365 | 2,531 | |
HollyFrontier Corp. | 75,606 | 2,455 | |
25,341 | |||
TOTAL ENERGY | 28,250 | ||
FINANCIALS - 16.6% | |||
Banks - 6.0% | |||
Associated Banc-Corp. | 405,800 | 9,329 | |
Bancorp, Inc., Delaware (a) | 195,400 | 4,736 | |
First Horizon National Corp. | 1,446,600 | 27,587 | |
Live Oak Bancshares, Inc. | 100,000 | 6,058 | |
PacWest Bancorp | 771,800 | 34,862 | |
Piraeus Financial Holdings SA (a) | 925,500 | 1,729 | |
Signature Bank | 105,200 | 26,274 | |
TCF Financial Corp. | 381,300 | 18,112 | |
Wintrust Financial Corp. | 125,100 | 10,061 | |
138,748 | |||
Capital Markets - 1.3% | |||
Lazard Ltd. Class A | 171,700 | 8,101 | |
Patria Investments Ltd. | 165,400 | 2,797 | |
The Beauty Health Co. (a)(b) | 690,000 | 9,826 | |
Virtu Financial, Inc. Class A (b) | 281,570 | 8,574 | |
29,298 | |||
Consumer Finance - 2.8% | |||
Ally Financial, Inc. | 167,400 | 9,158 | |
First Cash Financial Services, Inc. | 87,566 | 6,981 | |
LendingTree, Inc. (a) | 19,700 | 4,043 | |
Navient Corp. | 671,700 | 12,272 | |
OneMain Holdings, Inc. | 558,131 | 32,282 | |
64,736 | |||
Diversified Financial Services - 0.9% | |||
Jaws Acquisition Corp. (a)(b) | 800,000 | 11,608 | |
Voya Financial, Inc. | 148,000 | 9,697 | |
21,305 | |||
Insurance - 3.8% | |||
American Financial Group, Inc. | 221,923 | 29,529 | |
Assurant, Inc. | 99,000 | 15,954 | |
BRP Group, Inc. (a) | 308,566 | 7,585 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 15,000 | 7,007 | |
Reinsurance Group of America, Inc. | 104,700 | 13,195 | |
RenaissanceRe Holdings Ltd. | 88,100 | 13,578 | |
Talanx AG | 56,900 | 2,391 | |
89,239 | |||
Mortgage Real Estate Investment Trusts - 0.4% | |||
New Residential Investment Corp. | 970,000 | 10,263 | |
Thrifts & Mortgage Finance - 1.4% | |||
Essent Group Ltd. | 336,600 | 16,103 | |
MGIC Investment Corp. | 1,039,700 | 15,304 | |
31,407 | |||
TOTAL FINANCIALS | 384,996 | ||
HEALTH CARE - 9.5% | |||
Biotechnology - 1.1% | |||
Exelixis, Inc. (a) | 700,000 | 15,785 | |
TG Therapeutics, Inc. (a) | 280,000 | 9,764 | |
25,549 | |||
Health Care Equipment & Supplies - 4.5% | |||
Hologic, Inc. (a) | 184,000 | 11,603 | |
Insulet Corp. (a) | 60,000 | 16,180 | |
Masimo Corp. (a) | 95,000 | 20,482 | |
Nanosonics Ltd. (a) | 2,700,000 | 11,597 | |
Nevro Corp. (a) | 75,000 | 11,303 | |
Penumbra, Inc. (a) | 86,313 | 21,501 | |
Tandem Diabetes Care, Inc. (a) | 128,000 | 10,930 | |
103,596 | |||
Health Care Providers & Services - 3.0% | |||
Alignment Healthcare, Inc. (a) | 440,000 | 11,101 | |
LHC Group, Inc. (a) | 106,000 | 20,866 | |
Molina Healthcare, Inc. (a) | 105,000 | 26,393 | |
Option Care Health, Inc. (a) | 575,000 | 10,546 | |
68,906 | |||
Life Sciences Tools & Services - 0.6% | |||
Bruker Corp. | 210,000 | 14,582 | |
Pharmaceuticals - 0.3% | |||
Nektar Therapeutics (a)(b) | 440,000 | 7,951 | |
TOTAL HEALTH CARE | 220,584 | ||
INDUSTRIALS - 18.5% | |||
Aerospace & Defense - 1.6% | |||
Curtiss-Wright Corp. | 297,300 | 37,258 | |
Airlines - 0.7% | |||
JetBlue Airways Corp. (a) | 253,700 | 5,099 | |
Spirit Airlines, Inc. (a) | 278,000 | 9,927 | |
15,026 | |||
Building Products - 1.1% | |||
Jeld-Wen Holding, Inc. (a) | 893,550 | 25,028 | |
Commercial Services & Supplies - 0.5% | |||
CoreCivic, Inc. (a) | 1,588,334 | 12,437 | |
Construction & Engineering - 4.5% | |||
AECOM (a) | 513,137 | 33,359 | |
API Group Corp. (a)(c) | 863,500 | 18,263 | |
Arcadis NV | 193,284 | 8,438 | |
Fluor Corp. (a) | 966,200 | 17,875 | |
Granite Construction, Inc. (b) | 683,680 | 27,593 | |
105,528 | |||
Electrical Equipment - 1.3% | |||
Sensata Technologies, Inc. PLC (a) | 503,919 | 29,948 | |
Machinery - 1.3% | |||
Allison Transmission Holdings, Inc. | 524,663 | 22,198 | |
Crane Co. | 91,100 | 8,699 | |
30,897 | |||
Marine - 2.0% | |||
Genco Shipping & Trading Ltd. | 464,700 | 7,342 | |
Golden Ocean Group Ltd. | 444,425 | 4,431 | |
Kirby Corp. (a) | 369,700 | 24,153 | |
Safe Bulkers, Inc. (a) | 429,105 | 1,583 | |
Star Bulk Carriers Corp. (b) | 459,508 | 8,965 | |
46,474 | |||
Professional Services - 2.3% | |||
CACI International, Inc. Class A (a) | 43,900 | 11,193 | |
Nielsen Holdings PLC | 1,507,899 | 41,034 | |
52,227 | |||
Road & Rail - 0.9% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 414,100 | 19,765 | |
Trading Companies & Distributors - 2.3% | |||
Beacon Roofing Supply, Inc. (a) | 149,631 | 8,475 | |
MRC Global, Inc. (a) | 2,905,430 | 31,204 | |
NOW, Inc. (a) | 1,389,907 | 14,552 | |
54,231 | |||
TOTAL INDUSTRIALS | 428,819 | ||
INFORMATION TECHNOLOGY - 12.8% | |||
Electronic Equipment & Components - 2.6% | |||
Avnet, Inc. | 401,900 | 17,708 | |
Cognex Corp. | 206,771 | 16,416 | |
Jabil, Inc. | 112,300 | 6,339 | |
Trimble, Inc. (a) | 122,500 | 9,529 | |
TTM Technologies, Inc. (a) | 466,200 | 7,063 | |
Vishay Intertechnology, Inc. | 108,400 | 2,609 | |
59,664 | |||
IT Services - 3.0% | |||
Akamai Technologies, Inc. (a) | 87,900 | 10,039 | |
ExlService Holdings, Inc. (a) | 77,173 | 7,870 | |
Gartner, Inc. (a) | 39,400 | 9,134 | |
GoDaddy, Inc. (a) | 132,000 | 10,687 | |
Liveramp Holdings, Inc. (a) | 68,400 | 3,436 | |
MongoDB, Inc. Class A (a) | 35,500 | 10,364 | |
Nuvei Corp. (c) | 78,700 | 5,918 | |
WEX, Inc. (a) | 60,500 | 11,853 | |
69,301 | |||
Semiconductors & Semiconductor Equipment - 1.6% | |||
Cirrus Logic, Inc. (a) | 178,300 | 13,920 | |
ON Semiconductor Corp. (a) | 373,600 | 14,959 | |
SolarEdge Technologies, Inc. (a) | 30,700 | 7,921 | |
36,800 | |||
Software - 5.2% | |||
Anaplan, Inc. (a) | 149,200 | 7,685 | |
Aspen Technology, Inc. (a) | 57,600 | 7,861 | |
Blackbaud, Inc. (a) | 156,867 | 11,089 | |
Ceridian HCM Holding, Inc. (a) | 247,900 | 22,177 | |
Citrix Systems, Inc. | 57,600 | 6,622 | |
Elastic NV (a) | 69,500 | 8,216 | |
Guidewire Software, Inc. (a) | 55,100 | 5,385 | |
NortonLifeLock, Inc. | 372,400 | 10,301 | |
Procore Technologies, Inc. (a) | 2,400 | 207 | |
Proofpoint, Inc. (a) | 65,100 | 11,250 | |
PTC, Inc. (a) | 113,700 | 15,252 | |
Slack Technologies, Inc. Class A (a) | 134,400 | 5,919 | |
Tenable Holdings, Inc. (a) | 244,500 | 10,220 | |
122,184 | |||
Technology Hardware, Storage & Peripherals - 0.4% | |||
Western Digital Corp. (a) | 127,000 | 9,554 | |
TOTAL INFORMATION TECHNOLOGY | 297,503 | ||
MATERIALS - 6.8% | |||
Chemicals - 2.7% | |||
Ashland Global Holdings, Inc. | 163,800 | 15,535 | |
RPM International, Inc. | 180,200 | 16,854 | |
The Chemours Co. LLC | 542,700 | 19,499 | |
Valvoline, Inc. | 378,804 | 12,501 | |
64,389 | |||
Construction Materials - 0.9% | |||
Eagle Materials, Inc. | 140,400 | 20,605 | |
Containers & Packaging - 0.9% | |||
Aptargroup, Inc. | 137,800 | 20,299 | |
Metals & Mining - 1.5% | |||
Steel Dynamics, Inc. | 406,700 | 25,390 | |
Yamana Gold, Inc. (b) | 1,700,400 | 8,910 | |
34,300 | |||
Paper & Forest Products - 0.8% | |||
Louisiana-Pacific Corp. | 268,400 | 18,039 | |
TOTAL MATERIALS | 157,632 | ||
REAL ESTATE - 9.0% | |||
Equity Real Estate Investment Trusts (REITs) - 8.3% | |||
Americold Realty Trust | 148,700 | 5,654 | |
CubeSmart | 235,372 | 10,307 | |
CyrusOne, Inc. | 215,000 | 15,856 | |
Douglas Emmett, Inc. | 465,600 | 16,166 | |
Duke Realty Corp. | 359,974 | 16,724 | |
Essex Property Trust, Inc. | 46,200 | 13,642 | |
Four Corners Property Trust, Inc. | 377,472 | 10,479 | |
Healthcare Realty Trust, Inc. | 511,254 | 15,511 | |
Invitation Homes, Inc. | 164,600 | 5,970 | |
Lamar Advertising Co. Class A | 115,700 | 12,128 | |
Mid-America Apartment Communities, Inc. | 60,000 | 9,642 | |
Postal Realty Trust, Inc. | 477,400 | 9,648 | |
SITE Centers Corp. | 377,500 | 5,651 | |
Spirit Realty Capital, Inc. | 114,800 | 5,425 | |
Sunstone Hotel Investors, Inc. (a) | 883,700 | 11,099 | |
Terreno Realty Corp. | 121,500 | 7,730 | |
Ventas, Inc. | 295,500 | 16,385 | |
VICI Properties, Inc. | 142,300 | 4,430 | |
192,447 | |||
Real Estate Management & Development - 0.7% | |||
Cushman & Wakefield PLC (a) | 822,411 | 15,634 | |
TOTAL REAL ESTATE | 208,081 | ||
UTILITIES - 3.0% | |||
Electric Utilities - 1.1% | |||
Evergy, Inc. | 104,165 | 6,457 | |
OGE Energy Corp. | 368,800 | 12,724 | |
Portland General Electric Co. | 149,100 | 7,148 | |
26,329 | |||
Gas Utilities - 0.4% | |||
Southwest Gas Holdings, Inc. | 80,000 | 5,281 | |
UGI Corp. | 108,300 | 4,987 | |
10,268 | |||
Multi-Utilities - 0.9% | |||
Black Hills Corp. | 82,700 | 5,441 | |
MDU Resources Group, Inc. | 270,539 | 9,106 | |
NiSource, Inc. | 251,300 | 6,408 | |
20,955 | |||
Water Utilities - 0.6% | |||
Essential Utilities, Inc. | 271,215 | 12,964 | |
TOTAL UTILITIES | 70,516 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,558,074) | 2,226,200 | ||
Nonconvertible Preferred Stocks - 0.5% | |||
CONSUMER DISCRETIONARY - 0.5% | |||
Automobiles - 0.5% | |||
Porsche Automobil Holding SE (Germany) | |||
(Cost $6,904) | 102,342 | 11,576 | |
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.2% | |||
U.S. Treasury Bills, yield at date of purchase 0.01% 8/5/21 (d) | |||
(Cost $3,650) | 3,650 | 3,650 | |
Shares | Value (000s) | ||
Money Market Funds - 5.2% | |||
Fidelity Cash Central Fund 0.03% (e) | 82,544,505 | $82,561 | |
Fidelity Securities Lending Cash Central Fund 0.03% (e)(f) | 37,567,428 | 37,571 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $120,129) | 120,132 | ||
TOTAL INVESTMENT IN SECURITIES - 101.7% | |||
(Cost $1,688,757) | 2,361,558 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (38,689) | ||
NET ASSETS - 100% | $2,322,869 |
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) | 150 | June 2021 | $40,901 | $828 | $828 |
The notional amount of futures purchased as a percentage of Net Assets is 1.8%
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 $29,819,000 or 1.3% of net assets.
(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $2,255,000.
(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 | $23 |
Fidelity Securities Lending Cash Central Fund | 64 |
Total | $87 |
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, 2021, 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 | $33,762 | $33,762 | $-- | $-- |
Consumer Discretionary | 330,887 | 330,887 | -- | -- |
Consumer Staples | 76,746 | 76,746 | -- | -- |
Energy | 28,250 | 28,250 | -- | -- |
Financials | 384,996 | 384,996 | -- | -- |
Health Care | 220,584 | 220,584 | -- | -- |
Industrials | 428,819 | 428,819 | -- | -- |
Information Technology | 297,503 | 297,503 | -- | -- |
Materials | 157,632 | 157,632 | -- | -- |
Real Estate | 208,081 | 208,081 | -- | -- |
Utilities | 70,516 | 70,516 | -- | -- |
U.S. Government and Government Agency Obligations | 3,650 | -- | 3,650 | -- |
Money Market Funds | 120,132 | 120,132 | -- | -- |
Total Investments in Securities: | $2,361,558 | $2,357,908 | $3,650 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $828 | $828 | $-- | $-- |
Total Assets | $828 | $828 | $-- | $-- |
Total Derivative Instruments: | $828 | $828 | $-- | $-- |
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, 2021. 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) | $828 | $0 |
Total Equity Risk | 828 | 0 |
Total Value of Derivatives | $828 | $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 | 4.0% |
Bermuda | 2.0% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 4.5% |
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, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $36,384) — See accompanying schedule: Unaffiliated issuers (cost $1,568,628) | $2,241,426 | |
Fidelity Central Funds (cost $120,129) | 120,132 | |
Total Investment in Securities (cost $1,688,757) | $2,361,558 | |
Cash | 88 | |
Receivable for investments sold | 2,275 | |
Receivable for fund shares sold | 1,152 | |
Dividends receivable | 1,469 | |
Distributions receivable from Fidelity Central Funds | 22 | |
Receivable for daily variation margin on futures contracts | 32 | |
Other receivables | 53 | |
Total assets | 2,366,649 | |
Liabilities | ||
Payable for investments purchased | $3,368 | |
Payable for fund shares redeemed | 788 | |
Accrued management fee | 1,210 | |
Distribution and service plan fees payable | 435 | |
Other affiliated payables | 375 | |
Other payables and accrued expenses | 37 | |
Collateral on securities loaned | 37,567 | |
Total liabilities | 43,780 | |
Net Assets | $2,322,869 | |
Net Assets consist of: | ||
Paid in capital | $1,503,593 | |
Total accumulated earnings (loss) | 819,276 | |
Net Assets | $2,322,869 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($764,511 ÷ 16,350.92 shares)(a) | $46.76 | |
Maximum offering price per share (100/94.25 of $46.76) | $49.61 | |
Class M: | ||
Net Asset Value and redemption price per share ($603,520 ÷ 12,805.44 shares)(a) | $47.13 | |
Maximum offering price per share (100/96.50 of $47.13) | $48.84 | |
Class C: | ||
Net Asset Value and offering price per share ($32,873 ÷ 789.79 shares)(a) | $41.62 | |
Fidelity Stock Selector Mid Cap Fund: | ||
Net Asset Value, offering price and redemption price per share ($422,228 ÷ 8,534.91 shares) | $49.47 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($412,531 ÷ 8,316.32 shares) | $49.60 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($87,206 ÷ 1,760.28 shares) | $49.54 |
(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, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $13,786 | |
Interest | 1 | |
Income from Fidelity Central Funds (including $64 from security lending) | 87 | |
Total income | 13,874 | |
Expenses | ||
Management fee | ||
Basic fee | $5,646 | |
Performance adjustment | 902 | |
Transfer agent fees | 1,793 | |
Distribution and service plan fees | 2,457 | |
Accounting fees | 323 | |
Custodian fees and expenses | 17 | |
Independent trustees' fees and expenses | 4 | |
Registration fees | 76 | |
Audit | 28 | |
Legal | 5 | |
Miscellaneous | 6 | |
Total expenses before reductions | 11,257 | |
Expense reductions | (122) | |
Total expenses after reductions | 11,135 | |
Net investment income (loss) | 2,739 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 144,340 | |
Fidelity Central Funds | 9 | |
Foreign currency transactions | (12) | |
Futures contracts | 6,406 | |
Total net realized gain (loss) | 150,743 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 341,480 | |
Assets and liabilities in foreign currencies | 3 | |
Futures contracts | 401 | |
Total change in net unrealized appreciation (depreciation) | 341,884 | |
Net gain (loss) | 492,627 | |
Net increase (decrease) in net assets resulting from operations | $495,366 |
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, 2021 (Unaudited) | Year ended November 30, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,739 | $18,211 |
Net realized gain (loss) | 150,743 | 30,672 |
Change in net unrealized appreciation (depreciation) | 341,884 | 83,257 |
Net increase (decrease) in net assets resulting from operations | 495,366 | 132,140 |
Distributions to shareholders | (44,080) | (85,310) |
Share transactions - net increase (decrease) | (66,044) | (230,032) |
Total increase (decrease) in net assets | 385,242 | (183,202) |
Net Assets | ||
Beginning of period | 1,937,627 | 2,120,829 |
End of period | $2,322,869 | $1,937,627 |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $37.74 | $36.07 | $39.28 | $39.74 | $33.13 | $32.01 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .30B | .25 | .26 | .13 | .20 |
Net realized and unrealized gain (loss) | 9.85 | 2.85 | 2.80C | 1.04 | 6.68 | 1.49 |
Total from investment operations | 9.90 | 3.15 | 3.05 | 1.30 | 6.81 | 1.69 |
Distributions from net investment income | (.35) | (.21) | (.25) | (.11) | (.19) | (.04) |
Distributions from net realized gain | (.54) | (1.27) | (6.01) | (1.65) | (.01) | (.53) |
Total distributions | (.88)D | (1.48) | (6.26) | (1.76) | (.20) | (.57) |
Net asset value, end of period | $46.76 | $37.74 | $36.07 | $39.28 | $39.74 | $33.13 |
Total ReturnE,F,G | 26.72% | 8.99% | 12.13%C | 3.36% | 20.64% | 5.49% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.08%J | 1.14% | 1.14% | .93% | .87% | .88% |
Expenses net of fee waivers, if any | 1.08%J | 1.14% | 1.14% | .92% | .87% | .88% |
Expenses net of all reductions | 1.07%J | 1.13% | 1.14% | .91% | .86% | .88% |
Net investment income (loss) | .23%J | .94%B | .75% | .64% | .36% | .64% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $765 | $626 | $623 | $532 | $564 | $546 |
Portfolio turnover rateK | 41%J | 86% | 57% | 81% | 84% | 98% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .66%.
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 distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $37.99 | $36.30 | $39.43 | $39.89 | $33.25 | $32.16 |
Income from Investment Operations | ||||||
Net investment income (loss)A | –B | .22C | .17 | .16 | .04 | .13 |
Net realized and unrealized gain (loss) | 9.93 | 2.86 | 2.85D | 1.04 | 6.71 | 1.49 |
Total from investment operations | 9.93 | 3.08 | 3.02 | 1.20 | 6.75 | 1.62 |
Distributions from net investment income | (.25) | (.12) | (.14) | (.01) | (.11) | – |
Distributions from net realized gain | (.54) | (1.27) | (6.01) | (1.65) | (.01) | (.53) |
Total distributions | (.79) | (1.39) | (6.15) | (1.66) | (.11)E | (.53) |
Net asset value, end of period | $47.13 | $37.99 | $36.30 | $39.43 | $39.89 | $33.25 |
Total ReturnF,G,H | 26.56% | 8.71% | 11.88%D | 3.10% | 20.37% | 5.22% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.32%K | 1.38% | 1.38% | 1.17% | 1.11% | 1.12% |
Expenses net of fee waivers, if any | 1.32%K | 1.38% | 1.38% | 1.17% | 1.11% | 1.12% |
Expenses net of all reductions | 1.31%K | 1.37% | 1.38% | 1.15% | 1.10% | 1.11% |
Net investment income (loss) | (.01)%K | .70%C | .51% | .39% | .11% | .41% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $604 | $496 | $544 | $536 | $606 | $591 |
Portfolio turnover rateL | 41%K | 86% | 57% | 81% | 84% | 98% |
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 one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .42%.
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 11.70%
E Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $33.58 | $32.15 | $35.67 | $36.25 | $30.28 | $29.48 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.10) | .04B | (.01) | (.05) | (.13) | (.03) |
Net realized and unrealized gain (loss) | 8.78 | 2.50 | 2.46C | .96 | 6.10 | 1.36 |
Total from investment operations | 8.68 | 2.54 | 2.45 | .91 | 5.97 | 1.33 |
Distributions from net investment income | (.10) | – | – | – | – | – |
Distributions from net realized gain | (.54) | (1.11) | (5.97) | (1.49) | – | (.53) |
Total distributions | (.64) | (1.11) | (5.97) | (1.49) | – | (.53) |
Net asset value, end of period | $41.62 | $33.58 | $32.15 | $35.67 | $36.25 | $30.28 |
Total ReturnD,E,F | 26.22% | 8.10% | 11.27%C | 2.59% | 19.72% | 4.71% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.87%I | 1.93% | 1.93% | 1.69% | 1.63% | 1.63% |
Expenses net of fee waivers, if any | 1.87%I | 1.93% | 1.93% | 1.69% | 1.63% | 1.63% |
Expenses net of all reductions | 1.86%I | 1.92% | 1.93% | 1.67% | 1.62% | 1.63% |
Net investment income (loss) | (.54)%I | .15%B | (.04)% | (.12)% | (.40)% | (.11)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $33 | $30 | $35 | $114 | $142 | $140 |
Portfolio turnover rateJ | 41%I | 86% | 57% | 81% | 84% | 98% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.08 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.14) %.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Stock Selector Mid Cap Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $39.90 | $38.00 | $41.00 | $41.43 | $34.53 | $33.34 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .40B | .34 | .33 | .20 | .28 |
Net realized and unrealized gain (loss) | 10.42 | 3.01 | 2.99C | 1.09 | 6.96 | 1.55 |
Total from investment operations | 10.53 | 3.41 | 3.33 | 1.42 | 7.16 | 1.83 |
Distributions from net investment income | (.42) | (.24) | (.32) | (.20) | (.26) | (.12) |
Distributions from net realized gain | (.54) | (1.27) | (6.01) | (1.65) | (.01) | (.53) |
Total distributions | (.96) | (1.51) | (6.33) | (1.85) | (.26)D | (.64)D |
Net asset value, end of period | $49.47 | $39.90 | $38.00 | $41.00 | $41.43 | $34.53 |
Total ReturnE,F | 26.88% | 9.24% | 12.38%C | 3.53% | 20.87% | 5.73% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .82%I | .89% | .94% | .77% | .70% | .64% |
Expenses net of fee waivers, if any | .82%I | .89% | .94% | .76% | .70% | .64% |
Expenses net of all reductions | .81%I | .88% | .94% | .75% | .69% | .63% |
Net investment income (loss) | .49%I | 1.19%B | .95% | .80% | .53% | .89% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $422 | $342 | $362 | $502 | $545 | $222 |
Portfolio turnover rateJ | 41%I | 86% | 57% | 81% | 84% | 98% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .90%.
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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $40.01 | $38.15 | $41.11 | $41.51 | $34.60 | $33.39 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .10 | .40B | .35 | .36 | .23 | .28 |
Net realized and unrealized gain (loss) | 10.45 | 3.02 | 3.01C | 1.10 | 6.96 | 1.56 |
Total from investment operations | 10.55 | 3.42 | 3.36 | 1.46 | 7.19 | 1.84 |
Distributions from net investment income | (.42) | (.29) | (.31) | (.21) | (.27) | (.11) |
Distributions from net realized gain | (.54) | (1.27) | (6.01) | (1.65) | (.01) | (.53) |
Total distributions | (.96) | (1.56) | (6.32) | (1.86) | (.28) | (.63)D |
Net asset value, end of period | $49.60 | $40.01 | $38.15 | $41.11 | $41.51 | $34.60 |
Total ReturnE,F | 26.85% | 9.23% | 12.41%C | 3.62% | 20.92% | 5.75% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .84%I | .90% | .91% | .69% | .63% | .64% |
Expenses net of fee waivers, if any | .84%I | .90% | .91% | .69% | .63% | .64% |
Expenses net of all reductions | .83%I | .89% | .91% | .67% | .62% | .64% |
Net investment income (loss) | .45%I | 1.18%B | .98% | .87% | .60% | .88% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $413 | $293 | $312 | $279 | $683 | $523 |
Portfolio turnover rateJ | 41%I | 86% | 57% | 81% | 84% | 98% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.10 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .90%.
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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | ||||
2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.97 | $38.12 | $41.15 | $41.57 | $35.79 |
Income from Investment Operations | |||||
Net investment income (loss)B | .12 | .44C | .41 | .43 | .23 |
Net realized and unrealized gain (loss) | 10.46 | 3.03 | 2.99D | 1.08 | 5.55 |
Total from investment operations | 10.58 | 3.47 | 3.40 | 1.51 | 5.78 |
Distributions from net investment income | (.47) | (.35) | (.42) | (.28) | – |
Distributions from net realized gain | (.54) | (1.27) | (6.01) | (1.65) | – |
Total distributions | (1.01) | (1.62) | (6.43) | (1.93) | – |
Net asset value, end of period | $49.54 | $39.97 | $38.12 | $41.15 | $41.57 |
Total ReturnE,F | 26.97% | 9.39% | 12.59%D | 3.75% | 16.15% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .70%I | .75% | .75% | .53% | .48%I |
Expenses net of fee waivers, if any | .70%I | .75% | .75% | .53% | .47%I |
Expenses net of all reductions | .68%I | .73% | .75% | .52% | .46%I |
Net investment income (loss) | .54%I | 1.33%C | 1.14% | 1.03% | .69%I |
Supplemental Data | |||||
Net assets, end of period (in millions) | $87 | $150 | $245 | $18 | $9 |
Portfolio turnover rateJ | 41%I | 86% | 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 one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), 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 $.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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2021
(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 June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 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 | $693,030 |
Gross unrealized depreciation | (23,366) |
Net unrealized appreciation (depreciation) | $669,664 |
Tax cost | $1,691,894 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
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 risks:
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 | 420,912 | 529,108 |
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 .61% 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% | $887 | $16 |
Class M | .25% | .25% | 1,409 | 25 |
Class C | .75% | .25% | 161 | 18 |
$2,457 | $59 |
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 | 6 |
Class C(a) | 1 |
$40 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $620 | .17 |
Class M | 472 | .17 |
Class C | 34 | .21 |
Fidelity Stock Selector Mid Cap Fund | 311 | .16 |
Class I | 332 | .19 |
Class Z | 24 | .04 |
$1,793 |
(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 | $14 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Stock Selector Mid Cap Fund | 18,106 | 39,530 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Advisor Stock Selector Mid Cap Fund | $2 |
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Stock Selector Mid Cap Fund | $7 | $– | $– |
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 expenses. This amount totaled $119 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 $3.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Stock Selector Mid Cap Fund | ||
Distributions to shareholders | ||
Class A | $14,523 | $25,261 |
Class M | 10,221 | 20,788 |
Class C | 574 | 1,203 |
Fidelity Stock Selector Mid Cap Fund | 7,971 | 14,538 |
Class I | 6,942 | 12,973 |
Class Z | 3,849 | 10,547 |
Total | $44,080 | $85,310 |
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, 2021 | Year ended November 30, 2020 | Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Stock Selector Mid Cap Fund | ||||
Class A | ||||
Shares sold | 678 | 1,946 | $29,237 | $60,114 |
Reinvestment of distributions | 347 | 663 | 13,496 | 23,541 |
Shares redeemed | (1,270) | (3,286) | (53,744) | (103,394) |
Net increase (decrease) | (245) | (677) | $(11,011) | $(19,739) |
Class M | ||||
Shares sold | 710 | 1,204 | $30,560 | $38,954 |
Reinvestment of distributions | 253 | 565 | 9,912 | 20,270 |
Shares redeemed | (1,220) | (3,685) | (52,181) | (116,444) |
Net increase (decrease) | (257) | (1,916) | $(11,709) | $(57,220) |
Class C�� | ||||
Shares sold | 91 | 146 | $3,523 | $4,091 |
Reinvestment of distributions | 17 | 37 | 574 | 1,171 |
Shares redeemed | (220) | (377) | (8,419) | (10,339) |
Net increase (decrease) | (112) | (194) | $(4,322) | $(5,077) |
Fidelity Stock Selector Mid Cap Fund | ||||
Shares sold | 1,118 | 1,599 | $51,965 | $54,538 |
Reinvestment of distributions | 188 | 376 | 7,734 | 14,097 |
Shares redeemed | (1,341) | (2,921) | (58,432) | (94,539) |
Net increase (decrease) | (35) | (946) | $1,267 | $(25,904) |
Class I | ||||
Shares sold | 1,542 | 1,451 | $72,687 | $47,436 |
Reinvestment of distributions | 159 | 334 | 6,540 | 12,548 |
Shares redeemed | (713) | (2,636) | (32,343) | (88,147) |
Net increase (decrease) | 988 | (851) | $46,884 | $(28,163) |
Class Z | ||||
Shares sold | 454 | 2,717 | $20,311 | $86,380 |
Reinvestment of distributions | 91 | 277 | 3,740 | 10,383 |
Shares redeemed | (2,531) | (5,681) | (111,204) | (190,692) |
Net increase (decrease) | (1,986) | (2,687) | $(87,153) | $(93,929) |
12. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Stock Selector Mid Cap Fund | ||||
Class A | 1.08% | |||
Actual | $1,000.00 | $1,266.90 | $6.10 | |
Hypothetical-C | $1,000.00 | $1,019.55 | $5.44 | |
Class M | 1.32% | |||
Actual | $1,000.00 | $1,265.60 | $7.46 | |
Hypothetical-C | $1,000.00 | $1,018.35 | $6.64 | |
Class C | 1.87% | |||
Actual | $1,000.00 | $1,262.20 | $10.55 | |
Hypothetical-C | $1,000.00 | $1,015.61 | $9.40 | |
Fidelity Stock Selector Mid Cap Fund | .82% | |||
Actual | $1,000.00 | $1,268.80 | $4.64 | |
Hypothetical-C | $1,000.00 | $1,020.84 | $4.13 | |
Class I | .84% | |||
Actual | $1,000.00 | $1,268.50 | $4.75 | |
Hypothetical-C | $1,000.00 | $1,020.74 | $4.23 | |
Class Z | .70% | |||
Actual | $1,000.00 | $1,269.70 | $3.96 | |
Hypothetical-C | $1,000.00 | $1,021.44 | $3.53 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 November 2020. 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, 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/0001379491-21-003389/img711103232.jpg)
Fidelity Advisor Stock Selector Mid Cap Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711103419.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, 2019 through November 30, 2020. 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-0721
1.704677.123
Fidelity Advisor® Large Cap Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
General Electric Co. | 7.1 |
Microsoft Corp. | 5.8 |
Wells Fargo & Co. | 4.7 |
Exxon Mobil Corp. | 4.2 |
Bank of America Corp. | 3.8 |
Comcast Corp. Class A | 3.4 |
Apple, Inc. | 2.8 |
Altria Group, Inc. | 2.7 |
United Parcel Service, Inc. Class B | 2.2 |
Bristol-Myers Squibb Co. | 1.9 |
38.6 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Financials | 19.2 |
Information Technology | 17.9 |
Industrials | 16.7 |
Health Care | 14.2 |
Communication Services | 8.7 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021* | ||
Stocks | 99.3% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 9.9%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.2% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 8.7% | |||
Diversified Telecommunication Services - 0.4% | |||
Verizon Communications, Inc. | 69,576 | $3,930,348 | |
Entertainment - 2.6% | |||
Activision Blizzard, Inc. | 31,311 | 3,044,995 | |
Nintendo Co. Ltd. ADR | 44,300 | 3,425,276 | |
The Walt Disney Co. (a) | 68,675 | 12,268,789 | |
Vivendi SA | 224,834 | 8,171,165 | |
26,910,225 | |||
Interactive Media & Services - 1.8% | |||
Alphabet, Inc.: | |||
Class A (a) | 3,239 | 7,633,837 | |
Class C (a) | 2,922 | 7,046,578 | |
Facebook, Inc. Class A (a) | 5,400 | 1,775,142 | |
Match Group, Inc. (a) | 19,535 | 2,800,928 | |
19,256,485 | |||
Media - 3.9% | |||
Comcast Corp. Class A | 610,323 | 34,995,921 | |
Interpublic Group of Companies, Inc. | 156,620 | 5,276,528 | |
40,272,449 | |||
TOTAL COMMUNICATION SERVICES | 90,369,507 | ||
CONSUMER DISCRETIONARY - 5.4% | |||
Auto Components - 0.6% | |||
BorgWarner, Inc. | 128,716 | 6,601,844 | |
Automobiles - 0.7% | |||
General Motors Co. (a) | 122,500 | 7,265,475 | |
Distributors - 0.0% | |||
LKQ Corp. (a) | 2,102 | 107,118 | |
Hotels, Restaurants & Leisure - 1.4% | |||
Elior SA (a)(b) | 86,400 | 683,055 | |
Expedia, Inc. (a) | 18,500 | 3,273,575 | |
Marriott International, Inc. Class A (a) | 5,200 | 746,616 | |
Starbucks Corp. | 10,500 | 1,195,740 | |
The Booking Holdings, Inc. (a) | 3,514 | 8,298,487 | |
14,197,473 | |||
Household Durables - 1.5% | |||
Mohawk Industries, Inc. (a) | 36,406 | 7,670,016 | |
Sony Group Corp. sponsored ADR | 14,500 | 1,444,345 | |
Whirlpool Corp. | 28,134 | 6,670,290 | |
15,784,651 | |||
Internet & Direct Marketing Retail - 0.0% | |||
Ocado Group PLC (a) | 4,100 | 110,032 | |
Specialty Retail - 1.2% | |||
Lowe's Companies, Inc. | 63,030 | 12,280,135 | |
TOTAL CONSUMER DISCRETIONARY | 56,346,728 | ||
CONSUMER STAPLES - 5.9% | |||
Beverages - 1.5% | |||
Anheuser-Busch InBev SA NV ADR | 6,300 | 477,351 | |
Diageo PLC sponsored ADR | 25,100 | 4,850,575 | |
Keurig Dr. Pepper, Inc. | 38,400 | 1,419,264 | |
The Coca-Cola Co. | 155,781 | 8,613,131 | |
15,360,321 | |||
Food & Staples Retailing - 0.9% | |||
Costco Wholesale Corp. | 3,300 | 1,248,291 | |
Performance Food Group Co. (a) | 37,100 | 1,859,823 | |
Sysco Corp. | 75,800 | 6,139,800 | |
9,247,914 | |||
Food Products - 0.1% | |||
Lamb Weston Holdings, Inc. | 9,900 | 816,651 | |
Household Products - 0.2% | |||
Colgate-Palmolive Co. | 2,300 | 192,694 | |
Procter & Gamble Co. | 1,500 | 202,275 | |
Spectrum Brands Holdings, Inc. | 25,267 | 2,245,984 | |
2,640,953 | |||
Tobacco - 3.2% | |||
Altria Group, Inc. | 570,380 | 28,074,104 | |
British American Tobacco PLC sponsored ADR | 109,547 | 4,236,182 | |
Swedish Match Co. AB | 120,000 | 1,113,195 | |
33,423,481 | |||
TOTAL CONSUMER STAPLES | 61,489,320 | ||
ENERGY - 7.7% | |||
Energy Equipment & Services - 0.1% | |||
Subsea 7 SA | 139,200 | 1,357,249 | |
Oil, Gas & Consumable Fuels - 7.6% | |||
Canadian Natural Resources Ltd. | 22,800 | 800,172 | |
Cenovus Energy, Inc. (Canada) | 995,862 | 8,324,977 | |
Exxon Mobil Corp. | 735,868 | 42,952,615 | |
Hess Corp. | 210,735 | 17,663,808 | |
Imperial Oil Ltd. | 34,900 | 1,174,225 | |
Kosmos Energy Ltd. (a) | 1,019,816 | 3,243,015 | |
Phillips 66 Co. | 51,200 | 4,312,064 | |
78,470,876 | |||
TOTAL ENERGY | 79,828,125 | ||
FINANCIALS - 19.2% | |||
Banks - 13.1% | |||
Bank of America Corp. | 917,814 | 38,906,135 | |
JPMorgan Chase & Co. | 89,518 | 14,702,436 | |
M&T Bank Corp. | 12,828 | 2,061,331 | |
PNC Financial Services Group, Inc. | 69,941 | 13,616,114 | |
Truist Financial Corp. | 156,127 | 9,645,526 | |
U.S. Bancorp | 135,490 | 8,235,082 | |
Wells Fargo & Co. | 1,029,203 | 48,084,364 | |
135,250,988 | |||
Capital Markets - 3.6% | |||
KKR & Co. LP | 98,391 | 5,479,395 | |
Morgan Stanley | 68,025 | 6,186,874 | |
Northern Trust Corp. | 105,991 | 12,845,049 | |
Raymond James Financial, Inc. | 19,662 | 2,606,985 | |
State Street Corp. | 112,319 | 9,769,507 | |
36,887,810 | |||
Consumer Finance - 0.7% | |||
Discover Financial Services | 59,800 | 7,012,148 | |
Diversified Financial Services - 0.5% | |||
KKR Renaissance Co-Invest LP unit (a)(c) | 9,037 | 5,431,672 | |
Insurance - 0.2% | |||
Chubb Ltd. | 13,795 | 2,345,012 | |
Thrifts & Mortgage Finance - 1.1% | |||
MGIC Investment Corp. | 152,476 | 2,244,447 | |
Radian Group, Inc. | 412,031 | 9,620,924 | |
11,865,371 | |||
TOTAL FINANCIALS | 198,793,001 | ||
HEALTH CARE - 14.2% | |||
Biotechnology - 0.7% | |||
AbbVie, Inc. | 14,426 | 1,633,023 | |
ADC Therapeutics SA (a) | 14,300 | 309,595 | |
Alnylam Pharmaceuticals, Inc. (a) | 11,419 | 1,621,384 | |
Crinetics Pharmaceuticals, Inc. (a) | 21,400 | 375,570 | |
Gritstone Bio, Inc. (a) | 20,040 | 184,368 | |
Heron Therapeutics, Inc. (a) | 9,716 | 128,931 | |
Insmed, Inc. (a) | 47,497 | 1,168,426 | |
Intercept Pharmaceuticals, Inc. (a)(d) | 71,150 | 1,183,225 | |
Vaxcyte, Inc. | 11,800 | 248,626 | |
6,853,148 | |||
Health Care Equipment & Supplies - 1.4% | |||
Becton, Dickinson & Co. | 10,797 | 2,611,686 | |
Boston Scientific Corp. (a) | 270,126 | 11,493,861 | |
Danaher Corp. | 3,400 | 870,876 | |
iRhythm Technologies, Inc. (a) | 100 | 7,546 | |
14,983,969 | |||
Health Care Providers & Services - 6.1% | |||
AmerisourceBergen Corp. | 20,579 | 2,361,234 | |
Cardinal Health, Inc. | 95,082 | 5,331,248 | |
Centene Corp. (a) | 16,400 | 1,207,040 | |
Cigna Corp. | 52,403 | 13,564,517 | |
Covetrus, Inc. (a) | 26,621 | 738,467 | |
CVS Health Corp. | 154,598 | 13,363,451 | |
Humana, Inc. | 1,500 | 656,550 | |
McKesson Corp. | 57,806 | 11,121,296 | |
UnitedHealth Group, Inc. | 34,899 | 14,375,596 | |
62,719,399 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B (a) | 114,062 | 207,593 | |
Pharmaceuticals - 6.0% | |||
Bayer AG | 163,956 | 10,321,410 | |
Bristol-Myers Squibb Co. | 303,517 | 19,947,137 | |
Eli Lilly & Co. | 9,400 | 1,877,556 | |
GlaxoSmithKline PLC sponsored ADR | 282,738 | 10,961,752 | |
Intra-Cellular Therapies, Inc. (a) | 10,200 | 401,982 | |
Johnson & Johnson | 88,284 | 14,942,067 | |
Pliant Therapeutics, Inc. | 16,400 | 492,984 | |
Sanofi SA sponsored ADR | 38,000 | 2,030,340 | |
TherapeuticsMD, Inc. (a)(d) | 513,152 | 620,914 | |
Viatris, Inc. | 11,800 | 179,832 | |
61,775,974 | |||
TOTAL HEALTH CARE | 146,540,083 | ||
INDUSTRIALS - 16.6% | |||
Aerospace & Defense - 2.5% | |||
Airbus Group NV (a) | 29,600 | 3,860,704 | |
General Dynamics Corp. | 13,129 | 2,493,328 | |
Huntington Ingalls Industries, Inc. | 9,819 | 2,122,966 | |
Maxar Technologies, Inc. | 5,200 | 161,720 | |
MTU Aero Engines AG | 3,100 | 799,866 | |
Raytheon Technologies Corp. | 15,092 | 1,338,811 | |
Rolls-Royce Holdings PLC | 1,168,200 | 1,772,044 | |
Safran SA | 5,800 | 867,842 | |
The Boeing Co. (a) | 48,367 | 11,947,616 | |
25,364,897 | |||
Air Freight & Logistics - 2.8% | |||
FedEx Corp. | 21,392 | 6,734,416 | |
United Parcel Service, Inc. Class B | 104,163 | 22,353,380 | |
29,087,796 | |||
Airlines - 0.1% | |||
Copa Holdings SA Class A (a) | 100 | 8,226 | |
Ryanair Holdings PLC sponsored ADR (a) | 9,000 | 1,050,750 | |
1,058,976 | |||
Building Products - 0.2% | |||
Johnson Controls International PLC | 26,000 | 1,730,040 | |
Electrical Equipment - 1.3% | |||
Acuity Brands, Inc. | 15,056 | 2,796,652 | |
Hubbell, Inc. Class B | 12,385 | 2,361,076 | |
Vertiv Holdings LLC (a)(c) | 327,000 | 8,116,140 | |
13,273,868 | |||
Industrial Conglomerates - 7.4% | |||
3M Co. | 16,059 | 3,260,619 | |
General Electric Co. | 5,232,308 | 73,566,252 | |
76,826,871 | |||
Machinery - 1.3% | |||
Caterpillar, Inc. | 4,100 | 988,428 | |
Cummins, Inc. | 6,000 | 1,543,680 | |
Epiroc AB | 28,300 | 10,225 | |
Epiroc AB (A Shares) | 28,300 | 640,788 | |
Flowserve Corp. | 55,119 | 2,336,494 | |
Fortive Corp. | 27,900 | 2,023,308 | |
Otis Worldwide Corp. | 19,696 | 1,542,788 | |
Stanley Black & Decker, Inc. | 9,300 | 2,016,240 | |
Westinghouse Air Brake Co. | 28,145 | 2,329,280 | |
13,431,231 | |||
Professional Services - 0.1% | |||
Acacia Research Corp. (a) | 36,900 | 197,415 | |
Equifax, Inc. | 3,700 | 869,648 | |
1,067,063 | |||
Road & Rail - 0.9% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 117,458 | 5,606,270 | |
Lyft, Inc. (a) | 27,816 | 1,588,015 | |
Ryder System, Inc. | 30,700 | 2,510,953 | |
9,705,238 | |||
Trading Companies & Distributors - 0.0% | |||
Beijer Ref AB (B Shares) | 15,900 | 275,624 | |
TOTAL INDUSTRIALS | 171,821,604 | ||
INFORMATION TECHNOLOGY - 17.9% | |||
Electronic Equipment & Components - 0.3% | |||
CDW Corp. | 4,000 | 661,680 | |
Vontier Corp. | 65,980 | 2,314,578 | |
2,976,258 | |||
IT Services - 3.9% | |||
Amadeus IT Holding SA Class A (a) | 24,300 | 1,834,620 | |
Edenred SA | 35,600 | 1,935,933 | |
Edenred SA rights (a)(e) | 35,600 | 32,650 | |
Fidelity National Information Services, Inc. | 42,600 | 6,346,548 | |
Genpact Ltd. | 43,400 | 1,985,116 | |
IBM Corp. | 11,500 | 1,653,010 | |
MasterCard, Inc. Class A | 8,015 | 2,890,049 | |
Sabre Corp. (a) | 86,900 | 1,203,565 | |
Snowflake Computing, Inc. | 800 | 190,424 | |
Twilio, Inc. Class A (a) | 900 | 302,400 | |
Unisys Corp. (a) | 141,362 | 3,634,417 | |
Visa, Inc. Class A | 78,827 | 17,917,377 | |
39,926,109 | |||
Semiconductors & Semiconductor Equipment - 3.2% | |||
Analog Devices, Inc. | 11,118 | 1,830,023 | |
Applied Materials, Inc. | 21,516 | 2,972,005 | |
Intel Corp. | 94,500 | 5,397,840 | |
Lam Research Corp. | 3,000 | 1,949,550 | |
Marvell Technology, Inc. | 38,801 | 1,874,088 | |
Qualcomm, Inc. | 139,401 | 18,755,011 | |
32,778,517 | |||
Software - 7.6% | |||
Autodesk, Inc. (a) | 8,741 | 2,498,702 | |
Dynatrace, Inc. (a) | 26,665 | 1,379,647 | |
Elastic NV (a) | 23,000 | 2,718,830 | |
Microsoft Corp. | 241,553 | 60,310,953 | |
PTC, Inc. (a) | 10,200 | 1,368,228 | |
SAP SE sponsored ADR | 69,317 | 9,699,528 | |
Workday, Inc. Class A (a) | 3,300 | 754,776 | |
78,730,664 | |||
Technology Hardware, Storage & Peripherals - 2.9% | |||
Apple, Inc. | 231,168 | 28,805,844 | |
Samsung Electronics Co. Ltd. | 22,520 | 1,635,521 | |
30,441,365 | |||
TOTAL INFORMATION TECHNOLOGY | 184,852,913 | ||
MATERIALS - 2.6% | |||
Chemicals - 1.0% | |||
DuPont de Nemours, Inc. | 99,200 | 8,391,328 | |
Livent Corp. (a) | 4,400 | 85,844 | |
PPG Industries, Inc. | 10,700 | 1,923,004 | |
10,400,176 | |||
Metals & Mining - 1.6% | |||
BHP Group Ltd. sponsored ADR (d) | 69,965 | 5,185,106 | |
First Quantum Minerals Ltd. | 83,200 | 2,047,258 | |
Freeport-McMoRan, Inc. | 219,604 | 9,381,483 | |
16,613,847 | |||
TOTAL MATERIALS | 27,014,023 | ||
REAL ESTATE - 0.7% | |||
Equity Real Estate Investment Trusts (REITs) - 0.7% | |||
American Tower Corp. | 10,709 | 2,735,721 | |
Equinix, Inc. | 542 | 399,302 | |
Simon Property Group, Inc. | 34,600 | 4,445,754 | |
7,580,777 | |||
UTILITIES - 0.3% | |||
Electric Utilities - 0.2% | |||
Entergy Corp. | 8,900 | 936,814 | |
Southern Co. | 22,200 | 1,419,024 | |
2,355,838 | |||
Multi-Utilities - 0.1% | |||
CenterPoint Energy, Inc. | 31,100 | 786,830 | |
Sempra Energy | 2,034 | 275,587 | |
1,062,417 | |||
TOTAL UTILITIES | 3,418,255 | ||
TOTAL COMMON STOCKS | |||
(Cost $630,134,653) | 1,028,054,336 | ||
Preferred Stocks - 0.1% | |||
Convertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Internet & Direct Marketing Retail - 0.0% | |||
Reddit, Inc. Series E (c)(f) | 1,200 | 50,969 | |
Nonconvertible Preferred Stocks - 0.1% | |||
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Embraer SA sponsored ADR (a) | 84,900 | 1,136,811 | |
TOTAL PREFERRED STOCKS | |||
(Cost $984,073) | 1,187,780 | ||
Other - 0.2% | |||
Energy - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) (c)(f)(g) | |||
(Cost $3,301,608) | 3,301,608 | 1,465,914 | |
Money Market Funds - 1.1% | |||
Fidelity Cash Central Fund 0.03% (h) | 4,032,243 | 4,033,049 | |
Fidelity Securities Lending Cash Central Fund 0.03% (h)(i) | 7,277,903 | 7,278,631 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $11,311,680) | 11,311,680 | ||
TOTAL INVESTMENT IN SECURITIES - 100.6% | |||
(Cost $645,732,014) | 1,042,019,710 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (5,827,358) | ||
NET ASSETS - 100% | $1,036,192,352 |
Legend
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $683,055 or 0.1% of net assets.
(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 $15,064,695 or 1.5% of net assets.
(d) Security or a portion of the security is on loan at period end.
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(f) Level 3 security
(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 |
KKR Renaissance Co-Invest LP unit | 7/25/13 | $953,404 |
Reddit, Inc. Series E | 5/18/21 | $50,969 |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $3,301,608 |
Vertiv Holdings LLC | 2/6/20 | $3,270,000 |
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 | $860 |
Fidelity Securities Lending Cash Central Fund | 28,981 |
Total | $29,841 |
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, 2021, 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 | $90,369,507 | $90,369,507 | $-- | $-- |
Consumer Discretionary | 56,397,697 | 56,346,728 | -- | 50,969 |
Consumer Staples | 61,489,320 | 61,489,320 | --�� | -- |
Energy | 79,828,125 | 79,828,125 | -- | -- |
Financials | 198,793,001 | 193,361,329 | 5,431,672 | -- |
Health Care | 146,540,083 | 146,540,083 | -- | -- |
Industrials | 172,958,415 | 171,186,371 | 1,772,044 | -- |
Information Technology | 184,852,913 | 184,820,263 | 32,650 | -- |
Materials | 27,014,023 | 27,014,023 | -- | -- |
Real Estate | 7,580,777 | 7,580,777 | -- | -- |
Utilities | 3,418,255 | 3,418,255 | -- | -- |
Other | 1,465,914 | -- | -- | 1,465,914 |
Money Market Funds | 11,311,680 | 11,311,680 | -- | -- |
Total Investments in Securities: | $1,042,019,710 | $1,033,266,461 | $7,236,366 | $1,516,883 |
Net unrealized appreciation on unfunded commitments | $425,566 | $-- | $425,566 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $6,960,906) — See accompanying schedule: Unaffiliated issuers (cost $634,420,334) | $1,030,708,030 | |
Fidelity Central Funds (cost $11,311,680) | 11,311,680 | |
Total Investment in Securities (cost $645,732,014) | $1,042,019,710 | |
Cash | 35 | |
Restricted cash | 13,944 | |
Receivable for investments sold | 351,607 | |
Receivable for fund shares sold | 512,212 | |
Net unrealized appreciation on unfunded commitments | 425,566 | |
Dividends receivable | 2,207,241 | |
Distributions receivable from Fidelity Central Funds | 3,386 | |
Prepaid expenses | 187 | |
Other receivables | 5,701 | |
Total assets | 1,045,539,589 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $674,970 | |
Delayed delivery | 32,559 | |
Payable for fund shares redeemed | 581,146 | |
Accrued management fee | 314,963 | |
Distribution and service plan fees payable | 259,230 | |
Other affiliated payables | 169,495 | |
Other payables and accrued expenses | 34,099 | |
Collateral on securities loaned | 7,280,775 | |
Total liabilities | 9,347,237 | |
Net Assets | $1,036,192,352 | |
Net Assets consist of: | ||
Paid in capital | $613,492,094 | |
Total accumulated earnings (loss) | 422,700,258 | |
Net Assets | $1,036,192,352 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($479,897,849 ÷ 12,508,306 shares)(a) | $38.37 | |
Maximum offering price per share (100/94.25 of $38.37) | $40.71 | |
Class M: | ||
Net Asset Value and redemption price per share ($183,358,450 ÷ 4,791,877 shares)(a) | $38.26 | |
Maximum offering price per share (100/96.50 of $38.26) | $39.65 | |
Class C: | ||
Net Asset Value and offering price per share ($102,718,330 ÷ 3,059,149 shares)(a) | $33.58 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($230,466,484 ÷ 5,646,110 shares) | $40.82 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($39,751,239 ÷ 974,901 shares) | $40.77 |
(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, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $9,342,250 | |
Income from Fidelity Central Funds (including $28,981 from security lending) | 29,841 | |
Total income | 9,372,091 | |
Expenses | ||
Management fee | ||
Basic fee | $2,506,496 | |
Performance adjustment | (1,000,604) | |
Transfer agent fees | 816,614 | |
Distribution and service plan fees | 1,442,392 | |
Accounting fees | 159,455 | |
Custodian fees and expenses | 14,781 | |
Independent trustees' fees and expenses | 1,844 | |
Registration fees | 45,737 | |
Audit | 29,042 | |
Legal | 5,062 | |
Interest | 207 | |
Miscellaneous | 2,098 | |
Total expenses before reductions | 4,023,124 | |
Expense reductions | (11,422) | |
Total expenses after reductions | 4,011,702 | |
Net investment income (loss) | 5,360,389 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 24,982,877 | |
Foreign currency transactions | 618 | |
Total net realized gain (loss) | 24,983,495 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 190,456,919 | |
Unfunded commitments | 425,566 | |
Assets and liabilities in foreign currencies | 4,624 | |
Total change in net unrealized appreciation (depreciation) | 190,887,109 | |
Net gain (loss) | 215,870,604 | |
Net increase (decrease) in net assets resulting from operations | $221,230,993 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2021 (Unaudited) | Year ended November 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $5,360,389 | $14,807,231 |
Net realized gain (loss) | 24,983,495 | 43,902,005 |
Change in net unrealized appreciation (depreciation) | 190,887,109 | (30,690,082) |
Net increase (decrease) in net assets resulting from operations | 221,230,993 | 28,019,154 |
Distributions to shareholders | (46,442,467) | (84,162,150) |
Share transactions - net increase (decrease) | (6,980,768) | (122,671,067) |
Total increase (decrease) in net assets | 167,807,758 | (178,814,063) |
Net Assets | ||
Beginning of period | 868,384,594 | 1,047,198,657 |
End of period | $1,036,192,352 | $868,384,594 |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.98 | $32.80 | $33.76 | $34.98 | $30.27 | $28.12 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .21 | .50 | .51 | .40 | .39 | .34 |
Net realized and unrealized gain (loss) | 7.93 | 1.36 | 2.97 | .89 | 4.93 | 2.64 |
Total from investment operations | 8.14 | 1.86 | 3.48 | 1.29 | 5.32 | 2.98 |
Distributions from net investment income | (.57) | (.60) | (.45) | (.38) | (.33) | (.23) |
Distributions from net realized gain | (1.18) | (2.08) | (3.99) | (2.13) | (.27) | (.60) |
Total distributions | (1.75) | (2.68) | (4.44) | (2.51) | (.61)B | (.83) |
Net asset value, end of period | $38.37 | $31.98 | $32.80 | $33.76 | $34.98 | $30.27 |
Total ReturnC,D,E | 26.63% | 5.91% | 14.19% | 3.77% | 17.84% | 11.09% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .80%H | .75% | .91% | .92% | .91% | .92% |
Expenses net of fee waivers, if any | .80%H | .75% | .91% | .92% | .91% | .92% |
Expenses net of all reductions | .79%H | .75% | .90% | .92% | .90% | .91% |
Net investment income (loss) | 1.17%H | 1.76% | 1.71% | 1.17% | 1.22% | 1.25% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $479,898 | $389,143 | $423,325 | $401,495 | $461,949 | $455,182 |
Portfolio turnover rateI | 14%H | 22% | 28%J | 37% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.86 | $32.69 | $33.63 | $34.86 | $30.17 | $28.02 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .16 | .42 | .43 | .31 | .31 | .27 |
Net realized and unrealized gain (loss) | 7.91 | 1.35 | 2.98 | .89 | 4.91 | 2.64 |
Total from investment operations | 8.07 | 1.77 | 3.41 | 1.20 | 5.22 | 2.91 |
Distributions from net investment income | (.49) | (.52) | (.36) | (.29) | (.26) | (.16) |
Distributions from net realized gain | (1.18) | (2.08) | (3.99) | (2.13) | (.27) | (.60) |
Total distributions | (1.67) | (2.60) | (4.35) | (2.43)B | (.53) | (.76) |
Net asset value, end of period | $38.26 | $31.86 | $32.69 | $33.63 | $34.86 | $30.17 |
Total ReturnC,D,E | 26.44% | 5.62% | 13.93% | 3.50% | 17.54% | 10.81% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.05%H | 1.01% | 1.17% | 1.18% | 1.17% | 1.18% |
Expenses net of fee waivers, if any | 1.05%H | 1.01% | 1.16% | 1.18% | 1.17% | 1.18% |
Expenses net of all reductions | 1.05%H | 1.00% | 1.16% | 1.18% | 1.17% | 1.18% |
Net investment income (loss) | .92%H | 1.50% | 1.46% | .92% | .96% | .99% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $183,358 | $153,918 | $175,139 | $173,195 | $193,882 | $173,119 |
Portfolio turnover rateI | 14%H | 22% | 28%J | 37% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.08 | $29.09 | $30.44 | $31.78 | $27.58 | $25.70 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .06 | .25 | .25 | .13 | .14 | .12 |
Net realized and unrealized gain (loss) | 6.96 | 1.18 | 2.60 | .81 | 4.49 | 2.40 |
Total from investment operations | 7.02 | 1.43 | 2.85 | .94 | 4.63 | 2.52 |
Distributions from net investment income | (.34) | (.36) | (.21) | (.15) | (.15) | (.04) |
Distributions from net realized gain | (1.18) | (2.08) | (3.99) | (2.13) | (.27) | (.60) |
Total distributions | (1.52) | (2.44) | (4.20) | (2.28) | (.43)B | (.64) |
Net asset value, end of period | $33.58 | $28.08 | $29.09 | $30.44 | $31.78 | $27.58 |
Total ReturnC,D,E | 26.14% | 5.10% | 13.33% | 3.01% | 16.97% | 10.21% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.57%H | 1.53% | 1.67% | 1.69% | 1.67% | 1.67% |
Expenses net of fee waivers, if any | 1.57%H | 1.52% | 1.67% | 1.69% | 1.67% | 1.67% |
Expenses net of all reductions | 1.57%H | 1.52% | 1.67% | 1.68% | 1.66% | 1.67% |
Net investment income (loss) | .40%H | .98% | .95% | .41% | .46% | .49% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $102,718 | $88,926 | $119,072 | $158,775 | $194,553 | $169,524 |
Portfolio turnover rateI | 14%H | 22% | 28%J | 37% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $33.94 | $34.63 | $35.37 | $36.53 | $31.57 | $29.30 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .27 | .61 | .62 | .51 | .50 | .43 |
Net realized and unrealized gain (loss) | 8.44 | 1.44 | 3.17 | .93 | 5.14 | 2.74 |
Total from investment operations | 8.71 | 2.05 | 3.79 | 1.44 | 5.64 | 3.17 |
Distributions from net investment income | (.64) | (.66) | (.54) | (.47) | (.40) | (.30) |
Distributions from net realized gain | (1.18) | (2.08) | (3.99) | (2.13) | (.27) | (.60) |
Total distributions | (1.83)B | (2.74) | (4.53) | (2.60) | (.68)B | (.90) |
Net asset value, end of period | $40.82 | $33.94 | $34.63 | $35.37 | $36.53 | $31.57 |
Total ReturnC,D | 26.81% | 6.17% | 14.54% | 4.05% | 18.16% | 11.34% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .53%G | .48% | .64% | .66% | .64% | .65% |
Expenses net of fee waivers, if any | .53%G | .48% | .64% | .66% | .64% | .65% |
Expenses net of all reductions | .53%G | .48% | .64% | .66% | .64% | .65% |
Net investment income (loss) | 1.44%G | 2.03% | 1.98% | 1.44% | 1.48% | 1.51% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $230,466 | $206,090 | $301,067 | $459,962 | $520,465 | $433,079 |
Portfolio turnover rateH | 14%G | 22% | 28%I | 37% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 Large Cap Fund Class Z
Six months ended (Unaudited) May 31, | Years endedNovember 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.93 | $34.64 | $35.41 | $36.57 | $32.04 |
Income from Investment Operations | |||||
Net investment income (loss)B | .29 | .64 | .66 | .56 | .51 |
Net realized and unrealized gain (loss) | 8.42 | 1.45 | 3.16 | .93 | 4.02 |
Total from investment operations | 8.71 | 2.09 | 3.82 | 1.49 | 4.53 |
Distributions from net investment income | (.69) | (.72) | (.60) | (.52) | – |
Distributions from net realized gain | (1.18) | (2.08) | (3.99) | (2.13) | – |
Total distributions | (1.87) | (2.80) | (4.59) | (2.65) | – |
Net asset value, end of period | $40.77 | $33.93 | $34.64 | $35.41 | $36.57 |
Total ReturnC,D | 26.86% | 6.30% | 14.67% | 4.19% | 14.14% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .41%G | .36% | .51% | .53% | .51%G |
Expenses net of fee waivers, if any | .41%G | .36% | .51% | .53% | .51%G |
Expenses net of all reductions | .41%G | .36% | .51% | .53% | .51%G |
Net investment income (loss) | 1.56%G | 2.15% | 2.11% | 1.57% | 1.80%G |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $39,751 | $30,308 | $28,596 | $17,711 | $13,966 |
Portfolio turnover rateH | 14%G | 22% | 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, 2021
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 June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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.
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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, 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 | $436,433,562 |
Gross unrealized depreciation | (43,955,772) |
Net unrealized appreciation (depreciation) | $392,477,790 |
Tax cost | $649,541,920 |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
Consolidated Subsidiary. The Funds included in the table below hold certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, investments in Subsidiaries were as follows:
$ Amount | % of Net Assets | |
Fidelity Advisor Large Cap Fund | 1,479,858 | .14 |
The financial statements have been consolidated to include the Subsidiary accounts where applicable. Accordingly, all inter-company transactions and balances have been eliminated.
At period end, any estimated tax liability for these investments is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations. The tax liability incurred may differ materially depending on conditions when these investments are disposed. Any cash held by a Subsidiary is restricted as to its use and is presented as "Restricted cash" in the Statement of Assets and Liabilities, if applicable.
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 | 65,739,551 | 111,989,897 |
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 .32% 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% | $543,513 | $9,765 |
Class M | .25% | .25% | 420,872 | 4,105 |
Class C | .75% | .25% | 478,007 | 33,040 |
$1,442,392 | $46,910 |
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 | $65,118 |
Class M | 3,763 |
Class C(a) | 3,067 |
$71,948 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $384,061 | .18 |
Class M | 151,157 | .18 |
Class C | 94,882 | .20 |
Class I | 179,244 | .16 |
Class Z | 7,270 | .04 |
$816,614 |
(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 | $1,783 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 Large Cap Fund | Borrower | $2,180,571 | .32% | $134 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Large Cap Fund | 4,902,730 | 8,238,838 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Advisor Large Cap Fund | $890 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Large Cap Fund | $3,036 | $1,789 | $43,560 |
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Advisor Large Cap Fund | $323,929 | .58% | $73 |
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 expenses. This amount totaled $10,082 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 $1,340.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Large Cap Fund | ||
Distributions to shareholders | ||
Class A | $21,133,024 | $34,539,981 |
Class M | 7,961,413 | 13,794,564 |
Class C | 4,686,944 | 9,862,974 |
Class I | 11,009,981 | 23,630,124 |
Class Z | 1,651,105 | 2,334,507 |
Total | $46,442,467 | $84,162,150 |
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, 2021 | Year ended November 30, 2020 | Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Fidelity Advisor Large Cap Fund | ||||
Class A | ||||
Shares sold | 1,035,948 | 2,030,020 | $36,466,051 | $56,410,173 |
Reinvestment of distributions | 634,563 | 1,075,735 | 20,064,882 | 33,444,611 |
Shares redeemed | (1,330,671) | (3,842,229) | (45,822,982) | (106,888,446) |
Net increase (decrease) | 339,840 | (736,474) | $10,707,951 | $(17,033,662) |
Class M | ||||
Shares sold | 245,248 | 603,292 | $8,678,832 | $16,514,633 |
Reinvestment of distributions | 249,228 | 437,667 | 7,868,112 | 13,589,553 |
Shares redeemed | (533,824) | (1,567,961) | (18,176,777) | (43,675,826) |
Net increase (decrease) | (39,348) | (527,002) | $(1,629,833) | $(13,571,640) |
Class C | ||||
Shares sold | 220,229 | 340,889 | $6,779,279 | $8,352,577 |
Reinvestment of distributions | 165,245 | 326,534 | 4,587,186 | 8,979,690 |
Shares redeemed | (493,264) | (1,593,364) | (14,871,246) | (38,927,057) |
Net increase (decrease) | (107,790) | (925,941) | $(3,504,781) | $(21,594,790) |
Class I | ||||
Shares sold | 888,671 | 1,435,759 | $33,285,048 | $43,567,070 |
Reinvestment of distributions | 280,570 | 649,329 | 9,427,141 | 21,375,913 |
Shares redeemed | (1,594,673) | (4,708,120) | (58,444,636) | (137,486,804) |
Net increase (decrease) | (425,432) | (2,623,032) | $(15,732,447) | $(72,543,821) |
Class Z | ||||
Shares sold | 132,182 | 286,711 | $5,090,613 | $8,452,674 |
Reinvestment of distributions | 45,813 | 65,037 | 1,537,037 | 2,137,756 |
Shares redeemed | (96,277) | (284,136) | (3,449,308) | (8,517,584) |
Net increase (decrease) | 81,718 | 67,612 | $3,178,342 | $2,072,846 |
12. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Large Cap Fund | ||||
Class A | .80% | |||
Actual | $1,000.00 | $1,266.30 | $4.52 | |
Hypothetical-C | $1,000.00 | $1,020.94 | $4.03 | |
Class M | 1.05% | |||
Actual | $1,000.00 | $1,264.40 | $5.93 | |
Hypothetical-C | $1,000.00 | $1,019.70 | $5.29 | |
Class C | 1.57% | |||
Actual | $1,000.00 | $1,261.40 | $8.85 | |
Hypothetical-C | $1,000.00 | $1,017.10 | $7.90 | |
Class I | .53% | |||
Actual | $1,000.00 | $1,268.10 | $3.00 | |
Hypothetical-C | $1,000.00 | $1,022.29 | $2.67 | |
Class Z | .41% | |||
Actual | $1,000.00 | $1,268.60 | $2.32 | |
Hypothetical-C | $1,000.00 | $1,022.89 | $2.07 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, 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/0001379491-21-003389/img711097786.jpg)
Fidelity Advisor Large Cap Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711098041.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, 2019 through November 30, 2020. 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-0721
1.704742.123
Fidelity® Real Estate High Income Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call (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. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021 | ||
AAA,AA,A | 2.4% | |
BBB | 9.7% | |
BB | 12.9% | |
B | 12.5% | |
CCC,CC,C | 3.4% | |
D | 0.5% | |
Not Rated | 50.1% | |
Equities | 3.4% | |
Short-Term Investments and Net Other Assets | 5.1% |
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, 2021 | ||
CMOs and Other Mortgage Related Securities | 79.9% | |
Asset-Backed Securities | 4.8% | |
Nonconvertible Bonds | 2.7% | |
Convertible Bonds, Preferred Stocks | 3.4% | |
Common Stocks | 0.8% | |
Bank Loan Obligations | 3.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.1% |
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 3.5% | |||
Principal Amount | Value | ||
Convertible Bonds - 0.8% | |||
Diversified Financial Services - 0.5% | |||
Colony Capital Operating Co. LLC 5.75% 7/15/25 (a) | $1,540,000 | $4,772,152 | |
Homebuilders/Real Estate - 0.3% | |||
Colony Capital, Inc. 5% 4/15/23 | 503,000 | 516,937 | |
PennyMac Corp. 5.5% 11/1/24 | 1,699,000 | 1,693,691 | |
2,210,628 | |||
TOTAL CONVERTIBLE BONDS | 6,982,780 | ||
Nonconvertible Bonds - 2.7% | |||
Gaming - 0.2% | |||
Caesars Entertainment, Inc. 6.25% 7/1/25 (a) | 1,690,000 | 1,781,125 | |
Healthcare - 0.3% | |||
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 1,433,000 | 1,468,825 | |
Sabra Health Care LP 3.9% 10/15/29 | 795,000 | 826,299 | |
2,295,124 | |||
Homebuilders/Real Estate - 1.5% | |||
Adams Homes, Inc. 7.5% 2/15/25 (a) | 1,215,000 | 1,275,750 | |
DTZ U.S. Borrower LLC 6.75% 5/15/28 (a) | 685,000 | 738,088 | |
Global Net Lease, Inc. / Global Net Lease Operating Partnership LP 3.75% 12/15/27 (a) | 2,290,000 | 2,216,357 | |
iStar Financial, Inc.: | |||
4.25% 8/1/25 | 3,630,000 | 3,677,662 | |
4.75% 10/1/24 | 2,805,000 | 2,931,926 | |
MPT Operating Partnership LP/MPT Finance Corp. 5.25% 8/1/26 | 333,000 | 342,574 | |
Realogy Group LLC/Realogy Co-Issuer Corp.: | |||
5.75% 1/15/29 (a) | 385,000 | 402,236 | |
7.625% 6/15/25 (a) | 310,000 | 335,963 | |
Service Properties Trust 7.5% 9/15/25 | 1,095,000 | 1,224,018 | |
13,144,574 | |||
Hotels - 0.6% | |||
Marriott Ownership Resorts, Inc. 4.75% 1/15/28 | 3,250,000 | 3,298,750 | |
Times Square Hotel Trust 8.528% 8/1/26 (a) | 2,042,057 | 2,227,609 | |
5,526,359 | |||
Telecommunications - 0.1% | |||
Uniti Group, Inc. 7.875% 2/15/25 (a) | 1,195,000 | 1,280,144 | |
TOTAL NONCONVERTIBLE BONDS | 24,027,326 | ||
TOTAL CORPORATE BONDS | |||
(Cost $26,987,031) | 31,010,106 | ||
Asset-Backed Securities - 4.8% | |||
American Homes 4 Rent: | |||
Series 2014-SFR3 Class E, 6.418% 12/17/36 (a) | 1,553,000 | 1,710,012 | |
Series 2015-SFR1 Class E, 5.639% 4/17/52 (a) | 3,096,223 | 3,409,730 | |
Series 2015-SFR2: | |||
Class E, 6.07% 10/17/52 (a) | 3,728,000 | 4,183,635 | |
Class XS, 0% 10/17/52 (a)(b)(c)(d) | 2,589,826 | 26 | |
Argent Securities, Inc. pass-thru certificates Series 2004-W9 Class M7, 1 month U.S. LIBOR + 4.200% 4.2089% 6/26/34 (a)(b)(e) | 52,319 | 179,286 | |
Capital Trust RE CDO Ltd. Series 2005-1A: | |||
Class D, 1 month U.S. LIBOR + 1.500% 3.3464% 3/20/50 (a)(b)(d)(e) | 750,000 | 75 | |
Class E, 1 month U.S. LIBOR + 2.100% 3.9464% 3/20/50 (a)(b)(d)(e) | 2,670,000 | 267 | |
COMM Mortgage Trust Series 2021-LBA Class G, 1 month U.S. LIBOR + 2.650% 2.751% 3/15/38 (a)(b)(e) | 4,150,000 | 4,159,344 | |
Crest Ltd. Series 2004-1A Class H1, 3 month U.S. LIBOR + 3.690% 3.9123% 1/28/40 (a)(b)(d)(e) | 2,931,686 | 293 | |
DataBank Issuer, LLC Series 2021-1A: | |||
Class B, 2.65% 2/27/51 (a) | 903,000 | 912,172 | |
Class C, 4.43% 2/27/51 (a) | 1,500,000 | 1,530,828 | |
Home Partners of America Trust: | |||
Series 2017-1: | |||
Class E, 1 month U.S. LIBOR + 2.650% 2.751% 7/17/34 (a)(b)(e) | 772,000 | 773,577 | |
Class F, 1 month U.S. LIBOR + 3.530% 3.64% 7/17/34 (a)(b)(e) | 1,912,000 | 1,911,559 | |
Series 2018-1 Class F, 1 month U.S. LIBOR + 2.350% 2.451% 7/17/37 (a)(b)(e) | 2,045,000 | 2,040,154 | |
Series 2019-2 Class F, 3.866% 10/19/39 (a) | 2,137,053 | 2,119,316 | |
Merit Securities Corp. Series 13 Class M1, 7.88% 12/28/33 (b) | 852,470 | 885,312 | |
Progress Residential Trust: | |||
Series 2018-SFR2 Class F, 4.953% 8/17/35 (a) | 567,000 | 570,811 | |
Series 2019-SFR3 Class G, 4.116% 9/17/36 (a) | 998,000 | 1,019,947 | |
Series 2019-SFR4 Class F, 3.684% 10/17/36 (a) | 4,527,000 | 4,612,285 | |
Series 2020-SFR1: | |||
Class G, 4.028% 4/17/37 (a) | 1,638,000 | 1,654,783 | |
Class H, 5.268% 4/17/37 (a) | 462,000 | 470,753 | |
Series 2020-SFR3 Class H, 6.234% 10/17/27 (a) | 966,000 | 977,912 | |
Series 2021-SFR2 Class H, 4.998% 4/19/38 (a) | 1,575,000 | 1,577,649 | |
Series 2021-SFR3 Class G, 4.254% 5/17/26 (a) | 1,050,000 | 1,060,580 | |
Taberna Preferred Funding III Ltd. Series 2005-3A: | |||
Class D, 3 month U.S. LIBOR + 2.650% 2.8264% 2/5/36 (a)(b)(d)(e) | 2,884,129 | 216 | |
Class E, 3 month U.S. LIBOR + 4.500% 4.6764% 2/5/36 (a)(b)(d)(e) | 1,096,039 | 82 | |
Taberna Preferred Funding VI Ltd. Series 2006-6A Class F1, 3 month U.S. LIBOR + 4.500% 4.6764% 12/5/36 (a)(b)(d)(e) | 5,400,516 | 405 | |
Tricon American Homes: | |||
Series 2017-SFR2 Class F, 5.104% 1/17/36 (a) | 664,000 | 687,961 | |
Series 2018-SFR1 Class F, 4.96% 5/17/37 (a) | 1,440,000 | 1,516,952 | |
Series 2019-SFR1 Class F, 3.745% 3/17/38 (a) | 2,121,000 | 2,171,377 | |
Series 2020-SFR1 Class F, 4.882% 7/17/38 (a) | 574,000 | 613,336 | |
VB-S1 Issuer LLC Series 2018-1A Class F, 5.25% 2/15/48 (a) | 2,142,000 | 2,218,927 | |
TOTAL ASSET-BACKED SECURITIES | |||
(Cost $50,268,134) | 42,969,562 | ||
Collateralized Mortgage Obligations - 0.0% | |||
Private Sponsor - 0.0% | |||
Countrywide Home Loans, Inc. Series 2003-R1 Class 2B4, 3.3614% 2/25/43 (a)(b)(d) | 29,903 | 4,630 | |
U.S. Government Agency - 0.0% | |||
Fannie Mae REMIC Trust: | |||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.4844% 2/25/42 (a)(b) | 30,556 | 8,373 | |
Series 2002-W6 subordinate REMIC pass thru certificates, Class 3B4, 3.6998% 1/25/42 (a)(b)(d) | 22,853 | 2,000 | |
Series 2003-W10 subordinate REMIC pass thru certificates: | |||
Class 2B4, 3.4192% 6/25/43 (b)(f) | 112,655 | 32,050 | |
Class 2B5, 3.4192% 6/25/43 (b)(d)(f) | 6,634 | 142 | |
TOTAL U.S. GOVERNMENT AGENCY | 42,565 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
(Cost $56,909) | 47,195 | ||
Commercial Mortgage Securities - 79.9% | |||
ALEN Mortgage Trust floater Series 2021-ACEN Class F, 1 month U.S. LIBOR + 5.000% 5.101% 4/15/34 (a)(b)(e) | 2,188,000 | 2,187,999 | |
Ashford Hospitality Trust floater Series 2018-ASHF Class E, 1 month U.S. LIBOR + 3.100% 3.201% 4/15/35 (a)(b)(e) | 1,456,000 | 1,383,822 | |
Atrium Hotel Portfolio Trust floater Series 2018-ATRM Class D, 1 month U.S. LIBOR + 2.300% 2.401% 6/15/35 (a)(b)(e) | 663,000 | 648,892 | |
BAMLL Commercial Mortgage Securities Trust: | |||
floater: | |||
Series 2019-AHT Class C, 1 month U.S. LIBOR + 2.000% 2.101% 3/15/34 (a)(b)(e) | 910,000 | 903,153 | |
Series 2019-RLJ Class D, 1 month U.S. LIBOR + 1.950% 2.051% 4/15/36 (a)(b)(e) | 4,028,000 | 3,899,226 | |
Series 2015-200P Class F, 3.5958% 4/14/33 (a)(b) | 2,588,000 | 2,649,157 | |
BANK: | |||
Series 2017-BNK4 Class D, 3.357% 5/15/50 (a) | 4,416,000 | 4,196,866 | |
Series 2017-BNK6 Class D, 3.1% 7/15/60 (a) | 2,593,000 | 2,369,495 | |
Series 2017-BNK8: | |||
Class D, 2.6% 11/15/50 (a) | 4,653,000 | 4,283,961 | |
Class E, 2.8% 11/15/50 (a) | 2,625,000 | 1,863,694 | |
Series 2018-BN12 Class D, 3% 5/15/61 (a) | 2,082,000 | 1,820,902 | |
Series 2019-BN18: | |||
Class D, 3% 5/15/62 (a) | 4,284,000 | 3,983,832 | |
Class E, 3% 5/15/62 (a) | 1,302,000 | 1,176,154 | |
Series 2019-BN19 Class D, 3% 8/15/61 (a) | 3,753,000 | 3,517,835 | |
Series 2019-BN21 Class E, 2.5% 10/17/52 (a) | 2,210,000 | 1,932,182 | |
Series 2019-BN22 Class D, 2.5% 11/15/62 (a) | 2,465,000 | 2,257,781 | |
Series 2020-BN26 Class D, 2.5% 3/15/63 (a) | 1,269,000 | 1,126,537 | |
Series 2020-BN27 Class D, 2.5% 4/15/63 (a) | 921,000 | 821,946 | |
Series 2020-BN28 Class E, 2.5% 3/15/63 (a) | 903,000 | 735,794 | |
Series 2020-BN29 Class E, 2.5% 11/15/53 (a) | 1,064,000 | 914,207 | |
Series 2020-BN30: | |||
Class E, 2.5% 12/15/53 (a) | 735,000 | 631,525 | |
Class MCDG, 2.9182% 12/15/53 (b) | 2,949,000 | 2,507,718 | |
Bank of America Commercial Mortgage Securities Trust Series 2017-BNK3 Class D, 3.25% 2/15/50 (a) | 2,201,000 | 2,086,777 | |
Barclays Commercial Mortgage Securities LLC Series 2019-C5: | |||
Class D, 2.5% 11/15/52 (a) | 726,000 | 643,514 | |
Class E, 2.5% 11/15/52 (a) | 2,545,000 | 1,961,729 | |
BBCMS Mortgage Trust: | |||
sequential payer Series 2020-C8 Class E, 2.25% 10/15/53 (a) | 3,013,000 | 2,387,309 | |
Series 2016-ETC Class D, 3.6089% 8/14/36 (a)(b) | 1,749,000 | 1,657,984 | |
Series 2020-C6 Class E, 2.4% 2/15/53 (a) | 1,512,000 | 1,162,468 | |
Series 2020-C7 Class D, 3.6048% 4/15/53 (a)(b) | 840,000 | 820,816 | |
Benchmark Mortgage Trust: | |||
sequential payer: | |||
Series 2019-B14: | |||
Class 225D, 3.2943% 12/15/62 (a)(b) | 1,680,000 | 1,614,032 | |
Class 225E, 3.2943% 12/15/62 (a)(b) | 1,132,000 | 1,021,378 | |
Series 2020-B20 Class E, 2% 10/15/53 (a) | 2,100,000 | 1,687,623 | |
Series 2018-B7: | |||
Class D, 3% 5/15/53 (a)(b) | 833,000 | 736,677 | |
Class E, 3% 5/15/53 (a)(b) | 833,000 | 662,508 | |
Series 2019-B12 Class D, 3% 8/15/52 (a) | 1,562,000 | 1,483,866 | |
Series 2020-B18: | |||
Class AGNG, 4.3885% 7/15/53 (a)(b) | 4,074,000 | 3,960,320 | |
Class D, 2.25% 7/15/53 (a) | 1,500,000 | 1,321,766 | |
Series 2020-B21: | |||
Class D, 2% 12/17/53 (a) | 1,638,000 | 1,413,415 | |
Class E, 2% 12/17/53 (a) | 1,533,000 | 1,176,037 | |
Series 2020-B22 Class E, 2% 1/15/54 (a) | 1,826,000 | 1,414,823 | |
Series 2020-IG3 Class 825E, 3.0763% 9/15/48 (a)(b) | 3,049,000 | 2,488,318 | |
Series 2021-B25: | |||
Class 300D, 2.9942% 4/15/54 (a)(b) | 6,055,000 | 5,450,236 | |
Class 300E, 2.9942% 4/15/54 (a) | 1,113,000 | 964,824 | |
BFLD Trust floater Series 2020-EYP Class G, 1 month U.S. LIBOR + 4.850% 4.951% 10/15/35 (a)(b)(e) | 2,019,000 | 2,012,622 | |
BHP Trust floater Series 2019-BXHP Class F, 1 month U.S. LIBOR + 2.930% 3.039% 8/15/36 (a)(b)(e) | 1,165,500 | 1,164,565 | |
BX Commercial Mortgage Trust: | |||
floater: | |||
Series 2018-BIOA: | |||
Class E, 1 month U.S. LIBOR + 1.950% 2.0521% 3/15/37 (a)(b)(e) | 3,260,000 | 3,263,843 | |
Class F, 1 month U.S. LIBOR + 2.470% 2.5721% 3/15/37 (a)(b)(e) | 1,801,000 | 1,804,768 | |
Series 2019-CALM Class E, 1 month U.S. LIBOR + 2.000% 2.101% 11/15/32 (a)(b)(e) | 819,000 | 818,743 | |
Series 2020-BXLP Class G, 1 month U.S. LIBOR + 2.500% 2.601% 12/15/36 (a)(b)(e) | 6,504,063 | 6,500,144 | |
Series 2020-FOX Class G, 1 month U.S. LIBOR + 4.750% 4.851% 11/15/32 (a)(b)(e) | 982,411 | 989,207 | |
Series 2021-FOX Class F, 1 month U.S. LIBOR + 4.250% 4.351% 11/15/32 (a)(b)(e) | 1,320,361 | 1,328,569 | |
Series 2021-MC Class G, 1 month U.S. LIBOR + 3.080% 3.1968% 4/15/34 (a)(b)(e) | 1,572,000 | 1,515,258 | |
Series 2021-VINO: | |||
Class F, 1 month U.S. LIBOR + 2.800% 2.9123% 5/15/38 (a)(b)(e) | 2,627,000 | 2,627,002 | |
Class G, 1 month U.S. LIBOR + 3.950% 4.0623% 5/15/38 (a)(b)(e) | 4,568,000 | 4,568,001 | |
Series 2020-VIVA: | |||
Class D, 3.5488% 3/11/44 (a)(b) | 9,422,000 | 9,642,375 | |
Class E, 3.5488% 3/11/44 (a)(b) | 5,938,000 | 5,925,362 | |
BX Trust: | |||
floater: | |||
Series 2017-APPL Class F, 1 month U.S. LIBOR + 4.250% 4.351% 7/15/34 (a)(b)(e) | 2,444,600 | 2,454,881 | |
Series 2018-IND: | |||
Class G, 1 month U.S. LIBOR + 2.050% 2.151% 11/15/35 (a)(b)(e) | 683,900 | 684,125 | |
Class H, 1 month U.S. LIBOR + 3.000% 3.101% 11/15/35 (a)(b)(e) | 1,271,900 | 1,274,334 | |
Series 2019-ATL Class E, 1 month U.S. LIBOR + 2.230% 2.3376% 10/15/36 (a)(b)(e) | 1,974,000 | 1,936,884 | |
Series 2019-IMC Class G, 1 month U.S. LIBOR + 3.600% 3.701% 4/15/34 (a)(b)(e) | 3,255,000 | 3,165,906 | |
Series 2019-XL: | |||
Class F, 1 month U.S. LIBOR + 2.000% 2.101% 10/15/36 (a)(b)(e) | 1,289,984 | 1,290,833 | |
Class J, 1 month U.S. LIBOR + 2.650% 2.751% 10/15/36 (a)(b)(e) | 18,165,636 | 18,183,370 | |
Series 2021-LBA: | |||
Class FJV, 1 month U.S. LIBOR + 2.400% 2.501% 2/15/36 (a)(b)(e) | 1,225,000 | 1,224,989 | |
Class FV, 1 month U.S. LIBOR + 2.400% 2.501% 2/15/36 (a)(b)(e) | 711,000 | 710,994 | |
Series 2021-MFM1: | |||
Class F, 1 month U.S. LIBOR + 3.000% 3.1009% 1/15/34 (a)(b)(e) | 834,000 | 838,178 | |
Class G, 1 month U.S. LIBOR + 3.900% 4.0009% 1/15/34 (a)(b)(e) | 417,000 | 416,750 | |
Series 2019-OC11: | |||
Class C, 3.856% 12/9/41 (a) | 2,405,000 | 2,593,312 | |
Class E, 4.0755% 12/9/41 (a)(b) | 7,251,000 | 7,565,410 | |
CALI Mortgage Trust Series 2019-101C Class F, 4.3244% 3/10/39 (a)(b) | 3,093,000 | 2,943,006 | |
CAMB Commercial Mortgage Trust floater Series 2019-LIFE: | |||
Class F, 1 month U.S. LIBOR + 2.550% 2.651% 12/15/37 (a)(b)(e) | 321,000 | 321,188 | |
Class G, 1 month U.S. LIBOR + 3.250% 3.351% 12/15/37 (a)(b)(e) | 10,526,000 | 10,532,166 | |
CD Mortgage Trust Series 2017-CD3 Class D, 3.25% 2/10/50 (a) | 4,073,000 | 3,404,364 | |
Citigroup Commercial Mortgage Trust: | |||
Series 2013-375P Class E, 3.5176% 5/10/35 (a)(b) | 4,069,000 | 4,060,027 | |
Series 2013-GC15 Class D, 5.18% 9/10/46 (a)(b) | 7,323,000 | 7,425,560 | |
Series 2016-C3 Class D, 3% 11/15/49 (a) | 4,412,000 | 3,529,166 | |
Series 2019-GC41: | |||
Class D, 3% 8/10/56 (a) | 2,273,000 | 2,149,154 | |
Class E, 3% 8/10/56 (a) | 1,848,000 | 1,578,368 | |
Series 2019-GC43 Class E, 3% 11/10/52 (a) | 2,772,000 | 2,476,891 | |
Series 2020-420K Class E, 3.3118% 11/10/42 (a)(b) | 2,081,000 | 1,967,870 | |
Series 2020-GC46: | |||
Class D, 2.6% 2/15/53 (a) | 2,756,000 | 2,348,664 | |
Class E, 2.6% 2/15/53 (a) | 329,000 | 265,415 | |
COMM Mortgage Trust: | |||
floater Series 2018-HCLV Class G, 1 month U.S. LIBOR + 5.050% 5.1573% 9/15/33 (a)(b)(e) | 1,487,000 | 1,301,879 | |
sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (a)(d) | 2,840,000 | 1,956,980 | |
Series 2012-CR1: | |||
Class D, 5.3541% 5/15/45 (a)(b) | 7,226,000 | 5,920,752 | |
Class G, 2.462% 5/15/45 (a)(d) | 2,322,000 | 609,564 | |
Series 2013-CR10 Class D, 4.9232% 8/10/46 (a)(b) | 3,673,000 | 3,744,849 | |
Series 2013-LC6 Class D, 4.3095% 1/10/46 (a)(b) | 5,644,000 | 5,579,989 | |
Series 2014-CR15 Class D, 4.7183% 2/10/47 (a)(b) | 1,060,000 | 1,109,303 | |
Series 2014-CR17 Class E, 4.8482% 5/10/47 (a)(b)(d) | 589,000 | 426,485 | |
Series 2014-LC17 Class C, 4.5592% 10/10/47 (b) | 752,000 | 790,693 | |
Series 2014-UBS2 Class D, 5.004% 3/10/47 (a)(b) | 3,454,000 | 3,472,328 | |
Series 2015-3BP Class F, 3.2384% 2/10/35 (a)(b) | 4,405,000 | 4,252,126 | |
Series 2017-CD4 Class D, 3.3% 5/10/50 (a) | 3,234,000 | 3,064,148 | |
Series 2019-CD4 Class C, 4.3497% 5/10/50 (b) | 3,977,000 | 4,320,994 | |
COMM Trust Series 2017-COR2 Class D, 3% 9/10/50 (a) | 1,146,000 | 1,083,968 | |
Commercial Mortgage Trust Series 2016-CD2 Class D, 2.7724% 11/10/49 (b) | 1,680,000 | 1,358,854 | |
Commercial Mortgage Trust pass-thru certificates: | |||
Series 2012-CR2: | |||
Class D, 4.8307% 8/15/45 (a)(b) | 789,000 | 745,310 | |
Class E, 4.8307% 8/15/45 (a)(b) | 5,385,400 | 4,327,428 | |
Class F, 4.25% 8/15/45 (a) | 7,162,000 | 4,670,434 | |
Series 2014-CR2 Class G, 4.25% 8/15/45 (a)(d) | 1,556,000 | 616,585 | |
Core Industrial Trust floater Series 2019-CORE Class E, 1 month U.S. LIBOR + 1.900% 2.001% 12/15/31 (a)(b)(e) | 2,385,600 | 2,364,497 | |
CPT Mortgage Trust sequential payer Series 2019-CPT Class F, 2.9968% 11/13/39 (a)(b) | 2,772,000 | 2,609,650 | |
Credit Suisse First Boston Mortgage Securities Corp. Series 1998-C1 Class H, 6% 5/17/40 (a) | 473,688 | 236,797 | |
Credit Suisse Mortgage Trust: | |||
floater: | |||
Series 2019-ICE4 Class F, 1 month U.S. LIBOR + 2.650% 2.751% 5/15/36 (a)(b)(e) | 1,512,000 | 1,515,319 | |
Series 2020-FACT Class F, 1 month U.S. LIBOR + 6.150% 6.258% 10/15/37 (a)(b)(e) | 2,100,000 | 2,136,972 | |
Series 2019-UVIL Class E, 3.2833% 12/15/41 (a)(b) | 2,289,000 | 1,966,894 | |
CRSNT Trust floater Series 2021-MOON: | |||
Class F, 1 month U.S. LIBOR + 3.500% 3.61% 4/15/36 (a)(b)(e) | 840,000 | 839,998 | |
Class G, 1 month U.S. LIBOR + 4.500% 4.61% 4/15/36 (a)(b)(e) | 493,000 | 492,998 | |
CSAIL Commercial Mortgage Trust: | |||
Series 2017-C8 Class D, 4.4598% 6/15/50 (a)(b) | 3,902,000 | 3,307,930 | |
Series 2017-CX10 Class UESD, 4.2366% 10/15/32 (a)(b) | 1,890,000 | 1,841,314 | |
Series 2017-CX9 Class D, 4.1468% 9/15/50 (a)(b) | 1,615,000 | 1,305,969 | |
Series 2019-C15 Class C, 4.9799% 3/15/52 (b) | 3,132,000 | 3,494,344 | |
CSMC Trust: | |||
floater Series 2017-CHOP Class F, 1 month U.S. LIBOR + 4.350% 4.451% 7/15/32 (a)(b)(e) | 2,686,000 | 2,347,431 | |
Series 2017-MOON Class E, 3.1965% 7/10/34 (a)(b) | 1,132,000 | 1,111,300 | |
DBCCRE Mortgage Trust Series 2014-ARCP: | |||
Class D, 4.9345% 1/10/34 (a)(b) | 833,000 | 864,077 | |
Class E, 4.9345% 1/10/34 (a)(b) | 4,264,000 | 4,327,937 | |
DBGS Mortgage Trust: | |||
floater Series 2018-BIOD Class G, 1 month U.S. LIBOR + 2.500% 2.6009% 5/15/35 (a)(b)(e) | 4,083,811 | 4,074,737 | |
Series 2018-C1: | |||
Class C, 4.6349% 10/15/51 (b) | 777,000 | 837,912 | |
Class D, 2.8849% 10/15/51 (a)(b) | 3,459,000 | 3,211,027 | |
Series 2019-1735 Class F, 4.1946% 4/10/37 (a)(b) | 1,000,000 | 833,293 | |
DBUBS Mortgage Trust Series 2011-LC1A: | |||
Class F, 5.8943% 11/10/46 (a)(b) | 6,451,249 | 6,430,861 | |
Class G, 4.652% 11/10/46 (a) | 7,812,000 | 7,592,332 | |
DC Office Trust Series 2019-MTC Class E, 3.072% 9/15/45 (a)(b) | 1,029,000 | 980,109 | |
Freddie Mac Series KAIV Class X2, 3.5885% 6/25/41 (b)(c) | 2,316,000 | 679 | |
GPMT, Ltd. / GPMT LLC floater Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.950% 3.0465% 11/21/35 (a)(b)(e) | 1,227,000 | 1,220,961 | |
GS Mortgage Securities Corp. II Series 2010-C1 Class B, 5.148% 8/10/43 (a) | 1,311,000 | 1,318,947 | |
GS Mortgage Securities Corp. Trust floater: | |||
Series 2019-70P Class F, 1 month U.S. LIBOR + 2.650% 2.751% 10/15/36 (a)(b)(e) | 2,550,000 | 2,371,829 | |
Series 2019-SOHO Class E, 1 month U.S. LIBOR + 1.870% 1.9756% 6/15/36 (a)(b)(e) | 4,894,000 | 4,662,479 | |
GS Mortgage Securities Trust: | |||
Series 2011-GC5: | |||
Class D, 5.2975% 8/10/44 (a)(b) | 1,929,752 | 1,176,616 | |
Class E, 5.2975% 8/10/44 (a)(b)(d) | 2,432,000 | 1,356,676 | |
Class F, 4.5% 8/10/44 (a)(d) | 4,308,000 | 387,720 | |
Series 2012-GC6: | |||
Class D, 5.6581% 1/10/45 (a)(b) | 3,753,000 | 3,552,977 | |
Class E, 5% 1/10/45 (a)(b) | 2,984,000 | 2,355,706 | |
Series 2012-GC6I Class F, 5% 1/10/45 (b)(d) | 1,508,000 | 653,490 | |
Series 2012-GCJ7: | |||
Class D, 5.6058% 5/10/45 (a)(b) | 2,808,500 | 2,614,045 | |
Class F, 5% 5/10/45 (a)(d) | 3,433,000 | 686,600 | |
Series 2012-GCJ9 Class D, 4.7379% 11/10/45 (a)(b) | 4,238,000 | 4,162,370 | |
Series 2013-GC12 Class D, 4.4516% 6/10/46 (a)(b) | 869,000 | 801,188 | |
Series 2013-GC13 Class D, 4.084% 7/10/46 (a)(b)(d) | 5,470,000 | 2,808,124 | |
Series 2013-GC16: | |||
Class D, 5.3106% 11/10/46 (a)(b) | 3,923,000 | 3,938,881 | |
Class F, 3.5% 11/10/46 (a) | 2,530,000 | 1,768,484 | |
Series 2016-GS2 Class D, 2.753% 5/10/49 (a) | 2,058,050 | 1,934,210 | |
Series 2017-GS6 Class D, 3.243% 5/10/50 (a) | 4,676,000 | 4,552,231 | |
Series 2019-GC38 Class D, 3% 2/10/52 (a) | 1,162,000 | 1,095,455 | |
Series 2019-GC39 Class D, 3% 5/10/52 (a) | 2,830,000 | 2,629,882 | |
Series 2019-GC40: | |||
Class D, 3% 7/10/52 (a) | 2,079,000 | 1,922,597 | |
Class DBF, 3.5497% 7/10/52 (a)(b) | 2,523,000 | 2,329,129 | |
Series 2019-GC42: | |||
Class D, 2.8% 9/1/52 (a) | 4,807,000 | 4,360,334 | |
Class E, 2.8% 9/1/52 (a) | 2,519,000 | 2,268,545 | |
Series 2019-GS5 Class C, 4.299% 3/10/50 (b) | 2,499,000 | 2,630,887 | |
Series 2019-GSA1 Class E, 2.8% 11/10/52 (a) | 1,655,000 | 1,465,628 | |
Series 2020-GC45: | |||
Class D, 2.85% 2/13/53 (a) | 2,289,000 | 2,071,095 | |
Class SWD, 3.2185% 12/13/39 (a)(b) | 1,764,000 | 1,655,733 | |
Series 2020-GC47 Class D, 3.4553% 5/12/53 (a)(b) | 756,000 | 744,561 | |
Series 2021-RENT Class G, 1 month U.S. LIBOR + 5.700% 5.797% 11/21/35 (a)(b)(e) | 6,468,000 | 6,471,007 | |
Hilton U.S.A. Trust: | |||
Series 2016-HHV: | |||
Class E, 4.1935% 11/5/38 (a)(b) | 3,079,000 | 3,179,234 | |
Class F, 4.1935% 11/5/38 (a)(b) | 5,977,000 | 5,968,651 | |
Series 2016-SFP: | |||
Class D, 4.9269% 11/5/35 (a) | 1,556,000 | 1,561,898 | |
Class F, 6.1552% 11/5/35 (a) | 3,595,000 | 3,621,924 | |
Home Partners of America Trust Series 2019-1: | |||
Class E, 3.604% 9/17/39 (a) | 1,489,778 | 1,510,628 | |
Class F, 4.101% 9/17/39 (a) | 241,734 | 248,176 | |
Hudson Yards Mortgage Trust: | |||
Series 2019-30HY Class E, 3.4431% 7/10/39 (a)(b) | 1,947,000 | 1,998,294 | |
Series 2019-55HY Class F, 2.9428% 12/10/41 (a)(b) | 1,617,000 | 1,537,150 | |
IMT Trust Series 2017-APTS: | |||
Class EFL, 1 month U.S. LIBOR + 2.150% 2.2509% 6/15/34 (a)(b)(e) | 1,327,956 | 1,321,961 | |
Class FFL, 1 month U.S. LIBOR + 2.850% 2.9509% 6/15/34 (a)(b)(e) | 544,983 | 542,419 | |
Independence Plaza Trust Series 2018-INDP Class E, 4.996% 7/10/35 (a) | 2,083,000 | 2,055,762 | |
JP Morgan Chase Commercial Mortgage Securities Trust: | |||
floater: | |||
Series 2018-LAQ Class C, 1 month U.S. LIBOR + 1.600% 1.701% 6/15/32 (a)(b)(e) | 1,528,800 | 1,529,701 | |
Series 2019-MFP: | |||
Class E, 1 month U.S. LIBOR + 2.160% 2.261% 7/15/36 (a)(b)(e) | 2,292,000 | 2,266,605 | |
Class F, 1 month U.S. LIBOR + 3.000% 3.101% 7/15/36 (a)(b)(e) | 777,000 | 766,353 | |
Series 2020-NNN Class FFL, 1 month U.S. LIBOR + 2.500% 2.6009% 1/16/37 (a)(b)(e) | 767,550 | 763,908 | |
Series 2021-MHC Class E, 1 month U.S. LIBOR + 2.450% 2.551% 4/15/38 (a)(b)(e) | 3,060,000 | 3,073,678 | |
Series 2020-NNN: | |||
Class EFX, 3.972% 1/16/37 (a) | 2,771,000 | 2,801,740 | |
Class FFX, 4.6254% 1/16/37 (a) | 2,388,000 | 2,367,503 | |
Class GFX, 4.6882% 1/16/37 (a)(b) | 942,000 | 908,014 | |
JPMBB Commercial Mortgage Securities Trust: | |||
Series 2014-C23 Class UH5, 4.7094% 9/15/47 (a) | 604,000 | 483,601 | |
Series 2014-C26 Class D, 3.8791% 1/15/48 (a)(b) | 2,329,000 | 2,304,398 | |
Series 2015-C32 Class C, 4.6507% 11/15/48 (b) | 1,500,000 | 1,275,719 | |
JPMCC Commercial Mortgage Securities Trust Series 2016-JP4 Class D, 3.4189% 12/15/49 (a)(b) | 2,418,000 | 2,079,176 | |
JPMDB Commercial Mortgage Securities Trust: | |||
Series 2016-C4 Class D, 3.0727% 12/15/49 (a)(b) | 3,867,000 | 3,349,905 | |
Series 2017-C7 Class D, 3% 10/15/50 (a) | 1,813,000 | 1,644,148 | |
Series 2018-C8 Class D, 3.2428% 6/15/51 (a)(b) | 1,171,000 | 1,013,077 | |
Series 2019-COR6: | |||
Class D, 2.5% 11/13/52 (a) | 1,354,000 | 1,223,909 | |
Class E, 2.5% 11/13/52 (a) | 2,582,000 | 2,267,295 | |
Series 2020-COR7 Class D, 1.75% 5/13/53 (a) | 1,535,000 | 1,271,154 | |
JPMorgan Chase Commercial Mortgage Securities Trust: | |||
Series 2011-C3: | |||
Class E, 5.5227% 2/15/46 (a)(b) | 3,008,000 | 1,250,175 | |
Class G, 4.409% 2/15/46 (a)(b)(d) | 1,082,000 | 179,749 | |
Class H, 4.409% 2/15/46 (a)(b)(d) | 2,622,000 | 125,532 | |
Series 2011-C4: | |||
Class C, 5.3844% 7/15/46 (a)(b) | 1,315,727 | 1,314,266 | |
Class D, 5.5221% 7/15/46 (a)(b) | 2,500,000 | 2,492,414 | |
Class F, 3.873% 7/15/46 (a) | 494,000 | 491,419 | |
Class H, 3.873% 7/15/46 (a) | 2,683,000 | 2,666,634 | |
Class NR, 3.873% 7/15/46 (a) | 1,322,500 | 1,297,240 | |
Series 2012-CBX: | |||
Class D, 5.0664% 6/15/45 (a)(b) | 3,373,000 | 2,785,813 | |
Class E, 5.0664% 6/15/45 (a)(b) | 3,206,000 | 1,489,592 | |
Class F, 4% 6/15/45 (a)(d) | 3,743,000 | 1,104,959 | |
Class G 4% 6/15/45 (a)(d) | 4,129,000 | 817,168 | |
Series 2013-LC11: | |||
Class D, 4.1667% 4/15/46 (b) | 3,677,000 | 2,769,624 | |
Class E, 3.25% 4/15/46 (a)(b) | 104,000 | 63,046 | |
Class F, 3.25% 4/15/46 (a)(b)(d) | 5,894,000 | 2,813,502 | |
Series 2014-DSTY: | |||
Class D, 3.8046% 6/10/27 (a)(b)(d) | 3,213,000 | 485,018 | |
Class E, 3.8046% 6/10/27 (a)(b) | 4,232,000 | 237,406 | |
Series 2018-AON Class F, 4.6132% 7/5/31 (a)(b) | 2,150,000 | 2,160,357 | |
Series 2019-OSB Class E, 3.7828% 6/5/39 (a)(b) | 2,350,000 | 2,332,490 | |
KNDL Mortgage Trust floater Series 2019-KNSQ Class F, 1 month U.S. LIBOR + 2.000% 2.101% 5/15/36 (a)(b)(e) | 3,483,000 | 3,356,898 | |
Liberty Street Trust Series 2016-225L Class E, 4.6485% 2/10/36 (a)(b) | 2,063,000 | 2,166,163 | |
LIFE Mortgage Trust floater Series 2021-BMR Class G, 1 month U.S. LIBOR + 2.950% 3.051% 3/15/38 (a)(b)(e) | 14,406,000 | 14,442,071 | |
Market Mortgage Trust Series 2020-525M Class F, 2.9406% 2/12/40 (a)(b) | 1,976,000 | 1,790,015 | |
MHC Commercial Mortgage Trust floater Series 2021-MHC Class G, 1 month U.S. LIBOR + 3.200% 3.3018% 4/15/38 (a)(b)(e) | 14,000,000 | 14,022,449 | |
MHC Trust floater Series 2021-MHC2 Class F, 1 month U.S. LIBOR + 2.400% 2.051% 5/15/23 (a)(b)(e) | 3,850,000 | 3,852,410 | |
MOFT Trust Series 2020-ABC: | |||
Class D, 3.4767% 2/10/42 (a)(b) | 1,144,000 | 1,082,425 | |
Class E, 3.4767% 2/10/42 (a)(b) | 841,000 | 758,942 | |
Morgan Stanley BAML Trust: | |||
sequential payer Series 2014-C18 Class 300E, 4.6896% 8/15/31 | 1,666,000 | 1,596,022 | |
Series 2012-C5 Class E, 4.6629% 8/15/45 (a)(b) | 889,000 | 902,310 | |
Series 2012-C6 Class D, 4.6051% 11/15/45 (a)(b) | 3,633,000 | 3,610,959 | |
Series 2012-C6, Class F, 4.6051% 11/15/45 (a)(b)(d) | 1,575,000 | 1,132,549 | |
Series 2013-C12 Class D, 4.7626% 10/15/46 (a)(b) | 3,996,000 | 3,276,012 | |
Series 2013-C13: | |||
Class D, 4.8977% 11/15/46 (a)(b) | 5,150,000 | 4,838,395 | |
Class E, 4.8977% 11/15/46 (a)(b) | 1,666,000 | 1,352,174 | |
Series 2013-C8 Class D, 4.0556% 12/15/48 (a)(b) | 1,883,000 | 1,888,195 | |
Series 2013-C9: | |||
Class D, 4.111% 5/15/46 (a)(b) | 4,440,000 | 4,017,547 | |
Class E, 4.111% 5/15/46 (a)(b) | 1,594,370 | 1,346,918 | |
Series 2016-C30 Class D, 3% 9/15/49 (a) | 798,000 | 584,609 | |
Series 2017-C33 Class D, 3.356% 5/15/50 (a) | 2,932,000 | 2,769,963 | |
Morgan Stanley Capital I Trust: | |||
Series 1998-CF1 Class G, 7.35% 7/15/32 (a)(b) | 43,877 | 44,411 | |
Series 2011-C2: | |||
Class D, 5.3125% 6/15/44 (a)(b) | 6,083,000 | 5,498,201 | |
Class F, 5.3125% 6/15/44 (a)(b)(d) | 3,015,000 | 1,782,167 | |
Series 2011-C3: | |||
Class C, 5.2155% 7/15/49 (a)(b) | 2,061,000 | 2,043,267 | |
Class D, 5.2155% 7/15/49 (a)(b) | 8,074,000 | 7,817,454 | |
Class E, 5.2155% 7/15/49 (a)(b)(d) | 2,610,000 | 2,125,183 | |
Class F, 5.2155% 7/15/49 (a)(b)(d) | 984,000 | 624,774 | |
Class G, 5.2155% 7/15/49 (a)(b)(d) | 3,536,800 | 1,296,422 | |
Series 2012-C4 Class D, 5.4182% 3/15/45 (a)(b) | 1,624,000 | 1,438,124 | |
Series 2015-MS1 Class D, 4.0312% 5/15/48 (a)(b) | 4,300,000 | 3,869,800 | |
Series 2015-UBS8 Class D, 3.18% 12/15/48 (a) | 1,747,000 | 1,008,670 | |
Series 2016-BNK2 Class C, 3% 11/15/49 (a) | 4,506,000 | 3,771,597 | |
Series 2017-CLS Class F, 1 month U.S. LIBOR + 2.600% 2.701% 11/15/34 (a)(b)(e) | 916,000 | 915,272 | |
Series 2018-MP Class E, 4.276% 7/11/40 (a)(b) | 2,499,000 | 2,279,064 | |
Series 2020-CNP Class D, 2.4276% 4/5/42 (a)(b) | 1,043,000 | 900,186 | |
Motel 6 Trust floater: | |||
Series 2017-M6MZ, Class M, 1 month U.S. LIBOR + 6.920% 7.0275% 8/15/24 (a)(b)(e) | 509,219 | 491,856 | |
Series 2017-MTL6, Class F, 1 month U.S. LIBOR + 4.250% 4.351% 8/15/34 (a)(b)(e) | 8,997,045 | 9,043,515 | |
MRCD Series 2019-PARK: | |||
Class G, 2.7175% 12/15/36 (a) | 10,373,000 | 9,965,506 | |
Class J, 4.25% 12/15/36 (a) | 6,790,000 | 6,585,599 | |
MSCCG Trust floater sequential payer Series 2018-SELF Class F, 1 month U.S. LIBOR + 3.050% 3.151% 10/15/37 (a)(b)(e) | 1,024,000 | 1,024,632 | |
MSJP Commercial Securities Mortgage Trust Series 2015-HAUL Class E, 4.851% 9/5/47 (a)(b) | 1,014,000 | 786,578 | |
Natixis Commercial Mortgage Securities Trust: | |||
floater Series 2018-FL1: | |||
Class WAN1, 1 month U.S. LIBOR + 2.750% 2.8509% 6/15/35 (a)(b)(e) | 262,000 | 249,535 | |
Class WAN2, 1 month U.S. LIBOR + 3.750% 3.8509% 6/15/35 (a)(b)(e) | 222,000 | 210,697 | |
Series 2018-285M Class F, 3.7904% 11/15/32 (a)(b) | 909,000 | 894,617 | |
Series 2018-TECH: | |||
Class E, 1 month U.S. LIBOR + 2.250% 2.3509% 11/15/34 (a)(b)(e) | 638,000 | 635,222 | |
Class F, 1 month U.S. LIBOR + 3.000% 3.1009% 11/15/34 (a)(b)(e) | 96,000 | 95,049 | |
Class G, 1 month U.S. LIBOR + 4.000% 4.1009% 11/15/34 (a)(b)(e) | 572,000 | 560,667 | |
Series 2019-10K: | |||
Class E, 4.1346% 5/15/39 (a)(b) | 984,000 | 945,656 | |
Class F, 4.1346% 5/15/39 (a)(b) | 3,014,000 | 2,673,804 | |
Series 2019-1776: | |||
Class E, 3.9017% 10/15/36 (a) | 2,268,000 | 2,237,143 | |
Class F, 4.2988% 10/15/36 (a) | 3,589,000 | 3,438,507 | |
Series 2020-2PAC: | |||
Class AMZ2, 3.5% 1/15/37 (a)(b) | 1,754,950 | 1,801,981 | |
Class AMZ3, 3.5% 1/15/37 (a)(b) | 822,675 | 830,614 | |
Class MSK3, 3.25% 12/15/36 (a)(b) | 855,550 | 834,103 | |
Progress Residential Trust Series 2019-SFR3 Class F, 3.867% 9/17/36 (a) | 1,228,000 | 1,260,185 | |
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (a) | 1,771,603 | 2,035,733 | |
SFO Commercial Mortgage Trust floater Series 2021-555 Class F, 1 month U.S. LIBOR + 3.650% 3.751% 5/15/38 (a)(b)(e) | 879,000 | 884,175 | |
SG Commercial Mortgage Securities Trust: | |||
Series 2019-PREZ Class F, 3.4771% 9/15/39 (a)(b) | 3,206,000 | 2,963,282 | |
Series 2020-COVE: | |||
Class F, 3.7276% 3/15/37(a)(b) | 3,105,000 | 2,965,569 | |
Class G, 3.7276% 3/15/37 (a)(b) | 858,000 | 771,678 | |
TIAA Seasoned Commercial Mortgage Trust Series 2007-C4 Class F, 5.5148% 8/15/39 (b) | 4,452,000 | 4,306,738 | |
TPGI Trust floater Series 2021-DGWD: | |||
Class E, 1 month U.S. LIBOR + 2.350% 2.45% 6/15/26 (a)(b)(e) | 2,585,000 | 2,585,000 | |
Class G, 1 month U.S. LIBOR + 3.850% 3.9% 6/15/26 (a)(b)(e) | 1,008,000 | 1,008,000 | |
TTAN floater Series 2021-MHC Class E, 1 month U.S. LIBOR + 2.450% 2.501% 3/15/38 (a)(b)(e) | 3,781,000 | 3,788,178 | |
UBS Commercial Mortgage Trust: | |||
Series 2012-C1: | |||
Class D, 5.5686% 5/10/45 (a)(b) | 3,272,000 | 2,983,869 | |
Class E, 5% 5/10/45 (a)(b)(d) | 1,911,000 | 1,194,871 | |
Class F, 5% 5/10/45 (a)(b)(d) | 2,484,000 | 363,615 | |
Series 2018-C8 Class C, 4.7013% 2/15/51 (b) | 756,000 | 843,808 | |
UBS-BAMLL Trust: | |||
Series 12-WRM Class D, 4.238% 6/10/30 (a)(b) | 2,090,000 | 1,269,757 | |
Series 2012-WRM Class C, 4.238% 6/10/30 (a)(b) | 890,000 | 771,069 | |
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class C, 6.0544% 1/10/45 (a)(b) | 672,000 | 667,337 | |
VASA Trust: | |||
floater Series 2021-VASA Class G, 1 month U.S. LIBOR + 5.000% 5.101% 7/15/39 (a)(b)(e) | 693,000 | 694,922 | |
floater sequential payer Series 2021-VASA Class F, 1 month U.S. LIBOR + 3.900% 4.001% 7/15/39 (a)(b)(e) | 2,541,000 | 2,548,196 | |
Wells Fargo Commercial Mortgage Trust: | |||
floater: | |||
Series 2020-SOP Class E, 1 month U.S. LIBOR + 2.710% 2.8109% 1/15/35 (a)(b)(e) | 1,066,000 | 1,052,648 | |
Series 2021-SAVE: | |||
Class D, 1 month U.S. LIBOR + 2.500% 2.601% 2/15/40 (a)(b)(e) | 719,036 | 725,347 | |
Class E, 1 month U.S. LIBOR + 3.650% 3.751% 2/15/40 (a)(b)(e) | 511,779 | 516,271 | |
sequential payer Series 2020-C57 Class D, 2.5% 8/15/53 (a) | 2,108,000 | 1,913,600 | |
Series 2012-LC5: | |||
Class D, 4.7577% 10/15/45 (a)(b) | 6,116,000 | 6,246,819 | |
Class E, 4.7577% 10/15/45 (a)(b) | 1,051,000 | 1,030,649 | |
Class F, 4.7577% 10/15/45 (a)(b) | 588,000 | 476,602 | |
Series 2015-NXS4 Class D, 3.6987% 12/15/48 (b) | 1,834,000 | 1,829,969 | |
Series 2016-BNK1 Class D, 3% 8/15/49 (a) | 1,526,000 | 1,034,268 | |
Series 2016-C35 Class D, 3.142% 7/15/48 (a) | 3,894,000 | 3,243,168 | |
Series 2016-NXS6 Class D, 3.059% 11/15/49 (a) | 4,250,000 | 3,557,185 | |
Series 2017-RB1 Class D, 3.401% 3/15/50 (a) | 1,824,000 | 1,735,351 | |
WF-RBS Commercial Mortgage Trust: | |||
sequential payer Series 2011-C4I Class G, 5% 6/15/44 (d) | 1,252,600 | 103,151 | |
Series 2011-C3: | |||
Class D, 5.5978% 3/15/44 (a)(b) | 4,914,756 | 2,403,807 | |
Class E, 5% 3/15/44 (a) | 1,258,000 | 117,529 | |
Class F, 5% 3/15/44 (a)(d) | 2,421,350 | 48,427 | |
Series 2011-C4: | |||
Class D, 5.1338% 6/15/44 (a)(b) | 1,616,000 | 1,448,082 | |
Class E, 5.1338% 6/15/44 (a)(b)(d) | 1,274,000 | 778,589 | |
Series 2011-C5: | |||
Class D, 5.7086% 11/15/44 (a)(b) | 2,978,000 | 2,964,804 | |
Class E, 5.7086% 11/15/44 (a)(b) | 4,203,655 | 4,134,716 | |
Class F, 5.25% 11/15/44 (a)(b) | 3,930,000 | 3,485,001 | |
Class G, 5.25% 11/15/44 (a)(b) | 1,255,150 | 1,070,556 | |
Series 2012-C6 Class D, 5.614% 4/15/45 (a)(b) | 2,707,000 | 2,755,003 | |
Series 2012-C7: | |||
Class E, 4.8034% 6/15/45 (a)(b)(d) | 1,514,000 | 227,175 | |
Class F, 4.5% 6/15/45 (a)(d) | 1,470,000 | 73,506 | |
Class G, 4.5% 6/15/45 (a)(d) | 4,218,750 | 422 | |
Series 2012-C8: | |||
Class D, 4.8839% 8/15/45 (a)(b) | 833,000 | 818,753 | |
Class E, 4.8839% 8/15/45 (a)(b) | 1,167,000 | 941,090 | |
Series 2013-C11: | |||
Class D, 4.2416% 3/15/45 (a)(b) | 1,865,000 | 1,832,390 | |
Class E, 4.2416% 3/15/45 (a)(b) | 4,999,000 | 4,246,136 | |
Series 2013-C13 Class D, 4.1387% 5/15/45 (a)(b) | 1,499,000 | 1,480,002 | |
Series 2013-C16 Class D, 5.0048% 9/15/46 (a)(b) | 668,000 | 616,279 | |
Series 2013-UBS1 Class D, 5.0396% 3/15/46 (a)(b) | 2,638,000 | 2,566,712 | |
Worldwide Plaza Trust Series 2017-WWP Class F, 3.5955% 11/10/36 (a)(b) | 4,695,000 | 4,176,874 | |
WP Glimcher Mall Trust Series 2015-WPG: | |||
Class PR1, 3.516% 6/5/35 (a)(b) | 1,638,000 | 1,423,767 | |
Class PR2, 3.516% 6/5/35 (a)(b) | 4,354,000 | 3,435,176 | |
TOTAL COMMERCIAL MORTGAGE SECURITIES | |||
(Cost $741,437,134) | 713,211,885 | ||
Shares | Value | ||
Common Stocks - 0.8% | |||
Homebuilders/Real Estate - 0.8% | |||
Colony Capital, Inc. (g) | 200,000 | 1,374,000 | |
Digital Realty Trust, Inc. | 12,400 | 1,879,344 | |
iStar Financial, Inc. | 216,200 | 3,634,322 | |
TOTAL COMMON STOCKS | |||
(Cost $4,109,804) | 6,887,666 | ||
Preferred Stocks - 2.6% | |||
Convertible Preferred Stocks - 0.2% | |||
Homebuilders/Real Estate - 0.2% | |||
RLJ Lodging Trust Series A, 1.95% | 70,550 | 1,963,407 | |
Nonconvertible Preferred Stocks - 2.4% | |||
Diversified Financial Services - 0.7% | |||
AGNC Investment Corp. Series E, 6.50% (b) | 147,792 | 3,749,483 | |
MFA Financial, Inc. Series B, 7.50% | 80,525 | 2,055,803 | |
5,805,286 | |||
Homebuilders/Real Estate - 1.7% | |||
American Homes 4 Rent Series D, 6.50% | 10,861 | 274,457 | |
Capstead Mortgage Corp. Series E, 7.50% | 87,175 | 2,208,143 | |
Colony Capital, Inc.: | |||
Series H, 7.125% | 76,200 | 1,898,142 | |
Series I, 7.15% | 71,600 | 1,786,420 | |
DiamondRock Hospitality Co. 8.25% | 25,800 | 749,490 | |
Dynex Capital, Inc. Series C 6.90% (b) | 57,707 | 1,457,679 | |
iStar Financial, Inc. Series G, 7.65% | 74,400 | 1,897,721 | |
Rexford Industrial Realty, Inc. Series B, 5.875% | 91,475 | 2,414,940 | |
UMH Properties, Inc. Series C, 6.75% | 98,998 | 2,561,078 | |
15,248,070 | |||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 21,053,356 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $21,756,391) | 23,016,763 | ||
Principal Amount | Value | ||
Bank Loan Obligations - 3.3% | |||
Air Transportation - 0.6% | |||
Hanjin International Corp. 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.5% 12/23/22 (b)(d)(e)(h) | 5,480,000 | 5,473,150 | |
Diversified Financial Services - 1.4% | |||
Agellan Portfolio 9% 8/7/25 (b)(d)(h) | 908,000 | 917,080 | |
Extell Boston 5.154% 8/31/21 (b)(d)(h) | 558,267 | 558,267 | |
Veritas Multifamily Portfolio 1 month U.S. LIBOR + 8.500% 8.75% 11/15/22(b)(d)(e)(h) | 11,246,000 | 11,274,115 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 12,749,462 | ||
Homebuilders/Real Estate - 0.6% | |||
Aragon Junior Mezzanine 1 month U.S. LIBOR + 6.000% 7.25% 1/15/25 (b)(d)(e)(h) | 2,193,648 | 2,199,133 | |
DTZ U.S. Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8425% 8/21/25 (b)(e)(h) | 2,925,449 | 2,889,407 | |
Realogy Group LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3% 2/8/25 (b)(e)(h) | 21,337 | 21,235 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 5,109,775 | ||
Hotels - 0.3% | |||
Hilton Grand Vacations Borrower LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 5/20/28 (e)(h)(i) | 345,000 | 345,431 | |
Playa Resorts Holding BV Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.75% 4/27/24 (b)(e)(h) | 918,300 | 878,749 | |
Ryman Hospitality Properties, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 2.1% 5/11/24 (b)(e)(h) | 1,690,364 | 1,670,080 | |
TOTAL HOTELS | 2,894,260 | ||
Services - 0.2% | |||
CoreCivic, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 12/18/24 (b)(e)(h) | 1,983,563 | 1,909,179 | |
Telecommunications - 0.2% | |||
SBA Senior Finance II, LLC Tranche B, term loan 3 month U.S. LIBOR + 1.750% 1.85% 4/11/25(b)(e)(h) | 1,619,371 | 1,607,906 | |
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $29,784,512) | 29,743,732 | ||
Preferred Securities - 0.0% | |||
Homebuilders/Real Estate - 0.0% | |||
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (a)(d) | 3,000,000 | 60,000 | |
Crest Dartmouth Street 2003-1 Ltd. Series 2003-1A Class PS, 6/28/38 (a)(d) | 3,100,000 | 310 | |
TOTAL PREFERRED SECURITIES | |||
(Cost $6,004,704) | 60,310 | ||
Shares | Value | ||
Money Market Funds - 5.8% | |||
Fidelity Cash Central Fund 0.03% (j) | |||
(Cost $51,667,550) | 51,657,219 | 51,667,550 | |
TOTAL INVESTMENT IN SECURITIES - 100.7% | |||
(Cost $932,072,169) | 898,614,769 | ||
NET OTHER ASSETS (LIABILITIES) - (0.7)% | (6,187,327) | ||
NET ASSETS - 100% | $892,427,442 |
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 $741,080,270 or 83.0% of net assets.
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(c) 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.
(d) Level 3 security
(e) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(f) 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 $32,192 or 0.0% of net assets.
(g) Non-income producing
(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) The coupon rate will be determined upon settlement of the loan after period end.
(j) 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, 3.4192% 6/25/43 | 9/29/03 | $5,227 |
Fannie Mae REMIC Trust Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B5, 3.4192% 6/25/43 | 9/29/03 | $284 |
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 | $15,539 |
Total | $15,539 |
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.
The value, beginning of period, for the Fidelity Cash Central Fund was $31,880,306. Net realized gain (loss) and change in net unrealized appreciation (depreciation) on Fidelity Cash Central Fund is presented in the Statement of Operations, if applicable. Purchases and sales of the Fidelity Cash Central Fund were $149,395,601 and $129,608,345, respectively, during the period.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2021, 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 | $9,471,108 | $9,471,108 | $-- | $-- |
Real Estate | 20,433,321 | 18,469,914 | 1,963,407 | -- |
Corporate Bonds | 31,010,106 | -- | 31,010,106 | -- |
Asset-Backed Securities | 42,969,562 | -- | 42,968,198 | 1,364 |
Collateralized Mortgage Obligations | 47,195 | -- | 40,423 | 6,772 |
Commercial Mortgage Securities | 713,211,885 | -- | 688,432,882 | 24,779,003 |
Bank Loan Obligations | 29,743,732 | -- | 9,321,987 | 20,421,745 |
Preferred Securities | 60,310 | -- | -- | 60,310 |
Money Market Funds | 51,667,550 | 51,667,550 | -- | -- |
Total Investments in Securities: | $898,614,769 | $79,608,572 | $773,737,003 | $45,269,194 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Commercial Mortgage Obligations | |
Beginning Balance | $ 9,405,174 |
Net Realized Gain (Loss) on Investment Securities | (461,418) |
Net Unrealized Gain (Loss) on Investment Securities | (3,172,138) |
Cost of Purchases | -- |
Proceeds of Sales | (618,520) |
Amortization/Accretion | 102,886 |
Transfers into Level 3 | 20,842,001 |
Transfers out of Level 3 | (1,318,982) |
Ending Balance | $ 24,779,003 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2021 | $(3,479,787) |
Bank Loan Obligations | |
Beginning Balance | $ 15,518,064 |
Net Realized Gain (Loss) on Investment Securities | (170) |
Net Unrealized Gain (Loss) on Investment Securities | 57,979 |
Cost of Purchases | 5,453,850 |
Proceeds of Sales | (612,160) |
Amortization/Accretion | 4,182 |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $20,421,745 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2021 | $57,979 |
Other Investments in Securities | |
Beginning Balance | $ 98,762 |
Net Realized Gain (Loss) on Investment Securities | 5 |
Net Unrealized Gain (Loss) on Investment Securities | 31,785 |
Cost of Purchases | 215,630 |
Proceeds of Sales | (4,038) |
Amortization/Accretion | (242,261) |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (31,437) |
Ending Balance | $ 68,446 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2021 | $ 31,785 |
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, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $880,404,619) | $846,947,219 | |
Fidelity Central Funds (cost $51,667,550) | 51,667,550 | |
Total Investment in Securities (cost $932,072,169) | $898,614,769 | |
Cash | 10,811 | |
Receivable for investments sold | 2,548 | |
Dividends receivable | 104,362 | |
Interest receivable | 3,139,393 | |
Distributions receivable from Fidelity Central Funds | 1,593 | |
Prepaid expenses | 150 | |
Total assets | 901,873,626 | |
Liabilities | ||
Payable for investments purchased | $8,494,379 | |
Distributions payable | 304,148 | |
Accrued management fee | 513,371 | |
Other affiliated payables | 42,813 | |
Other payables and accrued expenses | 91,473 | |
Total liabilities | 9,446,184 | |
Net Assets | $892,427,442 | |
Net Assets consist of: | ||
Paid in capital | $948,271,570 | |
Total accumulated earnings (loss) | (55,844,128) | |
Net Assets | $892,427,442 | |
Net Asset Value, offering price and redemption price per share ($892,427,442 ÷ 109,000,812 shares) | $8.19 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2021 (Unaudited) | ||
Investment Income | ||
Interest | $18,414,199 | |
Income from Fidelity Central Funds | 15,539 | |
Total income | 18,429,738 | |
Expenses | ||
Management fee | $2,857,708 | |
Transfer agent fees | 61,423 | |
Accounting fees and expenses | 179,300 | |
Custodian fees and expenses | 8,792 | |
Independent trustees' fees and expenses | 1,592 | |
Audit | 96,016 | |
Legal | 1,691 | |
Miscellaneous | 1,916 | |
Total expenses before reductions | 3,208,438 | |
Expense reductions | (1,031) | |
Total expenses after reductions | 3,207,407 | |
Net investment income (loss) | 15,222,331 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (1,526,665) | |
Fidelity Central Funds | (12) | |
Total net realized gain (loss) | (1,526,677) | |
Change in net unrealized appreciation (depreciation) on investment securities | 44,260,125 | |
Net gain (loss) | 42,733,448 | |
Net increase (decrease) in net assets resulting from operations | $57,955,779 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2021 (Unaudited) | Year ended November 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $15,222,331 | $32,547,876 |
Net realized gain (loss) | (1,526,677) | (11,960,714) |
Change in net unrealized appreciation (depreciation) | 44,260,125 | (82,855,797) |
Net increase (decrease) in net assets resulting from operations | 57,955,779 | (62,268,635) |
Distributions to shareholders | (19,275,120) | (32,213,221) |
Share transactions | ||
Proceeds from sales of shares | 81,050,000 | 97,052,500 |
Reinvestment of distributions | 17,472,803 | 28,859,411 |
Cost of shares redeemed | (1,800,000) | (95,929,352) |
Net increase (decrease) in net assets resulting from share transactions | 96,722,803 | 29,982,559 |
Total increase (decrease) in net assets | 135,403,462 | (64,499,297) |
Net Assets | ||
Beginning of period | 757,023,980 | 821,523,277 |
End of period | $892,427,442 | $757,023,980 |
Other Information | ||
Shares | ||
Sold | 10,044,638 | 13,099,991 |
Issued in reinvestment of distributions | 2,179,490 | 3,758,479 |
Redeemed | (224,986) | (13,487,039) |
Net increase (decrease) | 11,999,142 | 3,371,431 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Real Estate High Income Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $7.80 | $8.77 | $8.44 | $8.60 | $8.51 | $8.80 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .149 | .341 | .418 | .417 | .433 | .451 |
Net realized and unrealized gain (loss) | .432 | (.972) | .338 | (.148) | .064 | (.343) |
Total from investment operations | .581 | (.631) | .756 | .269 | .497 | .108 |
Distributions from net investment income | (.191) | (.339) | (.426) | (.429) | (.407) | (.398) |
Total distributions | (.191) | (.339) | (.426) | (.429) | (.407) | (.398) |
Net asset value, end of period | $8.19 | $7.80 | $8.77 | $8.44 | $8.60 | $8.51 |
Total ReturnB,C | 7.53% | (7.06)% | 9.15% | 3.23% | 5.94% | 1.26% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | .79%F | .79% | .80% | .80% | .80% | .80% |
Expenses net of fee waivers, if any | .79%F | .79% | .80% | .80% | .80% | .80% |
Expenses net of all reductions | .79%F | .79% | .79% | .80% | .80% | .80% |
Net investment income (loss) | 3.73%F | 4.41% | 4.83% | 4.91% | 5.03% | 5.23% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $892,427 | $757,024 | $821,523 | $732,992 | $1,103,106 | $1,033,232 |
Portfolio turnover rateG | 14%F | 27% | 26% | 13%H | 18% | 19% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
F Annualized
G Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, 2021
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.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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. Independent prices obtained from a single source or broker are evaluated by management and may be categorized as Level 3 in the hierarchy.
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) |
Asset-Backed Securities | $1,364 | Discounted Cash Flow | Spread | 6.4% | Decrease |
Expected distribution | Recovery Rate | 0.0% | Increase | ||
Commercial Mortgage Securities | $24,779,003 | Indicative market bid Discounted Cash Flow | Bid Price Yield Spread | $51.34 9.5% - 20.0% / 12.9% 17.0% - 2,281.4% / 400.8% | Increase Decrease Decrease |
Collateralized Mortgage Obligations | $6,772 | Indicative Market Bid Discounted Cash Flow | Bid Price Yield Spread | $8.75 6.0% 2.5% | Increase Decrease Decrease |
Preferred Securities | $60,310 | Indicative market bid | Evaluated Bid | $0.00 - $2.00 / $1.99 | Increase |
Bank Loan Obligations | $20,421,745 | Indicative market bid Discounted Cash Flow | Evaluated bid Yield | $99.88 5.2% - 9.2% / 8.7% | Increase Decrease |
(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, 2021, 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, controlled foreign corporations and 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 | $41,784,751 |
Gross unrealized depreciation | (75,243,952) |
Net unrealized appreciation (depreciation) | $(33,459,201) |
Tax cost | $932,073,970 |
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 | $(7,998,229) |
Long-term | (10,255,969) |
Total capital loss carryforward | $(18,254,198) |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Loans and Other Direct Debt Instruments. Direct debt instruments 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 a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable
New Accounting Pronouncement. In March 2020, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other IBOR-based reference rates. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the potential impact of ASU 2020-04 to the financial statements.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Real Estate High Income Fund | 134,764,419 | 55,521,345 |
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 | $123 |
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. Any 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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Real Estate High Income Fund | $777 |
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 expenses. This amount totaled $32 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 $234.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $765.
8. Other.
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, certain otherwise unaffiliated shareholders were owners of record of more than 10% of the outstanding shares as follows:
Fund | Number of Unaffiliated Shareholders | Unaffiliated Shareholders % |
Fidelity Real Estate High Income Fund | 2 | 47% |
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Real Estate High Income Fund | .79% | |||
Actual | $1,000.00 | $1,075.30 | $4.09 | |
Hypothetical-C | $1,000.00 | $1,020.99 | $3.98 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, 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/0001379491-21-003389/img711127836.jpg)
Fidelity Real Estate High Income Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711128646.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, 2019 through November 30, 2020. 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-0721
1.723505.122
Fidelity Advisor® Dividend Growth Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Microsoft Corp. | 7.1 |
Wells Fargo & Co. | 2.3 |
Visa, Inc. Class A | 2.3 |
Apple, Inc. | 1.9 |
Bank of America Corp. | 1.9 |
General Electric Co. | 1.9 |
JPMorgan Chase & Co. | 1.9 |
UnitedHealth Group, Inc. | 1.7 |
The Walt Disney Co. | 1.4 |
Broadcom, Inc. | 1.3 |
23.7 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Information Technology | 24.7 |
Consumer Discretionary | 12.2 |
Health Care | 11.9 |
Industrials | 11.9 |
Financials | 11.9 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021* | ||
Stocks | 99.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments – 19.1%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 7.5% | |||
Entertainment - 2.6% | |||
Activision Blizzard, Inc. | 103,700 | $10,085 | |
Electronic Arts, Inc. | 34,600 | 4,945 | |
The Walt Disney Co. (a) | 91,200 | 16,293 | |
31,323 | |||
Interactive Media & Services - 3.2% | |||
Alphabet, Inc. Class A (a) | 6,100 | 14,377 | |
Facebook, Inc. Class A (a) | 45,900 | 15,089 | |
Tencent Holdings Ltd. | 89,200 | 7,114 | |
Z Holdings Corp. | 455,600 | 2,141 | |
38,721 | |||
Media - 1.7% | |||
Comcast Corp. Class A | 194,650 | 11,161 | |
Interpublic Group of Companies, Inc. | 266,500 | 8,978 | |
20,139 | |||
TOTAL COMMUNICATION SERVICES | 90,183 | ||
CONSUMER DISCRETIONARY - 12.2% | |||
Auto Components - 0.7% | |||
BorgWarner, Inc. | 80,400 | 4,124 | |
Lear Corp. | 20,000 | 3,867 | |
7,991 | |||
Automobiles - 1.0% | |||
General Motors Co. (a) | 139,800 | 8,292 | |
Harley-Davidson, Inc. | 45,100 | 2,186 | |
Hyundai Motor Co. | 4,400 | 933 | |
11,411 | |||
Hotels, Restaurants & Leisure - 2.9% | |||
Aristocrat Leisure Ltd. | 201,067 | 6,388 | |
Churchill Downs, Inc. | 34,600 | 6,904 | |
Domino's Pizza, Inc. | 12,000 | 5,122 | |
Hilton Worldwide Holdings, Inc. (a) | 33,700 | 4,222 | |
Marriott International, Inc. Class A (a) | 29,900 | 4,293 | |
Restaurant Brands International, Inc. (b) | 111,200 | 7,753 | |
Starbucks Corp. | 100 | 11 | |
34,693 | |||
Household Durables - 2.4% | |||
Lennar Corp. Class A | 93,800 | 9,287 | |
Sony Group Corp. | 80,100 | 7,890 | |
Whirlpool Corp. (b) | 50,500 | 11,973 | |
29,150 | |||
Internet & Direct Marketing Retail - 0.4% | |||
eBay, Inc. | 72,400 | 4,408 | |
Multiline Retail - 1.2% | |||
Dollar General Corp. | 57,500 | 11,670 | |
Target Corp. | 14,100 | 3,200 | |
14,870 | |||
Specialty Retail - 1.9% | |||
Camping World Holdings, Inc. (b) | 244,800 | 10,867 | |
Lowe's Companies, Inc. | 41,200 | 8,027 | |
Williams-Sonoma, Inc. | 25,300 | 4,289 | |
23,183 | |||
Textiles, Apparel & Luxury Goods - 1.7% | |||
PVH Corp. (a) | 76,300 | 8,761 | |
Tapestry, Inc. (a) | 258,900 | 11,622 | |
20,383 | |||
TOTAL CONSUMER DISCRETIONARY | 146,089 | ||
CONSUMER STAPLES - 5.9% | |||
Beverages - 2.4% | |||
Diageo PLC | 121,785 | 5,879 | |
Keurig Dr. Pepper, Inc. (b) | 283,100 | 10,463 | |
The Coca-Cola Co. | 234,600 | 12,971 | |
29,313 | |||
Food & Staples Retailing - 0.2% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 59,700 | 2,674 | |
Household Products - 1.4% | |||
Energizer Holdings, Inc. | 117,000 | 5,387 | |
Spectrum Brands Holdings, Inc. | 126,385 | 11,234 | |
16,621 | |||
Tobacco - 1.9% | |||
Altria Group, Inc. | 207,073 | 10,192 | |
Swedish Match Co. AB | 1,309,000 | 12,143 | |
22,335 | |||
TOTAL CONSUMER STAPLES | 70,943 | ||
ENERGY - 4.8% | |||
Oil, Gas & Consumable Fuels - 4.8% | |||
Cameco Corp. (b) | 193,100 | 3,856 | |
Canadian Natural Resources Ltd. | 256,900 | 9,016 | |
Enterprise Products Partners LP | 147,700 | 3,487 | |
Exxon Mobil Corp. | 269,722 | 15,744 | |
Hess Corp. | 63,600 | 5,331 | |
Reliance Industries Ltd. sponsored GDR (c) | 238,300 | 13,738 | |
Tourmaline Oil Corp. | 270,400 | 6,598 | |
57,770 | |||
FINANCIALS - 11.9% | |||
Banks - 6.1% | |||
Bank of America Corp. | 537,303 | 22,776 | |
JPMorgan Chase & Co. | 136,493 | 22,418 | |
Wells Fargo & Co. | 598,890 | 27,980 | |
73,174 | |||
Capital Markets - 2.7% | |||
BlackRock, Inc. Class A | 13,600 | 11,928 | |
Brookfield Asset Management, Inc. Class A | 71,300 | 3,589 | |
Coinbase Global, Inc. (a)(b) | 7,800 | 1,845 | |
Intercontinental Exchange, Inc. | 84,000 | 9,482 | |
Raymond James Financial, Inc. | 41,000 | 5,436 | |
32,280 | |||
Consumer Finance - 1.3% | |||
American Express Co. | 12,000 | 1,922 | |
Capital One Financial Corp. | 11,100 | 1,785 | |
Discover Financial Services | 100,900 | 11,832 | |
15,539 | |||
Insurance - 1.8% | |||
Arthur J. Gallagher & Co. | 76,400 | 11,201 | |
The Travelers Companies, Inc. | 63,400 | 10,125 | |
21,326 | |||
TOTAL FINANCIALS | 142,319 | ||
HEALTH CARE - 11.9% | |||
Biotechnology - 1.3% | |||
AbbVie, Inc. | 132,000 | 14,942 | |
Health Care Equipment & Supplies - 0.7% | |||
Boston Scientific Corp. (a) | 70,600 | 3,004 | |
Envista Holdings Corp. (a) | 127,000 | 5,542 | |
8,546 | |||
Health Care Providers & Services - 4.7% | |||
Anthem, Inc. | 3,900 | 1,553 | |
Cigna Corp. | 59,000 | 15,272 | |
CVS Health Corp. | 90,500 | 7,823 | |
Humana, Inc. | 25,600 | 11,205 | |
UnitedHealth Group, Inc. | 50,197 | 20,677 | |
56,530 | |||
Life Sciences Tools & Services - 0.8% | |||
Thermo Fisher Scientific, Inc. | 21,200 | 9,953 | |
Pharmaceuticals - 4.4% | |||
AstraZeneca PLC (United Kingdom) | 54,800 | 6,253 | |
Bristol-Myers Squibb Co. | 236,000 | 15,510 | |
Eli Lilly & Co. | 52,100 | 10,406 | |
Merck KGaA | 34,500 | 6,225 | |
Roche Holding AG (participation certificate) | 24,070 | 8,374 | |
UCB SA | 62,100 | 5,811 | |
52,579 | |||
TOTAL HEALTH CARE | 142,550 | ||
INDUSTRIALS - 11.9% | |||
Aerospace & Defense - 1.7% | |||
Airbus Group NV (a) | 45,500 | 5,935 | |
HEICO Corp. Class A | 19,758 | 2,617 | |
The Boeing Co. (a) | 47,400 | 11,709 | |
20,261 | |||
Air Freight & Logistics - 1.1% | |||
FedEx Corp. | 18,700 | 5,887 | |
United Parcel Service, Inc. Class B | 32,500 | 6,975 | |
12,862 | |||
Airlines - 0.2% | |||
Copa Holdings SA Class A (a) | 32,200 | 2,649 | |
Commercial Services & Supplies - 0.7% | |||
GFL Environmental, Inc. | 266,800 | 8,632 | |
Electrical Equipment - 0.3% | |||
AMETEK, Inc. | 26,200 | 3,540 | |
Industrial Conglomerates - 2.2% | |||
General Electric Co. | 1,615,900 | 22,720 | |
Roper Technologies, Inc. | 8,700 | 3,915 | |
26,635 | |||
Machinery - 2.7% | |||
AG Growth International, Inc. | 50,200 | 1,699 | |
Allison Transmission Holdings, Inc. | 245,143 | 10,372 | |
Cummins, Inc. | 18,700 | 4,811 | |
Fortive Corp. | 49,000 | 3,553 | |
PACCAR, Inc. | 68,200 | 6,244 | |
Toro Co. | 51,200 | 5,688 | |
32,367 | |||
Professional Services - 0.9% | |||
Equifax, Inc. | 24,200 | 5,688 | |
IHS Markit Ltd. | 52,300 | 5,508 | |
11,196 | |||
Road & Rail - 2.1% | |||
Canadian Pacific Railway Ltd. | 61,500 | 4,997 | |
Knight-Swift Transportation Holdings, Inc. Class A | 119,300 | 5,694 | |
Ryder System, Inc. | 42,000 | 3,435 | |
TFI International, Inc. (Canada) | 106,700 | 10,260 | |
24,386 | |||
TOTAL INDUSTRIALS | 142,528 | ||
INFORMATION TECHNOLOGY - 24.7% | |||
Electronic Equipment & Components - 0.8% | |||
Hitachi Ltd. | 107,200 | 5,616 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1,075,000 | 4,426 | |
10,042 | |||
IT Services - 4.7% | |||
DXC Technology Co. (a) | 143,500 | 5,442 | |
Fidelity National Information Services, Inc. | 64,400 | 9,594 | |
Genpact Ltd. | 225,000 | 10,292 | |
Global Payments, Inc. | 19,600 | 3,797 | |
Visa, Inc. Class A | 118,900 | 27,026 | |
56,151 | |||
Semiconductors & Semiconductor Equipment - 6.9% | |||
Broadcom, Inc. | 34,100 | 16,106 | |
Intel Corp. | 56,900 | 3,250 | |
KLA Corp. | 25,000 | 7,922 | |
Lam Research Corp. | 16,400 | 10,658 | |
Marvell Technology, Inc. | 132,600 | 6,405 | |
NVIDIA Corp. | 24,600 | 15,985 | |
NXP Semiconductors NV | 16,100 | 3,404 | |
Qualcomm, Inc. | 33,500 | 4,507 | |
SK Hynix, Inc. | 45,800 | 5,248 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 46,400 | 5,446 | |
Universal Display Corp. | 15,100 | 3,259 | |
82,190 | |||
Software - 9.2% | |||
Intuit, Inc. | 29,600 | 12,997 | |
Microsoft Corp. | 342,600 | 85,536 | |
SAP SE | 26,000 | 3,609 | |
SS&C Technologies Holdings, Inc. | 107,300 | 7,926 | |
110,068 | |||
Technology Hardware, Storage & Peripherals - 3.1% | |||
Apple, Inc. | 183,396 | 22,853 | |
Samsung Electronics Co. Ltd. | 188,900 | 13,719 | |
36,572 | |||
TOTAL INFORMATION TECHNOLOGY | 295,023 | ||
MATERIALS - 4.5% | |||
Chemicals - 1.6% | |||
Albemarle Corp. U.S. | 20,000 | 3,342 | |
International Flavors & Fragrances, Inc. | 18,205 | 2,579 | |
LG Chemical Ltd. | 5,980 | 4,419 | |
Olin Corp. | 25,760 | 1,259 | |
The Chemours Co. LLC | 34,282 | 1,232 | |
Valvoline, Inc. | 178,200 | 5,881 | |
18,712 | |||
Metals & Mining - 2.9% | |||
Barrick Gold Corp. | 187,100 | 4,505 | |
First Quantum Minerals Ltd. | 121,000 | 2,977 | |
Freeport-McMoRan, Inc. | 151,300 | 6,464 | |
Glencore Xstrata PLC | 1,097,500 | 4,998 | |
Lundin Mining Corp. | 252,500 | 2,684 | |
Newmont Corp. | 120,800 | 8,876 | |
Vale SA sponsored ADR | 216,000 | 4,648 | |
35,152 | |||
TOTAL MATERIALS | 53,864 | ||
REAL ESTATE - 2.6% | |||
Equity Real Estate Investment Trusts (REITs) - 2.6% | |||
American Tower Corp. | 29,800 | 7,613 | |
CoreSite Realty Corp. | 29,800 | 3,613 | |
Four Corners Property Trust, Inc. | 155,500 | 4,317 | |
Simon Property Group, Inc. | 74,000 | 9,508 | |
The Macerich Co. | 341,200 | 5,428 | |
30,479 | |||
UTILITIES - 1.9% | |||
Electric Utilities - 0.4% | |||
Edison International | 94,700 | 5,291 | |
Independent Power and Renewable Electricity Producers - 0.9% | |||
NextEra Energy Partners LP | 35,100 | 2,400 | |
The AES Corp. | 322,800 | 8,202 | |
10,602 | |||
Multi-Utilities - 0.6% | |||
CenterPoint Energy, Inc. | 282,000 | 7,135 | |
TOTAL UTILITIES | 23,028 | ||
TOTAL COMMON STOCKS | |||
(Cost $880,050) | 1,194,776 | ||
Money Market Funds - 2.9% | |||
Fidelity Cash Central Fund 0.03% (d) | 5,373,595 | 5,375 | |
Fidelity Securities Lending Cash Central Fund 0.03% (d)(e) | 29,154,985 | 29,158 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $34,533) | 34,533 | ||
TOTAL INVESTMENT IN SECURITIES - 102.7% | |||
(Cost $914,583) | 1,229,309 | ||
NET OTHER ASSETS (LIABILITIES) - (2.7)% | (32,612) | ||
NET ASSETS - 100% | $1,196,697 |
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 $13,738,000 or 1.1% 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 | $1 |
Fidelity Securities Lending Cash Central Fund | 8 |
Total | $9 |
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, 2021, 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 | $90,183 | $90,183 | $-- | $-- |
Consumer Discretionary | 146,089 | 146,089 | -- | -- |
Consumer Staples | 70,943 | 65,064 | 5,879 | -- |
Energy | 57,770 | 57,770 | -- | -- |
Financials | 142,319 | 142,319 | -- | -- |
Health Care | 142,550 | 136,297 | 6,253 | -- |
Industrials | 142,528 | 142,528 | -- | -- |
Information Technology | 295,023 | 295,023 | -- | -- |
Materials | 53,864 | 48,866 | 4,998 | -- |
Real Estate | 30,479 | 30,479 | -- | -- |
Utilities | 23,028 | 23,028 | -- | -- |
Money Market Funds | 34,533 | 34,533 | -- | -- |
Total Investments in Securities: | $1,229,309 | $1,212,179 | $17,130 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 80.9% |
Canada | 5.6% |
Korea (South) | 2.1% |
Bermuda | 1.3% |
Japan | 1.2% |
India | 1.1% |
Sweden | 1.0% |
United Kingdom | 1.0% |
Others (Individually Less Than 1%) | 5.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $28,469) — See accompanying schedule: Unaffiliated issuers (cost $880,050) | $1,194,776 | |
Fidelity Central Funds (cost $34,533) | 34,533 | |
Total Investment in Securities (cost $914,583) | $1,229,309 | |
Foreign currency held at value (cost $283) | 283 | |
Receivable for investments sold | 2,004 | |
Receivable for fund shares sold | 973 | |
Dividends receivable | 1,398 | |
Distributions receivable from Fidelity Central Funds | 2 | |
Other receivables | 18 | |
Total assets | 1,233,987 | |
Liabilities | ||
Payable for investments purchased | $6,791 | |
Payable for fund shares redeemed | 452 | |
Accrued management fee | 351 | |
Distribution and service plan fees payable | 294 | |
Other affiliated payables | 201 | |
Other payables and accrued expenses | 43 | |
Collateral on securities loaned | 29,158 | |
Total liabilities | 37,290 | |
Net Assets | $1,196,697 | |
Net Assets consist of: | ||
Paid in capital | $874,804 | |
Total accumulated earnings (loss) | 321,893 | |
Net Assets | $1,196,697 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($454,352 ÷ 23,304 shares)(a) | $19.50 | |
Maximum offering price per share (100/94.25 of $19.50) | $20.69 | |
Class M: | ||
Net Asset Value and redemption price per share ($366,501 ÷ 18,914 shares)(a) | $19.38 | |
Maximum offering price per share (100/96.50 of $19.38) | $20.08 | |
Class C: | ||
Net Asset Value and offering price per share ($61,265 ÷ 3,360 shares)(a) | $18.23 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($243,716 ÷ 11,691 shares) | $20.85 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($70,863 ÷ 3,336 shares) | $21.24 |
(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, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $8,721 | |
Income from Fidelity Central Funds (including $8 from security lending) | 9 | |
Total income | 8,730 | |
Expenses | ||
Management fee | ||
Basic fee | $2,867 | |
Performance adjustment | (978) | |
Transfer agent fees | 959 | |
Distribution and service plan fees | 1,669 | |
Accounting fees | 178 | |
Custodian fees and expenses | 20 | |
Independent trustees' fees and expenses | 2 | |
Registration fees | 42 | |
Audit | 33 | |
Legal | 4 | |
Interest | 1 | |
Miscellaneous | 4 | |
Total expenses before reductions | 4,801 | |
Expense reductions | (82) | |
Total expenses after reductions | 4,719 | |
Net investment income (loss) | 4,011 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 70,687 | |
Total net realized gain (loss) | 70,687 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 140,241 | |
Assets and liabilities in foreign currencies | 5 | |
Total change in net unrealized appreciation (depreciation) | 140,246 | |
Net gain (loss) | 210,933 | |
Net increase (decrease) in net assets resulting from operations | $214,944 |
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, 2021 (Unaudited) | Year ended November 30, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $4,011 | $15,871 |
Net realized gain (loss) | 70,687 | (60,825) |
Change in net unrealized appreciation (depreciation) | 140,246 | 31,303 |
Net increase (decrease) in net assets resulting from operations | 214,944 | (13,651) |
Distributions to shareholders | (13,817) | (46,867) |
Share transactions - net increase (decrease) | 14,666 | (12,562) |
Total increase (decrease) in net assets | 215,793 | (73,080) |
Net Assets | ||
Beginning of period | 980,904 | 1,053,984 |
End of period | $1,196,697 | $980,904 |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $16.20 | $17.06 | $17.97 | $20.01 | $16.90 | $17.35 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .07 | .27 | .24B | .28 | .25 | .21 |
Net realized and unrealized gain (loss) | 3.47 | (.35) | 1.39 | .58 | 3.07 | .46 |
Total from investment operations | 3.54 | (.08) | 1.63 | .86 | 3.32 | .67 |
Distributions from net investment income | (.24) | (.25) | (.27) | (.26) | (.21) | (.18) |
Distributions from net realized gain | – | (.54) | (2.27) | (2.65) | – | (.94) |
Total distributions | (.24) | (.78)C | (2.54) | (2.90)C | (.21) | (1.12) |
Net asset value, end of period | $19.50 | $16.20 | $17.06 | $17.97 | $20.01 | $16.90 |
Total ReturnD,E,F | 22.11% | (.60)% | 12.84% | 4.69% | 19.81% | 4.36% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .83%I | .81% | .82% | .84% | .85% | .90% |
Expenses net of fee waivers, if any | .83%I | .81% | .82% | .84% | .85% | .90% |
Expenses net of all reductions | .81%I | .80% | .81% | .83% | .84% | .90% |
Net investment income (loss) | .79%I | 1.84% | 1.53%B | 1.58% | 1.36% | 1.33% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $454 | $374 | $421 | $353 | $376 | $355 |
Portfolio turnover rateJ | 61%I | 113% | 75% | 110% | 73% | 31% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.28%.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $16.08 | $16.94 | $17.85 | $19.90 | $16.81 | $17.25 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .23 | .20B | .24 | .20 | .17 |
Net realized and unrealized gain (loss) | 3.45 | (.35) | 1.39 | .57 | 3.05 | .47 |
Total from investment operations | 3.50 | (.12) | 1.59 | .81 | 3.25 | .64 |
Distributions from net investment income | (.20) | (.21) | (.23) | (.21) | (.16) | (.14) |
Distributions from net realized gain | – | (.54) | (2.27) | (2.65) | – | (.94) |
Total distributions | (.20) | (.74)C | (2.50) | (2.86) | (.16) | (1.08) |
Net asset value, end of period | $19.38 | $16.08 | $16.94 | $17.85 | $19.90 | $16.81 |
Total ReturnD,E,F | 21.99% | (.85)% | 12.59% | 4.38% | 19.50% | 4.15% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.07%I | 1.05% | 1.07% | 1.09% | 1.09% | 1.14% |
Expenses net of fee waivers, if any | 1.07%I | 1.05% | 1.07% | 1.09% | 1.09% | 1.14% |
Expenses net of all reductions | 1.06%I | 1.04% | 1.06% | 1.08% | 1.09% | 1.14% |
Net investment income (loss) | .54%I | 1.59% | 1.28%B | 1.33% | 1.11% | 1.09% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $367 | $316 | $376 | $363 | $374 | $351 |
Portfolio turnover rateJ | 61%I | 113% | 75% | 110% | 73% | 31% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.03%.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.10 | $15.92 | $16.92 | $19.00 | $16.06 | $16.53 |
Income from Investment Operations | ||||||
Net investment income (loss)A | –B | .14 | .11C | .14 | .10 | .09 |
Net realized and unrealized gain (loss) | 3.25 | (.34) | 1.29 | .54 | 2.92 | .44 |
Total from investment operations | 3.25 | (.20) | 1.40 | .68 | 3.02 | .53 |
Distributions from net investment income | (.12) | (.08) | (.14) | (.12) | (.08) | (.06) |
Distributions from net realized gain | – | (.54) | (2.27) | (2.65) | – | (.94) |
Total distributions | (.12) | (.62) | (2.40)D | (2.76)D | (.08) | (1.00) |
Net asset value, end of period | $18.23 | $15.10 | $15.92 | $16.92 | $19.00 | $16.06 |
Total ReturnE,F,G | 21.63% | (1.41)% | 11.98% | 3.86% | 18.88% | 3.58% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.62%J | 1.61% | 1.62% | 1.61% | 1.61% | 1.66% |
Expenses net of fee waivers, if any | 1.62%J | 1.61% | 1.61% | 1.61% | 1.61% | 1.66% |
Expenses net of all reductions | 1.61%J | 1.60% | 1.61% | 1.60% | 1.61% | 1.66% |
Net investment income (loss) | (.01)%J | 1.04% | .73%C | .81% | .59% | .57% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $61 | $56 | $71 | $137 | $160 | $154 |
Portfolio turnover rateK | 61%J | 113% | 75% | 110% | 73% | 31% |
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 one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .48%.
D Total distributions per share do not sum due to rounding.
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 contingent deferred sales charge.
H Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.32 | $18.18 | $18.97 | $20.97 | $17.70 | $18.12 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .10 | .32 | .29B | .34 | .30 | .26 |
Net realized and unrealized gain (loss) | 3.71 | (.36) | 1.50 | .61 | 3.21 | .49 |
Total from investment operations | 3.81 | (.04) | 1.79 | .95 | 3.51 | .75 |
Distributions from net investment income | (.28) | (.28) | (.31) | (.30) | (.24) | (.22) |
Distributions from net realized gain | – | (.54) | (2.27) | (2.65) | – | (.94) |
Total distributions | (.28) | (.82) | (2.58) | (2.95) | (.24) | (1.17)C |
Net asset value, end of period | $20.85 | $17.32 | $18.18 | $18.97 | $20.97 | $17.70 |
Total ReturnD,E | 22.27% | (.36)% | 13.13% | 4.93% | 20.07% | 4.60% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .59%H | .57% | .58% | .60% | .61% | .67% |
Expenses net of fee waivers, if any | .59%H | .57% | .58% | .60% | .61% | .67% |
Expenses net of all reductions | .58%H | .56% | .57% | .59% | .60% | .66% |
Net investment income (loss) | 1.02%H | 2.08% | 1.77%B | 1.82% | 1.59% | 1.57% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $244 | $180 | $173 | $166 | $170 | $123 |
Portfolio turnover rateI | 61%H | 113% | 75% | 110% | 73% | 31% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.52%.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.65 | $18.51 | $19.28 | $21.27 | $17.95 | $18.36 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .35 | .32B | .38 | .34 | .29 |
Net realized and unrealized gain (loss) | 3.78 | (.37) | 1.52 | .62 | 3.24 | .50 |
Total from investment operations | 3.89 | (.02) | 1.84 | 1.00 | 3.58 | .79 |
Distributions from net investment income | (.30) | (.31) | (.34) | (.34) | (.26) | (.26) |
Distributions from net realized gain | – | (.54) | (2.27) | (2.65) | – | (.94) |
Total distributions | (.30) | (.84)C | (2.61) | (2.99) | (.26) | (1.20) |
Net asset value, end of period | $21.24 | $17.65 | $18.51 | $19.28 | $21.27 | $17.95 |
Total ReturnD,E | 22.37% | (.22)% | 13.25% | 5.10% | 20.21% | 4.80% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .44%H | .41% | .43% | .45% | .45% | .49% |
Expenses net of fee waivers, if any | .44%H | .41% | .43% | .45% | .45% | .49% |
Expenses net of all reductions | .43%H | .40% | .42% | .44% | .44% | .49% |
Net investment income (loss) | 1.18%H | 2.23% | 1.92%B | 1.98% | 1.76% | 1.74% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $71 | $55 | $13 | $10 | $7 | $2 |
Portfolio turnover rateI | 61%H | 113% | 75% | 110% | 73% | 31% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.67%.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2021
(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 June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 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 | $319,521 |
Gross unrealized depreciation | (6,296) |
Net unrealized appreciation (depreciation) | $313,225 |
Tax cost | $916,084 |
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 | $(19,307) |
Long-term | (45,440) |
Total capital loss carryforward | $(64,747) |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Dividend Growth Fund | 338,365 | 329,030 |
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 .35% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors 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% | $520 | $13 |
Class M | .25% | .25% | 857 | 10 |
Class C | .75% | .25% | 292 | 27 |
$1,669 | $50 |
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 | $42 |
Class M | 5 |
Class C(a) | 1 |
$48 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $376 | .18 |
Class M | 300 | .18 |
Class C | 66 | .22 |
Class I | 203 | .19 |
Class Z | 14 | .04 |
$959 |
(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 | $7 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $8,422 | .30% | $1 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Dividend Growth Fund | 16,584 | 17,562 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Advisor Dividend Growth Fund | $1 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Dividend Growth Fund | $1 | $– | $– |
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Advisor Dividend Growth Fund | $1,189 | .59% | $–(a) |
(a) Amount represents less than $500.
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 expenses. This amount totaled $80 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 amount less than five hundred dollars 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, 2021 | Year ended November 30, 2020 | |
Distributions to shareholders | ||
Class A | $5,509 | $19,240 |
Class M | 3,924 | 16,418 |
Class C | 420 | 2,743 |
Class I | 2,927 | 7,861 |
Class Z | 1,037 | 605 |
Total | $13,817 | $46,867 |
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, 2021 | Year ended November 30, 2020 | Six months ended May 31, 2021 | Year ended November 30, 2020 | |
Class A | ||||
Shares sold | 1,489 | 2,996 | $26,695 | $42,921 |
Reinvestment of distributions | 310 | 1,076 | 5,141 | 18,007 |
Shares redeemed | (1,589) | (5,647) | (28,175) | (81,015) |
Net increase (decrease) | 210 | (1,575) | $3,661 | $(20,087) |
Class M | ||||
Shares sold | 1,333 | 3,657 | $23,630 | $51,971 |
Reinvestment of distributions | 233 | 972 | 3,856 | 16,182 |
Shares redeemed | (2,303) | (7,159) | (40,552) | (103,806) |
Net increase (decrease) | (737) | (2,530) | $(13,066) | $(35,653) |
Class C | ||||
Shares sold | 264 | 619 | $4,471 | $8,466 |
Reinvestment of distributions | 27 | 168 | 415 | 2,648 |
Shares redeemed | (612) | (1,560) | (10,162) | (21,064) |
Net increase (decrease) | (321) | (773) | $(5,276) | $(9,950) |
Class I | ||||
Shares sold | 3,754 | 4,472 | $72,129 | $69,423 |
Reinvestment of distributions | 160 | 411 | 2,841 | 7,332 |
Shares redeemed | (2,620) | (4,026) | (49,662) | (61,803) |
Net increase (decrease) | 1,294 | 857 | $25,308 | $14,952 |
Class Z | ||||
Shares sold | 1,963 | 2,916 | $38,082 | $46,126 |
Reinvestment of distributions | 51 | 30 | 917 | 545 |
Shares redeemed | (1,808) | (532) | (34,960) | (8,495) |
Net increase (decrease) | 206 | 2,414 | $4,039 | $38,176 |
12. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Dividend Growth Fund | ||||
Class A | .83% | |||
Actual | $1,000.00 | $1,221.10 | $4.60 | |
Hypothetical-C | $1,000.00 | $1,020.79 | $4.18 | |
Class M | 1.07% | |||
Actual | $1,000.00 | $1,219.90 | $5.92 | |
Hypothetical-C | $1,000.00 | $1,019.60 | $5.39 | |
Class C | 1.62% | |||
Actual | $1,000.00 | $1,216.30 | $8.95 | |
Hypothetical-C | $1,000.00 | $1,016.85 | $8.15 | |
Class I | .59% | |||
Actual | $1,000.00 | $1,222.70 | $3.27 | |
Hypothetical-C | $1,000.00 | $1,021.99 | $2.97 | |
Class Z | .44% | |||
Actual | $1,000.00 | $1,223.70 | $2.44 | |
Hypothetical-C | $1,000.00 | $1,022.74 | $2.22 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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, in the past, 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) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) 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 January 2018 and January 2021. 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 an appropriate peer group of funds with similar objectives (peer group). 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 September 30, 2020, 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/0001379491-21-003389/img711071421.jpg)
Fidelity Advisor Dividend Growth Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-003389/img711071946.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, 2019 through November 30, 2020. 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-0721
1.721239.122
Fidelity Advisor® Series Small Cap Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Crocs, Inc. | 1.9 |
Atkore, Inc. | 1.7 |
First Citizens Bancshares, Inc. | 1.6 |
EMCOR Group, Inc. | 1.5 |
Concentrix Corp. | 1.5 |
Oshkosh Corp. | 1.5 |
ConnectOne Bancorp, Inc. | 1.4 |
LPL Financial | 1.4 |
Insight Enterprises, Inc. | 1.4 |
Gray Television, Inc. | 1.4 |
15.3 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Industrials | 20.1 |
Consumer Discretionary | 16.0 |
Health Care | 15.9 |
Financials | 15.8 |
Information Technology | 13.8 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021 * | ||
Stocks | 97.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.1% |
* Foreign investments - 14.3%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 2.5% | |||
Media - 2.5% | |||
Gray Television, Inc. | 307,300 | $7,147,798 | |
TechTarget, Inc. (a) | 85,800 | 6,032,598 | |
13,180,396 | |||
CONSUMER DISCRETIONARY - 16.0% | |||
Auto Components - 2.0% | |||
Adient PLC (a) | 101,400 | 5,076,084 | |
Patrick Industries, Inc. | 63,081 | 5,406,042 | |
10,482,126 | |||
Hotels, Restaurants & Leisure - 2.2% | |||
Brinker International, Inc. (a) | 61,200 | 3,760,740 | |
Churchill Downs, Inc. | 26,900 | 5,367,357 | |
Lindblad Expeditions Holdings (a) | 129,400 | 2,202,388 | |
11,330,485 | |||
Household Durables - 3.2% | |||
Purple Innovation, Inc. (a) | 19,900 | 567,548 | |
Skyline Champion Corp. (a) | 118,591 | 6,006,634 | |
Taylor Morrison Home Corp. (a) | 121,100 | 3,586,982 | |
Tempur Sealy International, Inc. | 82,300 | 3,168,550 | |
TopBuild Corp. (a) | 17,500 | 3,465,875 | |
16,795,589 | |||
Internet & Direct Marketing Retail - 0.3% | |||
Kogan.Com Ltd. | 191,154 | 1,508,928 | |
Leisure Products - 1.8% | |||
Brunswick Corp. | 22,700 | 2,320,621 | |
Clarus Corp. | 149,390 | 3,539,049 | |
YETI Holdings, Inc. (a) | 38,900 | 3,407,640 | |
9,267,310 | |||
Specialty Retail - 4.6% | |||
American Eagle Outfitters, Inc. (b) | 128,600 | 4,556,298 | |
Boot Barn Holdings, Inc. (a) | 75,400 | 5,759,806 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 10,200 | 3,590,298 | |
Murphy U.S.A., Inc. | 38,000 | 5,122,780 | |
Musti Group OYJ | 135,079 | 5,229,642 | |
24,258,824 | |||
Textiles, Apparel & Luxury Goods - 1.9% | |||
Crocs, Inc. (a) | 99,682 | 10,091,806 | |
Figs, Inc. Class A (a) | 800 | 27,320 | |
10,119,126 | |||
TOTAL CONSUMER DISCRETIONARY | 83,762,388 | ||
CONSUMER STAPLES - 2.1% | |||
Food & Staples Retailing - 1.1% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 124,620 | 5,581,730 | |
Food Products - 1.0% | |||
Nomad Foods Ltd. (a) | 180,600 | 5,539,002 | |
TOTAL CONSUMER STAPLES | 11,120,732 | ||
ENERGY - 1.2% | |||
Oil, Gas & Consumable Fuels - 1.2% | |||
Enviva Partners LP | 42,100 | 2,058,690 | |
Hess Midstream LP | 71,999 | 1,833,815 | |
Renewable Energy Group, Inc. (a) | 42,000 | 2,564,940 | |
6,457,445 | |||
FINANCIALS - 15.8% | |||
Banks - 6.1% | |||
ConnectOne Bancorp, Inc. | 273,376 | 7,569,781 | |
First Citizens Bancshares, Inc. | 9,500 | 8,175,700 | |
First Interstate Bancsystem, Inc. | 92,900 | 4,372,803 | |
Independent Bank Corp., Massachusetts | 33,900 | 2,766,579 | |
ServisFirst Bancshares, Inc. | 72,500 | 5,035,850 | |
Trico Bancshares | 83,100 | 3,984,645 | |
31,905,358 | |||
Capital Markets - 3.1% | |||
LPL Financial | 50,400 | 7,453,152 | |
Morningstar, Inc. | 27,264 | 6,434,031 | |
Patria Investments Ltd. | 123,000 | 2,079,930 | |
15,967,113 | |||
Consumer Finance - 1.7% | |||
First Cash Financial Services, Inc. | 44,500 | 3,547,540 | |
PROG Holdings, Inc. | 96,608 | 5,093,174 | |
8,640,714 | |||
Diversified Financial Services - 0.3% | |||
Jaws Acquisition Corp. (a) | 119,900 | 1,739,749 | |
Insurance - 2.6% | |||
Enstar Group Ltd. (a) | 14,241 | 3,615,647 | |
Old Republic International Corp. | 151,300 | 3,973,138 | |
Primerica, Inc. | 38,300 | 6,212,643 | |
13,801,428 | |||
Thrifts & Mortgage Finance - 2.0% | |||
Essent Group Ltd. | 115,800 | 5,539,872 | |
WSFS Financial Corp. | 95,619 | 5,087,887 | |
10,627,759 | |||
TOTAL FINANCIALS | 82,682,121 | ||
HEALTH CARE - 15.9% | |||
Biotechnology - 5.0% | |||
Acceleron Pharma, Inc. (a) | 11,600 | 1,518,324 | |
ADC Therapeutics SA (a) | 19,518 | 422,565 | |
Agios Pharmaceuticals, Inc. (a) | 11,200 | 624,736 | |
Aurinia Pharmaceuticals, Inc. (a) | 50,500 | 733,260 | |
Avid Bioservices, Inc. (a) | 118,715 | 2,526,255 | |
Bolt Biotherapeutics, Inc. | 33,200 | 581,332 | |
Cytokinetics, Inc. (a) | 54,300 | 1,185,369 | |
FibroGen, Inc. (a) | 43,000 | 913,750 | |
Forma Therapeutics Holdings, Inc. | 23,500 | 659,645 | |
Global Blood Therapeutics, Inc. (a) | 13,800 | 530,334 | |
Instil Bio, Inc. (a) | 36,400 | 647,920 | |
Keros Therapeutics, Inc. (a) | 13,800 | 752,928 | |
Kura Oncology, Inc. (a) | 54,800 | 1,219,300 | |
Mirati Therapeutics, Inc. (a) | 11,200 | 1,771,280 | |
Novavax, Inc. (a) | 20,100 | 2,967,162 | |
Passage Bio, Inc. (a) | 34,200 | 453,150 | |
Prelude Therapeutics, Inc. | 11,965 | 415,903 | |
PTC Therapeutics, Inc. (a) | 32,400 | 1,272,348 | |
Revolution Medicines, Inc. (a) | 35,900 | 1,073,769 | |
Stoke Therapeutics, Inc. (a) | 14,093 | 558,928 | |
TG Therapeutics, Inc. (a) | 54,200 | 1,889,954 | |
Turning Point Therapeutics, Inc. (a) | 16,100 | 1,065,498 | |
Vaxcyte, Inc. | 19,900 | 419,293 | |
Xenon Pharmaceuticals, Inc. (a) | 65,200 | 1,204,244 | |
Zentalis Pharmaceuticals, Inc. (a) | 13,530 | 755,651 | |
26,162,898 | |||
Health Care Equipment & Supplies - 3.3% | |||
Axonics Modulation Technologies, Inc. (a) | 21,600 | 1,246,104 | |
BioLife Solutions, Inc. (a) | 42,200 | 1,405,682 | |
CryoPort, Inc. (a)(b) | 43,600 | 2,438,112 | |
Envista Holdings Corp. (a) | 107,900 | 4,708,756 | |
Heska Corp. (a) | 17,900 | 3,546,885 | |
Tandem Diabetes Care, Inc. (a) | 33,900 | 2,894,721 | |
TransMedics Group, Inc. (a) | 37,300 | 956,372 | |
17,196,632 | |||
Health Care Providers & Services - 4.0% | |||
Acadia Healthcare Co., Inc. (a) | 70,400 | 4,530,944 | |
Chemed Corp. | 10,700 | 5,257,338 | |
LHC Group, Inc. (a) | 15,724 | 3,095,269 | |
Signify Health, Inc. | 67,122 | 1,698,187 | |
The Ensign Group, Inc. | 48,300 | 4,018,560 | |
The Joint Corp. (a)(b) | 34,242 | 2,433,921 | |
21,034,219 | |||
Health Care Technology - 0.6% | |||
Phreesia, Inc. (a) | 61,900 | 3,064,050 | |
Life Sciences Tools & Services - 2.1% | |||
Charles River Laboratories International, Inc. (a) | 20,700 | 6,996,393 | |
Syneos Health, Inc. (a) | 46,300 | 4,069,770 | |
11,066,163 | |||
Pharmaceuticals - 0.9% | |||
Arvinas Holding Co. LLC (a) | 24,000 | 1,745,760 | |
Intra-Cellular Therapies, Inc. (a) | 28,800 | 1,135,008 | |
Nektar Therapeutics (a) | 28,500 | 514,995 | |
Terns Pharmaceuticals, Inc. | 71,097 | 1,216,470 | |
4,612,233 | |||
TOTAL HEALTH CARE | 83,136,195 | ||
INDUSTRIALS - 20.1% | |||
Aerospace & Defense - 0.5% | |||
Vectrus, Inc. (a) | 50,000 | 2,551,000 | |
Building Products - 1.8% | |||
Gibraltar Industries, Inc. (a) | 50,473 | 4,010,080 | |
Masonite International Corp. (a) | 45,100 | 5,391,705 | |
9,401,785 | |||
Commercial Services & Supplies - 1.3% | |||
Knoll, Inc. | 105,800 | 2,750,800 | |
Tetra Tech, Inc. | 32,200 | 3,846,934 | |
6,597,734 | |||
Construction & Engineering - 2.0% | |||
EMCOR Group, Inc. | 63,700 | 8,033,207 | |
Valmont Industries, Inc. | 10,900 | 2,703,200 | |
10,736,407 | |||
Electrical Equipment - 2.5% | |||
Array Technologies, Inc. | 91,788 | 1,496,144 | |
Atkore, Inc. (a) | 113,700 | 8,777,640 | |
Generac Holdings, Inc. (a) | 8,200 | 2,695,504 | |
12,969,288 | |||
Machinery - 5.0% | |||
ESCO Technologies, Inc. | 33,700 | 3,189,368 | |
ITT, Inc. | 58,900 | 5,530,710 | |
Kornit Digital Ltd. (a) | 18,900 | 1,969,380 | |
Luxfer Holdings PLC sponsored | 200,600 | 4,585,716 | |
Oshkosh Corp. | 58,200 | 7,649,808 | |
SPX Flow, Inc. | 46,210 | 3,171,392 | |
26,096,374 | |||
Professional Services - 5.3% | |||
ASGN, Inc. (a) | 38,700 | 3,989,583 | |
Booz Allen Hamilton Holding Corp. Class A | 32,900 | 2,794,197 | |
FTI Consulting, Inc. (a) | 28,100 | 3,865,155 | |
ICF International, Inc. | 31,576 | 2,775,530 | |
Insperity, Inc. | 58,800 | 5,420,772 | |
KBR, Inc. | 165,600 | 6,746,544 | |
TriNet Group, Inc. (a) | 31,200 | 2,350,608 | |
27,942,389 | |||
Road & Rail - 1.1% | |||
TFI International, Inc. | 58,300 | 5,589,804 | |
Trading Companies & Distributors - 0.6% | |||
GMS, Inc. (a) | 66,000 | 3,022,140 | |
TOTAL INDUSTRIALS | 104,906,921 | ||
INFORMATION TECHNOLOGY - 13.8% | |||
Electronic Equipment & Components - 3.2% | |||
ePlus, Inc. (a) | 28,626 | 2,707,161 | |
Insight Enterprises, Inc. (a) | 68,698 | 7,177,567 | |
Napco Security Technolgies, Inc. (a) | 67,441 | 2,194,530 | |
SYNNEX Corp. | 38,813 | 4,913,726 | |
16,992,984 | |||
IT Services - 3.6% | |||
Concentrix Corp. (a) | 51,513 | 7,867,065 | |
Endava PLC ADR (a) | 29,401 | 3,015,955 | |
Genpact Ltd. | 65,600 | 3,000,544 | |
Grid Dynamics Holdings, Inc. (a) | 147,100 | 2,260,927 | |
Repay Holdings Corp. (a) | 124,400 | 2,825,124 | |
18,969,615 | |||
Semiconductors & Semiconductor Equipment - 3.1% | |||
Advanced Energy Industries, Inc. | 37,500 | 3,825,375 | |
Entegris, Inc. | 24,700 | 2,826,915 | |
Ichor Holdings Ltd. (a) | 72,100 | 4,056,346 | |
SiTime Corp. (a) | 900 | 88,497 | |
Synaptics, Inc. (a) | 43,552 | 5,501,924 | |
16,299,057 | |||
Software - 3.9% | |||
Digital Turbine, Inc. (a) | 59,900 | 3,963,583 | |
Five9, Inc. (a) | 17,900 | 3,170,090 | |
j2 Global, Inc. (a)(b) | 43,984 | 5,477,328 | |
LivePerson, Inc. (a) | 63,200 | 3,472,840 | |
Rapid7, Inc. (a) | 49,000 | 4,098,850 | |
20,182,691 | |||
TOTAL INFORMATION TECHNOLOGY | 72,444,347 | ||
MATERIALS - 5.2% | |||
Chemicals - 2.0% | |||
Ashland Global Holdings, Inc. | 39,200 | 3,717,728 | |
Element Solutions, Inc. | 283,500 | 6,631,065 | |
10,348,793 | |||
Construction Materials - 1.2% | |||
Eagle Materials, Inc. | 42,500 | 6,237,300 | |
Containers & Packaging - 0.5% | |||
Aptargroup, Inc. | 17,500 | 2,577,925 | |
Metals & Mining - 1.5% | |||
Constellium NV (a) | 309,200 | 5,522,312 | |
ERO Copper Corp. (a) | 105,300 | 2,444,495 | |
7,966,807 | |||
TOTAL MATERIALS | 27,130,825 | ||
REAL ESTATE - 3.3% | |||
Equity Real Estate Investment Trusts (REITs) - 2.2% | |||
Americold Realty Trust | 89,700 | 3,410,394 | |
CoreSite Realty Corp. | 20,700 | 2,509,875 | |
Essential Properties Realty Trust, Inc. | 131,892 | 3,376,435 | |
Summit Industrial Income REIT | 173,300 | 2,305,881 | |
11,602,585 | |||
Real Estate Management & Development - 1.1% | |||
Cushman & Wakefield PLC (a) | 301,933 | 5,739,746 | |
TOTAL REAL ESTATE | 17,342,331 | ||
UTILITIES - 1.0% | |||
Gas Utilities - 0.5% | |||
Star Gas Partners LP | 251,478 | 2,627,945 | |
Multi-Utilities - 0.5% | |||
Telecom Plus PLC | 139,151 | 2,340,671 | |
TOTAL UTILITIES | 4,968,616 | ||
TOTAL COMMON STOCKS | |||
(Cost $319,663,066) | 507,132,317 | ||
Money Market Funds - 3.3% | |||
Fidelity Cash Central Fund 0.03% (c) | 5,891,204 | 5,892,383 | |
Fidelity Securities Lending Cash Central Fund 0.03% (c)(d) | 11,215,638 | 11,216,760 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $17,109,143) | 17,109,143 | ||
Equity Funds - 1.0% | |||
Small Blend Funds - 1.0% | |||
iShares Russell 2000 Index ETF (b) | |||
(Cost $4,482,779) | 22,900 | 5,163,950 | |
TOTAL INVESTMENT IN SECURITIES - 101.2% | |||
(Cost $341,254,988) | 529,405,410 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (6,330,698) | ||
NET ASSETS - 100% | $523,074,712 |
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) 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 |
Fidelity Cash Central Fund | $1,467 |
Fidelity Securities Lending Cash Central Fund | 13,770 |
Total | $15,237 |
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, 2021, 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 | $13,180,396 | $13,180,396 | $-- | $-- |
Consumer Discretionary | 83,762,388 | 83,762,388 | -- | -- |
Consumer Staples | 11,120,732 | 11,120,732 | -- | -- |
Energy | 6,457,445 | 6,457,445 | -- | -- |
Financials | 82,682,121 | 82,682,121 | -- | -- |
Health Care | 83,136,195 | 83,136,195 | -- | -- |
Industrials | 104,906,921 | 104,906,921 | -- | -- |
Information Technology | 72,444,347 | 72,444,347 | -- | -- |
Materials | 27,130,825 | 27,130,825 | -- | -- |
Real Estate | 17,342,331 | 17,342,331 | -- | -- |
Utilities | 4,968,616 | 4,968,616 | -- | -- |
Money Market Funds | 17,109,143 | 17,109,143 | -- | -- |
Equity Funds | 5,163,950 | 5,163,950 | -- | -- |
Total Investments in Securities: | $529,405,410 | $529,405,410 | $-- | $-- |
Net unrealized appreciation on unfunded commitments | $5,925 | $-- | $5,925 | $-- |
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 | 85.7% |
Canada | 3.3% |
United Kingdom | 3.1% |
Bermuda | 2.3% |
British Virgin Islands | 1.0% |
France | 1.0% |
Finland | 1.0% |
Ireland | 1.0% |
Others (Individually Less Than 1%) | 1.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $11,019,337) — See accompanying schedule: Unaffiliated issuers (cost $324,145,845) | $512,296,267 | |
Fidelity Central Funds (cost $17,109,143) | 17,109,143 | |
Total Investment in Securities (cost $341,254,988) | $529,405,410 | |
Foreign currency held at value (cost $24,974) | 24,975 | |
Net unrealized appreciation on unfunded commitments | 5,925 | |
Receivable for fund shares sold | 6,120,178 | |
Dividends receivable | 175,109 | |
Distributions receivable from Fidelity Central Funds | 530 | |
Total assets | 535,732,127 | |
Liabilities | ||
Payable for investments purchased | $1,316,008 | |
Payable for fund shares redeemed | 116,442 | |
Accrued management fee | 126 | |
Other payables and accrued expenses | 8,589 | |
Collateral on securities loaned | 11,216,250 | |
Total liabilities | 12,657,415 | |
Net Assets | $523,074,712 | |
Net Assets consist of: | ||
Paid in capital | $285,159,790 | |
Total accumulated earnings (loss) | 237,914,922 | |
Net Assets | $523,074,712 | |
Net Asset Value, offering price and redemption price per share ($523,074,712 ÷ 32,859,896 shares) | $15.92 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $1,586,674 | |
Income from Fidelity Central Funds (including $13,770 from security lending) | 15,237 | |
Total income | 1,601,911 | |
Expenses | ||
Custodian fees and expenses | $14,587 | |
Independent trustees' fees and expenses | 994 | |
Interest | 482 | |
Total expenses before reductions | 16,063 | |
Expense reductions | (7,005) | |
Total expenses after reductions | 9,058 | |
Net investment income (loss) | 1,592,853 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 50,528,145 | |
Fidelity Central Funds | 22 | |
Foreign currency transactions | (3,019) | |
Total net realized gain (loss) | 50,525,148 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 68,392,833 | |
Unfunded commitments | 5,925 | |
Assets and liabilities in foreign currencies | 662 | |
Total change in net unrealized appreciation (depreciation) | 68,399,420 | |
Net gain (loss) | 118,924,568 | |
Net increase (decrease) in net assets resulting from operations | $120,517,421 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2021 (Unaudited) | Year ended November 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,592,853 | $3,630,117 |
Net realized gain (loss) | 50,525,148 | 12,321,978 |
Change in net unrealized appreciation (depreciation) | 68,399,420 | 39,271,562 |
Net increase (decrease) in net assets resulting from operations | 120,517,421 | 55,223,657 |
Distributions to shareholders | (15,797,916) | (13,815,486) |
Share transactions | ||
Proceeds from sales of shares | 31,509,030 | 59,908,236 |
Reinvestment of distributions | 15,797,916 | 13,815,486 |
Cost of shares redeemed | (96,163,638) | (117,391,491) |
Net increase (decrease) in net assets resulting from share transactions | (48,856,692) | (43,667,769) |
Total increase (decrease) in net assets | 55,862,813 | (2,259,598) |
Net Assets | ||
Beginning of period | 467,211,899 | 469,471,497 |
End of period | $523,074,712 | $467,211,899 |
Other Information | ||
Shares | ||
Sold | 2,082,165 | 5,657,093 |
Issued in reinvestment of distributions | 1,196,812 | 1,196,146 |
Redeemed | (6,695,694) | (10,636,521) |
Net increase (decrease) | (3,416,717) | (3,783,282) |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.88 | $11.72 | $11.41 | $12.72 | $10.93 | $11.26 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .09 | .09 | .10 | .08 | .09B |
Net realized and unrealized gain (loss) | 3.43 | 1.42 | 1.32 | (.58) | 1.81 | .10 |
Total from investment operations | 3.48 | 1.51 | 1.41 | (.48) | 1.89 | .19 |
Distributions from net investment income | (.12) | (.07) | (.11)C | (.07) | (.10) | (.03) |
Distributions from net realized gain | (.32) | (.28) | (.99)C | (.76) | – | (.50) |
Total distributions | (.44) | (.35) | (1.10) | (.83) | (.10) | (.52)D |
Net asset value, end of period | $15.92 | $12.88 | $11.72 | $11.41 | $12.72 | $10.93 |
Total ReturnE,F | 27.70% | 13.21% | 15.27% | (4.02)% | 17.37% | 1.96% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .01%I | .01% | .01% | .01% | .41% | .97% |
Expenses net of fee waivers, if any | - %I,J | .01% | .01% | .01% | .41% | .97% |
Expenses net of all reductions | - %I,J | .01% | .01% | - %J | .40% | .97% |
Net investment income (loss) | .63%I | .85% | .89% | .83% | .72% | .85%B |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $523,075 | $467,212 | $469,471 | $441,154 | $463,095 | $451,368 |
Portfolio turnover rateK | 62%I | 58% | 76% | 82% | 88% | 90% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.05 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .40%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount represents less than .005%.
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2021
1. Organization.
Fidelity Advisor Series Small Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. Shares are offered only to certain other Fidelity funds and Fidelity managed 529 plans. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 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 | $197,959,206 |
Gross unrealized depreciation | (9,819,368) |
Net unrealized appreciation (depreciation) | $188,139,838 |
Tax cost | $341,265,572 |
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Series Small Cap Fund | 150,106,694 | 220,547,707 |
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 | $4,914 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 Small Cap Fund | Borrower | $11,333,600 | .31% | $482 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Series Small Cap Fund | 7,583,812 | 11,930,082 |
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 commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Series Small Cap Fund | $935 | $– | $– |
8. Expense Reductions.
The investment adviser contractually agreed to reimburse the Fund to the extent annual operating expenses exceeded .003% of average net assets. This reimbursement will remain in place through March 31, 2024. Some expenses, for example the compensation of the independent Trustees, and certain other expenses such as interest expense, are excluded from this reimbursement. During the period this reimbursement reduced the Fund's expenses by $7,005.
9. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Series Small Cap Fund | - %-C | |||
Actual | $1,000.00 | $1,277.00 | $--D | |
Hypothetical-E | $1,000.00 | $1,024.93 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C Amount represents less than .005%.
D Amount represents less than $.005.
E 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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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 and 529 plans managed by Fidelity and ultimately to enhance the performance of those investment companies and 529 plans. 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 change.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, but that FMR receives fees for providing services to funds that invest in the fund. The Board noted that FMR or an affiliate undertakes to pay all operating expenses of the fund, except transfer agent fees, 12b-1 fees, Independent Trustee fees and expenses, custodian fees and expenses, proxy and shareholder meeting expenses, interest, taxes, and extraordinary expenses (such as litigation expenses). The Board further noted that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program, if applicable.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 0.003% through March 31, 2024.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.A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The 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 certain fund profitability information and its conformity to established allocation methodologies. After considering the 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 considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board also considered that in 2019 a joint ad hoc committee created by it and the boards of other Fidelity funds evaluated potential fall-out benefits (PFOB Committee). The Board noted that it considered the PFOB Committee's findings in connection with its consideration of the renewal of the Advisory Contracts.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 expanding the use of performance fees for additional funds; (iii) Fidelity's pricing philosophy compared to competitors; (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 and expense comparisons; (vi) the expense structures for different funds and classes and information about the differences between various expense structures; (vii) group fee breakpoints; (viii) information regarding other accounts managed by Fidelity and sub-advisory arrangements; and (ix) 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, 2019 through November 30, 2020. 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-0721
1.967944.107
Fidelity Advisor® Series Growth Opportunities Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Microsoft Corp. | 6.5 |
Alphabet, Inc. Class C | 4.7 |
Amazon.com, Inc. | 4.5 |
Apple, Inc. | 3.5 |
Facebook, Inc. Class A | 3.3 |
Sea Ltd. ADR | 2.4 |
NVIDIA Corp. | 2.3 |
Salesforce.com, Inc. | 1.8 |
T-Mobile U.S., Inc. | 1.7 |
UnitedHealth Group, Inc. | 1.7 |
32.4 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Information Technology | 35.7 |
Communication Services | 20.0 |
Health Care | 15.2 |
Consumer Discretionary | 15.2 |
Industrials | 3.8 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021* | ||
Stocks | 95.9% | |
Convertible Securities | 2.8% | |
Other Investments | 1.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 14.9%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 20.0% | |||
Entertainment - 5.5% | |||
Activision Blizzard, Inc. | 1,808 | $175,828 | |
Netflix, Inc. (a) | 22,400 | 11,262,944 | |
Roku, Inc. Class A (a) | 30,931 | 10,724,087 | |
Sea Ltd. ADR (a) | 76,031 | 19,254,090 | |
Spotify Technology SA (a) | 3,200 | 773,024 | |
The Walt Disney Co. (a) | 8,864 | 1,583,554 | |
43,773,527 | |||
Interactive Media & Services - 11.4% | |||
Alphabet, Inc.: | |||
Class A (a) | 5,523 | 13,016,883 | |
Class C (a) | 15,463 | 37,289,952 | |
Facebook, Inc. Class A (a) | 81,300 | 26,725,749 | |
IAC (a) | 4,026 | 642,026 | |
JOYY, Inc. ADR | 16,800 | 1,292,760 | |
Match Group, Inc. (a) | 8,606 | 1,233,928 | |
MediaAlpha, Inc. Class A | 8,800 | 372,416 | |
Snap, Inc. Class A (a) | 88,900 | 5,522,468 | |
Vimeo, Inc. (a) | 5,562 | 233,604 | |
Zoominfo Technologies, Inc. | 122,000 | 5,347,260 | |
91,677,046 | |||
Media - 1.4% | |||
Comcast Corp. Class A | 64,119 | 3,676,583 | |
Magnite, Inc. (a)(b) | 185,100 | 5,497,470 | |
TechTarget, Inc. (a) | 28,700 | 2,017,897 | |
11,191,950 | |||
Wireless Telecommunication Services - 1.7% | |||
T-Mobile U.S., Inc. | 95,996 | 13,578,634 | |
TOTAL COMMUNICATION SERVICES | 160,221,157 | ||
CONSUMER DISCRETIONARY - 14.3% | |||
Automobiles - 1.6% | |||
Arrival Group (c) | 65,104 | 1,186,878 | |
Lordstown Motors Corp. (c) | 41,185 | 366,958 | |
Neutron Holdings, Inc. (d) | 77,208 | 1,058 | |
Rad Power Bikes, Inc. (c)(d) | 13,874 | 66,926 | |
Tesla, Inc. (a) | 18,205 | 11,382,130 | |
13,003,950 | |||
Diversified Consumer Services - 0.2% | |||
Arco Platform Ltd. Class A (a)(b) | 27,845 | 809,176 | |
FSN E-Commerce Ventures Pvt Ltd. (c)(d) | 3,374 | 500,935 | |
1,310,111 | |||
Hotels, Restaurants & Leisure - 0.4% | |||
Airbnb, Inc. Class A | 15,900 | 2,232,360 | |
Penn National Gaming, Inc. (a) | 3,400 | 278,698 | |
Rush Street Interactive, Inc. (c) | 19,900 | 246,959 | |
2,758,017 | |||
Household Durables - 0.5% | |||
Lovesac (a) | 2,300 | 190,946 | |
Purple Innovation, Inc. (a) | 123,400 | 3,519,368 | |
3,710,314 | |||
Internet & Direct Marketing Retail - 8.5% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 31,208 | 6,677,264 | |
Amazon.com, Inc. (a) | 11,111 | 35,811,531 | |
Deliveroo Holdings PLC (a)(e) | 204,900 | 731,829 | |
Doordash, Inc. (b) | 5,100 | 766,428 | |
Farfetch Ltd. Class A (a) | 13,400 | 620,822 | |
Global-e Online Ltd. (a)(b) | 54,436 | 1,788,767 | |
Meituan Class B (a)(e) | 79,800 | 3,022,786 | |
Pinduoduo, Inc. ADR (a) | 72,064 | 8,999,352 | |
Porch Group, Inc. Class A (a) | 48,700 | 833,744 | |
thredUP, Inc. (a) | 2,800 | 66,052 | |
Wayfair LLC Class A (a) | 27,686 | 8,486,866 | |
Zomato Pvt Ltd. (c)(d) | 388,600 | 311,921 | |
68,117,362 | |||
Leisure Products - 0.4% | |||
Peloton Interactive, Inc. Class A (a) | 27,100 | 2,989,401 | |
Specialty Retail - 2.0% | |||
Academy Sports & Outdoors, Inc. | 7,500 | 273,975 | |
American Eagle Outfitters, Inc. | 6,800 | 240,924 | |
Auto1 Group SE (e) | 29,000 | 1,557,165 | |
Carvana Co. Class A (a)(b) | 48,962 | 12,979,337 | |
Cazoo Holdings Ltd. (c) | 5,386 | 164,387 | |
Shift Technologies, Inc. Class A (a)(b) | 131,500 | 931,020 | |
16,146,808 | |||
Textiles, Apparel & Luxury Goods - 0.7% | |||
Allbirds, Inc. (a)(c)(d) | 4,490 | 48,402 | |
Bombas LLC (c)(d) | 158,738 | 701,539 | |
Capri Holdings Ltd. (a) | 8,300 | 470,693 | |
Deckers Outdoor Corp. (a) | 800 | 268,352 | |
Figs, Inc. Class A (a) | 1,200 | 40,980 | |
lululemon athletica, Inc. (a) | 12,301 | 3,974,822 | |
Paymentus Holdings, Inc. (a) | 1,400 | 42,700 | |
Tapestry, Inc. (a) | 6,900 | 309,741 | |
5,857,229 | |||
TOTAL CONSUMER DISCRETIONARY | 113,893,192 | ||
CONSUMER STAPLES - 1.3% | |||
Food & Staples Retailing - 0.9% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 51,500 | 2,306,685 | |
Blink Health, Inc. Series A1 (c)(d) | 1,597 | 52,126 | |
Costco Wholesale Corp. | 11,600 | 4,387,932 | |
Oatly Group AB ADR (a) | 8,500 | 201,535 | |
Sweetgreen, Inc. warrants 1/21/26 (a)(c)(d) | 13,663 | 53,969 | |
7,002,247 | |||
Food Products - 0.4% | |||
AppHarvest, Inc. (a)(b) | 46,200 | 769,230 | |
AppHarvest, Inc. (c) | 117,259 | 1,854,744 | |
Beyond Meat, Inc. (a)(b) | 3,615 | 525,693 | |
3,149,667 | |||
Tobacco - 0.0% | |||
JUUL Labs, Inc. Class B (a)(c)(d) | 709 | 39,626 | |
TOTAL CONSUMER STAPLES | 10,191,540 | ||
ENERGY - 1.6% | |||
Oil, Gas & Consumable Fuels - 1.6% | |||
Reliance Industries Ltd. | 27,892 | 468,293 | |
Reliance Industries Ltd. | 399,989 | 11,915,528 | |
12,383,821 | |||
FINANCIALS - 2.4% | |||
Banks - 0.6% | |||
Wells Fargo & Co. | 103,723 | 4,845,939 | |
Capital Markets - 0.2% | |||
Coinbase Global, Inc. (a) | 400 | 94,616 | |
XP, Inc. Class A (a) | 26,900 | 1,066,854 | |
1,161,470 | |||
Consumer Finance - 0.8% | |||
Capital One Financial Corp. | 14,100 | 2,266,998 | |
LendingTree, Inc. (a) | 19,997 | 4,104,384 | |
6,371,382 | |||
Diversified Financial Services - 0.6% | |||
Deerfield Healthcare Technology Acquisitions Corp. Class A (a)(b) | 72,912 | 936,919 | |
Flywire Corp. (a) | 16,239 | 557,647 | |
Jaws Acquisition Corp. (a) | 41,524 | 602,513 | |
Northern Star Acquisition Corp. Class A (b) | 33,000 | 368,610 | |
Social Finance, Inc. (c) | 70,354 | 1,275,870 | |
TS Innovation Acquisitions Corp. (a)(b) | 40,000 | 428,400 | |
View, Inc. (c) | 47,232 | 355,374 | |
4,525,333 | |||
Insurance - 0.2% | |||
Goosehead Insurance | 9,000 | 808,830 | |
Palomar Holdings, Inc. (a)(b) | 8,700 | 635,100 | |
Trupanion, Inc. (a)(b) | 5,400 | 486,918 | |
1,930,848 | |||
TOTAL FINANCIALS | 18,834,972 | ||
HEALTH CARE - 15.2% | |||
Biotechnology - 5.3% | |||
AbbVie, Inc. | 22,100 | 2,501,720 | |
ADC Therapeutics SA (a) | 9,700 | 210,005 | |
Agios Pharmaceuticals, Inc. (a) | 33,500 | 1,868,630 | |
Alnylam Pharmaceuticals, Inc. (a) | 20,463 | 2,905,541 | |
Applied Therapeutics, Inc. (a) | 16,300 | 313,449 | |
Arcutis Biotherapeutics, Inc. (a) | 7,800 | 205,530 | |
Argenx SE ADR (a) | 5,171 | 1,442,657 | |
Ascendis Pharma A/S sponsored ADR (a) | 8,116 | 1,090,628 | |
Aurinia Pharmaceuticals, Inc. (a) | 47,700 | 692,604 | |
Crinetics Pharmaceuticals, Inc. (a) | 16,439 | 288,504 | |
Cullinan Oncology, Inc. | 2,900 | 86,217 | |
Cytokinetics, Inc. (a) | 20,700 | 451,881 | |
Exelixis, Inc. (a) | 33,035 | 744,939 | |
Forma Therapeutics Holdings, Inc. | 9,800 | 275,086 | |
Fusion Pharmaceuticals, Inc. (a) | 8,800 | 72,248 | |
Generation Bio Co. | 5,400 | 185,004 | |
Gritstone Bio, Inc. (a) | 37,543 | 345,396 | |
Instil Bio, Inc. (a) | 29,400 | 523,320 | |
Keros Therapeutics, Inc. (a) | 9,900 | 540,144 | |
Kura Oncology, Inc. (a) | 8,600 | 191,350 | |
Mirati Therapeutics, Inc. (a) | 6,500 | 1,027,975 | |
Moderna, Inc. (a) | 9,500 | 1,757,595 | |
Morphic Holding, Inc. (a) | 17,000 | 839,120 | |
Neurocrine Biosciences, Inc. (a) | 46,136 | 4,439,206 | |
Novavax, Inc. (a) | 27,200 | 4,015,264 | |
ORIC Pharmaceuticals, Inc. (a) | 4,000 | 91,400 | |
Passage Bio, Inc. (a) | 13,100 | 173,575 | |
Poseida Therapeutics, Inc. (a) | 3,100 | 26,195 | |
Prelude Therapeutics, Inc. | 13,600 | 472,736 | |
Protagonist Therapeutics, Inc. (a) | 16,800 | 589,848 | |
PTC Therapeutics, Inc. (a) | 1,500 | 58,905 | |
Regeneron Pharmaceuticals, Inc. (a) | 17,024 | 8,553,368 | |
Relay Therapeutics, Inc. (a) | 18,500 | 594,220 | |
Repare Therapeutics, Inc. | 1,200 | 38,784 | |
Revolution Medicines, Inc. (a) | 17,300 | 517,443 | |
Sage Therapeutics, Inc. (a) | 1,797 | 125,071 | |
Sarepta Therapeutics, Inc. (a) | 21,147 | 1,599,771 | |
TG Therapeutics, Inc. (a) | 15,800 | 550,946 | |
Translate Bio, Inc. (a) | 29,100 | 524,091 | |
Vaxcyte, Inc. | 17,702 | 372,981 | |
Zentalis Pharmaceuticals, Inc. (a) | 20,200 | 1,128,170 | |
Zymeworks, Inc. (a) | 5,800 | 180,960 | |
42,612,477 | |||
Health Care Equipment & Supplies - 3.6% | |||
Boston Scientific Corp. (a) | 153,212 | 6,519,171 | |
Danaher Corp. | 9,900 | 2,535,786 | |
DexCom, Inc. (a) | 6,715 | 2,480,454 | |
Hologic, Inc. (a) | 26,100 | 1,645,866 | |
Insulet Corp. (a) | 12,945 | 3,490,878 | |
JEOL Ltd. | 1,700 | 87,259 | |
Novocure Ltd. (a) | 18,376 | 3,748,704 | |
Penumbra, Inc. (a) | 15,695 | 3,909,781 | |
TransMedics Group, Inc. (a)(b) | 155,799 | 3,994,686 | |
ViewRay, Inc. (a) | 23,800 | 139,944 | |
28,552,529 | |||
Health Care Providers & Services - 4.9% | |||
1Life Healthcare, Inc. (a) | 137,716 | 5,095,492 | |
Alignment Healthcare, Inc. (a) | 31,600 | 797,268 | |
Centene Corp. (a) | 56,557 | 4,162,595 | |
Cigna Corp. | 12,936 | 3,348,484 | |
Clover Health Investments Corp. (c) | 11,000 | 84,040 | |
Clover Health Investments Corp. Class B | 131,124 | 951,698 | |
Humana, Inc. | 18,993 | 8,313,236 | |
Oak Street Health, Inc. (a) | 49,300 | 2,977,227 | |
UnitedHealth Group, Inc. | 32,523 | 13,396,874 | |
39,126,914 | |||
Health Care Technology - 0.4% | |||
agilon health, Inc. (a) | 48,400 | 1,739,496 | |
GoodRx Holdings, Inc. (b) | 25,300 | 938,883 | |
Inspire Medical Systems, Inc. (a) | 4,600 | 893,780 | |
3,572,159 | |||
Life Sciences Tools & Services - 0.3% | |||
10X Genomics, Inc. (a) | 1,260 | 226,800 | |
Maravai LifeSciences Holdings, Inc. | 24,200 | 908,468 | |
Sartorius Stedim Biotech | 2,777 | 1,203,491 | |
2,338,759 | |||
Pharmaceuticals - 0.7% | |||
Horizon Therapeutics PLC (a) | 11,100 | 1,017,426 | |
IMARA, Inc. (a) | 41,700 | 303,159 | |
Intra-Cellular Therapies, Inc. (a) | 5,600 | 220,696 | |
Nabriva Therapeutics PLC (a)(b) | 23,635 | 32,616 | |
Nabriva Therapeutics PLC warrants 6/1/22 (a) | 380,833 | 4 | |
Nektar Therapeutics (a) | 75,803 | 1,369,760 | |
Nuvation Bio, Inc. (c) | 65,294 | 882,057 | |
Nuvation Bio, Inc. | 37,476 | 506,263 | |
Terns Pharmaceuticals, Inc. | 20,170 | 345,109 | |
Theravance Biopharma, Inc. (a) | 40,498 | 699,805 | |
5,376,895 | |||
TOTAL HEALTH CARE | 121,579,733 | ||
INDUSTRIALS - 3.1% | |||
Aerospace & Defense - 0.0% | |||
Space Exploration Technologies Corp. Class A (a)(c)(d) | 300 | 125,997 | |
Air Freight & Logistics - 0.3% | |||
InPost SA | 104,200 | 2,087,920 | |
Building Products - 0.2% | |||
The AZEK Co., Inc. | 30,600 | 1,332,018 | |
Electrical Equipment - 0.6% | |||
Sunrun, Inc. (a) | 67,488 | 3,018,063 | |
Vestas Wind Systems A/S | 48,090 | 1,872,471 | |
4,890,534 | |||
Marine - 0.0% | |||
Star Bulk Carriers Corp. | 3,900 | 76,089 | |
Road & Rail - 2.0% | |||
Lyft, Inc. (a) | 105,356 | 6,014,774 | |
TuSimple Holdings, Inc. (a) | 15,500 | 594,270 | |
Uber Technologies, Inc. (a) | 192,920 | 9,806,124 | |
16,415,168 | |||
TOTAL INDUSTRIALS | 24,927,726 | ||
INFORMATION TECHNOLOGY - 35.3% | |||
Communications Equipment - 0.3% | |||
Lumentum Holdings, Inc. (a) | 25,100 | 2,042,387 | |
Electronic Equipment & Components - 0.4% | |||
Flex Ltd. (a) | 66,009 | 1,205,984 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 19,000 | 78,228 | |
Jabil, Inc. | 32,800 | 1,851,560 | |
3,135,772 | |||
IT Services - 5.8% | |||
Affirm Holdings, Inc.(b) | 1,800 | 109,458 | |
Afterpay Ltd. (a) | 8,219 | 590,144 | |
EPAM Systems, Inc. (a) | 2,253 | 1,076,033 | |
Global Payments, Inc. | 13,825 | 2,678,041 | |
GoDaddy, Inc. (a) | 85,098 | 6,889,534 | |
MasterCard, Inc. Class A | 8,647 | 3,117,935 | |
MongoDB, Inc. Class A (a) | 7,554 | 2,205,315 | |
Nuvei Corp. (e) | 43,900 | 3,301,411 | |
PayPal Holdings, Inc. (a) | 17,815 | 4,632,256 | |
Repay Holdings Corp. (a) | 50,600 | 1,149,126 | |
Snowflake Computing, Inc. | 1,775 | 422,503 | |
Square, Inc. (a) | 23,900 | 5,318,228 | |
Twilio, Inc. Class A (a) | 12,019 | 4,038,384 | |
Visa, Inc. Class A | 14,387 | 3,270,165 | |
Wix.com Ltd. (a) | 29,568 | 7,683,540 | |
46,482,073 | |||
Semiconductors & Semiconductor Equipment - 7.8% | |||
Applied Materials, Inc. | 49,562 | 6,845,999 | |
Cirrus Logic, Inc. (a) | 2,300 | 179,561 | |
Enphase Energy, Inc. (a) | 7,200 | 1,029,960 | |
Lam Research Corp. | 8,566 | 5,566,615 | |
Marvell Technology, Inc. | 68,475 | 3,307,343 | |
Micron Technology, Inc. (a) | 109,137 | 9,182,787 | |
NVIDIA Corp. | 27,888 | 18,121,065 | |
NXP Semiconductors NV | 52,728 | 11,147,754 | |
ON Semiconductor Corp. (a) | 84,095 | 3,367,164 | |
Semtech Corp. (a) | 3,500 | 220,500 | |
SolarEdge Technologies, Inc. (a) | 9,338 | 2,409,297 | |
SunPower Corp. (a)(b) | 2,100 | 49,119 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 5,900 | 692,424 | |
62,119,588 | |||
Software - 17.1% | |||
ACV Auctions, Inc. | 98,510 | 2,298,041 | |
ACV Auctions, Inc. Class A (a) | 34,436 | 892,581 | |
Adobe, Inc. (a) | 13,909 | 7,018,203 | |
Alkami Technology, Inc. (a) | 400 | 13,308 | |
Alkami Technology, Inc. | 37,790 | 1,131,546 | |
Alteryx, Inc. Class A (a)(b) | 700 | 54,439 | |
Anaplan, Inc. (a) | 43,600 | 2,245,836 | |
Autodesk, Inc. (a) | 9,035 | 2,582,745 | |
BTRS Holdings, Inc. (c) | 65,083 | 930,687 | |
Ceridian HCM Holding, Inc. (a) | 25,700 | 2,299,122 | |
Cloudflare, Inc. (a) | 11,900 | 976,514 | |
Coupa Software, Inc. (a) | 5,477 | 1,304,621 | |
Digital Turbine, Inc. (a) | 53,600 | 3,546,712 | |
DocuSign, Inc. (a) | 3,161 | 637,321 | |
DoubleVerify Holdings, Inc. (a) | 35,700 | 1,316,973 | |
DoubleVerify Holdings, Inc. | 44,033 | 1,461,940 | |
Dynatrace, Inc. (a) | 131,011 | 6,778,509 | |
Elastic NV (a) | 16,764 | 1,981,672 | |
Epic Games, Inc. (c)(d) | 2,200 | 1,947,000 | |
Everbridge, Inc. (a)(b) | 1,300 | 152,750 | |
fuboTV, Inc. (a)(b) | 70,500 | 1,673,670 | |
HubSpot, Inc. (a) | 10,076 | 5,082,133 | |
Intuit, Inc. | 10,186 | 4,472,571 | |
Lightspeed POS, Inc. (Canada) (a) | 74,287 | 5,399,502 | |
Microsoft Corp. | 206,529 | 51,566,167 | |
Olo, Inc. (a) | 2,900 | 98,165 | |
RingCentral, Inc. (a) | 2,301 | 603,943 | |
Salesforce.com, Inc. (a) | 60,282 | 14,353,144 | |
ServiceNow, Inc. (a) | 7,718 | 3,657,406 | |
Stripe, Inc. Class B (a)(c)(d) | 2,500 | 100,313 | |
Technology One Ltd. | 11,334 | 80,697 | |
The Trade Desk, Inc. (a) | 2,123 | 1,248,621 | |
Viant Technology, Inc. (b) | 44,407 | 1,296,240 | |
Volue A/S | 44,500 | 276,667 | |
Workday, Inc. Class A (a) | 11,561 | 2,644,232 | |
Zendesk, Inc. (a) | 5,100 | 696,966 | |
Zoom Video Communications, Inc. Class A (a) | 12,100 | 4,011,513 | |
Zuora, Inc. (a) | 9,600 | 148,512 | |
136,980,982 | |||
Technology Hardware, Storage & Peripherals - 3.9% | |||
Apple, Inc. | 227,872 | 28,395,130 | |
Samsung Electronics Co. Ltd. | 44,240 | 3,212,941 | |
31,608,071 | |||
TOTAL INFORMATION TECHNOLOGY | 282,368,873 | ||
MATERIALS - 0.8% | |||
Chemicals - 0.0% | |||
Corbion NV | 4,300 | 250,293 | |
Metals & Mining - 0.8% | |||
First Quantum Minerals Ltd. | 36,700 | 903,057 | |
Freeport-McMoRan, Inc. | 122,000 | 5,211,840 | |
6,114,897 | |||
TOTAL MATERIALS | 6,365,190 | ||
UTILITIES - 1.8% | |||
Electric Utilities - 1.1% | |||
Edison International | 39,902 | 2,229,325 | |
FirstEnergy Corp. | 30,900 | 1,171,419 | |
NextEra Energy, Inc. | 19,640 | 1,438,041 | |
ORSTED A/S (e) | 26,763 | 4,060,887 | |
8,899,672 | |||
Independent Power and Renewable Electricity Producers - 0.7% | |||
Brookfield Renewable Corp. | 12,050 | 510,652 | |
NextEra Energy Partners LP | 55,000 | 3,760,350 | |
The AES Corp. | 63,100 | 1,603,371 | |
5,874,373 | |||
TOTAL UTILITIES | 14,774,045 | ||
TOTAL COMMON STOCKS | |||
(Cost $383,269,354) | 765,540,249 | ||
Preferred Stocks - 2.9% | |||
Convertible Preferred Stocks - 2.8% | |||
COMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Starry, Inc. Series D (a)(c)(d) | 74,400 | 124,992 | |
CONSUMER DISCRETIONARY - 0.8% | |||
Automobiles - 0.5% | |||
Bird Rides, Inc. (c) | 69,970 | 523,141 | |
Rad Power Bikes, Inc.: | |||
Series A (c)(d) | 1,809 | 8,726 | |
Series C (c)(d) | 7,117 | 34,331 | |
Rivian Automotive, Inc.: | |||
Series E (c)(d) | 73,370 | 2,703,685 | |
Series F (c)(d) | 9,512 | 350,517 | |
3,620,400 | |||
Internet & Direct Marketing Retail - 0.3% | |||
GoBrands, Inc. Series G (c)(d) | 2,400 | 599,322 | |
Instacart, Inc.: | |||
Series H (c)(d) | 10,566 | 1,320,750 | |
Series I (c)(d) | 3,119 | 389,875 | |
2,309,947 | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (a)(c)(d) | 1,770 | 19,081 | |
Series B (a)(c)(d) | 310 | 3,342 | |
Series C (a)(c)(d) | 2,980 | 32,124 | |
Series Seed (a)(c)(d) | 950 | 10,241 | |
64,788 | |||
TOTAL CONSUMER DISCRETIONARY | 5,995,135 | ||
CONSUMER STAPLES - 0.7% | |||
Food & Staples Retailing - 0.1% | |||
Blink Health, Inc. Series C (a)(c)(d) | 14,838 | 484,312 | |
Sweetgreen, Inc.: | |||
Series C (a)(c)(d) | 322 | 4,234 | |
Series D (a)(c)(d) | 5,177 | 68,078 | |
Series I (a)(c)(d) | 12,201 | 160,443 | |
Series J (c)(d) | 13,663 | 179,668 | |
896,735 | |||
Food Products - 0.1% | |||
Bowery Farming, Inc. Series C1 (c)(d) | 13,745 | 828,127 | |
Tobacco - 0.5% | |||
JUUL Labs, Inc.: | |||
Series C (a)(c)(d) | 70,175 | 3,922,081 | |
Series D (a)(c)(d) | 938 | 52,425 | |
3,974,506 | |||
TOTAL CONSUMER STAPLES | 5,699,368 | ||
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Sonder Holdings, Inc.: | |||
Series D1 (c) | 15,672 | 221,582 | |
Series E (a)(c) | 48,893 | 691,286 | |
912,868 | |||
INDUSTRIALS - 0.7% | |||
Aerospace & Defense - 0.4% | |||
Relativity Space, Inc. Series E (c)(d) | 36,263 | 828,069 | |
Space Exploration Technologies Corp.: | |||
Series I (a)(c)(d) | 3,290 | 1,381,767 | |
Series N (c)(d) | 2,559 | 1,074,754 | |
3,284,590 | |||
Construction & Engineering - 0.1% | |||
Beta Technologies, Inc. Series A (c)(d) | 15,188 | 1,112,825 | |
Road & Rail - 0.2% | |||
Convoy, Inc. Series D (a)(c)(d) | 93,888 | 1,209,277 | |
Transportation Infrastructure - 0.0% | |||
Delhivery Pvt Ltd. Series H (c)(d) | 358 | 176,017 | |
TOTAL INDUSTRIALS | 5,782,709 | ||
INFORMATION TECHNOLOGY - 0.4% | |||
Communications Equipment - 0.0% | |||
Xsight Labs Ltd. Series D (c)(d) | 17,400 | 139,130 | |
Electronic Equipment & Components - 0.1% | |||
Enevate Corp. Series E (c)(d) | 285,844 | 316,911 | |
IT Services - 0.2% | |||
ByteDance Ltd. Series E1 (c)(d) | 4,644 | 508,862 | |
Yanka Industries, Inc.: | |||
Series E (c)(d) | 19,716 | 628,483 | |
Series F (c)(d) | 13,160 | 419,499 | |
1,556,844 | |||
Semiconductors & Semiconductor Equipment - 0.0% | |||
SiMa Ai Series B (c)(d) | 40,700 | 208,685 | |
Tenstorrent, Inc. Series C1 (c)(d) | 1,200 | 71,345 | |
280,030 | |||
Software - 0.1% | |||
Databricks, Inc. Series G (c)(d) | 2,200 | 390,209 | |
Stripe, Inc. Series H (c)(d) | 1,100 | 44,138 | |
Thoughtworks, Inc. Series A (c)(d) | 500 | 280,721 | |
715,068 | |||
TOTAL INFORMATION TECHNOLOGY | 3,007,983 | ||
MATERIALS - 0.1% | |||
Metals & Mining - 0.1% | |||
Diamond Foundry, Inc. Series C (c)(d) | 23,194 | 556,656 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 22,079,711 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
COMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Starry, Inc. Series E1 (c)(d) | 219,074 | 368,044 | |
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc. Series 1C (c)(d) | 1,387,600 | 19,010 | |
Waymo LLC Series A2 (c)(d) | 2,896 | 248,671 | |
267,681 | |||
Specialty Retail - 0.1% | |||
Cazoo Holdings Ltd.: | |||
Series A (c) | 176 | 5,372 | |
Series B (c) | 3,078 | 93,944 | |
Series C (c) | 62 | 1,892 | |
Series D (c) | 10,997 | 335,642 | |
436,850 | |||
TOTAL CONSUMER DISCRETIONARY | 704,531 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 1,072,575 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $15,150,609) | 23,152,286 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
4% 5/22/27 (c)(d) | 47,700 | 47,700 | |
4% 6/12/27 (c)(d) | 13,100 | 13,100 | |
TOTAL CONVERTIBLE BONDS | |||
(Cost $60,800) | 60,800 | ||
Preferred Securities - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Internet & Direct Marketing Retail - 0.1% | |||
Circle Internet Financial Ltd. 0% (c)(d)(f) | 864,100 | 864,100 | |
INFORMATION TECHNOLOGY - 0.0% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. 0% 1/29/23 (c)(d) | 121,700 | 121,700 | |
Semiconductors & Semiconductor Equipment - 0.0% | |||
Tenstorrent, Inc. 0% (c)(d)(f) | 63,300 | 63,300 | |
TOTAL INFORMATION TECHNOLOGY | 185,000 | ||
TOTAL PREFERRED SECURITIES | |||
(Cost $1,049,100) | 1,049,100 | ||
Shares | Value | ||
Money Market Funds - 2.9% | |||
Fidelity Securities Lending Cash Central Fund 0.03% (g)(h) | |||
(Cost $22,992,048) | 22,989,749 | 22,992,048 | |
Equity Funds - 1.0% | |||
Domestic Equity Funds - 1.0% | |||
iShares Russell 1000 Growth Index ETF | |||
(Cost $8,274,725) | 32,300 | 8,273,322 | |
TOTAL INVESTMENT IN SECURITIES - 102.7% | |||
(Cost $430,796,636) | 821,067,805 | ||
NET OTHER ASSETS (LIABILITIES) - (2.7)% | (21,738,493) | ||
NET ASSETS - 100% | $799,329,312 |
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) 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 $35,558,894 or 4.4% of net assets.
(d) Level 3 security
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $12,674,078 or 1.6% of net assets.
(f) Security is perpetual in nature with no stated maturity date.
(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 |
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 |
AppHarvest, Inc. | 1/29/21 | $1,172,590 |
Arrival Group | 3/24/21 | $651,040 |
Beta Technologies, Inc. Series A | 4/9/21 | $1,112,825 |
Bird Rides, Inc. | 2/12/21 - 4/20/21 | $363,028 |
Blink Health, Inc. Series A1 | 12/30/20 | $43,263 |
Blink Health, Inc. Series C | 11/7/19 - 1/21/21 | $566,455 |
Bombas LLC | 2/16/21 | $701,540 |
Bowery Farming, Inc. Series C1 | 5/18/21 | $828,127 |
BTRS Holdings, Inc. | 1/12/21 | $650,830 |
ByteDance Ltd. Series E1 | 11/18/20 | $508,862 |
Cazoo Holdings Ltd. | 9/30/20 | $73,842 |
Cazoo Holdings Ltd. Series A | 9/30/20 | $2,413 |
Cazoo Holdings Ltd. Series B | 9/30/20 | $42,199 |
Cazoo Holdings Ltd. Series C | 9/30/20 | $850 |
Cazoo Holdings Ltd. Series D | 9/30/20 | $150,769 |
Circle Internet Financial Ltd. 0% | 5/11/21 | $864,100 |
Clover Health Investments Corp. | 1/5/21 | $110,000 |
Convoy, Inc. Series D | 10/30/19 | $1,271,244 |
Databricks, Inc. Series G | 2/1/21 | $390,209 |
Delhivery Pvt Ltd. Series H | 5/20/21 | $174,748 |
Diamond Foundry, Inc. Series C | 3/15/21 | $556,656 |
Enevate Corp. Series E | 1/29/21 | $316,911 |
Enevate Corp. 0% 1/29/23 | 1/29/21 | $121,700 |
Epic Games, Inc. | 7/13/20 - 3/29/21 | $1,730,000 |
FSN E-Commerce Ventures Pvt Ltd. | 10/7/20 - 10/26/20 | $277,814 |
GoBrands, Inc. Series G | 3/2/21 | $599,322 |
Instacart, Inc. Series H | 11/13/20 | $633,960 |
Instacart, Inc. Series I | 2/26/21 | $389,875 |
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 |
Lordstown Motors Corp. | 10/23/20 | $411,850 |
Neutron Holdings, Inc. Series 1C | 7/3/18 | $253,709 |
Neutron Holdings, Inc. 4% 5/22/27 | 6/4/20 | $47,700 |
Neutron Holdings, Inc. 4% 6/12/27 | 6/12/20 | $13,100 |
Nuvation Bio, Inc. | 2/10/21 | $652,940 |
Rad Power Bikes, Inc. | 1/21/21 | $66,926 |
Rad Power Bikes, Inc. Series A | 1/21/21 | $8,726 |
Rad Power Bikes, Inc. Series C | 1/21/21 | $34,331 |
Relativity Space, Inc. Series E | 5/27/21 | $828,069 |
Rivian Automotive, Inc. Series E | 7/10/20 | $1,136,501 |
Rivian Automotive, Inc. Series F | 1/19/21 | $350,517 |
Rush Street Interactive, Inc. | 12/29/20 | $199,000 |
SiMa Ai Series B | 5/10/21 | $208,685 |
Sonder Holdings, Inc. Series D1 | 12/20/19 | $164,493 |
Sonder Holdings, Inc. Series E | 4/3/20 - 5/6/20 | $526,426 |
Space Exploration Technologies Corp. Class A | 2/16/21 | $125,997 |
Space Exploration Technologies Corp. Series I | 4/5/18 | $556,010 |
Space Exploration Technologies Corp. Series N | 8/4/20 | $690,930 |
Starry, Inc. Series D | 7/30/20 | $106,392 |
Starry, Inc. Series E1 | 9/4/20 | $308,135 |
Stripe, Inc. Class B | 5/18/21 | $100,321 |
Stripe, Inc. Series H | 3/15/21 | $44,138 |
Sweetgreen, Inc. warrants 1/21/26 | 1/21/21 | $0 |
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 |
Sweetgreen, Inc. Series J | 1/21/21 | $233,637 |
Tenstorrent, Inc. Series C1 | 4/23/21 | $71,345 |
Tenstorrent, Inc. 0% | 4/23/21 | $63,300 |
Thoughtworks, Inc. Series A | 1/13/21 | $306,075 |
View, Inc. | 3/5/21 | $472,320 |
Waymo LLC Series A2 | 5/8/20 | $248,671 |
Xsight Labs Ltd. Series D | 2/16/21 | $139,130 |
Yanka Industries, Inc. Series E | 5/15/20 | $238,154 |
Yanka Industries, Inc. Series F | 4/8/21 | $419,499 |
Zomato Pvt Ltd. | 12/9/20 - 2/10/21 | $271,528 |
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 | $467 |
Fidelity Securities Lending Cash Central Fund | 69,489 |
Total | $69,956 |
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, 2021, 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 | $160,714,193 | $160,221,157 | $-- | $493,036 |
Consumer Discretionary | 120,592,858 | 110,544,188 | 2,678,214 | 7,370,456 |
Consumer Staples | 15,890,908 | 8,191,075 | 1,854,744 | 5,845,089 |
Energy | 12,383,821 | 11,915,528 | 468,293 | -- |
Financials | 19,747,840 | 17,203,728 | 2,544,112 | -- |
Health Care | 121,579,733 | 119,239,711 | 2,340,022 | -- |
Industrials | 30,710,435 | 24,801,729 | -- | 5,908,706 |
Information Technology | 285,376,856 | 275,430,033 | 4,891,527 | 5,055,296 |
Materials | 6,921,846 | 6,365,190 | -- | 556,656 |
Utilities | 14,774,045 | 14,774,045 | -- | -- |
Corporate Bonds | 60,800 | -- | -- | 60,800 |
Preferred Securities | 1,049,100 | -- | -- | 1,049,100 |
Money Market Funds | 22,992,048 | 22,992,048 | -- | -- |
Equity Funds | 8,273,322 | 8,273,322 | -- | -- |
Total Investments in Securities: | $821,067,805 | $779,951,754 | $14,776,912 | $26,339,139 |
Net unrealized appreciation on unfunded commitments | $520,086 | $-- | $520,086 | $-- |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $16,348,655 |
Net Realized Gain (Loss) on Investment Securities | (2) |
Net Unrealized Gain (Loss) on Investment Securities | 3,111,525 |
Cost of Purchases | 10,771,888 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | 310,382 |
Transfers out of Level 3 | (4,203,309) |
Ending Balance | $26,339,139 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2021 | $3,111,525 |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through in-kind transactions. 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 | 85.1% |
Cayman Islands | 5.3% |
Netherlands | 1.8% |
India | 1.7% |
Canada | 1.3% |
Israel | 1.2% |
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, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $22,387,124) — See accompanying schedule: Unaffiliated issuers (cost $407,804,588) | $798,075,757 | |
Fidelity Central Funds (cost $22,992,048) | 22,992,048 | |
Total Investment in Securities (cost $430,796,636) | $821,067,805 | |
Foreign currency held at value (cost $355,096) | 355,286 | |
Receivable for investments sold | 2,778,671 | |
Net unrealized appreciation on unfunded commitments | 1,162,611 | |
Receivable for fund shares sold | 31,104,878 | |
Dividends receivable | 203,361 | |
Interest receivable | 2,405 | |
Distributions receivable from Fidelity Central Funds | 9,732 | |
Receivable from investment adviser for expense reductions | 3,722 | |
Other receivables | 176,380 | |
Total assets | 856,864,851 | |
Liabilities | ||
Payable to custodian bank | $1,632,472 | |
Payable for investments purchased | 31,605,569 | |
Net unrealized depreciation on unfunded commitments | 642,525 | |
Payable for fund shares redeemed | 18,714 | |
Other payables and accrued expenses | 643,159 | |
Collateral on securities loaned | 22,993,100 | |
Total liabilities | 57,535,539 | |
Net Assets | $799,329,312 | |
Net Assets consist of: | ||
Paid in capital | $302,774,097 | |
Total accumulated earnings (loss) | 496,555,215 | |
Net Assets | $799,329,312 | |
Net Asset Value, offering price and redemption price per share ($799,329,312 ÷ 45,940,226 shares) | $17.40 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $1,354,249 | |
Non-Cash dividends | 94,614 | |
Interest | 1,210 | |
Income from Fidelity Central Funds (including $69,489 from security lending) | 69,956 | |
Total income | 1,520,029 | |
Expenses | ||
Custodian fees and expenses | $35,663 | |
Independent trustees' fees and expenses | 1,495 | |
Interest | 1,064 | |
Total expenses before reductions | 38,222 | |
Expense reductions | (24,315) | |
Total expenses after reductions | 13,907 | |
Net investment income (loss) | 1,506,122 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $538) | 108,042,901 | |
Foreign currency transactions | (16,101) | |
Total net realized gain (loss) | 108,026,800 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $74,024) | (19,110,679) | |
Assets and liabilities in foreign currencies | 508 | |
Unfunded commitments | 520,086 | |
Total change in net unrealized appreciation (depreciation) | (18,590,085) | |
Net gain (loss) | 89,436,715 | |
Net increase (decrease) in net assets resulting from operations | $90,942,837 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2021 (Unaudited) | Year ended November 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,506,122 | $3,436,622 |
Net realized gain (loss) | 108,026,800 | 179,819,911 |
Change in net unrealized appreciation (depreciation) | (18,590,085) | 141,704,183 |
Net increase (decrease) in net assets resulting from operations | 90,942,837 | 324,960,716 |
Distributions to shareholders | (183,832,859) | (146,099,036) |
Share transactions | ||
Proceeds from sales of shares | 103,840,253 | 77,135,037 |
Reinvestment of distributions | 183,832,859 | 146,099,036 |
Cost of shares redeemed | (108,739,053) | (336,354,676) |
Net increase (decrease) in net assets resulting from share transactions | 178,934,059 | (113,120,603) |
Total increase (decrease) in net assets | 86,044,037 | 65,741,077 |
Net Assets | ||
Beginning of period | 713,285,275 | 647,544,198 |
End of period | $799,329,312 | $713,285,275 |
Other Information | ||
Shares | ||
Sold | 6,046,919 | 5,068,884 |
Issued in reinvestment of distributions | 11,496,739 | 11,449,768 |
Redeemed | (6,314,820) | (21,601,360) |
Net increase (decrease) | 11,228,838 | (5,082,708) |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $20.55 | $16.27 | $15.46 | $13.86 | $10.62 | $12.23 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .03 | .08 | .11B | .10 | .09 | .05 |
Net realized and unrealized gain (loss) | 2.15 | 7.91 | 3.56 | 2.83 | 3.54 | (.32) |
Total from investment operations | 2.18 | 7.99 | 3.67 | 2.93 | 3.63 | (.27) |
Distributions from net investment income | (.11) | (.13) | (.11) | (.11) | (.04) | (.07) |
Distributions from net realized gain | (5.22) | (3.59) | (2.75) | (1.22) | (.36) | (1.27) |
Total distributions | (5.33) | (3.71)C | (2.86) | (1.33) | (.39)C | (1.34) |
Net asset value, end of period | $17.40 | $20.55 | $16.27 | $15.46 | $13.86 | $10.62 |
Total ReturnD,E | 12.87% | 63.04% | 32.07% | 23.13% | 35.40% | (2.09)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .01%H | .01% | .01% | .01% | .31% | .62% |
Expenses net of fee waivers, if any | - %H,I | .01% | .01% | .01% | .31% | .62% |
Expenses net of all reductions | - %H,I | .01% | .01% | .01% | .30% | .61% |
Net investment income (loss) | .40%H | .54% | .77%B | .69% | .71% | .45% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $799,329 | $713,285 | $647,544 | $636,343 | $618,487 | $590,988 |
Portfolio turnover rateJ | 99%H | 78% | 78%K | 47% | 50% | 67% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.02 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .62%.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount represents less than .005%.
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K 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, 2021
1. Organization.
Fidelity Advisor Series Growth Opportunities Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. Shares are offered only to certain other Fidelity funds and Fidelity managed 529 plans. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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. 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.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. Exchange-Traded Funds (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.
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 | $25,229,239 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.0 – 5.7 / 4.8 | Increase |
Discount rate | 32.5% – 85.7% / 33.3% | Decrease | |||
Premium Rate | 7.8% | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Market approach | Transaction price | $0.80 - $885.00 / $192.10 | Increase | ||
Corporate Bonds | $60,800 | Market approach | Transaction price | $100.00 | Increase |
Preferred Securities | $1,049,100 | Market approach | Transaction price | $100.00 | 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, 2021, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 futures contracts, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), 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 | $402,920,727 |
Gross unrealized depreciation | (15,787,962) |
Net unrealized appreciation (depreciation) | $387,132,765 |
Tax cost | $433,935,040 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
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 Growth Opportunities Fund | 370,303,405 | 379,616,346 |
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 Growth Opportunities Fund | $5,278 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $6,982,412 | .31% | $1,008 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Series Growth Opportunities Fund | 36,496,277 | 23,662,191 |
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 commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Series Growth Opportunities Fund | $7,595 | $2,142 | $339,660 |
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Advisor Series Growth Opportunities Fund | $378,000 | .59% | $56 |
9. Expense Reductions.
The investment adviser contractually agreed to reimburse the Fund to the extent annual operating expenses exceeded .003% of average net assets. This reimbursement will remain in place through March 31, 2024. Some expenses, for example the compensation of the independent Trustees, and certain other expenses such as interest expense, are excluded from this reimbursement. During the period this reimbursement reduced the Fund's expenses by $24,315.
10. Other.
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.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Series Growth Opportunities Fund | - %-C | |||
Actual | $1,000.00 | $1,128.70 | $--D | |
Hypothetical-E | $1,000.00 | $1,024.93 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C Amount represents less than .005%.
D Amount represents less than $.005.
E 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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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 and 529 plans managed by Fidelity and ultimately to enhance the performance of those investment companies and 529 plans.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, but that FMR receives fees for providing services to funds that invest in the fund. The Board noted that FMR or an affiliate undertakes to pay all operating expenses of the fund, except transfer agent fees, 12b-1 fees, Independent Trustee fees and expenses, custodian fees and expenses, proxy and shareholder meeting expenses, interest, taxes, and extraordinary expenses (such as litigation expenses). The Board further noted that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program, if applicable.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 0.003% through March 31, 2024.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.A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The 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 certain fund profitability information and its conformity to established allocation methodologies. After considering the 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 considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board also considered that in 2019 a joint ad hoc committee created by it and the boards of other Fidelity funds evaluated potential fall-out benefits (PFOB Committee). The Board noted that it considered the PFOB Committee's findings in connection with its consideration of the renewal of the Advisory Contracts.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 expanding the use of performance fees for additional funds; (iii) Fidelity's pricing philosophy compared to competitors; (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 and expense comparisons; (vi) the expense structures for different funds and classes and information about the differences between various expense structures; (vii) group fee breakpoints; (viii) information regarding other accounts managed by Fidelity and sub-advisory arrangements; and (ix) 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, 2019 through November 30, 2020. 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-0721
1.967933.107
Fidelity Advisor® Series Equity Growth Fund
Semi-Annual Report
May 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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, 2020 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, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
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, 2021
% of fund's net assets | |
Microsoft Corp. | 9.0 |
Alphabet, Inc. Class A | 8.6 |
Amazon.com, Inc. | 5.5 |
Apple, Inc. | 4.1 |
UnitedHealth Group, Inc. | 3.9 |
NVIDIA Corp. | 3.2 |
Facebook, Inc. Class A | 3.0 |
Adobe, Inc. | 2.7 |
Qualcomm, Inc. | 2.1 |
Tencent Holdings Ltd. | 2.0 |
44.1 |
Top Five Market Sectors as of May 31, 2021
% of fund's net assets | |
Information Technology | 31.0 |
Communication Services | 16.8 |
Health Care | 14.5 |
Industrials | 11.0 |
Consumer Discretionary | 10.8 |
Asset Allocation (% of fund's net assets)
As of May 31, 2021* | ||
Stocks | 97.1% | |
Convertible Securities | 0.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.6% |
* Foreign investments - 18.4%
Schedule of Investments May 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.1% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 16.8% | |||
Diversified Telecommunication Services - 0.9% | |||
Cellnex Telecom SA (a) | 170,693 | $10,244,563 | |
Entertainment - 1.4% | |||
Take-Two Interactive Software, Inc. (b) | 38,200 | 7,088,392 | |
Warner Music Group Corp. Class A | 245,000 | 8,793,050 | |
15,881,442 | |||
Interactive Media & Services - 14.0% | |||
Alphabet, Inc. Class A (b) | 42,602 | 100,406,524 | |
Facebook, Inc. Class A (b) | 105,869 | 34,802,316 | |
Snap, Inc. Class A (b) | 13,100 | 813,772 | |
Tencent Holdings Ltd. | 286,017 | 22,810,754 | |
Tongdao Liepin Group (b) | 437,400 | 1,307,446 | |
Zoominfo Technologies, Inc. | 53,300 | 2,336,139 | |
162,476,951 | |||
Media - 0.5% | |||
Cable One, Inc. | 3,600 | 6,536,016 | |
TOTAL COMMUNICATION SERVICES | 195,138,972 | ||
CONSUMER DISCRETIONARY - 10.8% | |||
Automobiles - 0.5% | |||
Ferrari NV | 28,625 | 6,037,299 | |
Diversified Consumer Services - 0.7% | |||
Laureate Education, Inc. Class A (b) | 527,956 | 7,713,437 | |
Hotels, Restaurants & Leisure - 0.7% | |||
Airbnb, Inc. Class A | 16,400 | 2,302,560 | |
Compass Group PLC (b) | 41,400 | 944,764 | |
Dalata Hotel Group PLC | 103,200 | 556,534 | |
Flutter Entertainment PLC | 21,600 | 4,053,769 | |
7,857,627 | |||
Household Durables - 0.5% | |||
D.R. Horton, Inc. | 29,103 | 2,773,225 | |
NVR, Inc. (b) | 339 | 1,656,771 | |
Toll Brothers, Inc. | 29,400 | 1,918,056 | |
6,348,052 | |||
Internet & Direct Marketing Retail - 6.8% | |||
Alibaba Group Holding Ltd. sponsored ADR (b) | 67,334 | 14,406,783 | |
Amazon.com, Inc. (b) | 19,607 | 63,194,733 | |
Coupang, Inc. Class A (b)(c) | 9,100 | 371,189 | |
Pinduoduo, Inc. ADR (b) | 3,444 | 430,087 | |
78,402,792 | |||
Specialty Retail - 0.0% | |||
Aritzia LP (b) | 11,600 | 283,417 | |
Textiles, Apparel & Luxury Goods - 1.6% | |||
LVMH Moet Hennessy Louis Vuitton SE | 14,687 | 11,709,919 | |
Prada SpA | 648,000 | 4,512,610 | |
Samsonite International SA (a)(b) | 1,033,500 | 1,954,761 | |
18,177,290 | |||
TOTAL CONSUMER DISCRETIONARY | 124,819,914 | ||
CONSUMER STAPLES - 3.4% | |||
Beverages - 1.5% | |||
Fever-Tree Drinks PLC | 86 | 3,122 | |
Kweichow Moutai Co. Ltd. (A Shares) | 23,980 | 8,349,774 | |
Monster Beverage Corp. (b) | 92,200 | 8,691,694 | |
17,044,590 | |||
Household Products - 1.3% | |||
Energizer Holdings, Inc. | 137,886 | 6,348,271 | |
Reckitt Benckiser Group PLC | 63,043 | 5,692,596 | |
The Clorox Co. | 15,600 | 2,756,988 | |
14,797,855 | |||
Tobacco - 0.6% | |||
Altria Group, Inc. | 41,800 | 2,057,396 | |
Swedish Match Co. AB | 603,000 | 5,593,807 | |
7,651,203 | |||
TOTAL CONSUMER STAPLES | 39,493,648 | ||
ENERGY - 1.4% | |||
Oil, Gas & Consumable Fuels - 1.4% | |||
Reliance Industries Ltd. | 35,487 | 595,809 | |
Reliance Industries Ltd. | 517,516 | 15,416,615 | |
16,012,424 | |||
FINANCIALS - 4.9% | |||
Banks - 0.9% | |||
Comerica, Inc. | 30,800 | 2,417,492 | |
HDFC Bank Ltd. (b) | 29,308 | 612,623 | |
HDFC Bank Ltd. sponsored ADR (b) | 56,519 | 4,325,399 | |
M&T Bank Corp. | 15,100 | 2,426,419 | |
Metro Bank PLC (b) | 11,220 | 17,455 | |
Wintrust Financial Corp. | 12,800 | 1,029,376 | |
10,828,764 | |||
Capital Markets - 2.0% | |||
BlackRock, Inc. Class A | 3,900 | 3,420,456 | |
CME Group, Inc. | 47,543 | 10,400,507 | |
Franklin Resources, Inc. | 132,400 | 4,529,404 | |
JMP Group, Inc. (b)(c) | 33,184 | 187,158 | |
MSCI, Inc. | 1,489 | 697,046 | |
S&P Global, Inc. | 1,500 | 569,205 | |
T. Rowe Price Group, Inc. | 17,700 | 3,386,895 | |
23,190,671 | |||
Consumer Finance - 0.5% | |||
Capital One Financial Corp. | 37,800 | 6,077,484 | |
Insurance - 1.5% | |||
American Financial Group, Inc. | 43,200 | 5,748,192 | |
American International Group, Inc. | 68,600 | 3,624,824 | |
Arthur J. Gallagher & Co. | 51,100 | 7,491,771 | |
BRP Group, Inc. (b) | 18,900 | 464,562 | |
17,329,349 | |||
TOTAL FINANCIALS | 57,426,268 | ||
HEALTH CARE - 14.5% | |||
Biotechnology - 3.8% | |||
ACADIA Pharmaceuticals, Inc. (b) | 15,500 | 346,270 | |
Adamas Pharmaceuticals, Inc. (b) | 243,414 | 1,346,079 | |
Affimed NV (b) | 82,723 | 733,753 | |
Alnylam Pharmaceuticals, Inc. (b) | 11,000 | 1,561,890 | |
Applied Therapeutics, Inc. (b) | 57,400 | 1,103,802 | |
Atara Biotherapeutics, Inc. (b) | 57,100 | 774,276 | |
Biogen, Inc. (b) | 2,600 | 695,448 | |
BioNTech SE ADR (b) | 22,547 | 4,599,588 | |
CRISPR Therapeutics AG (b) | 12,000 | 1,418,160 | |
Evelo Biosciences, Inc. (b) | 8,000 | 107,360 | |
Exelixis, Inc. (b) | 46,700 | 1,053,085 | |
Gamida Cell Ltd. (b) | 218,532 | 1,418,273 | |
Hookipa Pharma, Inc. (b) | 40,500 | 675,945 | |
Innovent Biologics, Inc. (a)(b) | 143,000 | 1,730,972 | |
Insmed, Inc. (b) | 127,206 | 3,129,268 | |
Prelude Therapeutics, Inc. | 4,000 | 139,040 | |
Regeneron Pharmaceuticals, Inc. (b) | 25,300 | 12,711,479 | |
Rubius Therapeutics, Inc. (b) | 28,487 | 695,937 | |
Seres Therapeutics, Inc. (b) | 22,400 | 472,864 | |
Synlogic, Inc. (b) | 147,800 | 552,772 | |
Vertex Pharmaceuticals, Inc. (b) | 31,472 | 6,566,003 | |
Vor Biopharma, Inc. | 70,002 | 1,403,190 | |
XOMA Corp. (b) | 28,500 | 839,895 | |
44,075,349 | |||
Health Care Equipment & Supplies - 2.6% | |||
Axonics Modulation Technologies, Inc. (b) | 29,300 | 1,690,317 | |
Danaher Corp. | 35,817 | 9,174,166 | |
Edwards Lifesciences Corp. (b) | 53,400 | 5,121,060 | |
Insulet Corp. (b) | 900 | 242,703 | |
Intuitive Surgical, Inc. (b) | 11,309 | 9,524,214 | |
Medacta Group SA (a)(b) | 1,900 | 262,113 | |
Nevro Corp. (b) | 7,200 | 1,085,040 | |
Outset Medical, Inc. | 8,700 | 419,949 | |
Penumbra, Inc. (b) | 11,814 | 2,942,986 | |
30,462,548 | |||
Health Care Providers & Services - 4.4% | |||
Guardant Health, Inc. (b) | 5,385 | 668,386 | |
HealthEquity, Inc. (b) | 58,100 | 4,829,272 | |
UnitedHealth Group, Inc. | 111,008 | 45,726,415 | |
51,224,073 | |||
Health Care Technology - 0.8% | |||
agilon health, Inc. (b) | 24,800 | 891,312 | |
Certara, Inc. | 20,000 | 526,200 | |
MultiPlan Corp. (d) | 202,726 | 1,711,007 | |
MultiPlan Corp.: | |||
Class A (b) | 15,400 | 129,976 | |
warrants (b)(d) | 10,036 | 24,907 | |
Schrodinger, Inc. (b)(c) | 12,300 | 863,214 | |
Simulations Plus, Inc. (c) | 11,100 | 585,858 | |
Veeva Systems, Inc. Class A (b) | 15,697 | 4,573,164 | |
9,305,638 | |||
Life Sciences Tools & Services - 1.0% | |||
10X Genomics, Inc. (b) | 7,504 | 1,350,720 | |
Berkeley Lights, Inc. (b) | 23,400 | 1,017,900 | |
Bio-Techne Corp. | 2,200 | 910,426 | |
Bruker Corp. | 80,563 | 5,594,295 | |
Codexis, Inc. (b) | 66,196 | 1,357,018 | |
Nanostring Technologies, Inc. (b) | 21,300 | 1,181,937 | |
Olink Holding AB ADR (b) | 4,000 | 141,320 | |
Sotera Health Co. | 17,600 | 424,160 | |
11,977,776 | |||
Pharmaceuticals - 1.9% | |||
Aclaris Therapeutics, Inc. (b) | 34,000 | 756,160 | |
Eli Lilly & Co. | 82,000 | 16,378,680 | |
Endo International PLC (b) | 343,600 | 2,016,932 | |
Nuvation Bio, Inc. | 56,254 | 759,935 | |
Revance Therapeutics, Inc. (b) | 57,600 | 1,705,536 | |
21,617,243 | |||
TOTAL HEALTH CARE | 168,662,627 | ||
INDUSTRIALS - 11.0% | |||
Aerospace & Defense - 1.6% | |||
Airbus Group NV (b) | 72,700 | 9,482,201 | |
Axon Enterprise, Inc. (b) | 5,000 | 702,950 | |
Northrop Grumman Corp. | 7,800 | 2,853,786 | |
TransDigm Group, Inc. (b) | 8,495 | 5,511,896 | |
18,550,833 | |||
Airlines - 0.8% | |||
Ryanair Holdings PLC sponsored ADR (b) | 81,600 | 9,526,800 | |
Building Products - 0.5% | |||
Builders FirstSource, Inc. (b) | 46,637 | 2,077,212 | |
Fortune Brands Home & Security, Inc. | 33,100 | 3,414,596 | |
5,491,808 | |||
Construction & Engineering - 0.5% | |||
Fluor Corp. (b) | 289,200 | 5,350,200 | |
Willscot Mobile Mini Holdings (b) | 22,900 | 664,100 | |
6,014,300 | |||
Electrical Equipment - 1.1% | |||
AMETEK, Inc. | 22,200 | 2,999,220 | |
Ballard Power Systems, Inc. (b)(c) | 4,100 | 71,012 | |
Bloom Energy Corp. Class A (b)(c) | 20,100 | 485,817 | |
Ceres Power Holdings PLC (b) | 76,500 | 1,181,390 | |
Encore Wire Corp. | 10,721 | 881,266 | |
Generac Holdings, Inc. (b) | 20,600 | 6,771,632 | |
12,390,337 | |||
Industrial Conglomerates - 1.5% | |||
General Electric Co. | 1,283,100 | 18,040,386 | |
Machinery - 0.9% | |||
Ingersoll Rand, Inc. (b) | 143,528 | 7,124,730 | |
Woodward, Inc. | 25,200 | 3,204,936 | |
10,329,666 | |||
Professional Services - 2.0% | |||
CACI International, Inc. Class A (b) | 10,900 | 2,779,064 | |
Equifax, Inc. | 47,364 | 11,132,435 | |
KBR, Inc. | 87,500 | 3,564,750 | |
Upwork, Inc. (b) | 123,080 | 5,793,376 | |
23,269,625 | |||
Road & Rail - 1.6% | |||
Canadian Pacific Railway Ltd. | 47,000 | 3,819,220 | |
CSX Corp. | 44,100 | 4,415,292 | |
Uber Technologies, Inc. (b) | 196,940 | 10,010,460 | |
18,244,972 | |||
Trading Companies & Distributors - 0.5% | |||
Ferguson PLC | 39,900 | 5,432,780 | |
TOTAL INDUSTRIALS | 127,291,507 | ||
INFORMATION TECHNOLOGY - 30.9% | |||
Electronic Equipment & Components - 0.4% | |||
Dolby Laboratories, Inc. Class A | 26,900 | 2,623,826 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 440,000 | 1,811,586 | |
Jabil, Inc. | 6,810 | 384,425 | |
Novanta, Inc. (b) | 1,700 | 236,249 | |
5,056,086 | |||
IT Services - 2.7% | |||
Adyen BV (a)(b) | 1,400 | 3,236,346 | |
Amadeus IT Holding SA Class A (b) | 49,600 | 3,744,738 | |
Black Knight, Inc. (b) | 46,405 | 3,405,663 | |
Edenred SA | 313 | 17,021 | |
Edenred SA rights (b)(e) | 313 | 287 | |
MasterCard, Inc. Class A | 9,873 | 3,560,006 | |
MongoDB, Inc. Class A (b) | 26,700 | 7,794,798 | |
Shopify, Inc. Class A (b) | 3,722 | 4,564,831 | |
Square, Inc. (b) | 23,500 | 5,229,220 | |
31,552,910 | |||
Semiconductors & Semiconductor Equipment - 7.5% | |||
Aixtron AG | 106,700 | 2,203,123 | |
ASML Holding NV | 14,033 | 9,478,871 | |
eMemory Technology, Inc. | 8,000 | 273,370 | |
Enphase Energy, Inc. (b) | 22,200 | 3,175,710 | |
MediaTek, Inc. | 19,000 | 685,784 | |
NVIDIA Corp. | 58,101 | 37,752,868 | |
Qualcomm, Inc. | 183,540 | 24,693,472 | |
SiTime Corp. (b) | 8,700 | 855,471 | |
SolarEdge Technologies, Inc. (b) | 8,200 | 2,115,682 | |
Universal Display Corp. | 26,200 | 5,655,532 | |
86,889,883 | |||
Software - 15.4% | |||
Adobe, Inc. (b) | 63,004 | 31,790,558 | |
Anaplan, Inc. (b) | 15,800 | 813,858 | |
Autodesk, Inc. (b) | 8,100 | 2,315,466 | |
Cloudflare, Inc. (b) | 14,246 | 1,169,027 | |
Coupa Software, Inc. (b) | 4,100 | 976,620 | |
CyberArk Software Ltd. (b) | 43,700 | 5,529,798 | |
Datadog, Inc. Class A (b) | 1,723 | 156,879 | |
Duck Creek Technologies, Inc. (b) | 1,000 | 39,310 | |
Elastic NV (b) | 988 | 116,791 | |
Epic Games, Inc. (d)(f) | 805 | 712,425 | |
FireEye, Inc. (b) | 641,600 | 14,352,592 | |
Manhattan Associates, Inc. (b) | 38,373 | 5,217,961 | |
Microsoft Corp. | 416,468 | 103,983,726 | |
Palo Alto Networks, Inc. (b) | 28,900 | 10,497,925 | |
Volue A/S | 113,400 | 705,034 | |
178,377,970 | |||
Technology Hardware, Storage & Peripherals - 4.9% | |||
Apple, Inc. | 377,200 | 47,002,892 | |
Samsung Electronics Co. Ltd. | 129,210 | 9,383,908 | |
56,386,800 | |||
TOTAL INFORMATION TECHNOLOGY | 358,263,649 | ||
MATERIALS - 2.9% | |||
Chemicals - 2.4% | |||
Albemarle Corp. U.S. | 43,600 | 7,284,688 | |
Axalta Coating Systems Ltd. (b) | 50,400 | 1,634,976 | |
Corbion NV | 16,300 | 948,785 | |
LG Chemical Ltd. | 6,580 | 4,861,850 | |
Sherwin-Williams Co. | 33,707 | 9,556,946 | |
The Chemours Co. LLC | 90,300 | 3,244,479 | |
27,531,724 | |||
Construction Materials - 0.3% | |||
Eagle Materials, Inc. | 25,700 | 3,771,732 | |
Metals & Mining - 0.2% | |||
First Quantum Minerals Ltd. | 55,096 | 1,355,718 | |
Lynas Rare Earths Ltd. (b) | 55,985 | 239,164 | |
MP Materials Corp. (b)(c) | 17,500 | 491,400 | |
2,086,282 | |||
TOTAL MATERIALS | 33,389,738 | ||
REAL ESTATE - 0.5% | |||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
Equity Residential (SBI) | 16,800 | 1,301,160 | |
Prologis (REIT), Inc. | 20,400 | 2,403,936 | |
3,705,096 | |||
Real Estate Management & Development - 0.2% | |||
CBRE Group, Inc. (b) | 18,100 | 1,588,818 | |
TOTAL REAL ESTATE | 5,293,914 | ||
TOTAL COMMON STOCKS | |||
(Cost $614,371,464) | 1,125,792,661 | ||
Convertible Preferred Stocks - 0.3% | |||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
ElevateBio LLC Series C (d)(f) | 26,300 | 110,329 | |
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (b)(d)(f) | 38,419 | 1,203 | |
Software - 0.1% | |||
ASAPP, Inc. Series C (d)(f) | 90,925 | 599,841 | |
TOTAL INFORMATION TECHNOLOGY | 601,044 | ||
MATERIALS - 0.2% | |||
Metals & Mining - 0.2% | |||
Illuminated Holdings, Inc.: | |||
Series C2 (d)(f) | 21,131 | 912,859 | |
Series C3 (d)(f) | 26,414 | 1,141,085 | |
Series C4 (d)(f) | 6,345 | 274,104 | |
2,328,048 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $2,259,285) | 3,039,421 | ||
Money Market Funds - 1.0% | |||
Fidelity Cash Central Fund 0.03% (g) | 9,189,630 | 9,191,468 | |
Fidelity Securities Lending Cash Central Fund 0.03% (g)(h) | 2,108,844 | 2,109,055 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $11,300,523) | 11,300,523 | ||
TOTAL INVESTMENT IN SECURITIES - 98.4% | |||
(Cost $627,931,272) | 1,140,132,605 | ||
NET OTHER ASSETS (LIABILITIES) - 1.6% | 18,619,258 | ||
NET ASSETS - 100% | $1,158,751,863 |
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 $17,428,755 or 1.5% of net assets.
(b) Non-income producing
(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 $5,487,760 or 0.5% of net assets.
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(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 |
ASAPP, Inc. Series C | 4/30/21 | $599,841 |
ElevateBio LLC Series C | 3/9/21 | $110,329 |
Epic Games, Inc. | 3/29/21 | $712,425 |
Illuminated Holdings, Inc. Series C2 | 7/7/20 | $528,275 |
Illuminated Holdings, Inc. Series C3 | 7/7/20 | $792,420 |
Illuminated Holdings, Inc. Series C4 | 1/8/21 | $228,420 |
MultiPlan Corp. | 10/8/20 | $2,007,188 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $1,972 |
Fidelity Securities Lending Cash Central Fund | 40,030 |
Total | $42,002 |
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, 2021, 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 | $195,138,972 | $195,138,972 | $-- | $-- |
Consumer Discretionary | 124,819,914 | 123,875,150 | 944,764 | -- |
Consumer Staples | 39,493,648 | 33,801,052 | 5,692,596 | -- |
Energy | 16,012,424 | 15,416,615 | 595,809 | -- |
Financials | 57,426,268 | 57,426,268 | -- | -- |
Health Care | 168,772,956 | 166,474,595 | 2,188,032 | 110,329 |
Industrials | 127,291,507 | 127,291,507 | -- | -- |
Information Technology | 358,864,693 | 357,550,937 | 287 | 1,313,469 |
Materials | 35,717,786 | 33,389,738 | -- | 2,328,048 |
Real Estate | 5,293,914 | 5,293,914 | -- | -- |
Money Market Funds | 11,300,523 | 11,300,523 | -- | -- |
Total Investments in Securities: | $1,140,132,605 | $1,126,959,271 | $9,421,488 | $3,751,846 |
Net unrealized depreciation on unfunded commitments | $(188,415) | $- | $(188,415) | $- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 81.6% |
Cayman Islands | 3.5% |
Netherlands | 2.6% |
India | 1.8% |
Ireland | 1.4% |
Korea (South) | 1.2% |
Spain | 1.2% |
France | 1.0% |
Others (Individually Less Than 1%) | 5.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $2,056,120) — See accompanying schedule: Unaffiliated issuers (cost $616,630,749) | $1,128,832,082 | |
Fidelity Central Funds (cost $11,300,523) | 11,300,523 | |
Total Investment in Securities (cost $627,931,272) | $1,140,132,605 | |
Foreign currency held at value (cost $13) | 13 | |
Receivable for investments sold | 1,149,527 | |
Receivable for fund shares sold | 21,769,140 | |
Dividends receivable | 657,395 | |
Distributions receivable from Fidelity Central Funds | 953 | |
Receivable from investment adviser for expense reductions | 1,321 | |
Other receivables | 153,966 | |
Total assets | 1,163,864,920 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $1,881,026 | |
Delayed delivery | 286 | |
Net unrealized depreciation on unfunded commitments | 188,415 | |
Payable for fund shares redeemed | 179,861 | |
Other payables and accrued expenses | 755,194 | |
Collateral on securities loaned | 2,108,275 | |
Total liabilities | 5,113,057 | |
Net Assets | $1,158,751,863 | |
Net Assets consist of: | ||
Paid in capital | $547,162,081 | |
Total accumulated earnings (loss) | 611,589,782 | |
Net Assets | $1,158,751,863 | |
Net Asset Value, offering price and redemption price per share ($1,158,751,863 ÷ 65,803,570 shares) | $17.61 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $3,348,503 | |
Income from Fidelity Central Funds (including $40,030 from security lending) | 42,002 | |
Total income | 3,390,505 | |
Expenses | ||
Custodian fees and expenses | $40,145 | |
Independent trustees' fees and expenses | 2,145 | |
Interest | 556 | |
Total expenses before reductions | 42,846 | |
Expense reductions | (23,792) | |
Total expenses after reductions | 19,054 | |
Net investment income (loss) | 3,371,451 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 99,416,819 | |
Foreign currency transactions | (24,968) | |
Total net realized gain (loss) | 99,391,851 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $53,640) | 36,490,896 | |
Assets and liabilities in foreign currencies | 2,121 | |
Unfunded commitments | (188,415) | |
Total change in net unrealized appreciation (depreciation) | 36,304,602 | |
Net gain (loss) | 135,696,453 | |
Net increase (decrease) in net assets resulting from operations | $139,067,904 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2021 (Unaudited) | Year ended November 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,371,451 | $6,130,085 |
Net realized gain (loss) | 99,391,851 | 214,742,357 |
Change in net unrealized appreciation (depreciation) | 36,304,602 | 133,191,803 |
Net increase (decrease) in net assets resulting from operations | 139,067,904 | 354,064,245 |
Distributions to shareholders | (221,400,049) | (119,061,402) |
Share transactions | ||
Proceeds from sales of shares | 118,938,572 | 119,682,293 |
Reinvestment of distributions | 221,400,049 | 119,061,402 |
Cost of shares redeemed | (106,896,635) | (443,826,502) |
Net increase (decrease) in net assets resulting from share transactions | 233,441,986 | (205,082,807) |
Total increase (decrease) in net assets | 151,109,841 | 29,920,036 |
Net Assets | ||
Beginning of period | 1,007,642,022 | 977,721,986 |
End of period | $1,158,751,863 | $1,007,642,022 |
Other Information | ||
Shares | ||
Sold | 7,040,345 | 7,595,541 |
Issued in reinvestment of distributions | 13,907,038 | 8,510,465 |
Redeemed | (6,204,416) | (28,013,356) |
Net increase (decrease) | 14,742,967 | (11,907,350) |
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, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.73 | $15.53 | $14.20 | $15.41 | $11.22 | $11.25 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .10 | .12 | .13 | .08 | .02 |
Net realized and unrealized gain (loss) | 2.19 | 6.02 | 2.33 | 1.05 | 4.12 | (.03) |
Total from investment operations | 2.24 | 6.12 | 2.45 | 1.18 | 4.20 | (.01) |
Distributions from net investment income | (.13) | (.13) | (.13) | (.09) | (.01) | (.02) |
Distributions from net realized gain | (4.23) | (1.79) | (.99) | (2.30) | – | – |
Total distributions | (4.36) | (1.92) | (1.12) | (2.39) | (.01) | (.02) |
Net asset value, end of period | $17.61 | $19.73 | $15.53 | $14.20 | $15.41 | $11.22 |
Total ReturnB,C | 13.68% | 44.43% | 19.73% | 8.96% | 37.51% | (.11)% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | .01%F | .01% | .01% | .01% | .32% | .65% |
Expenses net of fee waivers, if any | - %F,G | .01% | .01% | .01% | .32% | .65% |
Expenses net of all reductions | - %F,G | .01% | .01% | - %G | .32% | .65% |
Net investment income (loss) | .62%F | .65% | .84% | .92% | .57% | .15% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,158,752 | $1,007,642 | $977,722 | $947,353 | $933,562 | $901,989 |
Portfolio turnover rateH | 56%F | 56% | 52%I | 38% | 48% | 60% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
F Annualized
G Amount represents less than .005%.
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, 2021
1. Organization.
Fidelity Advisor Series Equity Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. Shares are offered only to certain other Fidelity funds and Fidelity managed 529 plans. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 - Investment 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, passive foreign investment companies (PFIC) 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 | $521,278,220 |
Gross unrealized depreciation | (9,853,206) |
Net unrealized appreciation (depreciation) | $511,425,014 |
Tax cost | $628,707,591 |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
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 | 300,605,211 | 319,540,600 |
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 | $5,241 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $9,774,429 | .29% | $556 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Series Equity Growth Fund | 30,386,750 | 21,348,730 |
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 commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Advisor Series Equity Growth Fund | $4,104 | $1,002 | $162,864 |
8. Expense Reductions.
The investment adviser contractually agreed to reimburse the Fund to the extent annual operating expenses exceeded .003% of average net assets. This reimbursement will remain in place through March 31, 2024. Some expenses, for example the compensation of the independent Trustees, and certain other expenses such as interest expense, are excluded from this reimbursement. During the period this reimbursement reduced the Fund's expenses by $23,792.
9. Other.
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, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to May 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value May 31, 2021 | Expenses Paid During Period-B December 1, 2020 to May 31, 2021 | |
Fidelity Advisor Series Equity Growth Fund | - %-C | |||
Actual | $1,000.00 | $1,136.80 | $--D | |
Hypothetical-E | $1,000.00 | $1,024.93 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C Amount represents less than .005%.
D Amount represents less than $.005.
E 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.Approval of Stub Period Continuation. At its January 2021 meeting, the Board of Trustees voted to continue the fund's management contract with FMR, and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts), without modification, for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar. The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.At its May 2021 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. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.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 and 529 plans managed by Fidelity and ultimately to enhance the performance of those investment companies and 529 plans.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, but that FMR receives fees for providing services to funds that invest in the fund. The Board noted that FMR or an affiliate undertakes to pay all operating expenses of the fund, except transfer agent fees, 12b-1 fees, Independent Trustee fees and expenses, custodian fees and expenses, proxy and shareholder meeting expenses, interest, taxes, and extraordinary expenses (such as litigation expenses). The Board further noted that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program, if applicable.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 0.003% through March 31, 2024.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.A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The 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 certain fund profitability information and its conformity to established allocation methodologies. After considering the 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 considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board also considered that in 2019 a joint ad hoc committee created by it and the boards of other Fidelity funds evaluated potential fall-out benefits (PFOB Committee). The Board noted that it considered the PFOB Committee's findings in connection with its consideration of the renewal of the Advisory Contracts.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 expanding the use of performance fees for additional funds; (iii) Fidelity's pricing philosophy compared to competitors; (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 and expense comparisons; (vi) the expense structures for different funds and classes and information about the differences between various expense structures; (vii) group fee breakpoints; (viii) information regarding other accounts managed by Fidelity and sub-advisory arrangements; and (ix) 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, 2019 through November 30, 2020. 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-0721
1.9860269.106
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, 2021 |
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, 2021 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | July 22, 2021 |