UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3785
Fidelity Advisor Series I
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | October 31 |
|
|
Date of reporting period: | April 30, 2014 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Floating Rate High Income
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to financial statements. | |
Report of Independent Registered Public Accounting Firm |
|
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.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.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.40 | $ 4.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Class T | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.00 | $ 5.40 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.44 | $ 5.41 |
Class B | 1.52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.70 | $ 7.59 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.26 | $ 7.60 |
Class C | 1.74% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,011.60 | $ 8.68 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.17 | $ 8.70 |
Fidelity Floating Rate High Income Fund | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.90 | $ 3.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.32 | $ 3.51 |
Institutional Class | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.60 | $ 3.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.08 | $ 3.76 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Holdings as of April 30, 2014 | ||
(by issuer, excluding cash equivalents) | % of fund's | % of fund's net assets |
HCA Holdings, Inc. | 3.2 | 3.2 |
Community Health Systems, Inc. | 2.7 | 2.1 |
H.J. Heinz Co. | 2.6 | 2.6 |
First Data Corp. | 1.9 | 2.0 |
Hilton Worldwide Finance, LLC | 1.8 | 2.4 |
| 12.2 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Healthcare | 11.9 | 12.3 |
Technology | 10.9 | 10.4 |
Telecommunications | 6.5 | 6.5 |
Gaming | 5.8 | 3.8 |
Electric Utilities | 5.5 | 6.6 |
Quality Diversification (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
![]() | BBB 5.9% |
| ![]() | BBB 5.2% |
| ||
![]() | BB 38.8% |
| ![]() | BB 45.0% |
| ||
![]() | B 42.5% |
| ![]() | B 34.9% |
| ||
![]() | CCC,CC,C 2.8% |
| ![]() | CCC,CC,C 2.5% |
| ||
![]() | D 0.0%† |
| ![]() | D 0.0%† |
| ||
![]() | Not Rated 4.7% |
| ![]() | Not Rated 3.2% |
| ||
![]() | Other Investments 0.2% |
| ![]() | Other Investments 0.2% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
† Amount represents less than 0.1% | |||||||
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014* | As of October 31, 2013** | ||||||
![]() | Bank Loan |
| ![]() | Bank Loan |
| ||
![]() | Nonconvertible |
| ![]() | Nonconvertible |
| ||
![]() | Common Stocks 0.2% |
| ![]() | Common Stocks 0.2% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 10.5% |
| ** Foreign investments | 10.0% |
|
Semiannual Report
Investments April 30, 2014
Showing Percentage of Net Assets
Bank Loan Obligations (f) - 87.8% | ||||
| Principal Amount (000s) | Value (000s) | ||
Aerospace - 0.9% | ||||
TransDigm, Inc. Tranche C, term loan 3.75% 2/28/20 (e) | $ 144,883 | $ 144,339 | ||
Air Transportation - 0.2% | ||||
Delta Air Lines, Inc. Tranche B 1LN, term loan 3.5% 10/18/18 (e) | 13,875 | 13,805 | ||
U.S. Airways, Inc. Tranche B 2LN, term loan 3% 11/23/16 (e) | 25,000 | 24,938 | ||
| 38,743 | |||
Automotive - 1.8% | ||||
Affinia Group, Inc. Tranche B 2LN, term loan 4.75% 4/25/20 (e) | 14,287 | 14,287 | ||
Allison Transmission, Inc. Tranche B 3LN, term loan 3.75% 8/23/19 (e) | 7,739 | 7,739 | ||
Chrysler Group LLC: | ||||
term loan 3.25% 12/31/18 (e) | 54,000 | 53,460 | ||
Tranche B, term loan 3.5% 5/24/17 (e) | 81,665 | 81,563 | ||
Federal-Mogul Corp. Tranche C, term loan 4.75% 4/15/21 (e) | 20,000 | 19,875 | ||
North American Lifting Holdings, Inc.: | ||||
Tranche 1LN, term loan 5.5% 11/27/20 (e) | 16,958 | 17,063 | ||
Tranche 2LN, term loan 10% 11/27/21 (e) | 24,370 | 24,340 | ||
Schaeffler AG Tranche C, term loan 4.25% 1/27/17 (e) | 41,000 | 41,154 | ||
The Goodyear Tire & Rubber Co. Tranche 2LN, term loan 4.75% 4/30/19 (e) | 16,000 | 16,120 | ||
Tower Automotive Holdings U.S.A. LLC term loan 4% 4/23/20 (e) | 26,746 | 26,612 | ||
| 302,213 | |||
Broadcasting - 2.8% | ||||
Clear Channel Capital I LLC Tranche B, term loan 3.8003% 1/29/16 (e) | 88,025 | 87,365 | ||
Clear Channel Communications, Inc. Tranche D, term loan 6.9003% 1/30/19 (e) | 68,720 | 68,119 | ||
ION Media Networks, Inc. Tranche B, term loan 5% 12/18/20 (e) | 28,928 | 29,072 | ||
Nielsen Finance LLC Tranche B 2LN, term loan 3.152% 4/15/21 (e) | 80,000 | 80,000 | ||
Nine Entertainment Co. Tranche B, term loan 3.25% 2/5/20 (e) | 14,865 | 14,642 | ||
TWCC Holding Corp. term loan 3.5% 2/11/17 (e) | 66,020 | 65,071 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Broadcasting - continued | ||||
Univision Communications, Inc.: | ||||
Tranche C 3LN, term loan 4% 3/1/20 (e) | $ 9,900 | $ 9,838 | ||
Tranche C 4LN, term loan 4% 3/1/20 (e) | 104,124 | 103,473 | ||
| 457,580 | |||
Building Materials - 0.8% | ||||
American Builders & Contractors Supply Co., Inc. Tranche B, term loan 3.5% 4/16/20 (e) | 34,909 | 34,821 | ||
Armstrong World Industries, Inc. Tranche B, term loan 3.5% 3/15/20 (e) | 23,710 | 23,710 | ||
Continental Building Products Tranche B 1LN, term loan 4.75% 8/28/20 (e) | 15,880 | 15,880 | ||
Pinafore LLC Tranche B 2LN, term loan 3.75% 9/21/16 (e) | 42,091 | 42,038 | ||
Ply Gem Industries, Inc. Tranche B, term loan 4% 2/1/21 (e) | 7,095 | 7,024 | ||
| 123,473 | |||
Cable TV - 4.9% | ||||
Atlantic Broad Tranche B, term loan 3.25% 11/30/19 (e) | 27,395 | 27,121 | ||
CCO Holdings, LLC Tranche 3LN, term loan 2.6503% 9/6/14 (e) | 69,097 | 68,903 | ||
Cequel Communications LLC Tranche B, term loan 3.5% 2/14/19 (e) | 122,966 | 122,351 | ||
Charter Communications Operating LLC: | ||||
Tranche E, term loan 3% 7/1/20 (e) | 48,963 | 48,289 | ||
Tranche F, term loan 3% 1/3/21 (e) | 94,709 | 93,289 | ||
CSC Holdings LLC Tranche B, term loan 2.6503% 4/17/20 (e) | 133,327 | 131,500 | ||
Numericable LLC: | ||||
Tranche B 1LN, term loan 4/23/20 (g) | 40,187 | 40,137 | ||
Tranche B 2LN, term loan 4/23/20 (g) | 34,768 | 34,724 | ||
RCN Telecom Services, LLC Tranche B, term loan 4.5% 3/1/20 (e) | 6,775 | 6,775 | ||
UPC Broadband Holding BV Tranche AH, term loan 3.25% 6/30/21 (e) | 34,000 | 33,660 | ||
Virgin Media Finance PLC Tranche B, term loan 3.5% 6/7/20 (e) | 55,000 | 54,450 | ||
WideOpenWest Finance LLC Tranche B, term loan 4.75% 4/1/19 (e) | 32,670 | 32,752 | ||
Ziggo B.V.: | ||||
Tranche B 1LN, term loan: | ||||
1/15/22 (g) | 2,063 | 2,027 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Cable TV - continued | ||||
Ziggo B.V.: - continued | ||||
3.25% 1/15/22 (e) | $ 35,286 | $ 34,668 | ||
Tranche B 2LN, term loan: | ||||
1/15/22 (g) | 1,934 | 1,900 | ||
3.25% 1/15/22 (e) | 22,134 | 21,747 | ||
Tranche B 3LN, term loan 1/15/22 (g) | 39,583 | 38,891 | ||
| 793,184 | |||
Capital Goods - 0.3% | ||||
Doncasters PLC Tranche B 2LN, term loan 9.5% 10/9/20 (e) | 7,862 | 8,019 | ||
SRAM LLC. Tranche B, term loan 4.0092% 4/10/20 (e) | 40,271 | 39,667 | ||
| 47,686 | |||
Chemicals - 1.0% | ||||
Cyanco Intermediate Corp. Tranche B, term loan 5.5% 5/1/20 (e) | 30,482 | 30,558 | ||
Emerald Performance Materials, LLC Tranche B, term loan 6.75% 5/18/18 (e) | 2,948 | 2,948 | ||
MacDermid, Inc. Tranche B 1LN, term loan 4% 6/7/20 (e) | 39,548 | 39,449 | ||
Royal Adhesives & Sealants LLC Tranche B 1LN, term loan 5.5% 7/31/18 (e) | 15,547 | 15,586 | ||
Tata Chemicals North America, Inc. Tranche B, term loan 3.75% 8/9/20 (e) | 12,903 | 12,838 | ||
U.S. Coatings Acquisition, Inc. Tranche B, term loan 4% 2/1/20 (e) | 54,588 | 54,451 | ||
| 155,830 | |||
Consumer Products - 1.1% | ||||
Jarden Corp. Tranche B, term loan 2.7162% 3/31/18 (e) | 16,037 | 16,037 | ||
Kate Spade & Co. Tranche B, term loan 4/10/21 (g) | 17,965 | 17,965 | ||
NBTY, Inc. Tranche B 2LN, term loan 3.5% 10/1/17 (e) | 14,179 | 14,161 | ||
Revlon Consumer Products Corp.: | ||||
term loan 4% 8/19/19 (e) | 30,923 | 30,884 | ||
Tranche B, term loan 3.25% 11/19/17 (e) | 13,500 | 13,483 | ||
Spotless Holdings Ltd. Tranche B 1LN, term loan 5% 10/2/18 (e) | 16,859 | 16,922 | ||
Sun Products Corp. Tranche B, term loan 5.5125% 3/23/20 (e) | 15,210 | 14,488 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Consumer Products - continued | ||||
Tempur Sealy International, Inc. Tranche B, term loan 3.5% 3/18/20 (e) | $ 18,924 | $ 18,807 | ||
Wilsonart LLC Tranche B, term loan 4% 10/31/19 (e) | 42,861 | 42,433 | ||
| 185,180 | |||
Containers - 2.1% | ||||
Ardagh Holdings U.S.A., Inc. Tranche B, term loan: | ||||
4% 12/17/19 (e) | 55,630 | 55,352 | ||
4.25% 12/17/19 (e) | 17,481 | 17,394 | ||
Berlin Packaging, LLC: | ||||
Tranche 1LN, term loan 4.75% 4/3/19 (e) | 7,532 | 7,561 | ||
Tranche 2LN, term loan 8.75% 4/3/20 (e) | 3,855 | 3,937 | ||
Berry Plastics Corp. Tranche E, term loan 3.75% 1/6/21 (e) | 15,000 | 14,888 | ||
Berry Plastics Group, Inc. term loan 3.5% 2/8/20 (e) | 110,106 | 109,005 | ||
BWAY Holding Co. Tranche B, term loan 4.5% 8/6/17 (e) | 15,148 | 15,186 | ||
Consolidated Container Co. Tranche B, term loan 5% 7/3/19 (e) | 8,845 | 8,857 | ||
Multi Packaging Solutions, Inc. term loan 4.25% 9/30/20 (e) | 7,000 | 6,983 | ||
Reynolds Consumer Products Holdings, Inc. Tranche B, term loan 4% 12/1/18 (e) | 95,112 | 95,112 | ||
Tricorbraun, Inc. Tranche B, term loan 4% 5/3/18 (e) | 3,804 | 3,783 | ||
| 338,058 | |||
Diversified Financial Services - 2.6% | ||||
AlixPartners LLP Tranche B 2LN, term loan 4% 7/10/20 (e) | 19,750 | 19,701 | ||
Delos Finance SARL Tranche B LN, term loan 3.5% 3/6/21 (e) | 51,095 | 51,095 | ||
Energy & Minerals Group Tranche B, term loan 4.75% 3/27/20 (e) | 14,920 | 14,920 | ||
Fly Funding II Sarl Tranche B, term loan 4.5% 8/9/19 (e) | 14,906 | 14,981 | ||
Flying Fortress, Inc. term loan 3.5% 6/30/17 (e) | 97,833 | 97,833 | ||
HarbourVest Partners LLC Tranche B, term loan 3.25% 2/4/21 (e) | 15,366 | 15,241 | ||
Home Loan Servicing Solutions Ltd. Tranche B, term loan 4.5% 6/27/20 (e) | 14,639 | 14,639 | ||
LPL Holdings, Inc. Tranche B, term loan 3.25% 3/29/19 (e) | 32,846 | 32,682 | ||
Moxie Patriot LLC Tranche B, term loan 6.75% 12/19/20 (e) | 8,000 | 8,190 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Diversified Financial Services - continued | ||||
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 2/15/18 (e) | $ 30,616 | $ 30,769 | ||
Sheridan Investment Partners I, LLC Tranche B 2LN, term loan 4.25% 10/1/19 (e) | 20,181 | 20,231 | ||
Star West Generation LLC Tranche B, term loan 4.25% 3/13/20 (e) | 22,770 | 22,713 | ||
TransUnion LLC Tranche B, term loan 4% 4/9/21 (e) | 77,500 | 77,113 | ||
| 420,108 | |||
Diversified Media - 0.6% | ||||
Advanstar Communications, Inc. Tranche B 1LN, term loan 5.5% 4/29/19 (e) | 8,415 | 8,489 | ||
McGraw-Hill School Education Tranche B, term loan 6.25% 12/18/19 (e) | 18,454 | 18,546 | ||
Media General, Inc. Tranche B. term loan 4.25% 7/31/20 (e) | 23,810 | 23,839 | ||
WMG Acquisition Corp. term loan 3.75% 7/1/20 (e) | 55,712 | 55,434 | ||
| 106,308 | |||
Electric Utilities - 5.2% | ||||
Alinta Energy Finance Pty. Ltd. Tranche B, term loan: | ||||
8/13/18 (h) | 3,960 | 4,019 | ||
6.375% 8/13/19 (e) | 60,222 | 61,125 | ||
Calpine Construction Finance Co. LP: | ||||
Tranche B 1LN, term loan 3% 5/3/20 (e) | 85,127 | 83,105 | ||
Tranche B 2LN, term loan 3.25% 1/31/22 (e) | 54,325 | 53,170 | ||
Calpine Corp.: | ||||
Tranche B 2LN, term loan 4% 4/1/18 (e) | 11,714 | 11,744 | ||
Tranche B 3LN, term loan 4% 10/9/19 (e) | 29,562 | 29,562 | ||
Tranche B, term loan 4% 4/1/18 (e) | 108,374 | 108,645 | ||
Dynegy, Inc. Tranche B 2LN, term loan 4% 4/23/20 (e) | 25,765 | 25,765 | ||
EquiPower Resources Holdings LLC: | ||||
Tranche B 1LN, term loan 4.25% 12/21/18 (e) | 23,750 | 23,780 | ||
Tranche C, term loan 4.25% 12/31/19 (e) | 32,210 | 32,210 | ||
Essential Power LLC Tranche B, term loan 4.75% 8/8/19 (e) | 16,032 | 16,032 | ||
InterGen NV Tranche B, term loan 5.5% 6/13/20 (e) | 33,662 | 33,999 | ||
La Frontera Generation, LLC Tranche B, term loan 4.5% 9/30/20 (e) | 82,393 | 82,393 | ||
NRG Energy, Inc. Tranche B, term loan 2.75% 7/1/18 (e) | 83,589 | 82,544 | ||
Tempus Public Foundation Generation Holdings LLC Tranche B, term loan 4.75% 12/31/17 (e) | 23,496 | 22,615 | ||
The AES Corp. Tranche B, term loan 3.75% 6/1/18 (e) | 65,286 | 65,534 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Electric Utilities - continued | ||||
Topaz Power Holdings, LLC Tranche B, term loan 5.25% 2/26/20 (e) | $ 35,787 | $ 34,892 | ||
TXU Energy LLC Tranche B, term loan: | ||||
3.7369% 10/10/14 (e) | 10,052 | 7,602 | ||
4.7369% 10/10/17 (e) | 66,622 | 50,383 | ||
USIC Holdings, Inc. Tranche B, term loan 4% 7/10/20 (e) | 16,376 | 16,172 | ||
Windsor Financing, LLC Tranche B, term loan 6.25% 12/5/17 (e) | 2,772 | 2,841 | ||
| 848,132 | |||
Energy - 4.2% | ||||
Alon U.S.A. Partners LP term loan 9.25% 11/26/18 (e) | 8,778 | 9,107 | ||
Atlantic Power Ltd. Partnership Tranche B LN, term loan 4.75% 2/24/21 (e) | 35,915 | 36,050 | ||
Atlas Energy LP Tranche B, term loan 6.5% 7/31/19 (e) | 8,069 | 8,211 | ||
Empire Generating Co. LLC: | ||||
Tranche B, term loan 5.25% 3/14/21 (e) | 29,675 | 29,786 | ||
Tranche C, term loan 5.25% 3/14/21 (e) | 2,070 | 2,078 | ||
EP Energy LLC term loan 4.5% 4/30/19 (e) | 1,500 | 1,500 | ||
Everest Acquisition LLC Tranche B 3LN, term loan 3.5% 5/24/18 (e) | 42,333 | 42,069 | ||
ExGen Renewables I, LLC Tranche B term loan 5.25% 2/6/21 (e) | 16,154 | 16,356 | ||
Fieldwood Energy, LLC: | ||||
Tranche 2LN, term loan 8.375% 9/30/20 (e) | 140,755 | 144,978 | ||
Tranche B 1LN, term loan 3.875% 9/30/18 (e) | 39,825 | 39,725 | ||
GIM Channelview Cogeneration LLC Tranche B, term loan 4.25% 5/8/20 (e) | 12,401 | 12,417 | ||
MRC Global, Inc. Tranche B, term loan 4.75% 11/9/19 (e) | 44,750 | 44,920 | ||
Northeast Wind Capital II, LLC Tranche B, term loan 5% 11/14/20 (e) | 14,467 | 14,612 | ||
Offshore Group Investment Ltd. Tranche B, term loan 5% 10/25/17 (e) | 18,546 | 18,407 | ||
Pacific Drilling SA Tranche B, term loan 4.5% 6/3/18 (e) | 24,470 | 24,439 | ||
Panda Sherman Power, LLC term loan 9% 9/14/18 (e) | 5,000 | 5,113 | ||
Panda Temple Power, LLC term loan 7.25% 4/3/19 (e) | 11,000 | 11,289 | ||
Ruby Western Pipeline Holdings LLC Tranche B, term loan 3.5% 3/27/20 (e) | 30,509 | 30,432 | ||
Samson Investment Co. Tranche B 2LN, term loan 5% 9/25/18 (e) | 42,280 | 42,069 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Energy - continued | ||||
Seadrill Operating LP Tranche B, term loan 4% 2/21/21 (e) | $ 19,950 | $ 19,726 | ||
Sheridan Investment Partners I term loan 4.25% 12/16/20 (e) | 51,090 | 51,090 | ||
Sheridan Production Partners I: | ||||
Tranche A, term loan 4.25% 12/16/20 (e) | 7,107 | 7,107 | ||
Tranche M, term loan 4.25% 12/16/20 (e) | 2,651 | 2,651 | ||
TPF II LC LLC Tranche B, term loan 6.5% 8/21/19 (e) | 26,394 | 26,624 | ||
Vantage Drilling Co. Tranche B, term loan 5.75% 3/28/19 (e) | 14,850 | 14,776 | ||
Western Refining, Inc. Tranche B, term loan 4.25% 11/12/20 (e) | 26,289 | 26,355 | ||
| 681,887 | |||
Entertainment/Film - 1.1% | ||||
AMC Entertainment, Inc. Tranche B, term loan 3.5% 4/30/20 (e) | 24,762 | 24,731 | ||
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. Tranche B, term loan 3% 1/31/21 (e) | 26,660 | 26,560 | ||
Cinemark U.S.A., Inc. Tranche B, term loan 3.16% 12/18/19 (e) | 14,713 | 14,731 | ||
Digital Cinema Implementation Partners,LLC Tranche B, term loan 3.25% 5/17/21 (e) | 62,509 | 61,884 | ||
Live Nation Entertainment, Inc. Tranche B, term loan 3.5% 8/16/20 (e) | 19,358 | 19,213 | ||
William Morris Endeavor Entertainment, LLC. Tranche B 1LN, term loan 5/1/21 (g) | 35,000 | 34,825 | ||
| 181,944 | |||
Environmental - 0.7% | ||||
ADS Waste Holdings, Inc. Tranche B 2LN, term loan 3.75% 10/9/19 (e) | 35,550 | 35,372 | ||
Darling International, Inc. Tranche B, term loan 3.25% 1/6/21 (e) | 22,085 | 21,975 | ||
Tervita Corp. Tranche B 1LN, term loan 6.25% 5/15/18 (e) | 24,767 | 24,427 | ||
The Brickman Group, Ltd.: | ||||
Tranche 2LN, term loan 7.5% 12/18/21 (e) | 5,690 | 5,775 | ||
Tranche B 1LN, term loan 4% 12/18/20 (e) | 21,676 | 21,621 | ||
WTG Holdings III Corp. Tranche B 1LN, term loan 4.75% 1/15/21 (e) | 10,973 | 10,945 | ||
| 120,115 | |||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Food & Drug Retail - 1.4% | ||||
Albertson's LLC: | ||||
Tranche B 1LN, term loan 4.25% 3/21/16 (e) | $ 17,676 | $ 17,676 | ||
Tranche B 2LN, term loan 4.75% 3/21/19 (e) | 9,536 | 9,547 | ||
Ferrara Candy Co., Inc. Tranche B, term loan 7.5% 6/18/18 (e) | 21,582 | 20,287 | ||
Performance Food Group, Inc. Tranche 2LN, term loan 6.25% 11/14/19 (e) | 7,343 | 7,416 | ||
PRA Holdings, Inc. Tranche B, term loan 4.5% 9/23/20 (e) | 21,890 | 21,616 | ||
Rite Aid Corp.: | ||||
Tranche 2 LN2, term loan 4.875% 6/21/21 (e) | 25,210 | 25,462 | ||
Tranche 2LN, term loan 5.75% 8/21/20 (e) | 13,590 | 13,879 | ||
Tranche B 7LN, term loan 3.5% 2/21/20 (e) | 48,136 | 48,076 | ||
Roundys Supermarket, Inc. Tranche B LN, term loan 5.75% 3/3/21 (e) | 20,000 | 20,025 | ||
Sprouts Farmers Market LLC Tranche B, term loan 4% 4/23/20 (e) | 23,124 | 23,126 | ||
SUPERVALU, Inc. Tranche B, term loan 4.5% 3/21/19 (e) | 14,729 | 14,674 | ||
| 221,784 | |||
Food/Beverage/Tobacco - 3.8% | ||||
AdvancePierre Foods, Inc. Tranche 2LN, term loan 9.5% 10/10/17 (e) | 3,000 | 2,918 | ||
Arysta Lifescience SPC LLC: | ||||
Tranche B 1LN, term loan 4.5% 5/29/20 (e) | 42,677 | 42,624 | ||
Tranche B 2LN, term loan 8.25% 11/30/20 (e) | 25,000 | 25,438 | ||
Big Heart Pet Brands Tranche B LN, term loan 3.5% 3/8/20 (e) | 50,000 | 49,375 | ||
H.J. Heinz Co.: | ||||
Tranche B 1LN, term loan 3.25% 6/7/19 (e) | 24,813 | 24,844 | ||
Tranche B 2LN, term loan 3.5% 6/7/20 (e) | 402,350 | 404,350 | ||
JBS U.S.A. LLC Tranche B, term loan 3.75% 5/25/18 (e) | 19,242 | 19,242 | ||
Michael Foods, Inc. Tranche B, term loan 4.25% 2/25/18 (e) | 8,671 | 8,671 | ||
OSI Restaurant Partners LLC Tranche B, term loan 3.5% 10/26/19 (e) | 49,333 | 49,241 | ||
| 626,703 | |||
Gaming - 5.7% | ||||
Bally Technologies, Inc. Tranche B, term loan 4.25% 11/25/20 (e) | 29,581 | 29,618 | ||
Boyd Gaming Corp. Tranche B, term loan 4% 8/14/20 (e) | 26,498 | 26,498 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Gaming - continued | ||||
Caesars Entertainment Resort Properties LLC Tranche B 1LN, term loan 7% 10/11/20 (e) | $ 258,260 | $ 259,551 | ||
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 4/10/21 (g) | 96,605 | 96,363 | ||
CityCenter Holdings LLC Tranche B, term loan 5% 10/16/20 (e) | 73,162 | 73,527 | ||
Golden Nugget, Inc. Tranche B, term loan: | ||||
5.5% 11/21/19 (e) | 46,238 | 47,221 | ||
5.5% 11/21/19 (e) | 19,816 | 20,237 | ||
Graton Economic Development Authority Tranche B, term loan 9% 8/22/18 (e) | 9,000 | 9,383 | ||
Las Vegas Sands LLC Tranche B, term loan 3.25% 12/19/20 (e) | 59,850 | 59,476 | ||
MGM Mirage, Inc. Tranche B, term loan 3.5% 12/20/19 (e) | 109,491 | 108,812 | ||
Mohegan Tribal Gaming Authority Tranche B, term loan 5.5% 11/19/19 (e) | 29,770 | 30,187 | ||
Motor City Casino Tranche B, term loan 5% 3/1/17 (e) | 4,336 | 4,309 | ||
Pinnacle Entertainment, Inc. Tranche B 2LN, term loan 3.75% 8/13/20 (e) | 29,161 | 29,089 | ||
Scientific Games Corp. Tranche B, term loan 4.25% 10/18/20 (e) | 78,803 | 78,605 | ||
Seminole Tribe of Florida Tranche B, term loan 3% 4/29/20 (e) | 13,680 | 13,646 | ||
Shingle Springs Tribal Gaming Authority Tranche B, term loan 6.25% 8/29/19 (e) | 8,038 | 8,239 | ||
Station Casinos LLC Tranche B, term loan 4.25% 3/1/20 (e) | 16,300 | 16,280 | ||
Yonkers Racing Corp. Tranche B 1LN, term loan 4.25% 8/20/19 (e) | 14,429 | 14,140 | ||
| 925,181 | |||
Healthcare - 11.6% | ||||
Akorn, Inc. Tranche B, term loan 4.5% 4/17/21 (e) | 24,415 | 24,415 | ||
Alkermes, Inc. term loan 3.5% 9/25/19 (e) | 13,573 | 13,557 | ||
Biomet, Inc. Term B 2LN, term loan 3.6612% 7/25/17 (e) | 41,576 | 41,630 | ||
Carestream Health, Inc. Tranche B 1LN, term loan 5% 6/7/19 (e) | 70,307 | 70,658 | ||
Community Health Systems, Inc.: | ||||
Tranche D, term loan 4.25% 1/27/21 (e) | 334,876 | 335,713 | ||
Tranche E, term loan 3.4686% 1/25/17 (e) | 82,663 | 82,456 | ||
DaVita HealthCare Partners, Inc.: | ||||
Tranche A, term loan 2.91% 10/20/15 (e) | 38,978 | 38,880 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Healthcare - continued | ||||
DaVita HealthCare Partners, Inc.: - continued | ||||
Tranche B 2LN, term loan 4% 11/1/19 (e) | $ 55,065 | $ 55,272 | ||
Tranche B, term loan 4.5% 10/20/16 (e) | 84,685 | 84,897 | ||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (e) | 76,978 | 76,208 | ||
Emergency Medical Services Corp. Tranche B, term loan 4% 5/25/18 (e) | 36,553 | 36,621 | ||
Grifols, S.A. Tranche B, term loan 3.1503% 2/27/21 (e) | 50,000 | 49,875 | ||
HCA Holdings, Inc.: | ||||
Tranche A 4LN, term loan 2.6503% 2/2/16 (e) | 292,736 | 292,005 | ||
Tranche B 4LN, term loan 2.9836% 5/1/18 (e) | 35,870 | 35,827 | ||
Tranche B 5LN, term loan 2.9003% 3/31/17 (e) | 155,891 | 155,891 | ||
HCR Healthcare LLC Tranche B, term loan 5% 4/6/18 (e) | 36,145 | 35,422 | ||
IASIS Healthcare LLC Tranche B 2LN, term loan 4.5% 5/3/18 (e) | 34,563 | 34,563 | ||
Ikaria, Inc.: | ||||
Tranche 2LN, term loan 8.75% 2/12/22 (e) | 6,510 | 6,576 | ||
Tranche B 1LN, term loan 5% 2/12/21 (e) | 40,680 | 40,782 | ||
Jazz Pharmaceuticals, Inc. Tranche B 2LN, term loan 3.25% 6/12/18 (e) | 8,997 | 8,986 | ||
Millennium Labs, LLC Tranche B, term loan 5.25% 4/16/21 (e) | 58,330 | 58,111 | ||
MModal, Inc. Tranche B, term loan 9% 8/17/19 (e) | 6,511 | 5,144 | ||
MPH Acquisition Holdings LLC Tranche B, term loan 4% 3/31/21 (e) | 63,626 | 63,308 | ||
National Mentor Holdings, Inc. Tranche B, term loan 4.75% 1/31/21 (e) | 19,940 | 19,940 | ||
Quintiles Transnational Corp. Tranche B 3LN, term loan 3.75% 6/8/18 (e) | 25,000 | 24,906 | ||
Rural/Metro Corp. Tranche B, term loan 9% 6/30/18 (e) | 5,093 | 4,810 | ||
Salix Pharmaceuticals Ltd. Tranche B, term loan 4.25% 1/2/20 (e) | 29,205 | 29,351 | ||
Sheridan Healthcare, Inc. Tranche 1LN, term loan 4.5% 6/29/18 (e) | 6,883 | 6,874 | ||
Sheridan Holdings, Inc. Trache 2LN, term loan 8.25% 12/18/21 (e) | 16,185 | 16,348 | ||
Skilled Healthcare Group, Inc. term loan 6.75% 4/9/16 (e) | 16,382 | 16,300 | ||
Team Health, Inc. Tranche B, term loan 3.75% 6/29/18 (e) | 6,808 | 6,808 | ||
U.S. Renal Care, Inc.: | ||||
Tranche 2LN, term loan 8.5% 1/3/20 (e) | 5,545 | 5,587 | ||
Tranche B 2LN, term loan 4.25% 7/3/19 (e) | 30,064 | 30,026 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Healthcare - continued | ||||
Universal Health Services, Inc. Tranche A, term loan 1.7321% 11/15/15 (e) | $ 10,393 | $ 10,367 | ||
Valeant Pharmaceuticals International: | ||||
Tranche BC 2LN, term loan 3.75% 12/11/19 (e) | 30,535 | 30,535 | ||
Tranche BD 2LN, term loan 3.75% 2/13/19 (e) | 51,511 | 51,447 | ||
| 1,900,096 | |||
Homebuilders/Real Estate - 0.7% | ||||
CBRE Group, Inc. Tranche B, term loan 2.9018% 3/28/21 (e) | 20,006 | 19,906 | ||
RE/MAX LLC Tranche B, term loan 4% 7/31/20 (e) | 6,502 | 6,502 | ||
Realogy Corp. Credit-Linked Deposit 4.4463% 10/10/16 (e) | 3,324 | 3,316 | ||
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 (e) | 81,182 | 80,776 | ||
| 110,500 | |||
Hotels - 3.3% | ||||
Four Seasons Holdings, Inc.: | ||||
Tranche 2LN, term loan 6.25% 12/27/20 (e) | 15,420 | 15,613 | ||
Tranche B 1LN, term loan 3.5% 6/27/20 (e) | 51,140 | 50,756 | ||
Hilton Worldwide Finance, LLC Tranche B, term loan 3.5% 10/25/20 (e) | 297,779 | 296,662 | ||
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (e) | 134,990 | 134,315 | ||
Playa Resorts Holding BV Tranche B, term loan 4% 8/9/19 (e) | 40,309 | 40,410 | ||
| 537,756 | |||
Insurance - 0.2% | ||||
CNO Financial Group, Inc. Tranche B 2LN, term loan 3.75% 9/28/18 (e) | 16,861 | 16,882 | ||
HUB International Ltd. Tranche B 1LN, term loan 4.25% 10/2/20 (e) | 17,500 | 17,456 | ||
| 34,338 | |||
Leisure - 0.7% | ||||
ClubCorp Club Operations, Inc. Tranche B, term loan 4% 7/24/20 (e) | 23,912 | 23,792 | ||
Planet Fitness Holdings, LLC. Tranche B, term loan 4.75% 3/31/21 (e) | 19,750 | 19,701 | ||
SeaWorld Parks & Entertainment, Inc. Tranche B 2LN, term loan 3% 5/14/20 (e) | 46,707 | 45,717 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Leisure - continued | ||||
Seminole Hard Rock Entertainment, Inc. Tranche B, term loan 3.5% 5/14/20 (e) | $ 9,612 | $ 9,540 | ||
Six Flags, Inc. Tranche B, term loan 3.5011% 12/20/18 (e) | 14,707 | 14,652 | ||
| 113,402 | |||
Metals/Mining - 4.2% | ||||
Alpha Natural Resources, Inc. Tranche B, term loan 3.5% 5/22/20 (e) | 22,600 | 21,781 | ||
Ameriforge Group, Inc.: | ||||
Tranche B 1LN, term loan 5% 1/25/20 (e) | 12,569 | 12,632 | ||
Tranche B 2LN, term loan 8.75% 1/25/21 (e) | 3,000 | 3,060 | ||
Doncasters Group, LLC Tranche B 1LN, term loan 4.5% 4/9/20 (e) | 28,500 | 28,429 | ||
Fairmount Minerals Ltd. Tranche B 2LN, term loan 4.5% 9/5/19 (e) | 21,604 | 21,658 | ||
Fortescue Metals Group Ltd. Tranche B, term loan 4.25% 6/30/19 (e) | 279,483 | 277,736 | ||
Murray Energy Corp. Tranche B 1LN, term loan 5.25% 12/5/19 (e) | 51,810 | 52,328 | ||
Novelis, Inc. Tranche B, term loan 3.75% 3/10/17 (e) | 50,072 | 50,012 | ||
Oxbow Carbon LLC: | ||||
Tranche 2LN, term loan 8% 1/19/20 (e) | 20,000 | 20,300 | ||
Tranche B 1LN, term loan 4.25% 7/19/19 (e) | 12,359 | 12,359 | ||
Peabody Energy Corp. Tranche B, term loan 4.25% 9/24/20 (e) | 69,650 | 69,650 | ||
U.S. Silica Co. Tranche B, term loan 4% 7/23/20 (e) | 24,277 | 24,277 | ||
Walter Energy, Inc. Tranche B, term loan 7.25% 4/1/18 (e) | 96,873 | 92,998 | ||
| 687,220 | |||
Paper - 0.0% | ||||
Bear Island Paper Co. LLC Tranche B 2LN, term loan 13% 9/13/17 | 232 | 185 | ||
Publishing/Printing - 2.0% | ||||
Cengage Learning Acquisitions, Inc. Tranche 1LN, term loan 7% 3/31/20 (e) | 50,410 | 51,166 | ||
Cenveo Corp. Tranche B, term loan 6.25% 2/13/17 (e) | 8,529 | 8,507 | ||
Dex Media East LLC term loan 6% 12/31/16 (e) | 5,757 | 4,059 | ||
Dex Media West LLC/Dex Media West Finance Co. term loan 8% 12/31/16 (e) | 1,312 | 1,056 | ||
Getty Images, Inc. Tranche B, term loan 4.75% 10/18/19 (e) | 88,956 | 85,064 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Publishing/Printing - continued | ||||
Harland Clarke Holdings Corp. Tranche B 4LN, term loan 6% 8/4/19 (e) | $ 17,584 | $ 17,628 | ||
Houghton Mifflin Harcourt Publishing, Inc. Tranche B, term loan 4.25% 5/22/18 (e) | 19,860 | 19,885 | ||
McGraw-Hill Global Education Holdings, LLC Tranche B, term loan 5.75% 3/22/19 (e) | 16,096 | 16,207 | ||
Newsday LLC Tranche A, term loan 3.6503% 10/12/16 (e) | 11,077 | 11,082 | ||
Springer Science+Business Media Deutschland GmbH Tranche B 2LN, term loan 5% 8/14/20 (e) | 109,900 | 110,038 | ||
| 324,692 | |||
Restaurants - 0.6% | ||||
Burger King Corp. Tranche B, term loan 3.75% 9/28/19 (e) | 23,191 | 23,191 | ||
Dunkin Brands, Inc. Tranche B 4LN, term loan 3.25% 2/7/21 (e) | 55,000 | 54,519 | ||
Focus Brands, Inc. Trancher B 1LN, term loan 4.2525% 2/21/18 (e) | 4,781 | 4,781 | ||
Landry's Restaurants, Inc. Tranche B, term loan 4% 4/24/18 (e) | 9,371 | 9,364 | ||
NPC International, Inc. Tranche B, term loan 4% 12/28/18 (e) | 4,955 | 4,949 | ||
| 96,804 | |||
Services - 3.6% | ||||
ARAMARK Corp.: | ||||
Credit-Linked Deposit 3.7306% 7/26/16 (e) | 3,579 | 3,552 | ||
Tranche F, term loan 3.25% 2/24/21 (e) | 75,000 | 74,063 | ||
3.7306% 7/26/16 (e) | 4,666 | 4,654 | ||
Avis Budget Group, Inc. Tranche B, term loan 3% 3/15/19 (e) | 14,850 | 14,794 | ||
Bright Horizons Family Solutions, Inc. Tranche B, term loan 4% 1/30/20 (e) | 23,325 | 23,296 | ||
Coinmach Service Corp. Tranche B, term loan 4.25% 11/14/19 (e) | 51,002 | 50,938 | ||
EFS Cogen Holdings I LLC Tranche B, term loan 3.75% 12/17/20 (e) | 19,687 | 19,736 | ||
Filtration Group Corp.: | ||||
Tranche 2LN, term loan 8.25% 11/21/21 (e) | 5,500 | 5,589 | ||
Tranche B 1LN, term loan 4.5% 11/21/20 (e) | 7,875 | 7,905 | ||
Hertz Corp.: | ||||
Tranche B 2LN, term loan 3% 3/11/18 (e) | 62,671 | 62,201 | ||
Tranche B, term loan 3.75% 3/11/18 (e) | 22,632 | 22,632 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Services - continued | ||||
Interactive Data Corp. Tranche B 2LN, term loan 3.75% 2/11/18 (e) | $ 32,496 | $ 32,577 | ||
Laureate Education, Inc. Tranche B, term loan 5% 6/16/18 (e) | 97,276 | 96,060 | ||
Lineage Logistics Holdings, LLC. Tranche B, term loan 4.5% 4/7/21 (e) | 53,000 | 52,205 | ||
Nord Anglia Education Tranche B, term loan 4.5% 3/21/21 (e) | 23,000 | 22,971 | ||
Redtop Acquisitions Ltd.: | ||||
Tranche 2LN, term loan 8.25% 6/3/21 (e) | 4,988 | 5,137 | ||
Tranche B 1LN, term loan 4.5% 12/3/20 (e) | 11,007 | 11,049 | ||
ServiceMaster Co.: | ||||
term loan 4.25% 1/31/17 (e) | 55,350 | 55,280 | ||
Tranche B2, term loan 4.41% 1/31/17 (e) | 21,610 | 21,583 | ||
The Geo Group, Inc. Tranche B, term loan 3.25% 4/3/20 (e) | 5,940 | 5,933 | ||
| 592,155 | |||
Shipping - 0.7% | ||||
CEVA Group PLC: | ||||
Tranche B, term loan 6.5% 3/19/21 (e) | 24,066 | 23,705 | ||
Tranche C, term loan 6.5% 3/19/21 (e) | 8,944 | 8,809 | ||
Harvey Gulf International Tranche B, term loan 5.5% 6/18/20 (e) | 33,353 | 32,769 | ||
Swift Transportation Co. LLC Tranche B 2LN, term loan 4% 12/21/17 (e) | 17,561 | 17,605 | ||
YRC Worldwide, Inc. Tranche B, term loan 8% 2/13/19 (e) | 27,431 | 27,637 | ||
| 110,525 | |||
Super Retail - 3.2% | ||||
Academy Ltd. Tranche B, term loan 4.5% 8/3/18 (e) | 27,117 | 27,117 | ||
Bass Pro Group LLC Tranche B, term loan 3.75% 11/20/19 (e) | 24,285 | 24,225 | ||
BJ's Wholesale Club, Inc.: | ||||
Tranche 2LN, term loan 8.5% 3/31/20 (e) | 20,110 | 20,638 | ||
Tranche B 1LN, term loan 4.5% 9/26/19 (e) | 62,808 | 62,808 | ||
General Nutrition Centers, Inc. Tranche B, term loan 3.25% 3/4/19 (e) | 57,955 | 57,448 | ||
J. Crew Group, Inc. Tranche B LN, term loan 4% 3/5/21 (e) | 45,160 | 44,880 | ||
JC Penney Corp., Inc. Tranche B, term loan 6% 5/22/18 (e) | 83,047 | 82,216 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Super Retail - continued | ||||
PETCO Animal Supplies, Inc. term loan 4% 11/24/17 (e) | $ 40,357 | $ 40,357 | ||
Pilot Travel Centers LLC: | ||||
Tranche B 2LN, term loan 4.25% 8/7/19 (e) | 19,069 | 19,189 | ||
Tranche B, term loan 3.75% 3/30/18 (e) | 1,909 | 1,916 | ||
Sears Holdings Corp. Tranche ABL, term loan 5.5% 6/30/18 (e) | 128,254 | 129,536 | ||
Serta Simmons Holdings, LLC Tranche B, term loan 4.25% 10/1/19 (e) | 12,605 | 12,589 | ||
Sports Authority, Inc. Tranche B, term loan 7.5% 11/16/17 (e) | 7,416 | 7,398 | ||
| 530,317 | |||
Technology - 10.5% | ||||
Activision Blizzard, Inc. Tranche B, term loan 3.25% 10/11/20 (e) | 132,210 | 132,210 | ||
Ancestry.com, Inc.: | ||||
Tranche B 2LN, term loan 4% 5/15/18 (e) | 9,790 | 9,790 | ||
Tranche B, term loan 4.5% 12/28/18 (e) | 32,415 | 32,496 | ||
Applied Systems, Inc.: | ||||
Tranche B 1LN, term loan 4.25% 1/23/21 (e) | 14,254 | 14,236 | ||
Tranche B 2LN, term loan 7.5% 1/23/22 (e) | 3,630 | 3,675 | ||
Avago Technologies, Inc. Tranche B, term loan 4/16/21 (g) | 63,785 | 64,104 | ||
BMC Software Finance, Inc. Tranche B, term loan: | ||||
5% 9/10/20 (e) | 32,050 | 31,849 | ||
5% 9/10/20 (e) | 188,981 | 188,036 | ||
Ceridian Corp. Tranche B, term loan 4.4018% 5/9/17 (e) | 24,546 | 24,546 | ||
CompuCom Systems, Inc. Tranche B, term loan 4.25% 5/9/20 (e) | 36,544 | 36,453 | ||
Computer Discount Warehouse (CDW) LLC, Tranche B, term loan 3.25% 4/29/20 (e) | 57,207 | 56,563 | ||
Dealer Computer Services, Inc. Tranche BA 2LN, term loan 2.1503% 4/21/16 (e) | 13,808 | 13,877 | ||
Dell International LLC Tranche B, term loan 4.5% 4/29/20 (e) | 200,993 | 200,751 | ||
Fibertech Networks, LLC Tranche B 1LN, term loan 4% 12/18/19 (e) | 18,010 | 17,987 | ||
First Data Corp.: | ||||
term loan: | ||||
3.6523% 3/24/17 (e) | 118,529 | 117,937 | ||
4.1523% 3/24/18 (e) | 99,079 | 98,584 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Technology - continued | ||||
First Data Corp.: - continued | ||||
Tranche B, term loan 4.1523% 9/24/18 (e) | $ 53,162 | $ 52,896 | ||
Freescale Semiconductor, Inc. Tranche B 4LN, term loan 4.25% 3/1/20 (e) | 76,369 | 76,273 | ||
Generac Power Systems, Inc. Tranche B, term loan 3.25% 5/31/20 (e) | 67,872 | 67,363 | ||
Genesys Telecommunications Laboratories, Inc. Tranche B, term loan 4.5% 11/13/20 (e) | 5,057 | 5,070 | ||
Genpact Ltd. Tranche B, term loan 3.5% 8/30/19 (e) | 13,826 | 13,791 | ||
Go Daddy Operating Co., LLC Tranche B 3LN, term loan 4% 12/17/18 (e) | 15,890 | 15,830 | ||
GXS Group, Inc. Tranche B, term loan 3.25% 1/16/21 (e) | 16,958 | 16,915 | ||
Infor U.S., Inc.: | ||||
Tranche B 3LN, term loan 3.75% 6/3/20 (e) | 24,675 | 24,490 | ||
Tranche B 5LN, term loan 3.75% 6/3/20 (e) | 58,853 | 58,488 | ||
Information Resources, Inc. Tranche B, term loan 4.75% 9/30/20 (e) | 19,900 | 19,926 | ||
ION Trading Technologies Ltd.: | ||||
Tranche 1LN, term loan 4.5% 5/22/20 (e) | 39,881 | 39,682 | ||
Tranche 2LN, term loan 8.25% 5/22/21 (e) | 13,454 | 13,487 | ||
Kronos, Inc.: | ||||
Tranche 2LN, term loan 9.75% 4/30/20 (e) | 29,845 | 30,743 | ||
Tranche B 1LN, term loan 4.5% 10/30/19 (e) | 41,647 | 41,491 | ||
Nuance Communications, Inc. Tranche C, term loan 2.91% 8/7/19 (e) | 28,604 | 28,103 | ||
Renaissance Learning, Inc.: | ||||
Tranche 1LN, term loan 4.5% 4/9/21 (e) | 24,500 | 24,378 | ||
Tranche 2LN, term loan 8% 4/9/22 (e) | 11,500 | 11,443 | ||
Rovi Corp. Tranche A, term loan 2.66% 2/7/16 (e) | 3,006 | 2,991 | ||
Sophia L.P. Tranche B 1LN, term loan 4% 7/19/18 (e) | 7,478 | 7,525 | ||
SunGard Data Systems, Inc.: | ||||
Tranche C, term loan 3.9025% 2/28/17 (e) | 32,706 | 32,761 | ||
Tranche E, term loan 4% 3/8/20 (e) | 54,917 | 55,054 | ||
Syniverse Holdings, Inc. Tranche B, term loan: | ||||
4% 4/23/19 (e) | 9,598 | 9,574 | ||
4% 4/23/19 (e) | 19,390 | 19,342 | ||
| 1,710,710 | |||
Telecommunications - 5.0% | ||||
Altice Financing SA Tranche B, term loan 5.5% 6/24/19 (e) | 160,664 | 162,873 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Telecommunications - continued | ||||
Consolidated Communications, Inc. Tranche B, term loan 4.25% 12/23/20 (e) | $ 14,484 | $ 14,484 | ||
Crown Castle Operating Co. Tranche B 2LN, term loan 3.25% 1/31/21 (e) | 104,997 | 104,997 | ||
Digicel International Finance Ltd. Tranche D 1LN, term loan 3.75% 3/31/17 (e) | 9,000 | 8,955 | ||
DigitalGlobe, Inc. Tranche B, term loan 3.75% 1/31/20 (e) | 14,464 | 14,482 | ||
FairPoint Communications, Inc. Tranche B, term loan 7.5% 2/14/19 (e) | 18,322 | 18,872 | ||
Genesys Telecom Holdings U.S., Inc. Tranche B, term loan 4% 2/8/20 (e) | 24,812 | 24,595 | ||
Integra Telecom Holdings, Inc. Tranche B, term loan 5.25% 2/22/19 (e) | 12,870 | 12,902 | ||
Intelsat Jackson Holdings SA Tranche B 2LN, term loan 3.75% 6/30/19 (e) | 132,070 | 132,242 | ||
Level 3 Financing, Inc.: | ||||
Tranche B 3LN, term loan 4% 8/1/19 (e) | 13,330 | 13,363 | ||
Tranche B 4LN, term loan 4% 1/15/20 (e) | 85,500 | 85,714 | ||
LTS Buyer LLC: | ||||
Tranche 2LN, term loan 8% 4/11/21 (e) | 3,868 | 3,897 | ||
Tranche B 1LN, term loan 4% 4/11/20 (e) | 33,416 | 33,249 | ||
SBA Senior Finance II, LLC term loan 3.25% 3/24/21 (e) | 35,000 | 34,825 | ||
Securus Technologies Holdings, Inc.: | ||||
Tranche 2LN, term loan 9% 4/30/21 (e) | 4,635 | 4,670 | ||
Tranche B 1LN, term loan 4.75% 4/30/20 (e) | 40,164 | 40,014 | ||
Telesat Holding, Inc. Tranche B, term loan 3.5% 3/28/19 (e) | 69,300 | 69,127 | ||
Windstream Corp. Tranche B 4LN, term loan 3.5% 1/23/20 (e) | 34,563 | 34,303 | ||
| 813,564 | |||
Textiles & Apparel - 0.3% | ||||
Party City Holdings, Inc. Tranche B LN, term loan 4% 7/27/19 (e) | 45,192 | 45,022 | ||
TOTAL BANK LOAN OBLIGATIONS (Cost $14,280,619) |
| |||
Nonconvertible Bonds - 6.9% | ||||
| Principal Amount (000s) | Value (000s) | ||
Air Transportation - 0.1% | ||||
Continental Airlines, Inc.: | ||||
6.125% 4/29/18 (c) | $ 3,000 | $ 3,195 | ||
9.25% 5/10/17 | 1,829 | 2,067 | ||
| 5,262 | |||
Automotive - 0.3% | ||||
General Motors Acceptance Corp. 2.4361% 12/1/14 (e) | 40,000 | 40,152 | ||
Banks & Thrifts - 1.0% | ||||
Ally Financial, Inc.: | ||||
2.9079% 7/18/16 (e) | 75,000 | 76,830 | ||
3.125% 1/15/16 | 4,000 | 4,080 | ||
4.625% 6/26/15 | 4,000 | 4,151 | ||
Bank of America Corp. 1.0536% 3/22/16 (e) | 5,000 | 5,033 | ||
GMAC LLC 2.4361% 12/1/14 (e) | 70,187 | 70,592 | ||
| 160,686 | |||
Broadcasting - 0.2% | ||||
AMC Networks, Inc. 4.75% 12/15/22 | 6,600 | 6,584 | ||
Clear Channel Communications, Inc. 9% 12/15/19 | 8,677 | 9,241 | ||
Starz LLC/Starz Finance Corp. 5% 9/15/19 | 9,000 | 9,326 | ||
Univision Communications, Inc. 6.75% 9/15/22 (c) | 5,368 | 5,905 | ||
| 31,056 | |||
Building Materials - 0.1% | ||||
CEMEX S.A.B. de CV 4.9765% 10/15/18 (c)(e) | 10,000 | 10,525 | ||
HD Supply, Inc. 7.5% 7/15/20 | 10,000 | 10,825 | ||
| 21,350 | |||
Cable TV - 0.5% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp.: | ||||
5.125% 2/15/23 | 17,065 | 16,660 | ||
5.25% 3/15/21 | 13,070 | 13,315 | ||
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (c) | 10,815 | 11,329 | ||
Lynx I Corp. 5.375% 4/15/21 (c) | 5,000 | 5,125 | ||
Numericable Group SA 4.875% 5/15/19 (c)(d) | 27,120 | 27,391 | ||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 5.5% 1/15/23 (c) | 7,000 | 7,070 | ||
Virgin Media Finance PLC 4.875% 2/15/22 | 2,000 | 1,815 | ||
| 82,705 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Capital Goods - 0.0% | ||||
Shale-Inland Holdings LLC/Shale-Inland Finance Corp. 8.75% 11/15/19 (c) | $ 3,000 | $ 3,090 | ||
Chemicals - 0.0% | ||||
Nufarm Australia Ltd. 6.375% 10/15/19 (c) | 5,000 | 5,163 | ||
Containers - 0.5% | ||||
Ardagh Packaging Finance PLC 7.375% 10/15/17 (c) | 5,439 | 5,765 | ||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc. 7.375% 10/15/17 (c) | 10,736 | 11,367 | ||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | ||||
5.75% 10/15/20 | 58,325 | 60,658 | ||
7.125% 4/15/19 | 5,000 | 5,275 | ||
| 83,065 | |||
Diversified Financial Services - 0.7% | ||||
CIT Group, Inc.: | ||||
4.75% 2/15/15 (c) | 14,000 | 14,368 | ||
5% 5/15/17 | 7,000 | 7,481 | ||
Citigroup, Inc. 1.1888% 7/25/16 (e) | 10,000 | 10,107 | ||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
3.5% 3/15/17 (c) | 18,720 | 18,860 | ||
4.875% 3/15/19 (c) | 15,000 | 15,206 | ||
International Lease Finance Corp.: | ||||
2.1834% 6/15/16 (e) | 29,485 | 29,780 | ||
3.875% 4/15/18 | 7,000 | 7,105 | ||
4.875% 4/1/15 | 4,000 | 4,125 | ||
6.25% 5/15/19 | 10,000 | 11,038 | ||
| 118,070 | |||
Diversified Media - 0.1% | ||||
Clear Channel Worldwide Holdings, Inc.: | ||||
6.5% 11/15/22 | 5,130 | 5,463 | ||
6.5% 11/15/22 | 13,870 | 14,841 | ||
| 20,304 | |||
Electric Utilities - 0.3% | ||||
Energy Future Intermediate Holding Co. LLC/Energy Future Intermediate Holding Finance, Inc.: | ||||
10% 12/1/20 (c) | 32,605 | 34,521 | ||
12% 3/1/22 (c) | 11,000 | 13,090 | ||
NRG Energy, Inc. 6.625% 3/15/23 | 4,000 | 4,180 | ||
| 51,791 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Energy - 0.4% | ||||
Access Midstream Partners LP/ACMP Finance Corp. 4.875% 5/15/23 | $ 7,000 | $ 7,088 | ||
Atlas Pipeline Partners LP/Atlas Pipeline Finance Corp.: | ||||
5.875% 8/1/23 | 3,000 | 2,963 | ||
6.625% 10/1/20 | 5,645 | 5,984 | ||
Chesapeake Energy Corp. 3.4677% 4/15/19 (e) | 29,720 | 30,017 | ||
Northern Tier Energy LLC/Northern Tier Finance Corp. 7.125% 11/15/20 | 4,000 | 4,290 | ||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 6.375% 8/1/22 | 4,492 | 4,806 | ||
Western Refining, Inc. 6.25% 4/1/21 | 5,305 | 5,517 | ||
| 60,665 | |||
Entertainment/Film - 0.1% | ||||
Cinemark U.S.A., Inc. 5.125% 12/15/22 | 3,185 | 3,185 | ||
Regal Entertainment Group 5.75% 2/1/25 | 3,090 | 3,059 | ||
| 6,244 | |||
Food/Beverage/Tobacco - 0.0% | ||||
ESAL GmbH 6.25% 2/5/23 (c) | 4,000 | 3,820 | ||
Gaming - 0.1% | ||||
MCE Finance Ltd. 5% 2/15/21 (c) | 10,000 | 9,975 | ||
Healthcare - 0.3% | ||||
Community Health Systems, Inc. 5.125% 8/15/18 | 10,755 | 11,306 | ||
DaVita HealthCare Partners, Inc. 5.75% 8/15/22 | 8,235 | 8,719 | ||
HCA Holdings, Inc. 3.75% 3/15/19 | 25,000 | 25,188 | ||
Tenet Healthcare Corp. 4.75% 6/1/20 | 8,680 | 8,723 | ||
| 53,936 | |||
Homebuilders/Real Estate - 0.1% | ||||
CBRE Group, Inc. 5% 3/15/23 | 17,990 | 18,125 | ||
Leisure - 0.0% | ||||
Six Flags Entertainment Corp. 5.25% 1/15/21 (c) | 4,000 | 4,040 | ||
Metals/Mining - 0.1% | ||||
CONSOL Energy, Inc. 8% 4/1/17 | 6,475 | 6,748 | ||
Peabody Energy Corp. 6% 11/15/18 | 5,000 | 5,313 | ||
| 12,061 | |||
Services - 0.1% | ||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 2.9861% 12/1/17 (c)(e) | 14,410 | 14,464 | ||
TransUnion Holding Co., Inc. 9.625% 6/15/18 pay-in-kind (e) | 3,000 | 3,161 | ||
| 17,625 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Technology - 0.4% | ||||
Brocade Communications Systems, Inc. 4.625% 1/15/23 | $ 7,235 | $ 6,928 | ||
First Data Corp. 6.75% 11/1/20 (c) | 39,130 | 41,771 | ||
NXP BV/NXP Funding LLC: | ||||
5.75% 2/15/21 (c) | 14,760 | 15,609 | ||
5.75% 3/15/23 (c) | 5,000 | 5,288 | ||
| 69,596 | |||
Telecommunications - 1.5% | ||||
Altice Financing SA: | ||||
6.5% 1/15/22 (c) | 7,240 | 7,584 | ||
7.875% 12/15/19 (c) | 4,000 | 4,368 | ||
Columbus International, Inc. 7.375% 3/30/21 (c) | 14,535 | 15,189 | ||
DigitalGlobe, Inc. 5.25% 2/1/21 | 3,905 | 3,807 | ||
Intelsat Jackson Holdings SA 6.625% 12/15/22 (Reg. S) | 20,000 | 20,550 | ||
iPCS, Inc. 3.4876% 5/1/14 pay-in-kind (e) | 69,150 | 69,150 | ||
Level 3 Financing, Inc. 3.8459% 1/15/18 (c)(e) | 15,000 | 15,225 | ||
Sprint Capital Corp.: | ||||
6.875% 11/15/28 | 4,000 | 3,950 | ||
6.9% 5/1/19 | 5,000 | 5,488 | ||
Sprint Communications, Inc.: | ||||
6% 11/15/22 | 30,000 | 30,225 | ||
9% 11/15/18 (c) | 3,000 | 3,656 | ||
Telesat Canada/Telesat LLC 6% 5/15/17 (c) | 3,000 | 3,101 | ||
Verizon Communications, Inc.: | ||||
1.7634% 9/15/16 (e) | 20,000 | 20,582 | ||
1.9841% 9/14/18 (e) | 35,000 | 36,954 | ||
| 239,829 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $1,084,851) |
|
Common Stocks - 0.2% | |||
Shares |
| ||
Broadcasting - 0.0% | |||
Cumulus Media, Inc. Class A (a) | 229,315 | 1,470 | |
ION Media Networks, Inc. (a) | 2,842 | 1,919 | |
| 3,389 | ||
Chemicals - 0.2% | |||
LyondellBasell Industries NV Class A | 245,943 | 22,750 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
Diversified Financial Services - 0.0% | |||
Newhall Holding Co. LLC Class A (a) | 289,870 | $ 638 | |
Electric Utilities - 0.0% | |||
Calpine Corp. (a) | 20,715 | 475 | |
Entertainment/Film - 0.0% | |||
MGM Holdings, Inc. (a) | 71,585 | 5,288 | |
Hotels - 0.0% | |||
Tropicana Las Vegas Hotel & Casino, Inc. Class A (a) | 48,650 | 1,771 | |
Paper - 0.0% | |||
White Birch Cayman Holdings Ltd. (a) | 12,570 | 0 | |
Publishing/Printing - 0.0% | |||
Houghton Mifflin Harcourt Co. warrants 6/22/19 (a)(i) | 13,699 | 21 | |
Telecommunications - 0.0% | |||
FairPoint Communications, Inc. (a) | 34,287 | 468 | |
TOTAL COMMON STOCKS (Cost $18,492) |
| ||
Other - 0.0% | |||
|
|
|
|
Other - 0.0% | |||
Idearc, Inc. Claim (a) | 1,888,944 |
| |
Money Market Funds - 6.8% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 1,112,943,074 |
| |
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $16,496,905) | 16,592,087 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (274,085) | ||
NET ASSETS - 100% | $ 16,318,002 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(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 $336,060,000 or 2.1% of net assets. |
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(f) 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. |
(g) The coupon rate will be determined upon settlement of the loan after period end. |
(h) Position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $3,960,000 and $4,019,000, respectively. The coupon rate will be determined at time of settlement. |
(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $21,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Houghton Mifflin Harcourt Co. warrants 6/22/19 | 6/22/12 | $ 26 |
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 | $ 726 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 10,469 | $ 6,758 | $ - | $ 3,711 |
Financials | 638 | - | - | 638 |
Materials | 22,750 | 22,750 | - | - |
Telecommunication Services | 468 | 468 | - | - |
Utilities | 475 | 475 | - | - |
Bank Loan Obligations | 14,325,734 | - | 14,220,249 | 105,485 |
Corporate Bonds | 1,118,610 | - | 1,118,610 | - |
Other | - | - | - | - |
Money Market Funds | 1,112,943 | 1,112,943 | - | - |
Total Investments in Securities: | $ 16,592,087 | $ 1,143,394 | $ 15,338,859 | $ 109,834 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 89.5% |
Luxembourg | 2.6% |
Australia | 2.2% |
Netherlands | 1.8% |
Germany | 1.0% |
Others (Individually Less Than 1%) | 2.9% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2014 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $15,383,962) | $ 15,479,144 |
|
Fidelity Central Funds (cost $1,112,943) | 1,112,943 |
|
Total Investments (cost $16,496,905) |
| $ 16,592,087 |
Cash |
| 124,084 |
Receivable for investments sold | 140,061 | |
Receivable for fund shares sold | 16,367 | |
Dividends receivable | 172 | |
Interest receivable | 60,723 | |
Distributions receivable from Fidelity Central Funds | 116 | |
Prepaid expenses | 13 | |
Total assets | 16,933,623 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 517,938 | |
Delayed delivery | 27,120 | |
Payable for fund shares redeemed | 48,863 | |
Distributions payable | 10,637 | |
Accrued management fee | 7,692 | |
Distribution and service plan fees payable | 1,200 | |
Other affiliated payables | 1,919 | |
Other payables and accrued expenses | 252 | |
Total liabilities | 615,621 | |
|
|
|
Net Assets | $ 16,318,002 | |
Net Assets consist of: |
| |
Paid in capital | $ 16,146,128 | |
Undistributed net investment income | 131,240 | |
Accumulated undistributed net realized gain (loss) on investments | (54,548) | |
Net unrealized appreciation (depreciation) on investments | 95,182 | |
Net Assets | $ 16,318,002 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2014 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 9.96 | |
|
|
|
Maximum offering price per share (100/97.25 of $9.96) | $ 10.24 | |
Class T: | $ 9.95 | |
|
|
|
Maximum offering price per share (100/97.25 of $9.95) | $ 10.23 | |
Class B: | $ 9.95 | |
|
|
|
Class C: | $ 9.96 | |
|
|
|
Fidelity Floating Rate High Income Fund: | $ 9.95 | |
|
|
|
Institutional Class: | $ 9.94 |
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.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended April 30, 2014 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 1,729 |
Interest |
| 324,203 |
Income from Fidelity Central Funds |
| 726 |
Total income |
| 326,658 |
|
|
|
Expenses | ||
Management fee | $ 45,515 | |
Transfer agent fees | 10,444 | |
Distribution and service plan fees | 7,315 | |
Accounting fees and expenses | 913 | |
Custodian fees and expenses | 92 | |
Independent trustees' compensation | 31 | |
Registration fees | 405 | |
Audit | 88 | |
Legal | 32 | |
Miscellaneous | 55 | |
Total expenses before reductions | 64,890 | |
Expense reductions | (31) | 64,859 |
Net investment income (loss) | 261,799 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 16,624 |
Change in net unrealized appreciation (depreciation) on investment securities |
| (20,313) |
Net gain (loss) | (3,689) | |
Net increase (decrease) in net assets resulting from operations | $ 258,110 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 261,799 | $ 410,895 |
Net realized gain (loss) | 16,624 | 72,218 |
Change in net unrealized appreciation (depreciation) | (20,313) | 9,078 |
Net increase (decrease) in net assets resulting | 258,110 | 492,191 |
Distributions to shareholders from net investment income | (252,800) | (375,589) |
Distributions to shareholders from net realized gain | (57,139) | (52,959) |
Total distributions | (309,939) | (428,548) |
Share transactions - net increase (decrease) | 904,590 | 4,793,436 |
Redemption fees | 356 | 916 |
Total increase (decrease) in net assets | 853,117 | 4,857,995 |
|
|
|
Net Assets | ||
Beginning of period | 15,464,885 | 10,606,890 |
End of period (including undistributed net investment income of $131,240 and undistributed net investment income of $122,241, respectively) | $ 16,318,002 | $ 15,464,885 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.79 | $ 9.31 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .153 | .310 | .340 | .317 | .391 | .354 |
Net realized and unrealized gain (loss) | - I | .070 | .195 | (.080) | .425 | 1.232 |
Total from investment operations | .153 | .380 | .535 | .237 | .816 | 1.586 |
Distributions from net investment income | (.147) | (.282) | (.325) | (.298) | (.287) | (.278) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.183) | (.331) | (.325) | (.298) | (.337) | (.278) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.96 | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.79 | $ 9.31 |
Total Return B, C, D | 1.54% | 3.89% | 5.60% | 2.46% | 8.96% | 20.31% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .99% A | .99% | .99% | 1.00% | 1.03% | 1.05% |
Expenses net of fee waivers, if any | .99% A | .99% | .99% | 1.00% | 1.03% | 1.05% |
Expenses net of all reductions | .99% A | .99% | .99% | 1.00% | 1.03% | 1.04% |
Net investment income (loss) | 3.08% A | 3.11% | 3.47% | 3.25% | 4.11% | 4.09% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,628 | $ 1,681 | $ 1,305 | $ 1,587 | $ 1,064 | $ 518 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .148 | .299 | .330 | .312 | .391 | .349 |
Net realized and unrealized gain (loss) | - I | .071 | .195 | (.070) | .416 | 1.228 |
Total from investment operations | .148 | .370 | .525 | .242 | .807 | 1.577 |
Distributions from net investment income | (.142) | (.272) | (.315) | (.293) | (.288) | (.279) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.178) | (.321) | (.315) | (.293) | (.338) | (.279) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.95 | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 |
Total Return B, C, D | 1.50% | 3.79% | 5.50% | 2.51% | 8.87% | 20.20% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.08% A | 1.09% | 1.09% | 1.05% | 1.02% | 1.04% |
Expenses net of fee waivers, if any | 1.08% A | 1.09% | 1.09% | 1.05% | 1.02% | 1.04% |
Expenses net of all reductions | 1.08% A | 1.09% | 1.09% | 1.05% | 1.02% | 1.04% |
Net investment income (loss) | 2.99% A | 3.01% | 3.37% | 3.19% | 4.12% | 4.10% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 269 | $ 272 | $ 241 | $ 271 | $ 242 | $ 143 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 | $ 7.99 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .126 | .256 | .288 | .266 | .341 | .305 |
Net realized and unrealized gain (loss) | - I | .071 | .195 | (.070) | .416 | 1.238 |
Total from investment operations | .126 | .327 | .483 | .196 | .757 | 1.543 |
Distributions from net investment income | (.120) | (.229) | (.273) | (.247) | (.238) | (.235) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.156) | (.278) | (.273) | (.247) | (.288) | (.235) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.95 | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 |
Total Return B, C, D | 1.27% | 3.35% | 5.05% | 2.03% | 8.30% | 19.74% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.52% A | 1.52% | 1.52% | 1.52% | 1.55% | 1.56% |
Expenses net of fee waivers, if any | 1.52% A | 1.52% | 1.52% | 1.52% | 1.55% | 1.55% |
Expenses net of all reductions | 1.52% A | 1.52% | 1.52% | 1.52% | 1.55% | 1.55% |
Net investment income (loss) | 2.55% A | 2.58% | 2.94% | 2.72% | 3.59% | 3.59% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 20 | $ 23 | $ 24 | $ 32 | $ 43 | $ 44 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.78 | $ 9.31 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .115 | .235 | .267 | .244 | .321 | .288 |
Net realized and unrealized gain (loss) | - I | .070 | .195 | (.070) | .415 | 1.235 |
Total from investment operations | .115 | .305 | .462 | .174 | .736 | 1.523 |
Distributions from net investment income | (.109) | (.207) | (.252) | (.225) | (.217) | (.215) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.145) | (.256) | (.252) | (.225) | (.267) | (.215) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.96 | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.78 | $ 9.31 |
Total Return B, C, D | 1.16% | 3.11% | 4.81% | 1.80% | 8.05% | 19.43% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.74% A | 1.74% | 1.74% | 1.74% | 1.76% | 1.78% |
Expenses net of fee waivers, if any | 1.74% A | 1.74% | 1.74% | 1.74% | 1.76% | 1.78% |
Expenses net of all reductions | 1.74% A | 1.74% | 1.74% | 1.74% | 1.76% | 1.78% |
Net investment income (loss) | 2.32% A | 2.35% | 2.72% | 2.50% | 3.38% | 3.35% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 942 | $ 960 | $ 806 | $ 852 | $ 622 | $ 335 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Floating Rate High Income Fund
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .167 | .337 | .368 | .345 | .418 | .377 |
Net realized and unrealized gain (loss) | - H | .071 | .195 | (.070) | .417 | 1.225 |
Total from investment operations | .167 | .408 | .563 | .275 | .835 | 1.602 |
Distributions from net investment income | (.161) | (.310) | (.353) | (.326) | (.316) | (.304) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.197) | (.359) | (.353) | (.326) | (.366) | (.304) |
Redemption fees added to paid in capital D | - H | .001 | - H | .001 | .001 | .002 |
Net asset value, end of period | $ 9.95 | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 |
Total Return B, C | 1.69% | 4.19% | 5.91% | 2.86% | 9.18% | 20.55% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .70% A | .70% | .71% | .71% | .73% | .75% |
Expenses net of fee waivers, if any | .70% A | .70% | .71% | .71% | .73% | .75% |
Expenses net of all reductions | .70% A | .70% | .71% | .71% | .73% | .75% |
Net investment income (loss) | 3.37% A | 3.39% | 3.75% | 3.53% | 4.41% | 4.39% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 9,775 | $ 8,882 | $ 5,720 | $ 5,399 | $ 3,566 | $ 2,354 |
Portfolio turnover rate F | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.97 | $ 9.92 | $ 9.71 | $ 9.77 | $ 9.29 | $ 7.99 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .164 | .332 | .363 | .341 | .415 | .379 |
Net realized and unrealized gain (loss) | - H | .071 | .196 | (.079) | .427 | 1.221 |
Total from investment operations | .164 | .403 | .559 | .262 | .842 | 1.600 |
Distributions from net investment income | (.158) | (.305) | (.349) | (.323) | (.313) | (.302) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.194) | (.354) | (.349) | (.323) | (.363) | (.302) |
Redemption fees added to paid in capital D | - H | .001 | - H | .001 | .001 | .002 |
Net asset value, end of period | $ 9.94 | $ 9.97 | $ 9.92 | $ 9.71 | $ 9.77 | $ 9.29 |
Total Return B, C | 1.66% | 4.15% | 5.87% | 2.72% | 9.27% | 20.54% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .75% A | .75% | .75% | .75% | .76% | .77% |
Expenses net of fee waivers, if any | .75% A | .75% | .75% | .75% | .76% | .77% |
Expenses net of all reductions | .75% A | .75% | .75% | .75% | .76% | .77% |
Net investment income (loss) | 3.32% A | 3.34% | 3.71% | 3.50% | 4.38% | 4.36% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,683 | $ 3,646 | $ 2,510 | $ 1,992 | $ 1,138 | $ 469 |
Portfolio turnover rate F | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Floating Rate High Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Floating Rate High Income Fund and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
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 and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. 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.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014 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 and may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Interest in the accompanying financial statements.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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.
Dividends 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 dividends 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.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to market discount, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 179,763 |
Gross unrealized depreciation | (52,316) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 127,447 |
|
|
Tax cost | $ 16,464,640 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2017 | $ (12,891) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 60 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Semiannual Report
3. Significant Accounting Policies - continued
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans. The Fund also invests in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities (including principal repayments of bank loan obligations), other than short-term securities, aggregated $5,872,626 and $4,460,329, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .56% 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.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 2,092 | $ 124 |
Class T | -% | .25% | 340 | 4 |
Class B | .55% | .15% | 77 | 61 |
Class C | .75% | .25% | 4,806 | 950 |
|
|
| $ 7,315 | $ 1,139 |
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 3.50% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% or .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 48 |
Class T | 9 |
Class B* | 12 |
Class C* | 55 |
| $ 124 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 1,220 | .15 |
Class T | 322 | .24 |
Class B | 25 | .23 |
Class C | 711 | .15 |
Fidelity Floating Rate High Income Fund | 5,135 | .11 |
Institutional Class | 3,031 | .16 |
| $ 10,444 |
|
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $15 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $26.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $5.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 24,588 | $ 41,401 |
Class T | 3,874 | 7,141 |
Class B | 265 | 529 |
Class C | 10,511 | 18,030 |
Fidelity Floating Rate High Income Fund | 153,718 | 214,851 |
Institutional Class | 59,844 | 93,637 |
Total | $ 252,800 | $ 375,589 |
From net realized gain |
|
|
Class A | $ 6,085 | $ 6,467 |
Class T | 983 | 1,176 |
Class B | 81 | 117 |
Class C | 3,472 | 3,997 |
Fidelity Floating Rate High Income Fund | 33,019 | 28,516 |
Institutional Class | 13,499 | 12,686 |
Total | $ 57,139 | $ 52,959 |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 22,875 | 75,563 | $ 228,535 | $ 753,535 |
Reinvestment of distributions | 2,525 | 3,658 | 25,210 | 36,455 |
Shares redeemed | (30,277) | (42,208) | (302,453) | (421,018) |
Net increase (decrease) | (4,877) | 37,013 | $ (48,708) | $ 368,972 |
Class T |
|
|
|
|
Shares sold | 2,607 | 10,009 | $ 26,018 | $ 99,597 |
Reinvestment of distributions | 439 | 727 | 4,371 | 7,232 |
Shares redeemed | (3,290) | (7,688) | (32,819) | (76,547) |
Net increase (decrease) | (244) | 3,048 | $ (2,430) | $ 30,282 |
Semiannual Report
9. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class B |
|
|
|
|
Shares sold | 160 | 663 | $ 1,596 | $ 6,596 |
Reinvestment of distributions | 28 | 50 | 281 | 495 |
Shares redeemed | (448) | (851) | (4,465) | (8,474) |
Net increase (decrease) | (260) | (138) | $ (2,588) | $ (1,383) |
Class C |
|
|
|
|
Shares sold | 8,291 | 30,392 | $ 82,814 | $ 303,076 |
Reinvestment of distributions | 1,055 | 1,609 | 10,532 | 16,022 |
Shares redeemed | (10,838) | (17,011) | (108,232) | (169,644) |
Net increase (decrease) | (1,492) | 14,990 | $ (14,886) | $ 149,454 |
Fidelity Floating Rate High Income Fund |
|
|
|
|
Shares sold | 207,340 | 483,346 | $ 2,068,584 | $ 4,812,772 |
Reinvestment of distributions | 15,374 | 20,114 | 153,243 | 200,158 |
Shares redeemed | (130,141) | (189,555) | (1,297,625) | (1,887,500) |
Net increase (decrease) | 92,573 | 313,905 | $ 924,202 | $ 3,125,430 |
Institutional Class |
|
|
|
|
Shares sold | 71,292 | 203,411 | $ 710,772 | $ 2,024,367 |
Reinvestment of distributions | 4,045 | 5,909 | 40,291 | 58,759 |
Shares redeemed | (70,435) | (96,688) | (702,063) | (962,445) |
Net increase (decrease) | 4,902 | 112,632 | $ 49,000 | $ 1,120,681 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Floating Rate High Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Floating Rate High Income Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of April 30, 2014, and the related statement of operations for the six months then ended, the statements of changes in net assets for the six months ended April 30, 2014 and for the year ended October 31, 2013, and the financial highlights for the six months ended April 30, 2014 and for each of the five years in the period ended October 31, 2013. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2014, by correspondence with the custodians, agent banks and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Floating Rate High Income Fund as of April 30, 2014, the results of its operations for the six months then ended, the changes in its net assets for the six months ended April 30, 2014 and for the year ended October 31, 2013, and the financial highlights for the six months ended April 30, 2014 and for each of the five years in the period ended October 31, 2013, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
June 18, 2014
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(U.K.) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
AFR-USAN-0614 1.784877.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Floating Rate High Income
Fund - Institutional Class
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to financial statements. | |
Report of Independent Registered Public Accounting Firm |
|
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.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.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.40 | $ 4.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Class T | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.00 | $ 5.40 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.44 | $ 5.41 |
Class B | 1.52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.70 | $ 7.59 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.26 | $ 7.60 |
Class C | 1.74% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,011.60 | $ 8.68 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.17 | $ 8.70 |
Fidelity Floating Rate High Income Fund | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.90 | $ 3.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.32 | $ 3.51 |
Institutional Class | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.60 | $ 3.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.08 | $ 3.76 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Holdings as of April 30, 2014 | ||
(by issuer, excluding cash equivalents) | % of fund's | % of fund's net assets |
HCA Holdings, Inc. | 3.2 | 3.2 |
Community Health Systems, Inc. | 2.7 | 2.1 |
H.J. Heinz Co. | 2.6 | 2.6 |
First Data Corp. | 1.9 | 2.0 |
Hilton Worldwide Finance, LLC | 1.8 | 2.4 |
| 12.2 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Healthcare | 11.9 | 12.3 |
Technology | 10.9 | 10.4 |
Telecommunications | 6.5 | 6.5 |
Gaming | 5.8 | 3.8 |
Electric Utilities | 5.5 | 6.6 |
Quality Diversification (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
![]() | BBB 5.9% |
| ![]() | BBB 5.2% |
| ||
![]() | BB 38.8% |
| ![]() | BB 45.0% |
| ||
![]() | B 42.5% |
| ![]() | B 34.9% |
| ||
![]() | CCC,CC,C 2.8% |
| ![]() | CCC,CC,C 2.5% |
| ||
![]() | D 0.0%† |
| ![]() | D 0.0%† |
| ||
![]() | Not Rated 4.7% |
| ![]() | Not Rated 3.2% |
| ||
![]() | Other Investments 0.2% |
| ![]() | Other Investments 0.2% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
† Amount represents less than 0.1% | |||||||
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014* | As of October 31, 2013** | ||||||
![]() | Bank Loan |
| ![]() | Bank Loan |
| ||
![]() | Nonconvertible |
| ![]() | Nonconvertible |
| ||
![]() | Common Stocks 0.2% |
| ![]() | Common Stocks 0.2% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 10.5% |
| ** Foreign investments | 10.0% |
|
Semiannual Report
Investments April 30, 2014
Showing Percentage of Net Assets
Bank Loan Obligations (f) - 87.8% | ||||
| Principal Amount (000s) | Value (000s) | ||
Aerospace - 0.9% | ||||
TransDigm, Inc. Tranche C, term loan 3.75% 2/28/20 (e) | $ 144,883 | $ 144,339 | ||
Air Transportation - 0.2% | ||||
Delta Air Lines, Inc. Tranche B 1LN, term loan 3.5% 10/18/18 (e) | 13,875 | 13,805 | ||
U.S. Airways, Inc. Tranche B 2LN, term loan 3% 11/23/16 (e) | 25,000 | 24,938 | ||
| 38,743 | |||
Automotive - 1.8% | ||||
Affinia Group, Inc. Tranche B 2LN, term loan 4.75% 4/25/20 (e) | 14,287 | 14,287 | ||
Allison Transmission, Inc. Tranche B 3LN, term loan 3.75% 8/23/19 (e) | 7,739 | 7,739 | ||
Chrysler Group LLC: | ||||
term loan 3.25% 12/31/18 (e) | 54,000 | 53,460 | ||
Tranche B, term loan 3.5% 5/24/17 (e) | 81,665 | 81,563 | ||
Federal-Mogul Corp. Tranche C, term loan 4.75% 4/15/21 (e) | 20,000 | 19,875 | ||
North American Lifting Holdings, Inc.: | ||||
Tranche 1LN, term loan 5.5% 11/27/20 (e) | 16,958 | 17,063 | ||
Tranche 2LN, term loan 10% 11/27/21 (e) | 24,370 | 24,340 | ||
Schaeffler AG Tranche C, term loan 4.25% 1/27/17 (e) | 41,000 | 41,154 | ||
The Goodyear Tire & Rubber Co. Tranche 2LN, term loan 4.75% 4/30/19 (e) | 16,000 | 16,120 | ||
Tower Automotive Holdings U.S.A. LLC term loan 4% 4/23/20 (e) | 26,746 | 26,612 | ||
| 302,213 | |||
Broadcasting - 2.8% | ||||
Clear Channel Capital I LLC Tranche B, term loan 3.8003% 1/29/16 (e) | 88,025 | 87,365 | ||
Clear Channel Communications, Inc. Tranche D, term loan 6.9003% 1/30/19 (e) | 68,720 | 68,119 | ||
ION Media Networks, Inc. Tranche B, term loan 5% 12/18/20 (e) | 28,928 | 29,072 | ||
Nielsen Finance LLC Tranche B 2LN, term loan 3.152% 4/15/21 (e) | 80,000 | 80,000 | ||
Nine Entertainment Co. Tranche B, term loan 3.25% 2/5/20 (e) | 14,865 | 14,642 | ||
TWCC Holding Corp. term loan 3.5% 2/11/17 (e) | 66,020 | 65,071 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Broadcasting - continued | ||||
Univision Communications, Inc.: | ||||
Tranche C 3LN, term loan 4% 3/1/20 (e) | $ 9,900 | $ 9,838 | ||
Tranche C 4LN, term loan 4% 3/1/20 (e) | 104,124 | 103,473 | ||
| 457,580 | |||
Building Materials - 0.8% | ||||
American Builders & Contractors Supply Co., Inc. Tranche B, term loan 3.5% 4/16/20 (e) | 34,909 | 34,821 | ||
Armstrong World Industries, Inc. Tranche B, term loan 3.5% 3/15/20 (e) | 23,710 | 23,710 | ||
Continental Building Products Tranche B 1LN, term loan 4.75% 8/28/20 (e) | 15,880 | 15,880 | ||
Pinafore LLC Tranche B 2LN, term loan 3.75% 9/21/16 (e) | 42,091 | 42,038 | ||
Ply Gem Industries, Inc. Tranche B, term loan 4% 2/1/21 (e) | 7,095 | 7,024 | ||
| 123,473 | |||
Cable TV - 4.9% | ||||
Atlantic Broad Tranche B, term loan 3.25% 11/30/19 (e) | 27,395 | 27,121 | ||
CCO Holdings, LLC Tranche 3LN, term loan 2.6503% 9/6/14 (e) | 69,097 | 68,903 | ||
Cequel Communications LLC Tranche B, term loan 3.5% 2/14/19 (e) | 122,966 | 122,351 | ||
Charter Communications Operating LLC: | ||||
Tranche E, term loan 3% 7/1/20 (e) | 48,963 | 48,289 | ||
Tranche F, term loan 3% 1/3/21 (e) | 94,709 | 93,289 | ||
CSC Holdings LLC Tranche B, term loan 2.6503% 4/17/20 (e) | 133,327 | 131,500 | ||
Numericable LLC: | ||||
Tranche B 1LN, term loan 4/23/20 (g) | 40,187 | 40,137 | ||
Tranche B 2LN, term loan 4/23/20 (g) | 34,768 | 34,724 | ||
RCN Telecom Services, LLC Tranche B, term loan 4.5% 3/1/20 (e) | 6,775 | 6,775 | ||
UPC Broadband Holding BV Tranche AH, term loan 3.25% 6/30/21 (e) | 34,000 | 33,660 | ||
Virgin Media Finance PLC Tranche B, term loan 3.5% 6/7/20 (e) | 55,000 | 54,450 | ||
WideOpenWest Finance LLC Tranche B, term loan 4.75% 4/1/19 (e) | 32,670 | 32,752 | ||
Ziggo B.V.: | ||||
Tranche B 1LN, term loan: | ||||
1/15/22 (g) | 2,063 | 2,027 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Cable TV - continued | ||||
Ziggo B.V.: - continued | ||||
3.25% 1/15/22 (e) | $ 35,286 | $ 34,668 | ||
Tranche B 2LN, term loan: | ||||
1/15/22 (g) | 1,934 | 1,900 | ||
3.25% 1/15/22 (e) | 22,134 | 21,747 | ||
Tranche B 3LN, term loan 1/15/22 (g) | 39,583 | 38,891 | ||
| 793,184 | |||
Capital Goods - 0.3% | ||||
Doncasters PLC Tranche B 2LN, term loan 9.5% 10/9/20 (e) | 7,862 | 8,019 | ||
SRAM LLC. Tranche B, term loan 4.0092% 4/10/20 (e) | 40,271 | 39,667 | ||
| 47,686 | |||
Chemicals - 1.0% | ||||
Cyanco Intermediate Corp. Tranche B, term loan 5.5% 5/1/20 (e) | 30,482 | 30,558 | ||
Emerald Performance Materials, LLC Tranche B, term loan 6.75% 5/18/18 (e) | 2,948 | 2,948 | ||
MacDermid, Inc. Tranche B 1LN, term loan 4% 6/7/20 (e) | 39,548 | 39,449 | ||
Royal Adhesives & Sealants LLC Tranche B 1LN, term loan 5.5% 7/31/18 (e) | 15,547 | 15,586 | ||
Tata Chemicals North America, Inc. Tranche B, term loan 3.75% 8/9/20 (e) | 12,903 | 12,838 | ||
U.S. Coatings Acquisition, Inc. Tranche B, term loan 4% 2/1/20 (e) | 54,588 | 54,451 | ||
| 155,830 | |||
Consumer Products - 1.1% | ||||
Jarden Corp. Tranche B, term loan 2.7162% 3/31/18 (e) | 16,037 | 16,037 | ||
Kate Spade & Co. Tranche B, term loan 4/10/21 (g) | 17,965 | 17,965 | ||
NBTY, Inc. Tranche B 2LN, term loan 3.5% 10/1/17 (e) | 14,179 | 14,161 | ||
Revlon Consumer Products Corp.: | ||||
term loan 4% 8/19/19 (e) | 30,923 | 30,884 | ||
Tranche B, term loan 3.25% 11/19/17 (e) | 13,500 | 13,483 | ||
Spotless Holdings Ltd. Tranche B 1LN, term loan 5% 10/2/18 (e) | 16,859 | 16,922 | ||
Sun Products Corp. Tranche B, term loan 5.5125% 3/23/20 (e) | 15,210 | 14,488 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Consumer Products - continued | ||||
Tempur Sealy International, Inc. Tranche B, term loan 3.5% 3/18/20 (e) | $ 18,924 | $ 18,807 | ||
Wilsonart LLC Tranche B, term loan 4% 10/31/19 (e) | 42,861 | 42,433 | ||
| 185,180 | |||
Containers - 2.1% | ||||
Ardagh Holdings U.S.A., Inc. Tranche B, term loan: | ||||
4% 12/17/19 (e) | 55,630 | 55,352 | ||
4.25% 12/17/19 (e) | 17,481 | 17,394 | ||
Berlin Packaging, LLC: | ||||
Tranche 1LN, term loan 4.75% 4/3/19 (e) | 7,532 | 7,561 | ||
Tranche 2LN, term loan 8.75% 4/3/20 (e) | 3,855 | 3,937 | ||
Berry Plastics Corp. Tranche E, term loan 3.75% 1/6/21 (e) | 15,000 | 14,888 | ||
Berry Plastics Group, Inc. term loan 3.5% 2/8/20 (e) | 110,106 | 109,005 | ||
BWAY Holding Co. Tranche B, term loan 4.5% 8/6/17 (e) | 15,148 | 15,186 | ||
Consolidated Container Co. Tranche B, term loan 5% 7/3/19 (e) | 8,845 | 8,857 | ||
Multi Packaging Solutions, Inc. term loan 4.25% 9/30/20 (e) | 7,000 | 6,983 | ||
Reynolds Consumer Products Holdings, Inc. Tranche B, term loan 4% 12/1/18 (e) | 95,112 | 95,112 | ||
Tricorbraun, Inc. Tranche B, term loan 4% 5/3/18 (e) | 3,804 | 3,783 | ||
| 338,058 | |||
Diversified Financial Services - 2.6% | ||||
AlixPartners LLP Tranche B 2LN, term loan 4% 7/10/20 (e) | 19,750 | 19,701 | ||
Delos Finance SARL Tranche B LN, term loan 3.5% 3/6/21 (e) | 51,095 | 51,095 | ||
Energy & Minerals Group Tranche B, term loan 4.75% 3/27/20 (e) | 14,920 | 14,920 | ||
Fly Funding II Sarl Tranche B, term loan 4.5% 8/9/19 (e) | 14,906 | 14,981 | ||
Flying Fortress, Inc. term loan 3.5% 6/30/17 (e) | 97,833 | 97,833 | ||
HarbourVest Partners LLC Tranche B, term loan 3.25% 2/4/21 (e) | 15,366 | 15,241 | ||
Home Loan Servicing Solutions Ltd. Tranche B, term loan 4.5% 6/27/20 (e) | 14,639 | 14,639 | ||
LPL Holdings, Inc. Tranche B, term loan 3.25% 3/29/19 (e) | 32,846 | 32,682 | ||
Moxie Patriot LLC Tranche B, term loan 6.75% 12/19/20 (e) | 8,000 | 8,190 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Diversified Financial Services - continued | ||||
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 2/15/18 (e) | $ 30,616 | $ 30,769 | ||
Sheridan Investment Partners I, LLC Tranche B 2LN, term loan 4.25% 10/1/19 (e) | 20,181 | 20,231 | ||
Star West Generation LLC Tranche B, term loan 4.25% 3/13/20 (e) | 22,770 | 22,713 | ||
TransUnion LLC Tranche B, term loan 4% 4/9/21 (e) | 77,500 | 77,113 | ||
| 420,108 | |||
Diversified Media - 0.6% | ||||
Advanstar Communications, Inc. Tranche B 1LN, term loan 5.5% 4/29/19 (e) | 8,415 | 8,489 | ||
McGraw-Hill School Education Tranche B, term loan 6.25% 12/18/19 (e) | 18,454 | 18,546 | ||
Media General, Inc. Tranche B. term loan 4.25% 7/31/20 (e) | 23,810 | 23,839 | ||
WMG Acquisition Corp. term loan 3.75% 7/1/20 (e) | 55,712 | 55,434 | ||
| 106,308 | |||
Electric Utilities - 5.2% | ||||
Alinta Energy Finance Pty. Ltd. Tranche B, term loan: | ||||
8/13/18 (h) | 3,960 | 4,019 | ||
6.375% 8/13/19 (e) | 60,222 | 61,125 | ||
Calpine Construction Finance Co. LP: | ||||
Tranche B 1LN, term loan 3% 5/3/20 (e) | 85,127 | 83,105 | ||
Tranche B 2LN, term loan 3.25% 1/31/22 (e) | 54,325 | 53,170 | ||
Calpine Corp.: | ||||
Tranche B 2LN, term loan 4% 4/1/18 (e) | 11,714 | 11,744 | ||
Tranche B 3LN, term loan 4% 10/9/19 (e) | 29,562 | 29,562 | ||
Tranche B, term loan 4% 4/1/18 (e) | 108,374 | 108,645 | ||
Dynegy, Inc. Tranche B 2LN, term loan 4% 4/23/20 (e) | 25,765 | 25,765 | ||
EquiPower Resources Holdings LLC: | ||||
Tranche B 1LN, term loan 4.25% 12/21/18 (e) | 23,750 | 23,780 | ||
Tranche C, term loan 4.25% 12/31/19 (e) | 32,210 | 32,210 | ||
Essential Power LLC Tranche B, term loan 4.75% 8/8/19 (e) | 16,032 | 16,032 | ||
InterGen NV Tranche B, term loan 5.5% 6/13/20 (e) | 33,662 | 33,999 | ||
La Frontera Generation, LLC Tranche B, term loan 4.5% 9/30/20 (e) | 82,393 | 82,393 | ||
NRG Energy, Inc. Tranche B, term loan 2.75% 7/1/18 (e) | 83,589 | 82,544 | ||
Tempus Public Foundation Generation Holdings LLC Tranche B, term loan 4.75% 12/31/17 (e) | 23,496 | 22,615 | ||
The AES Corp. Tranche B, term loan 3.75% 6/1/18 (e) | 65,286 | 65,534 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Electric Utilities - continued | ||||
Topaz Power Holdings, LLC Tranche B, term loan 5.25% 2/26/20 (e) | $ 35,787 | $ 34,892 | ||
TXU Energy LLC Tranche B, term loan: | ||||
3.7369% 10/10/14 (e) | 10,052 | 7,602 | ||
4.7369% 10/10/17 (e) | 66,622 | 50,383 | ||
USIC Holdings, Inc. Tranche B, term loan 4% 7/10/20 (e) | 16,376 | 16,172 | ||
Windsor Financing, LLC Tranche B, term loan 6.25% 12/5/17 (e) | 2,772 | 2,841 | ||
| 848,132 | |||
Energy - 4.2% | ||||
Alon U.S.A. Partners LP term loan 9.25% 11/26/18 (e) | 8,778 | 9,107 | ||
Atlantic Power Ltd. Partnership Tranche B LN, term loan 4.75% 2/24/21 (e) | 35,915 | 36,050 | ||
Atlas Energy LP Tranche B, term loan 6.5% 7/31/19 (e) | 8,069 | 8,211 | ||
Empire Generating Co. LLC: | ||||
Tranche B, term loan 5.25% 3/14/21 (e) | 29,675 | 29,786 | ||
Tranche C, term loan 5.25% 3/14/21 (e) | 2,070 | 2,078 | ||
EP Energy LLC term loan 4.5% 4/30/19 (e) | 1,500 | 1,500 | ||
Everest Acquisition LLC Tranche B 3LN, term loan 3.5% 5/24/18 (e) | 42,333 | 42,069 | ||
ExGen Renewables I, LLC Tranche B term loan 5.25% 2/6/21 (e) | 16,154 | 16,356 | ||
Fieldwood Energy, LLC: | ||||
Tranche 2LN, term loan 8.375% 9/30/20 (e) | 140,755 | 144,978 | ||
Tranche B 1LN, term loan 3.875% 9/30/18 (e) | 39,825 | 39,725 | ||
GIM Channelview Cogeneration LLC Tranche B, term loan 4.25% 5/8/20 (e) | 12,401 | 12,417 | ||
MRC Global, Inc. Tranche B, term loan 4.75% 11/9/19 (e) | 44,750 | 44,920 | ||
Northeast Wind Capital II, LLC Tranche B, term loan 5% 11/14/20 (e) | 14,467 | 14,612 | ||
Offshore Group Investment Ltd. Tranche B, term loan 5% 10/25/17 (e) | 18,546 | 18,407 | ||
Pacific Drilling SA Tranche B, term loan 4.5% 6/3/18 (e) | 24,470 | 24,439 | ||
Panda Sherman Power, LLC term loan 9% 9/14/18 (e) | 5,000 | 5,113 | ||
Panda Temple Power, LLC term loan 7.25% 4/3/19 (e) | 11,000 | 11,289 | ||
Ruby Western Pipeline Holdings LLC Tranche B, term loan 3.5% 3/27/20 (e) | 30,509 | 30,432 | ||
Samson Investment Co. Tranche B 2LN, term loan 5% 9/25/18 (e) | 42,280 | 42,069 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Energy - continued | ||||
Seadrill Operating LP Tranche B, term loan 4% 2/21/21 (e) | $ 19,950 | $ 19,726 | ||
Sheridan Investment Partners I term loan 4.25% 12/16/20 (e) | 51,090 | 51,090 | ||
Sheridan Production Partners I: | ||||
Tranche A, term loan 4.25% 12/16/20 (e) | 7,107 | 7,107 | ||
Tranche M, term loan 4.25% 12/16/20 (e) | 2,651 | 2,651 | ||
TPF II LC LLC Tranche B, term loan 6.5% 8/21/19 (e) | 26,394 | 26,624 | ||
Vantage Drilling Co. Tranche B, term loan 5.75% 3/28/19 (e) | 14,850 | 14,776 | ||
Western Refining, Inc. Tranche B, term loan 4.25% 11/12/20 (e) | 26,289 | 26,355 | ||
| 681,887 | |||
Entertainment/Film - 1.1% | ||||
AMC Entertainment, Inc. Tranche B, term loan 3.5% 4/30/20 (e) | 24,762 | 24,731 | ||
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. Tranche B, term loan 3% 1/31/21 (e) | 26,660 | 26,560 | ||
Cinemark U.S.A., Inc. Tranche B, term loan 3.16% 12/18/19 (e) | 14,713 | 14,731 | ||
Digital Cinema Implementation Partners,LLC Tranche B, term loan 3.25% 5/17/21 (e) | 62,509 | 61,884 | ||
Live Nation Entertainment, Inc. Tranche B, term loan 3.5% 8/16/20 (e) | 19,358 | 19,213 | ||
William Morris Endeavor Entertainment, LLC. Tranche B 1LN, term loan 5/1/21 (g) | 35,000 | 34,825 | ||
| 181,944 | |||
Environmental - 0.7% | ||||
ADS Waste Holdings, Inc. Tranche B 2LN, term loan 3.75% 10/9/19 (e) | 35,550 | 35,372 | ||
Darling International, Inc. Tranche B, term loan 3.25% 1/6/21 (e) | 22,085 | 21,975 | ||
Tervita Corp. Tranche B 1LN, term loan 6.25% 5/15/18 (e) | 24,767 | 24,427 | ||
The Brickman Group, Ltd.: | ||||
Tranche 2LN, term loan 7.5% 12/18/21 (e) | 5,690 | 5,775 | ||
Tranche B 1LN, term loan 4% 12/18/20 (e) | 21,676 | 21,621 | ||
WTG Holdings III Corp. Tranche B 1LN, term loan 4.75% 1/15/21 (e) | 10,973 | 10,945 | ||
| 120,115 | |||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Food & Drug Retail - 1.4% | ||||
Albertson's LLC: | ||||
Tranche B 1LN, term loan 4.25% 3/21/16 (e) | $ 17,676 | $ 17,676 | ||
Tranche B 2LN, term loan 4.75% 3/21/19 (e) | 9,536 | 9,547 | ||
Ferrara Candy Co., Inc. Tranche B, term loan 7.5% 6/18/18 (e) | 21,582 | 20,287 | ||
Performance Food Group, Inc. Tranche 2LN, term loan 6.25% 11/14/19 (e) | 7,343 | 7,416 | ||
PRA Holdings, Inc. Tranche B, term loan 4.5% 9/23/20 (e) | 21,890 | 21,616 | ||
Rite Aid Corp.: | ||||
Tranche 2 LN2, term loan 4.875% 6/21/21 (e) | 25,210 | 25,462 | ||
Tranche 2LN, term loan 5.75% 8/21/20 (e) | 13,590 | 13,879 | ||
Tranche B 7LN, term loan 3.5% 2/21/20 (e) | 48,136 | 48,076 | ||
Roundys Supermarket, Inc. Tranche B LN, term loan 5.75% 3/3/21 (e) | 20,000 | 20,025 | ||
Sprouts Farmers Market LLC Tranche B, term loan 4% 4/23/20 (e) | 23,124 | 23,126 | ||
SUPERVALU, Inc. Tranche B, term loan 4.5% 3/21/19 (e) | 14,729 | 14,674 | ||
| 221,784 | |||
Food/Beverage/Tobacco - 3.8% | ||||
AdvancePierre Foods, Inc. Tranche 2LN, term loan 9.5% 10/10/17 (e) | 3,000 | 2,918 | ||
Arysta Lifescience SPC LLC: | ||||
Tranche B 1LN, term loan 4.5% 5/29/20 (e) | 42,677 | 42,624 | ||
Tranche B 2LN, term loan 8.25% 11/30/20 (e) | 25,000 | 25,438 | ||
Big Heart Pet Brands Tranche B LN, term loan 3.5% 3/8/20 (e) | 50,000 | 49,375 | ||
H.J. Heinz Co.: | ||||
Tranche B 1LN, term loan 3.25% 6/7/19 (e) | 24,813 | 24,844 | ||
Tranche B 2LN, term loan 3.5% 6/7/20 (e) | 402,350 | 404,350 | ||
JBS U.S.A. LLC Tranche B, term loan 3.75% 5/25/18 (e) | 19,242 | 19,242 | ||
Michael Foods, Inc. Tranche B, term loan 4.25% 2/25/18 (e) | 8,671 | 8,671 | ||
OSI Restaurant Partners LLC Tranche B, term loan 3.5% 10/26/19 (e) | 49,333 | 49,241 | ||
| 626,703 | |||
Gaming - 5.7% | ||||
Bally Technologies, Inc. Tranche B, term loan 4.25% 11/25/20 (e) | 29,581 | 29,618 | ||
Boyd Gaming Corp. Tranche B, term loan 4% 8/14/20 (e) | 26,498 | 26,498 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Gaming - continued | ||||
Caesars Entertainment Resort Properties LLC Tranche B 1LN, term loan 7% 10/11/20 (e) | $ 258,260 | $ 259,551 | ||
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 4/10/21 (g) | 96,605 | 96,363 | ||
CityCenter Holdings LLC Tranche B, term loan 5% 10/16/20 (e) | 73,162 | 73,527 | ||
Golden Nugget, Inc. Tranche B, term loan: | ||||
5.5% 11/21/19 (e) | 46,238 | 47,221 | ||
5.5% 11/21/19 (e) | 19,816 | 20,237 | ||
Graton Economic Development Authority Tranche B, term loan 9% 8/22/18 (e) | 9,000 | 9,383 | ||
Las Vegas Sands LLC Tranche B, term loan 3.25% 12/19/20 (e) | 59,850 | 59,476 | ||
MGM Mirage, Inc. Tranche B, term loan 3.5% 12/20/19 (e) | 109,491 | 108,812 | ||
Mohegan Tribal Gaming Authority Tranche B, term loan 5.5% 11/19/19 (e) | 29,770 | 30,187 | ||
Motor City Casino Tranche B, term loan 5% 3/1/17 (e) | 4,336 | 4,309 | ||
Pinnacle Entertainment, Inc. Tranche B 2LN, term loan 3.75% 8/13/20 (e) | 29,161 | 29,089 | ||
Scientific Games Corp. Tranche B, term loan 4.25% 10/18/20 (e) | 78,803 | 78,605 | ||
Seminole Tribe of Florida Tranche B, term loan 3% 4/29/20 (e) | 13,680 | 13,646 | ||
Shingle Springs Tribal Gaming Authority Tranche B, term loan 6.25% 8/29/19 (e) | 8,038 | 8,239 | ||
Station Casinos LLC Tranche B, term loan 4.25% 3/1/20 (e) | 16,300 | 16,280 | ||
Yonkers Racing Corp. Tranche B 1LN, term loan 4.25% 8/20/19 (e) | 14,429 | 14,140 | ||
| 925,181 | |||
Healthcare - 11.6% | ||||
Akorn, Inc. Tranche B, term loan 4.5% 4/17/21 (e) | 24,415 | 24,415 | ||
Alkermes, Inc. term loan 3.5% 9/25/19 (e) | 13,573 | 13,557 | ||
Biomet, Inc. Term B 2LN, term loan 3.6612% 7/25/17 (e) | 41,576 | 41,630 | ||
Carestream Health, Inc. Tranche B 1LN, term loan 5% 6/7/19 (e) | 70,307 | 70,658 | ||
Community Health Systems, Inc.: | ||||
Tranche D, term loan 4.25% 1/27/21 (e) | 334,876 | 335,713 | ||
Tranche E, term loan 3.4686% 1/25/17 (e) | 82,663 | 82,456 | ||
DaVita HealthCare Partners, Inc.: | ||||
Tranche A, term loan 2.91% 10/20/15 (e) | 38,978 | 38,880 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Healthcare - continued | ||||
DaVita HealthCare Partners, Inc.: - continued | ||||
Tranche B 2LN, term loan 4% 11/1/19 (e) | $ 55,065 | $ 55,272 | ||
Tranche B, term loan 4.5% 10/20/16 (e) | 84,685 | 84,897 | ||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (e) | 76,978 | 76,208 | ||
Emergency Medical Services Corp. Tranche B, term loan 4% 5/25/18 (e) | 36,553 | 36,621 | ||
Grifols, S.A. Tranche B, term loan 3.1503% 2/27/21 (e) | 50,000 | 49,875 | ||
HCA Holdings, Inc.: | ||||
Tranche A 4LN, term loan 2.6503% 2/2/16 (e) | 292,736 | 292,005 | ||
Tranche B 4LN, term loan 2.9836% 5/1/18 (e) | 35,870 | 35,827 | ||
Tranche B 5LN, term loan 2.9003% 3/31/17 (e) | 155,891 | 155,891 | ||
HCR Healthcare LLC Tranche B, term loan 5% 4/6/18 (e) | 36,145 | 35,422 | ||
IASIS Healthcare LLC Tranche B 2LN, term loan 4.5% 5/3/18 (e) | 34,563 | 34,563 | ||
Ikaria, Inc.: | ||||
Tranche 2LN, term loan 8.75% 2/12/22 (e) | 6,510 | 6,576 | ||
Tranche B 1LN, term loan 5% 2/12/21 (e) | 40,680 | 40,782 | ||
Jazz Pharmaceuticals, Inc. Tranche B 2LN, term loan 3.25% 6/12/18 (e) | 8,997 | 8,986 | ||
Millennium Labs, LLC Tranche B, term loan 5.25% 4/16/21 (e) | 58,330 | 58,111 | ||
MModal, Inc. Tranche B, term loan 9% 8/17/19 (e) | 6,511 | 5,144 | ||
MPH Acquisition Holdings LLC Tranche B, term loan 4% 3/31/21 (e) | 63,626 | 63,308 | ||
National Mentor Holdings, Inc. Tranche B, term loan 4.75% 1/31/21 (e) | 19,940 | 19,940 | ||
Quintiles Transnational Corp. Tranche B 3LN, term loan 3.75% 6/8/18 (e) | 25,000 | 24,906 | ||
Rural/Metro Corp. Tranche B, term loan 9% 6/30/18 (e) | 5,093 | 4,810 | ||
Salix Pharmaceuticals Ltd. Tranche B, term loan 4.25% 1/2/20 (e) | 29,205 | 29,351 | ||
Sheridan Healthcare, Inc. Tranche 1LN, term loan 4.5% 6/29/18 (e) | 6,883 | 6,874 | ||
Sheridan Holdings, Inc. Trache 2LN, term loan 8.25% 12/18/21 (e) | 16,185 | 16,348 | ||
Skilled Healthcare Group, Inc. term loan 6.75% 4/9/16 (e) | 16,382 | 16,300 | ||
Team Health, Inc. Tranche B, term loan 3.75% 6/29/18 (e) | 6,808 | 6,808 | ||
U.S. Renal Care, Inc.: | ||||
Tranche 2LN, term loan 8.5% 1/3/20 (e) | 5,545 | 5,587 | ||
Tranche B 2LN, term loan 4.25% 7/3/19 (e) | 30,064 | 30,026 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Healthcare - continued | ||||
Universal Health Services, Inc. Tranche A, term loan 1.7321% 11/15/15 (e) | $ 10,393 | $ 10,367 | ||
Valeant Pharmaceuticals International: | ||||
Tranche BC 2LN, term loan 3.75% 12/11/19 (e) | 30,535 | 30,535 | ||
Tranche BD 2LN, term loan 3.75% 2/13/19 (e) | 51,511 | 51,447 | ||
| 1,900,096 | |||
Homebuilders/Real Estate - 0.7% | ||||
CBRE Group, Inc. Tranche B, term loan 2.9018% 3/28/21 (e) | 20,006 | 19,906 | ||
RE/MAX LLC Tranche B, term loan 4% 7/31/20 (e) | 6,502 | 6,502 | ||
Realogy Corp. Credit-Linked Deposit 4.4463% 10/10/16 (e) | 3,324 | 3,316 | ||
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 (e) | 81,182 | 80,776 | ||
| 110,500 | |||
Hotels - 3.3% | ||||
Four Seasons Holdings, Inc.: | ||||
Tranche 2LN, term loan 6.25% 12/27/20 (e) | 15,420 | 15,613 | ||
Tranche B 1LN, term loan 3.5% 6/27/20 (e) | 51,140 | 50,756 | ||
Hilton Worldwide Finance, LLC Tranche B, term loan 3.5% 10/25/20 (e) | 297,779 | 296,662 | ||
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (e) | 134,990 | 134,315 | ||
Playa Resorts Holding BV Tranche B, term loan 4% 8/9/19 (e) | 40,309 | 40,410 | ||
| 537,756 | |||
Insurance - 0.2% | ||||
CNO Financial Group, Inc. Tranche B 2LN, term loan 3.75% 9/28/18 (e) | 16,861 | 16,882 | ||
HUB International Ltd. Tranche B 1LN, term loan 4.25% 10/2/20 (e) | 17,500 | 17,456 | ||
| 34,338 | |||
Leisure - 0.7% | ||||
ClubCorp Club Operations, Inc. Tranche B, term loan 4% 7/24/20 (e) | 23,912 | 23,792 | ||
Planet Fitness Holdings, LLC. Tranche B, term loan 4.75% 3/31/21 (e) | 19,750 | 19,701 | ||
SeaWorld Parks & Entertainment, Inc. Tranche B 2LN, term loan 3% 5/14/20 (e) | 46,707 | 45,717 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Leisure - continued | ||||
Seminole Hard Rock Entertainment, Inc. Tranche B, term loan 3.5% 5/14/20 (e) | $ 9,612 | $ 9,540 | ||
Six Flags, Inc. Tranche B, term loan 3.5011% 12/20/18 (e) | 14,707 | 14,652 | ||
| 113,402 | |||
Metals/Mining - 4.2% | ||||
Alpha Natural Resources, Inc. Tranche B, term loan 3.5% 5/22/20 (e) | 22,600 | 21,781 | ||
Ameriforge Group, Inc.: | ||||
Tranche B 1LN, term loan 5% 1/25/20 (e) | 12,569 | 12,632 | ||
Tranche B 2LN, term loan 8.75% 1/25/21 (e) | 3,000 | 3,060 | ||
Doncasters Group, LLC Tranche B 1LN, term loan 4.5% 4/9/20 (e) | 28,500 | 28,429 | ||
Fairmount Minerals Ltd. Tranche B 2LN, term loan 4.5% 9/5/19 (e) | 21,604 | 21,658 | ||
Fortescue Metals Group Ltd. Tranche B, term loan 4.25% 6/30/19 (e) | 279,483 | 277,736 | ||
Murray Energy Corp. Tranche B 1LN, term loan 5.25% 12/5/19 (e) | 51,810 | 52,328 | ||
Novelis, Inc. Tranche B, term loan 3.75% 3/10/17 (e) | 50,072 | 50,012 | ||
Oxbow Carbon LLC: | ||||
Tranche 2LN, term loan 8% 1/19/20 (e) | 20,000 | 20,300 | ||
Tranche B 1LN, term loan 4.25% 7/19/19 (e) | 12,359 | 12,359 | ||
Peabody Energy Corp. Tranche B, term loan 4.25% 9/24/20 (e) | 69,650 | 69,650 | ||
U.S. Silica Co. Tranche B, term loan 4% 7/23/20 (e) | 24,277 | 24,277 | ||
Walter Energy, Inc. Tranche B, term loan 7.25% 4/1/18 (e) | 96,873 | 92,998 | ||
| 687,220 | |||
Paper - 0.0% | ||||
Bear Island Paper Co. LLC Tranche B 2LN, term loan 13% 9/13/17 | 232 | 185 | ||
Publishing/Printing - 2.0% | ||||
Cengage Learning Acquisitions, Inc. Tranche 1LN, term loan 7% 3/31/20 (e) | 50,410 | 51,166 | ||
Cenveo Corp. Tranche B, term loan 6.25% 2/13/17 (e) | 8,529 | 8,507 | ||
Dex Media East LLC term loan 6% 12/31/16 (e) | 5,757 | 4,059 | ||
Dex Media West LLC/Dex Media West Finance Co. term loan 8% 12/31/16 (e) | 1,312 | 1,056 | ||
Getty Images, Inc. Tranche B, term loan 4.75% 10/18/19 (e) | 88,956 | 85,064 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Publishing/Printing - continued | ||||
Harland Clarke Holdings Corp. Tranche B 4LN, term loan 6% 8/4/19 (e) | $ 17,584 | $ 17,628 | ||
Houghton Mifflin Harcourt Publishing, Inc. Tranche B, term loan 4.25% 5/22/18 (e) | 19,860 | 19,885 | ||
McGraw-Hill Global Education Holdings, LLC Tranche B, term loan 5.75% 3/22/19 (e) | 16,096 | 16,207 | ||
Newsday LLC Tranche A, term loan 3.6503% 10/12/16 (e) | 11,077 | 11,082 | ||
Springer Science+Business Media Deutschland GmbH Tranche B 2LN, term loan 5% 8/14/20 (e) | 109,900 | 110,038 | ||
| 324,692 | |||
Restaurants - 0.6% | ||||
Burger King Corp. Tranche B, term loan 3.75% 9/28/19 (e) | 23,191 | 23,191 | ||
Dunkin Brands, Inc. Tranche B 4LN, term loan 3.25% 2/7/21 (e) | 55,000 | 54,519 | ||
Focus Brands, Inc. Trancher B 1LN, term loan 4.2525% 2/21/18 (e) | 4,781 | 4,781 | ||
Landry's Restaurants, Inc. Tranche B, term loan 4% 4/24/18 (e) | 9,371 | 9,364 | ||
NPC International, Inc. Tranche B, term loan 4% 12/28/18 (e) | 4,955 | 4,949 | ||
| 96,804 | |||
Services - 3.6% | ||||
ARAMARK Corp.: | ||||
Credit-Linked Deposit 3.7306% 7/26/16 (e) | 3,579 | 3,552 | ||
Tranche F, term loan 3.25% 2/24/21 (e) | 75,000 | 74,063 | ||
3.7306% 7/26/16 (e) | 4,666 | 4,654 | ||
Avis Budget Group, Inc. Tranche B, term loan 3% 3/15/19 (e) | 14,850 | 14,794 | ||
Bright Horizons Family Solutions, Inc. Tranche B, term loan 4% 1/30/20 (e) | 23,325 | 23,296 | ||
Coinmach Service Corp. Tranche B, term loan 4.25% 11/14/19 (e) | 51,002 | 50,938 | ||
EFS Cogen Holdings I LLC Tranche B, term loan 3.75% 12/17/20 (e) | 19,687 | 19,736 | ||
Filtration Group Corp.: | ||||
Tranche 2LN, term loan 8.25% 11/21/21 (e) | 5,500 | 5,589 | ||
Tranche B 1LN, term loan 4.5% 11/21/20 (e) | 7,875 | 7,905 | ||
Hertz Corp.: | ||||
Tranche B 2LN, term loan 3% 3/11/18 (e) | 62,671 | 62,201 | ||
Tranche B, term loan 3.75% 3/11/18 (e) | 22,632 | 22,632 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Services - continued | ||||
Interactive Data Corp. Tranche B 2LN, term loan 3.75% 2/11/18 (e) | $ 32,496 | $ 32,577 | ||
Laureate Education, Inc. Tranche B, term loan 5% 6/16/18 (e) | 97,276 | 96,060 | ||
Lineage Logistics Holdings, LLC. Tranche B, term loan 4.5% 4/7/21 (e) | 53,000 | 52,205 | ||
Nord Anglia Education Tranche B, term loan 4.5% 3/21/21 (e) | 23,000 | 22,971 | ||
Redtop Acquisitions Ltd.: | ||||
Tranche 2LN, term loan 8.25% 6/3/21 (e) | 4,988 | 5,137 | ||
Tranche B 1LN, term loan 4.5% 12/3/20 (e) | 11,007 | 11,049 | ||
ServiceMaster Co.: | ||||
term loan 4.25% 1/31/17 (e) | 55,350 | 55,280 | ||
Tranche B2, term loan 4.41% 1/31/17 (e) | 21,610 | 21,583 | ||
The Geo Group, Inc. Tranche B, term loan 3.25% 4/3/20 (e) | 5,940 | 5,933 | ||
| 592,155 | |||
Shipping - 0.7% | ||||
CEVA Group PLC: | ||||
Tranche B, term loan 6.5% 3/19/21 (e) | 24,066 | 23,705 | ||
Tranche C, term loan 6.5% 3/19/21 (e) | 8,944 | 8,809 | ||
Harvey Gulf International Tranche B, term loan 5.5% 6/18/20 (e) | 33,353 | 32,769 | ||
Swift Transportation Co. LLC Tranche B 2LN, term loan 4% 12/21/17 (e) | 17,561 | 17,605 | ||
YRC Worldwide, Inc. Tranche B, term loan 8% 2/13/19 (e) | 27,431 | 27,637 | ||
| 110,525 | |||
Super Retail - 3.2% | ||||
Academy Ltd. Tranche B, term loan 4.5% 8/3/18 (e) | 27,117 | 27,117 | ||
Bass Pro Group LLC Tranche B, term loan 3.75% 11/20/19 (e) | 24,285 | 24,225 | ||
BJ's Wholesale Club, Inc.: | ||||
Tranche 2LN, term loan 8.5% 3/31/20 (e) | 20,110 | 20,638 | ||
Tranche B 1LN, term loan 4.5% 9/26/19 (e) | 62,808 | 62,808 | ||
General Nutrition Centers, Inc. Tranche B, term loan 3.25% 3/4/19 (e) | 57,955 | 57,448 | ||
J. Crew Group, Inc. Tranche B LN, term loan 4% 3/5/21 (e) | 45,160 | 44,880 | ||
JC Penney Corp., Inc. Tranche B, term loan 6% 5/22/18 (e) | 83,047 | 82,216 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Super Retail - continued | ||||
PETCO Animal Supplies, Inc. term loan 4% 11/24/17 (e) | $ 40,357 | $ 40,357 | ||
Pilot Travel Centers LLC: | ||||
Tranche B 2LN, term loan 4.25% 8/7/19 (e) | 19,069 | 19,189 | ||
Tranche B, term loan 3.75% 3/30/18 (e) | 1,909 | 1,916 | ||
Sears Holdings Corp. Tranche ABL, term loan 5.5% 6/30/18 (e) | 128,254 | 129,536 | ||
Serta Simmons Holdings, LLC Tranche B, term loan 4.25% 10/1/19 (e) | 12,605 | 12,589 | ||
Sports Authority, Inc. Tranche B, term loan 7.5% 11/16/17 (e) | 7,416 | 7,398 | ||
| 530,317 | |||
Technology - 10.5% | ||||
Activision Blizzard, Inc. Tranche B, term loan 3.25% 10/11/20 (e) | 132,210 | 132,210 | ||
Ancestry.com, Inc.: | ||||
Tranche B 2LN, term loan 4% 5/15/18 (e) | 9,790 | 9,790 | ||
Tranche B, term loan 4.5% 12/28/18 (e) | 32,415 | 32,496 | ||
Applied Systems, Inc.: | ||||
Tranche B 1LN, term loan 4.25% 1/23/21 (e) | 14,254 | 14,236 | ||
Tranche B 2LN, term loan 7.5% 1/23/22 (e) | 3,630 | 3,675 | ||
Avago Technologies, Inc. Tranche B, term loan 4/16/21 (g) | 63,785 | 64,104 | ||
BMC Software Finance, Inc. Tranche B, term loan: | ||||
5% 9/10/20 (e) | 32,050 | 31,849 | ||
5% 9/10/20 (e) | 188,981 | 188,036 | ||
Ceridian Corp. Tranche B, term loan 4.4018% 5/9/17 (e) | 24,546 | 24,546 | ||
CompuCom Systems, Inc. Tranche B, term loan 4.25% 5/9/20 (e) | 36,544 | 36,453 | ||
Computer Discount Warehouse (CDW) LLC, Tranche B, term loan 3.25% 4/29/20 (e) | 57,207 | 56,563 | ||
Dealer Computer Services, Inc. Tranche BA 2LN, term loan 2.1503% 4/21/16 (e) | 13,808 | 13,877 | ||
Dell International LLC Tranche B, term loan 4.5% 4/29/20 (e) | 200,993 | 200,751 | ||
Fibertech Networks, LLC Tranche B 1LN, term loan 4% 12/18/19 (e) | 18,010 | 17,987 | ||
First Data Corp.: | ||||
term loan: | ||||
3.6523% 3/24/17 (e) | 118,529 | 117,937 | ||
4.1523% 3/24/18 (e) | 99,079 | 98,584 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Technology - continued | ||||
First Data Corp.: - continued | ||||
Tranche B, term loan 4.1523% 9/24/18 (e) | $ 53,162 | $ 52,896 | ||
Freescale Semiconductor, Inc. Tranche B 4LN, term loan 4.25% 3/1/20 (e) | 76,369 | 76,273 | ||
Generac Power Systems, Inc. Tranche B, term loan 3.25% 5/31/20 (e) | 67,872 | 67,363 | ||
Genesys Telecommunications Laboratories, Inc. Tranche B, term loan 4.5% 11/13/20 (e) | 5,057 | 5,070 | ||
Genpact Ltd. Tranche B, term loan 3.5% 8/30/19 (e) | 13,826 | 13,791 | ||
Go Daddy Operating Co., LLC Tranche B 3LN, term loan 4% 12/17/18 (e) | 15,890 | 15,830 | ||
GXS Group, Inc. Tranche B, term loan 3.25% 1/16/21 (e) | 16,958 | 16,915 | ||
Infor U.S., Inc.: | ||||
Tranche B 3LN, term loan 3.75% 6/3/20 (e) | 24,675 | 24,490 | ||
Tranche B 5LN, term loan 3.75% 6/3/20 (e) | 58,853 | 58,488 | ||
Information Resources, Inc. Tranche B, term loan 4.75% 9/30/20 (e) | 19,900 | 19,926 | ||
ION Trading Technologies Ltd.: | ||||
Tranche 1LN, term loan 4.5% 5/22/20 (e) | 39,881 | 39,682 | ||
Tranche 2LN, term loan 8.25% 5/22/21 (e) | 13,454 | 13,487 | ||
Kronos, Inc.: | ||||
Tranche 2LN, term loan 9.75% 4/30/20 (e) | 29,845 | 30,743 | ||
Tranche B 1LN, term loan 4.5% 10/30/19 (e) | 41,647 | 41,491 | ||
Nuance Communications, Inc. Tranche C, term loan 2.91% 8/7/19 (e) | 28,604 | 28,103 | ||
Renaissance Learning, Inc.: | ||||
Tranche 1LN, term loan 4.5% 4/9/21 (e) | 24,500 | 24,378 | ||
Tranche 2LN, term loan 8% 4/9/22 (e) | 11,500 | 11,443 | ||
Rovi Corp. Tranche A, term loan 2.66% 2/7/16 (e) | 3,006 | 2,991 | ||
Sophia L.P. Tranche B 1LN, term loan 4% 7/19/18 (e) | 7,478 | 7,525 | ||
SunGard Data Systems, Inc.: | ||||
Tranche C, term loan 3.9025% 2/28/17 (e) | 32,706 | 32,761 | ||
Tranche E, term loan 4% 3/8/20 (e) | 54,917 | 55,054 | ||
Syniverse Holdings, Inc. Tranche B, term loan: | ||||
4% 4/23/19 (e) | 9,598 | 9,574 | ||
4% 4/23/19 (e) | 19,390 | 19,342 | ||
| 1,710,710 | |||
Telecommunications - 5.0% | ||||
Altice Financing SA Tranche B, term loan 5.5% 6/24/19 (e) | 160,664 | 162,873 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Telecommunications - continued | ||||
Consolidated Communications, Inc. Tranche B, term loan 4.25% 12/23/20 (e) | $ 14,484 | $ 14,484 | ||
Crown Castle Operating Co. Tranche B 2LN, term loan 3.25% 1/31/21 (e) | 104,997 | 104,997 | ||
Digicel International Finance Ltd. Tranche D 1LN, term loan 3.75% 3/31/17 (e) | 9,000 | 8,955 | ||
DigitalGlobe, Inc. Tranche B, term loan 3.75% 1/31/20 (e) | 14,464 | 14,482 | ||
FairPoint Communications, Inc. Tranche B, term loan 7.5% 2/14/19 (e) | 18,322 | 18,872 | ||
Genesys Telecom Holdings U.S., Inc. Tranche B, term loan 4% 2/8/20 (e) | 24,812 | 24,595 | ||
Integra Telecom Holdings, Inc. Tranche B, term loan 5.25% 2/22/19 (e) | 12,870 | 12,902 | ||
Intelsat Jackson Holdings SA Tranche B 2LN, term loan 3.75% 6/30/19 (e) | 132,070 | 132,242 | ||
Level 3 Financing, Inc.: | ||||
Tranche B 3LN, term loan 4% 8/1/19 (e) | 13,330 | 13,363 | ||
Tranche B 4LN, term loan 4% 1/15/20 (e) | 85,500 | 85,714 | ||
LTS Buyer LLC: | ||||
Tranche 2LN, term loan 8% 4/11/21 (e) | 3,868 | 3,897 | ||
Tranche B 1LN, term loan 4% 4/11/20 (e) | 33,416 | 33,249 | ||
SBA Senior Finance II, LLC term loan 3.25% 3/24/21 (e) | 35,000 | 34,825 | ||
Securus Technologies Holdings, Inc.: | ||||
Tranche 2LN, term loan 9% 4/30/21 (e) | 4,635 | 4,670 | ||
Tranche B 1LN, term loan 4.75% 4/30/20 (e) | 40,164 | 40,014 | ||
Telesat Holding, Inc. Tranche B, term loan 3.5% 3/28/19 (e) | 69,300 | 69,127 | ||
Windstream Corp. Tranche B 4LN, term loan 3.5% 1/23/20 (e) | 34,563 | 34,303 | ||
| 813,564 | |||
Textiles & Apparel - 0.3% | ||||
Party City Holdings, Inc. Tranche B LN, term loan 4% 7/27/19 (e) | 45,192 | 45,022 | ||
TOTAL BANK LOAN OBLIGATIONS (Cost $14,280,619) |
| |||
Nonconvertible Bonds - 6.9% | ||||
| Principal Amount (000s) | Value (000s) | ||
Air Transportation - 0.1% | ||||
Continental Airlines, Inc.: | ||||
6.125% 4/29/18 (c) | $ 3,000 | $ 3,195 | ||
9.25% 5/10/17 | 1,829 | 2,067 | ||
| 5,262 | |||
Automotive - 0.3% | ||||
General Motors Acceptance Corp. 2.4361% 12/1/14 (e) | 40,000 | 40,152 | ||
Banks & Thrifts - 1.0% | ||||
Ally Financial, Inc.: | ||||
2.9079% 7/18/16 (e) | 75,000 | 76,830 | ||
3.125% 1/15/16 | 4,000 | 4,080 | ||
4.625% 6/26/15 | 4,000 | 4,151 | ||
Bank of America Corp. 1.0536% 3/22/16 (e) | 5,000 | 5,033 | ||
GMAC LLC 2.4361% 12/1/14 (e) | 70,187 | 70,592 | ||
| 160,686 | |||
Broadcasting - 0.2% | ||||
AMC Networks, Inc. 4.75% 12/15/22 | 6,600 | 6,584 | ||
Clear Channel Communications, Inc. 9% 12/15/19 | 8,677 | 9,241 | ||
Starz LLC/Starz Finance Corp. 5% 9/15/19 | 9,000 | 9,326 | ||
Univision Communications, Inc. 6.75% 9/15/22 (c) | 5,368 | 5,905 | ||
| 31,056 | |||
Building Materials - 0.1% | ||||
CEMEX S.A.B. de CV 4.9765% 10/15/18 (c)(e) | 10,000 | 10,525 | ||
HD Supply, Inc. 7.5% 7/15/20 | 10,000 | 10,825 | ||
| 21,350 | |||
Cable TV - 0.5% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp.: | ||||
5.125% 2/15/23 | 17,065 | 16,660 | ||
5.25% 3/15/21 | 13,070 | 13,315 | ||
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (c) | 10,815 | 11,329 | ||
Lynx I Corp. 5.375% 4/15/21 (c) | 5,000 | 5,125 | ||
Numericable Group SA 4.875% 5/15/19 (c)(d) | 27,120 | 27,391 | ||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 5.5% 1/15/23 (c) | 7,000 | 7,070 | ||
Virgin Media Finance PLC 4.875% 2/15/22 | 2,000 | 1,815 | ||
| 82,705 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Capital Goods - 0.0% | ||||
Shale-Inland Holdings LLC/Shale-Inland Finance Corp. 8.75% 11/15/19 (c) | $ 3,000 | $ 3,090 | ||
Chemicals - 0.0% | ||||
Nufarm Australia Ltd. 6.375% 10/15/19 (c) | 5,000 | 5,163 | ||
Containers - 0.5% | ||||
Ardagh Packaging Finance PLC 7.375% 10/15/17 (c) | 5,439 | 5,765 | ||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc. 7.375% 10/15/17 (c) | 10,736 | 11,367 | ||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | ||||
5.75% 10/15/20 | 58,325 | 60,658 | ||
7.125% 4/15/19 | 5,000 | 5,275 | ||
| 83,065 | |||
Diversified Financial Services - 0.7% | ||||
CIT Group, Inc.: | ||||
4.75% 2/15/15 (c) | 14,000 | 14,368 | ||
5% 5/15/17 | 7,000 | 7,481 | ||
Citigroup, Inc. 1.1888% 7/25/16 (e) | 10,000 | 10,107 | ||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
3.5% 3/15/17 (c) | 18,720 | 18,860 | ||
4.875% 3/15/19 (c) | 15,000 | 15,206 | ||
International Lease Finance Corp.: | ||||
2.1834% 6/15/16 (e) | 29,485 | 29,780 | ||
3.875% 4/15/18 | 7,000 | 7,105 | ||
4.875% 4/1/15 | 4,000 | 4,125 | ||
6.25% 5/15/19 | 10,000 | 11,038 | ||
| 118,070 | |||
Diversified Media - 0.1% | ||||
Clear Channel Worldwide Holdings, Inc.: | ||||
6.5% 11/15/22 | 5,130 | 5,463 | ||
6.5% 11/15/22 | 13,870 | 14,841 | ||
| 20,304 | |||
Electric Utilities - 0.3% | ||||
Energy Future Intermediate Holding Co. LLC/Energy Future Intermediate Holding Finance, Inc.: | ||||
10% 12/1/20 (c) | 32,605 | 34,521 | ||
12% 3/1/22 (c) | 11,000 | 13,090 | ||
NRG Energy, Inc. 6.625% 3/15/23 | 4,000 | 4,180 | ||
| 51,791 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Energy - 0.4% | ||||
Access Midstream Partners LP/ACMP Finance Corp. 4.875% 5/15/23 | $ 7,000 | $ 7,088 | ||
Atlas Pipeline Partners LP/Atlas Pipeline Finance Corp.: | ||||
5.875% 8/1/23 | 3,000 | 2,963 | ||
6.625% 10/1/20 | 5,645 | 5,984 | ||
Chesapeake Energy Corp. 3.4677% 4/15/19 (e) | 29,720 | 30,017 | ||
Northern Tier Energy LLC/Northern Tier Finance Corp. 7.125% 11/15/20 | 4,000 | 4,290 | ||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 6.375% 8/1/22 | 4,492 | 4,806 | ||
Western Refining, Inc. 6.25% 4/1/21 | 5,305 | 5,517 | ||
| 60,665 | |||
Entertainment/Film - 0.1% | ||||
Cinemark U.S.A., Inc. 5.125% 12/15/22 | 3,185 | 3,185 | ||
Regal Entertainment Group 5.75% 2/1/25 | 3,090 | 3,059 | ||
| 6,244 | |||
Food/Beverage/Tobacco - 0.0% | ||||
ESAL GmbH 6.25% 2/5/23 (c) | 4,000 | 3,820 | ||
Gaming - 0.1% | ||||
MCE Finance Ltd. 5% 2/15/21 (c) | 10,000 | 9,975 | ||
Healthcare - 0.3% | ||||
Community Health Systems, Inc. 5.125% 8/15/18 | 10,755 | 11,306 | ||
DaVita HealthCare Partners, Inc. 5.75% 8/15/22 | 8,235 | 8,719 | ||
HCA Holdings, Inc. 3.75% 3/15/19 | 25,000 | 25,188 | ||
Tenet Healthcare Corp. 4.75% 6/1/20 | 8,680 | 8,723 | ||
| 53,936 | |||
Homebuilders/Real Estate - 0.1% | ||||
CBRE Group, Inc. 5% 3/15/23 | 17,990 | 18,125 | ||
Leisure - 0.0% | ||||
Six Flags Entertainment Corp. 5.25% 1/15/21 (c) | 4,000 | 4,040 | ||
Metals/Mining - 0.1% | ||||
CONSOL Energy, Inc. 8% 4/1/17 | 6,475 | 6,748 | ||
Peabody Energy Corp. 6% 11/15/18 | 5,000 | 5,313 | ||
| 12,061 | |||
Services - 0.1% | ||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 2.9861% 12/1/17 (c)(e) | 14,410 | 14,464 | ||
TransUnion Holding Co., Inc. 9.625% 6/15/18 pay-in-kind (e) | 3,000 | 3,161 | ||
| 17,625 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Technology - 0.4% | ||||
Brocade Communications Systems, Inc. 4.625% 1/15/23 | $ 7,235 | $ 6,928 | ||
First Data Corp. 6.75% 11/1/20 (c) | 39,130 | 41,771 | ||
NXP BV/NXP Funding LLC: | ||||
5.75% 2/15/21 (c) | 14,760 | 15,609 | ||
5.75% 3/15/23 (c) | 5,000 | 5,288 | ||
| 69,596 | |||
Telecommunications - 1.5% | ||||
Altice Financing SA: | ||||
6.5% 1/15/22 (c) | 7,240 | 7,584 | ||
7.875% 12/15/19 (c) | 4,000 | 4,368 | ||
Columbus International, Inc. 7.375% 3/30/21 (c) | 14,535 | 15,189 | ||
DigitalGlobe, Inc. 5.25% 2/1/21 | 3,905 | 3,807 | ||
Intelsat Jackson Holdings SA 6.625% 12/15/22 (Reg. S) | 20,000 | 20,550 | ||
iPCS, Inc. 3.4876% 5/1/14 pay-in-kind (e) | 69,150 | 69,150 | ||
Level 3 Financing, Inc. 3.8459% 1/15/18 (c)(e) | 15,000 | 15,225 | ||
Sprint Capital Corp.: | ||||
6.875% 11/15/28 | 4,000 | 3,950 | ||
6.9% 5/1/19 | 5,000 | 5,488 | ||
Sprint Communications, Inc.: | ||||
6% 11/15/22 | 30,000 | 30,225 | ||
9% 11/15/18 (c) | 3,000 | 3,656 | ||
Telesat Canada/Telesat LLC 6% 5/15/17 (c) | 3,000 | 3,101 | ||
Verizon Communications, Inc.: | ||||
1.7634% 9/15/16 (e) | 20,000 | 20,582 | ||
1.9841% 9/14/18 (e) | 35,000 | 36,954 | ||
| 239,829 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $1,084,851) |
|
Common Stocks - 0.2% | |||
Shares |
| ||
Broadcasting - 0.0% | |||
Cumulus Media, Inc. Class A (a) | 229,315 | 1,470 | |
ION Media Networks, Inc. (a) | 2,842 | 1,919 | |
| 3,389 | ||
Chemicals - 0.2% | |||
LyondellBasell Industries NV Class A | 245,943 | 22,750 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
Diversified Financial Services - 0.0% | |||
Newhall Holding Co. LLC Class A (a) | 289,870 | $ 638 | |
Electric Utilities - 0.0% | |||
Calpine Corp. (a) | 20,715 | 475 | |
Entertainment/Film - 0.0% | |||
MGM Holdings, Inc. (a) | 71,585 | 5,288 | |
Hotels - 0.0% | |||
Tropicana Las Vegas Hotel & Casino, Inc. Class A (a) | 48,650 | 1,771 | |
Paper - 0.0% | |||
White Birch Cayman Holdings Ltd. (a) | 12,570 | 0 | |
Publishing/Printing - 0.0% | |||
Houghton Mifflin Harcourt Co. warrants 6/22/19 (a)(i) | 13,699 | 21 | |
Telecommunications - 0.0% | |||
FairPoint Communications, Inc. (a) | 34,287 | 468 | |
TOTAL COMMON STOCKS (Cost $18,492) |
| ||
Other - 0.0% | |||
|
|
|
|
Other - 0.0% | |||
Idearc, Inc. Claim (a) | 1,888,944 |
| |
Money Market Funds - 6.8% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 1,112,943,074 |
| |
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $16,496,905) | 16,592,087 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (274,085) | ||
NET ASSETS - 100% | $ 16,318,002 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(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 $336,060,000 or 2.1% of net assets. |
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(f) 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. |
(g) The coupon rate will be determined upon settlement of the loan after period end. |
(h) Position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $3,960,000 and $4,019,000, respectively. The coupon rate will be determined at time of settlement. |
(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $21,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Houghton Mifflin Harcourt Co. warrants 6/22/19 | 6/22/12 | $ 26 |
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 | $ 726 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 10,469 | $ 6,758 | $ - | $ 3,711 |
Financials | 638 | - | - | 638 |
Materials | 22,750 | 22,750 | - | - |
Telecommunication Services | 468 | 468 | - | - |
Utilities | 475 | 475 | - | - |
Bank Loan Obligations | 14,325,734 | - | 14,220,249 | 105,485 |
Corporate Bonds | 1,118,610 | - | 1,118,610 | - |
Other | - | - | - | - |
Money Market Funds | 1,112,943 | 1,112,943 | - | - |
Total Investments in Securities: | $ 16,592,087 | $ 1,143,394 | $ 15,338,859 | $ 109,834 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 89.5% |
Luxembourg | 2.6% |
Australia | 2.2% |
Netherlands | 1.8% |
Germany | 1.0% |
Others (Individually Less Than 1%) | 2.9% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2014 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $15,383,962) | $ 15,479,144 |
|
Fidelity Central Funds (cost $1,112,943) | 1,112,943 |
|
Total Investments (cost $16,496,905) |
| $ 16,592,087 |
Cash |
| 124,084 |
Receivable for investments sold | 140,061 | |
Receivable for fund shares sold | 16,367 | |
Dividends receivable | 172 | |
Interest receivable | 60,723 | |
Distributions receivable from Fidelity Central Funds | 116 | |
Prepaid expenses | 13 | |
Total assets | 16,933,623 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 517,938 | |
Delayed delivery | 27,120 | |
Payable for fund shares redeemed | 48,863 | |
Distributions payable | 10,637 | |
Accrued management fee | 7,692 | |
Distribution and service plan fees payable | 1,200 | |
Other affiliated payables | 1,919 | |
Other payables and accrued expenses | 252 | |
Total liabilities | 615,621 | |
|
|
|
Net Assets | $ 16,318,002 | |
Net Assets consist of: |
| |
Paid in capital | $ 16,146,128 | |
Undistributed net investment income | 131,240 | |
Accumulated undistributed net realized gain (loss) on investments | (54,548) | |
Net unrealized appreciation (depreciation) on investments | 95,182 | |
Net Assets | $ 16,318,002 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2014 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 9.96 | |
|
|
|
Maximum offering price per share (100/97.25 of $9.96) | $ 10.24 | |
Class T: | $ 9.95 | |
|
|
|
Maximum offering price per share (100/97.25 of $9.95) | $ 10.23 | |
Class B: | $ 9.95 | |
|
|
|
Class C: | $ 9.96 | |
|
|
|
Fidelity Floating Rate High Income Fund: | $ 9.95 | |
|
|
|
Institutional Class: | $ 9.94 |
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.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended April 30, 2014 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 1,729 |
Interest |
| 324,203 |
Income from Fidelity Central Funds |
| 726 |
Total income |
| 326,658 |
|
|
|
Expenses | ||
Management fee | $ 45,515 | |
Transfer agent fees | 10,444 | |
Distribution and service plan fees | 7,315 | |
Accounting fees and expenses | 913 | |
Custodian fees and expenses | 92 | |
Independent trustees' compensation | 31 | |
Registration fees | 405 | |
Audit | 88 | |
Legal | 32 | |
Miscellaneous | 55 | |
Total expenses before reductions | 64,890 | |
Expense reductions | (31) | 64,859 |
Net investment income (loss) | 261,799 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 16,624 |
Change in net unrealized appreciation (depreciation) on investment securities |
| (20,313) |
Net gain (loss) | (3,689) | |
Net increase (decrease) in net assets resulting from operations | $ 258,110 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 261,799 | $ 410,895 |
Net realized gain (loss) | 16,624 | 72,218 |
Change in net unrealized appreciation (depreciation) | (20,313) | 9,078 |
Net increase (decrease) in net assets resulting | 258,110 | 492,191 |
Distributions to shareholders from net investment income | (252,800) | (375,589) |
Distributions to shareholders from net realized gain | (57,139) | (52,959) |
Total distributions | (309,939) | (428,548) |
Share transactions - net increase (decrease) | 904,590 | 4,793,436 |
Redemption fees | 356 | 916 |
Total increase (decrease) in net assets | 853,117 | 4,857,995 |
|
|
|
Net Assets | ||
Beginning of period | 15,464,885 | 10,606,890 |
End of period (including undistributed net investment income of $131,240 and undistributed net investment income of $122,241, respectively) | $ 16,318,002 | $ 15,464,885 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.79 | $ 9.31 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .153 | .310 | .340 | .317 | .391 | .354 |
Net realized and unrealized gain (loss) | - I | .070 | .195 | (.080) | .425 | 1.232 |
Total from investment operations | .153 | .380 | .535 | .237 | .816 | 1.586 |
Distributions from net investment income | (.147) | (.282) | (.325) | (.298) | (.287) | (.278) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.183) | (.331) | (.325) | (.298) | (.337) | (.278) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.96 | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.79 | $ 9.31 |
Total Return B, C, D | 1.54% | 3.89% | 5.60% | 2.46% | 8.96% | 20.31% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .99% A | .99% | .99% | 1.00% | 1.03% | 1.05% |
Expenses net of fee waivers, if any | .99% A | .99% | .99% | 1.00% | 1.03% | 1.05% |
Expenses net of all reductions | .99% A | .99% | .99% | 1.00% | 1.03% | 1.04% |
Net investment income (loss) | 3.08% A | 3.11% | 3.47% | 3.25% | 4.11% | 4.09% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,628 | $ 1,681 | $ 1,305 | $ 1,587 | $ 1,064 | $ 518 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .148 | .299 | .330 | .312 | .391 | .349 |
Net realized and unrealized gain (loss) | - I | .071 | .195 | (.070) | .416 | 1.228 |
Total from investment operations | .148 | .370 | .525 | .242 | .807 | 1.577 |
Distributions from net investment income | (.142) | (.272) | (.315) | (.293) | (.288) | (.279) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.178) | (.321) | (.315) | (.293) | (.338) | (.279) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.95 | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 |
Total Return B, C, D | 1.50% | 3.79% | 5.50% | 2.51% | 8.87% | 20.20% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.08% A | 1.09% | 1.09% | 1.05% | 1.02% | 1.04% |
Expenses net of fee waivers, if any | 1.08% A | 1.09% | 1.09% | 1.05% | 1.02% | 1.04% |
Expenses net of all reductions | 1.08% A | 1.09% | 1.09% | 1.05% | 1.02% | 1.04% |
Net investment income (loss) | 2.99% A | 3.01% | 3.37% | 3.19% | 4.12% | 4.10% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 269 | $ 272 | $ 241 | $ 271 | $ 242 | $ 143 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 | $ 7.99 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .126 | .256 | .288 | .266 | .341 | .305 |
Net realized and unrealized gain (loss) | - I | .071 | .195 | (.070) | .416 | 1.238 |
Total from investment operations | .126 | .327 | .483 | .196 | .757 | 1.543 |
Distributions from net investment income | (.120) | (.229) | (.273) | (.247) | (.238) | (.235) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.156) | (.278) | (.273) | (.247) | (.288) | (.235) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.95 | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 |
Total Return B, C, D | 1.27% | 3.35% | 5.05% | 2.03% | 8.30% | 19.74% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.52% A | 1.52% | 1.52% | 1.52% | 1.55% | 1.56% |
Expenses net of fee waivers, if any | 1.52% A | 1.52% | 1.52% | 1.52% | 1.55% | 1.55% |
Expenses net of all reductions | 1.52% A | 1.52% | 1.52% | 1.52% | 1.55% | 1.55% |
Net investment income (loss) | 2.55% A | 2.58% | 2.94% | 2.72% | 3.59% | 3.59% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 20 | $ 23 | $ 24 | $ 32 | $ 43 | $ 44 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.78 | $ 9.31 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .115 | .235 | .267 | .244 | .321 | .288 |
Net realized and unrealized gain (loss) | - I | .070 | .195 | (.070) | .415 | 1.235 |
Total from investment operations | .115 | .305 | .462 | .174 | .736 | 1.523 |
Distributions from net investment income | (.109) | (.207) | (.252) | (.225) | (.217) | (.215) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.145) | (.256) | (.252) | (.225) | (.267) | (.215) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.96 | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.78 | $ 9.31 |
Total Return B, C, D | 1.16% | 3.11% | 4.81% | 1.80% | 8.05% | 19.43% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.74% A | 1.74% | 1.74% | 1.74% | 1.76% | 1.78% |
Expenses net of fee waivers, if any | 1.74% A | 1.74% | 1.74% | 1.74% | 1.76% | 1.78% |
Expenses net of all reductions | 1.74% A | 1.74% | 1.74% | 1.74% | 1.76% | 1.78% |
Net investment income (loss) | 2.32% A | 2.35% | 2.72% | 2.50% | 3.38% | 3.35% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 942 | $ 960 | $ 806 | $ 852 | $ 622 | $ 335 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Floating Rate High Income Fund
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .167 | .337 | .368 | .345 | .418 | .377 |
Net realized and unrealized gain (loss) | - H | .071 | .195 | (.070) | .417 | 1.225 |
Total from investment operations | .167 | .408 | .563 | .275 | .835 | 1.602 |
Distributions from net investment income | (.161) | (.310) | (.353) | (.326) | (.316) | (.304) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.197) | (.359) | (.353) | (.326) | (.366) | (.304) |
Redemption fees added to paid in capital D | - H | .001 | - H | .001 | .001 | .002 |
Net asset value, end of period | $ 9.95 | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 |
Total Return B, C | 1.69% | 4.19% | 5.91% | 2.86% | 9.18% | 20.55% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .70% A | .70% | .71% | .71% | .73% | .75% |
Expenses net of fee waivers, if any | .70% A | .70% | .71% | .71% | .73% | .75% |
Expenses net of all reductions | .70% A | .70% | .71% | .71% | .73% | .75% |
Net investment income (loss) | 3.37% A | 3.39% | 3.75% | 3.53% | 4.41% | 4.39% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 9,775 | $ 8,882 | $ 5,720 | $ 5,399 | $ 3,566 | $ 2,354 |
Portfolio turnover rate F | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.97 | $ 9.92 | $ 9.71 | $ 9.77 | $ 9.29 | $ 7.99 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .164 | .332 | .363 | .341 | .415 | .379 |
Net realized and unrealized gain (loss) | - H | .071 | .196 | (.079) | .427 | 1.221 |
Total from investment operations | .164 | .403 | .559 | .262 | .842 | 1.600 |
Distributions from net investment income | (.158) | (.305) | (.349) | (.323) | (.313) | (.302) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.194) | (.354) | (.349) | (.323) | (.363) | (.302) |
Redemption fees added to paid in capital D | - H | .001 | - H | .001 | .001 | .002 |
Net asset value, end of period | $ 9.94 | $ 9.97 | $ 9.92 | $ 9.71 | $ 9.77 | $ 9.29 |
Total Return B, C | 1.66% | 4.15% | 5.87% | 2.72% | 9.27% | 20.54% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .75% A | .75% | .75% | .75% | .76% | .77% |
Expenses net of fee waivers, if any | .75% A | .75% | .75% | .75% | .76% | .77% |
Expenses net of all reductions | .75% A | .75% | .75% | .75% | .76% | .77% |
Net investment income (loss) | 3.32% A | 3.34% | 3.71% | 3.50% | 4.38% | 4.36% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,683 | $ 3,646 | $ 2,510 | $ 1,992 | $ 1,138 | $ 469 |
Portfolio turnover rate F | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Floating Rate High Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Floating Rate High Income Fund and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
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 and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. 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.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014 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 and may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Interest in the accompanying financial statements.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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.
Dividends 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 dividends 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.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to market discount, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 179,763 |
Gross unrealized depreciation | (52,316) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 127,447 |
|
|
Tax cost | $ 16,464,640 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2017 | $ (12,891) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 60 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Semiannual Report
3. Significant Accounting Policies - continued
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans. The Fund also invests in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities (including principal repayments of bank loan obligations), other than short-term securities, aggregated $5,872,626 and $4,460,329, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .56% 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.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 2,092 | $ 124 |
Class T | -% | .25% | 340 | 4 |
Class B | .55% | .15% | 77 | 61 |
Class C | .75% | .25% | 4,806 | 950 |
|
|
| $ 7,315 | $ 1,139 |
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 3.50% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% or .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 48 |
Class T | 9 |
Class B* | 12 |
Class C* | 55 |
| $ 124 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 1,220 | .15 |
Class T | 322 | .24 |
Class B | 25 | .23 |
Class C | 711 | .15 |
Fidelity Floating Rate High Income Fund | 5,135 | .11 |
Institutional Class | 3,031 | .16 |
| $ 10,444 |
|
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $15 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $26.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $5.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 24,588 | $ 41,401 |
Class T | 3,874 | 7,141 |
Class B | 265 | 529 |
Class C | 10,511 | 18,030 |
Fidelity Floating Rate High Income Fund | 153,718 | 214,851 |
Institutional Class | 59,844 | 93,637 |
Total | $ 252,800 | $ 375,589 |
From net realized gain |
|
|
Class A | $ 6,085 | $ 6,467 |
Class T | 983 | 1,176 |
Class B | 81 | 117 |
Class C | 3,472 | 3,997 |
Fidelity Floating Rate High Income Fund | 33,019 | 28,516 |
Institutional Class | 13,499 | 12,686 |
Total | $ 57,139 | $ 52,959 |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 22,875 | 75,563 | $ 228,535 | $ 753,535 |
Reinvestment of distributions | 2,525 | 3,658 | 25,210 | 36,455 |
Shares redeemed | (30,277) | (42,208) | (302,453) | (421,018) |
Net increase (decrease) | (4,877) | 37,013 | $ (48,708) | $ 368,972 |
Class T |
|
|
|
|
Shares sold | 2,607 | 10,009 | $ 26,018 | $ 99,597 |
Reinvestment of distributions | 439 | 727 | 4,371 | 7,232 |
Shares redeemed | (3,290) | (7,688) | (32,819) | (76,547) |
Net increase (decrease) | (244) | 3,048 | $ (2,430) | $ 30,282 |
Semiannual Report
9. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class B |
|
|
|
|
Shares sold | 160 | 663 | $ 1,596 | $ 6,596 |
Reinvestment of distributions | 28 | 50 | 281 | 495 |
Shares redeemed | (448) | (851) | (4,465) | (8,474) |
Net increase (decrease) | (260) | (138) | $ (2,588) | $ (1,383) |
Class C |
|
|
|
|
Shares sold | 8,291 | 30,392 | $ 82,814 | $ 303,076 |
Reinvestment of distributions | 1,055 | 1,609 | 10,532 | 16,022 |
Shares redeemed | (10,838) | (17,011) | (108,232) | (169,644) |
Net increase (decrease) | (1,492) | 14,990 | $ (14,886) | $ 149,454 |
Fidelity Floating Rate High Income Fund |
|
|
|
|
Shares sold | 207,340 | 483,346 | $ 2,068,584 | $ 4,812,772 |
Reinvestment of distributions | 15,374 | 20,114 | 153,243 | 200,158 |
Shares redeemed | (130,141) | (189,555) | (1,297,625) | (1,887,500) |
Net increase (decrease) | 92,573 | 313,905 | $ 924,202 | $ 3,125,430 |
Institutional Class |
|
|
|
|
Shares sold | 71,292 | 203,411 | $ 710,772 | $ 2,024,367 |
Reinvestment of distributions | 4,045 | 5,909 | 40,291 | 58,759 |
Shares redeemed | (70,435) | (96,688) | (702,063) | (962,445) |
Net increase (decrease) | 4,902 | 112,632 | $ 49,000 | $ 1,120,681 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Floating Rate High Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Floating Rate High Income Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of April 30, 2014, and the related statement of operations for the six months then ended, the statements of changes in net assets for the six months ended April 30, 2014 and for the year ended October 31, 2013, and the financial highlights for the six months ended April 30, 2014 and for each of the five years in the period ended October 31, 2013. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2014, by correspondence with the custodians, agent banks and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Floating Rate High Income Fund as of April 30, 2014, the results of its operations for the six months then ended, the changes in its net assets for the six months ended April 30, 2014 and for the year ended October 31, 2013, and the financial highlights for the six months ended April 30, 2014 and for each of the five years in the period ended October 31, 2013, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
June 18, 2014
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(U.K.) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
AFRI-USAN-0614 1.784878.111
Fidelity®
Floating Rate High Income
Fund
(A Class of Fidelity Advisor®
Floating Rate High Income Fund)
Semiannual Report
April 30, 2014
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to financial statements. | |
Report of Independent Registered Public Accounting Firm |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.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.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.40 | $ 4.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Class T | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.00 | $ 5.40 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.44 | $ 5.41 |
Class B | 1.52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.70 | $ 7.59 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.26 | $ 7.60 |
Class C | 1.74% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,011.60 | $ 8.68 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.17 | $ 8.70 |
Fidelity Floating Rate High Income Fund | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.90 | $ 3.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.32 | $ 3.51 |
Institutional Class | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.60 | $ 3.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.08 | $ 3.76 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Holdings as of April 30, 2014 | ||
(by issuer, excluding cash equivalents) | % of fund's | % of fund's net assets |
HCA Holdings, Inc. | 3.2 | 3.2 |
Community Health Systems, Inc. | 2.7 | 2.1 |
H.J. Heinz Co. | 2.6 | 2.6 |
First Data Corp. | 1.9 | 2.0 |
Hilton Worldwide Finance, LLC | 1.8 | 2.4 |
| 12.2 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Healthcare | 11.9 | 12.3 |
Technology | 10.9 | 10.4 |
Telecommunications | 6.5 | 6.5 |
Gaming | 5.8 | 3.8 |
Electric Utilities | 5.5 | 6.6 |
Quality Diversification (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
![]() | BBB 5.9% |
| ![]() | BBB 5.2% |
| ||
![]() | BB 38.8% |
| ![]() | BB 45.0% |
| ||
![]() | B 42.5% |
| ![]() | B 34.9% |
| ||
![]() | CCC,CC,C 2.8% |
| ![]() | CCC,CC,C 2.5% |
| ||
![]() | D 0.0%† |
| ![]() | D 0.0%† |
| ||
![]() | Not Rated 4.7% |
| ![]() | Not Rated 3.2% |
| ||
![]() | Other Investments 0.2% |
| ![]() | Other Investments 0.2% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
† Amount represents less than 0.1% | |||||||
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014* | As of October 31, 2013** | ||||||
![]() | Bank Loan |
| ![]() | Bank Loan |
| ||
![]() | Nonconvertible |
| ![]() | Nonconvertible |
| ||
![]() | Common Stocks 0.2% |
| ![]() | Common Stocks 0.2% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 10.5% |
| ** Foreign investments | 10.0% |
|
Semiannual Report
Investments April 30, 2014
Showing Percentage of Net Assets
Bank Loan Obligations (f) - 87.8% | ||||
| Principal Amount (000s) | Value (000s) | ||
Aerospace - 0.9% | ||||
TransDigm, Inc. Tranche C, term loan 3.75% 2/28/20 (e) | $ 144,883 | $ 144,339 | ||
Air Transportation - 0.2% | ||||
Delta Air Lines, Inc. Tranche B 1LN, term loan 3.5% 10/18/18 (e) | 13,875 | 13,805 | ||
U.S. Airways, Inc. Tranche B 2LN, term loan 3% 11/23/16 (e) | 25,000 | 24,938 | ||
| 38,743 | |||
Automotive - 1.8% | ||||
Affinia Group, Inc. Tranche B 2LN, term loan 4.75% 4/25/20 (e) | 14,287 | 14,287 | ||
Allison Transmission, Inc. Tranche B 3LN, term loan 3.75% 8/23/19 (e) | 7,739 | 7,739 | ||
Chrysler Group LLC: | ||||
term loan 3.25% 12/31/18 (e) | 54,000 | 53,460 | ||
Tranche B, term loan 3.5% 5/24/17 (e) | 81,665 | 81,563 | ||
Federal-Mogul Corp. Tranche C, term loan 4.75% 4/15/21 (e) | 20,000 | 19,875 | ||
North American Lifting Holdings, Inc.: | ||||
Tranche 1LN, term loan 5.5% 11/27/20 (e) | 16,958 | 17,063 | ||
Tranche 2LN, term loan 10% 11/27/21 (e) | 24,370 | 24,340 | ||
Schaeffler AG Tranche C, term loan 4.25% 1/27/17 (e) | 41,000 | 41,154 | ||
The Goodyear Tire & Rubber Co. Tranche 2LN, term loan 4.75% 4/30/19 (e) | 16,000 | 16,120 | ||
Tower Automotive Holdings U.S.A. LLC term loan 4% 4/23/20 (e) | 26,746 | 26,612 | ||
| 302,213 | |||
Broadcasting - 2.8% | ||||
Clear Channel Capital I LLC Tranche B, term loan 3.8003% 1/29/16 (e) | 88,025 | 87,365 | ||
Clear Channel Communications, Inc. Tranche D, term loan 6.9003% 1/30/19 (e) | 68,720 | 68,119 | ||
ION Media Networks, Inc. Tranche B, term loan 5% 12/18/20 (e) | 28,928 | 29,072 | ||
Nielsen Finance LLC Tranche B 2LN, term loan 3.152% 4/15/21 (e) | 80,000 | 80,000 | ||
Nine Entertainment Co. Tranche B, term loan 3.25% 2/5/20 (e) | 14,865 | 14,642 | ||
TWCC Holding Corp. term loan 3.5% 2/11/17 (e) | 66,020 | 65,071 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Broadcasting - continued | ||||
Univision Communications, Inc.: | ||||
Tranche C 3LN, term loan 4% 3/1/20 (e) | $ 9,900 | $ 9,838 | ||
Tranche C 4LN, term loan 4% 3/1/20 (e) | 104,124 | 103,473 | ||
| 457,580 | |||
Building Materials - 0.8% | ||||
American Builders & Contractors Supply Co., Inc. Tranche B, term loan 3.5% 4/16/20 (e) | 34,909 | 34,821 | ||
Armstrong World Industries, Inc. Tranche B, term loan 3.5% 3/15/20 (e) | 23,710 | 23,710 | ||
Continental Building Products Tranche B 1LN, term loan 4.75% 8/28/20 (e) | 15,880 | 15,880 | ||
Pinafore LLC Tranche B 2LN, term loan 3.75% 9/21/16 (e) | 42,091 | 42,038 | ||
Ply Gem Industries, Inc. Tranche B, term loan 4% 2/1/21 (e) | 7,095 | 7,024 | ||
| 123,473 | |||
Cable TV - 4.9% | ||||
Atlantic Broad Tranche B, term loan 3.25% 11/30/19 (e) | 27,395 | 27,121 | ||
CCO Holdings, LLC Tranche 3LN, term loan 2.6503% 9/6/14 (e) | 69,097 | 68,903 | ||
Cequel Communications LLC Tranche B, term loan 3.5% 2/14/19 (e) | 122,966 | 122,351 | ||
Charter Communications Operating LLC: | ||||
Tranche E, term loan 3% 7/1/20 (e) | 48,963 | 48,289 | ||
Tranche F, term loan 3% 1/3/21 (e) | 94,709 | 93,289 | ||
CSC Holdings LLC Tranche B, term loan 2.6503% 4/17/20 (e) | 133,327 | 131,500 | ||
Numericable LLC: | ||||
Tranche B 1LN, term loan 4/23/20 (g) | 40,187 | 40,137 | ||
Tranche B 2LN, term loan 4/23/20 (g) | 34,768 | 34,724 | ||
RCN Telecom Services, LLC Tranche B, term loan 4.5% 3/1/20 (e) | 6,775 | 6,775 | ||
UPC Broadband Holding BV Tranche AH, term loan 3.25% 6/30/21 (e) | 34,000 | 33,660 | ||
Virgin Media Finance PLC Tranche B, term loan 3.5% 6/7/20 (e) | 55,000 | 54,450 | ||
WideOpenWest Finance LLC Tranche B, term loan 4.75% 4/1/19 (e) | 32,670 | 32,752 | ||
Ziggo B.V.: | ||||
Tranche B 1LN, term loan: | ||||
1/15/22 (g) | 2,063 | 2,027 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Cable TV - continued | ||||
Ziggo B.V.: - continued | ||||
3.25% 1/15/22 (e) | $ 35,286 | $ 34,668 | ||
Tranche B 2LN, term loan: | ||||
1/15/22 (g) | 1,934 | 1,900 | ||
3.25% 1/15/22 (e) | 22,134 | 21,747 | ||
Tranche B 3LN, term loan 1/15/22 (g) | 39,583 | 38,891 | ||
| 793,184 | |||
Capital Goods - 0.3% | ||||
Doncasters PLC Tranche B 2LN, term loan 9.5% 10/9/20 (e) | 7,862 | 8,019 | ||
SRAM LLC. Tranche B, term loan 4.0092% 4/10/20 (e) | 40,271 | 39,667 | ||
| 47,686 | |||
Chemicals - 1.0% | ||||
Cyanco Intermediate Corp. Tranche B, term loan 5.5% 5/1/20 (e) | 30,482 | 30,558 | ||
Emerald Performance Materials, LLC Tranche B, term loan 6.75% 5/18/18 (e) | 2,948 | 2,948 | ||
MacDermid, Inc. Tranche B 1LN, term loan 4% 6/7/20 (e) | 39,548 | 39,449 | ||
Royal Adhesives & Sealants LLC Tranche B 1LN, term loan 5.5% 7/31/18 (e) | 15,547 | 15,586 | ||
Tata Chemicals North America, Inc. Tranche B, term loan 3.75% 8/9/20 (e) | 12,903 | 12,838 | ||
U.S. Coatings Acquisition, Inc. Tranche B, term loan 4% 2/1/20 (e) | 54,588 | 54,451 | ||
| 155,830 | |||
Consumer Products - 1.1% | ||||
Jarden Corp. Tranche B, term loan 2.7162% 3/31/18 (e) | 16,037 | 16,037 | ||
Kate Spade & Co. Tranche B, term loan 4/10/21 (g) | 17,965 | 17,965 | ||
NBTY, Inc. Tranche B 2LN, term loan 3.5% 10/1/17 (e) | 14,179 | 14,161 | ||
Revlon Consumer Products Corp.: | ||||
term loan 4% 8/19/19 (e) | 30,923 | 30,884 | ||
Tranche B, term loan 3.25% 11/19/17 (e) | 13,500 | 13,483 | ||
Spotless Holdings Ltd. Tranche B 1LN, term loan 5% 10/2/18 (e) | 16,859 | 16,922 | ||
Sun Products Corp. Tranche B, term loan 5.5125% 3/23/20 (e) | 15,210 | 14,488 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Consumer Products - continued | ||||
Tempur Sealy International, Inc. Tranche B, term loan 3.5% 3/18/20 (e) | $ 18,924 | $ 18,807 | ||
Wilsonart LLC Tranche B, term loan 4% 10/31/19 (e) | 42,861 | 42,433 | ||
| 185,180 | |||
Containers - 2.1% | ||||
Ardagh Holdings U.S.A., Inc. Tranche B, term loan: | ||||
4% 12/17/19 (e) | 55,630 | 55,352 | ||
4.25% 12/17/19 (e) | 17,481 | 17,394 | ||
Berlin Packaging, LLC: | ||||
Tranche 1LN, term loan 4.75% 4/3/19 (e) | 7,532 | 7,561 | ||
Tranche 2LN, term loan 8.75% 4/3/20 (e) | 3,855 | 3,937 | ||
Berry Plastics Corp. Tranche E, term loan 3.75% 1/6/21 (e) | 15,000 | 14,888 | ||
Berry Plastics Group, Inc. term loan 3.5% 2/8/20 (e) | 110,106 | 109,005 | ||
BWAY Holding Co. Tranche B, term loan 4.5% 8/6/17 (e) | 15,148 | 15,186 | ||
Consolidated Container Co. Tranche B, term loan 5% 7/3/19 (e) | 8,845 | 8,857 | ||
Multi Packaging Solutions, Inc. term loan 4.25% 9/30/20 (e) | 7,000 | 6,983 | ||
Reynolds Consumer Products Holdings, Inc. Tranche B, term loan 4% 12/1/18 (e) | 95,112 | 95,112 | ||
Tricorbraun, Inc. Tranche B, term loan 4% 5/3/18 (e) | 3,804 | 3,783 | ||
| 338,058 | |||
Diversified Financial Services - 2.6% | ||||
AlixPartners LLP Tranche B 2LN, term loan 4% 7/10/20 (e) | 19,750 | 19,701 | ||
Delos Finance SARL Tranche B LN, term loan 3.5% 3/6/21 (e) | 51,095 | 51,095 | ||
Energy & Minerals Group Tranche B, term loan 4.75% 3/27/20 (e) | 14,920 | 14,920 | ||
Fly Funding II Sarl Tranche B, term loan 4.5% 8/9/19 (e) | 14,906 | 14,981 | ||
Flying Fortress, Inc. term loan 3.5% 6/30/17 (e) | 97,833 | 97,833 | ||
HarbourVest Partners LLC Tranche B, term loan 3.25% 2/4/21 (e) | 15,366 | 15,241 | ||
Home Loan Servicing Solutions Ltd. Tranche B, term loan 4.5% 6/27/20 (e) | 14,639 | 14,639 | ||
LPL Holdings, Inc. Tranche B, term loan 3.25% 3/29/19 (e) | 32,846 | 32,682 | ||
Moxie Patriot LLC Tranche B, term loan 6.75% 12/19/20 (e) | 8,000 | 8,190 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Diversified Financial Services - continued | ||||
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 2/15/18 (e) | $ 30,616 | $ 30,769 | ||
Sheridan Investment Partners I, LLC Tranche B 2LN, term loan 4.25% 10/1/19 (e) | 20,181 | 20,231 | ||
Star West Generation LLC Tranche B, term loan 4.25% 3/13/20 (e) | 22,770 | 22,713 | ||
TransUnion LLC Tranche B, term loan 4% 4/9/21 (e) | 77,500 | 77,113 | ||
| 420,108 | |||
Diversified Media - 0.6% | ||||
Advanstar Communications, Inc. Tranche B 1LN, term loan 5.5% 4/29/19 (e) | 8,415 | 8,489 | ||
McGraw-Hill School Education Tranche B, term loan 6.25% 12/18/19 (e) | 18,454 | 18,546 | ||
Media General, Inc. Tranche B. term loan 4.25% 7/31/20 (e) | 23,810 | 23,839 | ||
WMG Acquisition Corp. term loan 3.75% 7/1/20 (e) | 55,712 | 55,434 | ||
| 106,308 | |||
Electric Utilities - 5.2% | ||||
Alinta Energy Finance Pty. Ltd. Tranche B, term loan: | ||||
8/13/18 (h) | 3,960 | 4,019 | ||
6.375% 8/13/19 (e) | 60,222 | 61,125 | ||
Calpine Construction Finance Co. LP: | ||||
Tranche B 1LN, term loan 3% 5/3/20 (e) | 85,127 | 83,105 | ||
Tranche B 2LN, term loan 3.25% 1/31/22 (e) | 54,325 | 53,170 | ||
Calpine Corp.: | ||||
Tranche B 2LN, term loan 4% 4/1/18 (e) | 11,714 | 11,744 | ||
Tranche B 3LN, term loan 4% 10/9/19 (e) | 29,562 | 29,562 | ||
Tranche B, term loan 4% 4/1/18 (e) | 108,374 | 108,645 | ||
Dynegy, Inc. Tranche B 2LN, term loan 4% 4/23/20 (e) | 25,765 | 25,765 | ||
EquiPower Resources Holdings LLC: | ||||
Tranche B 1LN, term loan 4.25% 12/21/18 (e) | 23,750 | 23,780 | ||
Tranche C, term loan 4.25% 12/31/19 (e) | 32,210 | 32,210 | ||
Essential Power LLC Tranche B, term loan 4.75% 8/8/19 (e) | 16,032 | 16,032 | ||
InterGen NV Tranche B, term loan 5.5% 6/13/20 (e) | 33,662 | 33,999 | ||
La Frontera Generation, LLC Tranche B, term loan 4.5% 9/30/20 (e) | 82,393 | 82,393 | ||
NRG Energy, Inc. Tranche B, term loan 2.75% 7/1/18 (e) | 83,589 | 82,544 | ||
Tempus Public Foundation Generation Holdings LLC Tranche B, term loan 4.75% 12/31/17 (e) | 23,496 | 22,615 | ||
The AES Corp. Tranche B, term loan 3.75% 6/1/18 (e) | 65,286 | 65,534 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Electric Utilities - continued | ||||
Topaz Power Holdings, LLC Tranche B, term loan 5.25% 2/26/20 (e) | $ 35,787 | $ 34,892 | ||
TXU Energy LLC Tranche B, term loan: | ||||
3.7369% 10/10/14 (e) | 10,052 | 7,602 | ||
4.7369% 10/10/17 (e) | 66,622 | 50,383 | ||
USIC Holdings, Inc. Tranche B, term loan 4% 7/10/20 (e) | 16,376 | 16,172 | ||
Windsor Financing, LLC Tranche B, term loan 6.25% 12/5/17 (e) | 2,772 | 2,841 | ||
| 848,132 | |||
Energy - 4.2% | ||||
Alon U.S.A. Partners LP term loan 9.25% 11/26/18 (e) | 8,778 | 9,107 | ||
Atlantic Power Ltd. Partnership Tranche B LN, term loan 4.75% 2/24/21 (e) | 35,915 | 36,050 | ||
Atlas Energy LP Tranche B, term loan 6.5% 7/31/19 (e) | 8,069 | 8,211 | ||
Empire Generating Co. LLC: | ||||
Tranche B, term loan 5.25% 3/14/21 (e) | 29,675 | 29,786 | ||
Tranche C, term loan 5.25% 3/14/21 (e) | 2,070 | 2,078 | ||
EP Energy LLC term loan 4.5% 4/30/19 (e) | 1,500 | 1,500 | ||
Everest Acquisition LLC Tranche B 3LN, term loan 3.5% 5/24/18 (e) | 42,333 | 42,069 | ||
ExGen Renewables I, LLC Tranche B term loan 5.25% 2/6/21 (e) | 16,154 | 16,356 | ||
Fieldwood Energy, LLC: | ||||
Tranche 2LN, term loan 8.375% 9/30/20 (e) | 140,755 | 144,978 | ||
Tranche B 1LN, term loan 3.875% 9/30/18 (e) | 39,825 | 39,725 | ||
GIM Channelview Cogeneration LLC Tranche B, term loan 4.25% 5/8/20 (e) | 12,401 | 12,417 | ||
MRC Global, Inc. Tranche B, term loan 4.75% 11/9/19 (e) | 44,750 | 44,920 | ||
Northeast Wind Capital II, LLC Tranche B, term loan 5% 11/14/20 (e) | 14,467 | 14,612 | ||
Offshore Group Investment Ltd. Tranche B, term loan 5% 10/25/17 (e) | 18,546 | 18,407 | ||
Pacific Drilling SA Tranche B, term loan 4.5% 6/3/18 (e) | 24,470 | 24,439 | ||
Panda Sherman Power, LLC term loan 9% 9/14/18 (e) | 5,000 | 5,113 | ||
Panda Temple Power, LLC term loan 7.25% 4/3/19 (e) | 11,000 | 11,289 | ||
Ruby Western Pipeline Holdings LLC Tranche B, term loan 3.5% 3/27/20 (e) | 30,509 | 30,432 | ||
Samson Investment Co. Tranche B 2LN, term loan 5% 9/25/18 (e) | 42,280 | 42,069 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Energy - continued | ||||
Seadrill Operating LP Tranche B, term loan 4% 2/21/21 (e) | $ 19,950 | $ 19,726 | ||
Sheridan Investment Partners I term loan 4.25% 12/16/20 (e) | 51,090 | 51,090 | ||
Sheridan Production Partners I: | ||||
Tranche A, term loan 4.25% 12/16/20 (e) | 7,107 | 7,107 | ||
Tranche M, term loan 4.25% 12/16/20 (e) | 2,651 | 2,651 | ||
TPF II LC LLC Tranche B, term loan 6.5% 8/21/19 (e) | 26,394 | 26,624 | ||
Vantage Drilling Co. Tranche B, term loan 5.75% 3/28/19 (e) | 14,850 | 14,776 | ||
Western Refining, Inc. Tranche B, term loan 4.25% 11/12/20 (e) | 26,289 | 26,355 | ||
| 681,887 | |||
Entertainment/Film - 1.1% | ||||
AMC Entertainment, Inc. Tranche B, term loan 3.5% 4/30/20 (e) | 24,762 | 24,731 | ||
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. Tranche B, term loan 3% 1/31/21 (e) | 26,660 | 26,560 | ||
Cinemark U.S.A., Inc. Tranche B, term loan 3.16% 12/18/19 (e) | 14,713 | 14,731 | ||
Digital Cinema Implementation Partners,LLC Tranche B, term loan 3.25% 5/17/21 (e) | 62,509 | 61,884 | ||
Live Nation Entertainment, Inc. Tranche B, term loan 3.5% 8/16/20 (e) | 19,358 | 19,213 | ||
William Morris Endeavor Entertainment, LLC. Tranche B 1LN, term loan 5/1/21 (g) | 35,000 | 34,825 | ||
| 181,944 | |||
Environmental - 0.7% | ||||
ADS Waste Holdings, Inc. Tranche B 2LN, term loan 3.75% 10/9/19 (e) | 35,550 | 35,372 | ||
Darling International, Inc. Tranche B, term loan 3.25% 1/6/21 (e) | 22,085 | 21,975 | ||
Tervita Corp. Tranche B 1LN, term loan 6.25% 5/15/18 (e) | 24,767 | 24,427 | ||
The Brickman Group, Ltd.: | ||||
Tranche 2LN, term loan 7.5% 12/18/21 (e) | 5,690 | 5,775 | ||
Tranche B 1LN, term loan 4% 12/18/20 (e) | 21,676 | 21,621 | ||
WTG Holdings III Corp. Tranche B 1LN, term loan 4.75% 1/15/21 (e) | 10,973 | 10,945 | ||
| 120,115 | |||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Food & Drug Retail - 1.4% | ||||
Albertson's LLC: | ||||
Tranche B 1LN, term loan 4.25% 3/21/16 (e) | $ 17,676 | $ 17,676 | ||
Tranche B 2LN, term loan 4.75% 3/21/19 (e) | 9,536 | 9,547 | ||
Ferrara Candy Co., Inc. Tranche B, term loan 7.5% 6/18/18 (e) | 21,582 | 20,287 | ||
Performance Food Group, Inc. Tranche 2LN, term loan 6.25% 11/14/19 (e) | 7,343 | 7,416 | ||
PRA Holdings, Inc. Tranche B, term loan 4.5% 9/23/20 (e) | 21,890 | 21,616 | ||
Rite Aid Corp.: | ||||
Tranche 2 LN2, term loan 4.875% 6/21/21 (e) | 25,210 | 25,462 | ||
Tranche 2LN, term loan 5.75% 8/21/20 (e) | 13,590 | 13,879 | ||
Tranche B 7LN, term loan 3.5% 2/21/20 (e) | 48,136 | 48,076 | ||
Roundys Supermarket, Inc. Tranche B LN, term loan 5.75% 3/3/21 (e) | 20,000 | 20,025 | ||
Sprouts Farmers Market LLC Tranche B, term loan 4% 4/23/20 (e) | 23,124 | 23,126 | ||
SUPERVALU, Inc. Tranche B, term loan 4.5% 3/21/19 (e) | 14,729 | 14,674 | ||
| 221,784 | |||
Food/Beverage/Tobacco - 3.8% | ||||
AdvancePierre Foods, Inc. Tranche 2LN, term loan 9.5% 10/10/17 (e) | 3,000 | 2,918 | ||
Arysta Lifescience SPC LLC: | ||||
Tranche B 1LN, term loan 4.5% 5/29/20 (e) | 42,677 | 42,624 | ||
Tranche B 2LN, term loan 8.25% 11/30/20 (e) | 25,000 | 25,438 | ||
Big Heart Pet Brands Tranche B LN, term loan 3.5% 3/8/20 (e) | 50,000 | 49,375 | ||
H.J. Heinz Co.: | ||||
Tranche B 1LN, term loan 3.25% 6/7/19 (e) | 24,813 | 24,844 | ||
Tranche B 2LN, term loan 3.5% 6/7/20 (e) | 402,350 | 404,350 | ||
JBS U.S.A. LLC Tranche B, term loan 3.75% 5/25/18 (e) | 19,242 | 19,242 | ||
Michael Foods, Inc. Tranche B, term loan 4.25% 2/25/18 (e) | 8,671 | 8,671 | ||
OSI Restaurant Partners LLC Tranche B, term loan 3.5% 10/26/19 (e) | 49,333 | 49,241 | ||
| 626,703 | |||
Gaming - 5.7% | ||||
Bally Technologies, Inc. Tranche B, term loan 4.25% 11/25/20 (e) | 29,581 | 29,618 | ||
Boyd Gaming Corp. Tranche B, term loan 4% 8/14/20 (e) | 26,498 | 26,498 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Gaming - continued | ||||
Caesars Entertainment Resort Properties LLC Tranche B 1LN, term loan 7% 10/11/20 (e) | $ 258,260 | $ 259,551 | ||
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 4/10/21 (g) | 96,605 | 96,363 | ||
CityCenter Holdings LLC Tranche B, term loan 5% 10/16/20 (e) | 73,162 | 73,527 | ||
Golden Nugget, Inc. Tranche B, term loan: | ||||
5.5% 11/21/19 (e) | 46,238 | 47,221 | ||
5.5% 11/21/19 (e) | 19,816 | 20,237 | ||
Graton Economic Development Authority Tranche B, term loan 9% 8/22/18 (e) | 9,000 | 9,383 | ||
Las Vegas Sands LLC Tranche B, term loan 3.25% 12/19/20 (e) | 59,850 | 59,476 | ||
MGM Mirage, Inc. Tranche B, term loan 3.5% 12/20/19 (e) | 109,491 | 108,812 | ||
Mohegan Tribal Gaming Authority Tranche B, term loan 5.5% 11/19/19 (e) | 29,770 | 30,187 | ||
Motor City Casino Tranche B, term loan 5% 3/1/17 (e) | 4,336 | 4,309 | ||
Pinnacle Entertainment, Inc. Tranche B 2LN, term loan 3.75% 8/13/20 (e) | 29,161 | 29,089 | ||
Scientific Games Corp. Tranche B, term loan 4.25% 10/18/20 (e) | 78,803 | 78,605 | ||
Seminole Tribe of Florida Tranche B, term loan 3% 4/29/20 (e) | 13,680 | 13,646 | ||
Shingle Springs Tribal Gaming Authority Tranche B, term loan 6.25% 8/29/19 (e) | 8,038 | 8,239 | ||
Station Casinos LLC Tranche B, term loan 4.25% 3/1/20 (e) | 16,300 | 16,280 | ||
Yonkers Racing Corp. Tranche B 1LN, term loan 4.25% 8/20/19 (e) | 14,429 | 14,140 | ||
| 925,181 | |||
Healthcare - 11.6% | ||||
Akorn, Inc. Tranche B, term loan 4.5% 4/17/21 (e) | 24,415 | 24,415 | ||
Alkermes, Inc. term loan 3.5% 9/25/19 (e) | 13,573 | 13,557 | ||
Biomet, Inc. Term B 2LN, term loan 3.6612% 7/25/17 (e) | 41,576 | 41,630 | ||
Carestream Health, Inc. Tranche B 1LN, term loan 5% 6/7/19 (e) | 70,307 | 70,658 | ||
Community Health Systems, Inc.: | ||||
Tranche D, term loan 4.25% 1/27/21 (e) | 334,876 | 335,713 | ||
Tranche E, term loan 3.4686% 1/25/17 (e) | 82,663 | 82,456 | ||
DaVita HealthCare Partners, Inc.: | ||||
Tranche A, term loan 2.91% 10/20/15 (e) | 38,978 | 38,880 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Healthcare - continued | ||||
DaVita HealthCare Partners, Inc.: - continued | ||||
Tranche B 2LN, term loan 4% 11/1/19 (e) | $ 55,065 | $ 55,272 | ||
Tranche B, term loan 4.5% 10/20/16 (e) | 84,685 | 84,897 | ||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (e) | 76,978 | 76,208 | ||
Emergency Medical Services Corp. Tranche B, term loan 4% 5/25/18 (e) | 36,553 | 36,621 | ||
Grifols, S.A. Tranche B, term loan 3.1503% 2/27/21 (e) | 50,000 | 49,875 | ||
HCA Holdings, Inc.: | ||||
Tranche A 4LN, term loan 2.6503% 2/2/16 (e) | 292,736 | 292,005 | ||
Tranche B 4LN, term loan 2.9836% 5/1/18 (e) | 35,870 | 35,827 | ||
Tranche B 5LN, term loan 2.9003% 3/31/17 (e) | 155,891 | 155,891 | ||
HCR Healthcare LLC Tranche B, term loan 5% 4/6/18 (e) | 36,145 | 35,422 | ||
IASIS Healthcare LLC Tranche B 2LN, term loan 4.5% 5/3/18 (e) | 34,563 | 34,563 | ||
Ikaria, Inc.: | ||||
Tranche 2LN, term loan 8.75% 2/12/22 (e) | 6,510 | 6,576 | ||
Tranche B 1LN, term loan 5% 2/12/21 (e) | 40,680 | 40,782 | ||
Jazz Pharmaceuticals, Inc. Tranche B 2LN, term loan 3.25% 6/12/18 (e) | 8,997 | 8,986 | ||
Millennium Labs, LLC Tranche B, term loan 5.25% 4/16/21 (e) | 58,330 | 58,111 | ||
MModal, Inc. Tranche B, term loan 9% 8/17/19 (e) | 6,511 | 5,144 | ||
MPH Acquisition Holdings LLC Tranche B, term loan 4% 3/31/21 (e) | 63,626 | 63,308 | ||
National Mentor Holdings, Inc. Tranche B, term loan 4.75% 1/31/21 (e) | 19,940 | 19,940 | ||
Quintiles Transnational Corp. Tranche B 3LN, term loan 3.75% 6/8/18 (e) | 25,000 | 24,906 | ||
Rural/Metro Corp. Tranche B, term loan 9% 6/30/18 (e) | 5,093 | 4,810 | ||
Salix Pharmaceuticals Ltd. Tranche B, term loan 4.25% 1/2/20 (e) | 29,205 | 29,351 | ||
Sheridan Healthcare, Inc. Tranche 1LN, term loan 4.5% 6/29/18 (e) | 6,883 | 6,874 | ||
Sheridan Holdings, Inc. Trache 2LN, term loan 8.25% 12/18/21 (e) | 16,185 | 16,348 | ||
Skilled Healthcare Group, Inc. term loan 6.75% 4/9/16 (e) | 16,382 | 16,300 | ||
Team Health, Inc. Tranche B, term loan 3.75% 6/29/18 (e) | 6,808 | 6,808 | ||
U.S. Renal Care, Inc.: | ||||
Tranche 2LN, term loan 8.5% 1/3/20 (e) | 5,545 | 5,587 | ||
Tranche B 2LN, term loan 4.25% 7/3/19 (e) | 30,064 | 30,026 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Healthcare - continued | ||||
Universal Health Services, Inc. Tranche A, term loan 1.7321% 11/15/15 (e) | $ 10,393 | $ 10,367 | ||
Valeant Pharmaceuticals International: | ||||
Tranche BC 2LN, term loan 3.75% 12/11/19 (e) | 30,535 | 30,535 | ||
Tranche BD 2LN, term loan 3.75% 2/13/19 (e) | 51,511 | 51,447 | ||
| 1,900,096 | |||
Homebuilders/Real Estate - 0.7% | ||||
CBRE Group, Inc. Tranche B, term loan 2.9018% 3/28/21 (e) | 20,006 | 19,906 | ||
RE/MAX LLC Tranche B, term loan 4% 7/31/20 (e) | 6,502 | 6,502 | ||
Realogy Corp. Credit-Linked Deposit 4.4463% 10/10/16 (e) | 3,324 | 3,316 | ||
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 (e) | 81,182 | 80,776 | ||
| 110,500 | |||
Hotels - 3.3% | ||||
Four Seasons Holdings, Inc.: | ||||
Tranche 2LN, term loan 6.25% 12/27/20 (e) | 15,420 | 15,613 | ||
Tranche B 1LN, term loan 3.5% 6/27/20 (e) | 51,140 | 50,756 | ||
Hilton Worldwide Finance, LLC Tranche B, term loan 3.5% 10/25/20 (e) | 297,779 | 296,662 | ||
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (e) | 134,990 | 134,315 | ||
Playa Resorts Holding BV Tranche B, term loan 4% 8/9/19 (e) | 40,309 | 40,410 | ||
| 537,756 | |||
Insurance - 0.2% | ||||
CNO Financial Group, Inc. Tranche B 2LN, term loan 3.75% 9/28/18 (e) | 16,861 | 16,882 | ||
HUB International Ltd. Tranche B 1LN, term loan 4.25% 10/2/20 (e) | 17,500 | 17,456 | ||
| 34,338 | |||
Leisure - 0.7% | ||||
ClubCorp Club Operations, Inc. Tranche B, term loan 4% 7/24/20 (e) | 23,912 | 23,792 | ||
Planet Fitness Holdings, LLC. Tranche B, term loan 4.75% 3/31/21 (e) | 19,750 | 19,701 | ||
SeaWorld Parks & Entertainment, Inc. Tranche B 2LN, term loan 3% 5/14/20 (e) | 46,707 | 45,717 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Leisure - continued | ||||
Seminole Hard Rock Entertainment, Inc. Tranche B, term loan 3.5% 5/14/20 (e) | $ 9,612 | $ 9,540 | ||
Six Flags, Inc. Tranche B, term loan 3.5011% 12/20/18 (e) | 14,707 | 14,652 | ||
| 113,402 | |||
Metals/Mining - 4.2% | ||||
Alpha Natural Resources, Inc. Tranche B, term loan 3.5% 5/22/20 (e) | 22,600 | 21,781 | ||
Ameriforge Group, Inc.: | ||||
Tranche B 1LN, term loan 5% 1/25/20 (e) | 12,569 | 12,632 | ||
Tranche B 2LN, term loan 8.75% 1/25/21 (e) | 3,000 | 3,060 | ||
Doncasters Group, LLC Tranche B 1LN, term loan 4.5% 4/9/20 (e) | 28,500 | 28,429 | ||
Fairmount Minerals Ltd. Tranche B 2LN, term loan 4.5% 9/5/19 (e) | 21,604 | 21,658 | ||
Fortescue Metals Group Ltd. Tranche B, term loan 4.25% 6/30/19 (e) | 279,483 | 277,736 | ||
Murray Energy Corp. Tranche B 1LN, term loan 5.25% 12/5/19 (e) | 51,810 | 52,328 | ||
Novelis, Inc. Tranche B, term loan 3.75% 3/10/17 (e) | 50,072 | 50,012 | ||
Oxbow Carbon LLC: | ||||
Tranche 2LN, term loan 8% 1/19/20 (e) | 20,000 | 20,300 | ||
Tranche B 1LN, term loan 4.25% 7/19/19 (e) | 12,359 | 12,359 | ||
Peabody Energy Corp. Tranche B, term loan 4.25% 9/24/20 (e) | 69,650 | 69,650 | ||
U.S. Silica Co. Tranche B, term loan 4% 7/23/20 (e) | 24,277 | 24,277 | ||
Walter Energy, Inc. Tranche B, term loan 7.25% 4/1/18 (e) | 96,873 | 92,998 | ||
| 687,220 | |||
Paper - 0.0% | ||||
Bear Island Paper Co. LLC Tranche B 2LN, term loan 13% 9/13/17 | 232 | 185 | ||
Publishing/Printing - 2.0% | ||||
Cengage Learning Acquisitions, Inc. Tranche 1LN, term loan 7% 3/31/20 (e) | 50,410 | 51,166 | ||
Cenveo Corp. Tranche B, term loan 6.25% 2/13/17 (e) | 8,529 | 8,507 | ||
Dex Media East LLC term loan 6% 12/31/16 (e) | 5,757 | 4,059 | ||
Dex Media West LLC/Dex Media West Finance Co. term loan 8% 12/31/16 (e) | 1,312 | 1,056 | ||
Getty Images, Inc. Tranche B, term loan 4.75% 10/18/19 (e) | 88,956 | 85,064 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Publishing/Printing - continued | ||||
Harland Clarke Holdings Corp. Tranche B 4LN, term loan 6% 8/4/19 (e) | $ 17,584 | $ 17,628 | ||
Houghton Mifflin Harcourt Publishing, Inc. Tranche B, term loan 4.25% 5/22/18 (e) | 19,860 | 19,885 | ||
McGraw-Hill Global Education Holdings, LLC Tranche B, term loan 5.75% 3/22/19 (e) | 16,096 | 16,207 | ||
Newsday LLC Tranche A, term loan 3.6503% 10/12/16 (e) | 11,077 | 11,082 | ||
Springer Science+Business Media Deutschland GmbH Tranche B 2LN, term loan 5% 8/14/20 (e) | 109,900 | 110,038 | ||
| 324,692 | |||
Restaurants - 0.6% | ||||
Burger King Corp. Tranche B, term loan 3.75% 9/28/19 (e) | 23,191 | 23,191 | ||
Dunkin Brands, Inc. Tranche B 4LN, term loan 3.25% 2/7/21 (e) | 55,000 | 54,519 | ||
Focus Brands, Inc. Trancher B 1LN, term loan 4.2525% 2/21/18 (e) | 4,781 | 4,781 | ||
Landry's Restaurants, Inc. Tranche B, term loan 4% 4/24/18 (e) | 9,371 | 9,364 | ||
NPC International, Inc. Tranche B, term loan 4% 12/28/18 (e) | 4,955 | 4,949 | ||
| 96,804 | |||
Services - 3.6% | ||||
ARAMARK Corp.: | ||||
Credit-Linked Deposit 3.7306% 7/26/16 (e) | 3,579 | 3,552 | ||
Tranche F, term loan 3.25% 2/24/21 (e) | 75,000 | 74,063 | ||
3.7306% 7/26/16 (e) | 4,666 | 4,654 | ||
Avis Budget Group, Inc. Tranche B, term loan 3% 3/15/19 (e) | 14,850 | 14,794 | ||
Bright Horizons Family Solutions, Inc. Tranche B, term loan 4% 1/30/20 (e) | 23,325 | 23,296 | ||
Coinmach Service Corp. Tranche B, term loan 4.25% 11/14/19 (e) | 51,002 | 50,938 | ||
EFS Cogen Holdings I LLC Tranche B, term loan 3.75% 12/17/20 (e) | 19,687 | 19,736 | ||
Filtration Group Corp.: | ||||
Tranche 2LN, term loan 8.25% 11/21/21 (e) | 5,500 | 5,589 | ||
Tranche B 1LN, term loan 4.5% 11/21/20 (e) | 7,875 | 7,905 | ||
Hertz Corp.: | ||||
Tranche B 2LN, term loan 3% 3/11/18 (e) | 62,671 | 62,201 | ||
Tranche B, term loan 3.75% 3/11/18 (e) | 22,632 | 22,632 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Services - continued | ||||
Interactive Data Corp. Tranche B 2LN, term loan 3.75% 2/11/18 (e) | $ 32,496 | $ 32,577 | ||
Laureate Education, Inc. Tranche B, term loan 5% 6/16/18 (e) | 97,276 | 96,060 | ||
Lineage Logistics Holdings, LLC. Tranche B, term loan 4.5% 4/7/21 (e) | 53,000 | 52,205 | ||
Nord Anglia Education Tranche B, term loan 4.5% 3/21/21 (e) | 23,000 | 22,971 | ||
Redtop Acquisitions Ltd.: | ||||
Tranche 2LN, term loan 8.25% 6/3/21 (e) | 4,988 | 5,137 | ||
Tranche B 1LN, term loan 4.5% 12/3/20 (e) | 11,007 | 11,049 | ||
ServiceMaster Co.: | ||||
term loan 4.25% 1/31/17 (e) | 55,350 | 55,280 | ||
Tranche B2, term loan 4.41% 1/31/17 (e) | 21,610 | 21,583 | ||
The Geo Group, Inc. Tranche B, term loan 3.25% 4/3/20 (e) | 5,940 | 5,933 | ||
| 592,155 | |||
Shipping - 0.7% | ||||
CEVA Group PLC: | ||||
Tranche B, term loan 6.5% 3/19/21 (e) | 24,066 | 23,705 | ||
Tranche C, term loan 6.5% 3/19/21 (e) | 8,944 | 8,809 | ||
Harvey Gulf International Tranche B, term loan 5.5% 6/18/20 (e) | 33,353 | 32,769 | ||
Swift Transportation Co. LLC Tranche B 2LN, term loan 4% 12/21/17 (e) | 17,561 | 17,605 | ||
YRC Worldwide, Inc. Tranche B, term loan 8% 2/13/19 (e) | 27,431 | 27,637 | ||
| 110,525 | |||
Super Retail - 3.2% | ||||
Academy Ltd. Tranche B, term loan 4.5% 8/3/18 (e) | 27,117 | 27,117 | ||
Bass Pro Group LLC Tranche B, term loan 3.75% 11/20/19 (e) | 24,285 | 24,225 | ||
BJ's Wholesale Club, Inc.: | ||||
Tranche 2LN, term loan 8.5% 3/31/20 (e) | 20,110 | 20,638 | ||
Tranche B 1LN, term loan 4.5% 9/26/19 (e) | 62,808 | 62,808 | ||
General Nutrition Centers, Inc. Tranche B, term loan 3.25% 3/4/19 (e) | 57,955 | 57,448 | ||
J. Crew Group, Inc. Tranche B LN, term loan 4% 3/5/21 (e) | 45,160 | 44,880 | ||
JC Penney Corp., Inc. Tranche B, term loan 6% 5/22/18 (e) | 83,047 | 82,216 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Super Retail - continued | ||||
PETCO Animal Supplies, Inc. term loan 4% 11/24/17 (e) | $ 40,357 | $ 40,357 | ||
Pilot Travel Centers LLC: | ||||
Tranche B 2LN, term loan 4.25% 8/7/19 (e) | 19,069 | 19,189 | ||
Tranche B, term loan 3.75% 3/30/18 (e) | 1,909 | 1,916 | ||
Sears Holdings Corp. Tranche ABL, term loan 5.5% 6/30/18 (e) | 128,254 | 129,536 | ||
Serta Simmons Holdings, LLC Tranche B, term loan 4.25% 10/1/19 (e) | 12,605 | 12,589 | ||
Sports Authority, Inc. Tranche B, term loan 7.5% 11/16/17 (e) | 7,416 | 7,398 | ||
| 530,317 | |||
Technology - 10.5% | ||||
Activision Blizzard, Inc. Tranche B, term loan 3.25% 10/11/20 (e) | 132,210 | 132,210 | ||
Ancestry.com, Inc.: | ||||
Tranche B 2LN, term loan 4% 5/15/18 (e) | 9,790 | 9,790 | ||
Tranche B, term loan 4.5% 12/28/18 (e) | 32,415 | 32,496 | ||
Applied Systems, Inc.: | ||||
Tranche B 1LN, term loan 4.25% 1/23/21 (e) | 14,254 | 14,236 | ||
Tranche B 2LN, term loan 7.5% 1/23/22 (e) | 3,630 | 3,675 | ||
Avago Technologies, Inc. Tranche B, term loan 4/16/21 (g) | 63,785 | 64,104 | ||
BMC Software Finance, Inc. Tranche B, term loan: | ||||
5% 9/10/20 (e) | 32,050 | 31,849 | ||
5% 9/10/20 (e) | 188,981 | 188,036 | ||
Ceridian Corp. Tranche B, term loan 4.4018% 5/9/17 (e) | 24,546 | 24,546 | ||
CompuCom Systems, Inc. Tranche B, term loan 4.25% 5/9/20 (e) | 36,544 | 36,453 | ||
Computer Discount Warehouse (CDW) LLC, Tranche B, term loan 3.25% 4/29/20 (e) | 57,207 | 56,563 | ||
Dealer Computer Services, Inc. Tranche BA 2LN, term loan 2.1503% 4/21/16 (e) | 13,808 | 13,877 | ||
Dell International LLC Tranche B, term loan 4.5% 4/29/20 (e) | 200,993 | 200,751 | ||
Fibertech Networks, LLC Tranche B 1LN, term loan 4% 12/18/19 (e) | 18,010 | 17,987 | ||
First Data Corp.: | ||||
term loan: | ||||
3.6523% 3/24/17 (e) | 118,529 | 117,937 | ||
4.1523% 3/24/18 (e) | 99,079 | 98,584 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Technology - continued | ||||
First Data Corp.: - continued | ||||
Tranche B, term loan 4.1523% 9/24/18 (e) | $ 53,162 | $ 52,896 | ||
Freescale Semiconductor, Inc. Tranche B 4LN, term loan 4.25% 3/1/20 (e) | 76,369 | 76,273 | ||
Generac Power Systems, Inc. Tranche B, term loan 3.25% 5/31/20 (e) | 67,872 | 67,363 | ||
Genesys Telecommunications Laboratories, Inc. Tranche B, term loan 4.5% 11/13/20 (e) | 5,057 | 5,070 | ||
Genpact Ltd. Tranche B, term loan 3.5% 8/30/19 (e) | 13,826 | 13,791 | ||
Go Daddy Operating Co., LLC Tranche B 3LN, term loan 4% 12/17/18 (e) | 15,890 | 15,830 | ||
GXS Group, Inc. Tranche B, term loan 3.25% 1/16/21 (e) | 16,958 | 16,915 | ||
Infor U.S., Inc.: | ||||
Tranche B 3LN, term loan 3.75% 6/3/20 (e) | 24,675 | 24,490 | ||
Tranche B 5LN, term loan 3.75% 6/3/20 (e) | 58,853 | 58,488 | ||
Information Resources, Inc. Tranche B, term loan 4.75% 9/30/20 (e) | 19,900 | 19,926 | ||
ION Trading Technologies Ltd.: | ||||
Tranche 1LN, term loan 4.5% 5/22/20 (e) | 39,881 | 39,682 | ||
Tranche 2LN, term loan 8.25% 5/22/21 (e) | 13,454 | 13,487 | ||
Kronos, Inc.: | ||||
Tranche 2LN, term loan 9.75% 4/30/20 (e) | 29,845 | 30,743 | ||
Tranche B 1LN, term loan 4.5% 10/30/19 (e) | 41,647 | 41,491 | ||
Nuance Communications, Inc. Tranche C, term loan 2.91% 8/7/19 (e) | 28,604 | 28,103 | ||
Renaissance Learning, Inc.: | ||||
Tranche 1LN, term loan 4.5% 4/9/21 (e) | 24,500 | 24,378 | ||
Tranche 2LN, term loan 8% 4/9/22 (e) | 11,500 | 11,443 | ||
Rovi Corp. Tranche A, term loan 2.66% 2/7/16 (e) | 3,006 | 2,991 | ||
Sophia L.P. Tranche B 1LN, term loan 4% 7/19/18 (e) | 7,478 | 7,525 | ||
SunGard Data Systems, Inc.: | ||||
Tranche C, term loan 3.9025% 2/28/17 (e) | 32,706 | 32,761 | ||
Tranche E, term loan 4% 3/8/20 (e) | 54,917 | 55,054 | ||
Syniverse Holdings, Inc. Tranche B, term loan: | ||||
4% 4/23/19 (e) | 9,598 | 9,574 | ||
4% 4/23/19 (e) | 19,390 | 19,342 | ||
| 1,710,710 | |||
Telecommunications - 5.0% | ||||
Altice Financing SA Tranche B, term loan 5.5% 6/24/19 (e) | 160,664 | 162,873 | ||
Bank Loan Obligations (f) - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Telecommunications - continued | ||||
Consolidated Communications, Inc. Tranche B, term loan 4.25% 12/23/20 (e) | $ 14,484 | $ 14,484 | ||
Crown Castle Operating Co. Tranche B 2LN, term loan 3.25% 1/31/21 (e) | 104,997 | 104,997 | ||
Digicel International Finance Ltd. Tranche D 1LN, term loan 3.75% 3/31/17 (e) | 9,000 | 8,955 | ||
DigitalGlobe, Inc. Tranche B, term loan 3.75% 1/31/20 (e) | 14,464 | 14,482 | ||
FairPoint Communications, Inc. Tranche B, term loan 7.5% 2/14/19 (e) | 18,322 | 18,872 | ||
Genesys Telecom Holdings U.S., Inc. Tranche B, term loan 4% 2/8/20 (e) | 24,812 | 24,595 | ||
Integra Telecom Holdings, Inc. Tranche B, term loan 5.25% 2/22/19 (e) | 12,870 | 12,902 | ||
Intelsat Jackson Holdings SA Tranche B 2LN, term loan 3.75% 6/30/19 (e) | 132,070 | 132,242 | ||
Level 3 Financing, Inc.: | ||||
Tranche B 3LN, term loan 4% 8/1/19 (e) | 13,330 | 13,363 | ||
Tranche B 4LN, term loan 4% 1/15/20 (e) | 85,500 | 85,714 | ||
LTS Buyer LLC: | ||||
Tranche 2LN, term loan 8% 4/11/21 (e) | 3,868 | 3,897 | ||
Tranche B 1LN, term loan 4% 4/11/20 (e) | 33,416 | 33,249 | ||
SBA Senior Finance II, LLC term loan 3.25% 3/24/21 (e) | 35,000 | 34,825 | ||
Securus Technologies Holdings, Inc.: | ||||
Tranche 2LN, term loan 9% 4/30/21 (e) | 4,635 | 4,670 | ||
Tranche B 1LN, term loan 4.75% 4/30/20 (e) | 40,164 | 40,014 | ||
Telesat Holding, Inc. Tranche B, term loan 3.5% 3/28/19 (e) | 69,300 | 69,127 | ||
Windstream Corp. Tranche B 4LN, term loan 3.5% 1/23/20 (e) | 34,563 | 34,303 | ||
| 813,564 | |||
Textiles & Apparel - 0.3% | ||||
Party City Holdings, Inc. Tranche B LN, term loan 4% 7/27/19 (e) | 45,192 | 45,022 | ||
TOTAL BANK LOAN OBLIGATIONS (Cost $14,280,619) |
| |||
Nonconvertible Bonds - 6.9% | ||||
| Principal Amount (000s) | Value (000s) | ||
Air Transportation - 0.1% | ||||
Continental Airlines, Inc.: | ||||
6.125% 4/29/18 (c) | $ 3,000 | $ 3,195 | ||
9.25% 5/10/17 | 1,829 | 2,067 | ||
| 5,262 | |||
Automotive - 0.3% | ||||
General Motors Acceptance Corp. 2.4361% 12/1/14 (e) | 40,000 | 40,152 | ||
Banks & Thrifts - 1.0% | ||||
Ally Financial, Inc.: | ||||
2.9079% 7/18/16 (e) | 75,000 | 76,830 | ||
3.125% 1/15/16 | 4,000 | 4,080 | ||
4.625% 6/26/15 | 4,000 | 4,151 | ||
Bank of America Corp. 1.0536% 3/22/16 (e) | 5,000 | 5,033 | ||
GMAC LLC 2.4361% 12/1/14 (e) | 70,187 | 70,592 | ||
| 160,686 | |||
Broadcasting - 0.2% | ||||
AMC Networks, Inc. 4.75% 12/15/22 | 6,600 | 6,584 | ||
Clear Channel Communications, Inc. 9% 12/15/19 | 8,677 | 9,241 | ||
Starz LLC/Starz Finance Corp. 5% 9/15/19 | 9,000 | 9,326 | ||
Univision Communications, Inc. 6.75% 9/15/22 (c) | 5,368 | 5,905 | ||
| 31,056 | |||
Building Materials - 0.1% | ||||
CEMEX S.A.B. de CV 4.9765% 10/15/18 (c)(e) | 10,000 | 10,525 | ||
HD Supply, Inc. 7.5% 7/15/20 | 10,000 | 10,825 | ||
| 21,350 | |||
Cable TV - 0.5% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp.: | ||||
5.125% 2/15/23 | 17,065 | 16,660 | ||
5.25% 3/15/21 | 13,070 | 13,315 | ||
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (c) | 10,815 | 11,329 | ||
Lynx I Corp. 5.375% 4/15/21 (c) | 5,000 | 5,125 | ||
Numericable Group SA 4.875% 5/15/19 (c)(d) | 27,120 | 27,391 | ||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 5.5% 1/15/23 (c) | 7,000 | 7,070 | ||
Virgin Media Finance PLC 4.875% 2/15/22 | 2,000 | 1,815 | ||
| 82,705 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Capital Goods - 0.0% | ||||
Shale-Inland Holdings LLC/Shale-Inland Finance Corp. 8.75% 11/15/19 (c) | $ 3,000 | $ 3,090 | ||
Chemicals - 0.0% | ||||
Nufarm Australia Ltd. 6.375% 10/15/19 (c) | 5,000 | 5,163 | ||
Containers - 0.5% | ||||
Ardagh Packaging Finance PLC 7.375% 10/15/17 (c) | 5,439 | 5,765 | ||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc. 7.375% 10/15/17 (c) | 10,736 | 11,367 | ||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | ||||
5.75% 10/15/20 | 58,325 | 60,658 | ||
7.125% 4/15/19 | 5,000 | 5,275 | ||
| 83,065 | |||
Diversified Financial Services - 0.7% | ||||
CIT Group, Inc.: | ||||
4.75% 2/15/15 (c) | 14,000 | 14,368 | ||
5% 5/15/17 | 7,000 | 7,481 | ||
Citigroup, Inc. 1.1888% 7/25/16 (e) | 10,000 | 10,107 | ||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
3.5% 3/15/17 (c) | 18,720 | 18,860 | ||
4.875% 3/15/19 (c) | 15,000 | 15,206 | ||
International Lease Finance Corp.: | ||||
2.1834% 6/15/16 (e) | 29,485 | 29,780 | ||
3.875% 4/15/18 | 7,000 | 7,105 | ||
4.875% 4/1/15 | 4,000 | 4,125 | ||
6.25% 5/15/19 | 10,000 | 11,038 | ||
| 118,070 | |||
Diversified Media - 0.1% | ||||
Clear Channel Worldwide Holdings, Inc.: | ||||
6.5% 11/15/22 | 5,130 | 5,463 | ||
6.5% 11/15/22 | 13,870 | 14,841 | ||
| 20,304 | |||
Electric Utilities - 0.3% | ||||
Energy Future Intermediate Holding Co. LLC/Energy Future Intermediate Holding Finance, Inc.: | ||||
10% 12/1/20 (c) | 32,605 | 34,521 | ||
12% 3/1/22 (c) | 11,000 | 13,090 | ||
NRG Energy, Inc. 6.625% 3/15/23 | 4,000 | 4,180 | ||
| 51,791 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Energy - 0.4% | ||||
Access Midstream Partners LP/ACMP Finance Corp. 4.875% 5/15/23 | $ 7,000 | $ 7,088 | ||
Atlas Pipeline Partners LP/Atlas Pipeline Finance Corp.: | ||||
5.875% 8/1/23 | 3,000 | 2,963 | ||
6.625% 10/1/20 | 5,645 | 5,984 | ||
Chesapeake Energy Corp. 3.4677% 4/15/19 (e) | 29,720 | 30,017 | ||
Northern Tier Energy LLC/Northern Tier Finance Corp. 7.125% 11/15/20 | 4,000 | 4,290 | ||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 6.375% 8/1/22 | 4,492 | 4,806 | ||
Western Refining, Inc. 6.25% 4/1/21 | 5,305 | 5,517 | ||
| 60,665 | |||
Entertainment/Film - 0.1% | ||||
Cinemark U.S.A., Inc. 5.125% 12/15/22 | 3,185 | 3,185 | ||
Regal Entertainment Group 5.75% 2/1/25 | 3,090 | 3,059 | ||
| 6,244 | |||
Food/Beverage/Tobacco - 0.0% | ||||
ESAL GmbH 6.25% 2/5/23 (c) | 4,000 | 3,820 | ||
Gaming - 0.1% | ||||
MCE Finance Ltd. 5% 2/15/21 (c) | 10,000 | 9,975 | ||
Healthcare - 0.3% | ||||
Community Health Systems, Inc. 5.125% 8/15/18 | 10,755 | 11,306 | ||
DaVita HealthCare Partners, Inc. 5.75% 8/15/22 | 8,235 | 8,719 | ||
HCA Holdings, Inc. 3.75% 3/15/19 | 25,000 | 25,188 | ||
Tenet Healthcare Corp. 4.75% 6/1/20 | 8,680 | 8,723 | ||
| 53,936 | |||
Homebuilders/Real Estate - 0.1% | ||||
CBRE Group, Inc. 5% 3/15/23 | 17,990 | 18,125 | ||
Leisure - 0.0% | ||||
Six Flags Entertainment Corp. 5.25% 1/15/21 (c) | 4,000 | 4,040 | ||
Metals/Mining - 0.1% | ||||
CONSOL Energy, Inc. 8% 4/1/17 | 6,475 | 6,748 | ||
Peabody Energy Corp. 6% 11/15/18 | 5,000 | 5,313 | ||
| 12,061 | |||
Services - 0.1% | ||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 2.9861% 12/1/17 (c)(e) | 14,410 | 14,464 | ||
TransUnion Holding Co., Inc. 9.625% 6/15/18 pay-in-kind (e) | 3,000 | 3,161 | ||
| 17,625 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Technology - 0.4% | ||||
Brocade Communications Systems, Inc. 4.625% 1/15/23 | $ 7,235 | $ 6,928 | ||
First Data Corp. 6.75% 11/1/20 (c) | 39,130 | 41,771 | ||
NXP BV/NXP Funding LLC: | ||||
5.75% 2/15/21 (c) | 14,760 | 15,609 | ||
5.75% 3/15/23 (c) | 5,000 | 5,288 | ||
| 69,596 | |||
Telecommunications - 1.5% | ||||
Altice Financing SA: | ||||
6.5% 1/15/22 (c) | 7,240 | 7,584 | ||
7.875% 12/15/19 (c) | 4,000 | 4,368 | ||
Columbus International, Inc. 7.375% 3/30/21 (c) | 14,535 | 15,189 | ||
DigitalGlobe, Inc. 5.25% 2/1/21 | 3,905 | 3,807 | ||
Intelsat Jackson Holdings SA 6.625% 12/15/22 (Reg. S) | 20,000 | 20,550 | ||
iPCS, Inc. 3.4876% 5/1/14 pay-in-kind (e) | 69,150 | 69,150 | ||
Level 3 Financing, Inc. 3.8459% 1/15/18 (c)(e) | 15,000 | 15,225 | ||
Sprint Capital Corp.: | ||||
6.875% 11/15/28 | 4,000 | 3,950 | ||
6.9% 5/1/19 | 5,000 | 5,488 | ||
Sprint Communications, Inc.: | ||||
6% 11/15/22 | 30,000 | 30,225 | ||
9% 11/15/18 (c) | 3,000 | 3,656 | ||
Telesat Canada/Telesat LLC 6% 5/15/17 (c) | 3,000 | 3,101 | ||
Verizon Communications, Inc.: | ||||
1.7634% 9/15/16 (e) | 20,000 | 20,582 | ||
1.9841% 9/14/18 (e) | 35,000 | 36,954 | ||
| 239,829 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $1,084,851) |
|
Common Stocks - 0.2% | |||
Shares |
| ||
Broadcasting - 0.0% | |||
Cumulus Media, Inc. Class A (a) | 229,315 | 1,470 | |
ION Media Networks, Inc. (a) | 2,842 | 1,919 | |
| 3,389 | ||
Chemicals - 0.2% | |||
LyondellBasell Industries NV Class A | 245,943 | 22,750 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
Diversified Financial Services - 0.0% | |||
Newhall Holding Co. LLC Class A (a) | 289,870 | $ 638 | |
Electric Utilities - 0.0% | |||
Calpine Corp. (a) | 20,715 | 475 | |
Entertainment/Film - 0.0% | |||
MGM Holdings, Inc. (a) | 71,585 | 5,288 | |
Hotels - 0.0% | |||
Tropicana Las Vegas Hotel & Casino, Inc. Class A (a) | 48,650 | 1,771 | |
Paper - 0.0% | |||
White Birch Cayman Holdings Ltd. (a) | 12,570 | 0 | |
Publishing/Printing - 0.0% | |||
Houghton Mifflin Harcourt Co. warrants 6/22/19 (a)(i) | 13,699 | 21 | |
Telecommunications - 0.0% | |||
FairPoint Communications, Inc. (a) | 34,287 | 468 | |
TOTAL COMMON STOCKS (Cost $18,492) |
| ||
Other - 0.0% | |||
|
|
|
|
Other - 0.0% | |||
Idearc, Inc. Claim (a) | 1,888,944 |
| |
Money Market Funds - 6.8% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 1,112,943,074 |
| |
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $16,496,905) | 16,592,087 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (274,085) | ||
NET ASSETS - 100% | $ 16,318,002 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(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 $336,060,000 or 2.1% of net assets. |
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(f) 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. |
(g) The coupon rate will be determined upon settlement of the loan after period end. |
(h) Position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $3,960,000 and $4,019,000, respectively. The coupon rate will be determined at time of settlement. |
(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $21,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Houghton Mifflin Harcourt Co. warrants 6/22/19 | 6/22/12 | $ 26 |
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 | $ 726 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 10,469 | $ 6,758 | $ - | $ 3,711 |
Financials | 638 | - | - | 638 |
Materials | 22,750 | 22,750 | - | - |
Telecommunication Services | 468 | 468 | - | - |
Utilities | 475 | 475 | - | - |
Bank Loan Obligations | 14,325,734 | - | 14,220,249 | 105,485 |
Corporate Bonds | 1,118,610 | - | 1,118,610 | - |
Other | - | - | - | - |
Money Market Funds | 1,112,943 | 1,112,943 | - | - |
Total Investments in Securities: | $ 16,592,087 | $ 1,143,394 | $ 15,338,859 | $ 109,834 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 89.5% |
Luxembourg | 2.6% |
Australia | 2.2% |
Netherlands | 1.8% |
Germany | 1.0% |
Others (Individually Less Than 1%) | 2.9% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2014 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $15,383,962) | $ 15,479,144 |
|
Fidelity Central Funds (cost $1,112,943) | 1,112,943 |
|
Total Investments (cost $16,496,905) |
| $ 16,592,087 |
Cash |
| 124,084 |
Receivable for investments sold | 140,061 | |
Receivable for fund shares sold | 16,367 | |
Dividends receivable | 172 | |
Interest receivable | 60,723 | |
Distributions receivable from Fidelity Central Funds | 116 | |
Prepaid expenses | 13 | |
Total assets | 16,933,623 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 517,938 | |
Delayed delivery | 27,120 | |
Payable for fund shares redeemed | 48,863 | |
Distributions payable | 10,637 | |
Accrued management fee | 7,692 | |
Distribution and service plan fees payable | 1,200 | |
Other affiliated payables | 1,919 | |
Other payables and accrued expenses | 252 | |
Total liabilities | 615,621 | |
|
|
|
Net Assets | $ 16,318,002 | |
Net Assets consist of: |
| |
Paid in capital | $ 16,146,128 | |
Undistributed net investment income | 131,240 | |
Accumulated undistributed net realized gain (loss) on investments | (54,548) | |
Net unrealized appreciation (depreciation) on investments | 95,182 | |
Net Assets | $ 16,318,002 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2014 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 9.96 | |
|
|
|
Maximum offering price per share (100/97.25 of $9.96) | $ 10.24 | |
Class T: | $ 9.95 | |
|
|
|
Maximum offering price per share (100/97.25 of $9.95) | $ 10.23 | |
Class B: | $ 9.95 | |
|
|
|
Class C: | $ 9.96 | |
|
|
|
Fidelity Floating Rate High Income Fund: | $ 9.95 | |
|
|
|
Institutional Class: | $ 9.94 |
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.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended April 30, 2014 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 1,729 |
Interest |
| 324,203 |
Income from Fidelity Central Funds |
| 726 |
Total income |
| 326,658 |
|
|
|
Expenses | ||
Management fee | $ 45,515 | |
Transfer agent fees | 10,444 | |
Distribution and service plan fees | 7,315 | |
Accounting fees and expenses | 913 | |
Custodian fees and expenses | 92 | |
Independent trustees' compensation | 31 | |
Registration fees | 405 | |
Audit | 88 | |
Legal | 32 | |
Miscellaneous | 55 | |
Total expenses before reductions | 64,890 | |
Expense reductions | (31) | 64,859 |
Net investment income (loss) | 261,799 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 16,624 |
Change in net unrealized appreciation (depreciation) on investment securities |
| (20,313) |
Net gain (loss) | (3,689) | |
Net increase (decrease) in net assets resulting from operations | $ 258,110 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 261,799 | $ 410,895 |
Net realized gain (loss) | 16,624 | 72,218 |
Change in net unrealized appreciation (depreciation) | (20,313) | 9,078 |
Net increase (decrease) in net assets resulting | 258,110 | 492,191 |
Distributions to shareholders from net investment income | (252,800) | (375,589) |
Distributions to shareholders from net realized gain | (57,139) | (52,959) |
Total distributions | (309,939) | (428,548) |
Share transactions - net increase (decrease) | 904,590 | 4,793,436 |
Redemption fees | 356 | 916 |
Total increase (decrease) in net assets | 853,117 | 4,857,995 |
|
|
|
Net Assets | ||
Beginning of period | 15,464,885 | 10,606,890 |
End of period (including undistributed net investment income of $131,240 and undistributed net investment income of $122,241, respectively) | $ 16,318,002 | $ 15,464,885 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.79 | $ 9.31 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .153 | .310 | .340 | .317 | .391 | .354 |
Net realized and unrealized gain (loss) | - I | .070 | .195 | (.080) | .425 | 1.232 |
Total from investment operations | .153 | .380 | .535 | .237 | .816 | 1.586 |
Distributions from net investment income | (.147) | (.282) | (.325) | (.298) | (.287) | (.278) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.183) | (.331) | (.325) | (.298) | (.337) | (.278) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.96 | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.79 | $ 9.31 |
Total Return B, C, D | 1.54% | 3.89% | 5.60% | 2.46% | 8.96% | 20.31% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .99% A | .99% | .99% | 1.00% | 1.03% | 1.05% |
Expenses net of fee waivers, if any | .99% A | .99% | .99% | 1.00% | 1.03% | 1.05% |
Expenses net of all reductions | .99% A | .99% | .99% | 1.00% | 1.03% | 1.04% |
Net investment income (loss) | 3.08% A | 3.11% | 3.47% | 3.25% | 4.11% | 4.09% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,628 | $ 1,681 | $ 1,305 | $ 1,587 | $ 1,064 | $ 518 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .148 | .299 | .330 | .312 | .391 | .349 |
Net realized and unrealized gain (loss) | - I | .071 | .195 | (.070) | .416 | 1.228 |
Total from investment operations | .148 | .370 | .525 | .242 | .807 | 1.577 |
Distributions from net investment income | (.142) | (.272) | (.315) | (.293) | (.288) | (.279) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.178) | (.321) | (.315) | (.293) | (.338) | (.279) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.95 | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 |
Total Return B, C, D | 1.50% | 3.79% | 5.50% | 2.51% | 8.87% | 20.20% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.08% A | 1.09% | 1.09% | 1.05% | 1.02% | 1.04% |
Expenses net of fee waivers, if any | 1.08% A | 1.09% | 1.09% | 1.05% | 1.02% | 1.04% |
Expenses net of all reductions | 1.08% A | 1.09% | 1.09% | 1.05% | 1.02% | 1.04% |
Net investment income (loss) | 2.99% A | 3.01% | 3.37% | 3.19% | 4.12% | 4.10% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 269 | $ 272 | $ 241 | $ 271 | $ 242 | $ 143 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 | $ 7.99 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .126 | .256 | .288 | .266 | .341 | .305 |
Net realized and unrealized gain (loss) | - I | .071 | .195 | (.070) | .416 | 1.238 |
Total from investment operations | .126 | .327 | .483 | .196 | .757 | 1.543 |
Distributions from net investment income | (.120) | (.229) | (.273) | (.247) | (.238) | (.235) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.156) | (.278) | (.273) | (.247) | (.288) | (.235) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.95 | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 |
Total Return B, C, D | 1.27% | 3.35% | 5.05% | 2.03% | 8.30% | 19.74% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.52% A | 1.52% | 1.52% | 1.52% | 1.55% | 1.56% |
Expenses net of fee waivers, if any | 1.52% A | 1.52% | 1.52% | 1.52% | 1.55% | 1.55% |
Expenses net of all reductions | 1.52% A | 1.52% | 1.52% | 1.52% | 1.55% | 1.55% |
Net investment income (loss) | 2.55% A | 2.58% | 2.94% | 2.72% | 3.59% | 3.59% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 20 | $ 23 | $ 24 | $ 32 | $ 43 | $ 44 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.78 | $ 9.31 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .115 | .235 | .267 | .244 | .321 | .288 |
Net realized and unrealized gain (loss) | - I | .070 | .195 | (.070) | .415 | 1.235 |
Total from investment operations | .115 | .305 | .462 | .174 | .736 | 1.523 |
Distributions from net investment income | (.109) | (.207) | (.252) | (.225) | (.217) | (.215) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.145) | (.256) | (.252) | (.225) | (.267) | (.215) |
Redemption fees added to paid in capital E | - I | .001 | - I | .001 | .001 | .002 |
Net asset value, end of period | $ 9.96 | $ 9.99 | $ 9.94 | $ 9.73 | $ 9.78 | $ 9.31 |
Total Return B, C, D | 1.16% | 3.11% | 4.81% | 1.80% | 8.05% | 19.43% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.74% A | 1.74% | 1.74% | 1.74% | 1.76% | 1.78% |
Expenses net of fee waivers, if any | 1.74% A | 1.74% | 1.74% | 1.74% | 1.76% | 1.78% |
Expenses net of all reductions | 1.74% A | 1.74% | 1.74% | 1.74% | 1.76% | 1.78% |
Net investment income (loss) | 2.32% A | 2.35% | 2.72% | 2.50% | 3.38% | 3.35% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 942 | $ 960 | $ 806 | $ 852 | $ 622 | $ 335 |
Portfolio turnover rate G | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Floating Rate High Income Fund
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 | $ 8.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .167 | .337 | .368 | .345 | .418 | .377 |
Net realized and unrealized gain (loss) | - H | .071 | .195 | (.070) | .417 | 1.225 |
Total from investment operations | .167 | .408 | .563 | .275 | .835 | 1.602 |
Distributions from net investment income | (.161) | (.310) | (.353) | (.326) | (.316) | (.304) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.197) | (.359) | (.353) | (.326) | (.366) | (.304) |
Redemption fees added to paid in capital D | - H | .001 | - H | .001 | .001 | .002 |
Net asset value, end of period | $ 9.95 | $ 9.98 | $ 9.93 | $ 9.72 | $ 9.77 | $ 9.30 |
Total Return B, C | 1.69% | 4.19% | 5.91% | 2.86% | 9.18% | 20.55% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .70% A | .70% | .71% | .71% | .73% | .75% |
Expenses net of fee waivers, if any | .70% A | .70% | .71% | .71% | .73% | .75% |
Expenses net of all reductions | .70% A | .70% | .71% | .71% | .73% | .75% |
Net investment income (loss) | 3.37% A | 3.39% | 3.75% | 3.53% | 4.41% | 4.39% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 9,775 | $ 8,882 | $ 5,720 | $ 5,399 | $ 3,566 | $ 2,354 |
Portfolio turnover rate F | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.97 | $ 9.92 | $ 9.71 | $ 9.77 | $ 9.29 | $ 7.99 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .164 | .332 | .363 | .341 | .415 | .379 |
Net realized and unrealized gain (loss) | - H | .071 | .196 | (.079) | .427 | 1.221 |
Total from investment operations | .164 | .403 | .559 | .262 | .842 | 1.600 |
Distributions from net investment income | (.158) | (.305) | (.349) | (.323) | (.313) | (.302) |
Distributions from net realized gain | (.036) | (.049) | - | - | (.050) | - |
Total distributions | (.194) | (.354) | (.349) | (.323) | (.363) | (.302) |
Redemption fees added to paid in capital D | - H | .001 | - H | .001 | .001 | .002 |
Net asset value, end of period | $ 9.94 | $ 9.97 | $ 9.92 | $ 9.71 | $ 9.77 | $ 9.29 |
Total Return B, C | 1.66% | 4.15% | 5.87% | 2.72% | 9.27% | 20.54% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .75% A | .75% | .75% | .75% | .76% | .77% |
Expenses net of fee waivers, if any | .75% A | .75% | .75% | .75% | .76% | .77% |
Expenses net of all reductions | .75% A | .75% | .75% | .75% | .76% | .77% |
Net investment income (loss) | 3.32% A | 3.34% | 3.71% | 3.50% | 4.38% | 4.36% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,683 | $ 3,646 | $ 2,510 | $ 1,992 | $ 1,138 | $ 469 |
Portfolio turnover rate F | 60% A | 62% | 49% | 54% | 43% | 25% |
A Annualized
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 Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Floating Rate High Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Floating Rate High Income Fund and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
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 and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. 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.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014 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 and may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Interest in the accompanying financial statements.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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.
Dividends 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 dividends 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.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to market discount, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 179,763 |
Gross unrealized depreciation | (52,316) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 127,447 |
|
|
Tax cost | $ 16,464,640 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2017 | $ (12,891) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 60 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Semiannual Report
3. Significant Accounting Policies - continued
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans. The Fund also invests in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities (including principal repayments of bank loan obligations), other than short-term securities, aggregated $5,872,626 and $4,460,329, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .56% 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.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 2,092 | $ 124 |
Class T | -% | .25% | 340 | 4 |
Class B | .55% | .15% | 77 | 61 |
Class C | .75% | .25% | 4,806 | 950 |
|
|
| $ 7,315 | $ 1,139 |
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 3.50% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% or .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 48 |
Class T | 9 |
Class B* | 12 |
Class C* | 55 |
| $ 124 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 1,220 | .15 |
Class T | 322 | .24 |
Class B | 25 | .23 |
Class C | 711 | .15 |
Fidelity Floating Rate High Income Fund | 5,135 | .11 |
Institutional Class | 3,031 | .16 |
| $ 10,444 |
|
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $15 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $26.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $5.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 24,588 | $ 41,401 |
Class T | 3,874 | 7,141 |
Class B | 265 | 529 |
Class C | 10,511 | 18,030 |
Fidelity Floating Rate High Income Fund | 153,718 | 214,851 |
Institutional Class | 59,844 | 93,637 |
Total | $ 252,800 | $ 375,589 |
From net realized gain |
|
|
Class A | $ 6,085 | $ 6,467 |
Class T | 983 | 1,176 |
Class B | 81 | 117 |
Class C | 3,472 | 3,997 |
Fidelity Floating Rate High Income Fund | 33,019 | 28,516 |
Institutional Class | 13,499 | 12,686 |
Total | $ 57,139 | $ 52,959 |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 22,875 | 75,563 | $ 228,535 | $ 753,535 |
Reinvestment of distributions | 2,525 | 3,658 | 25,210 | 36,455 |
Shares redeemed | (30,277) | (42,208) | (302,453) | (421,018) |
Net increase (decrease) | (4,877) | 37,013 | $ (48,708) | $ 368,972 |
Class T |
|
|
|
|
Shares sold | 2,607 | 10,009 | $ 26,018 | $ 99,597 |
Reinvestment of distributions | 439 | 727 | 4,371 | 7,232 |
Shares redeemed | (3,290) | (7,688) | (32,819) | (76,547) |
Net increase (decrease) | (244) | 3,048 | $ (2,430) | $ 30,282 |
Semiannual Report
9. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class B |
|
|
|
|
Shares sold | 160 | 663 | $ 1,596 | $ 6,596 |
Reinvestment of distributions | 28 | 50 | 281 | 495 |
Shares redeemed | (448) | (851) | (4,465) | (8,474) |
Net increase (decrease) | (260) | (138) | $ (2,588) | $ (1,383) |
Class C |
|
|
|
|
Shares sold | 8,291 | 30,392 | $ 82,814 | $ 303,076 |
Reinvestment of distributions | 1,055 | 1,609 | 10,532 | 16,022 |
Shares redeemed | (10,838) | (17,011) | (108,232) | (169,644) |
Net increase (decrease) | (1,492) | 14,990 | $ (14,886) | $ 149,454 |
Fidelity Floating Rate High Income Fund |
|
|
|
|
Shares sold | 207,340 | 483,346 | $ 2,068,584 | $ 4,812,772 |
Reinvestment of distributions | 15,374 | 20,114 | 153,243 | 200,158 |
Shares redeemed | (130,141) | (189,555) | (1,297,625) | (1,887,500) |
Net increase (decrease) | 92,573 | 313,905 | $ 924,202 | $ 3,125,430 |
Institutional Class |
|
|
|
|
Shares sold | 71,292 | 203,411 | $ 710,772 | $ 2,024,367 |
Reinvestment of distributions | 4,045 | 5,909 | 40,291 | 58,759 |
Shares redeemed | (70,435) | (96,688) | (702,063) | (962,445) |
Net increase (decrease) | 4,902 | 112,632 | $ 49,000 | $ 1,120,681 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Floating Rate High Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Floating Rate High Income Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of April 30, 2014, and the related statement of operations for the six months then ended, the statements of changes in net assets for the six months ended April 30, 2014 and for the year ended October 31, 2013, and the financial highlights for the six months ended April 30, 2014 and for each of the five years in the period ended October 31, 2013. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2014, by correspondence with the custodians, agent banks and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Floating Rate High Income Fund as of April 30, 2014, the results of its operations for the six months then ended, the changes in its net assets for the six months ended April 30, 2014 and for the year ended October 31, 2013, and the financial highlights for the six months ended April 30, 2014 and for each of the five years in the period ended October 31, 2013, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
June 18, 2014
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(U.K.) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
FHI-USAN-0614 1.784879.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.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.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.70 | $ 6.46 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.60 | $ 6.26 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,083.10 | $ 7.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.36 | $ 7.50 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,080.90 | $ 10.32 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.88 | $ 9.99 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,080.50 | $ 10.32 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.88 | $ 9.99 |
Institutional Class | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,086.00 | $ 5.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.84 | $ 5.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Sempra Energy | 1.8 | 2.0 |
Edison International | 1.7 | 1.5 |
ITC Holdings Corp. | 1.4 | 1.6 |
NiSource, Inc. | 1.3 | 1.3 |
Berkshire Hathaway, Inc. Class B | 1.1 | 1.0 |
URS Corp. | 1.0 | 1.3 |
Reinsurance Group of America, Inc. | 0.9 | 0.9 |
Broadcom Corp. Class A | 0.9 | 0.7 |
U.S. Bancorp | 0.9 | 1.3 |
Total System Services, Inc. | 0.9 | 0.6 |
| 11.9 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 28.2 | 27.6 |
Information Technology | 11.8 | 11.3 |
Consumer Discretionary | 11.8 | 11.9 |
Utilities | 10.0 | 9.7 |
Industrials | 9.5 | 10.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014* | As of October 31, 2013** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Other Investments 0.2% |
| ![]() | Other Investments 0.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 17.9% |
| ** Foreign investments | 14.9% |
|
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.2% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 11.8% | |||
Auto Components - 1.3% | |||
Allison Transmission Holdings, Inc. | 13,624 | $ 406,540 | |
Tenneco, Inc. (a) | 3,414 | 204,396 | |
Visteon Corp. (a) | 6,171 | 535,705 | |
| 1,146,641 | ||
Diversified Consumer Services - 0.7% | |||
Anhanguera Educacional Participacoes SA | 27,400 | 169,580 | |
H&R Block, Inc. | 7,212 | 204,965 | |
Houghton Mifflin Harcourt Co. | 9,315 | 190,305 | |
| 564,850 | ||
Hotels, Restaurants & Leisure - 0.4% | |||
Bloomin' Brands, Inc. (a) | 10,500 | 223,860 | |
Brinker International, Inc. | 3,220 | 158,231 | |
| 382,091 | ||
Household Durables - 0.8% | |||
Helen of Troy Ltd. (a) | 3,153 | 197,693 | |
KB Home | 28,008 | 462,412 | |
| 660,105 | ||
Internet & Catalog Retail - 0.2% | |||
Liberty Interactive Corp. Series A (a) | 6,648 | 193,191 | |
Leisure Products - 0.2% | |||
Brunswick Corp. | 4,393 | 176,555 | |
Media - 2.2% | |||
CBS Corp. Class B | 6,990 | 403,742 | |
Ipsos SA | 2,835 | 109,892 | |
Liberty Media Corp. Class A (a) | 2,380 | 308,710 | |
Live Nation Entertainment, Inc. (a) | 25,698 | 536,574 | |
Sinclair Broadcast Group, Inc. Class A | 9,244 | 247,092 | |
Twenty-First Century Fox, Inc. Class A | 5,460 | 174,829 | |
UBM PLC | 13,700 | 151,856 | |
| 1,932,695 | ||
Multiline Retail - 1.2% | |||
Dillard's, Inc. Class A | 2,998 | 293,594 | |
Kohl's Corp. | 8,493 | 465,331 | |
Macy's, Inc. | 4,832 | 277,502 | |
| 1,036,427 | ||
Specialty Retail - 4.6% | |||
Abercrombie & Fitch Co. Class A | 6,191 | 227,581 | |
Advance Auto Parts, Inc. | 2,180 | 264,412 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
AutoZone, Inc. (a) | 538 | $ 287,233 | |
Bed Bath & Beyond, Inc. (a) | 2,900 | 180,177 | |
Best Buy Co., Inc. | 17,525 | 454,423 | |
Chico's FAS, Inc. | 26,244 | 416,755 | |
Foot Locker, Inc. | 6,040 | 281,041 | |
Office Depot, Inc. (a) | 50,991 | 208,553 | |
PetSmart, Inc. (d) | 2,900 | 196,272 | |
Rent-A-Center, Inc. | 7,730 | 225,793 | |
Select Comfort Corp. (a) | 23,654 | 435,234 | |
Staples, Inc. | 50,839 | 635,488 | |
The Men's Wearhouse, Inc. | 4,281 | 202,834 | |
| 4,015,796 | ||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Gildan Activewear, Inc. | 3,400 | 173,808 | |
TOTAL CONSUMER DISCRETIONARY | 10,282,159 | ||
CONSUMER STAPLES - 3.7% | |||
Beverages - 0.8% | |||
C&C Group PLC | 31,381 | 186,771 | |
Cott Corp. | 23,333 | 189,466 | |
Molson Coors Brewing Co. Class B | 4,017 | 240,899 | |
Treasury Wine Estates Ltd. | 25,245 | 89,354 | |
| 706,490 | ||
Food Products - 1.9% | |||
Bunge Ltd. | 8,315 | 662,290 | |
Dean Foods Co. | 22,941 | 363,385 | |
Greencore Group PLC | 40,182 | 177,139 | |
Ingredion, Inc. | 3,146 | 221,636 | |
The J.M. Smucker Co. | 2,544 | 245,954 | |
| 1,670,404 | ||
Household Products - 0.2% | |||
Svenska Cellulosa AB (SCA) (B Shares) | 6,125 | 171,536 | |
Personal Products - 0.3% | |||
Coty, Inc. Class A | 17,435 | 279,832 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - continued | |||
Tobacco - 0.5% | |||
Japan Tobacco, Inc. | 4,300 | $ 141,153 | |
Lorillard, Inc. | 4,398 | 261,329 | |
| 402,482 | ||
TOTAL CONSUMER STAPLES | 3,230,744 | ||
ENERGY - 7.7% | |||
Energy Equipment & Services - 2.2% | |||
Cameron International Corp. (a) | 7,989 | 518,965 | |
Halliburton Co. | 10,309 | 650,189 | |
National Oilwell Varco, Inc. | 2,960 | 232,449 | |
Odfjell Drilling A/S | 17,418 | 98,455 | |
Rowan Companies PLC | 15,383 | 475,642 | |
| 1,975,700 | ||
Oil, Gas & Consumable Fuels - 5.5% | |||
Access Midstream Partners LP | 5,861 | 347,850 | |
Anadarko Petroleum Corp. | 2,400 | 237,648 | |
BPZ Energy, Inc. (a)(d) | 78,643 | 212,336 | |
Canadian Natural Resources Ltd. | 5,300 | 215,955 | |
Cloud Peak Energy, Inc. (a) | 1,367 | 26,916 | |
Energen Corp. | 8,020 | 624,838 | |
Imperial Oil Ltd. | 4,100 | 200,203 | |
Marathon Petroleum Corp. | 6,367 | 591,813 | |
Markwest Energy Partners LP | 2,200 | 139,348 | |
Newfield Exploration Co. (a) | 11,030 | 373,366 | |
Noble Energy, Inc. | 5,000 | 358,900 | |
Northern Oil & Gas, Inc. (a) | 9,209 | 142,095 | |
Scorpio Tankers, Inc. | 12,555 | 113,121 | |
Stone Energy Corp. (a) | 5,910 | 289,886 | |
Ultra Petroleum Corp. (a) | 7,200 | 214,560 | |
Whiting Petroleum Corp. (a) | 9,444 | 696,212 | |
| 4,785,047 | ||
TOTAL ENERGY | 6,760,747 | ||
FINANCIALS - 27.4% | |||
Banks - 4.8% | |||
Bank of Ireland (a) | 212,097 | 83,002 | |
Barclays PLC sponsored ADR | 13,236 | 226,468 | |
CIT Group, Inc. | 10,144 | 436,699 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Banks - continued | |||
Citigroup, Inc. | 4,384 | $ 210,037 | |
EFG Eurobank Ergasias SA (a) | 368,200 | 209,437 | |
First Citizen Bancshares, Inc. | 2,537 | 570,546 | |
JPMorgan Chase & Co. | 9,702 | 543,118 | |
M&T Bank Corp. | 2,879 | 351,267 | |
PNC Financial Services Group, Inc. | 4,741 | 398,434 | |
U.S. Bancorp | 19,755 | 805,609 | |
Wells Fargo & Co. | 6,749 | 335,020 | |
| 4,169,637 | ||
Capital Markets - 3.7% | |||
Ameriprise Financial, Inc. | 3,545 | 395,728 | |
Apollo Global Management LLC Class A | 4,218 | 114,434 | |
Ares Capital Corp. | 15,183 | 260,692 | |
Carlyle Group LP | 8,060 | 258,565 | |
E*TRADE Financial Corp. (a) | 15,459 | 347,055 | |
Fortress Investment Group LLC | 27,072 | 193,565 | |
Invesco Ltd. | 18,879 | 664,730 | |
KKR & Co. LP | 16,212 | 368,175 | |
The Blackstone Group LP | 11,396 | 336,524 | |
UBS AG | 13,560 | 283,592 | |
Vontobel Holdings AG | 1,138 | 44,545 | |
| 3,267,605 | ||
Consumer Finance - 2.0% | |||
Capital One Financial Corp. | 8,379 | 619,208 | |
Cash America International, Inc. | 3,804 | 165,664 | |
SLM Corp. | 30,202 | 777,702 | |
Springleaf Holdings, Inc. | 7,002 | 160,906 | |
| 1,723,480 | ||
Diversified Financial Services - 1.5% | |||
Berkshire Hathaway, Inc. Class B (a) | 7,591 | 978,100 | |
The NASDAQ OMX Group, Inc. | 8,830 | 325,827 | |
| 1,303,927 | ||
Insurance - 6.7% | |||
AFLAC, Inc. | 3,968 | 248,873 | |
Allied World Assurance Co. Holdings Ltd. | 2,207 | 237,672 | |
Allstate Corp. | 4,315 | 245,739 | |
AMBAC Financial Group, Inc. (a) | 17,101 | 516,108 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 1,520 | 662,751 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Insurance - continued | |||
Fidelity National Financial, Inc. Class A | 8,400 | $ 270,312 | |
Greenlight Capital Re, Ltd. (a) | 9,790 | 311,616 | |
Intact Financial Corp. | 3,800 | 249,520 | |
Mercury General Corp. | 2,892 | 138,411 | |
Old Republic International Corp. | 20,111 | 333,038 | |
Primerica, Inc. | 3,800 | 174,382 | |
ProAssurance Corp. | 4,343 | 197,259 | |
Progressive Corp. | 5,470 | 132,648 | |
Prudential PLC | 13,839 | 318,147 | |
Reinsurance Group of America, Inc. | 10,764 | 825,706 | |
StanCorp Financial Group, Inc. | 3,668 | 224,115 | |
Third Point Reinsurance Ltd. | 8,008 | 125,245 | |
Torchmark Corp. | 4,499 | 358,570 | |
Validus Holdings Ltd. | 8,346 | 309,386 | |
| 5,879,498 | ||
Real Estate Investment Trusts - 6.8% | |||
Alexandria Real Estate Equities, Inc. | 4,370 | 322,593 | |
American Capital Agency Corp. | 22,078 | 501,391 | |
American Tower Corp. | 7,822 | 653,293 | |
Boston Properties, Inc. | 429 | 50,253 | |
Corporate Office Properties Trust (SBI) | 6,111 | 163,469 | |
Digital Realty Trust, Inc. (d) | 3,858 | 206,017 | |
Equity Lifestyle Properties, Inc. | 14,668 | 614,149 | |
Eurobank Properties Real Estate Investment Co. | 51,742 | 598,681 | |
General Growth Properties, Inc. | 3,989 | 91,627 | |
HCP, Inc. | 3,200 | 133,952 | |
iStar Financial, Inc. (a)(d) | 13,265 | 197,118 | |
Kilroy Realty Corp. | 1,301 | 77,501 | |
Liberty Property Trust (SBI) | 2,300 | 86,250 | |
MFA Financial, Inc. | 22,410 | 177,711 | |
NorthStar Realty Finance Corp. | 21,211 | 339,800 | |
Piedmont Office Realty Trust, Inc. Class A | 15,300 | 269,433 | |
Redwood Trust, Inc. | 11,768 | 256,542 | |
Ryman Hospitality Properties, Inc. (d) | 2,911 | 132,596 | |
SL Green Realty Corp. | 2,480 | 259,681 | |
Sun Communities, Inc. | 3,713 | 169,201 | |
The Macerich Co. | 2,480 | 160,977 | |
Weyerhaeuser Co. | 13,900 | 414,915 | |
WP Carey, Inc. | 300 | 18,444 | |
| 5,895,594 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Management & Development - 1.8% | |||
Brookfield Asset Management, Inc. Class A | 2,500 | $ 104,945 | |
CBRE Group, Inc. (a) | 13,695 | 364,835 | |
Forest City Enterprises, Inc. Class A (a) | 22,583 | 427,045 | |
Kennedy Wilson Europe Real Estate PLC | 8,400 | 144,662 | |
Kennedy-Wilson Holdings, Inc. (a) | 24,886 | 543,510 | |
| 1,584,997 | ||
Thrifts & Mortgage Finance - 0.1% | |||
Ocwen Financial Corp. (a) | 3,100 | 117,490 | |
TOTAL FINANCIALS | 23,942,228 | ||
HEALTH CARE - 8.5% | |||
Biotechnology - 1.1% | |||
Aegerion Pharmaceuticals, Inc. (a) | 2,188 | 96,841 | |
Amgen, Inc. | 1,825 | 203,944 | |
Cubist Pharmaceuticals, Inc. | 2,239 | 156,864 | |
Theravance, Inc. (a)(d) | 7,454 | 200,662 | |
United Therapeutics Corp. (a) | 3,356 | 335,634 | |
| 993,945 | ||
Health Care Equipment & Supplies - 1.1% | |||
Boston Scientific Corp. (a) | 25,300 | 319,033 | |
CareFusion Corp. (a) | 3,298 | 128,820 | |
Masimo Corp. (a) | 2,600 | 69,576 | |
The Cooper Companies, Inc. | 1,100 | 145,101 | |
Zimmer Holdings, Inc. | 3,003 | 290,690 | |
| 953,220 | ||
Health Care Providers & Services - 2.9% | |||
Accretive Health, Inc. (a) | 10,427 | 83,937 | |
Cardinal Health, Inc. | 6,477 | 450,216 | |
Catamaran Corp. (United States) (a) | 2,100 | 79,275 | |
Cigna Corp. | 4,590 | 367,384 | |
Community Health Systems, Inc. (a) | 7,883 | 298,687 | |
Express Scripts Holding Co. (a) | 2,946 | 196,145 | |
HCA Holdings, Inc. (a) | 6,984 | 363,168 | |
Humana, Inc. | 2,330 | 255,718 | |
Quest Diagnostics, Inc. | 1,610 | 90,047 | |
UnitedHealth Group, Inc. | 2,490 | 186,850 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Universal American Spin Corp. | 14,392 | $ 103,191 | |
Universal Health Services, Inc. Class B | 1,249 | 102,156 | |
| 2,576,774 | ||
Health Care Technology - 0.3% | |||
CompuGroup Medical AG | 9,405 | 250,653 | |
Life Sciences Tools & Services - 0.6% | |||
Agilent Technologies, Inc. | 5,527 | 298,679 | |
Lonza Group AG | 1,824 | 190,566 | |
| 489,245 | ||
Pharmaceuticals - 2.5% | |||
Actavis PLC (a) | 3,001 | 613,194 | |
Cardiome Pharma Corp. (a) | 9,600 | 74,011 | |
Forest Laboratories, Inc. (a) | 2,580 | 237,128 | |
Hospira, Inc. (a) | 1,100 | 50,380 | |
Impax Laboratories, Inc. (a) | 12,345 | 322,822 | |
Jazz Pharmaceuticals PLC (a) | 1,633 | 220,292 | |
Salix Pharmaceuticals Ltd. (a) | 515 | 56,650 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 5,283 | 258,127 | |
The Medicines Company (a) | 12,342 | 328,297 | |
| 2,160,901 | ||
TOTAL HEALTH CARE | 7,424,738 | ||
INDUSTRIALS - 9.5% | |||
Aerospace & Defense - 1.5% | |||
Curtiss-Wright Corp. | 10,259 | 655,960 | |
Finmeccanica SpA (a) | 21,700 | 200,352 | |
Meggitt PLC | 25,206 | 202,873 | |
Textron, Inc. | 6,998 | 286,218 | |
| 1,345,403 | ||
Air Freight & Logistics - 0.7% | |||
FedEx Corp. | 2,947 | 401,529 | |
UTi Worldwide, Inc. | 17,509 | 171,413 | |
| 572,942 | ||
Airlines - 0.3% | |||
Southwest Airlines Co. | 8,964 | 216,660 | |
Commercial Services & Supplies - 1.6% | |||
ADT Corp. (d) | 8,731 | 264,025 | |
Intrum Justitia AB | 6,713 | 194,198 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
Iron Mountain, Inc. | 12,832 | $ 364,942 | |
Progressive Waste Solution Ltd. (Canada) | 11,892 | 289,475 | |
West Corp. | 10,490 | 255,432 | |
| 1,368,072 | ||
Construction & Engineering - 1.9% | |||
AECOM Technology Corp. (a) | 22,719 | 736,550 | |
URS Corp. | 19,233 | 906,259 | |
| 1,642,809 | ||
Electrical Equipment - 0.7% | |||
Babcock & Wilcox Co. | 18,775 | 653,182 | |
Industrial Conglomerates - 0.1% | |||
Koninklijke Philips Electronics NV | 2,671 | 85,507 | |
Machinery - 0.8% | |||
Manitowoc Co., Inc. | 4,113 | 130,711 | |
Snap-On, Inc. | 361 | 41,876 | |
Stanley Black & Decker, Inc. | 5,665 | 486,567 | |
Valmont Industries, Inc. | 400 | 59,564 | |
| 718,718 | ||
Marine - 0.1% | |||
Ultrapetrol (Bahamas) Ltd. (a) | 37,800 | 106,974 | |
Professional Services - 0.5% | |||
Dun & Bradstreet Corp. | 2,792 | 309,242 | |
FTI Consulting, Inc. (a) | 3,103 | 106,433 | |
| 415,675 | ||
Road & Rail - 0.4% | |||
CSX Corp. | 6,201 | 174,992 | |
Quality Distribution, Inc. (a) | 1,552 | 19,509 | |
TransForce, Inc. | 5,200 | 113,531 | |
| 308,032 | ||
Trading Companies & Distributors - 0.9% | |||
AerCap Holdings NV (a) | 12,796 | 533,977 | |
WESCO International, Inc. (a) | 3,330 | 292,307 | |
| 826,284 | ||
TOTAL INDUSTRIALS | 8,260,258 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - 11.8% | |||
Communications Equipment - 0.8% | |||
Juniper Networks, Inc. (a) | 11,067 | $ 273,244 | |
Plantronics, Inc. | 4,735 | 206,304 | |
QUALCOMM, Inc. | 2,846 | 224,009 | |
| 703,557 | ||
Electronic Equipment & Components - 1.4% | |||
Aeroflex Holding Corp. (a) | 16,436 | 125,735 | |
Ingram Micro, Inc. Class A (a) | 9,250 | 249,380 | |
Jabil Circuit, Inc. | 25,850 | 446,171 | |
TE Connectivity Ltd. | 3,534 | 208,435 | |
TTM Technologies, Inc. (a) | 28,797 | 227,208 | |
| 1,256,929 | ||
IT Services - 2.4% | |||
Amdocs Ltd. | 6,859 | 319,149 | |
CGI Group, Inc. Class A (sub. vtg.) (a) | 7,100 | 256,003 | |
Computer Sciences Corp. | 4,474 | 264,771 | |
Quindell PLC (d) | 423,003 | 178,550 | |
Sykes Enterprises, Inc. (a) | 3,094 | 61,230 | |
Total System Services, Inc. | 24,846 | 789,357 | |
Unisys Corp. (a) | 9,534 | 232,344 | |
| 2,101,404 | ||
Semiconductors & Semiconductor Equipment - 2.7% | |||
Broadcom Corp. Class A | 26,688 | 822,257 | |
Freescale Semiconductor, Inc. (a) | 12,673 | 278,426 | |
Intersil Corp. Class A | 14,191 | 175,117 | |
MagnaChip Semiconductor Corp. (a) | 7,700 | 107,800 | |
Maxim Integrated Products, Inc. | 4,047 | 131,285 | |
PMC-Sierra, Inc. (a) | 26,662 | 182,368 | |
Samsung Electronics Co. Ltd. | 475 | 617,487 | |
| 2,314,740 | ||
Software - 3.9% | |||
Activision Blizzard, Inc. | 24,004 | 480,320 | |
Comverse, Inc. (a) | 7,863 | 196,103 | |
Constellation Software, Inc. | 700 | 155,034 | |
Electronic Arts, Inc. (a) | 6,685 | 189,186 | |
Intuit, Inc. | 2,500 | 189,375 | |
Microsoft Corp. | 4,800 | 193,920 | |
MicroStrategy, Inc. Class A (a) | 1,400 | 170,002 | |
Nintendo Co. Ltd. | 900 | 94,464 | |
Oracle Corp. | 18,386 | 751,620 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Parametric Technology Corp. (a) | 4,212 | $ 148,978 | |
Rovi Corp. (a) | 6,500 | 144,885 | |
Symantec Corp. | 24,762 | 502,173 | |
Synopsys, Inc. (a) | 5,700 | 214,434 | |
| 3,430,494 | ||
Technology Hardware, Storage & Peripherals - 0.6% | |||
EMC Corp. | 18,912 | 487,930 | |
TOTAL INFORMATION TECHNOLOGY | 10,295,054 | ||
MATERIALS - 4.6% | |||
Chemicals - 3.4% | |||
Agrium, Inc. | 2,300 | 220,903 | |
Axiall Corp. | 5,506 | 256,580 | |
Cabot Corp. | 4,219 | 243,858 | |
Celanese Corp. Class A | 7,756 | 476,451 | |
Chemtura Corp. (a) | 3,006 | 67,034 | |
Cytec Industries, Inc. | 2,292 | 218,473 | |
Eastman Chemical Co. | 6,357 | 554,140 | |
LyondellBasell Industries NV Class A | 1,920 | 177,600 | |
Methanex Corp. | 7,934 | 491,437 | |
RPM International, Inc. | 3,705 | 158,055 | |
Tronox Ltd. Class A | 2,300 | 56,350 | |
Westlake Chemical Corp. | 1,100 | 78,320 | |
| 2,999,201 | ||
Containers & Packaging - 0.3% | |||
Sonoco Products Co. | 5,574 | 234,554 | |
Metals & Mining - 0.9% | |||
Freeport-McMoRan Copper & Gold, Inc. | 5,930 | 203,814 | |
Gem Diamonds Ltd. (a) | 32,466 | 90,994 | |
Newmont Mining Corp. | 2,740 | 68,034 | |
Reliance Steel & Aluminum Co. | 1,652 | 116,995 | |
Rio Tinto PLC sponsored ADR (d) | 2,842 | 154,292 | |
SunCoke Energy, Inc. (a) | 6,400 | 133,568 | |
| 767,697 | ||
TOTAL MATERIALS | 4,001,452 | ||
Common Stocks - continued | |||
Shares | Value | ||
TELECOMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.1% | |||
CenturyLink, Inc. | 950 | $ 33,165 | |
Frontier Communications Corp. (d) | 14,748 | 87,751 | |
| 120,916 | ||
Wireless Telecommunication Services - 0.1% | |||
NII Holdings, Inc. (a)(d) | 5,851 | 5,031 | |
T-Mobile U.S., Inc. (a) | 2,347 | 68,744 | |
| 73,775 | ||
TOTAL TELECOMMUNICATION SERVICES | 194,691 | ||
UTILITIES - 10.0% | |||
Electric Utilities - 4.6% | |||
Edison International | 26,647 | 1,507,154 | |
Exelon Corp. | 11,100 | 388,833 | |
ITC Holdings Corp. | 33,181 | 1,226,702 | |
NextEra Energy, Inc. | 3,962 | 395,606 | |
Xcel Energy, Inc. | 16,330 | 520,437 | |
| 4,038,732 | ||
Gas Utilities - 1.4% | |||
Atmos Energy Corp. | 8,762 | 447,212 | |
National Fuel Gas Co. | 10,480 | 771,747 | |
| 1,218,959 | ||
Independent Power Producers & Energy Traders - 0.5% | |||
Dynegy, Inc. (a) | 16,300 | 463,735 | |
Multi-Utilities - 3.5% | |||
DTE Energy Co. | 4,900 | 382,886 | |
NiSource, Inc. | 31,772 | 1,153,959 | |
Sempra Energy | 15,423 | 1,520,861 | |
| 3,057,706 | ||
TOTAL UTILITIES | 8,779,132 | ||
TOTAL COMMON STOCKS (Cost $70,822,257) |
| ||
Nonconvertible Preferred Stocks - 0.6% | |||
Shares | Value | ||
FINANCIALS - 0.6% | |||
Banks - 0.6% | |||
Itau Unibanco Holding SA sponsored ADR | 29,252 | $ 478,563 |
U.S. Treasury Obligations - 0.1% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.05% 5/29/14 to 6/26/14 (g) | $ 110,000 |
|
Preferred Securities - 0.2% | |||
|
|
|
|
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
Baggot Securities Ltd. 10.24% (e)(f) | 100,000 |
| |
Money Market Funds - 5.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.11% (b) | 3,687,252 | 3,687,252 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 855,701 | 855,701 | |
TOTAL MONEY MARKET FUNDS (Cost $4,542,953) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.3% (Cost $76,141,673) | 88,457,169 | ||
NET OTHER ASSETS (LIABILITIES) - (1.3)% | (1,110,189) | ||
NET ASSETS - 100% | $ 87,346,980 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
8 CME E-mini S&P MidCap 400 Index Contracts (United States) | June 2014 | $ 1,082,480 | $ (16,048) |
|
The face value of futures purchased as a percentage of net assets is 1.2% |
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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(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 $154,452 or 0.2% of net assets. |
(f) Security is perpetual in nature with no stated maturity date. |
(g) 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 $109,998. |
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 | $ 1,377 |
Fidelity Securities Lending Cash Central Fund | 3,394 |
Total | $ 4,771 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 10,282,159 | $ 10,282,159 | $ - | $ - |
Consumer Staples | 3,230,744 | 3,230,744 | - | - |
Energy | 6,760,747 | 6,760,747 | - | - |
Financials | 24,420,791 | 23,736,050 | 684,741 | - |
Health Care | 7,424,738 | 7,424,738 | - | - |
Industrials | 8,260,258 | 8,174,751 | 85,507 | - |
Information Technology | 10,295,054 | 10,200,590 | 94,464 | - |
Materials | 4,001,452 | 4,001,452 | - | - |
Telecommunication Services | 194,691 | 194,691 | - | - |
Utilities | 8,779,132 | 8,779,132 | - | - |
U.S. Government and Government Agency Obligations | 109,998 | - | 109,998 | - |
Preferred Securities | 154,452 | - | 154,452 | - |
Money Market Funds | 4,542,953 | 4,542,953 | - | - |
Total Investments in Securities: | $ 88,457,169 | $ 87,328,007 | $ 1,129,162 | $ - |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $ (16,048) | $ (16,048) | $ - | $ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ - | $ (16,048) |
Total Value of Derivatives | $ - | $ (16,048) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 82.1% |
Canada | 4.5% |
Bermuda | 2.5% |
United Kingdom | 2.0% |
Ireland | 1.6% |
Switzerland | 1.0% |
Others (Individually Less Than 1%) | 6.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $841,161) - See accompanying schedule: Unaffiliated issuers (cost $71,598,720) | $ 83,914,216 |
|
Fidelity Central Funds (cost $4,542,953) | 4,542,953 |
|
Total Investments (cost $76,141,673) |
| $ 88,457,169 |
Cash |
| 114,275 |
Foreign currency held at value (cost $13,103) | 13,163 | |
Receivable for investments sold | 575,421 | |
Receivable for fund shares sold | 216,827 | |
Dividends receivable | 51,478 | |
Interest receivable | 15 | |
Distributions receivable from Fidelity Central Funds | 891 | |
Receivable for daily variation margin for derivative instruments | 6,698 | |
Prepaid expenses | 71 | |
Other receivables | 708 | |
Total assets | 89,436,716 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 965,415 | |
Payable for fund shares redeemed | 130,798 | |
Accrued management fee | 37,208 | |
Distribution and service plan fees payable | 32,134 | |
Other affiliated payables | 19,509 | |
Other payables and accrued expenses | 48,971 | |
Collateral on securities loaned, at value | 855,701 | |
Total liabilities | 2,089,736 | |
|
|
|
Net Assets | $ 87,346,980 | |
Net Assets consist of: |
| |
Paid in capital | $ 91,632,190 | |
Undistributed net investment income | 29,994 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (16,614,864) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 12,299,660 | |
Net Assets | $ 87,346,980 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 20.41 | |
|
|
|
Maximum offering price per share (100/94.25 of $20.41) | $ 21.66 | |
Class T: | $ 20.23 | |
|
|
|
Maximum offering price per share (100/96.50 of $20.23) | $ 20.96 | |
Class B: | $ 19.65 | |
|
|
|
Class C: | $ 19.59 | |
|
|
|
Institutional Class: | $ 20.59 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 672,741 |
Interest |
| 9 |
Income from Fidelity Central Funds |
| 4,771 |
Total income |
| 677,521 |
|
|
|
Expenses | ||
Management fee | $ 227,498 | |
Performance adjustment | (18,003) | |
Transfer agent fees | 98,222 | |
Distribution and service plan fees | 184,307 | |
Accounting and security lending fees | 16,175 | |
Custodian fees and expenses | 40,358 | |
Independent trustees' compensation | 160 | |
Registration fees | 57,897 | |
Audit | 34,795 | |
Legal | 177 | |
Miscellaneous | 588 | |
Total expenses before reductions | 642,174 | |
Expense reductions | (45,226) | 596,948 |
Net investment income (loss) | 80,573 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 6,723,455 | |
Foreign currency transactions | (2,396) | |
Futures contracts | 45,023 | |
Total net realized gain (loss) |
| 6,766,082 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (295,980) | |
Assets and liabilities in foreign currencies | 188 | |
Futures contracts | (40,096) | |
Total change in net unrealized appreciation (depreciation) |
| (335,888) |
Net gain (loss) | 6,430,194 | |
Net increase (decrease) in net assets resulting from operations | $ 6,510,767 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 80,573 | $ 337,465 |
Net realized gain (loss) | 6,766,082 | 7,180,472 |
Change in net unrealized appreciation (depreciation) | (335,888) | 12,345,975 |
Net increase (decrease) in net assets resulting from operations | 6,510,767 | 19,863,912 |
Distributions to shareholders from net investment income | (112,252) | (345,665) |
Distributions to shareholders from net realized gain | (142,925) | - |
Total distributions | (255,177) | (345,665) |
Share transactions - net increase (decrease) | 2,500,905 | 2,685,061 |
Total increase (decrease) in net assets | 8,756,495 | 22,203,308 |
|
|
|
Net Assets | ||
Beginning of period | 78,590,485 | 56,387,177 |
End of period (including undistributed net investment income of $29,994 and undistributed net investment income of $61,673, respectively) | $ 87,346,980 | $ 78,590,485 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.90 | $ 14.08 | $ 12.25 | $ 12.12 | $ 9.81 | $ 8.33 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .04 | .11 | .07 | .03 | .06 H | .06 |
Net realized and unrealized gain (loss) | 1.56 | 4.82 | 1.79 | .17 | 2.29 | 1.46 |
Total from investment operations | 1.60 | 4.93 | 1.86 | .20 | 2.35 | 1.52 |
Distributions from net investment income | (.04) | (.11) | (.03) | (.06) | (.03) | (.04) |
Distributions from net realized gain | (.04) | - | - | (.01) | (.01) | - |
Total distributions | (.09) J | (.11) | (.03) | (.07) | (.04) | (.04) |
Net asset value, end of period | $ 20.41 | $ 18.90 | $ 14.08 | $ 12.25 | $ 12.12 | $ 9.81 |
Total Return B, C, D | 8.47% | 35.30% | 15.22% | 1.65% | 23.99% | 18.41% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.35% A | 1.31% | 1.35% | 1.29% | 1.33% | 1.36% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.25% A | 1.23% | 1.25% | 1.24% | 1.24% | 1.25% |
Net investment income (loss) | .39% A | .69% | .51% | .21% | .51%H | .76% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 41,981 | $ 38,397 | $ 27,817 | $ 29,635 | $ 37,972 | $ 40,404 |
Portfolio turnover rate G | 78% A | 103% | 77% | 96% | 152% | 58% |
A Annualized
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .13%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $.09 per share is comprised of distributions from net investment income of $.041 and distributions from net realized gain of $.044 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.72 | $ 13.95 | $ 12.15 | $ 12.03 | $ 9.74 | $ 8.29 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .01 | .07 | .03 | (.01) | .03 H | .04 |
Net realized and unrealized gain (loss) | 1.54 | 4.78 | 1.80 | .17 | 2.27 | 1.45 |
Total from investment operations | 1.55 | 4.85 | 1.83 | .16 | 2.30 | 1.49 |
Distributions from net investment income | - | (.08) | (.03) | (.04) | (.01) | (.04) |
Distributions from net realized gain | (.04) | - | - | (.01) | (.01) | - |
Total distributions | (.04) | (.08) | (.03) | (.04) J | (.01) K | (.04) |
Net asset value, end of period | $ 20.23 | $ 18.72 | $ 13.95 | $ 12.15 | $ 12.03 | $ 9.74 |
Total Return B, C, D | 8.31% | 34.94% | 15.05% | 1.35% | 23.66% | 18.09% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.63% A | 1.58% | 1.61% | 1.56% | 1.59% | 1.62% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.50% A | 1.48% | 1.50% | 1.49% | 1.49% | 1.50% |
Net investment income (loss) | .14% A | .44% | .26% | (.04)% | .26%H | .51% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 18,500 | $ 17,319 | $ 12,727 | $ 12,866 | $ 17,908 | $ 19,978 |
Portfolio turnover rate G | 78% A | 103% | 77% | 96% | 152% | 58% |
A Annualized
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.12) %.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $.04 per share is comprised of distributions from net investment income of $.035 and distributions from net realized gain of $.009 per share.
K Total distributions of $.01 per share is comprised of distributions from net investment income of $.008 and distributions from net realized gain of $.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.18 | $ 13.54 | $ 11.85 | $ 11.75 | $ 9.54 | $ 8.16 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.01) | (.03) | (.07) | (.03) H | - J |
Net realized and unrealized gain (loss) | 1.50 | 4.65 | 1.74 | .17 | 2.24 | 1.41 |
Total from investment operations | 1.47 | 4.64 | 1.71 | .10 | 2.21 | 1.41 |
Distributions from net investment income | - | - | (.02) | - | - | (.03) |
Net asset value, end of period | $ 19.65 | $ 18.18 | $ 13.54 | $ 11.85 | $ 11.75 | $ 9.54 |
Total Return B, C, D | 8.09% | 34.27% | 14.41% | .85% | 23.17% | 17.43% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.18% A | 2.11% | 2.13% | 2.05% | 2.08% | 2.12% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 2.00% A | 1.98% | 2.00% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | (.36)% A | (.06)% | (.24)% | (.54)% | (.24)H | .01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,845 | $ 2,116 | $ 2,480 | $ 3,482 | $ 4,937 | $ 4,828 |
Portfolio turnover rate G | 78% A | 103% | 77% | 96% | 152% | 58% |
A Annualized
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.62) %.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.13 | $ 13.51 | $ 11.83 | $ 11.73 | $ 9.53 | $ 8.14 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.01) | (.03) | (.07) | (.03) H | - J |
Net realized and unrealized gain (loss) | 1.49 | 4.64 | 1.73 | .17 | 2.23 | 1.42 |
Total from investment operations | 1.46 | 4.63 | 1.70 | .10 | 2.20 | 1.42 |
Distributions from net investment income | - | (.01) | (.02) | - | - | (.03) |
Net asset value, end of period | $ 19.59 | $ 18.13 | $ 13.51 | $ 11.83 | $ 11.73 | $ 9.53 |
Total Return B, C, D | 8.05% | 34.32% | 14.36% | .85% | 23.08% | 17.60% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.12% A | 2.08% | 2.10% | 2.04% | 2.08% | 2.11% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 2.00% A | 1.98% | 1.99% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | (.36)% A | (.06)% | (.24)% | (.54)% | (.24)%H | .01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 17,374 | $ 14,354 | $ 9,283 | $ 8,976 | $ 9,497 | $ 9,692 |
Portfolio turnover rate G | 78% A | 103% | 77% | 96% | 152% | 58% |
A Annualized
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.62) %.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.09 | $ 14.22 | $ 12.34 | $ 12.21 | $ 9.88 | $ 8.37 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .16 | .10 | .06 | .09 G | .08 |
Net realized and unrealized gain (loss) | 1.57 | 4.86 | 1.81 | .18 | 2.31 | 1.47 |
Total from investment operations | 1.63 | 5.02 | 1.91 | .24 | 2.40 | 1.55 |
Distributions from net investment income | (.09) | (.15) | (.03) | (.10) | (.06) | (.04) |
Distributions from net realized gain | (.04) | - | - | (.01) | (.01) | - |
Total distributions | (.13) | (.15) | (.03) | (.11) | (.07) | (.04) |
Net asset value, end of period | $ 20.59 | $ 19.09 | $ 14.22 | $ 12.34 | $ 12.21 | $ 9.88 |
Total Return B, C | 8.60% | 35.65% | 15.56% | 1.93% | 24.36% | 18.74% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.04% A | .96% | .99% | .97% | 1.03% | 1.16% |
Expenses net of fee waivers, if any | 1.00% A | .96% | .99% | .97% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% A | .94% | .99% | .96% | .99% | 1.00% |
Net investment income (loss) | .64% A | .98% | .76% | .49% | .76% G | 1.01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,647 | $ 6,405 | $ 4,080 | $ 4,869 | $ 5,894 | $ 5,230 |
Portfolio turnover rateF | 78% A | 103% | 77% | 96% | 152% | 58% |
A Annualized
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 Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® Value Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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. Preferred securities and 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 April 30, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends 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 transactions, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 14,134,454 |
Gross unrealized depreciation | (1,949,597) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 12,184,857 |
|
|
Tax cost | $ 76,272,312 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
2017 | $ (23,008,999) |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Futures Contracts - continued
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 for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face 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.
During the period the Fund recognized net realized gain (loss) of $45,023 and a change in net unrealized appreciation (depreciation) of $(40,096) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $32,781,511 and $31,141,890, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the Russell Midcap Value Index, over the same 36 month performance period. For the reporting period, the total
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
annualized management fee rate, including the performance adjustment, was .51% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 50,365 | $ 1,102 |
Class T | .25% | .25% | 44,702 | 525 |
Class B | .75% | .25% | 9,937 | 7,573 |
Class C | .75% | .25% | 79,303 | 13,966 |
|
|
| $ 184,307 | $ 23,166 |
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 T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 6,075 |
Class T | 1,439 |
Class B* | 788 |
Class C* | 1,228 |
| $ 9,530 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 46,245 | .23 |
Class T | 23,034 | .26 |
Class B | 3,002 | .30 |
Class C | 20,199 | .25 |
Institutional Class | 5,742 | .17 |
| $ 98,222 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $926 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $75 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $3,394. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.25% | $ 20,277 |
Class T | 1.50% | 11,580 |
Class B | 2.00% | 1,812 |
Class C | 2.00% | 9,487 |
Institutional Class | 1.00% | 1,508 |
|
| $ 44,664 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions - continued
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $553 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $9.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 83,047 | $ 223,873 |
Class T | - | 71,100 |
Class C | - | 8,906 |
Institutional Class | 29,205 | 41,786 |
Total | $ 112,252 | $ 345,665 |
From net realized gain |
|
|
Class A | $ 89,124 | $ - |
Class T | 39,363 | - |
Institutional Class | 14,438 | - |
Total | $ 142,925 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Class A |
|
|
|
|
Shares sold | 262,251 | 661,325 | $ 5,187,213 | $ 11,066,745 |
Reinvestment of distributions | 8,091 | 14,139 | 155,015 | 202,243 |
Shares redeemed | (244,901) | (619,275) | (4,815,572) | (10,353,339) |
Net increase (decrease) | 25,441 | 56,189 | $ 526,656 | $ 915,649 |
Class T |
|
|
|
|
Shares sold | 79,451 | 183,578 | $ 1,565,739 | $ 3,054,837 |
Reinvestment of distributions | 2,020 | 4,868 | 38,408 | 69,164 |
Shares redeemed | (92,255) | (175,709) | (1,782,781) | (2,895,363) |
Net increase (decrease) | (10,784) | 12,737 | $ (178,634) | $ 228,638 |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class B |
|
|
|
|
Shares sold | 2,813 | 16,969 | $ 54,581 | $ 251,841 |
Shares redeemed | (25,273) | (83,730) | (479,924) | (1,299,094) |
Net increase (decrease) | (22,460) | (66,761) | $ (425,343) | $ (1,047,253) |
Class C |
|
|
|
|
Shares sold | 174,157 | 286,749 | $ 3,318,509 | $ 4,683,936 |
Reinvestment of distributions | - | 588 | - | 8,189 |
Shares redeemed | (79,014) | (182,473) | (1,481,175) | (2,936,174) |
Net increase (decrease) | 95,143 | 104,864 | $ 1,837,334 | $ 1,755,951 |
Institutional Class |
|
|
|
|
Shares sold | 108,550 | 121,561 | $ 2,176,591 | $ 2,027,800 |
Reinvestment of distributions | 1,763 | 2,173 | 34,039 | 31,289 |
Shares redeemed | (74,419) | (75,216) | (1,469,738) | (1,227,013) |
Net increase (decrease) | 35,894 | 48,518 | $ 740,892 | $ 832,076 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
FAV-USAN-0614 1.800649.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value
Fund - Institutional Class
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.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.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.70 | $ 6.46 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.60 | $ 6.26 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,083.10 | $ 7.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.36 | $ 7.50 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,080.90 | $ 10.32 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.88 | $ 9.99 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,080.50 | $ 10.32 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.88 | $ 9.99 |
Institutional Class | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,086.00 | $ 5.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.84 | $ 5.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Sempra Energy | 1.8 | 2.0 |
Edison International | 1.7 | 1.5 |
ITC Holdings Corp. | 1.4 | 1.6 |
NiSource, Inc. | 1.3 | 1.3 |
Berkshire Hathaway, Inc. Class B | 1.1 | 1.0 |
URS Corp. | 1.0 | 1.3 |
Reinsurance Group of America, Inc. | 0.9 | 0.9 |
Broadcom Corp. Class A | 0.9 | 0.7 |
U.S. Bancorp | 0.9 | 1.3 |
Total System Services, Inc. | 0.9 | 0.6 |
| 11.9 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 28.2 | 27.6 |
Information Technology | 11.8 | 11.3 |
Consumer Discretionary | 11.8 | 11.9 |
Utilities | 10.0 | 9.7 |
Industrials | 9.5 | 10.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014* | As of October 31, 2013** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Other Investments 0.2% |
| ![]() | Other Investments 0.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 17.9% |
| ** Foreign investments | 14.9% |
|
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.2% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 11.8% | |||
Auto Components - 1.3% | |||
Allison Transmission Holdings, Inc. | 13,624 | $ 406,540 | |
Tenneco, Inc. (a) | 3,414 | 204,396 | |
Visteon Corp. (a) | 6,171 | 535,705 | |
| 1,146,641 | ||
Diversified Consumer Services - 0.7% | |||
Anhanguera Educacional Participacoes SA | 27,400 | 169,580 | |
H&R Block, Inc. | 7,212 | 204,965 | |
Houghton Mifflin Harcourt Co. | 9,315 | 190,305 | |
| 564,850 | ||
Hotels, Restaurants & Leisure - 0.4% | |||
Bloomin' Brands, Inc. (a) | 10,500 | 223,860 | |
Brinker International, Inc. | 3,220 | 158,231 | |
| 382,091 | ||
Household Durables - 0.8% | |||
Helen of Troy Ltd. (a) | 3,153 | 197,693 | |
KB Home | 28,008 | 462,412 | |
| 660,105 | ||
Internet & Catalog Retail - 0.2% | |||
Liberty Interactive Corp. Series A (a) | 6,648 | 193,191 | |
Leisure Products - 0.2% | |||
Brunswick Corp. | 4,393 | 176,555 | |
Media - 2.2% | |||
CBS Corp. Class B | 6,990 | 403,742 | |
Ipsos SA | 2,835 | 109,892 | |
Liberty Media Corp. Class A (a) | 2,380 | 308,710 | |
Live Nation Entertainment, Inc. (a) | 25,698 | 536,574 | |
Sinclair Broadcast Group, Inc. Class A | 9,244 | 247,092 | |
Twenty-First Century Fox, Inc. Class A | 5,460 | 174,829 | |
UBM PLC | 13,700 | 151,856 | |
| 1,932,695 | ||
Multiline Retail - 1.2% | |||
Dillard's, Inc. Class A | 2,998 | 293,594 | |
Kohl's Corp. | 8,493 | 465,331 | |
Macy's, Inc. | 4,832 | 277,502 | |
| 1,036,427 | ||
Specialty Retail - 4.6% | |||
Abercrombie & Fitch Co. Class A | 6,191 | 227,581 | |
Advance Auto Parts, Inc. | 2,180 | 264,412 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
AutoZone, Inc. (a) | 538 | $ 287,233 | |
Bed Bath & Beyond, Inc. (a) | 2,900 | 180,177 | |
Best Buy Co., Inc. | 17,525 | 454,423 | |
Chico's FAS, Inc. | 26,244 | 416,755 | |
Foot Locker, Inc. | 6,040 | 281,041 | |
Office Depot, Inc. (a) | 50,991 | 208,553 | |
PetSmart, Inc. (d) | 2,900 | 196,272 | |
Rent-A-Center, Inc. | 7,730 | 225,793 | |
Select Comfort Corp. (a) | 23,654 | 435,234 | |
Staples, Inc. | 50,839 | 635,488 | |
The Men's Wearhouse, Inc. | 4,281 | 202,834 | |
| 4,015,796 | ||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Gildan Activewear, Inc. | 3,400 | 173,808 | |
TOTAL CONSUMER DISCRETIONARY | 10,282,159 | ||
CONSUMER STAPLES - 3.7% | |||
Beverages - 0.8% | |||
C&C Group PLC | 31,381 | 186,771 | |
Cott Corp. | 23,333 | 189,466 | |
Molson Coors Brewing Co. Class B | 4,017 | 240,899 | |
Treasury Wine Estates Ltd. | 25,245 | 89,354 | |
| 706,490 | ||
Food Products - 1.9% | |||
Bunge Ltd. | 8,315 | 662,290 | |
Dean Foods Co. | 22,941 | 363,385 | |
Greencore Group PLC | 40,182 | 177,139 | |
Ingredion, Inc. | 3,146 | 221,636 | |
The J.M. Smucker Co. | 2,544 | 245,954 | |
| 1,670,404 | ||
Household Products - 0.2% | |||
Svenska Cellulosa AB (SCA) (B Shares) | 6,125 | 171,536 | |
Personal Products - 0.3% | |||
Coty, Inc. Class A | 17,435 | 279,832 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - continued | |||
Tobacco - 0.5% | |||
Japan Tobacco, Inc. | 4,300 | $ 141,153 | |
Lorillard, Inc. | 4,398 | 261,329 | |
| 402,482 | ||
TOTAL CONSUMER STAPLES | 3,230,744 | ||
ENERGY - 7.7% | |||
Energy Equipment & Services - 2.2% | |||
Cameron International Corp. (a) | 7,989 | 518,965 | |
Halliburton Co. | 10,309 | 650,189 | |
National Oilwell Varco, Inc. | 2,960 | 232,449 | |
Odfjell Drilling A/S | 17,418 | 98,455 | |
Rowan Companies PLC | 15,383 | 475,642 | |
| 1,975,700 | ||
Oil, Gas & Consumable Fuels - 5.5% | |||
Access Midstream Partners LP | 5,861 | 347,850 | |
Anadarko Petroleum Corp. | 2,400 | 237,648 | |
BPZ Energy, Inc. (a)(d) | 78,643 | 212,336 | |
Canadian Natural Resources Ltd. | 5,300 | 215,955 | |
Cloud Peak Energy, Inc. (a) | 1,367 | 26,916 | |
Energen Corp. | 8,020 | 624,838 | |
Imperial Oil Ltd. | 4,100 | 200,203 | |
Marathon Petroleum Corp. | 6,367 | 591,813 | |
Markwest Energy Partners LP | 2,200 | 139,348 | |
Newfield Exploration Co. (a) | 11,030 | 373,366 | |
Noble Energy, Inc. | 5,000 | 358,900 | |
Northern Oil & Gas, Inc. (a) | 9,209 | 142,095 | |
Scorpio Tankers, Inc. | 12,555 | 113,121 | |
Stone Energy Corp. (a) | 5,910 | 289,886 | |
Ultra Petroleum Corp. (a) | 7,200 | 214,560 | |
Whiting Petroleum Corp. (a) | 9,444 | 696,212 | |
| 4,785,047 | ||
TOTAL ENERGY | 6,760,747 | ||
FINANCIALS - 27.4% | |||
Banks - 4.8% | |||
Bank of Ireland (a) | 212,097 | 83,002 | |
Barclays PLC sponsored ADR | 13,236 | 226,468 | |
CIT Group, Inc. | 10,144 | 436,699 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Banks - continued | |||
Citigroup, Inc. | 4,384 | $ 210,037 | |
EFG Eurobank Ergasias SA (a) | 368,200 | 209,437 | |
First Citizen Bancshares, Inc. | 2,537 | 570,546 | |
JPMorgan Chase & Co. | 9,702 | 543,118 | |
M&T Bank Corp. | 2,879 | 351,267 | |
PNC Financial Services Group, Inc. | 4,741 | 398,434 | |
U.S. Bancorp | 19,755 | 805,609 | |
Wells Fargo & Co. | 6,749 | 335,020 | |
| 4,169,637 | ||
Capital Markets - 3.7% | |||
Ameriprise Financial, Inc. | 3,545 | 395,728 | |
Apollo Global Management LLC Class A | 4,218 | 114,434 | |
Ares Capital Corp. | 15,183 | 260,692 | |
Carlyle Group LP | 8,060 | 258,565 | |
E*TRADE Financial Corp. (a) | 15,459 | 347,055 | |
Fortress Investment Group LLC | 27,072 | 193,565 | |
Invesco Ltd. | 18,879 | 664,730 | |
KKR & Co. LP | 16,212 | 368,175 | |
The Blackstone Group LP | 11,396 | 336,524 | |
UBS AG | 13,560 | 283,592 | |
Vontobel Holdings AG | 1,138 | 44,545 | |
| 3,267,605 | ||
Consumer Finance - 2.0% | |||
Capital One Financial Corp. | 8,379 | 619,208 | |
Cash America International, Inc. | 3,804 | 165,664 | |
SLM Corp. | 30,202 | 777,702 | |
Springleaf Holdings, Inc. | 7,002 | 160,906 | |
| 1,723,480 | ||
Diversified Financial Services - 1.5% | |||
Berkshire Hathaway, Inc. Class B (a) | 7,591 | 978,100 | |
The NASDAQ OMX Group, Inc. | 8,830 | 325,827 | |
| 1,303,927 | ||
Insurance - 6.7% | |||
AFLAC, Inc. | 3,968 | 248,873 | |
Allied World Assurance Co. Holdings Ltd. | 2,207 | 237,672 | |
Allstate Corp. | 4,315 | 245,739 | |
AMBAC Financial Group, Inc. (a) | 17,101 | 516,108 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 1,520 | 662,751 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Insurance - continued | |||
Fidelity National Financial, Inc. Class A | 8,400 | $ 270,312 | |
Greenlight Capital Re, Ltd. (a) | 9,790 | 311,616 | |
Intact Financial Corp. | 3,800 | 249,520 | |
Mercury General Corp. | 2,892 | 138,411 | |
Old Republic International Corp. | 20,111 | 333,038 | |
Primerica, Inc. | 3,800 | 174,382 | |
ProAssurance Corp. | 4,343 | 197,259 | |
Progressive Corp. | 5,470 | 132,648 | |
Prudential PLC | 13,839 | 318,147 | |
Reinsurance Group of America, Inc. | 10,764 | 825,706 | |
StanCorp Financial Group, Inc. | 3,668 | 224,115 | |
Third Point Reinsurance Ltd. | 8,008 | 125,245 | |
Torchmark Corp. | 4,499 | 358,570 | |
Validus Holdings Ltd. | 8,346 | 309,386 | |
| 5,879,498 | ||
Real Estate Investment Trusts - 6.8% | |||
Alexandria Real Estate Equities, Inc. | 4,370 | 322,593 | |
American Capital Agency Corp. | 22,078 | 501,391 | |
American Tower Corp. | 7,822 | 653,293 | |
Boston Properties, Inc. | 429 | 50,253 | |
Corporate Office Properties Trust (SBI) | 6,111 | 163,469 | |
Digital Realty Trust, Inc. (d) | 3,858 | 206,017 | |
Equity Lifestyle Properties, Inc. | 14,668 | 614,149 | |
Eurobank Properties Real Estate Investment Co. | 51,742 | 598,681 | |
General Growth Properties, Inc. | 3,989 | 91,627 | |
HCP, Inc. | 3,200 | 133,952 | |
iStar Financial, Inc. (a)(d) | 13,265 | 197,118 | |
Kilroy Realty Corp. | 1,301 | 77,501 | |
Liberty Property Trust (SBI) | 2,300 | 86,250 | |
MFA Financial, Inc. | 22,410 | 177,711 | |
NorthStar Realty Finance Corp. | 21,211 | 339,800 | |
Piedmont Office Realty Trust, Inc. Class A | 15,300 | 269,433 | |
Redwood Trust, Inc. | 11,768 | 256,542 | |
Ryman Hospitality Properties, Inc. (d) | 2,911 | 132,596 | |
SL Green Realty Corp. | 2,480 | 259,681 | |
Sun Communities, Inc. | 3,713 | 169,201 | |
The Macerich Co. | 2,480 | 160,977 | |
Weyerhaeuser Co. | 13,900 | 414,915 | |
WP Carey, Inc. | 300 | 18,444 | |
| 5,895,594 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Management & Development - 1.8% | |||
Brookfield Asset Management, Inc. Class A | 2,500 | $ 104,945 | |
CBRE Group, Inc. (a) | 13,695 | 364,835 | |
Forest City Enterprises, Inc. Class A (a) | 22,583 | 427,045 | |
Kennedy Wilson Europe Real Estate PLC | 8,400 | 144,662 | |
Kennedy-Wilson Holdings, Inc. (a) | 24,886 | 543,510 | |
| 1,584,997 | ||
Thrifts & Mortgage Finance - 0.1% | |||
Ocwen Financial Corp. (a) | 3,100 | 117,490 | |
TOTAL FINANCIALS | 23,942,228 | ||
HEALTH CARE - 8.5% | |||
Biotechnology - 1.1% | |||
Aegerion Pharmaceuticals, Inc. (a) | 2,188 | 96,841 | |
Amgen, Inc. | 1,825 | 203,944 | |
Cubist Pharmaceuticals, Inc. | 2,239 | 156,864 | |
Theravance, Inc. (a)(d) | 7,454 | 200,662 | |
United Therapeutics Corp. (a) | 3,356 | 335,634 | |
| 993,945 | ||
Health Care Equipment & Supplies - 1.1% | |||
Boston Scientific Corp. (a) | 25,300 | 319,033 | |
CareFusion Corp. (a) | 3,298 | 128,820 | |
Masimo Corp. (a) | 2,600 | 69,576 | |
The Cooper Companies, Inc. | 1,100 | 145,101 | |
Zimmer Holdings, Inc. | 3,003 | 290,690 | |
| 953,220 | ||
Health Care Providers & Services - 2.9% | |||
Accretive Health, Inc. (a) | 10,427 | 83,937 | |
Cardinal Health, Inc. | 6,477 | 450,216 | |
Catamaran Corp. (United States) (a) | 2,100 | 79,275 | |
Cigna Corp. | 4,590 | 367,384 | |
Community Health Systems, Inc. (a) | 7,883 | 298,687 | |
Express Scripts Holding Co. (a) | 2,946 | 196,145 | |
HCA Holdings, Inc. (a) | 6,984 | 363,168 | |
Humana, Inc. | 2,330 | 255,718 | |
Quest Diagnostics, Inc. | 1,610 | 90,047 | |
UnitedHealth Group, Inc. | 2,490 | 186,850 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Universal American Spin Corp. | 14,392 | $ 103,191 | |
Universal Health Services, Inc. Class B | 1,249 | 102,156 | |
| 2,576,774 | ||
Health Care Technology - 0.3% | |||
CompuGroup Medical AG | 9,405 | 250,653 | |
Life Sciences Tools & Services - 0.6% | |||
Agilent Technologies, Inc. | 5,527 | 298,679 | |
Lonza Group AG | 1,824 | 190,566 | |
| 489,245 | ||
Pharmaceuticals - 2.5% | |||
Actavis PLC (a) | 3,001 | 613,194 | |
Cardiome Pharma Corp. (a) | 9,600 | 74,011 | |
Forest Laboratories, Inc. (a) | 2,580 | 237,128 | |
Hospira, Inc. (a) | 1,100 | 50,380 | |
Impax Laboratories, Inc. (a) | 12,345 | 322,822 | |
Jazz Pharmaceuticals PLC (a) | 1,633 | 220,292 | |
Salix Pharmaceuticals Ltd. (a) | 515 | 56,650 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 5,283 | 258,127 | |
The Medicines Company (a) | 12,342 | 328,297 | |
| 2,160,901 | ||
TOTAL HEALTH CARE | 7,424,738 | ||
INDUSTRIALS - 9.5% | |||
Aerospace & Defense - 1.5% | |||
Curtiss-Wright Corp. | 10,259 | 655,960 | |
Finmeccanica SpA (a) | 21,700 | 200,352 | |
Meggitt PLC | 25,206 | 202,873 | |
Textron, Inc. | 6,998 | 286,218 | |
| 1,345,403 | ||
Air Freight & Logistics - 0.7% | |||
FedEx Corp. | 2,947 | 401,529 | |
UTi Worldwide, Inc. | 17,509 | 171,413 | |
| 572,942 | ||
Airlines - 0.3% | |||
Southwest Airlines Co. | 8,964 | 216,660 | |
Commercial Services & Supplies - 1.6% | |||
ADT Corp. (d) | 8,731 | 264,025 | |
Intrum Justitia AB | 6,713 | 194,198 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
Iron Mountain, Inc. | 12,832 | $ 364,942 | |
Progressive Waste Solution Ltd. (Canada) | 11,892 | 289,475 | |
West Corp. | 10,490 | 255,432 | |
| 1,368,072 | ||
Construction & Engineering - 1.9% | |||
AECOM Technology Corp. (a) | 22,719 | 736,550 | |
URS Corp. | 19,233 | 906,259 | |
| 1,642,809 | ||
Electrical Equipment - 0.7% | |||
Babcock & Wilcox Co. | 18,775 | 653,182 | |
Industrial Conglomerates - 0.1% | |||
Koninklijke Philips Electronics NV | 2,671 | 85,507 | |
Machinery - 0.8% | |||
Manitowoc Co., Inc. | 4,113 | 130,711 | |
Snap-On, Inc. | 361 | 41,876 | |
Stanley Black & Decker, Inc. | 5,665 | 486,567 | |
Valmont Industries, Inc. | 400 | 59,564 | |
| 718,718 | ||
Marine - 0.1% | |||
Ultrapetrol (Bahamas) Ltd. (a) | 37,800 | 106,974 | |
Professional Services - 0.5% | |||
Dun & Bradstreet Corp. | 2,792 | 309,242 | |
FTI Consulting, Inc. (a) | 3,103 | 106,433 | |
| 415,675 | ||
Road & Rail - 0.4% | |||
CSX Corp. | 6,201 | 174,992 | |
Quality Distribution, Inc. (a) | 1,552 | 19,509 | |
TransForce, Inc. | 5,200 | 113,531 | |
| 308,032 | ||
Trading Companies & Distributors - 0.9% | |||
AerCap Holdings NV (a) | 12,796 | 533,977 | |
WESCO International, Inc. (a) | 3,330 | 292,307 | |
| 826,284 | ||
TOTAL INDUSTRIALS | 8,260,258 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - 11.8% | |||
Communications Equipment - 0.8% | |||
Juniper Networks, Inc. (a) | 11,067 | $ 273,244 | |
Plantronics, Inc. | 4,735 | 206,304 | |
QUALCOMM, Inc. | 2,846 | 224,009 | |
| 703,557 | ||
Electronic Equipment & Components - 1.4% | |||
Aeroflex Holding Corp. (a) | 16,436 | 125,735 | |
Ingram Micro, Inc. Class A (a) | 9,250 | 249,380 | |
Jabil Circuit, Inc. | 25,850 | 446,171 | |
TE Connectivity Ltd. | 3,534 | 208,435 | |
TTM Technologies, Inc. (a) | 28,797 | 227,208 | |
| 1,256,929 | ||
IT Services - 2.4% | |||
Amdocs Ltd. | 6,859 | 319,149 | |
CGI Group, Inc. Class A (sub. vtg.) (a) | 7,100 | 256,003 | |
Computer Sciences Corp. | 4,474 | 264,771 | |
Quindell PLC (d) | 423,003 | 178,550 | |
Sykes Enterprises, Inc. (a) | 3,094 | 61,230 | |
Total System Services, Inc. | 24,846 | 789,357 | |
Unisys Corp. (a) | 9,534 | 232,344 | |
| 2,101,404 | ||
Semiconductors & Semiconductor Equipment - 2.7% | |||
Broadcom Corp. Class A | 26,688 | 822,257 | |
Freescale Semiconductor, Inc. (a) | 12,673 | 278,426 | |
Intersil Corp. Class A | 14,191 | 175,117 | |
MagnaChip Semiconductor Corp. (a) | 7,700 | 107,800 | |
Maxim Integrated Products, Inc. | 4,047 | 131,285 | |
PMC-Sierra, Inc. (a) | 26,662 | 182,368 | |
Samsung Electronics Co. Ltd. | 475 | 617,487 | |
| 2,314,740 | ||
Software - 3.9% | |||
Activision Blizzard, Inc. | 24,004 | 480,320 | |
Comverse, Inc. (a) | 7,863 | 196,103 | |
Constellation Software, Inc. | 700 | 155,034 | |
Electronic Arts, Inc. (a) | 6,685 | 189,186 | |
Intuit, Inc. | 2,500 | 189,375 | |
Microsoft Corp. | 4,800 | 193,920 | |
MicroStrategy, Inc. Class A (a) | 1,400 | 170,002 | |
Nintendo Co. Ltd. | 900 | 94,464 | |
Oracle Corp. | 18,386 | 751,620 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Parametric Technology Corp. (a) | 4,212 | $ 148,978 | |
Rovi Corp. (a) | 6,500 | 144,885 | |
Symantec Corp. | 24,762 | 502,173 | |
Synopsys, Inc. (a) | 5,700 | 214,434 | |
| 3,430,494 | ||
Technology Hardware, Storage & Peripherals - 0.6% | |||
EMC Corp. | 18,912 | 487,930 | |
TOTAL INFORMATION TECHNOLOGY | 10,295,054 | ||
MATERIALS - 4.6% | |||
Chemicals - 3.4% | |||
Agrium, Inc. | 2,300 | 220,903 | |
Axiall Corp. | 5,506 | 256,580 | |
Cabot Corp. | 4,219 | 243,858 | |
Celanese Corp. Class A | 7,756 | 476,451 | |
Chemtura Corp. (a) | 3,006 | 67,034 | |
Cytec Industries, Inc. | 2,292 | 218,473 | |
Eastman Chemical Co. | 6,357 | 554,140 | |
LyondellBasell Industries NV Class A | 1,920 | 177,600 | |
Methanex Corp. | 7,934 | 491,437 | |
RPM International, Inc. | 3,705 | 158,055 | |
Tronox Ltd. Class A | 2,300 | 56,350 | |
Westlake Chemical Corp. | 1,100 | 78,320 | |
| 2,999,201 | ||
Containers & Packaging - 0.3% | |||
Sonoco Products Co. | 5,574 | 234,554 | |
Metals & Mining - 0.9% | |||
Freeport-McMoRan Copper & Gold, Inc. | 5,930 | 203,814 | |
Gem Diamonds Ltd. (a) | 32,466 | 90,994 | |
Newmont Mining Corp. | 2,740 | 68,034 | |
Reliance Steel & Aluminum Co. | 1,652 | 116,995 | |
Rio Tinto PLC sponsored ADR (d) | 2,842 | 154,292 | |
SunCoke Energy, Inc. (a) | 6,400 | 133,568 | |
| 767,697 | ||
TOTAL MATERIALS | 4,001,452 | ||
Common Stocks - continued | |||
Shares | Value | ||
TELECOMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.1% | |||
CenturyLink, Inc. | 950 | $ 33,165 | |
Frontier Communications Corp. (d) | 14,748 | 87,751 | |
| 120,916 | ||
Wireless Telecommunication Services - 0.1% | |||
NII Holdings, Inc. (a)(d) | 5,851 | 5,031 | |
T-Mobile U.S., Inc. (a) | 2,347 | 68,744 | |
| 73,775 | ||
TOTAL TELECOMMUNICATION SERVICES | 194,691 | ||
UTILITIES - 10.0% | |||
Electric Utilities - 4.6% | |||
Edison International | 26,647 | 1,507,154 | |
Exelon Corp. | 11,100 | 388,833 | |
ITC Holdings Corp. | 33,181 | 1,226,702 | |
NextEra Energy, Inc. | 3,962 | 395,606 | |
Xcel Energy, Inc. | 16,330 | 520,437 | |
| 4,038,732 | ||
Gas Utilities - 1.4% | |||
Atmos Energy Corp. | 8,762 | 447,212 | |
National Fuel Gas Co. | 10,480 | 771,747 | |
| 1,218,959 | ||
Independent Power Producers & Energy Traders - 0.5% | |||
Dynegy, Inc. (a) | 16,300 | 463,735 | |
Multi-Utilities - 3.5% | |||
DTE Energy Co. | 4,900 | 382,886 | |
NiSource, Inc. | 31,772 | 1,153,959 | |
Sempra Energy | 15,423 | 1,520,861 | |
| 3,057,706 | ||
TOTAL UTILITIES | 8,779,132 | ||
TOTAL COMMON STOCKS (Cost $70,822,257) |
| ||
Nonconvertible Preferred Stocks - 0.6% | |||
Shares | Value | ||
FINANCIALS - 0.6% | |||
Banks - 0.6% | |||
Itau Unibanco Holding SA sponsored ADR | 29,252 | $ 478,563 |
U.S. Treasury Obligations - 0.1% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.05% 5/29/14 to 6/26/14 (g) | $ 110,000 |
|
Preferred Securities - 0.2% | |||
|
|
|
|
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
Baggot Securities Ltd. 10.24% (e)(f) | 100,000 |
| |
Money Market Funds - 5.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.11% (b) | 3,687,252 | 3,687,252 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 855,701 | 855,701 | |
TOTAL MONEY MARKET FUNDS (Cost $4,542,953) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.3% (Cost $76,141,673) | 88,457,169 | ||
NET OTHER ASSETS (LIABILITIES) - (1.3)% | (1,110,189) | ||
NET ASSETS - 100% | $ 87,346,980 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
8 CME E-mini S&P MidCap 400 Index Contracts (United States) | June 2014 | $ 1,082,480 | $ (16,048) |
|
The face value of futures purchased as a percentage of net assets is 1.2% |
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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(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 $154,452 or 0.2% of net assets. |
(f) Security is perpetual in nature with no stated maturity date. |
(g) 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 $109,998. |
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 | $ 1,377 |
Fidelity Securities Lending Cash Central Fund | 3,394 |
Total | $ 4,771 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 10,282,159 | $ 10,282,159 | $ - | $ - |
Consumer Staples | 3,230,744 | 3,230,744 | - | - |
Energy | 6,760,747 | 6,760,747 | - | - |
Financials | 24,420,791 | 23,736,050 | 684,741 | - |
Health Care | 7,424,738 | 7,424,738 | - | - |
Industrials | 8,260,258 | 8,174,751 | 85,507 | - |
Information Technology | 10,295,054 | 10,200,590 | 94,464 | - |
Materials | 4,001,452 | 4,001,452 | - | - |
Telecommunication Services | 194,691 | 194,691 | - | - |
Utilities | 8,779,132 | 8,779,132 | - | - |
U.S. Government and Government Agency Obligations | 109,998 | - | 109,998 | - |
Preferred Securities | 154,452 | - | 154,452 | - |
Money Market Funds | 4,542,953 | 4,542,953 | - | - |
Total Investments in Securities: | $ 88,457,169 | $ 87,328,007 | $ 1,129,162 | $ - |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $ (16,048) | $ (16,048) | $ - | $ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ - | $ (16,048) |
Total Value of Derivatives | $ - | $ (16,048) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 82.1% |
Canada | 4.5% |
Bermuda | 2.5% |
United Kingdom | 2.0% |
Ireland | 1.6% |
Switzerland | 1.0% |
Others (Individually Less Than 1%) | 6.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $841,161) - See accompanying schedule: Unaffiliated issuers (cost $71,598,720) | $ 83,914,216 |
|
Fidelity Central Funds (cost $4,542,953) | 4,542,953 |
|
Total Investments (cost $76,141,673) |
| $ 88,457,169 |
Cash |
| 114,275 |
Foreign currency held at value (cost $13,103) | 13,163 | |
Receivable for investments sold | 575,421 | |
Receivable for fund shares sold | 216,827 | |
Dividends receivable | 51,478 | |
Interest receivable | 15 | |
Distributions receivable from Fidelity Central Funds | 891 | |
Receivable for daily variation margin for derivative instruments | 6,698 | |
Prepaid expenses | 71 | |
Other receivables | 708 | |
Total assets | 89,436,716 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 965,415 | |
Payable for fund shares redeemed | 130,798 | |
Accrued management fee | 37,208 | |
Distribution and service plan fees payable | 32,134 | |
Other affiliated payables | 19,509 | |
Other payables and accrued expenses | 48,971 | |
Collateral on securities loaned, at value | 855,701 | |
Total liabilities | 2,089,736 | |
|
|
|
Net Assets | $ 87,346,980 | |
Net Assets consist of: |
| |
Paid in capital | $ 91,632,190 | |
Undistributed net investment income | 29,994 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (16,614,864) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 12,299,660 | |
Net Assets | $ 87,346,980 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 20.41 | |
|
|
|
Maximum offering price per share (100/94.25 of $20.41) | $ 21.66 | |
Class T: | $ 20.23 | |
|
|
|
Maximum offering price per share (100/96.50 of $20.23) | $ 20.96 | |
Class B: | $ 19.65 | |
|
|
|
Class C: | $ 19.59 | |
|
|
|
Institutional Class: | $ 20.59 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 672,741 |
Interest |
| 9 |
Income from Fidelity Central Funds |
| 4,771 |
Total income |
| 677,521 |
|
|
|
Expenses | ||
Management fee | $ 227,498 | |
Performance adjustment | (18,003) | |
Transfer agent fees | 98,222 | |
Distribution and service plan fees | 184,307 | |
Accounting and security lending fees | 16,175 | |
Custodian fees and expenses | 40,358 | |
Independent trustees' compensation | 160 | |
Registration fees | 57,897 | |
Audit | 34,795 | |
Legal | 177 | |
Miscellaneous | 588 | |
Total expenses before reductions | 642,174 | |
Expense reductions | (45,226) | 596,948 |
Net investment income (loss) | 80,573 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 6,723,455 | |
Foreign currency transactions | (2,396) | |
Futures contracts | 45,023 | |
Total net realized gain (loss) |
| 6,766,082 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (295,980) | |
Assets and liabilities in foreign currencies | 188 | |
Futures contracts | (40,096) | |
Total change in net unrealized appreciation (depreciation) |
| (335,888) |
Net gain (loss) | 6,430,194 | |
Net increase (decrease) in net assets resulting from operations | $ 6,510,767 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 80,573 | $ 337,465 |
Net realized gain (loss) | 6,766,082 | 7,180,472 |
Change in net unrealized appreciation (depreciation) | (335,888) | 12,345,975 |
Net increase (decrease) in net assets resulting from operations | 6,510,767 | 19,863,912 |
Distributions to shareholders from net investment income | (112,252) | (345,665) |
Distributions to shareholders from net realized gain | (142,925) | - |
Total distributions | (255,177) | (345,665) |
Share transactions - net increase (decrease) | 2,500,905 | 2,685,061 |
Total increase (decrease) in net assets | 8,756,495 | 22,203,308 |
|
|
|
Net Assets | ||
Beginning of period | 78,590,485 | 56,387,177 |
End of period (including undistributed net investment income of $29,994 and undistributed net investment income of $61,673, respectively) | $ 87,346,980 | $ 78,590,485 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.90 | $ 14.08 | $ 12.25 | $ 12.12 | $ 9.81 | $ 8.33 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .04 | .11 | .07 | .03 | .06 H | .06 |
Net realized and unrealized gain (loss) | 1.56 | 4.82 | 1.79 | .17 | 2.29 | 1.46 |
Total from investment operations | 1.60 | 4.93 | 1.86 | .20 | 2.35 | 1.52 |
Distributions from net investment income | (.04) | (.11) | (.03) | (.06) | (.03) | (.04) |
Distributions from net realized gain | (.04) | - | - | (.01) | (.01) | - |
Total distributions | (.09) J | (.11) | (.03) | (.07) | (.04) | (.04) |
Net asset value, end of period | $ 20.41 | $ 18.90 | $ 14.08 | $ 12.25 | $ 12.12 | $ 9.81 |
Total Return B, C, D | 8.47% | 35.30% | 15.22% | 1.65% | 23.99% | 18.41% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.35% A | 1.31% | 1.35% | 1.29% | 1.33% | 1.36% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.25% A | 1.23% | 1.25% | 1.24% | 1.24% | 1.25% |
Net investment income (loss) | .39% A | .69% | .51% | .21% | .51%H | .76% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 41,981 | $ 38,397 | $ 27,817 | $ 29,635 | $ 37,972 | $ 40,404 |
Portfolio turnover rate G | 78% A | 103% | 77% | 96% | 152% | 58% |
A Annualized
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .13%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $.09 per share is comprised of distributions from net investment income of $.041 and distributions from net realized gain of $.044 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.72 | $ 13.95 | $ 12.15 | $ 12.03 | $ 9.74 | $ 8.29 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .01 | .07 | .03 | (.01) | .03 H | .04 |
Net realized and unrealized gain (loss) | 1.54 | 4.78 | 1.80 | .17 | 2.27 | 1.45 |
Total from investment operations | 1.55 | 4.85 | 1.83 | .16 | 2.30 | 1.49 |
Distributions from net investment income | - | (.08) | (.03) | (.04) | (.01) | (.04) |
Distributions from net realized gain | (.04) | - | - | (.01) | (.01) | - |
Total distributions | (.04) | (.08) | (.03) | (.04) J | (.01) K | (.04) |
Net asset value, end of period | $ 20.23 | $ 18.72 | $ 13.95 | $ 12.15 | $ 12.03 | $ 9.74 |
Total Return B, C, D | 8.31% | 34.94% | 15.05% | 1.35% | 23.66% | 18.09% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.63% A | 1.58% | 1.61% | 1.56% | 1.59% | 1.62% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.50% A | 1.48% | 1.50% | 1.49% | 1.49% | 1.50% |
Net investment income (loss) | .14% A | .44% | .26% | (.04)% | .26%H | .51% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 18,500 | $ 17,319 | $ 12,727 | $ 12,866 | $ 17,908 | $ 19,978 |
Portfolio turnover rate G | 78% A | 103% | 77% | 96% | 152% | 58% |
A Annualized
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.12) %.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $.04 per share is comprised of distributions from net investment income of $.035 and distributions from net realized gain of $.009 per share.
K Total distributions of $.01 per share is comprised of distributions from net investment income of $.008 and distributions from net realized gain of $.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.18 | $ 13.54 | $ 11.85 | $ 11.75 | $ 9.54 | $ 8.16 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.01) | (.03) | (.07) | (.03) H | - J |
Net realized and unrealized gain (loss) | 1.50 | 4.65 | 1.74 | .17 | 2.24 | 1.41 |
Total from investment operations | 1.47 | 4.64 | 1.71 | .10 | 2.21 | 1.41 |
Distributions from net investment income | - | - | (.02) | - | - | (.03) |
Net asset value, end of period | $ 19.65 | $ 18.18 | $ 13.54 | $ 11.85 | $ 11.75 | $ 9.54 |
Total Return B, C, D | 8.09% | 34.27% | 14.41% | .85% | 23.17% | 17.43% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.18% A | 2.11% | 2.13% | 2.05% | 2.08% | 2.12% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 2.00% A | 1.98% | 2.00% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | (.36)% A | (.06)% | (.24)% | (.54)% | (.24)H | .01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,845 | $ 2,116 | $ 2,480 | $ 3,482 | $ 4,937 | $ 4,828 |
Portfolio turnover rate G | 78% A | 103% | 77% | 96% | 152% | 58% |
A Annualized
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.62) %.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.13 | $ 13.51 | $ 11.83 | $ 11.73 | $ 9.53 | $ 8.14 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.01) | (.03) | (.07) | (.03) H | - J |
Net realized and unrealized gain (loss) | 1.49 | 4.64 | 1.73 | .17 | 2.23 | 1.42 |
Total from investment operations | 1.46 | 4.63 | 1.70 | .10 | 2.20 | 1.42 |
Distributions from net investment income | - | (.01) | (.02) | - | - | (.03) |
Net asset value, end of period | $ 19.59 | $ 18.13 | $ 13.51 | $ 11.83 | $ 11.73 | $ 9.53 |
Total Return B, C, D | 8.05% | 34.32% | 14.36% | .85% | 23.08% | 17.60% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.12% A | 2.08% | 2.10% | 2.04% | 2.08% | 2.11% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 2.00% A | 1.98% | 1.99% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | (.36)% A | (.06)% | (.24)% | (.54)% | (.24)%H | .01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 17,374 | $ 14,354 | $ 9,283 | $ 8,976 | $ 9,497 | $ 9,692 |
Portfolio turnover rate G | 78% A | 103% | 77% | 96% | 152% | 58% |
A Annualized
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.62) %.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.09 | $ 14.22 | $ 12.34 | $ 12.21 | $ 9.88 | $ 8.37 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .16 | .10 | .06 | .09 G | .08 |
Net realized and unrealized gain (loss) | 1.57 | 4.86 | 1.81 | .18 | 2.31 | 1.47 |
Total from investment operations | 1.63 | 5.02 | 1.91 | .24 | 2.40 | 1.55 |
Distributions from net investment income | (.09) | (.15) | (.03) | (.10) | (.06) | (.04) |
Distributions from net realized gain | (.04) | - | - | (.01) | (.01) | - |
Total distributions | (.13) | (.15) | (.03) | (.11) | (.07) | (.04) |
Net asset value, end of period | $ 20.59 | $ 19.09 | $ 14.22 | $ 12.34 | $ 12.21 | $ 9.88 |
Total Return B, C | 8.60% | 35.65% | 15.56% | 1.93% | 24.36% | 18.74% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.04% A | .96% | .99% | .97% | 1.03% | 1.16% |
Expenses net of fee waivers, if any | 1.00% A | .96% | .99% | .97% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% A | .94% | .99% | .96% | .99% | 1.00% |
Net investment income (loss) | .64% A | .98% | .76% | .49% | .76% G | 1.01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,647 | $ 6,405 | $ 4,080 | $ 4,869 | $ 5,894 | $ 5,230 |
Portfolio turnover rateF | 78% A | 103% | 77% | 96% | 152% | 58% |
A Annualized
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 Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® Value Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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. Preferred securities and 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 April 30, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends 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 transactions, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 14,134,454 |
Gross unrealized depreciation | (1,949,597) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 12,184,857 |
|
|
Tax cost | $ 76,272,312 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
2017 | $ (23,008,999) |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Futures Contracts - continued
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 for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face 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.
During the period the Fund recognized net realized gain (loss) of $45,023 and a change in net unrealized appreciation (depreciation) of $(40,096) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $32,781,511 and $31,141,890, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the Russell Midcap Value Index, over the same 36 month performance period. For the reporting period, the total
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
annualized management fee rate, including the performance adjustment, was .51% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 50,365 | $ 1,102 |
Class T | .25% | .25% | 44,702 | 525 |
Class B | .75% | .25% | 9,937 | 7,573 |
Class C | .75% | .25% | 79,303 | 13,966 |
|
|
| $ 184,307 | $ 23,166 |
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 T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 6,075 |
Class T | 1,439 |
Class B* | 788 |
Class C* | 1,228 |
| $ 9,530 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 46,245 | .23 |
Class T | 23,034 | .26 |
Class B | 3,002 | .30 |
Class C | 20,199 | .25 |
Institutional Class | 5,742 | .17 |
| $ 98,222 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $926 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $75 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $3,394. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.25% | $ 20,277 |
Class T | 1.50% | 11,580 |
Class B | 2.00% | 1,812 |
Class C | 2.00% | 9,487 |
Institutional Class | 1.00% | 1,508 |
|
| $ 44,664 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions - continued
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $553 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $9.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 83,047 | $ 223,873 |
Class T | - | 71,100 |
Class C | - | 8,906 |
Institutional Class | 29,205 | 41,786 |
Total | $ 112,252 | $ 345,665 |
From net realized gain |
|
|
Class A | $ 89,124 | $ - |
Class T | 39,363 | - |
Institutional Class | 14,438 | - |
Total | $ 142,925 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Class A |
|
|
|
|
Shares sold | 262,251 | 661,325 | $ 5,187,213 | $ 11,066,745 |
Reinvestment of distributions | 8,091 | 14,139 | 155,015 | 202,243 |
Shares redeemed | (244,901) | (619,275) | (4,815,572) | (10,353,339) |
Net increase (decrease) | 25,441 | 56,189 | $ 526,656 | $ 915,649 |
Class T |
|
|
|
|
Shares sold | 79,451 | 183,578 | $ 1,565,739 | $ 3,054,837 |
Reinvestment of distributions | 2,020 | 4,868 | 38,408 | 69,164 |
Shares redeemed | (92,255) | (175,709) | (1,782,781) | (2,895,363) |
Net increase (decrease) | (10,784) | 12,737 | $ (178,634) | $ 228,638 |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class B |
|
|
|
|
Shares sold | 2,813 | 16,969 | $ 54,581 | $ 251,841 |
Shares redeemed | (25,273) | (83,730) | (479,924) | (1,299,094) |
Net increase (decrease) | (22,460) | (66,761) | $ (425,343) | $ (1,047,253) |
Class C |
|
|
|
|
Shares sold | 174,157 | 286,749 | $ 3,318,509 | $ 4,683,936 |
Reinvestment of distributions | - | 588 | - | 8,189 |
Shares redeemed | (79,014) | (182,473) | (1,481,175) | (2,936,174) |
Net increase (decrease) | 95,143 | 104,864 | $ 1,837,334 | $ 1,755,951 |
Institutional Class |
|
|
|
|
Shares sold | 108,550 | 121,561 | $ 2,176,591 | $ 2,027,800 |
Reinvestment of distributions | 1,763 | 2,173 | 34,039 | 31,289 |
Shares redeemed | (74,419) | (75,216) | (1,469,738) | (1,227,013) |
Net increase (decrease) | 35,894 | 48,518 | $ 740,892 | $ 832,076 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
FAVI-USAN-0614 1.800652.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
High Income Advantage
Fund - Class A, Class T, Class B and Class C
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.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.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.20 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.69 | $ 5.16 |
Class T | 1.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.00 | $ 5.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.74 | $ 5.11 |
Class B | 1.75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,041.80 | $ 8.86 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.12 | $ 8.75 |
Class C | 1.78% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,041.40 | $ 9.01 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.97 | $ 8.90 |
Institutional Class | .79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.40 | $ 4.01 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.88 | $ 3.96 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Holdings as of April 30, 2014 | ||
(by issuer, excluding cash equivalents) | % of fund's | % of fund's net assets |
GMAC LLC | 2.7 | 3.0 |
International Lease Finance Corp. | 2.6 | 2.6 |
Energy Future Intermediate Holding Co. LLC/Energy Future Intermediate Holding Finance, Inc. | 2.5 | 2.6 |
HCA Holdings, Inc. | 2.3 | 0.8 |
Citigroup, Inc. | 2.1 | 1.8 |
| 12.2 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Diversified Financial Services | 10.0 | 9.1 |
Telecommunications | 10.0 | 10.4 |
Technology | 7.9 | 6.5 |
Healthcare | 7.7 | 7.8 |
Energy | 7.5 | 8.6 |
Quality Diversification (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
![]() | BBB 1.2% |
| ![]() | BBB 1.0% |
| ||
![]() | BB 24.8% |
| ![]() | BB 19.2% |
| ||
![]() | B 36.0% |
| ![]() | B 39.5% |
| ||
![]() | CCC,CC,C 17.0% |
| ![]() | CCC,CC,C 16.4% |
| ||
![]() | D 0.0% |
| ![]() | D 0.1% |
| ||
![]() | Not Rated 1.3% |
| ![]() | Not Rated 2.2% |
| ||
![]() | Equities 16.8% |
| ![]() | Equities 15.4% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014* | As of October 31, 2013** | ||||||
![]() | Nonconvertible |
| ![]() | Nonconvertible |
| ||
![]() | Convertible Bonds, Preferred Stocks 1.0% |
| ![]() | Convertible Bonds, Preferred Stocks 2.2% |
| ||
![]() | Common Stocks 15.8% |
| ![]() | Common Stocks 13.5% |
| ||
![]() | Bank Loan |
| ![]() | Bank Loan |
| ||
![]() | Other Investments 2.8% |
| ![]() | Other Investments 2.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 18.1% |
| ** Foreign investments | 14.3% |
|
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 69.0% | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Convertible Bonds - 0.0% | ||||
Broadcasting - 0.0% | ||||
Mood Media Corp. 10% 10/31/15 (g) | $ 38 | $ 33 | ||
Nonconvertible Bonds - 69.0% | ||||
Aerospace - 0.3% | ||||
GenCorp, Inc. 7.125% 3/15/21 | 525 | 570 | ||
Spirit Aerosystems, Inc. 5.25% 3/15/22 (g) | 2,230 | 2,261 | ||
TransDigm, Inc. 7.5% 7/15/21 | 3,755 | 4,131 | ||
| 6,962 | |||
Air Transportation - 0.3% | ||||
Continental Airlines, Inc.: | ||||
pass-thru trust certificates 6.903% 4/19/22 | 951 | 1,030 | ||
6.125% 4/29/18 (g) | 670 | 714 | ||
9.25% 5/10/17 | 1,185 | 1,339 | ||
United Air Lines, Inc. pass-thru trust certificates 9.75% 1/15/17 | 2,116 | 2,433 | ||
| 5,516 | |||
Automotive - 1.9% | ||||
Affinia Group, Inc. 7.75% 5/1/21 | 405 | 433 | ||
American Axle & Manufacturing, Inc. 5.125% 2/15/19 | 750 | 786 | ||
Chassix, Inc. 9.25% 8/1/18 (g) | 765 | 829 | ||
Dana Holding Corp.: | ||||
5.375% 9/15/21 | 1,450 | 1,497 | ||
6% 9/15/23 | 1,450 | 1,526 | ||
General Motors Acceptance Corp. 8% 11/1/31 | 4,835 | 5,935 | ||
General Motors Corp.: | ||||
6.75% 5/1/28 (d) | 547 | 0 | ||
7.125% 7/15/49 (d) | 1,583 | 0 | ||
7.2% 1/15/11 (d) | 3,997 | 0 | ||
7.4% 9/1/25 (d) | 273 | 0 | ||
7.7% 4/15/16 (d) | 980 | 0 | ||
8.25% 7/15/23 (d) | 7,625 | 0 | ||
8.375% 7/15/33 (d) | 23,416 | 0 | ||
General Motors Financial Co., Inc.: | ||||
4.25% 5/15/23 | 1,000 | 981 | ||
4.75% 8/15/17 | 5,395 | 5,773 | ||
6.75% 6/1/18 | 10,220 | 11,625 | ||
LKQ Corp. 4.75% 5/15/23 | 430 | 413 | ||
Schaeffler Finance BV 4.75% 5/15/21 (g) | 1,930 | 1,981 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Automotive - continued | ||||
Schaeffler Holding Finance BV 6.875% 8/15/18 pay-in-kind (g)(j) | $ 2,550 | $ 2,706 | ||
Tenneco, Inc. 6.875% 12/15/20 | 3,362 | 3,681 | ||
| 38,166 | |||
Banks & Thrifts - 3.7% | ||||
Ally Financial, Inc.: | ||||
3.5% 1/27/19 | 3,485 | 3,511 | ||
4.75% 9/10/18 | 3,970 | 4,208 | ||
8% 3/15/20 | 4,150 | 5,016 | ||
GMAC LLC: | ||||
8% 12/31/18 | 25,964 | 30,964 | ||
8% 11/1/31 | 19,887 | 24,461 | ||
Royal Bank of Scotland Group PLC 6% 12/19/23 | 6,785 | 7,088 | ||
Washington Mutual Bank 5.5% 1/15/49 (d) | 10,000 | 1 | ||
| 75,249 | |||
Broadcasting - 0.8% | ||||
AMC Networks, Inc. 7.75% 7/15/21 | 500 | 560 | ||
Clear Channel Communications, Inc.: | ||||
5.5% 9/15/14 | 6,735 | 6,802 | ||
5.5% 12/15/16 | 3,698 | 3,624 | ||
Sirius XM Radio, Inc. 5.75% 8/1/21 (g) | 5,525 | 5,663 | ||
| 16,649 | |||
Building Materials - 0.7% | ||||
American Builders & Contractors Supply Co., Inc. 5.625% 4/15/21 (g) | 595 | 616 | ||
CEMEX Finance LLC 6% 4/1/24 (g) | 2,795 | 2,804 | ||
CEMEX S.A.B. de CV 5.2336% 9/30/15 (g)(j) | 4,305 | 4,429 | ||
Nortek, Inc. 8.5% 4/15/21 | 1,520 | 1,676 | ||
USG Corp.: | ||||
5.875% 11/1/21 (g) | 430 | 457 | ||
6.3% 11/15/16 | 275 | 297 | ||
7.875% 3/30/20 (g) | 1,390 | 1,550 | ||
9.75% 1/15/18 | 1,585 | 1,911 | ||
| 13,740 | |||
Cable TV - 3.9% | ||||
Altice S.A. 7.75% 5/15/22 (g)(i) | 7,070 | 7,370 | ||
CCO Holdings LLC/CCO Holdings Capital Corp.: | ||||
5.125% 2/15/23 | 2,550 | 2,489 | ||
5.25% 3/15/21 | 2,245 | 2,287 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Cable TV - continued | ||||
CCO Holdings LLC/CCO Holdings Capital Corp.: - continued | ||||
5.75% 9/1/23 | $ 1,545 | $ 1,559 | ||
5.75% 1/15/24 | 6,890 | 6,950 | ||
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (g) | 535 | 560 | ||
Cequel Communications Holdings I LLC/Cequel Capital Corp. 5.125% 12/15/21 (g) | 5,495 | 5,358 | ||
DISH DBS Corp.: | ||||
5% 3/15/23 | 9,555 | 9,746 | ||
5.875% 7/15/22 | 4,240 | 4,574 | ||
6.75% 6/1/21 | 5,260 | 5,944 | ||
Lynx I Corp. 5.375% 4/15/21 (g) | 1,260 | 1,292 | ||
Lynx II Corp. 6.375% 4/15/23 (g) | 710 | 746 | ||
Numericable Group SA: | ||||
4.875% 5/15/19 (g)(i) | 7,890 | 7,969 | ||
6% 5/15/22 (g)(i) | 11,430 | 11,701 | ||
6.25% 5/15/24 (g)(i) | 1,150 | 1,177 | ||
RCN Telecom Services LLC/RCN Capital Corp. 8.5% 8/15/20 (g) | 1,245 | 1,320 | ||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH: | ||||
5.5% 1/15/23 (g) | 2,145 | 2,166 | ||
7.5% 3/15/19 (g) | 705 | 760 | ||
UPCB Finance III Ltd. 6.625% 7/1/20 (g) | 3,060 | 3,267 | ||
UPCB Finance VI Ltd. 6.875% 1/15/22 (g) | 1,900 | 2,071 | ||
| 79,306 | |||
Capital Goods - 0.2% | ||||
Briggs & Stratton Corp. 6.875% 12/15/20 | 1,285 | 1,426 | ||
Shale-Inland Holdings LLC/Shale-Inland Finance Corp. 8.75% 11/15/19 (g) | 1,610 | 1,658 | ||
| 3,084 | |||
Chemicals - 1.1% | ||||
Hexion U.S. Finance Corp. 6.625% 4/15/20 | 4,605 | 4,783 | ||
LSB Industries, Inc. 7.75% 8/1/19 (g) | 705 | 754 | ||
Orion Engineered Carbons Finance & Co. SCA 9.25% 8/1/19 pay-in-kind (g)(j) | 1,630 | 1,701 | ||
PolyOne Corp. 5.25% 3/15/23 | 2,215 | 2,237 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Chemicals - continued | ||||
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. 8.75% 2/1/19 | $ 11,535 | $ 12,285 | ||
U.S. Coatings Acquisition, Inc./Flash Dutch 2 BV 7.375% 5/1/21 (g) | 960 | 1,054 | ||
| 22,814 | |||
Consumer Products - 0.8% | ||||
First Quality Finance Co., Inc. 4.625% 5/15/21 (g) | 490 | 463 | ||
Prestige Brands, Inc.: | ||||
5.375% 12/15/21 (g) | 2,875 | 2,947 | ||
8.125% 2/1/20 | 335 | 375 | ||
Revlon Consumer Products Corp. 5.75% 2/15/21 | 10,540 | 10,619 | ||
Spectrum Brands Holdings, Inc.: | ||||
6.375% 11/15/20 | 565 | 613 | ||
6.625% 11/15/22 | 670 | 732 | ||
| 15,749 | |||
Containers - 3.0% | ||||
ARD Finance SA 11.125% 6/1/18 pay-in-kind (g)(j) | 7,119 | 7,500 | ||
Ardagh Packaging Finance PLC: | ||||
7.375% 10/15/17 (g) | 846 | 897 | ||
9.125% 10/15/20 (g) | 3,369 | 3,748 | ||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | ||||
6.25% 1/31/19 (g) | 1,165 | 1,215 | ||
6.75% 1/31/21 (g) | 1,350 | 1,407 | ||
7% 11/15/20 (g) | 697 | 727 | ||
9.125% 10/15/20 (g) | 1,045 | 1,157 | ||
Beverage Packaging Holdings II SA (Luxembourg) 6% 6/15/17 (g) | 1,255 | 1,293 | ||
BOE Intermediate Holding Corp. 9.75% 11/1/17 pay-in-kind (g)(j) | 617 | 648 | ||
Consolidated Container Co. LLC/Consolidated Container Capital, Inc. 10.125% 7/15/20 (g) | 1,465 | 1,524 | ||
Graphic Packaging International, Inc. 4.75% 4/15/21 | 615 | 612 | ||
Pretium Packaging LLC/Pretium Finance, Inc. 11.5% 4/1/16 | 3,400 | 3,634 | ||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | ||||
5.75% 10/15/20 | 10,505 | 10,925 | ||
6.875% 2/15/21 | 7,339 | 7,899 | ||
7.875% 8/15/19 | 8,387 | 9,205 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Containers - continued | ||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: - continued | ||||
8.25% 2/15/21 | $ 6,144 | $ 6,643 | ||
Sealed Air Corp. 6.5% 12/1/20 (g) | 1,730 | 1,912 | ||
Tekni-Plex, Inc. 9.75% 6/1/19 (g) | 1,332 | 1,508 | ||
| 62,454 | |||
Diversified Financial Services - 6.6% | ||||
Aircastle Ltd. 4.625% 12/15/18 | 1,625 | 1,664 | ||
CIT Group, Inc.: | ||||
3.875% 2/19/19 | 2,570 | 2,599 | ||
5% 8/15/22 | 3,195 | 3,267 | ||
5% 8/1/23 | 8,460 | 8,502 | ||
5.375% 5/15/20 | 4,400 | 4,697 | ||
5.5% 2/15/19 (g) | 8,075 | 8,701 | ||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
3.5% 3/15/17 (g) | 2,285 | 2,302 | ||
4.875% 3/15/19 (g) | 3,930 | 3,984 | ||
5.875% 2/1/22 (g) | 4,690 | 4,760 | ||
6% 8/1/20 (g) | 3,840 | 4,051 | ||
International Lease Finance Corp.: | ||||
3.875% 4/15/18 | 7,210 | 7,318 | ||
5.65% 6/1/14 | 351 | 352 | ||
5.75% 5/15/16 | 6,040 | 6,501 | ||
5.875% 8/15/22 | 7,625 | 8,044 | ||
7.125% 9/1/18 (g) | 10,309 | 11,958 | ||
8.25% 12/15/20 | 3,945 | 4,759 | ||
8.625% 1/15/22 | 11,305 | 13,849 | ||
SLM Corp.: | ||||
4.875% 6/17/19 | 9,130 | 9,393 | ||
5.5% 1/15/19 | 3,545 | 3,728 | ||
5.5% 1/25/23 | 2,245 | 2,206 | ||
6.125% 3/25/24 | 3,835 | 3,821 | ||
8% 3/25/20 | 9,700 | 11,204 | ||
8.45% 6/15/18 | 4,905 | 5,782 | ||
| 133,442 | |||
Diversified Media - 1.3% | ||||
Clear Channel Worldwide Holdings, Inc.: | ||||
6.5% 11/15/22 | 1,225 | 1,305 | ||
6.5% 11/15/22 | 3,315 | 3,547 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Diversified Media - continued | ||||
Clear Channel Worldwide Holdings, Inc.: - continued | ||||
7.625% 3/15/20 | $ 900 | $ 963 | ||
7.625% 3/15/20 | 4,400 | 4,741 | ||
Darling Escrow Corp. 5.375% 1/15/22 (g) | 1,280 | 1,315 | ||
Lamar Media Corp. 5.375% 1/15/24 (g) | 1,080 | 1,119 | ||
Liberty Media Corp.: | ||||
8.25% 2/1/30 | 469 | 514 | ||
8.5% 7/15/29 | 529 | 590 | ||
MDC Partners, Inc. 6.75% 4/1/20 (g) | 440 | 465 | ||
National CineMedia LLC: | ||||
6% 4/15/22 | 4,035 | 4,237 | ||
7.875% 7/15/21 | 2,050 | 2,260 | ||
Nielsen Finance LLC/Nielsen Finance Co. 7.75% 10/15/18 | 4,395 | 4,675 | ||
WMG Acquisition Corp.: | ||||
5.625% 4/15/22 (g) | 480 | 486 | ||
6% 1/15/21 (g) | 667 | 699 | ||
| 26,916 | |||
Electric Utilities - 4.2% | ||||
Calpine Corp.: | ||||
6% 1/15/22 (g) | 1,885 | 2,003 | ||
7.875% 1/15/23 (g) | 4,205 | 4,710 | ||
Energy Future Intermediate Holding Co. LLC/Energy Future Intermediate Holding Finance, Inc.: | ||||
10% 12/1/20 | 6,332 | 6,704 | ||
10% 12/1/20 (g) | 8,903 | 9,426 | ||
11% 10/1/21 | 6,237 | 7,141 | ||
11.25% 12/1/18 pay-in-kind (g)(j) | 927 | 866 | ||
12% 3/1/22 (g) | 22,140 | 26,347 | ||
InterGen NV 7% 6/30/23 (g) | 3,940 | 4,137 | ||
Mirant Americas Generation LLC 9.125% 5/1/31 | 690 | 681 | ||
NRG Energy, Inc. 6.625% 3/15/23 | 7,020 | 7,336 | ||
Puget Energy, Inc.: | ||||
6% 9/1/21 | 3,305 | 3,863 | ||
6.5% 12/15/20 | 1,935 | 2,299 | ||
The AES Corp.: | ||||
4.875% 5/15/23 | 725 | 694 | ||
5.5% 3/15/24 | 1,305 | 1,305 | ||
7.375% 7/1/21 | 2,400 | 2,748 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Electric Utilities - continued | ||||
TXU Corp.: | ||||
5.55% 11/15/14 | $ 7,757 | $ 3,258 | ||
6.5% 11/15/24 | 4,961 | 2,084 | ||
6.55% 11/15/34 | 4,295 | 1,804 | ||
| 87,406 | |||
Energy - 5.4% | ||||
Access Midstream Partners LP/ACMP Finance Corp.: | ||||
4.875% 5/15/23 | 2,720 | 2,754 | ||
4.875% 3/15/24 | 1,300 | 1,294 | ||
AmeriGas Finance LLC/AmeriGas Finance Corp.: | ||||
6.75% 5/20/20 | 1,260 | 1,370 | ||
7% 5/20/22 | 2,700 | 2,970 | ||
Antero Resources Corp. 5.125% 12/1/22 (g)(i) | 3,765 | 3,798 | ||
Antero Resources Finance Corp. 5.375% 11/1/21 (g) | 2,500 | 2,556 | ||
Atlas Pipeline Partners LP/Atlas Pipeline Finance Corp. 5.875% 8/1/23 | 1,885 | 1,861 | ||
Chesapeake Energy Corp.: | ||||
4.875% 4/15/22 | 1,890 | 1,892 | ||
5.375% 6/15/21 | 3,665 | 3,839 | ||
5.75% 3/15/23 | 2,170 | 2,306 | ||
6.125% 2/15/21 | 3,615 | 3,958 | ||
6.875% 11/15/20 | 177 | 201 | ||
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: | ||||
6.125% 3/1/22 (g) | 1,520 | 1,588 | ||
7.75% 4/1/19 | 3,095 | 3,350 | ||
Denbury Resources, Inc. 4.625% 7/15/23 | 4,395 | 4,181 | ||
Diamondback Energy, Inc. 7.625% 10/1/21 (g) | 1,545 | 1,672 | ||
Edgen Murray Corp. 8.75% 11/1/20 (g) | 1,200 | 1,386 | ||
El Paso Energy Corp. 7.75% 1/15/32 | 1,399 | 1,512 | ||
EP Energy LLC/Everest Acquisition Finance, Inc. 7.75% 9/1/22 | 1,440 | 1,604 | ||
Everest Acquisition LLC/Everest Acquisition Finance, Inc. 9.375% 5/1/20 | 3,975 | 4,581 | ||
Exterran Partners LP/EXLP Finance Corp. 6% 10/1/22 (g) | 2,280 | 2,269 | ||
Ferrellgas LP/Ferrellgas Finance Corp.: | ||||
6.5% 5/1/21 | 2,435 | 2,557 | ||
6.75% 1/15/22 (g) | 1,095 | 1,152 | ||
Forbes Energy Services Ltd. 9% 6/15/19 | 3,470 | 3,548 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Energy - continued | ||||
Forum Energy Technologies, Inc. 6.25% 10/1/21 (g) | $ 1,090 | $ 1,158 | ||
Genesis Energy LP/Genesis Energy Finance Corp. 5.75% 2/15/21 | 845 | 879 | ||
Gulfmark Offshore, Inc. 6.375% 3/15/22 | 560 | 581 | ||
Kinder Morgan Holding Co. LLC 5% 2/15/21 (g) | 1,695 | 1,695 | ||
Kodiak Oil & Gas Corp.: | ||||
5.5% 1/15/21 | 790 | 814 | ||
8.125% 12/1/19 | 2,010 | 2,231 | ||
Laredo Petroleum Holdings, Inc. 5.625% 1/15/22 (g) | 2,995 | 3,055 | ||
Markwest Energy Partners LP/Markwest Energy Finance Corp. 5.5% 2/15/23 | 995 | 1,032 | ||
Offshore Group Investment Ltd.: | ||||
7.125% 4/1/23 | 2,445 | 2,408 | ||
7.5% 11/1/19 | 11,570 | 12,033 | ||
Pacific Drilling SA 5.375% 6/1/20 (g) | 540 | 525 | ||
Pacific Drilling V Ltd. 7.25% 12/1/17 (g) | 1,985 | 2,124 | ||
Precision Drilling Corp.: | ||||
6.5% 12/15/21 | 495 | 536 | ||
6.625% 11/15/20 | 2,205 | 2,370 | ||
QR Energy LP/QRE Finance Corp. 9.25% 8/1/20 | 1,080 | 1,156 | ||
SemGroup Corp. 7.5% 6/15/21 | 1,625 | 1,763 | ||
Star Gas Partners LP/Star Gas Finance Co. 8.875% 12/1/17 | 1,324 | 1,403 | ||
Summit Midstream Holdings LLC 7.5% 7/1/21 | 810 | 873 | ||
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp. 7.375% 2/1/20 (g) | 845 | 896 | ||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 6.375% 8/1/22 | 908 | 972 | ||
Tesoro Corp. 5.125% 4/1/24 | 1,915 | 1,905 | ||
Tesoro Logistics LP/Tesoro Logistics Finance Corp. 5.875% 10/1/20 | 425 | 445 | ||
Ultra Petroleum Corp. 5.75% 12/15/18 (g) | 2,090 | 2,200 | ||
Unit Corp. 6.625% 5/15/21 | 7,190 | 7,621 | ||
Western Refining, Inc. 6.25% 4/1/21 | 905 | 941 | ||
| 109,815 | |||
Entertainment/Film - 0.8% | ||||
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp.: | ||||
5.25% 2/15/22 (g) | 470 | 482 | ||
5.625% 2/15/24 (g) | 510 | 524 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Entertainment/Film - continued | ||||
Cinemark U.S.A., Inc.: | ||||
4.875% 6/1/23 | $ 2,110 | $ 2,047 | ||
5.125% 12/15/22 | 570 | 570 | ||
7.375% 6/15/21 | 1,085 | 1,204 | ||
Lions Gate Entertainment Corp. 5.25% 8/1/18 (g) | 6,095 | 6,125 | ||
Livent, Inc. yankee 9.375% 10/15/04 (d) | 11,100 | 0 | ||
NAI Entertainment Holdings LLC/NAI Entertainment Finance Corp. 5% 8/1/18 (g) | 1,425 | 1,486 | ||
Regal Entertainment Group: | ||||
5.75% 6/15/23 | 3,725 | 3,800 | ||
5.75% 2/1/25 | 555 | 549 | ||
| 16,787 | |||
Environmental - 0.3% | ||||
Clean Harbors, Inc. 5.125% 6/1/21 | 1,180 | 1,193 | ||
Covanta Holding Corp.: | ||||
5.875% 3/1/24 | 1,530 | 1,559 | ||
6.375% 10/1/22 | 1,355 | 1,450 | ||
7.25% 12/1/20 | 1,094 | 1,199 | ||
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (g) | 350 | 371 | ||
Tervita Corp.: | ||||
9.75% 11/1/19 (g) | 210 | 190 | ||
10.875% 2/15/18 (g) | 170 | 163 | ||
| 6,125 | |||
Food & Drug Retail - 1.8% | ||||
BI-LO LLC/BI-LO Finance Corp. 9.25% 2/15/19 (g) | 1,700 | 1,849 | ||
JBS Investments GmbH: | ||||
7.25% 4/3/24 (g) | 1,905 | 1,918 | ||
7.75% 10/28/20 (g) | 4,855 | 5,165 | ||
Nutritional Sourcing Corp. 10.125% 8/1/09 (d) | 7,424 | 0 | ||
Pinnacle Merger Sub, Inc. 9.5% 10/1/23 (g) | 1,375 | 1,519 | ||
Rite Aid Corp.: | ||||
6.75% 6/15/21 | 11,895 | 12,936 | ||
6.875% 12/15/28 (g) | 5,785 | 5,799 | ||
7.7% 2/15/27 | 6,400 | 7,040 | ||
Tops Markets LLC 8.875% 12/15/17 | 1,095 | 1,194 | ||
| 37,420 | |||
Food/Beverage/Tobacco - 1.2% | ||||
ESAL GmbH 6.25% 2/5/23 (g) | 4,565 | 4,360 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Food/Beverage/Tobacco - continued | ||||
FAGE Dairy Industry SA/FAGE U.S.A. Dairy Industry, Inc. 9.875% 2/1/20 (g) | $ 1,765 | $ 1,906 | ||
Hawk Acquisition Sub, Inc. 4.25% 10/15/20 (g) | 12,790 | 12,605 | ||
Post Holdings, Inc. 6.75% 12/1/21 (g) | 5,380 | 5,636 | ||
| 24,507 | |||
Gaming - 2.3% | ||||
Caesars Entertainment Operating Co., Inc. 8.5% 2/15/20 | 3,125 | 2,695 | ||
Caesars Growth Propeties Holdings LLC/Caesars Growth Properties Finance, Inc. 9.375% 5/1/22 (g) | 3,640 | 3,631 | ||
Caesars Operating Escrow LLC/Caesars Escrow Corp. 9% 2/15/20 | 1,445 | 1,261 | ||
GLP Capital LP/GLP Financing II, Inc.: | ||||
4.375% 11/1/18 (g) | 820 | 849 | ||
4.875% 11/1/20 (g) | 2,140 | 2,210 | ||
5.375% 11/1/23 (g) | 1,700 | 1,751 | ||
Golden Nugget Escrow, Inc. 8.5% 12/1/21 (g) | 10,735 | 11,030 | ||
Graton Economic Development Authority 9.625% 9/1/19 (g) | 1,730 | 1,977 | ||
MCE Finance Ltd. 5% 2/15/21 (g) | 2,100 | 2,095 | ||
MGM Mirage, Inc.: | ||||
6.875% 4/1/16 | 820 | 895 | ||
8.625% 2/1/19 | 5,000 | 5,969 | ||
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc.: | ||||
8% 10/1/20 (g) | 1,140 | 1,186 | ||
11% 10/1/21 (g) | 1,575 | 1,638 | ||
Pinnacle Entertainment, Inc. 7.75% 4/1/22 | 700 | 760 | ||
Studio City Finance Ltd. 8.5% 12/1/20 (g) | 8,920 | 9,946 | ||
| 47,893 | |||
Healthcare - 6.0% | ||||
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp.: | ||||
6% 10/15/21 | 685 | 719 | ||
7.75% 2/15/19 | 4,441 | 4,763 | ||
Catamaran Corp. 4.75% 3/15/21 (Reg. S) | 1,965 | 1,980 | ||
DaVita HealthCare Partners, Inc. 5.75% 8/15/22 | 1,970 | 2,086 | ||
Forest Laboratories, Inc. 4.375% 2/1/19 (g) | 3,700 | 3,936 | ||
Grifols Worldwide Operations Ltd. 5.25% 4/1/22 (g) | 2,915 | 2,959 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Healthcare - continued | ||||
HCA Holdings, Inc.: | ||||
4.75% 5/1/23 | $ 4,475 | $ 4,397 | ||
5% 3/15/24 | 3,060 | 3,037 | ||
5.875% 3/15/22 | 8,635 | 9,261 | ||
6.25% 2/15/21 | 2,265 | 2,392 | ||
6.5% 2/15/20 | 7,640 | 8,519 | ||
7.5% 2/15/22 | 5,095 | 5,811 | ||
7.75% 5/15/21 | 11,679 | 12,832 | ||
HealthSouth Corp. 5.75% 11/1/24 | 1,275 | 1,329 | ||
IMS Health, Inc. 6% 11/1/20 (g) | 1,175 | 1,240 | ||
Legend Acquisition Sub, Inc. 10.75% 8/15/20 (g) | 3,260 | 196 | ||
Omega Healthcare Investors, Inc.: | ||||
5.875% 3/15/24 | 410 | 428 | ||
6.75% 10/15/22 | 2,631 | 2,861 | ||
Sabra Health Care LP/Sabra Capital Corp. 5.5% 2/1/21 | 1,080 | 1,131 | ||
Salix Pharmaceuticals Ltd. 6% 1/15/21 (g) | 620 | 665 | ||
Service Corp. International 5.375% 1/15/22 | 815 | 831 | ||
Tenet Healthcare Corp.: | ||||
4.375% 10/1/21 | 8,990 | 8,619 | ||
4.5% 4/1/21 | 1,670 | 1,621 | ||
4.75% 6/1/20 | 1,665 | 1,673 | ||
5% 3/1/19 (g) | 1,810 | 1,815 | ||
6% 10/1/20 (g) | 1,890 | 1,985 | ||
6.75% 2/1/20 | 1,800 | 1,890 | ||
8.125% 4/1/22 | 7,570 | 8,403 | ||
Valeant Pharmaceuticals International: | ||||
5.625% 12/1/21 (g) | 1,395 | 1,451 | ||
6.75% 8/15/18 (g) | 5,800 | 6,279 | ||
7.25% 7/15/22 (g) | 315 | 343 | ||
7.5% 7/15/21 (g) | 9,930 | 11,072 | ||
VPI Escrow Corp. 6.375% 10/15/20 (g) | 2,380 | 2,559 | ||
VWR Funding, Inc. 7.25% 9/15/17 | 4,375 | 4,692 | ||
| 123,775 | |||
Homebuilders/Real Estate - 1.1% | ||||
Beazer Homes U.S.A., Inc. 7.25% 2/1/23 | 1,260 | 1,298 | ||
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 6.125% 7/1/22 (g) | 1,265 | 1,293 | ||
Brookfield Residential Properties, Inc. 6.5% 12/15/20 (g) | 1,000 | 1,053 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Homebuilders/Real Estate - continued | ||||
CBRE Group, Inc.: | ||||
5% 3/15/23 | $ 4,475 | $ 4,509 | ||
6.625% 10/15/20 | 1,214 | 1,290 | ||
Howard Hughes Corp. 6.875% 10/1/21 (g) | 3,530 | 3,795 | ||
Kennedy-Wilson, Inc. 5.875% 4/1/24 | 1,395 | 1,393 | ||
Realogy Group LLC / Realogy Co.-Issuer Corp. 4.5% 4/15/19 (g) | 3,085 | 3,100 | ||
William Lyon Homes, Inc. 8.5% 11/15/20 | 2,170 | 2,420 | ||
Woodside Homes Co. LLC/Woodside Homes Finance, Inc. 6.75% 12/15/21 (g) | 2,215 | 2,259 | ||
| 22,410 | |||
Hotels - 0.5% | ||||
Choice Hotels International, Inc. 5.75% 7/1/22 | 615 | 650 | ||
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 5.625% 10/15/21 (g) | 7,555 | 7,876 | ||
Playa Resorts Holding BV 8% 8/15/20 (g) | 695 | 751 | ||
| 9,277 | |||
Insurance - 0.1% | ||||
Hockey Merger Sub 2, Inc. 7.875% 10/1/21 (g) | 2,765 | 2,952 | ||
Leisure - 0.1% | ||||
Royal Caribbean Cruises Ltd. 5.25% 11/15/22 | 1,000 | 1,020 | ||
Metals/Mining - 0.7% | ||||
Alpha Natural Resources, Inc.: | ||||
6% 6/1/19 | 3,730 | 2,835 | ||
6.25% 6/1/21 | 4,245 | 3,131 | ||
9.75% 4/15/18 | 1,770 | 1,664 | ||
Bluescope Steel Ltd./Bluescope Steel Finance 7.125% 5/1/18 (g) | 415 | 446 | ||
Calcipar SA 6.875% 5/1/18 (g) | 1,070 | 1,132 | ||
FMG Resources (August 2006) Pty Ltd. 6% 4/1/17 (g) | 520 | 547 | ||
Prince Mineral Holding Corp. 11.5% 12/15/19 (g) | 655 | 735 | ||
Signode Industrial Group Lux SA/Signode Industrial Group U.S., Inc. 6.375% 5/1/22 (g) | 1,040 | 1,050 | ||
Walter Energy, Inc.: | ||||
9.5% 10/15/19 (g) | 1,885 | 1,918 | ||
11% 4/1/20 pay-in-kind (g)(j) | 1,545 | 1,360 | ||
| 14,818 | |||
Paper - 0.1% | ||||
Clearwater Paper Corp. 4.5% 2/1/23 | 2,045 | 1,979 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Publishing/Printing - 1.4% | ||||
Griffey Intermediate, Inc./Griffey Finance Sub LLC 7% 10/15/20 (g) | $ 4,610 | $ 4,126 | ||
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance 10% 4/1/21 (g) | 14,305 | 16,379 | ||
R.R. Donnelley & Sons Co.: | ||||
6% 4/1/24 | 960 | 967 | ||
6.5% 11/15/23 | 2,890 | 3,042 | ||
Time, Inc. 5.75% 4/15/22 (g) | 4,260 | 4,249 | ||
| 28,763 | |||
Railroad - 0.2% | ||||
Florida East Coast Holdings Corp. 6.75% 5/1/19 (g) | 1,090 | 1,120 | ||
Jurassic Holdings III, Inc. 6.875% 2/15/21 (Reg. S) (g) | 1,920 | 1,987 | ||
Ultrapetrol (Bahamas) Ltd. 8.875% 6/15/21 | 1,285 | 1,401 | ||
| 4,508 | |||
Restaurants - 0.4% | ||||
Landry's Acquisition Co. 9.375% 5/1/20 (g) | 4,040 | 4,454 | ||
Landry's Holdings II, Inc. 10.25% 1/1/18 (g) | 4,205 | 4,499 | ||
| 8,953 | |||
Services - 2.5% | ||||
Ahern Rentals, Inc. 9.5% 6/15/18 (g) | 470 | 523 | ||
APX Group, Inc.: | ||||
6.375% 12/1/19 | 8,560 | 8,710 | ||
8.75% 12/1/20 | 11,350 | 11,577 | ||
ARAMARK Corp. 5.75% 3/15/20 | 2,195 | 2,302 | ||
Audatex North America, Inc.: | ||||
6% 6/15/21 (g) | 8,190 | 8,784 | ||
6.125% 11/1/23 (g) | 590 | 631 | ||
Blueline Rent Finance Corp./Volvo 7% 2/1/19 (g) | 815 | 872 | ||
FTI Consulting, Inc. 6% 11/15/22 | 2,450 | 2,499 | ||
Garda World Security Corp.: | ||||
7.25% 11/15/21 (g) | 2,435 | 2,566 | ||
7.25% 11/15/21 (g) | 920 | 969 | ||
Hertz Corp.: | ||||
5.875% 10/15/20 | 990 | 1,049 | ||
6.25% 10/15/22 | 1,315 | 1,407 | ||
Laureate Education, Inc. 9.25% 9/1/19 (g) | 6,520 | 6,879 | ||
NES Rentals Holdings, Inc. 7.875% 5/1/18 (g) | 600 | 639 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Services - continued | ||||
TMS International Corp. 7.625% 10/15/21 (g) | $ 420 | $ 448 | ||
TransUnion Holding Co., Inc. 9.625% 6/15/18 pay-in-kind (j) | 1,255 | 1,322 | ||
| 51,177 | |||
Shipping - 1.1% | ||||
CEVA Group PLC: | ||||
7% 3/1/21 (g) | 630 | 647 | ||
9% 9/1/21 (g) | 575 | 591 | ||
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc. 8.125% 11/15/21 (g) | 3,070 | 3,200 | ||
Navios Maritime Holdings, Inc.: | ||||
7.375% 1/15/22 (g) | 7,940 | 8,019 | ||
8.125% 2/15/19 | 2,489 | 2,526 | ||
Navios South American Logistics, Inc./Navios Logistics Finance U.S., Inc. 7.25% 5/1/22 (g) | 2,020 | 2,026 | ||
Teekay Corp. 8.5% 1/15/20 | 195 | 225 | ||
TRAC Intermodal LLC/TRAC Intermodal Corp. 11% 8/15/19 | 1,475 | 1,687 | ||
Western Express, Inc. 12.5% 4/15/15 (g) | 6,070 | 4,537 | ||
| 23,458 | |||
Steel - 0.8% | ||||
JMC Steel Group, Inc. 8.25% 3/15/18 (g) | 7,870 | 7,949 | ||
Ryerson, Inc./Joseph T Ryerson & Son, Inc.: | ||||
9% 10/15/17 | 5,550 | 5,959 | ||
11.25% 10/15/18 | 1,855 | 2,082 | ||
| 15,990 | |||
Super Retail - 0.4% | ||||
Asbury Automotive Group, Inc. 8.375% 11/15/20 | 788 | 883 | ||
Claire's Stores, Inc. 7.75% 6/1/20 (g) | 470 | 321 | ||
CST Brands, Inc. 5% 5/1/23 | 525 | 520 | ||
JC Penney Corp., Inc.: | ||||
5.65% 6/1/20 | 2,375 | 1,906 | ||
5.75% 2/15/18 | 703 | 583 | ||
7.4% 4/1/37 | 775 | 577 | ||
Sally Holdings LLC 5.5% 11/1/23 | 925 | 941 | ||
Sonic Automotive, Inc.: | ||||
5% 5/15/23 | 315 | 309 | ||
7% 7/15/22 | 1,390 | 1,532 | ||
| 7,572 | |||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Technology - 4.3% | ||||
Activision Blizzard, Inc. 6.125% 9/15/23 (g) | $ 2,075 | $ 2,257 | ||
ADT Corp. 6.25% 10/15/21 (g) | 1,895 | 1,976 | ||
Ancestry.com, Inc. 9.625% 10/15/18 pay-in-kind (g)(j) | 3,500 | 3,666 | ||
Avaya, Inc.: | ||||
7% 4/1/19 (g) | 1,817 | 1,808 | ||
10.5% 3/1/21 (g) | 2,095 | 1,907 | ||
BMC Software Finance, Inc. 8.125% 7/15/21 (g) | 10,135 | 10,616 | ||
Boxer Parent Co., Inc. 9% 10/15/19 pay-in-kind (g)(j) | 3,215 | 3,151 | ||
Ceridian Corp. 8.875% 7/15/19 (g) | 1,755 | 1,999 | ||
Ceridian HCM Holding, Inc. 11% 3/15/21 (g) | 930 | 1,074 | ||
CommScope Holding Co., Inc. 6.625% 6/1/20 pay-in-kind (g)(j) | 920 | 987 | ||
Compiler Finance Sub, Inc. 7% 5/1/21 (g) | 1,610 | 1,626 | ||
Entegris, Inc. 6% 4/1/22 (g) | 635 | 643 | ||
First Data Corp.: | ||||
6.75% 11/1/20 (g) | 5,350 | 5,711 | ||
11.25% 1/15/21 | 4,820 | 5,507 | ||
11.75% 8/15/21 | 1,310 | 1,395 | ||
Infor Software Parent LLC/Infor Software Parent, Inc. 7.125% 5/1/21 pay-in-kind (g)(j) | 950 | 955 | ||
Lucent Technologies, Inc.: | ||||
6.45% 3/15/29 | 12,334 | 11,810 | ||
6.5% 1/15/28 | 5,415 | 5,198 | ||
Micron Technology, Inc. 5.875% 2/15/22 (g) | 1,520 | 1,604 | ||
Quad/Graphics, Inc. 7% 5/1/22 (g) | 2,275 | 2,275 | ||
Spansion LLC 11.25% 1/15/16 (d)(g) | 15,415 | 0 | ||
SunGard Data Systems, Inc. 6.625% 11/1/19 | 3,600 | 3,771 | ||
VeriSign, Inc. 4.625% 5/1/23 | 5,520 | 5,285 | ||
Viasystems, Inc. 7.875% 5/1/19 (g) | 2,945 | 3,136 | ||
WideOpenWest Finance LLC/WideOpenWest Capital Corp.: | ||||
10.25% 7/15/19 | 5,210 | 5,887 | ||
10.25% 7/15/19 (g) | 410 | 463 | ||
13.375% 10/15/19 | 2,840 | 3,337 | ||
| 88,044 | |||
Telecommunications - 8.7% | ||||
Alcatel-Lucent U.S.A., Inc.: | ||||
4.625% 7/1/17 (g) | 1,435 | 1,469 | ||
6.75% 11/15/20 (g) | 3,390 | 3,560 | ||
Altice Financing SA 6.5% 1/15/22 (g) | 895 | 938 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Telecommunications - continued | ||||
Altice Finco SA: | ||||
8.125% 1/15/24 (g) | $ 540 | $ 583 | ||
9.875% 12/15/20 (g) | 945 | 1,083 | ||
Broadview Networks Holdings, Inc. 10.5% 11/15/17 | 2,915 | 2,835 | ||
Citizens Communications Co. 7.875% 1/15/27 | 4,949 | 4,980 | ||
Clearwire Communications LLC/Clearwire Finance, Inc. 14.75% 12/1/16 (g) | 5,300 | 6,983 | ||
Columbus International, Inc. 7.375% 3/30/21 (g) | 5,560 | 5,810 | ||
Digicel Group Ltd.: | ||||
6% 4/15/21 (g) | 4,580 | 4,637 | ||
7% 2/15/20 (g) | 425 | 443 | ||
7.125% 4/1/22 (g) | 3,850 | 3,869 | ||
8.25% 9/1/17 (g) | 1,025 | 1,063 | ||
8.25% 9/30/20 (g) | 6,645 | 7,077 | ||
DigitalGlobe, Inc. 5.25% 2/1/21 | 695 | 678 | ||
Eileme 1 AB 14.25% 8/15/20 pay-in-kind (g)(j) | 4,027 | 4,188 | ||
Eileme 2 AB 11.625% 1/31/20 (g) | 2,605 | 3,113 | ||
Intelsat Jackson Holdings SA: | ||||
5.5% 8/1/23 (g) | 5,655 | 5,535 | ||
6.625% 12/15/22 (g) | 3,925 | 4,033 | ||
6.625% 12/15/22 (Reg. S) | 3,945 | 4,053 | ||
7.5% 4/1/21 | 5,730 | 6,282 | ||
Intelsat Luxembourg SA: | ||||
7.75% 6/1/21 | 8,204 | 8,553 | ||
8.125% 6/1/23 | 9,595 | 10,075 | ||
Level 3 Communications, Inc. 8.875% 6/1/19 | 695 | 763 | ||
Level 3 Financing, Inc.: | ||||
6.125% 1/15/21 (g) | 2,395 | 2,515 | ||
7% 6/1/20 | 2,365 | 2,554 | ||
NII Capital Corp. 7.625% 4/1/21 | 1,466 | 436 | ||
Pacnet Ltd. 9% 12/12/18 (g) | 200 | 214 | ||
Satelites Mexicanos SA de CV 9.5% 5/15/17 | 710 | 746 | ||
SBA Communications Corp. 5.625% 10/1/19 | 3,075 | 3,225 | ||
Sprint Capital Corp.: | ||||
6.9% 5/1/19 | 4,761 | 5,225 | ||
8.75% 3/15/32 | 5,730 | 6,410 | ||
Sprint Communications, Inc.: | ||||
6% 12/1/16 | 6,729 | 7,369 | ||
6% 11/15/22 | 17,894 | 18,028 | ||
9% 11/15/18 (g) | 5,500 | 6,703 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Telecommunications - continued | ||||
Sprint Corp.: | ||||
7.125% 6/15/24 (g) | $ 2,580 | $ 2,709 | ||
7.875% 9/15/23 (g) | 4,245 | 4,680 | ||
T-Mobile U.S.A., Inc.: | ||||
5.25% 9/1/18 | 1,565 | 1,649 | ||
6.25% 4/1/21 | 3,295 | 3,509 | ||
6.464% 4/28/19 | 705 | 747 | ||
6.542% 4/28/20 | 2,465 | 2,650 | ||
6.625% 4/1/23 | 4,925 | 5,270 | ||
6.633% 4/28/21 | 2,225 | 2,403 | ||
6.731% 4/28/22 | 1,645 | 1,775 | ||
6.836% 4/28/23 | 640 | 689 | ||
Wind Acquisition Finance SA: | ||||
7.25% 2/15/18 (g) | 2,581 | 2,717 | ||
7.375% 4/23/21 (g) | 3,770 | 3,883 | ||
| 178,709 | |||
Textiles & Apparel - 0.0% | ||||
SIWF Merger Sub, Inc./Springs Industries, Inc. 6.25% 6/1/21 (g) | 590 | 614 | ||
TOTAL NONCONVERTIBLE BONDS | 1,414,019 | |||
TOTAL CORPORATE BONDS (Cost $1,370,572) |
|
Common Stocks - 15.8% | |||
Shares |
| ||
Aerospace - 0.3% | |||
Triumph Group, Inc. | 85,000 | 5,509 | |
Air Transportation - 0.5% | |||
American Airlines Group, Inc. | 100,000 | 3,507 | |
Delta Air Lines, Inc. | 200,000 | 7,366 | |
| 10,873 | ||
Automotive - 0.8% | |||
Delphi Automotive PLC | 77,122 | 5,155 | |
General Motors Co. | 274,238 | 9,456 | |
General Motors Co.: | |||
warrants 7/10/16 (a) | 7,547 | 187 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
Automotive - continued | |||
General Motors Co.: - continued | |||
warrants 7/10/19 (a) | 7,547 | $ 129 | |
Motors Liquidation Co. GUC Trust (a) | 39,254 | 1,081 | |
| 16,008 | ||
Banks & Thrifts - 0.3% | |||
JPMorgan Chase & Co. | 100,000 | 5,598 | |
Washington Mutual, Inc. (a) | 505,500 | 0 | |
WMI Holdings Corp. (a) | 17,318 | 52 | |
| 5,650 | ||
Broadcasting - 0.6% | |||
Cumulus Media, Inc. Class A (a) | 550,600 | 3,529 | |
Gray Television, Inc. (a) | 494,070 | 5,558 | |
Sinclair Broadcast Group, Inc. Class A | 100,000 | 2,673 | |
| 11,760 | ||
Building Materials - 0.1% | |||
Gibraltar Industries, Inc. (a) | 141,340 | 2,414 | |
Cable TV - 0.3% | |||
Time Warner Cable, Inc. | 41,300 | 5,842 | |
Capital Goods - 0.1% | |||
Walter Energy, Inc. (f) | 250,000 | 1,800 | |
Chemicals - 0.6% | |||
Axiall Corp. | 100,000 | 4,660 | |
LyondellBasell Industries NV Class A | 84,795 | 7,844 | |
| 12,504 | ||
Consumer Products - 0.3% | |||
Whirlpool Corp. | 40,000 | 6,135 | |
Containers - 0.2% | |||
Graphic Packaging Holding Co. (a) | 417,874 | 4,287 | |
Diversified Financial Services - 0.7% | |||
Citigroup, Inc. | 116,564 | 5,585 | |
The Blackstone Group LP | 300,000 | 8,859 | |
| 14,444 | ||
Energy - 1.3% | |||
Apache Corp. | 12,471 | 1,082 | |
CVR Refining, LP | 247,000 | 5,911 | |
EP Energy Corp. | 141,500 | 2,749 | |
Oasis Petroleum, Inc. (a) | 125,000 | 5,814 | |
Ocean Rig UDW, Inc. (United States) (a) | 235,000 | 3,878 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
Energy - continued | |||
The Williams Companies, Inc. | 90,000 | $ 3,795 | |
Vantage Drilling Co. (a) | 2,000,000 | 3,340 | |
| 26,569 | ||
Food/Beverage/Tobacco - 0.7% | |||
Carlyle Group LP | 72,700 | 2,332 | |
Dean Foods Co. | 400,000 | 6,336 | |
Monster Beverage Corp. (a) | 100,000 | 6,696 | |
| 15,364 | ||
Gaming - 0.9% | |||
Gaming & Leisure Properties | 119,574 | 4,394 | |
Las Vegas Sands Corp. | 130,000 | 10,287 | |
PB Investor I LLC | 11,653 | 26 | |
Station Holdco LLC (a)(k)(m) | 1,531,479 | 3,415 | |
Station Holdco LLC: | |||
unit (a)(k)(m) | 3,411 | 1 | |
warrants 6/15/18 (a)(k)(m) | 96,849 | 17 | |
| 18,140 | ||
Healthcare - 1.2% | |||
Express Scripts Holding Co. (a) | 167,600 | 11,159 | |
Tenet Healthcare Corp. (a) | 163,675 | 7,378 | |
Universal Health Services, Inc. Class B | 85,000 | 6,952 | |
| 25,489 | ||
Homebuilders/Real Estate - 0.1% | |||
Realogy Holdings Corp. (a) | 46,400 | 1,951 | |
Hotels - 0.4% | |||
Extended Stay America, Inc. unit | 26,700 | 575 | |
Hyatt Hotels Corp. Class A (a) | 145,000 | 8,161 | |
| 8,736 | ||
Insurance - 0.3% | |||
H&R Block, Inc. | 200,000 | 5,684 | |
Leisure - 0.2% | |||
Town Sports International Holdings, Inc. | 564,202 | 3,955 | |
Metals/Mining - 0.5% | |||
Alpha Natural Resources, Inc. (a)(f) | 750,000 | 3,225 | |
AngloGold Ashanti Ltd. sponsored ADR | 87,174 | 1,578 | |
OCI Resources LP | 212,610 | 4,667 | |
| 9,470 | ||
Publishing/Printing - 0.0% | |||
Houghton Mifflin Harcourt Co. warrants 6/22/19 (a)(m) | 4,323 | 6 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
Restaurants - 1.0% | |||
Bloomin' Brands, Inc. (a) | 272,900 | $ 5,818 | |
Dunkin' Brands Group, Inc. | 171,900 | 7,823 | |
Yum! Brands, Inc. | 100,000 | 7,699 | |
| 21,340 | ||
Services - 1.1% | |||
ARAMARK Holdings Corp. | 128,900 | 3,634 | |
Hertz Global Holdings, Inc. (a) | 250,000 | 7,118 | |
KAR Auction Services, Inc. | 317,600 | 9,458 | |
WP Rocket Holdings, Inc. | 1,964,861 | 2,456 | |
| 22,666 | ||
Shipping - 0.3% | |||
Ship Finance International Ltd. (NY Shares) | 300,000 | 5,289 | |
Ultrapetrol (Bahamas) Ltd. (a) | 7,916 | 22 | |
| 5,311 | ||
Super Retail - 0.6% | |||
Dollar General Corp. (a) | 100,000 | 5,644 | |
Liberty Interactive Corp. Series A (a) | 250,000 | 7,265 | |
| 12,909 | ||
Technology - 2.1% | |||
CDW Corp. | 300,000 | 8,457 | |
Facebook, Inc. Class A (a) | 76,094 | 4,549 | |
NXP Semiconductors NV (a) | 125,000 | 7,453 | |
Skyworks Solutions, Inc. | 200,000 | 8,210 | |
SoftBank Corp. ADR | 150,000 | 5,580 | |
Spansion, Inc. Class A (a) | 3,593 | 64 | |
Xerox Corp. | 710,000 | 8,584 | |
| 42,897 | ||
Telecommunications - 0.3% | |||
Broadview Networks Holdings, Inc. (a) | 189,475 | 474 | |
Pendrell Corp. (a) | 37,472 | 62 | |
Verizon Communications, Inc. | 108,000 | 5,047 | |
| 5,583 | ||
Textiles & Apparel - 0.0% | |||
Arena Brands Holding Corp. Class B (a)(m) | 42,253 | 259 | |
TOTAL COMMON STOCKS (Cost $272,059) |
| ||
Nonconvertible Preferred Stocks - 1.0% | |||
Shares | Value (000s) | ||
Banks & Thrifts - 0.6% | |||
Ally Financial, Inc. 7.00% (g) | 11,491 | $ 11,380 | |
Diversified Financial Services - 0.4% | |||
GMAC Capital Trust I Series 2, 8.125% | 320,244 | 8,804 | |
Services - 0.0% | |||
WP Rocket Holdings, Inc. 15.00% (a) | 1,437,822 | 0 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $14,174) |
|
Bank Loan Obligations - 8.5% | ||||
| Principal Amount (000s) (e) |
| ||
Aerospace - 0.0% | ||||
TransDigm, Inc. Tranche C, term loan 3.75% 2/28/20 (j) | $ 868 | 865 | ||
Automotive - 0.0% | ||||
Tower Automotive Holdings U.S.A. LLC term loan 4% 4/23/20 (j) | 525 | 522 | ||
Broadcasting - 0.5% | ||||
Cumulus Media Holdings, Inc. Tranch B 1LN, term loan 4.25% 12/23/20 (j) | 5,798 | 5,769 | ||
ION Media Networks, Inc. Tranche B, term loan 5% 12/18/20 (j) | 1,721 | 1,729 | ||
NEP/NCP Holdco, Inc. Tranche B, term loan 4.25% 1/22/20 (j) | 845 | 844 | ||
TWCC Holding Corp. Tranche 2LN, term loan 7% 6/26/20 (j) | 1,200 | 1,196 | ||
| 9,538 | |||
Chemicals - 0.1% | ||||
Royal Adhesives & Sealants LLC: | ||||
Tranche 2LN, term loan 9.75% 1/31/19 (j) | 1,960 | 1,989 | ||
Tranche B 1LN, term loan 5.5% 7/31/18 (j) | 207 | 207 | ||
| 2,196 | |||
Consumer Products - 0.3% | ||||
Bauer Performance Sports Ltd. Tranche B, term loan 4.5% 4/15/21 (j) | 1,740 | 1,738 | ||
Revlon Consumer Products Corp. term loan 4% 8/19/19 (j) | 3,222 | 3,218 | ||
Spectrum Brands Holdings, Inc. Tranche C, term loan 3.5% 9/4/19 (j) | 408 | 407 | ||
| 5,363 | |||
Bank Loan Obligations - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Containers - 0.1% | ||||
Ardagh Holdings U.S.A., Inc. Tranche B, term loan 4.25% 12/17/19 (j) | $ 214 | $ 213 | ||
Berry Plastics Corp. Tranche E, term loan 3.75% 1/6/21 (j) | 2,025 | 2,010 | ||
| 2,223 | |||
Diversified Financial Services - 0.5% | ||||
AlixPartners LLP Tranche B 2LN, term loan 4% 7/10/20 (j) | 1,269 | 1,266 | ||
Delos Finance SARL Tranche B LN, term loan 3.5% 3/6/21 (j) | 3,105 | 3,105 | ||
Fly Funding II Sarl Tranche B, term loan 4.5% 8/9/19 (j) | 301 | 302 | ||
HarbourVest Partners LLC Tranche B, term loan 3.25% 2/4/21 (j) | 413 | 410 | ||
TransUnion LLC Tranche B, term loan 4% 4/9/21 (j) | 5,340 | 5,313 | ||
| 10,396 | |||
Diversified Media - 0.5% | ||||
Checkout Holding Corp.: | ||||
Tranche 2LN, term loan 7.75% 4/9/22 (j) | 1,080 | 1,072 | ||
Tranche B 1LN, term loan 4.5% 4/9/21 (j) | 2,280 | 2,269 | ||
McGraw-Hill School Education Tranche B, term loan 6.25% 12/18/19 (j) | 6,239 | 6,271 | ||
| 9,612 | |||
Electric Utilities - 0.3% | ||||
Calpine Construction Finance Co. LP Tranche B 2LN, term loan 3.25% 1/31/22 (j) | 5,915 | 5,789 | ||
La Frontera Generation, LLC Tranche B, term loan 4.5% 9/30/20 (j) | 1,248 | 1,248 | ||
| 7,037 | |||
Energy - 0.8% | ||||
Atlantic Power Ltd. Partnership Tranche B LN, term loan 4.75% 2/24/21 (j) | 435 | 437 | ||
Fieldwood Energy, LLC Tranche 2LN, term loan 8.375% 9/30/20 (j) | 11,180 | 11,515 | ||
GIM Channelview Cogeneration LLC Tranche B, term loan 4.25% 5/8/20 (j) | 203 | 203 | ||
Panda Sherman Power, LLC term loan 9% 9/14/18 (j) | 845 | 864 | ||
Panda Temple Power, LLC term loan 7.25% 4/3/19 (j) | 400 | 411 | ||
Sheridan Investment Partners I term loan 4.25% 12/16/20 (j) | 678 | 678 | ||
Sheridan Production Partners I: | ||||
Tranche A, term loan 4.25% 12/16/20 (j) | 94 | 94 | ||
Bank Loan Obligations - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Energy - continued | ||||
Sheridan Production Partners I: - continued | ||||
Tranche M, term loan 4.25% 12/16/20 (j) | $ 35 | $ 35 | ||
TPF II LC LLC Tranche B, term loan 6.5% 8/21/19 (j) | 2,853 | 2,878 | ||
| 17,115 | |||
Entertainment/Film - 0.0% | ||||
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. Tranche B, term loan 3% 1/31/21 (j) | 325 | 324 | ||
Livent, Inc.: | ||||
Tranche A, term loan 18% 1/15/49 pay-in-kind | CAD | 289 | 264 | |
Tranche B, term loan 18% 1/15/49 pay-in-kind | CAD | 176 | 160 | |
| 748 | |||
Environmental - 0.0% | ||||
Darling International, Inc. Tranche B, term loan 3.25% 1/6/21 (j) | 270 | 269 | ||
Food & Drug Retail - 0.4% | ||||
Rite Aid Corp.: | ||||
Tranche 2 LN2, term loan 4.875% 6/21/21 (j) | 6,215 | 6,277 | ||
Tranche 2LN, term loan 5.75% 8/21/20 (j) | 200 | 204 | ||
Smart & Final, Inc. Tranche B, term loan 4.75% 11/15/19 (j) | 822 | 820 | ||
Sprouts Farmers Market LLC Tranche B, term loan 4% 4/23/20 (j) | 324 | 324 | ||
| 7,625 | |||
Food/Beverage/Tobacco - 0.1% | ||||
Arysta Lifescience SPC LLC: | ||||
Tranche B 1LN, term loan 4.5% 5/29/20 (j) | 680 | 679 | ||
Tranche B 2LN, term loan 8.25% 11/30/20 (j) | 585 | 595 | ||
Del Monte Foods Consumer Products: | ||||
Tranche 2LN, term loan 8.25% 8/18/21 (j) | 595 | 588 | ||
Tranche B 1LN, term loan 4.2531% 2/18/21 (j) | 1,182 | 1,178 | ||
| 3,040 | |||
Gaming - 0.3% | ||||
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 4/10/21 (l) | 775 | 773 | ||
Golden Nugget, Inc. Tranche B, term loan: | ||||
5.5% 11/21/19 | 443 | 453 | ||
5.5% 11/21/19 (j) | 190 | 194 | ||
Graton Economic Development Authority Tranche B, term loan 9% 8/22/18 (j) | 980 | 1,022 | ||
Bank Loan Obligations - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Gaming - continued | ||||
Mohegan Tribal Gaming Authority Tranche B, term loan 5.5% 11/19/19 (j) | $ 369 | $ 374 | ||
Station Casinos LLC Tranche B, term loan 4.25% 3/1/20 (j) | 2,693 | 2,690 | ||
| 5,506 | |||
Healthcare - 0.5% | ||||
Accellent, Inc. Tranche B 1 LN, term loan 4.5% 3/12/21 (j) | 2,975 | 2,930 | ||
Dialysis Newco, Inc.: | ||||
Tranche 2LN, term loan 7.75% 10/22/21 (j) | 1,160 | 1,159 | ||
Tranche B 1LN, term loan 4.75% 4/23/21 (j) | 925 | 924 | ||
MModal, Inc. Tranche B, term loan 9% 8/17/19 (j) | 1,755 | 1,386 | ||
MPH Acquisition Holdings LLC Tranche B, term loan 4% 3/31/21 (j) | 778 | 774 | ||
Patheon, Inc. Tranche B, term loan 4.25% 3/11/21 (j) | 2,325 | 2,281 | ||
Rural/Metro Corp. Tranche B, term loan 9% 6/30/18 (j) | 459 | 433 | ||
Salix Pharmaceuticals Ltd. Tranche B, term loan 4.25% 1/2/20 (j) | 202 | 203 | ||
U.S. Renal Care, Inc.: | ||||
Tranche 2LN, term loan 8.5% 1/3/20 (j) | 120 | 121 | ||
Tranche B 2LN, term loan 4.25% 7/3/19 (j) | 194 | 194 | ||
| 10,405 | |||
Homebuilders/Real Estate - 0.1% | ||||
Realogy Corp. Credit-Linked Deposit 4.4463% 10/10/16 (j) | 1,304 | 1,301 | ||
Hotels - 0.1% | ||||
Hilton Worldwide Finance, LLC Tranche B, term loan 3.5% 10/25/20 (j) | 1,940 | 1,932 | ||
Playa Resorts Holding BV Tranche B, term loan 4% 8/9/19 (j) | 234 | 234 | ||
| 2,166 | |||
Leisure - 0.4% | ||||
Equinox Holdings, Inc. Tranche 2LN, term loan 9.75% 8/1/20 (j) | 7,425 | 7,518 | ||
Metals/Mining - 0.0% | ||||
Ameriforge Group, Inc. Tranche B 2LN, term loan 8.75% 1/25/21 (j) | 190 | 194 | ||
Oxbow Carbon LLC Tranche B 1LN, term loan 4.25% 7/19/19 (j) | 168 | 168 | ||
| 362 | |||
Bank Loan Obligations - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Paper - 0.1% | ||||
Caraustar Industries, Inc. Tranche B, term loan 7.5% 5/1/19 (j) | $ 2,398 | $ 2,431 | ||
White Birch Paper Co. Tranche 2LN, term loan 11/8/14 (d)(l) | 8,620 | 0 | ||
| 2,431 | |||
Publishing/Printing - 0.7% | ||||
Cengage Learning Acquisitions, Inc. Tranche 1LN, term loan 7% 3/31/20 (j) | 620 | 629 | ||
Harland Clarke Holdings Corp. Tranche B 4LN, term loan 6% 8/4/19 (j) | 154 | 154 | ||
Houghton Mifflin Harcourt Publishing, Inc. Tranche B, term loan 4.25% 5/22/18 (j) | 270 | 270 | ||
McGraw-Hill Global Education Holdings, LLC Tranche B, term loan 5.75% 3/22/19 (j) | 6,023 | 6,065 | ||
Springer Science+Business Media Deutschland GmbH Tranche B 2LN, term loan 5% 8/14/20 (j) | 6,555 | 6,563 | ||
| 13,681 | |||
Services - 0.1% | ||||
EFS Cogen Holdings I LLC Tranche B, term loan 3.75% 12/17/20 (j) | 245 | 245 | ||
Garda World Security Corp.: | ||||
term loan 4% 11/8/20 (j) | 646 | 644 | ||
Tranche DD, term loan 4% 11/8/20 (j) | 165 | 165 | ||
Laureate Education, Inc. Tranche B, term loan 5% 6/16/18 (j) | 873 | 862 | ||
| 1,916 | |||
Shipping - 0.0% | ||||
CEVA Group PLC: | ||||
Tranche B, term loan 6.5% 3/19/21 (j) | 295 | 291 | ||
Tranche C, term loan 6.5% 3/19/21 (j) | 110 | 108 | ||
| 399 | |||
Super Retail - 0.1% | ||||
BJ's Wholesale Club, Inc. Tranche B 1LN, term loan 4.5% 9/26/19 (j) | 778 | 778 | ||
J. Crew Group, Inc. Tranche B LN, term loan 4% 3/5/21 (j) | 555 | 552 | ||
| 1,330 | |||
Technology - 1.5% | ||||
Avago Technologies, Inc. Tranche B, term loan 4/16/21 (l) | 4,660 | 4,683 | ||
Bank Loan Obligations - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Technology - continued | ||||
Fibertech Networks, LLC Tranche B 1LN, term loan 4% 12/18/19 (j) | $ 209 | $ 209 | ||
First Data Corp. term loan 4.1523% 3/24/18 (j) | 14,230 | 14,159 | ||
Freescale Semiconductor, Inc. Tranche B 4LN, term loan 4.25% 3/1/20 (j) | 4,070 | 4,065 | ||
Infor U.S., Inc. Tranche B 5LN, term loan 3.75% 6/3/20 (j) | 1,112 | 1,105 | ||
Kronos, Inc.: | ||||
Tranche 2LN, term loan 9.75% 4/30/20 (j) | 3,645 | 3,755 | ||
Tranche B 1LN, term loan 4.5% 10/30/19 (j) | 85 | 84 | ||
Renaissance Learning, Inc.: | ||||
Tranche 1LN, term loan 4.5% 4/9/21 (j) | 1,025 | 1,020 | ||
Tranche 2LN, term loan 8% 4/9/22 (j) | 870 | 866 | ||
| 29,946 | |||
Telecommunications - 1.0% | ||||
Altice Financing SA Tranche B, term loan 5.5% 6/24/19 (j) | 17,476 | 17,716 | ||
Integra Telecom Holdings, Inc. Tranche 2LN, term loan 9.75% 2/22/20 (j) | 200 | 204 | ||
Intelsat Jackson Holdings SA Tranche B 2LN, term loan 3.75% 6/30/19 (j) | 1,635 | 1,637 | ||
LTS Buyer LLC Tranche 2LN, term loan 8% 4/11/21 (j) | 63 | 64 | ||
Mitel U.S. Holdings, Inc. Tranche B, term loan 5.3383% 1/31/20 (j) | 504 | 508 | ||
| 20,129 | |||
TOTAL BANK LOAN OBLIGATIONS (Cost $178,772) |
|
Preferred Securities - 2.8% | |||
|
|
|
|
Banks & Thrifts - 1.0% | |||
Bank of America Corp. 5.2% (h)(j) | 2,745 | 2,640 | |
Barclays Bank PLC 7.625% 11/21/22 | 7,480 | 8,748 | |
JPMorgan Chase & Co. 5.15% (h)(j) | 9,715 | 9,443 | |
| 20,831 | ||
Diversified Financial Services - 1.8% | |||
Citigroup, Inc.: | |||
5.35% (h)(j) | 24,830 | 23,767 | |
Preferred Securities - continued | |||
Principal Amount (000s) (e) | Value (000s) | ||
Diversified Financial Services - continued | |||
Citigroup, Inc.: - continued | |||
5.9% (h)(j) | $ 9,045 | $ 9,043 | |
5.95% (h)(j) | 4,815 | 4,833 | |
| 37,643 | ||
TOTAL PREFERRED SECURITIES (Cost $58,955) |
| ||
Money Market Funds - 3.1% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.11% (b) | 60,662,654 | 60,663 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 3,858,614 | 3,859 | |
TOTAL MONEY MARKET FUNDS (Cost $64,522) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.2% (Cost $1,959,054) | 2,054,426 | ||
NET OTHER ASSETS (LIABILITIES) - (0.2)% | (4,081) | ||
NET ASSETS - 100% | $ 2,050,345 |
Currency Abbreviations | ||
CAD | - | Canadian dollar |
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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Amount is stated in United States dollars unless otherwise noted. |
(f) Security or a portion of the security is on loan at period end. |
(g) 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 $588,562,000 or 28.7% of net assets. |
(h) Security is perpetual in nature with no stated maturity date. |
(i) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(j) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(k) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
(l) The coupon rate will be determined upon settlement of the loan after period end. |
(m) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,698,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Arena Brands Holding Corp. Class B | 6/18/97 - 7/13/98 | $ 1,538 |
Houghton Mifflin Harcourt Co. warrants 6/22/19 | 6/22/12 | $ 8 |
Station Holdco LLC | 6/17/11 | $ 1,450 |
Station Holdco LLC unit | 4/1/13 | $ 0* |
Station Holdco LLC warrants 6/15/18 | 10/28/08 - 12/1/08 | $ 3,945 |
* Amount represents less than $1,000. |
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 | $ 41 |
Fidelity Securities Lending Cash Central Fund | 13 |
Total | $ 54 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 110,014 | $ 106,290 | $ - | $ 3,724 |
Consumer Staples | 13,032 | 13,032 | - | - |
Energy | 35,083 | 35,083 | - | - |
Financials | 48,955 | 37,575 | 11,380 | - |
Health Care | 25,489 | 25,489 | - | - |
Industrials | 37,912 | 35,456 | - | 2,456 |
Information Technology | 37,317 | 37,317 | - | - |
Materials | 24,836 | 24,836 | - | - |
Telecommunication Services | 11,101 | 11,101 | - | - |
Corporate Bonds | 1,414,052 | - | 1,414,051 | 1 |
Bank Loan Obligations | 173,639 | - | 164,275 | 9,364 |
Preferred Securities | 58,474 | - | 58,474 | - |
Money Market Funds | 64,522 | 64,522 | - | - |
Total Investments in Securities: | $ 2,054,426 | $ 390,701 | $ 1,648,180 | $ 15,545 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 81.9% |
Luxembourg | 5.2% |
Canada | 2.1% |
Netherlands | 1.3% |
Cayman Islands | 1.3% |
Bermuda | 1.3% |
France | 1.0% |
Marshall Islands | 1.0% |
Others (Individually Less Than 1%) | 4.9% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $3,693) - See accompanying schedule: Unaffiliated issuers (cost $1,894,532) | $ 1,989,904 |
|
Fidelity Central Funds (cost $64,522) | 64,522 |
|
Total Investments (cost $1,959,054) |
| $ 2,054,426 |
Cash |
| 149 |
Receivable for investments sold |
| 20,553 |
Delayed delivery |
| 651 |
Receivable for fund shares sold | 2,623 | |
Dividends receivable | 578 | |
Interest receivable | 26,303 | |
Distributions receivable from Fidelity Central Funds | 14 | |
Prepaid expenses | 1 | |
Other receivables | 58 | |
Total assets | 2,105,356 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 7,899 | |
Delayed delivery | 31,645 | |
Payable for fund shares redeemed | 6,220 | |
Distributions payable | 1,019 | |
Accrued management fee | 954 | |
Distribution and service plan fees payable | 425 | |
Other affiliated payables | 326 | |
Other payables and accrued expenses | 2,664 | |
Collateral on securities loaned, at value | 3,859 | |
Total liabilities | 55,011 | |
|
|
|
Net Assets | $ 2,050,345 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,446,424 | |
Undistributed net investment income | 30,233 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (521,688) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 95,376 | |
Net Assets | $ 2,050,345 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 10.86 | |
|
|
|
Maximum offering price per share (100/96.00 of $10.86) | $ 11.31 | |
Class T: | $ 10.91 | |
|
|
|
Maximum offering price per share (100/96.00 of $10.91) | $ 11.36 | |
Class B: | $ 10.78 | |
|
|
|
Class C: | $ 10.84 | |
|
|
|
Institutional Class: | $ 10.19 |
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.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended April 30, 2014 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,066 |
Interest |
| 52,436 |
Income from Fidelity Central Funds |
| 54 |
Total income |
| 57,556 |
|
|
|
Expenses | ||
Management fee | $ 5,585 | |
Transfer agent fees | 1,586 | |
Distribution and service plan fees | 2,542 | |
Accounting and security lending fees | 328 | |
Custodian fees and expenses | 17 | |
Independent trustees' compensation | 4 | |
Registration fees | 72 | |
Audit | 40 | |
Legal | 13 | |
Miscellaneous | 8 | |
Total expenses before reductions | 10,195 | |
Expense reductions | (1) | 10,194 |
Net investment income (loss) | 47,362 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 8,759 |
Change in net unrealized appreciation (depreciation) on investment securities | 31,056 | |
Net gain (loss) | 39,815 | |
Net increase (decrease) in net assets resulting from operations | $ 87,177 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 47,362 | $ 104,188 |
Net realized gain (loss) | 8,759 | 6,723 |
Change in net unrealized appreciation (depreciation) | 31,056 | 95,481 |
Net increase (decrease) in net assets resulting | 87,177 | 206,392 |
Distributions to shareholders from net investment income | (42,923) | (89,629) |
Distributions to shareholders from net realized gain | (21,730) | (24,025) |
Total distributions | (64,653) | (113,654) |
Share transactions - net increase (decrease) | 102,346 | (122,384) |
Redemption fees | 93 | 331 |
Total increase (decrease) in net assets | 124,963 | (29,315) |
|
|
|
Net Assets | ||
Beginning of period | 1,925,382 | 1,954,697 |
End of period (including undistributed net investment income of $30,233 and undistributed net investment income of $25,794, respectively) | $ 2,050,345 | $ 1,925,382 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.73 | $ 10.21 | $ 9.59 | $ 9.87 | $ 8.60 | $ 6.44 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .257 | .569 | .607 | .593 | .650 | .587 |
Net realized and unrealized gain (loss) | .219 | .558 | .658 | (.238) | 1.185 | 2.033 |
Total from investment operations | .476 | 1.127 | 1.265 | .355 | 1.835 | 2.620 |
Distributions from net investment income | (.229) | (.482) | (.647) | (.639) | (.550) | (.465) |
Distributions from net realized gain | (.118) | (.127) | - | - | (.020) | - |
Total distributions | (.347) | (.609) | (.647) | (.639) | (.570) | (.465) |
Redemption fees added to paid in capital E | .001 | .002 | .002 | .004 | .005 | .005 |
Net asset value, end of period | $ 10.86 | $ 10.73 | $ 10.21 | $ 9.59 | $ 9.87 | $ 8.60 |
Total Return B, C, D | 4.52% | 11.39% | 13.78% | 3.57% | 22.06% | 43.51% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.03% A | 1.02% | 1.03% | 1.03% | 1.03% | 1.07% |
Expenses net of fee waivers, if any | 1.03% A | 1.02% | 1.03% | 1.03% | 1.03% | 1.07% |
Expenses net of all reductions | 1.03% A | 1.02% | 1.03% | 1.03% | 1.03% | 1.07% |
Net investment income (loss) | 4.81% A | 5.42% | 6.18% | 5.93% | 7.03% | 8.68% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 712 | $ 698 | $ 705 | $ 659 | $ 722 | $ 703 |
Portfolio turnover rate G | 38% A | 66% | 66% | 68% | 53% | 49% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.78 | $ 10.26 | $ 9.64 | $ 9.92 | $ 8.64 | $ 6.47 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .259 | .573 | .610 | .597 | .653 | .586 |
Net realized and unrealized gain (loss) | .217 | .555 | .656 | (.241) | 1.193 | 2.046 |
Total from investment operations | .476 | 1.128 | 1.266 | .356 | 1.846 | 2.632 |
Distributions from net investment income | (.229) | (.483) | (.648) | (.640) | (.551) | (.467) |
Distributions from net realized gain | (.118) | (.127) | - | - | (.020) | - |
Total distributions | (.347) | (.610) | (.648) | (.640) | (.571) | (.467) |
Redemption fees added to paid in capital E | .001 | .002 | .002 | .004 | .005 | .005 |
Net asset value, end of period | $ 10.91 | $ 10.78 | $ 10.26 | $ 9.64 | $ 9.92 | $ 8.64 |
Total Return B, C, D | 4.50% | 11.34% | 13.72% | 3.56% | 22.09% | 43.50% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.02% A | 1.01% | 1.02% | 1.02% | 1.02% | 1.05% |
Expenses net of fee waivers, if any | 1.02% A | 1.01% | 1.02% | 1.02% | 1.02% | 1.05% |
Expenses net of all reductions | 1.02% A | 1.01% | 1.02% | 1.02% | 1.02% | 1.05% |
Net investment income (loss) | 4.82% A | 5.43% | 6.19% | 5.94% | 7.04% | 8.70% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 528 | $ 528 | $ 547 | $ 543 | $ 645 | $ 678 |
Portfolio turnover rate G | 38% A | 66% | 66% | 68% | 53% | 49% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.65 | $ 10.15 | $ 9.53 | $ 9.82 | $ 8.56 | $ 6.41 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .217 | .489 | .532 | .519 | .581 | .532 |
Net realized and unrealized gain (loss) | .221 | .542 | .663 | (.245) | 1.180 | 2.033 |
Total from investment operations | .438 | 1.031 | 1.195 | .274 | 1.761 | 2.565 |
Distributions from net investment income | (.191) | (.406) | (.577) | (.568) | (.486) | (.420) |
Distributions from net realized gain | (.118) | (.127) | - | - | (.020) | - |
Total distributions | (.309) | (.533) | (.577) | (.568) | (.506) | (.420) |
Redemption fees added to paid in capital E | .001 | .002 | .002 | .004 | .005 | .005 |
Net asset value, end of period | $ 10.78 | $ 10.65 | $ 10.15 | $ 9.53 | $ 9.82 | $ 8.56 |
Total Return B, C, D | 4.18% | 10.45% | 13.06% | 2.75% | 21.20% | 42.62% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.75% A | 1.75% | 1.75% | 1.75% | 1.74% | 1.76% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.75% | 1.74% | 1.75% |
Expenses net of all reductions | 1.75% A | 1.75% | 1.75% | 1.74% | 1.74% | 1.75% |
Net investment income (loss) | 4.08% A | 4.69% | 5.46% | 5.21% | 6.32% | 8.00% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 15 | $ 19 | $ 28 | $ 38 | $ 52 | $ 65 |
Portfolio turnover rate G | 38% A | 66% | 66% | 68% | 53% | 49% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.71 | $ 10.19 | $ 9.58 | $ 9.86 | $ 8.59 | $ 6.44 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .216 | .489 | .533 | .518 | .581 | .536 |
Net realized and unrealized gain (loss) | .219 | .560 | .649 | (.237) | 1.186 | 2.025 |
Total from investment operations | .435 | 1.049 | 1.182 | .281 | 1.767 | 2.561 |
Distributions from net investment income | (.188) | (.404) | (.574) | (.565) | (.482) | (.416) |
Distributions from net realized gain | (.118) | (.127) | - | - | (.020) | - |
Total distributions | (.306) | (.531) | (.574) | (.565) | (.502) | (.416) |
Redemption fees added to paid in capital E | .001 | .002 | .002 | .004 | .005 | .005 |
Net asset value, end of period | $ 10.84 | $ 10.71 | $ 10.19 | $ 9.58 | $ 9.86 | $ 8.59 |
Total Return B, C, D | 4.14% | 10.58% | 12.85% | 2.81% | 21.20% | 42.32% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.78% A | 1.77% | 1.78% | 1.77% | 1.77% | 1.81% |
Expenses net of fee waivers, if any | 1.78% A | 1.77% | 1.78% | 1.77% | 1.77% | 1.81% |
Expenses net of all reductions | 1.78% A | 1.77% | 1.77% | 1.77% | 1.77% | 1.81% |
Net investment income (loss) | 4.05% A | 4.67% | 5.44% | 5.19% | 6.29% | 7.94% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 187 | $ 183 | $ 180 | $ 164 | $ 186 | $ 185 |
Portfolio turnover rate G | 38% A | 66% | 66% | 68% | 53% | 49% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.10 | $ 9.65 | $ 9.10 | $ 9.40 | $ 8.22 | $ 6.18 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .253 | .561 | .598 | .595 | .642 | .570 |
Net realized and unrealized gain (loss) | .197 | .524 | .623 | (.233) | 1.128 | 1.949 |
Total from investment operations | .450 | 1.085 | 1.221 | .362 | 1.770 | 2.519 |
Distributions from net investment income | (.242) | (.510) | (.673) | (.666) | (.575) | (.484) |
Distributions from net realized gain | (.118) | (.127) | - | - | (.020) | - |
Total distributions | (.360) | (.637) | (.673) | (.666) | (.595) | (.484) |
Redemption fees added to paid in capital D | - H | .002 | .002 | .004 | .005 | .005 |
Net asset value, end of period | $ 10.19 | $ 10.10 | $ 9.65 | $ 9.10 | $ 9.40 | $ 8.22 |
Total Return B, C | 4.54% | 11.63% | 14.07% | 3.83% | 22.33% | 43.81% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .79% A | .77% | .78% | .77% | .78% | .81% |
Expenses net of fee waivers, if any | .79% A | .77% | .78% | .77% | .78% | .81% |
Expenses net of all reductions | .79% A | .77% | .78% | .77% | .78% | .81% |
Net investment income (loss) | 5.05% A | 5.68% | 6.44% | 6.19% | 7.28% | 8.94% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 609 | $ 497 | $ 495 | $ 498 | $ 1,336 | $ 1,245 |
Portfolio turnover rate F | 38% A | 66% | 66% | 68% | 53% | 49% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount represents less than $.001 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® High Income Advantage Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The
Semiannual Report
3. Significant Accounting Policies - continued
Deferred Trustee Compensation - continued
investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
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.
Dividends 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 dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, defaulted bonds, market discount, equity-debt classifications, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 167,837 |
Gross unrealized depreciation | (66,426) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 101,411 |
|
|
Tax cost | $ 1,953,015 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2017 | $ (508,732) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower
Semiannual Report
3. Significant Accounting Policies - continued
Loans and Other Direct Debt Instruments - continued
prior to the sale of these loans. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $504,754 and $361,628, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .57% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 882 | $ 21 |
Class T | -% | .25% | 659 | 10 |
Class B | .65% | .25% | 77 | 56 |
Class C | .75% | .25% | 924 | 80 |
|
|
| $ 2,542 | $ 167 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 53 |
Class T | 5 |
Class B* | 5 |
Class C* | 5 |
| $ 68 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 559 | .16 |
Class T | 392 | .15 |
Class B | 20 | .23 |
Class C | 147 | .16 |
Institutional Class | 468 | .17 |
| $ 1,586 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $13. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 14,984 | $ 32,676 |
Class T | 11,167 | 24,635 |
Class B | 307 | 920 |
Class C | 3,236 | 7,083 |
Institutional Class | 13,229 | 24,315 |
Total | $ 42,923 | $ 89,629 |
From net realized gain |
|
|
Class A | $ 7,669 | $ 8,703 |
Class T | 5,773 | 6,597 |
Class B | 206 | 336 |
Class C | 2,005 | 2,235 |
Institutional Class | 6,077 | 6,154 |
Total | $ 21,730 | $ 24,025 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 6,916 | 17,380 | $ 74,523 | $ 182,432 |
Reinvestment of distributions | 1,751 | 3,187 | 18,829 | 33,277 |
Shares redeemed | (8,129) | (24,589) | (87,644) | (257,846) |
Net increase (decrease) | 538 | (4,022) | $ 5,708 | $ (42,137) |
Class T |
|
|
|
|
Shares sold | 3,153 | 7,839 | $ 34,106 | $ 82,393 |
Reinvestment of distributions | 1,395 | 2,579 | 15,080 | 27,058 |
Shares redeemed | (5,165) | (14,693) | (55,799) | (154,504) |
Net increase (decrease) | (617) | (4,275) | $ (6,613) | $ (45,053) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class B |
|
|
|
|
Shares sold | 51 | 170 | $ 557 | $ 1,770 |
Reinvestment of distributions | 39 | 91 | 413 | 946 |
Shares redeemed | (532) | (1,185) | (5,688) | (12,346) |
Net increase (decrease) | (442) | (924) | $ (4,718) | $ (9,630) |
Class C |
|
|
|
|
Shares sold | 1,565 | 2,941 | $ 16,808 | $ 30,884 |
Reinvestment of distributions | 374 | 659 | 4,012 | 6,860 |
Shares redeemed | (1,787) | (4,169) | (19,203) | (43,630) |
Net increase (decrease) | 152 | (569) | $ 1,617 | $ (5,886) |
Institutional Class |
|
|
|
|
Shares sold | 13,753 | 13,983 | $ 139,224 | $ 138,423 |
Reinvestment of distributions | 1,579 | 2,463 | 15,968 | 24,250 |
Shares redeemed | (4,826) | (18,542) | (48,840) | (182,351) |
Net increase (decrease) | 10,506 | (2,096) | $ 106,352 | $ (19,678) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers Income Opportunities Fund was the owner of record of approximately 10% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
HY-USAN-0614 1.784886.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
High Income Advantage
Fund - Institutional Class
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.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.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.20 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.69 | $ 5.16 |
Class T | 1.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.00 | $ 5.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.74 | $ 5.11 |
Class B | 1.75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,041.80 | $ 8.86 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.12 | $ 8.75 |
Class C | 1.78% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,041.40 | $ 9.01 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.97 | $ 8.90 |
Institutional Class | .79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.40 | $ 4.01 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.88 | $ 3.96 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Holdings as of April 30, 2014 | ||
(by issuer, excluding cash equivalents) | % of fund's | % of fund's net assets |
GMAC LLC | 2.7 | 3.0 |
International Lease Finance Corp. | 2.6 | 2.6 |
Energy Future Intermediate Holding Co. LLC/Energy Future Intermediate Holding Finance, Inc. | 2.5 | 2.6 |
HCA Holdings, Inc. | 2.3 | 0.8 |
Citigroup, Inc. | 2.1 | 1.8 |
| 12.2 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Diversified Financial Services | 10.0 | 9.1 |
Telecommunications | 10.0 | 10.4 |
Technology | 7.9 | 6.5 |
Healthcare | 7.7 | 7.8 |
Energy | 7.5 | 8.6 |
Quality Diversification (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
![]() | BBB 1.2% |
| ![]() | BBB 1.0% |
| ||
![]() | BB 24.8% |
| ![]() | BB 19.2% |
| ||
![]() | B 36.0% |
| ![]() | B 39.5% |
| ||
![]() | CCC,CC,C 17.0% |
| ![]() | CCC,CC,C 16.4% |
| ||
![]() | D 0.0% |
| ![]() | D 0.1% |
| ||
![]() | Not Rated 1.3% |
| ![]() | Not Rated 2.2% |
| ||
![]() | Equities 16.8% |
| ![]() | Equities 15.4% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014* | As of October 31, 2013** | ||||||
![]() | Nonconvertible |
| ![]() | Nonconvertible |
| ||
![]() | Convertible Bonds, Preferred Stocks 1.0% |
| ![]() | Convertible Bonds, Preferred Stocks 2.2% |
| ||
![]() | Common Stocks 15.8% |
| ![]() | Common Stocks 13.5% |
| ||
![]() | Bank Loan |
| ![]() | Bank Loan |
| ||
![]() | Other Investments 2.8% |
| ![]() | Other Investments 2.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 18.1% |
| ** Foreign investments | 14.3% |
|
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 69.0% | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Convertible Bonds - 0.0% | ||||
Broadcasting - 0.0% | ||||
Mood Media Corp. 10% 10/31/15 (g) | $ 38 | $ 33 | ||
Nonconvertible Bonds - 69.0% | ||||
Aerospace - 0.3% | ||||
GenCorp, Inc. 7.125% 3/15/21 | 525 | 570 | ||
Spirit Aerosystems, Inc. 5.25% 3/15/22 (g) | 2,230 | 2,261 | ||
TransDigm, Inc. 7.5% 7/15/21 | 3,755 | 4,131 | ||
| 6,962 | |||
Air Transportation - 0.3% | ||||
Continental Airlines, Inc.: | ||||
pass-thru trust certificates 6.903% 4/19/22 | 951 | 1,030 | ||
6.125% 4/29/18 (g) | 670 | 714 | ||
9.25% 5/10/17 | 1,185 | 1,339 | ||
United Air Lines, Inc. pass-thru trust certificates 9.75% 1/15/17 | 2,116 | 2,433 | ||
| 5,516 | |||
Automotive - 1.9% | ||||
Affinia Group, Inc. 7.75% 5/1/21 | 405 | 433 | ||
American Axle & Manufacturing, Inc. 5.125% 2/15/19 | 750 | 786 | ||
Chassix, Inc. 9.25% 8/1/18 (g) | 765 | 829 | ||
Dana Holding Corp.: | ||||
5.375% 9/15/21 | 1,450 | 1,497 | ||
6% 9/15/23 | 1,450 | 1,526 | ||
General Motors Acceptance Corp. 8% 11/1/31 | 4,835 | 5,935 | ||
General Motors Corp.: | ||||
6.75% 5/1/28 (d) | 547 | 0 | ||
7.125% 7/15/49 (d) | 1,583 | 0 | ||
7.2% 1/15/11 (d) | 3,997 | 0 | ||
7.4% 9/1/25 (d) | 273 | 0 | ||
7.7% 4/15/16 (d) | 980 | 0 | ||
8.25% 7/15/23 (d) | 7,625 | 0 | ||
8.375% 7/15/33 (d) | 23,416 | 0 | ||
General Motors Financial Co., Inc.: | ||||
4.25% 5/15/23 | 1,000 | 981 | ||
4.75% 8/15/17 | 5,395 | 5,773 | ||
6.75% 6/1/18 | 10,220 | 11,625 | ||
LKQ Corp. 4.75% 5/15/23 | 430 | 413 | ||
Schaeffler Finance BV 4.75% 5/15/21 (g) | 1,930 | 1,981 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Automotive - continued | ||||
Schaeffler Holding Finance BV 6.875% 8/15/18 pay-in-kind (g)(j) | $ 2,550 | $ 2,706 | ||
Tenneco, Inc. 6.875% 12/15/20 | 3,362 | 3,681 | ||
| 38,166 | |||
Banks & Thrifts - 3.7% | ||||
Ally Financial, Inc.: | ||||
3.5% 1/27/19 | 3,485 | 3,511 | ||
4.75% 9/10/18 | 3,970 | 4,208 | ||
8% 3/15/20 | 4,150 | 5,016 | ||
GMAC LLC: | ||||
8% 12/31/18 | 25,964 | 30,964 | ||
8% 11/1/31 | 19,887 | 24,461 | ||
Royal Bank of Scotland Group PLC 6% 12/19/23 | 6,785 | 7,088 | ||
Washington Mutual Bank 5.5% 1/15/49 (d) | 10,000 | 1 | ||
| 75,249 | |||
Broadcasting - 0.8% | ||||
AMC Networks, Inc. 7.75% 7/15/21 | 500 | 560 | ||
Clear Channel Communications, Inc.: | ||||
5.5% 9/15/14 | 6,735 | 6,802 | ||
5.5% 12/15/16 | 3,698 | 3,624 | ||
Sirius XM Radio, Inc. 5.75% 8/1/21 (g) | 5,525 | 5,663 | ||
| 16,649 | |||
Building Materials - 0.7% | ||||
American Builders & Contractors Supply Co., Inc. 5.625% 4/15/21 (g) | 595 | 616 | ||
CEMEX Finance LLC 6% 4/1/24 (g) | 2,795 | 2,804 | ||
CEMEX S.A.B. de CV 5.2336% 9/30/15 (g)(j) | 4,305 | 4,429 | ||
Nortek, Inc. 8.5% 4/15/21 | 1,520 | 1,676 | ||
USG Corp.: | ||||
5.875% 11/1/21 (g) | 430 | 457 | ||
6.3% 11/15/16 | 275 | 297 | ||
7.875% 3/30/20 (g) | 1,390 | 1,550 | ||
9.75% 1/15/18 | 1,585 | 1,911 | ||
| 13,740 | |||
Cable TV - 3.9% | ||||
Altice S.A. 7.75% 5/15/22 (g)(i) | 7,070 | 7,370 | ||
CCO Holdings LLC/CCO Holdings Capital Corp.: | ||||
5.125% 2/15/23 | 2,550 | 2,489 | ||
5.25% 3/15/21 | 2,245 | 2,287 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Cable TV - continued | ||||
CCO Holdings LLC/CCO Holdings Capital Corp.: - continued | ||||
5.75% 9/1/23 | $ 1,545 | $ 1,559 | ||
5.75% 1/15/24 | 6,890 | 6,950 | ||
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (g) | 535 | 560 | ||
Cequel Communications Holdings I LLC/Cequel Capital Corp. 5.125% 12/15/21 (g) | 5,495 | 5,358 | ||
DISH DBS Corp.: | ||||
5% 3/15/23 | 9,555 | 9,746 | ||
5.875% 7/15/22 | 4,240 | 4,574 | ||
6.75% 6/1/21 | 5,260 | 5,944 | ||
Lynx I Corp. 5.375% 4/15/21 (g) | 1,260 | 1,292 | ||
Lynx II Corp. 6.375% 4/15/23 (g) | 710 | 746 | ||
Numericable Group SA: | ||||
4.875% 5/15/19 (g)(i) | 7,890 | 7,969 | ||
6% 5/15/22 (g)(i) | 11,430 | 11,701 | ||
6.25% 5/15/24 (g)(i) | 1,150 | 1,177 | ||
RCN Telecom Services LLC/RCN Capital Corp. 8.5% 8/15/20 (g) | 1,245 | 1,320 | ||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH: | ||||
5.5% 1/15/23 (g) | 2,145 | 2,166 | ||
7.5% 3/15/19 (g) | 705 | 760 | ||
UPCB Finance III Ltd. 6.625% 7/1/20 (g) | 3,060 | 3,267 | ||
UPCB Finance VI Ltd. 6.875% 1/15/22 (g) | 1,900 | 2,071 | ||
| 79,306 | |||
Capital Goods - 0.2% | ||||
Briggs & Stratton Corp. 6.875% 12/15/20 | 1,285 | 1,426 | ||
Shale-Inland Holdings LLC/Shale-Inland Finance Corp. 8.75% 11/15/19 (g) | 1,610 | 1,658 | ||
| 3,084 | |||
Chemicals - 1.1% | ||||
Hexion U.S. Finance Corp. 6.625% 4/15/20 | 4,605 | 4,783 | ||
LSB Industries, Inc. 7.75% 8/1/19 (g) | 705 | 754 | ||
Orion Engineered Carbons Finance & Co. SCA 9.25% 8/1/19 pay-in-kind (g)(j) | 1,630 | 1,701 | ||
PolyOne Corp. 5.25% 3/15/23 | 2,215 | 2,237 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Chemicals - continued | ||||
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. 8.75% 2/1/19 | $ 11,535 | $ 12,285 | ||
U.S. Coatings Acquisition, Inc./Flash Dutch 2 BV 7.375% 5/1/21 (g) | 960 | 1,054 | ||
| 22,814 | |||
Consumer Products - 0.8% | ||||
First Quality Finance Co., Inc. 4.625% 5/15/21 (g) | 490 | 463 | ||
Prestige Brands, Inc.: | ||||
5.375% 12/15/21 (g) | 2,875 | 2,947 | ||
8.125% 2/1/20 | 335 | 375 | ||
Revlon Consumer Products Corp. 5.75% 2/15/21 | 10,540 | 10,619 | ||
Spectrum Brands Holdings, Inc.: | ||||
6.375% 11/15/20 | 565 | 613 | ||
6.625% 11/15/22 | 670 | 732 | ||
| 15,749 | |||
Containers - 3.0% | ||||
ARD Finance SA 11.125% 6/1/18 pay-in-kind (g)(j) | 7,119 | 7,500 | ||
Ardagh Packaging Finance PLC: | ||||
7.375% 10/15/17 (g) | 846 | 897 | ||
9.125% 10/15/20 (g) | 3,369 | 3,748 | ||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | ||||
6.25% 1/31/19 (g) | 1,165 | 1,215 | ||
6.75% 1/31/21 (g) | 1,350 | 1,407 | ||
7% 11/15/20 (g) | 697 | 727 | ||
9.125% 10/15/20 (g) | 1,045 | 1,157 | ||
Beverage Packaging Holdings II SA (Luxembourg) 6% 6/15/17 (g) | 1,255 | 1,293 | ||
BOE Intermediate Holding Corp. 9.75% 11/1/17 pay-in-kind (g)(j) | 617 | 648 | ||
Consolidated Container Co. LLC/Consolidated Container Capital, Inc. 10.125% 7/15/20 (g) | 1,465 | 1,524 | ||
Graphic Packaging International, Inc. 4.75% 4/15/21 | 615 | 612 | ||
Pretium Packaging LLC/Pretium Finance, Inc. 11.5% 4/1/16 | 3,400 | 3,634 | ||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | ||||
5.75% 10/15/20 | 10,505 | 10,925 | ||
6.875% 2/15/21 | 7,339 | 7,899 | ||
7.875% 8/15/19 | 8,387 | 9,205 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Containers - continued | ||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: - continued | ||||
8.25% 2/15/21 | $ 6,144 | $ 6,643 | ||
Sealed Air Corp. 6.5% 12/1/20 (g) | 1,730 | 1,912 | ||
Tekni-Plex, Inc. 9.75% 6/1/19 (g) | 1,332 | 1,508 | ||
| 62,454 | |||
Diversified Financial Services - 6.6% | ||||
Aircastle Ltd. 4.625% 12/15/18 | 1,625 | 1,664 | ||
CIT Group, Inc.: | ||||
3.875% 2/19/19 | 2,570 | 2,599 | ||
5% 8/15/22 | 3,195 | 3,267 | ||
5% 8/1/23 | 8,460 | 8,502 | ||
5.375% 5/15/20 | 4,400 | 4,697 | ||
5.5% 2/15/19 (g) | 8,075 | 8,701 | ||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
3.5% 3/15/17 (g) | 2,285 | 2,302 | ||
4.875% 3/15/19 (g) | 3,930 | 3,984 | ||
5.875% 2/1/22 (g) | 4,690 | 4,760 | ||
6% 8/1/20 (g) | 3,840 | 4,051 | ||
International Lease Finance Corp.: | ||||
3.875% 4/15/18 | 7,210 | 7,318 | ||
5.65% 6/1/14 | 351 | 352 | ||
5.75% 5/15/16 | 6,040 | 6,501 | ||
5.875% 8/15/22 | 7,625 | 8,044 | ||
7.125% 9/1/18 (g) | 10,309 | 11,958 | ||
8.25% 12/15/20 | 3,945 | 4,759 | ||
8.625% 1/15/22 | 11,305 | 13,849 | ||
SLM Corp.: | ||||
4.875% 6/17/19 | 9,130 | 9,393 | ||
5.5% 1/15/19 | 3,545 | 3,728 | ||
5.5% 1/25/23 | 2,245 | 2,206 | ||
6.125% 3/25/24 | 3,835 | 3,821 | ||
8% 3/25/20 | 9,700 | 11,204 | ||
8.45% 6/15/18 | 4,905 | 5,782 | ||
| 133,442 | |||
Diversified Media - 1.3% | ||||
Clear Channel Worldwide Holdings, Inc.: | ||||
6.5% 11/15/22 | 1,225 | 1,305 | ||
6.5% 11/15/22 | 3,315 | 3,547 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Diversified Media - continued | ||||
Clear Channel Worldwide Holdings, Inc.: - continued | ||||
7.625% 3/15/20 | $ 900 | $ 963 | ||
7.625% 3/15/20 | 4,400 | 4,741 | ||
Darling Escrow Corp. 5.375% 1/15/22 (g) | 1,280 | 1,315 | ||
Lamar Media Corp. 5.375% 1/15/24 (g) | 1,080 | 1,119 | ||
Liberty Media Corp.: | ||||
8.25% 2/1/30 | 469 | 514 | ||
8.5% 7/15/29 | 529 | 590 | ||
MDC Partners, Inc. 6.75% 4/1/20 (g) | 440 | 465 | ||
National CineMedia LLC: | ||||
6% 4/15/22 | 4,035 | 4,237 | ||
7.875% 7/15/21 | 2,050 | 2,260 | ||
Nielsen Finance LLC/Nielsen Finance Co. 7.75% 10/15/18 | 4,395 | 4,675 | ||
WMG Acquisition Corp.: | ||||
5.625% 4/15/22 (g) | 480 | 486 | ||
6% 1/15/21 (g) | 667 | 699 | ||
| 26,916 | |||
Electric Utilities - 4.2% | ||||
Calpine Corp.: | ||||
6% 1/15/22 (g) | 1,885 | 2,003 | ||
7.875% 1/15/23 (g) | 4,205 | 4,710 | ||
Energy Future Intermediate Holding Co. LLC/Energy Future Intermediate Holding Finance, Inc.: | ||||
10% 12/1/20 | 6,332 | 6,704 | ||
10% 12/1/20 (g) | 8,903 | 9,426 | ||
11% 10/1/21 | 6,237 | 7,141 | ||
11.25% 12/1/18 pay-in-kind (g)(j) | 927 | 866 | ||
12% 3/1/22 (g) | 22,140 | 26,347 | ||
InterGen NV 7% 6/30/23 (g) | 3,940 | 4,137 | ||
Mirant Americas Generation LLC 9.125% 5/1/31 | 690 | 681 | ||
NRG Energy, Inc. 6.625% 3/15/23 | 7,020 | 7,336 | ||
Puget Energy, Inc.: | ||||
6% 9/1/21 | 3,305 | 3,863 | ||
6.5% 12/15/20 | 1,935 | 2,299 | ||
The AES Corp.: | ||||
4.875% 5/15/23 | 725 | 694 | ||
5.5% 3/15/24 | 1,305 | 1,305 | ||
7.375% 7/1/21 | 2,400 | 2,748 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Electric Utilities - continued | ||||
TXU Corp.: | ||||
5.55% 11/15/14 | $ 7,757 | $ 3,258 | ||
6.5% 11/15/24 | 4,961 | 2,084 | ||
6.55% 11/15/34 | 4,295 | 1,804 | ||
| 87,406 | |||
Energy - 5.4% | ||||
Access Midstream Partners LP/ACMP Finance Corp.: | ||||
4.875% 5/15/23 | 2,720 | 2,754 | ||
4.875% 3/15/24 | 1,300 | 1,294 | ||
AmeriGas Finance LLC/AmeriGas Finance Corp.: | ||||
6.75% 5/20/20 | 1,260 | 1,370 | ||
7% 5/20/22 | 2,700 | 2,970 | ||
Antero Resources Corp. 5.125% 12/1/22 (g)(i) | 3,765 | 3,798 | ||
Antero Resources Finance Corp. 5.375% 11/1/21 (g) | 2,500 | 2,556 | ||
Atlas Pipeline Partners LP/Atlas Pipeline Finance Corp. 5.875% 8/1/23 | 1,885 | 1,861 | ||
Chesapeake Energy Corp.: | ||||
4.875% 4/15/22 | 1,890 | 1,892 | ||
5.375% 6/15/21 | 3,665 | 3,839 | ||
5.75% 3/15/23 | 2,170 | 2,306 | ||
6.125% 2/15/21 | 3,615 | 3,958 | ||
6.875% 11/15/20 | 177 | 201 | ||
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: | ||||
6.125% 3/1/22 (g) | 1,520 | 1,588 | ||
7.75% 4/1/19 | 3,095 | 3,350 | ||
Denbury Resources, Inc. 4.625% 7/15/23 | 4,395 | 4,181 | ||
Diamondback Energy, Inc. 7.625% 10/1/21 (g) | 1,545 | 1,672 | ||
Edgen Murray Corp. 8.75% 11/1/20 (g) | 1,200 | 1,386 | ||
El Paso Energy Corp. 7.75% 1/15/32 | 1,399 | 1,512 | ||
EP Energy LLC/Everest Acquisition Finance, Inc. 7.75% 9/1/22 | 1,440 | 1,604 | ||
Everest Acquisition LLC/Everest Acquisition Finance, Inc. 9.375% 5/1/20 | 3,975 | 4,581 | ||
Exterran Partners LP/EXLP Finance Corp. 6% 10/1/22 (g) | 2,280 | 2,269 | ||
Ferrellgas LP/Ferrellgas Finance Corp.: | ||||
6.5% 5/1/21 | 2,435 | 2,557 | ||
6.75% 1/15/22 (g) | 1,095 | 1,152 | ||
Forbes Energy Services Ltd. 9% 6/15/19 | 3,470 | 3,548 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Energy - continued | ||||
Forum Energy Technologies, Inc. 6.25% 10/1/21 (g) | $ 1,090 | $ 1,158 | ||
Genesis Energy LP/Genesis Energy Finance Corp. 5.75% 2/15/21 | 845 | 879 | ||
Gulfmark Offshore, Inc. 6.375% 3/15/22 | 560 | 581 | ||
Kinder Morgan Holding Co. LLC 5% 2/15/21 (g) | 1,695 | 1,695 | ||
Kodiak Oil & Gas Corp.: | ||||
5.5% 1/15/21 | 790 | 814 | ||
8.125% 12/1/19 | 2,010 | 2,231 | ||
Laredo Petroleum Holdings, Inc. 5.625% 1/15/22 (g) | 2,995 | 3,055 | ||
Markwest Energy Partners LP/Markwest Energy Finance Corp. 5.5% 2/15/23 | 995 | 1,032 | ||
Offshore Group Investment Ltd.: | ||||
7.125% 4/1/23 | 2,445 | 2,408 | ||
7.5% 11/1/19 | 11,570 | 12,033 | ||
Pacific Drilling SA 5.375% 6/1/20 (g) | 540 | 525 | ||
Pacific Drilling V Ltd. 7.25% 12/1/17 (g) | 1,985 | 2,124 | ||
Precision Drilling Corp.: | ||||
6.5% 12/15/21 | 495 | 536 | ||
6.625% 11/15/20 | 2,205 | 2,370 | ||
QR Energy LP/QRE Finance Corp. 9.25% 8/1/20 | 1,080 | 1,156 | ||
SemGroup Corp. 7.5% 6/15/21 | 1,625 | 1,763 | ||
Star Gas Partners LP/Star Gas Finance Co. 8.875% 12/1/17 | 1,324 | 1,403 | ||
Summit Midstream Holdings LLC 7.5% 7/1/21 | 810 | 873 | ||
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp. 7.375% 2/1/20 (g) | 845 | 896 | ||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 6.375% 8/1/22 | 908 | 972 | ||
Tesoro Corp. 5.125% 4/1/24 | 1,915 | 1,905 | ||
Tesoro Logistics LP/Tesoro Logistics Finance Corp. 5.875% 10/1/20 | 425 | 445 | ||
Ultra Petroleum Corp. 5.75% 12/15/18 (g) | 2,090 | 2,200 | ||
Unit Corp. 6.625% 5/15/21 | 7,190 | 7,621 | ||
Western Refining, Inc. 6.25% 4/1/21 | 905 | 941 | ||
| 109,815 | |||
Entertainment/Film - 0.8% | ||||
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp.: | ||||
5.25% 2/15/22 (g) | 470 | 482 | ||
5.625% 2/15/24 (g) | 510 | 524 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Entertainment/Film - continued | ||||
Cinemark U.S.A., Inc.: | ||||
4.875% 6/1/23 | $ 2,110 | $ 2,047 | ||
5.125% 12/15/22 | 570 | 570 | ||
7.375% 6/15/21 | 1,085 | 1,204 | ||
Lions Gate Entertainment Corp. 5.25% 8/1/18 (g) | 6,095 | 6,125 | ||
Livent, Inc. yankee 9.375% 10/15/04 (d) | 11,100 | 0 | ||
NAI Entertainment Holdings LLC/NAI Entertainment Finance Corp. 5% 8/1/18 (g) | 1,425 | 1,486 | ||
Regal Entertainment Group: | ||||
5.75% 6/15/23 | 3,725 | 3,800 | ||
5.75% 2/1/25 | 555 | 549 | ||
| 16,787 | |||
Environmental - 0.3% | ||||
Clean Harbors, Inc. 5.125% 6/1/21 | 1,180 | 1,193 | ||
Covanta Holding Corp.: | ||||
5.875% 3/1/24 | 1,530 | 1,559 | ||
6.375% 10/1/22 | 1,355 | 1,450 | ||
7.25% 12/1/20 | 1,094 | 1,199 | ||
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (g) | 350 | 371 | ||
Tervita Corp.: | ||||
9.75% 11/1/19 (g) | 210 | 190 | ||
10.875% 2/15/18 (g) | 170 | 163 | ||
| 6,125 | |||
Food & Drug Retail - 1.8% | ||||
BI-LO LLC/BI-LO Finance Corp. 9.25% 2/15/19 (g) | 1,700 | 1,849 | ||
JBS Investments GmbH: | ||||
7.25% 4/3/24 (g) | 1,905 | 1,918 | ||
7.75% 10/28/20 (g) | 4,855 | 5,165 | ||
Nutritional Sourcing Corp. 10.125% 8/1/09 (d) | 7,424 | 0 | ||
Pinnacle Merger Sub, Inc. 9.5% 10/1/23 (g) | 1,375 | 1,519 | ||
Rite Aid Corp.: | ||||
6.75% 6/15/21 | 11,895 | 12,936 | ||
6.875% 12/15/28 (g) | 5,785 | 5,799 | ||
7.7% 2/15/27 | 6,400 | 7,040 | ||
Tops Markets LLC 8.875% 12/15/17 | 1,095 | 1,194 | ||
| 37,420 | |||
Food/Beverage/Tobacco - 1.2% | ||||
ESAL GmbH 6.25% 2/5/23 (g) | 4,565 | 4,360 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Food/Beverage/Tobacco - continued | ||||
FAGE Dairy Industry SA/FAGE U.S.A. Dairy Industry, Inc. 9.875% 2/1/20 (g) | $ 1,765 | $ 1,906 | ||
Hawk Acquisition Sub, Inc. 4.25% 10/15/20 (g) | 12,790 | 12,605 | ||
Post Holdings, Inc. 6.75% 12/1/21 (g) | 5,380 | 5,636 | ||
| 24,507 | |||
Gaming - 2.3% | ||||
Caesars Entertainment Operating Co., Inc. 8.5% 2/15/20 | 3,125 | 2,695 | ||
Caesars Growth Propeties Holdings LLC/Caesars Growth Properties Finance, Inc. 9.375% 5/1/22 (g) | 3,640 | 3,631 | ||
Caesars Operating Escrow LLC/Caesars Escrow Corp. 9% 2/15/20 | 1,445 | 1,261 | ||
GLP Capital LP/GLP Financing II, Inc.: | ||||
4.375% 11/1/18 (g) | 820 | 849 | ||
4.875% 11/1/20 (g) | 2,140 | 2,210 | ||
5.375% 11/1/23 (g) | 1,700 | 1,751 | ||
Golden Nugget Escrow, Inc. 8.5% 12/1/21 (g) | 10,735 | 11,030 | ||
Graton Economic Development Authority 9.625% 9/1/19 (g) | 1,730 | 1,977 | ||
MCE Finance Ltd. 5% 2/15/21 (g) | 2,100 | 2,095 | ||
MGM Mirage, Inc.: | ||||
6.875% 4/1/16 | 820 | 895 | ||
8.625% 2/1/19 | 5,000 | 5,969 | ||
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc.: | ||||
8% 10/1/20 (g) | 1,140 | 1,186 | ||
11% 10/1/21 (g) | 1,575 | 1,638 | ||
Pinnacle Entertainment, Inc. 7.75% 4/1/22 | 700 | 760 | ||
Studio City Finance Ltd. 8.5% 12/1/20 (g) | 8,920 | 9,946 | ||
| 47,893 | |||
Healthcare - 6.0% | ||||
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp.: | ||||
6% 10/15/21 | 685 | 719 | ||
7.75% 2/15/19 | 4,441 | 4,763 | ||
Catamaran Corp. 4.75% 3/15/21 (Reg. S) | 1,965 | 1,980 | ||
DaVita HealthCare Partners, Inc. 5.75% 8/15/22 | 1,970 | 2,086 | ||
Forest Laboratories, Inc. 4.375% 2/1/19 (g) | 3,700 | 3,936 | ||
Grifols Worldwide Operations Ltd. 5.25% 4/1/22 (g) | 2,915 | 2,959 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Healthcare - continued | ||||
HCA Holdings, Inc.: | ||||
4.75% 5/1/23 | $ 4,475 | $ 4,397 | ||
5% 3/15/24 | 3,060 | 3,037 | ||
5.875% 3/15/22 | 8,635 | 9,261 | ||
6.25% 2/15/21 | 2,265 | 2,392 | ||
6.5% 2/15/20 | 7,640 | 8,519 | ||
7.5% 2/15/22 | 5,095 | 5,811 | ||
7.75% 5/15/21 | 11,679 | 12,832 | ||
HealthSouth Corp. 5.75% 11/1/24 | 1,275 | 1,329 | ||
IMS Health, Inc. 6% 11/1/20 (g) | 1,175 | 1,240 | ||
Legend Acquisition Sub, Inc. 10.75% 8/15/20 (g) | 3,260 | 196 | ||
Omega Healthcare Investors, Inc.: | ||||
5.875% 3/15/24 | 410 | 428 | ||
6.75% 10/15/22 | 2,631 | 2,861 | ||
Sabra Health Care LP/Sabra Capital Corp. 5.5% 2/1/21 | 1,080 | 1,131 | ||
Salix Pharmaceuticals Ltd. 6% 1/15/21 (g) | 620 | 665 | ||
Service Corp. International 5.375% 1/15/22 | 815 | 831 | ||
Tenet Healthcare Corp.: | ||||
4.375% 10/1/21 | 8,990 | 8,619 | ||
4.5% 4/1/21 | 1,670 | 1,621 | ||
4.75% 6/1/20 | 1,665 | 1,673 | ||
5% 3/1/19 (g) | 1,810 | 1,815 | ||
6% 10/1/20 (g) | 1,890 | 1,985 | ||
6.75% 2/1/20 | 1,800 | 1,890 | ||
8.125% 4/1/22 | 7,570 | 8,403 | ||
Valeant Pharmaceuticals International: | ||||
5.625% 12/1/21 (g) | 1,395 | 1,451 | ||
6.75% 8/15/18 (g) | 5,800 | 6,279 | ||
7.25% 7/15/22 (g) | 315 | 343 | ||
7.5% 7/15/21 (g) | 9,930 | 11,072 | ||
VPI Escrow Corp. 6.375% 10/15/20 (g) | 2,380 | 2,559 | ||
VWR Funding, Inc. 7.25% 9/15/17 | 4,375 | 4,692 | ||
| 123,775 | |||
Homebuilders/Real Estate - 1.1% | ||||
Beazer Homes U.S.A., Inc. 7.25% 2/1/23 | 1,260 | 1,298 | ||
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 6.125% 7/1/22 (g) | 1,265 | 1,293 | ||
Brookfield Residential Properties, Inc. 6.5% 12/15/20 (g) | 1,000 | 1,053 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Homebuilders/Real Estate - continued | ||||
CBRE Group, Inc.: | ||||
5% 3/15/23 | $ 4,475 | $ 4,509 | ||
6.625% 10/15/20 | 1,214 | 1,290 | ||
Howard Hughes Corp. 6.875% 10/1/21 (g) | 3,530 | 3,795 | ||
Kennedy-Wilson, Inc. 5.875% 4/1/24 | 1,395 | 1,393 | ||
Realogy Group LLC / Realogy Co.-Issuer Corp. 4.5% 4/15/19 (g) | 3,085 | 3,100 | ||
William Lyon Homes, Inc. 8.5% 11/15/20 | 2,170 | 2,420 | ||
Woodside Homes Co. LLC/Woodside Homes Finance, Inc. 6.75% 12/15/21 (g) | 2,215 | 2,259 | ||
| 22,410 | |||
Hotels - 0.5% | ||||
Choice Hotels International, Inc. 5.75% 7/1/22 | 615 | 650 | ||
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 5.625% 10/15/21 (g) | 7,555 | 7,876 | ||
Playa Resorts Holding BV 8% 8/15/20 (g) | 695 | 751 | ||
| 9,277 | |||
Insurance - 0.1% | ||||
Hockey Merger Sub 2, Inc. 7.875% 10/1/21 (g) | 2,765 | 2,952 | ||
Leisure - 0.1% | ||||
Royal Caribbean Cruises Ltd. 5.25% 11/15/22 | 1,000 | 1,020 | ||
Metals/Mining - 0.7% | ||||
Alpha Natural Resources, Inc.: | ||||
6% 6/1/19 | 3,730 | 2,835 | ||
6.25% 6/1/21 | 4,245 | 3,131 | ||
9.75% 4/15/18 | 1,770 | 1,664 | ||
Bluescope Steel Ltd./Bluescope Steel Finance 7.125% 5/1/18 (g) | 415 | 446 | ||
Calcipar SA 6.875% 5/1/18 (g) | 1,070 | 1,132 | ||
FMG Resources (August 2006) Pty Ltd. 6% 4/1/17 (g) | 520 | 547 | ||
Prince Mineral Holding Corp. 11.5% 12/15/19 (g) | 655 | 735 | ||
Signode Industrial Group Lux SA/Signode Industrial Group U.S., Inc. 6.375% 5/1/22 (g) | 1,040 | 1,050 | ||
Walter Energy, Inc.: | ||||
9.5% 10/15/19 (g) | 1,885 | 1,918 | ||
11% 4/1/20 pay-in-kind (g)(j) | 1,545 | 1,360 | ||
| 14,818 | |||
Paper - 0.1% | ||||
Clearwater Paper Corp. 4.5% 2/1/23 | 2,045 | 1,979 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Publishing/Printing - 1.4% | ||||
Griffey Intermediate, Inc./Griffey Finance Sub LLC 7% 10/15/20 (g) | $ 4,610 | $ 4,126 | ||
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance 10% 4/1/21 (g) | 14,305 | 16,379 | ||
R.R. Donnelley & Sons Co.: | ||||
6% 4/1/24 | 960 | 967 | ||
6.5% 11/15/23 | 2,890 | 3,042 | ||
Time, Inc. 5.75% 4/15/22 (g) | 4,260 | 4,249 | ||
| 28,763 | |||
Railroad - 0.2% | ||||
Florida East Coast Holdings Corp. 6.75% 5/1/19 (g) | 1,090 | 1,120 | ||
Jurassic Holdings III, Inc. 6.875% 2/15/21 (Reg. S) (g) | 1,920 | 1,987 | ||
Ultrapetrol (Bahamas) Ltd. 8.875% 6/15/21 | 1,285 | 1,401 | ||
| 4,508 | |||
Restaurants - 0.4% | ||||
Landry's Acquisition Co. 9.375% 5/1/20 (g) | 4,040 | 4,454 | ||
Landry's Holdings II, Inc. 10.25% 1/1/18 (g) | 4,205 | 4,499 | ||
| 8,953 | |||
Services - 2.5% | ||||
Ahern Rentals, Inc. 9.5% 6/15/18 (g) | 470 | 523 | ||
APX Group, Inc.: | ||||
6.375% 12/1/19 | 8,560 | 8,710 | ||
8.75% 12/1/20 | 11,350 | 11,577 | ||
ARAMARK Corp. 5.75% 3/15/20 | 2,195 | 2,302 | ||
Audatex North America, Inc.: | ||||
6% 6/15/21 (g) | 8,190 | 8,784 | ||
6.125% 11/1/23 (g) | 590 | 631 | ||
Blueline Rent Finance Corp./Volvo 7% 2/1/19 (g) | 815 | 872 | ||
FTI Consulting, Inc. 6% 11/15/22 | 2,450 | 2,499 | ||
Garda World Security Corp.: | ||||
7.25% 11/15/21 (g) | 2,435 | 2,566 | ||
7.25% 11/15/21 (g) | 920 | 969 | ||
Hertz Corp.: | ||||
5.875% 10/15/20 | 990 | 1,049 | ||
6.25% 10/15/22 | 1,315 | 1,407 | ||
Laureate Education, Inc. 9.25% 9/1/19 (g) | 6,520 | 6,879 | ||
NES Rentals Holdings, Inc. 7.875% 5/1/18 (g) | 600 | 639 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Services - continued | ||||
TMS International Corp. 7.625% 10/15/21 (g) | $ 420 | $ 448 | ||
TransUnion Holding Co., Inc. 9.625% 6/15/18 pay-in-kind (j) | 1,255 | 1,322 | ||
| 51,177 | |||
Shipping - 1.1% | ||||
CEVA Group PLC: | ||||
7% 3/1/21 (g) | 630 | 647 | ||
9% 9/1/21 (g) | 575 | 591 | ||
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc. 8.125% 11/15/21 (g) | 3,070 | 3,200 | ||
Navios Maritime Holdings, Inc.: | ||||
7.375% 1/15/22 (g) | 7,940 | 8,019 | ||
8.125% 2/15/19 | 2,489 | 2,526 | ||
Navios South American Logistics, Inc./Navios Logistics Finance U.S., Inc. 7.25% 5/1/22 (g) | 2,020 | 2,026 | ||
Teekay Corp. 8.5% 1/15/20 | 195 | 225 | ||
TRAC Intermodal LLC/TRAC Intermodal Corp. 11% 8/15/19 | 1,475 | 1,687 | ||
Western Express, Inc. 12.5% 4/15/15 (g) | 6,070 | 4,537 | ||
| 23,458 | |||
Steel - 0.8% | ||||
JMC Steel Group, Inc. 8.25% 3/15/18 (g) | 7,870 | 7,949 | ||
Ryerson, Inc./Joseph T Ryerson & Son, Inc.: | ||||
9% 10/15/17 | 5,550 | 5,959 | ||
11.25% 10/15/18 | 1,855 | 2,082 | ||
| 15,990 | |||
Super Retail - 0.4% | ||||
Asbury Automotive Group, Inc. 8.375% 11/15/20 | 788 | 883 | ||
Claire's Stores, Inc. 7.75% 6/1/20 (g) | 470 | 321 | ||
CST Brands, Inc. 5% 5/1/23 | 525 | 520 | ||
JC Penney Corp., Inc.: | ||||
5.65% 6/1/20 | 2,375 | 1,906 | ||
5.75% 2/15/18 | 703 | 583 | ||
7.4% 4/1/37 | 775 | 577 | ||
Sally Holdings LLC 5.5% 11/1/23 | 925 | 941 | ||
Sonic Automotive, Inc.: | ||||
5% 5/15/23 | 315 | 309 | ||
7% 7/15/22 | 1,390 | 1,532 | ||
| 7,572 | |||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Technology - 4.3% | ||||
Activision Blizzard, Inc. 6.125% 9/15/23 (g) | $ 2,075 | $ 2,257 | ||
ADT Corp. 6.25% 10/15/21 (g) | 1,895 | 1,976 | ||
Ancestry.com, Inc. 9.625% 10/15/18 pay-in-kind (g)(j) | 3,500 | 3,666 | ||
Avaya, Inc.: | ||||
7% 4/1/19 (g) | 1,817 | 1,808 | ||
10.5% 3/1/21 (g) | 2,095 | 1,907 | ||
BMC Software Finance, Inc. 8.125% 7/15/21 (g) | 10,135 | 10,616 | ||
Boxer Parent Co., Inc. 9% 10/15/19 pay-in-kind (g)(j) | 3,215 | 3,151 | ||
Ceridian Corp. 8.875% 7/15/19 (g) | 1,755 | 1,999 | ||
Ceridian HCM Holding, Inc. 11% 3/15/21 (g) | 930 | 1,074 | ||
CommScope Holding Co., Inc. 6.625% 6/1/20 pay-in-kind (g)(j) | 920 | 987 | ||
Compiler Finance Sub, Inc. 7% 5/1/21 (g) | 1,610 | 1,626 | ||
Entegris, Inc. 6% 4/1/22 (g) | 635 | 643 | ||
First Data Corp.: | ||||
6.75% 11/1/20 (g) | 5,350 | 5,711 | ||
11.25% 1/15/21 | 4,820 | 5,507 | ||
11.75% 8/15/21 | 1,310 | 1,395 | ||
Infor Software Parent LLC/Infor Software Parent, Inc. 7.125% 5/1/21 pay-in-kind (g)(j) | 950 | 955 | ||
Lucent Technologies, Inc.: | ||||
6.45% 3/15/29 | 12,334 | 11,810 | ||
6.5% 1/15/28 | 5,415 | 5,198 | ||
Micron Technology, Inc. 5.875% 2/15/22 (g) | 1,520 | 1,604 | ||
Quad/Graphics, Inc. 7% 5/1/22 (g) | 2,275 | 2,275 | ||
Spansion LLC 11.25% 1/15/16 (d)(g) | 15,415 | 0 | ||
SunGard Data Systems, Inc. 6.625% 11/1/19 | 3,600 | 3,771 | ||
VeriSign, Inc. 4.625% 5/1/23 | 5,520 | 5,285 | ||
Viasystems, Inc. 7.875% 5/1/19 (g) | 2,945 | 3,136 | ||
WideOpenWest Finance LLC/WideOpenWest Capital Corp.: | ||||
10.25% 7/15/19 | 5,210 | 5,887 | ||
10.25% 7/15/19 (g) | 410 | 463 | ||
13.375% 10/15/19 | 2,840 | 3,337 | ||
| 88,044 | |||
Telecommunications - 8.7% | ||||
Alcatel-Lucent U.S.A., Inc.: | ||||
4.625% 7/1/17 (g) | 1,435 | 1,469 | ||
6.75% 11/15/20 (g) | 3,390 | 3,560 | ||
Altice Financing SA 6.5% 1/15/22 (g) | 895 | 938 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Telecommunications - continued | ||||
Altice Finco SA: | ||||
8.125% 1/15/24 (g) | $ 540 | $ 583 | ||
9.875% 12/15/20 (g) | 945 | 1,083 | ||
Broadview Networks Holdings, Inc. 10.5% 11/15/17 | 2,915 | 2,835 | ||
Citizens Communications Co. 7.875% 1/15/27 | 4,949 | 4,980 | ||
Clearwire Communications LLC/Clearwire Finance, Inc. 14.75% 12/1/16 (g) | 5,300 | 6,983 | ||
Columbus International, Inc. 7.375% 3/30/21 (g) | 5,560 | 5,810 | ||
Digicel Group Ltd.: | ||||
6% 4/15/21 (g) | 4,580 | 4,637 | ||
7% 2/15/20 (g) | 425 | 443 | ||
7.125% 4/1/22 (g) | 3,850 | 3,869 | ||
8.25% 9/1/17 (g) | 1,025 | 1,063 | ||
8.25% 9/30/20 (g) | 6,645 | 7,077 | ||
DigitalGlobe, Inc. 5.25% 2/1/21 | 695 | 678 | ||
Eileme 1 AB 14.25% 8/15/20 pay-in-kind (g)(j) | 4,027 | 4,188 | ||
Eileme 2 AB 11.625% 1/31/20 (g) | 2,605 | 3,113 | ||
Intelsat Jackson Holdings SA: | ||||
5.5% 8/1/23 (g) | 5,655 | 5,535 | ||
6.625% 12/15/22 (g) | 3,925 | 4,033 | ||
6.625% 12/15/22 (Reg. S) | 3,945 | 4,053 | ||
7.5% 4/1/21 | 5,730 | 6,282 | ||
Intelsat Luxembourg SA: | ||||
7.75% 6/1/21 | 8,204 | 8,553 | ||
8.125% 6/1/23 | 9,595 | 10,075 | ||
Level 3 Communications, Inc. 8.875% 6/1/19 | 695 | 763 | ||
Level 3 Financing, Inc.: | ||||
6.125% 1/15/21 (g) | 2,395 | 2,515 | ||
7% 6/1/20 | 2,365 | 2,554 | ||
NII Capital Corp. 7.625% 4/1/21 | 1,466 | 436 | ||
Pacnet Ltd. 9% 12/12/18 (g) | 200 | 214 | ||
Satelites Mexicanos SA de CV 9.5% 5/15/17 | 710 | 746 | ||
SBA Communications Corp. 5.625% 10/1/19 | 3,075 | 3,225 | ||
Sprint Capital Corp.: | ||||
6.9% 5/1/19 | 4,761 | 5,225 | ||
8.75% 3/15/32 | 5,730 | 6,410 | ||
Sprint Communications, Inc.: | ||||
6% 12/1/16 | 6,729 | 7,369 | ||
6% 11/15/22 | 17,894 | 18,028 | ||
9% 11/15/18 (g) | 5,500 | 6,703 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
Telecommunications - continued | ||||
Sprint Corp.: | ||||
7.125% 6/15/24 (g) | $ 2,580 | $ 2,709 | ||
7.875% 9/15/23 (g) | 4,245 | 4,680 | ||
T-Mobile U.S.A., Inc.: | ||||
5.25% 9/1/18 | 1,565 | 1,649 | ||
6.25% 4/1/21 | 3,295 | 3,509 | ||
6.464% 4/28/19 | 705 | 747 | ||
6.542% 4/28/20 | 2,465 | 2,650 | ||
6.625% 4/1/23 | 4,925 | 5,270 | ||
6.633% 4/28/21 | 2,225 | 2,403 | ||
6.731% 4/28/22 | 1,645 | 1,775 | ||
6.836% 4/28/23 | 640 | 689 | ||
Wind Acquisition Finance SA: | ||||
7.25% 2/15/18 (g) | 2,581 | 2,717 | ||
7.375% 4/23/21 (g) | 3,770 | 3,883 | ||
| 178,709 | |||
Textiles & Apparel - 0.0% | ||||
SIWF Merger Sub, Inc./Springs Industries, Inc. 6.25% 6/1/21 (g) | 590 | 614 | ||
TOTAL NONCONVERTIBLE BONDS | 1,414,019 | |||
TOTAL CORPORATE BONDS (Cost $1,370,572) |
|
Common Stocks - 15.8% | |||
Shares |
| ||
Aerospace - 0.3% | |||
Triumph Group, Inc. | 85,000 | 5,509 | |
Air Transportation - 0.5% | |||
American Airlines Group, Inc. | 100,000 | 3,507 | |
Delta Air Lines, Inc. | 200,000 | 7,366 | |
| 10,873 | ||
Automotive - 0.8% | |||
Delphi Automotive PLC | 77,122 | 5,155 | |
General Motors Co. | 274,238 | 9,456 | |
General Motors Co.: | |||
warrants 7/10/16 (a) | 7,547 | 187 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
Automotive - continued | |||
General Motors Co.: - continued | |||
warrants 7/10/19 (a) | 7,547 | $ 129 | |
Motors Liquidation Co. GUC Trust (a) | 39,254 | 1,081 | |
| 16,008 | ||
Banks & Thrifts - 0.3% | |||
JPMorgan Chase & Co. | 100,000 | 5,598 | |
Washington Mutual, Inc. (a) | 505,500 | 0 | |
WMI Holdings Corp. (a) | 17,318 | 52 | |
| 5,650 | ||
Broadcasting - 0.6% | |||
Cumulus Media, Inc. Class A (a) | 550,600 | 3,529 | |
Gray Television, Inc. (a) | 494,070 | 5,558 | |
Sinclair Broadcast Group, Inc. Class A | 100,000 | 2,673 | |
| 11,760 | ||
Building Materials - 0.1% | |||
Gibraltar Industries, Inc. (a) | 141,340 | 2,414 | |
Cable TV - 0.3% | |||
Time Warner Cable, Inc. | 41,300 | 5,842 | |
Capital Goods - 0.1% | |||
Walter Energy, Inc. (f) | 250,000 | 1,800 | |
Chemicals - 0.6% | |||
Axiall Corp. | 100,000 | 4,660 | |
LyondellBasell Industries NV Class A | 84,795 | 7,844 | |
| 12,504 | ||
Consumer Products - 0.3% | |||
Whirlpool Corp. | 40,000 | 6,135 | |
Containers - 0.2% | |||
Graphic Packaging Holding Co. (a) | 417,874 | 4,287 | |
Diversified Financial Services - 0.7% | |||
Citigroup, Inc. | 116,564 | 5,585 | |
The Blackstone Group LP | 300,000 | 8,859 | |
| 14,444 | ||
Energy - 1.3% | |||
Apache Corp. | 12,471 | 1,082 | |
CVR Refining, LP | 247,000 | 5,911 | |
EP Energy Corp. | 141,500 | 2,749 | |
Oasis Petroleum, Inc. (a) | 125,000 | 5,814 | |
Ocean Rig UDW, Inc. (United States) (a) | 235,000 | 3,878 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
Energy - continued | |||
The Williams Companies, Inc. | 90,000 | $ 3,795 | |
Vantage Drilling Co. (a) | 2,000,000 | 3,340 | |
| 26,569 | ||
Food/Beverage/Tobacco - 0.7% | |||
Carlyle Group LP | 72,700 | 2,332 | |
Dean Foods Co. | 400,000 | 6,336 | |
Monster Beverage Corp. (a) | 100,000 | 6,696 | |
| 15,364 | ||
Gaming - 0.9% | |||
Gaming & Leisure Properties | 119,574 | 4,394 | |
Las Vegas Sands Corp. | 130,000 | 10,287 | |
PB Investor I LLC | 11,653 | 26 | |
Station Holdco LLC (a)(k)(m) | 1,531,479 | 3,415 | |
Station Holdco LLC: | |||
unit (a)(k)(m) | 3,411 | 1 | |
warrants 6/15/18 (a)(k)(m) | 96,849 | 17 | |
| 18,140 | ||
Healthcare - 1.2% | |||
Express Scripts Holding Co. (a) | 167,600 | 11,159 | |
Tenet Healthcare Corp. (a) | 163,675 | 7,378 | |
Universal Health Services, Inc. Class B | 85,000 | 6,952 | |
| 25,489 | ||
Homebuilders/Real Estate - 0.1% | |||
Realogy Holdings Corp. (a) | 46,400 | 1,951 | |
Hotels - 0.4% | |||
Extended Stay America, Inc. unit | 26,700 | 575 | |
Hyatt Hotels Corp. Class A (a) | 145,000 | 8,161 | |
| 8,736 | ||
Insurance - 0.3% | |||
H&R Block, Inc. | 200,000 | 5,684 | |
Leisure - 0.2% | |||
Town Sports International Holdings, Inc. | 564,202 | 3,955 | |
Metals/Mining - 0.5% | |||
Alpha Natural Resources, Inc. (a)(f) | 750,000 | 3,225 | |
AngloGold Ashanti Ltd. sponsored ADR | 87,174 | 1,578 | |
OCI Resources LP | 212,610 | 4,667 | |
| 9,470 | ||
Publishing/Printing - 0.0% | |||
Houghton Mifflin Harcourt Co. warrants 6/22/19 (a)(m) | 4,323 | 6 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
Restaurants - 1.0% | |||
Bloomin' Brands, Inc. (a) | 272,900 | $ 5,818 | |
Dunkin' Brands Group, Inc. | 171,900 | 7,823 | |
Yum! Brands, Inc. | 100,000 | 7,699 | |
| 21,340 | ||
Services - 1.1% | |||
ARAMARK Holdings Corp. | 128,900 | 3,634 | |
Hertz Global Holdings, Inc. (a) | 250,000 | 7,118 | |
KAR Auction Services, Inc. | 317,600 | 9,458 | |
WP Rocket Holdings, Inc. | 1,964,861 | 2,456 | |
| 22,666 | ||
Shipping - 0.3% | |||
Ship Finance International Ltd. (NY Shares) | 300,000 | 5,289 | |
Ultrapetrol (Bahamas) Ltd. (a) | 7,916 | 22 | |
| 5,311 | ||
Super Retail - 0.6% | |||
Dollar General Corp. (a) | 100,000 | 5,644 | |
Liberty Interactive Corp. Series A (a) | 250,000 | 7,265 | |
| 12,909 | ||
Technology - 2.1% | |||
CDW Corp. | 300,000 | 8,457 | |
Facebook, Inc. Class A (a) | 76,094 | 4,549 | |
NXP Semiconductors NV (a) | 125,000 | 7,453 | |
Skyworks Solutions, Inc. | 200,000 | 8,210 | |
SoftBank Corp. ADR | 150,000 | 5,580 | |
Spansion, Inc. Class A (a) | 3,593 | 64 | |
Xerox Corp. | 710,000 | 8,584 | |
| 42,897 | ||
Telecommunications - 0.3% | |||
Broadview Networks Holdings, Inc. (a) | 189,475 | 474 | |
Pendrell Corp. (a) | 37,472 | 62 | |
Verizon Communications, Inc. | 108,000 | 5,047 | |
| 5,583 | ||
Textiles & Apparel - 0.0% | |||
Arena Brands Holding Corp. Class B (a)(m) | 42,253 | 259 | |
TOTAL COMMON STOCKS (Cost $272,059) |
| ||
Nonconvertible Preferred Stocks - 1.0% | |||
Shares | Value (000s) | ||
Banks & Thrifts - 0.6% | |||
Ally Financial, Inc. 7.00% (g) | 11,491 | $ 11,380 | |
Diversified Financial Services - 0.4% | |||
GMAC Capital Trust I Series 2, 8.125% | 320,244 | 8,804 | |
Services - 0.0% | |||
WP Rocket Holdings, Inc. 15.00% (a) | 1,437,822 | 0 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $14,174) |
|
Bank Loan Obligations - 8.5% | ||||
| Principal Amount (000s) (e) |
| ||
Aerospace - 0.0% | ||||
TransDigm, Inc. Tranche C, term loan 3.75% 2/28/20 (j) | $ 868 | 865 | ||
Automotive - 0.0% | ||||
Tower Automotive Holdings U.S.A. LLC term loan 4% 4/23/20 (j) | 525 | 522 | ||
Broadcasting - 0.5% | ||||
Cumulus Media Holdings, Inc. Tranch B 1LN, term loan 4.25% 12/23/20 (j) | 5,798 | 5,769 | ||
ION Media Networks, Inc. Tranche B, term loan 5% 12/18/20 (j) | 1,721 | 1,729 | ||
NEP/NCP Holdco, Inc. Tranche B, term loan 4.25% 1/22/20 (j) | 845 | 844 | ||
TWCC Holding Corp. Tranche 2LN, term loan 7% 6/26/20 (j) | 1,200 | 1,196 | ||
| 9,538 | |||
Chemicals - 0.1% | ||||
Royal Adhesives & Sealants LLC: | ||||
Tranche 2LN, term loan 9.75% 1/31/19 (j) | 1,960 | 1,989 | ||
Tranche B 1LN, term loan 5.5% 7/31/18 (j) | 207 | 207 | ||
| 2,196 | |||
Consumer Products - 0.3% | ||||
Bauer Performance Sports Ltd. Tranche B, term loan 4.5% 4/15/21 (j) | 1,740 | 1,738 | ||
Revlon Consumer Products Corp. term loan 4% 8/19/19 (j) | 3,222 | 3,218 | ||
Spectrum Brands Holdings, Inc. Tranche C, term loan 3.5% 9/4/19 (j) | 408 | 407 | ||
| 5,363 | |||
Bank Loan Obligations - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Containers - 0.1% | ||||
Ardagh Holdings U.S.A., Inc. Tranche B, term loan 4.25% 12/17/19 (j) | $ 214 | $ 213 | ||
Berry Plastics Corp. Tranche E, term loan 3.75% 1/6/21 (j) | 2,025 | 2,010 | ||
| 2,223 | |||
Diversified Financial Services - 0.5% | ||||
AlixPartners LLP Tranche B 2LN, term loan 4% 7/10/20 (j) | 1,269 | 1,266 | ||
Delos Finance SARL Tranche B LN, term loan 3.5% 3/6/21 (j) | 3,105 | 3,105 | ||
Fly Funding II Sarl Tranche B, term loan 4.5% 8/9/19 (j) | 301 | 302 | ||
HarbourVest Partners LLC Tranche B, term loan 3.25% 2/4/21 (j) | 413 | 410 | ||
TransUnion LLC Tranche B, term loan 4% 4/9/21 (j) | 5,340 | 5,313 | ||
| 10,396 | |||
Diversified Media - 0.5% | ||||
Checkout Holding Corp.: | ||||
Tranche 2LN, term loan 7.75% 4/9/22 (j) | 1,080 | 1,072 | ||
Tranche B 1LN, term loan 4.5% 4/9/21 (j) | 2,280 | 2,269 | ||
McGraw-Hill School Education Tranche B, term loan 6.25% 12/18/19 (j) | 6,239 | 6,271 | ||
| 9,612 | |||
Electric Utilities - 0.3% | ||||
Calpine Construction Finance Co. LP Tranche B 2LN, term loan 3.25% 1/31/22 (j) | 5,915 | 5,789 | ||
La Frontera Generation, LLC Tranche B, term loan 4.5% 9/30/20 (j) | 1,248 | 1,248 | ||
| 7,037 | |||
Energy - 0.8% | ||||
Atlantic Power Ltd. Partnership Tranche B LN, term loan 4.75% 2/24/21 (j) | 435 | 437 | ||
Fieldwood Energy, LLC Tranche 2LN, term loan 8.375% 9/30/20 (j) | 11,180 | 11,515 | ||
GIM Channelview Cogeneration LLC Tranche B, term loan 4.25% 5/8/20 (j) | 203 | 203 | ||
Panda Sherman Power, LLC term loan 9% 9/14/18 (j) | 845 | 864 | ||
Panda Temple Power, LLC term loan 7.25% 4/3/19 (j) | 400 | 411 | ||
Sheridan Investment Partners I term loan 4.25% 12/16/20 (j) | 678 | 678 | ||
Sheridan Production Partners I: | ||||
Tranche A, term loan 4.25% 12/16/20 (j) | 94 | 94 | ||
Bank Loan Obligations - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Energy - continued | ||||
Sheridan Production Partners I: - continued | ||||
Tranche M, term loan 4.25% 12/16/20 (j) | $ 35 | $ 35 | ||
TPF II LC LLC Tranche B, term loan 6.5% 8/21/19 (j) | 2,853 | 2,878 | ||
| 17,115 | |||
Entertainment/Film - 0.0% | ||||
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. Tranche B, term loan 3% 1/31/21 (j) | 325 | 324 | ||
Livent, Inc.: | ||||
Tranche A, term loan 18% 1/15/49 pay-in-kind | CAD | 289 | 264 | |
Tranche B, term loan 18% 1/15/49 pay-in-kind | CAD | 176 | 160 | |
| 748 | |||
Environmental - 0.0% | ||||
Darling International, Inc. Tranche B, term loan 3.25% 1/6/21 (j) | 270 | 269 | ||
Food & Drug Retail - 0.4% | ||||
Rite Aid Corp.: | ||||
Tranche 2 LN2, term loan 4.875% 6/21/21 (j) | 6,215 | 6,277 | ||
Tranche 2LN, term loan 5.75% 8/21/20 (j) | 200 | 204 | ||
Smart & Final, Inc. Tranche B, term loan 4.75% 11/15/19 (j) | 822 | 820 | ||
Sprouts Farmers Market LLC Tranche B, term loan 4% 4/23/20 (j) | 324 | 324 | ||
| 7,625 | |||
Food/Beverage/Tobacco - 0.1% | ||||
Arysta Lifescience SPC LLC: | ||||
Tranche B 1LN, term loan 4.5% 5/29/20 (j) | 680 | 679 | ||
Tranche B 2LN, term loan 8.25% 11/30/20 (j) | 585 | 595 | ||
Del Monte Foods Consumer Products: | ||||
Tranche 2LN, term loan 8.25% 8/18/21 (j) | 595 | 588 | ||
Tranche B 1LN, term loan 4.2531% 2/18/21 (j) | 1,182 | 1,178 | ||
| 3,040 | |||
Gaming - 0.3% | ||||
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 4/10/21 (l) | 775 | 773 | ||
Golden Nugget, Inc. Tranche B, term loan: | ||||
5.5% 11/21/19 | 443 | 453 | ||
5.5% 11/21/19 (j) | 190 | 194 | ||
Graton Economic Development Authority Tranche B, term loan 9% 8/22/18 (j) | 980 | 1,022 | ||
Bank Loan Obligations - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Gaming - continued | ||||
Mohegan Tribal Gaming Authority Tranche B, term loan 5.5% 11/19/19 (j) | $ 369 | $ 374 | ||
Station Casinos LLC Tranche B, term loan 4.25% 3/1/20 (j) | 2,693 | 2,690 | ||
| 5,506 | |||
Healthcare - 0.5% | ||||
Accellent, Inc. Tranche B 1 LN, term loan 4.5% 3/12/21 (j) | 2,975 | 2,930 | ||
Dialysis Newco, Inc.: | ||||
Tranche 2LN, term loan 7.75% 10/22/21 (j) | 1,160 | 1,159 | ||
Tranche B 1LN, term loan 4.75% 4/23/21 (j) | 925 | 924 | ||
MModal, Inc. Tranche B, term loan 9% 8/17/19 (j) | 1,755 | 1,386 | ||
MPH Acquisition Holdings LLC Tranche B, term loan 4% 3/31/21 (j) | 778 | 774 | ||
Patheon, Inc. Tranche B, term loan 4.25% 3/11/21 (j) | 2,325 | 2,281 | ||
Rural/Metro Corp. Tranche B, term loan 9% 6/30/18 (j) | 459 | 433 | ||
Salix Pharmaceuticals Ltd. Tranche B, term loan 4.25% 1/2/20 (j) | 202 | 203 | ||
U.S. Renal Care, Inc.: | ||||
Tranche 2LN, term loan 8.5% 1/3/20 (j) | 120 | 121 | ||
Tranche B 2LN, term loan 4.25% 7/3/19 (j) | 194 | 194 | ||
| 10,405 | |||
Homebuilders/Real Estate - 0.1% | ||||
Realogy Corp. Credit-Linked Deposit 4.4463% 10/10/16 (j) | 1,304 | 1,301 | ||
Hotels - 0.1% | ||||
Hilton Worldwide Finance, LLC Tranche B, term loan 3.5% 10/25/20 (j) | 1,940 | 1,932 | ||
Playa Resorts Holding BV Tranche B, term loan 4% 8/9/19 (j) | 234 | 234 | ||
| 2,166 | |||
Leisure - 0.4% | ||||
Equinox Holdings, Inc. Tranche 2LN, term loan 9.75% 8/1/20 (j) | 7,425 | 7,518 | ||
Metals/Mining - 0.0% | ||||
Ameriforge Group, Inc. Tranche B 2LN, term loan 8.75% 1/25/21 (j) | 190 | 194 | ||
Oxbow Carbon LLC Tranche B 1LN, term loan 4.25% 7/19/19 (j) | 168 | 168 | ||
| 362 | |||
Bank Loan Obligations - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Paper - 0.1% | ||||
Caraustar Industries, Inc. Tranche B, term loan 7.5% 5/1/19 (j) | $ 2,398 | $ 2,431 | ||
White Birch Paper Co. Tranche 2LN, term loan 11/8/14 (d)(l) | 8,620 | 0 | ||
| 2,431 | |||
Publishing/Printing - 0.7% | ||||
Cengage Learning Acquisitions, Inc. Tranche 1LN, term loan 7% 3/31/20 (j) | 620 | 629 | ||
Harland Clarke Holdings Corp. Tranche B 4LN, term loan 6% 8/4/19 (j) | 154 | 154 | ||
Houghton Mifflin Harcourt Publishing, Inc. Tranche B, term loan 4.25% 5/22/18 (j) | 270 | 270 | ||
McGraw-Hill Global Education Holdings, LLC Tranche B, term loan 5.75% 3/22/19 (j) | 6,023 | 6,065 | ||
Springer Science+Business Media Deutschland GmbH Tranche B 2LN, term loan 5% 8/14/20 (j) | 6,555 | 6,563 | ||
| 13,681 | |||
Services - 0.1% | ||||
EFS Cogen Holdings I LLC Tranche B, term loan 3.75% 12/17/20 (j) | 245 | 245 | ||
Garda World Security Corp.: | ||||
term loan 4% 11/8/20 (j) | 646 | 644 | ||
Tranche DD, term loan 4% 11/8/20 (j) | 165 | 165 | ||
Laureate Education, Inc. Tranche B, term loan 5% 6/16/18 (j) | 873 | 862 | ||
| 1,916 | |||
Shipping - 0.0% | ||||
CEVA Group PLC: | ||||
Tranche B, term loan 6.5% 3/19/21 (j) | 295 | 291 | ||
Tranche C, term loan 6.5% 3/19/21 (j) | 110 | 108 | ||
| 399 | |||
Super Retail - 0.1% | ||||
BJ's Wholesale Club, Inc. Tranche B 1LN, term loan 4.5% 9/26/19 (j) | 778 | 778 | ||
J. Crew Group, Inc. Tranche B LN, term loan 4% 3/5/21 (j) | 555 | 552 | ||
| 1,330 | |||
Technology - 1.5% | ||||
Avago Technologies, Inc. Tranche B, term loan 4/16/21 (l) | 4,660 | 4,683 | ||
Bank Loan Obligations - continued | ||||
| Principal Amount (000s) (e) | Value (000s) | ||
Technology - continued | ||||
Fibertech Networks, LLC Tranche B 1LN, term loan 4% 12/18/19 (j) | $ 209 | $ 209 | ||
First Data Corp. term loan 4.1523% 3/24/18 (j) | 14,230 | 14,159 | ||
Freescale Semiconductor, Inc. Tranche B 4LN, term loan 4.25% 3/1/20 (j) | 4,070 | 4,065 | ||
Infor U.S., Inc. Tranche B 5LN, term loan 3.75% 6/3/20 (j) | 1,112 | 1,105 | ||
Kronos, Inc.: | ||||
Tranche 2LN, term loan 9.75% 4/30/20 (j) | 3,645 | 3,755 | ||
Tranche B 1LN, term loan 4.5% 10/30/19 (j) | 85 | 84 | ||
Renaissance Learning, Inc.: | ||||
Tranche 1LN, term loan 4.5% 4/9/21 (j) | 1,025 | 1,020 | ||
Tranche 2LN, term loan 8% 4/9/22 (j) | 870 | 866 | ||
| 29,946 | |||
Telecommunications - 1.0% | ||||
Altice Financing SA Tranche B, term loan 5.5% 6/24/19 (j) | 17,476 | 17,716 | ||
Integra Telecom Holdings, Inc. Tranche 2LN, term loan 9.75% 2/22/20 (j) | 200 | 204 | ||
Intelsat Jackson Holdings SA Tranche B 2LN, term loan 3.75% 6/30/19 (j) | 1,635 | 1,637 | ||
LTS Buyer LLC Tranche 2LN, term loan 8% 4/11/21 (j) | 63 | 64 | ||
Mitel U.S. Holdings, Inc. Tranche B, term loan 5.3383% 1/31/20 (j) | 504 | 508 | ||
| 20,129 | |||
TOTAL BANK LOAN OBLIGATIONS (Cost $178,772) |
|
Preferred Securities - 2.8% | |||
|
|
|
|
Banks & Thrifts - 1.0% | |||
Bank of America Corp. 5.2% (h)(j) | 2,745 | 2,640 | |
Barclays Bank PLC 7.625% 11/21/22 | 7,480 | 8,748 | |
JPMorgan Chase & Co. 5.15% (h)(j) | 9,715 | 9,443 | |
| 20,831 | ||
Diversified Financial Services - 1.8% | |||
Citigroup, Inc.: | |||
5.35% (h)(j) | 24,830 | 23,767 | |
Preferred Securities - continued | |||
Principal Amount (000s) (e) | Value (000s) | ||
Diversified Financial Services - continued | |||
Citigroup, Inc.: - continued | |||
5.9% (h)(j) | $ 9,045 | $ 9,043 | |
5.95% (h)(j) | 4,815 | 4,833 | |
| 37,643 | ||
TOTAL PREFERRED SECURITIES (Cost $58,955) |
| ||
Money Market Funds - 3.1% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.11% (b) | 60,662,654 | 60,663 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 3,858,614 | 3,859 | |
TOTAL MONEY MARKET FUNDS (Cost $64,522) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.2% (Cost $1,959,054) | 2,054,426 | ||
NET OTHER ASSETS (LIABILITIES) - (0.2)% | (4,081) | ||
NET ASSETS - 100% | $ 2,050,345 |
Currency Abbreviations | ||
CAD | - | Canadian dollar |
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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Amount is stated in United States dollars unless otherwise noted. |
(f) Security or a portion of the security is on loan at period end. |
(g) 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 $588,562,000 or 28.7% of net assets. |
(h) Security is perpetual in nature with no stated maturity date. |
(i) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(j) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(k) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
(l) The coupon rate will be determined upon settlement of the loan after period end. |
(m) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,698,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Arena Brands Holding Corp. Class B | 6/18/97 - 7/13/98 | $ 1,538 |
Houghton Mifflin Harcourt Co. warrants 6/22/19 | 6/22/12 | $ 8 |
Station Holdco LLC | 6/17/11 | $ 1,450 |
Station Holdco LLC unit | 4/1/13 | $ 0* |
Station Holdco LLC warrants 6/15/18 | 10/28/08 - 12/1/08 | $ 3,945 |
* Amount represents less than $1,000. |
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 | $ 41 |
Fidelity Securities Lending Cash Central Fund | 13 |
Total | $ 54 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 110,014 | $ 106,290 | $ - | $ 3,724 |
Consumer Staples | 13,032 | 13,032 | - | - |
Energy | 35,083 | 35,083 | - | - |
Financials | 48,955 | 37,575 | 11,380 | - |
Health Care | 25,489 | 25,489 | - | - |
Industrials | 37,912 | 35,456 | - | 2,456 |
Information Technology | 37,317 | 37,317 | - | - |
Materials | 24,836 | 24,836 | - | - |
Telecommunication Services | 11,101 | 11,101 | - | - |
Corporate Bonds | 1,414,052 | - | 1,414,051 | 1 |
Bank Loan Obligations | 173,639 | - | 164,275 | 9,364 |
Preferred Securities | 58,474 | - | 58,474 | - |
Money Market Funds | 64,522 | 64,522 | - | - |
Total Investments in Securities: | $ 2,054,426 | $ 390,701 | $ 1,648,180 | $ 15,545 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 81.9% |
Luxembourg | 5.2% |
Canada | 2.1% |
Netherlands | 1.3% |
Cayman Islands | 1.3% |
Bermuda | 1.3% |
France | 1.0% |
Marshall Islands | 1.0% |
Others (Individually Less Than 1%) | 4.9% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $3,693) - See accompanying schedule: Unaffiliated issuers (cost $1,894,532) | $ 1,989,904 |
|
Fidelity Central Funds (cost $64,522) | 64,522 |
|
Total Investments (cost $1,959,054) |
| $ 2,054,426 |
Cash |
| 149 |
Receivable for investments sold |
| 20,553 |
Delayed delivery |
| 651 |
Receivable for fund shares sold | 2,623 | |
Dividends receivable | 578 | |
Interest receivable | 26,303 | |
Distributions receivable from Fidelity Central Funds | 14 | |
Prepaid expenses | 1 | |
Other receivables | 58 | |
Total assets | 2,105,356 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 7,899 | |
Delayed delivery | 31,645 | |
Payable for fund shares redeemed | 6,220 | |
Distributions payable | 1,019 | |
Accrued management fee | 954 | |
Distribution and service plan fees payable | 425 | |
Other affiliated payables | 326 | |
Other payables and accrued expenses | 2,664 | |
Collateral on securities loaned, at value | 3,859 | |
Total liabilities | 55,011 | |
|
|
|
Net Assets | $ 2,050,345 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,446,424 | |
Undistributed net investment income | 30,233 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (521,688) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 95,376 | |
Net Assets | $ 2,050,345 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 10.86 | |
|
|
|
Maximum offering price per share (100/96.00 of $10.86) | $ 11.31 | |
Class T: | $ 10.91 | |
|
|
|
Maximum offering price per share (100/96.00 of $10.91) | $ 11.36 | |
Class B: | $ 10.78 | |
|
|
|
Class C: | $ 10.84 | |
|
|
|
Institutional Class: | $ 10.19 |
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.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended April 30, 2014 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,066 |
Interest |
| 52,436 |
Income from Fidelity Central Funds |
| 54 |
Total income |
| 57,556 |
|
|
|
Expenses | ||
Management fee | $ 5,585 | |
Transfer agent fees | 1,586 | |
Distribution and service plan fees | 2,542 | |
Accounting and security lending fees | 328 | |
Custodian fees and expenses | 17 | |
Independent trustees' compensation | 4 | |
Registration fees | 72 | |
Audit | 40 | |
Legal | 13 | |
Miscellaneous | 8 | |
Total expenses before reductions | 10,195 | |
Expense reductions | (1) | 10,194 |
Net investment income (loss) | 47,362 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 8,759 |
Change in net unrealized appreciation (depreciation) on investment securities | 31,056 | |
Net gain (loss) | 39,815 | |
Net increase (decrease) in net assets resulting from operations | $ 87,177 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 47,362 | $ 104,188 |
Net realized gain (loss) | 8,759 | 6,723 |
Change in net unrealized appreciation (depreciation) | 31,056 | 95,481 |
Net increase (decrease) in net assets resulting | 87,177 | 206,392 |
Distributions to shareholders from net investment income | (42,923) | (89,629) |
Distributions to shareholders from net realized gain | (21,730) | (24,025) |
Total distributions | (64,653) | (113,654) |
Share transactions - net increase (decrease) | 102,346 | (122,384) |
Redemption fees | 93 | 331 |
Total increase (decrease) in net assets | 124,963 | (29,315) |
|
|
|
Net Assets | ||
Beginning of period | 1,925,382 | 1,954,697 |
End of period (including undistributed net investment income of $30,233 and undistributed net investment income of $25,794, respectively) | $ 2,050,345 | $ 1,925,382 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.73 | $ 10.21 | $ 9.59 | $ 9.87 | $ 8.60 | $ 6.44 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .257 | .569 | .607 | .593 | .650 | .587 |
Net realized and unrealized gain (loss) | .219 | .558 | .658 | (.238) | 1.185 | 2.033 |
Total from investment operations | .476 | 1.127 | 1.265 | .355 | 1.835 | 2.620 |
Distributions from net investment income | (.229) | (.482) | (.647) | (.639) | (.550) | (.465) |
Distributions from net realized gain | (.118) | (.127) | - | - | (.020) | - |
Total distributions | (.347) | (.609) | (.647) | (.639) | (.570) | (.465) |
Redemption fees added to paid in capital E | .001 | .002 | .002 | .004 | .005 | .005 |
Net asset value, end of period | $ 10.86 | $ 10.73 | $ 10.21 | $ 9.59 | $ 9.87 | $ 8.60 |
Total Return B, C, D | 4.52% | 11.39% | 13.78% | 3.57% | 22.06% | 43.51% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.03% A | 1.02% | 1.03% | 1.03% | 1.03% | 1.07% |
Expenses net of fee waivers, if any | 1.03% A | 1.02% | 1.03% | 1.03% | 1.03% | 1.07% |
Expenses net of all reductions | 1.03% A | 1.02% | 1.03% | 1.03% | 1.03% | 1.07% |
Net investment income (loss) | 4.81% A | 5.42% | 6.18% | 5.93% | 7.03% | 8.68% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 712 | $ 698 | $ 705 | $ 659 | $ 722 | $ 703 |
Portfolio turnover rate G | 38% A | 66% | 66% | 68% | 53% | 49% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.78 | $ 10.26 | $ 9.64 | $ 9.92 | $ 8.64 | $ 6.47 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .259 | .573 | .610 | .597 | .653 | .586 |
Net realized and unrealized gain (loss) | .217 | .555 | .656 | (.241) | 1.193 | 2.046 |
Total from investment operations | .476 | 1.128 | 1.266 | .356 | 1.846 | 2.632 |
Distributions from net investment income | (.229) | (.483) | (.648) | (.640) | (.551) | (.467) |
Distributions from net realized gain | (.118) | (.127) | - | - | (.020) | - |
Total distributions | (.347) | (.610) | (.648) | (.640) | (.571) | (.467) |
Redemption fees added to paid in capital E | .001 | .002 | .002 | .004 | .005 | .005 |
Net asset value, end of period | $ 10.91 | $ 10.78 | $ 10.26 | $ 9.64 | $ 9.92 | $ 8.64 |
Total Return B, C, D | 4.50% | 11.34% | 13.72% | 3.56% | 22.09% | 43.50% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.02% A | 1.01% | 1.02% | 1.02% | 1.02% | 1.05% |
Expenses net of fee waivers, if any | 1.02% A | 1.01% | 1.02% | 1.02% | 1.02% | 1.05% |
Expenses net of all reductions | 1.02% A | 1.01% | 1.02% | 1.02% | 1.02% | 1.05% |
Net investment income (loss) | 4.82% A | 5.43% | 6.19% | 5.94% | 7.04% | 8.70% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 528 | $ 528 | $ 547 | $ 543 | $ 645 | $ 678 |
Portfolio turnover rate G | 38% A | 66% | 66% | 68% | 53% | 49% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.65 | $ 10.15 | $ 9.53 | $ 9.82 | $ 8.56 | $ 6.41 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .217 | .489 | .532 | .519 | .581 | .532 |
Net realized and unrealized gain (loss) | .221 | .542 | .663 | (.245) | 1.180 | 2.033 |
Total from investment operations | .438 | 1.031 | 1.195 | .274 | 1.761 | 2.565 |
Distributions from net investment income | (.191) | (.406) | (.577) | (.568) | (.486) | (.420) |
Distributions from net realized gain | (.118) | (.127) | - | - | (.020) | - |
Total distributions | (.309) | (.533) | (.577) | (.568) | (.506) | (.420) |
Redemption fees added to paid in capital E | .001 | .002 | .002 | .004 | .005 | .005 |
Net asset value, end of period | $ 10.78 | $ 10.65 | $ 10.15 | $ 9.53 | $ 9.82 | $ 8.56 |
Total Return B, C, D | 4.18% | 10.45% | 13.06% | 2.75% | 21.20% | 42.62% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.75% A | 1.75% | 1.75% | 1.75% | 1.74% | 1.76% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.75% | 1.74% | 1.75% |
Expenses net of all reductions | 1.75% A | 1.75% | 1.75% | 1.74% | 1.74% | 1.75% |
Net investment income (loss) | 4.08% A | 4.69% | 5.46% | 5.21% | 6.32% | 8.00% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 15 | $ 19 | $ 28 | $ 38 | $ 52 | $ 65 |
Portfolio turnover rate G | 38% A | 66% | 66% | 68% | 53% | 49% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.71 | $ 10.19 | $ 9.58 | $ 9.86 | $ 8.59 | $ 6.44 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .216 | .489 | .533 | .518 | .581 | .536 |
Net realized and unrealized gain (loss) | .219 | .560 | .649 | (.237) | 1.186 | 2.025 |
Total from investment operations | .435 | 1.049 | 1.182 | .281 | 1.767 | 2.561 |
Distributions from net investment income | (.188) | (.404) | (.574) | (.565) | (.482) | (.416) |
Distributions from net realized gain | (.118) | (.127) | - | - | (.020) | - |
Total distributions | (.306) | (.531) | (.574) | (.565) | (.502) | (.416) |
Redemption fees added to paid in capital E | .001 | .002 | .002 | .004 | .005 | .005 |
Net asset value, end of period | $ 10.84 | $ 10.71 | $ 10.19 | $ 9.58 | $ 9.86 | $ 8.59 |
Total Return B, C, D | 4.14% | 10.58% | 12.85% | 2.81% | 21.20% | 42.32% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.78% A | 1.77% | 1.78% | 1.77% | 1.77% | 1.81% |
Expenses net of fee waivers, if any | 1.78% A | 1.77% | 1.78% | 1.77% | 1.77% | 1.81% |
Expenses net of all reductions | 1.78% A | 1.77% | 1.77% | 1.77% | 1.77% | 1.81% |
Net investment income (loss) | 4.05% A | 4.67% | 5.44% | 5.19% | 6.29% | 7.94% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 187 | $ 183 | $ 180 | $ 164 | $ 186 | $ 185 |
Portfolio turnover rate G | 38% A | 66% | 66% | 68% | 53% | 49% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.10 | $ 9.65 | $ 9.10 | $ 9.40 | $ 8.22 | $ 6.18 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .253 | .561 | .598 | .595 | .642 | .570 |
Net realized and unrealized gain (loss) | .197 | .524 | .623 | (.233) | 1.128 | 1.949 |
Total from investment operations | .450 | 1.085 | 1.221 | .362 | 1.770 | 2.519 |
Distributions from net investment income | (.242) | (.510) | (.673) | (.666) | (.575) | (.484) |
Distributions from net realized gain | (.118) | (.127) | - | - | (.020) | - |
Total distributions | (.360) | (.637) | (.673) | (.666) | (.595) | (.484) |
Redemption fees added to paid in capital D | - H | .002 | .002 | .004 | .005 | .005 |
Net asset value, end of period | $ 10.19 | $ 10.10 | $ 9.65 | $ 9.10 | $ 9.40 | $ 8.22 |
Total Return B, C | 4.54% | 11.63% | 14.07% | 3.83% | 22.33% | 43.81% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .79% A | .77% | .78% | .77% | .78% | .81% |
Expenses net of fee waivers, if any | .79% A | .77% | .78% | .77% | .78% | .81% |
Expenses net of all reductions | .79% A | .77% | .78% | .77% | .78% | .81% |
Net investment income (loss) | 5.05% A | 5.68% | 6.44% | 6.19% | 7.28% | 8.94% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 609 | $ 497 | $ 495 | $ 498 | $ 1,336 | $ 1,245 |
Portfolio turnover rate F | 38% A | 66% | 66% | 68% | 53% | 49% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount represents less than $.001 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® High Income Advantage Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The
Semiannual Report
3. Significant Accounting Policies - continued
Deferred Trustee Compensation - continued
investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
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.
Dividends 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 dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, defaulted bonds, market discount, equity-debt classifications, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 167,837 |
Gross unrealized depreciation | (66,426) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 101,411 |
|
|
Tax cost | $ 1,953,015 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2017 | $ (508,732) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower
Semiannual Report
3. Significant Accounting Policies - continued
Loans and Other Direct Debt Instruments - continued
prior to the sale of these loans. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $504,754 and $361,628, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .57% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 882 | $ 21 |
Class T | -% | .25% | 659 | 10 |
Class B | .65% | .25% | 77 | 56 |
Class C | .75% | .25% | 924 | 80 |
|
|
| $ 2,542 | $ 167 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 53 |
Class T | 5 |
Class B* | 5 |
Class C* | 5 |
| $ 68 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 559 | .16 |
Class T | 392 | .15 |
Class B | 20 | .23 |
Class C | 147 | .16 |
Institutional Class | 468 | .17 |
| $ 1,586 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $13. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 14,984 | $ 32,676 |
Class T | 11,167 | 24,635 |
Class B | 307 | 920 |
Class C | 3,236 | 7,083 |
Institutional Class | 13,229 | 24,315 |
Total | $ 42,923 | $ 89,629 |
From net realized gain |
|
|
Class A | $ 7,669 | $ 8,703 |
Class T | 5,773 | 6,597 |
Class B | 206 | 336 |
Class C | 2,005 | 2,235 |
Institutional Class | 6,077 | 6,154 |
Total | $ 21,730 | $ 24,025 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 6,916 | 17,380 | $ 74,523 | $ 182,432 |
Reinvestment of distributions | 1,751 | 3,187 | 18,829 | 33,277 |
Shares redeemed | (8,129) | (24,589) | (87,644) | (257,846) |
Net increase (decrease) | 538 | (4,022) | $ 5,708 | $ (42,137) |
Class T |
|
|
|
|
Shares sold | 3,153 | 7,839 | $ 34,106 | $ 82,393 |
Reinvestment of distributions | 1,395 | 2,579 | 15,080 | 27,058 |
Shares redeemed | (5,165) | (14,693) | (55,799) | (154,504) |
Net increase (decrease) | (617) | (4,275) | $ (6,613) | $ (45,053) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class B |
|
|
|
|
Shares sold | 51 | 170 | $ 557 | $ 1,770 |
Reinvestment of distributions | 39 | 91 | 413 | 946 |
Shares redeemed | (532) | (1,185) | (5,688) | (12,346) |
Net increase (decrease) | (442) | (924) | $ (4,718) | $ (9,630) |
Class C |
|
|
|
|
Shares sold | 1,565 | 2,941 | $ 16,808 | $ 30,884 |
Reinvestment of distributions | 374 | 659 | 4,012 | 6,860 |
Shares redeemed | (1,787) | (4,169) | (19,203) | (43,630) |
Net increase (decrease) | 152 | (569) | $ 1,617 | $ (5,886) |
Institutional Class |
|
|
|
|
Shares sold | 13,753 | 13,983 | $ 139,224 | $ 138,423 |
Reinvestment of distributions | 1,579 | 2,463 | 15,968 | 24,250 |
Shares redeemed | (4,826) | (18,542) | (48,840) | (182,351) |
Net increase (decrease) | 10,506 | (2,096) | $ 106,352 | $ (19,678) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers Income Opportunities Fund was the owner of record of approximately 10% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
HYI-USAN-0614 1.784887.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
High Income
Fund - Institutional Class
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to financial statements. |
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.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.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,038.90 | $ 5.26 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.64 | $ 5.21 |
Class T | 1.06% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,037.60 | $ 5.36 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.54 | $ 5.31 |
Class B | 1.75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,034.10 | $ 8.83 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.12 | $ 8.75 |
Class C | 1.81% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,035.00 | $ 9.13 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.82 | $ 9.05 |
Institutional Class | .85% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,038.50 | $ 4.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.58 | $ 4.26 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Holdings as of April 30, 2014 | ||
(by issuer, excluding cash equivalents) | % of fund's | % of fund's net assets |
Clear Channel Communications, Inc. | 1.8 | 0.4 |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA | 1.6 | 1.5 |
Tenet Healthcare Corp. | 1.6 | 0.6 |
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | 1.6 | 1.7 |
Digicel Group Ltd. | 1.4 | 1.0 |
| 8.0 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Energy | 13.2 | 13.9 |
Telecommunications | 8.1 | 7.6 |
Technology | 7.7 | 8.4 |
Diversified Financial Services | 6.4 | 5.5 |
Healthcare | 6.4 | 4.9 |
Quality Diversification (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
![]() | BBB 1.3% |
| ![]() | BBB 0.8% |
| ||
![]() | BB 35.1% |
| ![]() | BB 35.6% |
| ||
![]() | B 43.2% |
| ![]() | B 44.6% |
| ||
![]() | CCC,CC,C 16.2% |
| ![]() | CCC,CC,C 14.7% |
| ||
![]() | Not Rated 1.4% |
| ![]() | Not Rated 0.4% |
| ||
![]() | Other Investments 0.0% |
| ![]() | Other Investments 0.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014* | As of October 31, 2013** | ||||||
![]() | Nonconvertible |
| ![]() | Nonconvertible |
| ||
![]() | Common Stocks 0.0% |
| ![]() | Common Stocks 0.1% |
| ||
![]() | Bank Loan |
| ![]() | Bank Loan |
| ||
![]() | Other Investments 0.7% |
| ![]() | Other Investments 0.4% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 22.8% |
| ** Foreign investments | 21.6% |
|
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Nonconvertible Bonds - 86.5% | ||||
| Principal Amount | Value | ||
Aerospace - 0.9% | ||||
GenCorp, Inc. 7.125% 3/15/21 | $ 580,000 | $ 629,300 | ||
TransDigm, Inc.: | ||||
5.5% 10/15/20 | 3,965,000 | 4,004,650 | ||
7.5% 7/15/21 | 1,855,000 | 2,040,500 | ||
Triumph Group, Inc. 4.875% 4/1/21 | 1,420,000 | 1,398,700 | ||
| 8,073,150 | |||
Air Transportation - 3.7% | ||||
Air Canada: | ||||
6.625% 5/15/18 (d) | 3,205,000 | 3,323,265 | ||
7.75% 4/15/21 (d) | 1,400,000 | 1,426,250 | ||
American Airlines, Inc. pass-thru certificates Series 2013-1B Class B, 5.625% 1/15/21 (d) | 305,774 | 313,418 | ||
Continental Airlines, Inc.: | ||||
pass-thru trust certificates 9.798% 4/1/21 | 1,143,457 | 1,314,975 | ||
6.125% 4/29/18 (d) | 345,000 | 367,425 | ||
6.25% 10/11/21 | 2,044,423 | 2,223,310 | ||
9.25% 5/10/17 | 1,301,543 | 1,470,743 | ||
Delta Air Lines, Inc. pass-thru trust certificates: | ||||
Series 2012-1B Class B, 6.875% 5/7/19 (d) | 2,543,987 | 2,792,026 | ||
6.375% 7/2/17 (d) | 1,375,000 | 1,474,688 | ||
6.75% 5/23/17 | 1,375,000 | 1,474,688 | ||
8.021% 8/10/22 | 1,101,948 | 1,278,259 | ||
8.954% 8/10/14 | 847,500 | 862,332 | ||
Northwest Airlines, Inc. pass-thru trust certificates 8.028% 11/1/17 | 329,912 | 361,682 | ||
U.S. Airways Group, Inc. 6.125% 6/1/18 | 1,950,000 | 2,052,375 | ||
U.S. Airways pass-thru certificates: | ||||
Series 2012-2C, 5.45% 6/3/18 | 2,215,000 | 2,275,913 | ||
Series 2013-1 Class B, 5.375% 5/15/23 | 450,000 | 461,250 | ||
United Air Lines, Inc. pass-thru trust certificates: | ||||
Class B, 7.336% 7/2/19 | 939,309 | 1,023,847 | ||
9.75% 1/15/17 | 1,006,633 | 1,157,628 | ||
12% 1/15/16 (d) | 269,269 | 304,274 | ||
United Continental Holdings, Inc.: | ||||
6% 12/1/20 | 2,635,000 | 2,733,813 | ||
6% 7/15/26 | 1,700,000 | 1,627,750 | ||
6% 7/15/28 | 1,705,000 | 1,594,175 | ||
6.375% 6/1/18 | 185,000 | 199,338 | ||
| 32,113,424 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Automotive - 2.9% | ||||
American Axle & Manufacturing, Inc.: | ||||
5.125% 2/15/19 | $ 335,000 | $ 350,913 | ||
6.25% 3/15/21 | 2,970,000 | 3,140,775 | ||
Chrysler Group LLC/CG Co-Issuer, Inc. 8% 6/15/19 (d) | 2,500,000 | 2,737,500 | ||
Dana Holding Corp.: | ||||
5.375% 9/15/21 | 690,000 | 712,425 | ||
6% 9/15/23 | 690,000 | 726,225 | ||
6.5% 2/15/19 | 985,000 | 1,046,563 | ||
6.75% 2/15/21 | 1,210,000 | 1,311,338 | ||
General Motors Co. 3.5% 10/2/18 (d) | 3,645,000 | 3,722,456 | ||
General Motors Financial Co., Inc.: | ||||
3.25% 5/15/18 | 4,350,000 | 4,393,500 | ||
4.75% 8/15/17 | 2,285,000 | 2,444,950 | ||
Jaguar Land Rover PLC 4.125% 12/15/18 (d) | 1,515,000 | 1,564,238 | ||
Schaeffler Holding Finance BV 6.875% 8/15/18 pay-in-kind (d)(g) | 2,965,000 | 3,146,606 | ||
| 25,297,489 | |||
Banks & Thrifts - 0.6% | ||||
Ally Financial, Inc.: | ||||
2.75% 1/30/17 | 1,715,000 | 1,736,438 | ||
4.75% 9/10/18 | 1,315,000 | 1,393,900 | ||
Royal Bank of Scotland Group PLC 6% 12/19/23 | 215,000 | 224,604 | ||
Synovus Financial Corp.: | ||||
5.125% 6/15/17 | 475,000 | 499,938 | ||
7.875% 2/15/19 | 990,000 | 1,131,075 | ||
| 4,985,955 | |||
Broadcasting - 2.0% | ||||
AMC Networks, Inc. 4.75% 12/15/22 | 1,355,000 | 1,351,613 | ||
CCU Escrow Corp. 10% 1/15/18 (d) | 3,000,000 | 2,932,500 | ||
Clear Channel Communications, Inc.: | ||||
4.9% 5/15/15 | 1,535,000 | 1,592,563 | ||
5.5% 12/15/16 | 8,420,000 | 8,251,600 | ||
9% 12/15/19 | 1,230,000 | 1,309,950 | ||
Starz LLC/Starz Finance Corp. 5% 9/15/19 | 2,135,000 | 2,212,394 | ||
| 17,650,620 | |||
Building Materials - 2.7% | ||||
Building Materials Corp. of America: | ||||
6.75% 5/1/21 (d) | 2,385,000 | 2,581,763 | ||
6.875% 8/15/18 (d) | 2,715,000 | 2,833,781 | ||
Building Materials Holding Corp. 9% 9/15/18 (d) | 2,790,000 | 3,034,125 | ||
CEMEX Finance LLC 6% 4/1/24 (d) | 1,190,000 | 1,193,630 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Building Materials - continued | ||||
CEMEX S.A.B. de CV 6.5% 12/10/19 (d) | $ 750,000 | $ 787,500 | ||
HD Supply, Inc. 7.5% 7/15/20 | 2,910,000 | 3,150,075 | ||
Headwaters, Inc.: | ||||
7.25% 1/15/19 (d) | 520,000 | 547,300 | ||
7.625% 4/1/19 | 2,175,000 | 2,338,125 | ||
Masco Corp. 5.95% 3/15/22 | 3,400,000 | 3,706,000 | ||
Ply Gem Industries, Inc. 6.5% 2/1/22 (d) | 780,000 | 780,000 | ||
Texas Industries, Inc. 9.25% 8/15/20 | 1,390,000 | 1,591,550 | ||
U.S. Concrete, Inc. 8.5% 12/1/18 (d) | 665,000 | 723,188 | ||
| 23,267,037 | |||
Cable TV - 3.3% | ||||
Altice S.A. 7.75% 5/15/22 (d)(f) | 1,380,000 | 1,438,650 | ||
Cablevision Systems Corp. 7.75% 4/15/18 | 530,000 | 600,888 | ||
CCO Holdings LLC/CCO Holdings Capital Corp. 7% 1/15/19 | 3,470,000 | 3,665,188 | ||
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (d) | 2,255,000 | 2,362,113 | ||
Cequel Communications Holdings I LLC/Cequel Capital Corp. 5.125% 12/15/21 (d) | 2,690,000 | 2,622,750 | ||
Cogeco Cable, Inc. 4.875% 5/1/20 (d) | 450,000 | 452,250 | ||
DISH DBS Corp. 4.25% 4/1/18 | 1,100,000 | 1,149,500 | ||
Harron Communications LP/Harron Finance Corp. 9.125% 4/1/20 (d) | 1,865,000 | 2,098,125 | ||
Numericable Group SA: | ||||
4.875% 5/15/19 (d)(f) | 1,430,000 | 1,444,300 | ||
6% 5/15/22 (d)(f) | 2,475,000 | 2,533,781 | ||
6.25% 5/15/24 (d)(f) | 490,000 | 501,638 | ||
RCN Telecom Services LLC/RCN Capital Corp. 8.5% 8/15/20 (d) | 1,600,000 | 1,696,000 | ||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 5.5% 1/15/23 (d) | 1,115,000 | 1,126,150 | ||
UPCB Finance V Ltd. 7.25% 11/15/21 (d) | 2,545,000 | 2,805,863 | ||
WaveDivision Escrow LLC/WaveDivision Escrow Corp. 8.125% 9/1/20 (d) | 3,930,000 | 4,205,100 | ||
| 28,702,296 | |||
Capital Goods - 0.5% | ||||
J.B. Poindexter & Co., Inc. 9% 4/1/22 (d) | 3,615,000 | 3,967,463 | ||
Chemicals - 2.7% | ||||
Kinove German Bondco GmbH 9.625% 6/15/18 (d) | 1,892,000 | 2,043,360 | ||
LSB Industries, Inc. 7.75% 8/1/19 (d) | 1,085,000 | 1,160,950 | ||
Nufarm Australia Ltd. 6.375% 10/15/19 (d) | 3,740,000 | 3,861,550 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Chemicals - continued | ||||
Rentech Nitrogen Partners LP/Rentech Nitrogen Finance Corp. 6.5% 4/15/21 (d) | $ 635,000 | $ 625,475 | ||
Rockwood Specialties Group, Inc. 4.625% 10/15/20 | 1,870,000 | 1,916,750 | ||
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. 8.75% 2/1/19 | 8,925,000 | 9,505,125 | ||
Tronox Finance LLC 6.375% 8/15/20 | 4,605,000 | 4,697,100 | ||
| 23,810,310 | |||
Consumer Products - 0.3% | ||||
First Quality Finance Co., Inc. 4.625% 5/15/21 (d) | 2,510,000 | 2,371,950 | ||
Containers - 3.0% | ||||
Ardagh Packaging Finance PLC 7.375% 10/15/17 (d) | 3,630,000 | 3,847,800 | ||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | ||||
6.25% 1/31/19 (d) | 500,000 | 521,250 | ||
6.75% 1/31/21 (d) | 580,000 | 604,650 | ||
7% 11/15/20 (d) | 105,000 | 109,463 | ||
7.375% 10/15/17 (d) | 235,000 | 248,806 | ||
Beverage Packaging Holdings II SA (Luxembourg): | ||||
5.625% 12/15/16 (d) | 1,085,000 | 1,108,056 | ||
6% 6/15/17 (d) | 1,415,000 | 1,457,450 | ||
BOE Intermediate Holding Corp. 9.75% 11/1/17 pay-in-kind (d)(g) | 1,359,150 | 1,427,108 | ||
Crown Americas LLC/Crown Americas Capital Corp. IV 4.5% 1/15/23 | 2,645,000 | 2,525,975 | ||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | ||||
5.75% 10/15/20 | 6,155,000 | 6,401,200 | ||
7.875% 8/15/19 | 1,945,000 | 2,134,638 | ||
8.5% 5/15/18 (c) | 870,000 | 909,150 | ||
9.875% 8/15/19 | 4,065,000 | 4,512,150 | ||
| 25,807,696 | |||
Diversified Financial Services - 5.8% | ||||
Aircastle Ltd.: | ||||
4.625% 12/15/18 | 710,000 | 726,863 | ||
5.125% 3/15/21 | 1,535,000 | 1,542,675 | ||
6.25% 12/1/19 | 1,175,000 | 1,266,063 | ||
6.75% 4/15/17 | 1,375,000 | 1,540,000 | ||
CIT Group, Inc.: | ||||
3.875% 2/19/19 | 1,390,000 | 1,405,638 | ||
5.25% 3/15/18 | 2,120,000 | 2,273,700 | ||
5.5% 2/15/19 (d) | 4,000,000 | 4,310,000 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Diversified Financial Services - continued | ||||
CIT Group, Inc.: - continued | ||||
6.625% 4/1/18 (d) | $ 2,045,000 | $ 2,282,731 | ||
FLY Leasing Ltd. 6.75% 12/15/20 | 2,290,000 | 2,395,913 | ||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
3.5% 3/15/17 (d) | 985,000 | 992,388 | ||
4.875% 3/15/19 (d) | 3,120,000 | 3,162,900 | ||
5.875% 2/1/22 (d) | 3,970,000 | 4,029,550 | ||
6% 8/1/20 (d) | 4,635,000 | 4,889,925 | ||
ILFC E-Capital Trust I 5.46% 12/21/65 (d)(g) | 1,745,000 | 1,657,750 | ||
ILFC E-Capital Trust II 6.25% 12/21/65 (d)(g) | 3,100,000 | 2,999,250 | ||
International Lease Finance Corp.: | ||||
5.875% 4/1/19 | 1,025,000 | 1,112,125 | ||
5.875% 8/15/22 | 2,550,000 | 2,690,250 | ||
6.25% 5/15/19 | 1,485,000 | 1,639,069 | ||
SLM Corp.: | ||||
4.875% 6/17/19 | 4,765,000 | 4,902,013 | ||
5.5% 1/15/19 | 2,080,000 | 2,187,120 | ||
8% 3/25/20 | 1,020,000 | 1,178,100 | ||
8.45% 6/15/18 | 1,015,000 | 1,196,431 | ||
| 50,380,454 | |||
Diversified Media - 1.2% | ||||
Clear Channel Worldwide Holdings, Inc.: | ||||
6.5% 11/15/22 | 1,810,000 | 1,927,650 | ||
6.5% 11/15/22 | 3,425,000 | 3,664,750 | ||
MDC Partners, Inc. 6.75% 4/1/20 (d) | 1,075,000 | 1,136,813 | ||
Nielsen Finance LLC/Nielsen Finance Co. 4.5% 10/1/20 | 1,725,000 | 1,737,938 | ||
The Nielsen Co. S.a.r.l. (Luxembourg) 5.5% 10/1/21 (d) | 2,280,000 | 2,376,900 | ||
| 10,844,051 | |||
Electric Utilities - 3.1% | ||||
Atlantic Power Corp. 9% 11/15/18 | 3,340,000 | 3,523,700 | ||
NRG Energy, Inc.: | ||||
6.25% 7/15/22 (d) | 2,105,000 | 2,176,044 | ||
6.25% 5/1/24 (d) | 2,590,000 | 2,599,713 | ||
NSG Holdings II, LLC 7.75% 12/15/25 (d) | 9,460,000 | 10,122,158 | ||
The AES Corp.: | ||||
4.875% 5/15/23 | 1,120,000 | 1,072,400 | ||
7.375% 7/1/21 | 6,775,000 | 7,757,375 | ||
| 27,251,390 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Energy - 12.3% | ||||
Access Midstream Partners LP/ACMP Finance Corp.: | ||||
4.875% 5/15/23 | $ 1,405,000 | $ 1,422,563 | ||
4.875% 3/15/24 | 555,000 | 552,225 | ||
Approach Resources, Inc. 7% 6/15/21 | 3,645,000 | 3,781,688 | ||
Basic Energy Services, Inc. 7.75% 2/15/19 | 350,000 | 374,500 | ||
Chesapeake Energy Corp.: | ||||
3.4677% 4/15/19 (g) | 1,425,000 | 1,439,250 | ||
4.875% 4/15/22 | 1,425,000 | 1,426,781 | ||
6.125% 2/15/21 | 3,270,000 | 3,580,650 | ||
Chesapeake Midstream Partners LP/CHKM Finance Corp.: | ||||
5.875% 4/15/21 | 1,030,000 | 1,096,950 | ||
6.125% 7/15/22 | 2,375,000 | 2,567,969 | ||
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: | ||||
6.125% 3/1/22 (d) | 690,000 | 721,050 | ||
7.75% 4/1/19 | 940,000 | 1,017,550 | ||
CVR Refining LLC/Coffeyville Finance, Inc. 6.5% 11/1/22 | 1,520,000 | 1,596,000 | ||
Denbury Resources, Inc.: | ||||
5.5% 5/1/22 | 2,145,000 | 2,169,131 | ||
6.375% 8/15/21 | 1,555,000 | 1,667,738 | ||
Endeavor Energy Resources LP/EER Finance, Inc. 7% 8/15/21 (d) | 5,275,000 | 5,565,125 | ||
Energy Partners Ltd. 8.25% 2/15/18 | 2,645,000 | 2,856,600 | ||
EP Energy LLC/Everest Acquisition Finance, Inc. 7.75% 9/1/22 | 2,635,000 | 2,934,731 | ||
Everest Acquisition LLC/Everest Acquisition Finance, Inc.: | ||||
6.875% 5/1/19 | 1,130,000 | 1,213,338 | ||
9.375% 5/1/20 | 4,570,000 | 5,266,925 | ||
Expro Finance Luxembourg SCA 8.5% 12/15/16 (d) | 4,568,000 | 4,773,560 | ||
Exterran Holdings, Inc. 7.25% 12/1/18 | 3,260,000 | 3,451,525 | ||
Exterran Partners LP/EXLP Finance Corp.: | ||||
6% 4/1/21 | 2,755,000 | 2,755,000 | ||
6% 10/1/22 (d) | 965,000 | 960,175 | ||
Forbes Energy Services Ltd. 9% 6/15/19 | 3,200,000 | 3,272,000 | ||
Gibson Energy, Inc. 6.75% 7/15/21 (d) | 2,310,000 | 2,494,800 | ||
Hornbeck Offshore Services, Inc.: | ||||
5% 3/1/21 | 1,195,000 | 1,159,150 | ||
5.875% 4/1/20 | 780,000 | 811,200 | ||
Northern Tier Energy LLC/Northern Tier Finance Corp. 7.125% 11/15/20 | 2,695,000 | 2,890,388 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Energy - continued | ||||
Offshore Group Investment Ltd.: | ||||
7.125% 4/1/23 | $ 1,200,000 | $ 1,182,000 | ||
7.5% 11/1/19 | 5,035,000 | 5,236,400 | ||
Oil States International, Inc. 6.5% 6/1/19 | 1,665,000 | 1,750,331 | ||
Pacific Drilling SA 5.375% 6/1/20 (d) | 2,985,000 | 2,902,913 | ||
Parsley Energy LLC/ Parsley 7.5% 2/15/22 (d) | 3,045,000 | 3,182,025 | ||
Petroleum Geo-Services ASA 7.375% 12/15/18 (d) | 2,040,000 | 2,193,000 | ||
Precision Drilling Corp. 6.625% 11/15/20 | 1,760,000 | 1,892,000 | ||
Rice Energy, Inc. 6.25% 5/1/22 (d) | 2,345,000 | 2,347,931 | ||
Samson Investment Co. 10.75% 2/15/20 (d) | 6,275,000 | 6,620,125 | ||
SemGroup Corp. 7.5% 6/15/21 | 2,355,000 | 2,555,175 | ||
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: | ||||
4.25% 11/15/23 (d) | 1,535,000 | 1,435,225 | ||
5.25% 5/1/23 | 1,635,000 | 1,635,000 | ||
6.375% 8/1/22 | 354,000 | 378,780 | ||
6.875% 2/1/21 | 1,955,000 | 2,096,738 | ||
Tesoro Logistics LP/Tesoro Logistics Finance Corp. 6.125% 10/15/21 | 545,000 | 576,338 | ||
Western Refining, Inc. 6.25% 4/1/21 | 3,575,000 | 3,718,000 | ||
Whiting Petroleum Corp. 5% 3/15/19 | 2,935,000 | 3,089,088 | ||
| 106,609,631 | |||
Entertainment/Film - 0.1% | ||||
NAI Entertainment Holdings LLC/NAI Entertainment Finance Corp. 5% 8/1/18 (d) | 675,000 | 703,688 | ||
Environmental - 1.1% | ||||
ADS Waste Holdings, Inc. 8.25% 10/1/20 | 3,345,000 | 3,625,144 | ||
Clean Harbors, Inc.: | ||||
5.125% 6/1/21 | 270,000 | 273,038 | ||
5.25% 8/1/20 | 1,715,000 | 1,757,875 | ||
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (d) | 2,918,000 | 3,093,080 | ||
Tervita Corp.: | ||||
9.75% 11/1/19 (d) | 260,000 | 235,300 | ||
10.875% 2/15/18 (d) | 400,000 | 384,000 | ||
| 9,368,437 | |||
Food & Drug Retail - 0.7% | ||||
JBS Investments GmbH: | ||||
7.25% 4/3/24 (d) | 995,000 | 1,001,666 | ||
7.75% 10/28/20 (d) | 2,200,000 | 2,340,250 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Food & Drug Retail - continued | ||||
Minerva Luxmbourg SA 7.75% 1/31/23 (d) | $ 425,000 | $ 437,219 | ||
SUPERVALU, Inc. 6.75% 6/1/21 | 2,585,000 | 2,623,775 | ||
| 6,402,910 | |||
Food/Beverage/Tobacco - 2.3% | ||||
DS Waters of America, Inc. 10% 9/1/21 (d) | 940,000 | 1,043,400 | ||
ESAL GmbH 6.25% 2/5/23 (d) | 6,595,000 | 6,298,225 | ||
FAGE Dairy Industry SA/FAGE U.S.A. Dairy Industry, Inc. 9.875% 2/1/20 (d) | 2,050,000 | 2,214,000 | ||
Hawk Acquisition Sub, Inc. 4.25% 10/15/20 (d) | 3,655,000 | 3,602,003 | ||
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: | ||||
7.25% 6/1/21 (d) | 1,850,000 | 1,995,688 | ||
8.25% 2/1/20 (d) | 4,220,000 | 4,618,790 | ||
| 19,772,106 | |||
Gaming - 2.4% | ||||
Caesars Growth Propeties Holdings LLC/Caesars Growth Properties Finance, Inc. 9.375% 5/1/22 (d) | 1,555,000 | 1,551,113 | ||
GLP Capital LP/GLP Financing II, Inc.: | ||||
4.375% 11/1/18 (d) | 1,020,000 | 1,055,700 | ||
5.375% 11/1/23 (d) | 770,000 | 793,100 | ||
Golden Nugget Escrow, Inc. 8.5% 12/1/21 (d) | 4,475,000 | 4,598,063 | ||
MCE Finance Ltd. 5% 2/15/21 (d) | 2,630,000 | 2,623,425 | ||
MGM Mirage, Inc.: | ||||
8.625% 2/1/19 | 1,785,000 | 2,130,844 | ||
11.375% 3/1/18 | 1,655,000 | 2,147,363 | ||
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc.: | ||||
8% 10/1/20 (d) | 1,740,000 | 1,809,600 | ||
11% 10/1/21 (d) | 1,735,000 | 1,804,400 | ||
Seminole Hard Rock Entertainment, Inc. 5.875% 5/15/21 (d) | 940,000 | 937,650 | ||
Wynn Macau Ltd. 5.25% 10/15/21 (d) | 1,080,000 | 1,096,200 | ||
| 20,547,458 | |||
Healthcare - 5.5% | ||||
Community Health Systems, Inc.: | ||||
5.125% 8/15/18 | 2,260,000 | 2,375,825 | ||
5.125% 8/1/21 (d) | 620,000 | 632,400 | ||
6.875% 2/1/22 (d) | 1,245,000 | 1,290,131 | ||
8% 11/15/19 | 3,950,000 | 4,320,313 | ||
DJO Finance LLC/DJO Finance Corp.: | ||||
7.75% 4/15/18 | 950,000 | 997,500 | ||
8.75% 3/15/18 | 110,000 | 119,350 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Healthcare - continued | ||||
DJO Finance LLC/DJO Finance Corp.: - continued | ||||
9.875% 4/15/18 | $ 1,555,000 | $ 1,694,950 | ||
Emergency Medical Services Corp. 8.125% 6/1/19 | 2,673,000 | 2,840,063 | ||
Fresenius Medical Care U.S. Finance II, Inc. 5.625% 7/31/19 (d) | 1,625,000 | 1,767,188 | ||
Grifols Worldwide Operations Ltd. 5.25% 4/1/22 (d) | 1,235,000 | 1,253,525 | ||
HCA Holdings, Inc.: | ||||
3.75% 3/15/19 | 2,095,000 | 2,110,713 | ||
5% 3/15/24 | 1,295,000 | 1,285,288 | ||
HealthSouth Corp. 7.25% 10/1/18 | 2,479,000 | 2,615,345 | ||
MPH Acquisition Holdings LLC 6.625% 4/1/22 (d) | 435,000 | 450,225 | ||
MPT Operating Partnership LP/MPT Finance Corp. 6.875% 5/1/21 | 1,780,000 | 1,935,750 | ||
Sabra Health Care LP/Sabra Capital Corp. 5.5% 2/1/21 | 2,530,000 | 2,650,175 | ||
Tenet Healthcare Corp.: | ||||
5% 3/1/19 (d) | 765,000 | 766,913 | ||
6% 10/1/20 (d) | 6,250,000 | 6,562,500 | ||
8.125% 4/1/22 | 5,670,000 | 6,293,700 | ||
Valeant Pharmaceuticals International: | ||||
6.75% 8/15/18 (d) | 2,800,000 | 3,031,000 | ||
6.875% 12/1/18 (d) | 3,015,000 | 3,180,825 | ||
| 48,173,679 | |||
Homebuilders/Real Estate - 3.9% | ||||
CBRE Group, Inc. 6.625% 10/15/20 | 670,000 | 711,875 | ||
D.R. Horton, Inc.: | ||||
3.625% 2/15/18 | 2,335,000 | 2,370,025 | ||
3.75% 3/1/19 | 1,390,000 | 1,386,525 | ||
4.375% 9/15/22 | 3,175,000 | 3,131,344 | ||
4.75% 5/15/17 | 605,000 | 640,544 | ||
Howard Hughes Corp. 6.875% 10/1/21 (d) | 1,725,000 | 1,854,375 | ||
KB Home 4.75% 5/15/19 | 1,745,000 | 1,740,638 | ||
Lennar Corp.: | ||||
4.125% 12/1/18 | 2,335,000 | 2,358,350 | ||
4.5% 6/15/19 | 1,815,000 | 1,835,419 | ||
Realogy Group LLC / Realogy Co.-Issuer Corp. 4.5% 4/15/19 (d) | 1,070,000 | 1,075,350 | ||
Standard Pacific Corp.: | ||||
8.375% 5/15/18 | 8,550,000 | 10,089,000 | ||
10.75% 9/15/16 | 1,650,000 | 1,971,750 | ||
Toll Brothers Finance Corp.: | ||||
4% 12/31/18 | 1,930,000 | 1,971,013 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Homebuilders/Real Estate - continued | ||||
Toll Brothers Finance Corp.: - continued | ||||
4.375% 4/15/23 | $ 2,600,000 | $ 2,522,000 | ||
William Lyon Homes, Inc. 5.75% 4/15/19 (d) | 350,000 | 357,000 | ||
| 34,015,208 | |||
Hotels - 0.3% | ||||
Playa Resorts Holding BV 8% 8/15/20 (d) | 2,379,000 | 2,569,320 | ||
Leisure - 1.2% | ||||
NCL Corp. Ltd. 5% 2/15/18 | 3,650,000 | 3,768,625 | ||
Royal Caribbean Cruises Ltd.: | ||||
5.25% 11/15/22 | 4,025,000 | 4,105,500 | ||
7.5% 10/15/27 | 1,925,000 | 2,165,625 | ||
| 10,039,750 | |||
Metals/Mining - 1.5% | ||||
CONSOL Energy, Inc.: | ||||
5.875% 4/15/22 (d) | 2,140,000 | 2,204,200 | ||
8.25% 4/1/20 | 1,765,000 | 1,921,644 | ||
Imperial Metals Corp. 7% 3/15/19 (d) | 175,000 | 178,368 | ||
New Gold, Inc. 6.25% 11/15/22 (d) | 3,665,000 | 3,756,625 | ||
Rain CII Carbon LLC/CII Carbon Corp. 8.25% 1/15/21 (d) | 1,825,000 | 1,898,000 | ||
Signode Industrial Group Lux SA/Signode Industrial Group U.S., Inc. 6.375% 5/1/22 (d)(f) | 1,555,000 | 1,570,550 | ||
Walter Energy, Inc. 8.5% 4/15/21 | 2,380,000 | 1,416,100 | ||
| 12,945,487 | |||
Paper - 0.2% | ||||
Sappi Papier Holding GmbH 7.75% 7/15/17 (d) | 1,630,000 | 1,815,413 | ||
Publishing/Printing - 0.9% | ||||
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance 10% 4/1/21 (d) | 4,890,000 | 5,599,050 | ||
R.R. Donnelley & Sons Co. 7% 2/15/22 | 700,000 | 770,000 | ||
Time, Inc. 5.75% 4/15/22 (d) | 1,820,000 | 1,815,450 | ||
| 8,184,500 | |||
Restaurants - 0.3% | ||||
NPC International, Inc./NPC Operating Co. A, Inc./NPC Operating Co. B, Inc. 10.5% 1/15/20 | 2,685,000 | 3,067,613 | ||
Services - 3.7% | ||||
APX Group, Inc.: | ||||
6.375% 12/1/19 | 4,700,000 | 4,782,250 | ||
8.75% 12/1/20 | 4,505,000 | 4,595,100 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Services - continued | ||||
Audatex North America, Inc. 6% 6/15/21 (d) | $ 2,760,000 | $ 2,960,100 | ||
Bankrate, Inc. 6.125% 8/15/18 (d) | 1,595,000 | 1,694,688 | ||
Blueline Rent Finance Corp./Volvo 7% 2/1/19 (d) | 1,305,000 | 1,396,350 | ||
Brand Energy & Infrastructure Services, Inc. 8.5% 12/1/21 (d) | 2,650,000 | 2,809,000 | ||
FTI Consulting, Inc. 6.75% 10/1/20 | 2,560,000 | 2,755,200 | ||
Garda World Security Corp.: | ||||
7.25% 11/15/21 (d) | 150,000 | 158,063 | ||
7.25% 11/15/21 (d) | 390,000 | 410,963 | ||
Hertz Corp.: | ||||
4.25% 4/1/18 | 2,005,000 | 2,070,163 | ||
6.25% 10/15/22 | 2,050,000 | 2,193,500 | ||
The Geo Group, Inc. 5.875% 1/15/22 | 2,720,000 | 2,801,600 | ||
TransUnion Holding Co., Inc. 8.125% 6/15/18 pay-in-kind (g) | 2,975,000 | 3,108,875 | ||
| 31,735,852 | |||
Shipping - 1.8% | ||||
Aguila 3 SA 7.875% 1/31/18 (d) | 4,355,000 | 4,610,856 | ||
CEVA Group PLC: | ||||
4% 5/1/18 (d) | 1,770,000 | 1,654,950 | ||
7% 3/1/21 (d) | 270,000 | 277,088 | ||
9% 9/1/21 (d) | 410,000 | 421,275 | ||
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc. 8.125% 11/15/21 (d) | 2,290,000 | 2,387,325 | ||
Navios Maritime Holdings, Inc.: | ||||
7.375% 1/15/22 (d) | 4,270,000 | 4,312,700 | ||
8.125% 2/15/19 | 930,000 | 943,950 | ||
Navios South American Logistics, Inc./Navios Logistics Finance U.S., Inc. 7.25% 5/1/22 (d) | 860,000 | 862,350 | ||
| 15,470,494 | |||
Steel - 1.1% | ||||
JMC Steel Group, Inc. 8.25% 3/15/18 (d) | 4,360,000 | 4,403,600 | ||
Ryerson, Inc./Joseph T Ryerson & Son, Inc.: | ||||
9% 10/15/17 | 900,000 | 966,375 | ||
11.25% 10/15/18 | 2,085,000 | 2,340,413 | ||
Steel Dynamics, Inc. 6.125% 8/15/19 | 1,780,000 | 1,944,650 | ||
| 9,655,038 | |||
Super Retail - 0.2% | ||||
Best Buy Co., Inc. 5% 8/1/18 | 2,120,000 | 2,196,956 | ||
Technology - 6.3% | ||||
Activision Blizzard, Inc. 5.625% 9/15/21 (d) | 1,390,000 | 1,482,088 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Technology - continued | ||||
ADT Corp.: | ||||
2.25% 7/15/17 | $ 720,000 | $ 712,800 | ||
4.125% 4/15/19 | 2,085,000 | 2,052,683 | ||
4.125% 6/15/23 | 715,000 | 643,500 | ||
6.25% 10/15/21 (d) | 2,110,000 | 2,199,675 | ||
Advanced Micro Devices, Inc. 6.75% 3/1/19 (d) | 1,860,000 | 1,929,750 | ||
BMC Software Finance, Inc. 8.125% 7/15/21 (d) | 3,760,000 | 3,938,600 | ||
Boxer Parent Co., Inc. 9% 10/15/19 pay-in-kind (d)(g) | 1,370,000 | 1,342,600 | ||
Brocade Communications Systems, Inc. 4.625% 1/15/23 | 2,210,000 | 2,116,075 | ||
First Data Corp.: | ||||
6.75% 11/1/20 (d) | 3,640,000 | 3,885,700 | ||
7.375% 6/15/19 (d) | 985,000 | 1,056,413 | ||
8.25% 1/15/21 (d) | 1,140,000 | 1,228,350 | ||
Infor Software Parent LLC/Infor Software Parent, Inc. 7.125% 5/1/21 pay-in-kind (d)(g) | 400,000 | 402,000 | ||
Lucent Technologies, Inc.: | ||||
6.45% 3/15/29 | 4,815,000 | 4,610,363 | ||
6.5% 1/15/28 | 2,050,000 | 1,968,000 | ||
Micron Technology, Inc. 5.875% 2/15/22 (d) | 655,000 | 691,025 | ||
Nuance Communications, Inc. 5.375% 8/15/20 (d) | 5,475,000 | 5,516,063 | ||
NXP BV/NXP Funding LLC 3.75% 6/1/18 (d) | 3,870,000 | 3,865,163 | ||
Sanmina-SCI Corp. 7% 5/15/19 (d) | 3,790,000 | 3,998,450 | ||
Sungard Availability Services Capital, Inc. 8.75% 4/1/22 (d) | 2,600,000 | 2,509,000 | ||
VeriSign, Inc. 4.625% 5/1/23 | 2,085,000 | 1,996,388 | ||
Viasystems, Inc. 7.875% 5/1/19 (d) | 2,810,000 | 2,992,650 | ||
WideOpenWest Finance LLC/WideOpenWest Capital Corp.: | ||||
10.25% 7/15/19 | 1,995,000 | 2,254,350 | ||
10.25% 7/15/19 (d) | 175,000 | 197,750 | ||
13.375% 10/15/19 | 1,070,000 | 1,257,250 | ||
| 54,846,686 | |||
Telecommunications - 7.7% | ||||
Alcatel-Lucent U.S.A., Inc.: | ||||
4.625% 7/1/17 (d) | 630,000 | 644,963 | ||
6.75% 11/15/20 (d) | 2,115,000 | 2,220,750 | ||
8.875% 1/1/20 (d) | 2,035,000 | 2,289,375 | ||
Altice Financing SA: | ||||
6.5% 1/15/22 (d) | 390,000 | 408,525 | ||
7.875% 12/15/19 (d) | 2,600,000 | 2,839,252 | ||
Altice Finco SA 9.875% 12/15/20 (d) | 6,195,000 | 7,102,568 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Telecommunications - continued | ||||
Columbus International, Inc. 7.375% 3/30/21 (d) | $ 2,620,000 | $ 2,737,900 | ||
Crown Castle International Corp. 4.875% 4/15/22 | 2,595,000 | 2,633,925 | ||
Digicel Group Ltd.: | ||||
6% 4/15/21 (d) | 3,365,000 | 3,407,063 | ||
7% 2/15/20 (d) | 200,000 | 208,250 | ||
7.125% 4/1/22 (d) | 1,835,000 | 1,844,175 | ||
8.25% 9/1/17 (d) | 3,535,000 | 3,667,739 | ||
8.25% 9/30/20 (d) | 3,200,000 | 3,408,000 | ||
DigitalGlobe, Inc. 5.25% 2/1/21 | 5,920,000 | 5,772,000 | ||
FairPoint Communications, Inc. 8.75% 8/15/19 (d) | 2,410,000 | 2,608,825 | ||
Intelsat Jackson Holdings SA 7.25% 4/1/19 | 2,505,000 | 2,683,481 | ||
Level 3 Financing, Inc. 3.8459% 1/15/18 (d)(g) | 3,130,000 | 3,176,950 | ||
MasTec, Inc. 4.875% 3/15/23 | 1,680,000 | 1,621,200 | ||
Sprint Capital Corp.: | ||||
6.875% 11/15/28 | 730,000 | 720,875 | ||
8.75% 3/15/32 | 2,110,000 | 2,360,563 | ||
T-Mobile U.S.A., Inc.: | ||||
5.25% 9/1/18 | 3,040,000 | 3,203,400 | ||
6.464% 4/28/19 | 3,610,000 | 3,826,600 | ||
TW Telecom Holdings, Inc.: | ||||
5.375% 10/1/22 | 1,815,000 | 1,842,225 | ||
6.375% 9/1/23 | 845,000 | 899,925 | ||
Wind Acquisition Finance SA: | ||||
7.25% 2/15/18 (d) | 2,126,000 | 2,237,615 | ||
7.375% 4/23/21 (d) | 2,230,000 | 2,296,900 | ||
| 66,663,044 | |||
Textiles & Apparel - 0.3% | ||||
The William Carter Co. 5.25% 8/15/21 (d) | 2,220,000 | 2,297,700 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $722,874,904) |
|
Common Stocks - 0.0% | |||
Shares |
| ||
Telecommunications - 0.0% | |||
CUI Acquisition Corp. Class E (a)(d) | 1 |
|
Bank Loan Obligations - 10.0% | ||||
| Principal Amount | Value | ||
Automotive - 0.2% | ||||
Allison Transmission, Inc. Tranche B 3LN, term loan 3.75% 8/23/19 (g) | $ 533,663 | $ 533,663 | ||
Chrysler Group LLC: | ||||
term loan 3.25% 12/31/18 (g) | 1,085,000 | 1,074,150 | ||
Tranche B, term loan 3.5% 5/24/17 (g) | 359,077 | 358,628 | ||
| 1,966,441 | |||
Broadcasting - 0.9% | ||||
Clear Channel Communications, Inc. Tranche D, term loan 6.9003% 1/30/19 (g) | 5,025,000 | 4,981,031 | ||
Nielsen Finance LLC: | ||||
Tranche B 1LN, term loan 2.402% 5/30/17 (g) | 1,410,000 | 1,410,000 | ||
Tranche B 2LN, term loan 3.152% 4/15/21 (g) | 870,000 | 870,000 | ||
Univision Communications, Inc. Tranche C 4LN, term loan 4% 3/1/20 (g) | 543,638 | 540,240 | ||
| 7,801,271 | |||
Building Materials - 0.5% | ||||
GYP Holdings III Corp.: | ||||
Tranche 1LN, term loan 4.75% 4/1/21 (g) | 1,710,000 | 1,682,213 | ||
Tranche 2LN, term loan 7.75% 4/1/22 (g) | 340,000 | 341,700 | ||
HD Supply, Inc. Tranche B 1LN, term loan 4% 6/28/18 (g) | 1,122,145 | 1,120,798 | ||
Nortek, Inc. Tranche B, term loan 10/30/20 (h) | 1,150,000 | 1,147,125 | ||
| 4,291,836 | |||
Cable TV - 0.1% | ||||
Numericable LLC: | ||||
Tranche B 1LN, term loan 4/23/20 (h) | 731,850 | 730,935 | ||
Tranche B 2LN, term loan 4/23/20 (h) | 633,150 | 632,359 | ||
| 1,363,294 | |||
Containers - 0.6% | ||||
Ardagh Holdings U.S.A., Inc. Tranche B, term loan: | ||||
4% 12/17/19 (g) | 290,000 | 288,550 | ||
4.25% 12/17/19 (g) | 94,763 | 94,289 | ||
Berry Plastics Corp. Tranche E, term loan 3.75% 1/6/21 (g) | 880,000 | 873,400 | ||
Reynolds Consumer Products Holdings, Inc. Tranche B, term loan 4% 12/1/18 (g) | 518,700 | 518,700 | ||
Signode Packaging Systems, Inc. Tranche B, term loan 4/8/21 (h) | 3,485,000 | 3,476,288 | ||
| 5,251,227 | |||
Bank Loan Obligations - continued | ||||
| Principal Amount | Value | ||
Diversified Financial Services - 0.6% | ||||
Delos Finance SARL Tranche B LN, term loan 3.5% 3/6/21 (g) | $ 1,320,000 | $ 1,320,000 | ||
Moxie Patriot LLC Tranche B, term loan 6.75% 12/19/20 (g) | 2,025,000 | 2,073,094 | ||
TransUnion LLC Tranche B, term loan 4% 4/9/21 (g) | 2,270,000 | 2,258,650 | ||
| 5,651,744 | |||
Electric Utilities - 0.1% | ||||
Southwire LLC, Tranche B, term loan 3.25% 2/10/21 (g) | 730,000 | 729,124 | ||
Energy - 0.9% | ||||
Energy Transfer Equity LP Tranche B, term loan 3.25% 12/2/19 (g) | 2,100,000 | 2,076,375 | ||
Fieldwood Energy, LLC: | ||||
Tranche 2LN, term loan 8.375% 9/30/20 (g) | 3,445,000 | 3,548,350 | ||
Tranche B 1LN, term loan 3.875% 9/30/18 (g) | 343,587 | 342,728 | ||
Samson Investment Co. Tranche B 2LN, term loan 5% 9/25/18 (g) | 205,000 | 203,975 | ||
Seadrill Operating LP Tranche B, term loan 4% 2/21/21 (g) | 2,079,788 | 2,056,390 | ||
Western Refining, Inc. Tranche B, term loan 4.25% 11/12/20 (g) | 144,638 | 144,999 | ||
| 8,372,817 | |||
Food/Beverage/Tobacco - 0.1% | ||||
Del Monte Foods Consumer Products: | ||||
Tranche 2LN, term loan 8.25% 8/18/21 (g) | 260,000 | 256,750 | ||
Tranche B 1LN, term loan 4.2531% 2/18/21 (g) | 518,700 | 516,755 | ||
| 773,505 | |||
Gaming - 0.1% | ||||
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 4/10/21 (h) | 330,000 | 329,175 | ||
Golden Nugget, Inc. Tranche B, term loan: | ||||
5.5% 11/21/19 (g) | 199,001 | 203,230 | ||
5.5% 11/21/19 (g) | 85,286 | 87,099 | ||
Las Vegas Sands LLC Tranche B, term loan 3.25% 12/19/20 (g) | 568,575 | 565,021 | ||
| 1,184,525 | |||
Healthcare - 0.9% | ||||
Community Health Systems, Inc. Tranche D, term loan 4.25% 1/27/21 (g) | 598,500 | 599,996 | ||
Endo Luxembourg Finance I Comp Tranche B, term loan 3.25% 2/28/21 (g) | 2,110,000 | 2,107,363 | ||
Grifols, S.A. Tranche B, term loan 3.1503% 2/27/21 (g) | 3,470,000 | 3,461,325 | ||
Bank Loan Obligations - continued | ||||
| Principal Amount | Value | ||
Healthcare - continued | ||||
MPH Acquisition Holdings LLC Tranche B, term loan 4% 3/31/21 (g) | $ 1,164,318 | $ 1,158,497 | ||
Pharmedium Healthcare Corp.: | ||||
Tranche 2LN, term loan 7.75% 1/28/22 (g) | 120,000 | 120,600 | ||
Tranche B 1LN, term loan 4.25% 1/28/21 (g) | 205,000 | 202,950 | ||
| 7,650,731 | |||
Hotels - 0.1% | ||||
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (g) | 645,000 | 641,775 | ||
Insurance - 0.4% | ||||
StoneRiver Group LP: | ||||
Tranche 2LN, term loan 8.5% 5/30/20 (g) | 2,410,393 | 2,416,419 | ||
Tranche B 1LN, term loan 4.5% 11/30/19 (g) | 867,541 | 863,203 | ||
| 3,279,622 | |||
Leisure - 0.1% | ||||
Equinox Holdings, Inc. Tranche B 1LN, term loan 4.25% 2/1/20 (g) | 638,313 | 635,122 | ||
Metals/Mining - 0.4% | ||||
Fortescue Metals Group Ltd. Tranche B, term loan 4.25% 6/30/19 (g) | 1,397,975 | 1,389,238 | ||
Peabody Energy Corp. Tranche B, term loan 4.25% 9/24/20 (g) | 1,830,800 | 1,830,800 | ||
| 3,220,038 | |||
Publishing/Printing - 0.5% | ||||
ARC Document Solutions, Inc. Tranche B, term loan 6.25% 12/20/18 (g) | 3,987,750 | 4,037,597 | ||
Restaurants - 0.6% | ||||
Dunkin Brands, Inc. Tranche B 4LN, term loan 3.25% 2/7/21 (g) | 5,050,000 | 5,005,813 | ||
Services - 0.8% | ||||
ARAMARK Corp. Tranche F, term loan 3.25% 2/24/21 (g) | 415,000 | 409,813 | ||
Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 4.75% 11/26/20 (g) | 2,577,095 | 2,577,095 | ||
Garda World Security Corp.: | ||||
term loan 4% 11/8/20 (g) | 2,288,755 | 2,283,033 | ||
Tranche DD, term loan 4% 11/8/20 (g) | 585,495 | 584,032 | ||
Bank Loan Obligations - continued | ||||
| Principal Amount | Value | ||
Services - continued | ||||
Lineage Logistics Holdings, LLC. Tranche B, term loan 4.5% 4/7/21 (g) | $ 895,000 | $ 881,575 | ||
Orbitz Worldwide, Inc. Tranche C, term loan 4.5% 4/15/21 (g) | 435,000 | 435,544 | ||
| 7,171,092 | |||
Shipping - 0.1% | ||||
YRC Worldwide, Inc. Tranche B, term loan 8% 2/13/19 (g) | 678,300 | 683,387 | ||
Steel - 0.2% | ||||
Atkore International, Inc.: | ||||
Tranche 2LN, term loan 7.75% 10/9/21 (g) | 560,000 | 562,800 | ||
Tranche B 1LN, term loan 4.5% 4/9/21 (g) | 1,005,000 | 1,003,744 | ||
| 1,566,544 | |||
Technology - 1.4% | ||||
Avago Technologies, Inc. Tranche B, term loan 4/16/21 (h) | 1,980,000 | 1,989,900 | ||
DealerTrack Holdings, Inc. Tranche B LN, term loan 3.5% 2/28/21 (g) | 2,085,000 | 2,074,575 | ||
First Data Corp. term loan 4.1523% 3/24/18 (g) | 1,110,000 | 1,104,450 | ||
Freescale Semiconductor, Inc. Tranche B 4LN, term loan 4.25% 3/1/20 (g) | 1,725,675 | 1,723,518 | ||
Infor U.S., Inc. Tranche B 5LN, term loan 3.75% 6/3/20 (g) | 483,788 | 480,788 | ||
NXP BV Tranche D, term loan 3.75% 1/11/20 (g) | 2,079,550 | 2,063,953 | ||
Sungard Availability Services Capital, Inc. Tranche B, term loan 6% 3/31/19 (g) | 2,565,000 | 2,561,794 | ||
| 11,998,978 | |||
Telecommunications - 0.4% | ||||
Alcatel-Lucent U.S.A., Inc. Tranche C 1LN, term loan 4.5% 1/30/19 (g) | 3,621,662 | 3,617,135 | ||
TOTAL BANK LOAN OBLIGATIONS (Cost $86,514,431) |
|
Preferred Securities - 0.7% | |||
|
|
|
|
Banks & Thrifts - 0.7% | |||
Barclays Bank PLC 7.625% 11/21/22 | 4,405,000 | 5,151,812 | |
Barclays PLC 8.25% (e)(g) | 910,000 | 978,670 | |
TOTAL PREFERRED SECURITIES (Cost $5,371,020) |
| ||
Money Market Funds - 3.9% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 33,915,039 | $ 33,915,039 | |
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $849,539,652) | 878,635,666 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (9,948,888) | ||
NET ASSETS - 100% | $ 868,686,778 |
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. |
(c) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(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 $356,108,410 or 41.0% of net assets. |
(e) Security is perpetual in nature with no stated maturity date. |
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) The coupon rate will be determined upon settlement of the loan after period end. |
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 | $ 11,946 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Telecommunication Services | $ 92,272 | $ - | $ - | $ 92,272 |
Corporate Bonds | 751,604,255 | - | 751,604,255 | - |
Bank Loan Obligations | 86,893,618 | - | 86,893,618 | - |
Preferred Securities | 6,130,482 | - | 6,130,482 | - |
Money Market Funds | 33,915,039 | 33,915,039 | - | - |
Total Investments in Securities: | $ 878,635,666 | $ 33,915,039 | $ 844,628,355 | $ 92,272 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 77.2% |
Luxembourg | 5.7% |
Canada | 3.0% |
Bermuda | 2.7% |
Netherlands | 2.0% |
Cayman Islands | 1.4% |
Austria | 1.3% |
Marshall Islands | 1.2% |
United Kingdom | 1.2% |
Others (Individually Less Than 1%) | 4.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $815,624,613) | $ 844,720,627 |
|
Fidelity Central Funds (cost $33,915,039) | 33,915,039 |
|
Total Investments (cost $849,539,652) |
| $ 878,635,666 |
Cash |
| 2,847,823 |
Receivable for investments sold | 6,010,553 | |
Receivable for fund shares sold | 516,522 | |
Interest receivable | 12,576,637 | |
Distributions receivable from Fidelity Central Funds | 2,603 | |
Prepaid expenses | 592 | |
Receivable from investment adviser for expense reductions | 10,268 | |
Total assets | 900,600,664 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 22,021,850 | |
Delayed delivery | 6,908,119 | |
Payable for fund shares redeemed | 1,541,217 | |
Distributions payable | 643,270 | |
Accrued management fee | 405,026 | |
Distribution and service plan fees payable | 187,341 | |
Other affiliated payables | 170,637 | |
Other payables and accrued expenses | 36,426 | |
Total liabilities | 31,913,886 | |
|
|
|
Net Assets | $ 868,686,778 | |
Net Assets consist of: |
| |
Paid in capital | $ 828,078,784 | |
Undistributed net investment income | 11,761,583 | |
Accumulated undistributed net realized gain (loss) on investments | (249,603) | |
Net unrealized appreciation (depreciation) on investments | 29,096,014 | |
Net Assets | $ 868,686,778 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 8.49 | |
|
|
|
Maximum offering price per share (100/96.00 of $8.49) | $ 8.84 | |
Class T: | $ 8.47 | |
|
|
|
Maximum offering price per share (100/96.00 of $8.47) | $ 8.82 | |
Class B: | $ 8.46 | |
|
|
|
Class C: | $ 8.47 | |
|
|
|
Institutional Class: | $ 8.50 |
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.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 112,625 |
Interest |
| 26,243,544 |
Income from Fidelity Central Funds |
| 11,946 |
Total income |
| 26,368,115 |
|
|
|
Expenses | ||
Management fee | $ 2,403,952 | |
Transfer agent fees | 866,895 | |
Distribution and service plan fees | 1,124,696 | |
Accounting fees and expenses | 157,368 | |
Custodian fees and expenses | 9,332 | |
Independent trustees' compensation | 1,687 | |
Registration fees | 42,379 | |
Audit | 34,777 | |
Legal | 3,361 | |
Miscellaneous | 3,436 | |
Total expenses before reductions | 4,647,883 | |
Expense reductions | (51,644) | 4,596,239 |
Net investment income (loss) | 21,771,876 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 10,582,961 |
Change in net unrealized appreciation (depreciation) on investment securities | (327,577) | |
Net gain (loss) | 10,255,384 | |
Net increase (decrease) in net assets resulting from operations | $ 32,027,260 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 21,771,876 | $ 50,536,768 |
Net realized gain (loss) | 10,582,961 | 36,587,680 |
Change in net unrealized appreciation (depreciation) | (327,577) | (24,249,415) |
Net increase (decrease) in net assets resulting | 32,027,260 | 62,875,033 |
Distributions to shareholders from net investment income | (21,668,494) | (48,912,015) |
Distributions to shareholders from net realized gain | (37,717,722) | (10,710,125) |
Total distributions | (59,386,216) | (59,622,140) |
Share transactions - net increase (decrease) | 25,986,628 | (160,938,070) |
Redemption fees | 22,658 | 74,188 |
Total increase (decrease) in net assets | (1,349,670) | (157,610,989) |
|
|
|
Net Assets | ||
Beginning of period | 870,036,448 | 1,027,647,437 |
End of period (including undistributed net investment income of $11,761,583 and undistributed net investment income of $11,658,201, respectively) | $ 868,686,778 | $ 870,036,448 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.77 | $ 8.73 | $ 8.38 | $ 8.59 | $ 7.87 | $ 6.48 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .218 | .473 | .539 | .581 | .637 | .625 |
Net realized and unrealized gain (loss) | .105 | .117 | .411 | (.204) | .673 | 1.318 |
Total from investment operations | .323 | .590 | .950 | .377 | 1.310 | 1.943 |
Distributions from net investment income | (.217) | (.457) | (.551) | (.589) | (.591) | (.556) |
Distributions from net realized gain | (.386) | (.094) | (.050) | - | - | - |
Total distributions | (.603) | (.551) | (.601) | (.589) | (.591) | (.556) |
Redemption fees added to paid in capital E | - H | .001 | .001 | .002 | .001 | .003 |
Net asset value, end of period | $ 8.49 | $ 8.77 | $ 8.73 | $ 8.38 | $ 8.59 | $ 7.87 |
Total Return B, C, D | 3.89% | 6.99% | 11.84% | 4.53% | 17.33% | 31.69% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.04% A | 1.03% | 1.03% | 1.04% | 1.06% | 1.09% |
Expenses net of fee waivers, if any | 1.04% A | 1.03% | 1.03% | 1.04% | 1.06% | 1.09% |
Expenses net of all reductions | 1.04% A | 1.03% | 1.03% | 1.04% | 1.06% | 1.08% |
Net investment income (loss) | 5.18% A | 5.40% | 6.35% | 6.82% | 7.81% | 8.91% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 272,573 | $ 280,769 | $ 331,436 | $ 264,110 | $ 278,577 | $ 282,936 |
Portfolio turnover rate G | 84% A | 76% | 48% | 75% | 79% | 54% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HAmount represents less than $.001 per share. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.76 | $ 8.72 | $ 8.37 | $ 8.57 | $ 7.86 | $ 6.48 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .217 | .469 | .536 | .578 | .633 | .622 |
Net realized and unrealized gain (loss) | .095 | .119 | .411 | (.193) | .665 | 1.310 |
Total from investment operations | .312 | .588 | .947 | .385 | 1.298 | 1.932 |
Distributions from net investment income | (.216) | (.455) | (.548) | (.587) | (.589) | (.555) |
Distributions from net realized gain | (.386) | (.094) | (.050) | - | - | - |
Total distributions | (.602) | (.549) | (.598) | (.587) | (.589) | (.555) |
Redemption fees added to paid in capital E | - I | .001 | .001 | .002 | .001 | .003 |
Net asset value, end of period | $ 8.47 | $ 8.76 | $ 8.72 | $ 8.37 | $ 8.57 | $ 7.86 |
Total Return B, C, D | 3.76% | 6.97% | 11.83% | 4.63% | 17.17% | 31.52% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.06% A | 1.05% | 1.06% | 1.07% | 1.11% | 1.16% |
Expenses net of fee waivers, if any | 1.06% A | 1.05% | 1.06% | 1.07% | 1.10% | 1.10% |
Expenses net of all reductions | 1.06% A | 1.05% | 1.06% | 1.07% | 1.10% | 1.10% |
Net investment income (loss) | 5.15% A | 5.38% | 6.32% | 6.79% | 7.78% | 8.89% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 90,607 | $ 90,901 | $ 105,518 | $ 92,746 | $ 119,576 | $ 111,601 |
Portfolio turnover rate G | 84% A | 76% | 48% | 75% | 79% | 54% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.001 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.75 | $ 8.71 | $ 8.36 | $ 8.57 | $ 7.85 | $ 6.47 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .188 | .408 | .477 | .521 | .579 | .571 |
Net realized and unrealized gain (loss) | .095 | .119 | .412 | (.204) | .676 | 1.317 |
Total from investment operations | .283 | .527 | .889 | .317 | 1.255 | 1.888 |
Distributions from net investment income | (.187) | (.394) | (.490) | (.529) | (.536) | (.511) |
Distributions from net realized gain | (.386) | (.094) | (.050) | - | - | - |
Total distributions | (.573) | (.488) | (.540) | (.529) | (.536) | (.511) |
Redemption fees added to paid in capital E | - I | .001 | .001 | .002 | .001 | .003 |
Net asset value, end of period | $ 8.46 | $ 8.75 | $ 8.71 | $ 8.36 | $ 8.57 | $ 7.85 |
Total Return B, C, D | 3.41% | 6.24% | 11.08% | 3.81% | 16.58% | 30.73% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.75% A | 1.75% | 1.76% | 1.77% | 1.80% | 1.81% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.75% A | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
Net investment income (loss) | 4.46% A | 4.68% | 5.64% | 6.11% | 7.13% | 8.25% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 11,220 | $ 13,176 | $ 17,309 | $ 19,647 | $ 29,065 | $ 32,894 |
Portfolio turnover rate G | 84% A | 76% | 48% | 75% | 79% | 54% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.001 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.75 | $ 8.71 | $ 8.36 | $ 8.57 | $ 7.85 | $ 6.47 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .185 | .405 | .474 | .516 | .575 | .572 |
Net realized and unrealized gain (loss) | .106 | .119 | .412 | (.202) | .675 | 1.309 |
Total from investment operations | .291 | .524 | .886 | .314 | 1.250 | 1.881 |
Distributions from net investment income | (.185) | (.391) | (.487) | (.526) | (.531) | (.504) |
Distributions from net realized gain | (.386) | (.094) | (.050) | - | - | - |
Total distributions | (.571) | (.485) | (.537) | (.526) | (.531) | (.504) |
Redemption fees added to paid in capital E | - I | .001 | .001 | .002 | .001 | .003 |
Net asset value, end of period | $ 8.47 | $ 8.75 | $ 8.71 | $ 8.36 | $ 8.57 | $ 7.85 |
Total Return B, C, D | 3.50% | 6.20% | 11.03% | 3.77% | 16.51% | 30.60% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.81% A | 1.79% | 1.79% | 1.79% | 1.81% | 1.85% |
Expenses net of fee waivers, if any | 1.81% A | 1.79% | 1.79% | 1.79% | 1.81% | 1.85% |
Expenses net of all reductions | 1.81% A | 1.79% | 1.79% | 1.79% | 1.81% | 1.85% |
Net investment income (loss) | 4.40% A | 4.64% | 5.60% | 6.08% | 7.07% | 8.15% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 123,999 | $ 126,952 | $ 149,591 | $ 120,710 | $ 121,796 | $ 98,361 |
Portfolio turnover rate G | 84% A | 76% | 48% | 75% | 79% | 54% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.001 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.79 | $ 8.75 | $ 8.40 | $ 8.60 | $ 7.88 | $ 6.49 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .226 | .489 | .556 | .598 | .655 | .637 |
Net realized and unrealized gain (loss) | .095 | .116 | .409 | (.195) | .673 | 1.323 |
Total from investment operations | .321 | .605 | .965 | .403 | 1.328 | 1.960 |
Distributions from net investment income | (.225) | (.472) | (.566) | (.605) | (.609) | (.573) |
Distributions from net realized gain | (.386) | (.094) | (.050) | - | - | - |
Total distributions | (.611) | (.566) | (.616) | (.605) | (.609) | (.573) |
Redemption fees added to paid in capital D | - H | .001 | .001 | .002 | .001 | .003 |
Net asset value, end of period | $ 8.50 | $ 8.79 | $ 8.75 | $ 8.40 | $ 8.60 | $ 7.88 |
Total Return B, C | 3.85% | 7.16% | 12.02% | 4.85% | 17.55% | 31.95% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .88% A | .87% | .88% | .88% | .89% | .90% |
Expenses net of fee waivers, if any | .85% A | .85% | .85% | .85% | .85% | .85% |
Expenses net of all reductions | .85% A | .85% | .85% | .85% | .85% | .85% |
Net investment income (loss) | 5.36% A | 5.58% | 6.54% | 7.01% | 8.03% | 9.15% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 370,288 | $ 358,238 | $ 423,792 | $ 311,790 | $ 329,601 | $ 251,945 |
Portfolio turnover rate F | 84% A | 76% | 48% | 75% | 79% | 54% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount represents less than $.001 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® High Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities, are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014 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 and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Class Allocations and Expenses - continued
and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends 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 dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 34,029,045 |
Gross unrealized depreciation | (4,025,334) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 30,003,711 |
|
|
Tax cost | $ 848,631,955 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $346,879,817 and $348,595,922, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 337,832 | $ 9,732 |
Class T | -% | .25% | 112,705 | 1,471 |
Class B | .65% | .25% | 54,770 | 39,771 |
Class C | .75% | .25% | 619,389 | 71,525 |
|
|
| $ 1,124,696 | $ 122,499 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14,788 |
Class T | 261 |
Class B* | 7,442 |
Class C* | 4,113 |
| $ 26,604 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 214,290 | .16 |
Class T | 81,268 | .18 |
Class B | 13,118 | .22 |
Class C | 106,720 | .17 |
Institutional Class | 451,499 | .25 |
| $ 866,895 |
|
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $795 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class B | 1.75% | $ 56 |
Institutional Class | .85% | 51,311 |
|
| $ 51,367 |
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $277.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 6,902,033 | $ 16,314,142 |
Class T | 2,297,438 | 5,161,023 |
Class B | 269,749 | 691,999 |
Class C | 2,701,722 | 6,288,608 |
Institutional Class | 9,497,552 | 20,456,243 |
Total | $ 21,668,494 | $ 48,912,015 |
From net realized gain |
|
|
Class A | $ 11,887,120 | $ 3,483,705 |
Class T | 3,964,314 | 1,140,878 |
Class B | 562,903 | 184,860 |
Class C | 5,549,372 | 1,602,754 |
Institutional Class | 15,754,013 | 4,297,928 |
Total | $ 37,717,722 | $ 10,710,125 |
Semiannual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 4,151,143 | 7,091,246 | $ 35,292,055 | $ 62,129,968 |
Reinvestment of distributions | 1,850,862 | 1,758,588 | 15,577,430 | 15,357,657 |
Shares redeemed | (5,899,900) | (14,804,694) | (50,433,084) | (129,032,339) |
Net increase (decrease) | 102,105 | (5,954,860) | $ 436,401 | $ (51,544,714) |
Class T |
|
|
|
|
Shares sold | 713,041 | 1,497,548 | $ 6,034,919 | $ 13,070,279 |
Reinvestment of distributions | 657,326 | 583,493 | 5,521,348 | 5,087,202 |
Shares redeemed | (1,056,909) | (3,805,963) | (8,976,036) | (33,189,003) |
Net increase (decrease) | 313,458 | (1,724,922) | $ 2,580,231 | $ (15,031,522) |
Class B |
|
|
|
|
Shares sold | 56,043 | 88,671 | $ 473,659 | $ 772,890 |
Reinvestment of distributions | 78,236 | 75,832 | 656,356 | 660,444 |
Shares redeemed | (314,767) | (645,956) | (2,667,805) | (5,631,561) |
Net increase (decrease) | (180,488) | (481,453) | $ (1,537,790) | $ (4,198,227) |
Class C |
|
|
|
|
Shares sold | 1,224,396 | 2,788,587 | $ 10,364,687 | $ 24,348,512 |
Reinvestment of distributions | 813,312 | 705,870 | 6,823,779 | 6,148,005 |
Shares redeemed | (1,899,225) | (6,159,803) | (16,087,647) | (53,679,905) |
Net increase (decrease) | 138,483 | (2,665,346) | $ 1,100,819 | $ (23,183,388) |
Institutional Class |
|
|
|
|
Shares sold | 6,743,209 | 7,283,471 | $ 57,690,993 | $ 63,781,595 |
Reinvestment of distributions | 2,652,624 | 2,604,592 | 22,374,657 | 22,781,805 |
Shares redeemed | (6,621,424) | (17,581,432) | (56,658,683) | (153,543,619) |
Net increase (decrease) | 2,774,409 | (7,693,369) | $ 23,406,967 | $ (66,980,219) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
AHII-USAN-0614 1.784885.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
High Income
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to financial statements. |
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.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.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,038.90 | $ 5.26 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.64 | $ 5.21 |
Class T | 1.06% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,037.60 | $ 5.36 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.54 | $ 5.31 |
Class B | 1.75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,034.10 | $ 8.83 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.12 | $ 8.75 |
Class C | 1.81% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,035.00 | $ 9.13 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.82 | $ 9.05 |
Institutional Class | .85% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,038.50 | $ 4.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.58 | $ 4.26 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Holdings as of April 30, 2014 | ||
(by issuer, excluding cash equivalents) | % of fund's | % of fund's net assets |
Clear Channel Communications, Inc. | 1.8 | 0.4 |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA | 1.6 | 1.5 |
Tenet Healthcare Corp. | 1.6 | 0.6 |
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | 1.6 | 1.7 |
Digicel Group Ltd. | 1.4 | 1.0 |
| 8.0 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Energy | 13.2 | 13.9 |
Telecommunications | 8.1 | 7.6 |
Technology | 7.7 | 8.4 |
Diversified Financial Services | 6.4 | 5.5 |
Healthcare | 6.4 | 4.9 |
Quality Diversification (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
![]() | BBB 1.3% |
| ![]() | BBB 0.8% |
| ||
![]() | BB 35.1% |
| ![]() | BB 35.6% |
| ||
![]() | B 43.2% |
| ![]() | B 44.6% |
| ||
![]() | CCC,CC,C 16.2% |
| ![]() | CCC,CC,C 14.7% |
| ||
![]() | Not Rated 1.4% |
| ![]() | Not Rated 0.4% |
| ||
![]() | Other Investments 0.0% |
| ![]() | Other Investments 0.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014* | As of October 31, 2013** | ||||||
![]() | Nonconvertible |
| ![]() | Nonconvertible |
| ||
![]() | Common Stocks 0.0% |
| ![]() | Common Stocks 0.1% |
| ||
![]() | Bank Loan |
| ![]() | Bank Loan |
| ||
![]() | Other Investments 0.7% |
| ![]() | Other Investments 0.4% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 22.8% |
| ** Foreign investments | 21.6% |
|
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Nonconvertible Bonds - 86.5% | ||||
| Principal Amount | Value | ||
Aerospace - 0.9% | ||||
GenCorp, Inc. 7.125% 3/15/21 | $ 580,000 | $ 629,300 | ||
TransDigm, Inc.: | ||||
5.5% 10/15/20 | 3,965,000 | 4,004,650 | ||
7.5% 7/15/21 | 1,855,000 | 2,040,500 | ||
Triumph Group, Inc. 4.875% 4/1/21 | 1,420,000 | 1,398,700 | ||
| 8,073,150 | |||
Air Transportation - 3.7% | ||||
Air Canada: | ||||
6.625% 5/15/18 (d) | 3,205,000 | 3,323,265 | ||
7.75% 4/15/21 (d) | 1,400,000 | 1,426,250 | ||
American Airlines, Inc. pass-thru certificates Series 2013-1B Class B, 5.625% 1/15/21 (d) | 305,774 | 313,418 | ||
Continental Airlines, Inc.: | ||||
pass-thru trust certificates 9.798% 4/1/21 | 1,143,457 | 1,314,975 | ||
6.125% 4/29/18 (d) | 345,000 | 367,425 | ||
6.25% 10/11/21 | 2,044,423 | 2,223,310 | ||
9.25% 5/10/17 | 1,301,543 | 1,470,743 | ||
Delta Air Lines, Inc. pass-thru trust certificates: | ||||
Series 2012-1B Class B, 6.875% 5/7/19 (d) | 2,543,987 | 2,792,026 | ||
6.375% 7/2/17 (d) | 1,375,000 | 1,474,688 | ||
6.75% 5/23/17 | 1,375,000 | 1,474,688 | ||
8.021% 8/10/22 | 1,101,948 | 1,278,259 | ||
8.954% 8/10/14 | 847,500 | 862,332 | ||
Northwest Airlines, Inc. pass-thru trust certificates 8.028% 11/1/17 | 329,912 | 361,682 | ||
U.S. Airways Group, Inc. 6.125% 6/1/18 | 1,950,000 | 2,052,375 | ||
U.S. Airways pass-thru certificates: | ||||
Series 2012-2C, 5.45% 6/3/18 | 2,215,000 | 2,275,913 | ||
Series 2013-1 Class B, 5.375% 5/15/23 | 450,000 | 461,250 | ||
United Air Lines, Inc. pass-thru trust certificates: | ||||
Class B, 7.336% 7/2/19 | 939,309 | 1,023,847 | ||
9.75% 1/15/17 | 1,006,633 | 1,157,628 | ||
12% 1/15/16 (d) | 269,269 | 304,274 | ||
United Continental Holdings, Inc.: | ||||
6% 12/1/20 | 2,635,000 | 2,733,813 | ||
6% 7/15/26 | 1,700,000 | 1,627,750 | ||
6% 7/15/28 | 1,705,000 | 1,594,175 | ||
6.375% 6/1/18 | 185,000 | 199,338 | ||
| 32,113,424 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Automotive - 2.9% | ||||
American Axle & Manufacturing, Inc.: | ||||
5.125% 2/15/19 | $ 335,000 | $ 350,913 | ||
6.25% 3/15/21 | 2,970,000 | 3,140,775 | ||
Chrysler Group LLC/CG Co-Issuer, Inc. 8% 6/15/19 (d) | 2,500,000 | 2,737,500 | ||
Dana Holding Corp.: | ||||
5.375% 9/15/21 | 690,000 | 712,425 | ||
6% 9/15/23 | 690,000 | 726,225 | ||
6.5% 2/15/19 | 985,000 | 1,046,563 | ||
6.75% 2/15/21 | 1,210,000 | 1,311,338 | ||
General Motors Co. 3.5% 10/2/18 (d) | 3,645,000 | 3,722,456 | ||
General Motors Financial Co., Inc.: | ||||
3.25% 5/15/18 | 4,350,000 | 4,393,500 | ||
4.75% 8/15/17 | 2,285,000 | 2,444,950 | ||
Jaguar Land Rover PLC 4.125% 12/15/18 (d) | 1,515,000 | 1,564,238 | ||
Schaeffler Holding Finance BV 6.875% 8/15/18 pay-in-kind (d)(g) | 2,965,000 | 3,146,606 | ||
| 25,297,489 | |||
Banks & Thrifts - 0.6% | ||||
Ally Financial, Inc.: | ||||
2.75% 1/30/17 | 1,715,000 | 1,736,438 | ||
4.75% 9/10/18 | 1,315,000 | 1,393,900 | ||
Royal Bank of Scotland Group PLC 6% 12/19/23 | 215,000 | 224,604 | ||
Synovus Financial Corp.: | ||||
5.125% 6/15/17 | 475,000 | 499,938 | ||
7.875% 2/15/19 | 990,000 | 1,131,075 | ||
| 4,985,955 | |||
Broadcasting - 2.0% | ||||
AMC Networks, Inc. 4.75% 12/15/22 | 1,355,000 | 1,351,613 | ||
CCU Escrow Corp. 10% 1/15/18 (d) | 3,000,000 | 2,932,500 | ||
Clear Channel Communications, Inc.: | ||||
4.9% 5/15/15 | 1,535,000 | 1,592,563 | ||
5.5% 12/15/16 | 8,420,000 | 8,251,600 | ||
9% 12/15/19 | 1,230,000 | 1,309,950 | ||
Starz LLC/Starz Finance Corp. 5% 9/15/19 | 2,135,000 | 2,212,394 | ||
| 17,650,620 | |||
Building Materials - 2.7% | ||||
Building Materials Corp. of America: | ||||
6.75% 5/1/21 (d) | 2,385,000 | 2,581,763 | ||
6.875% 8/15/18 (d) | 2,715,000 | 2,833,781 | ||
Building Materials Holding Corp. 9% 9/15/18 (d) | 2,790,000 | 3,034,125 | ||
CEMEX Finance LLC 6% 4/1/24 (d) | 1,190,000 | 1,193,630 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Building Materials - continued | ||||
CEMEX S.A.B. de CV 6.5% 12/10/19 (d) | $ 750,000 | $ 787,500 | ||
HD Supply, Inc. 7.5% 7/15/20 | 2,910,000 | 3,150,075 | ||
Headwaters, Inc.: | ||||
7.25% 1/15/19 (d) | 520,000 | 547,300 | ||
7.625% 4/1/19 | 2,175,000 | 2,338,125 | ||
Masco Corp. 5.95% 3/15/22 | 3,400,000 | 3,706,000 | ||
Ply Gem Industries, Inc. 6.5% 2/1/22 (d) | 780,000 | 780,000 | ||
Texas Industries, Inc. 9.25% 8/15/20 | 1,390,000 | 1,591,550 | ||
U.S. Concrete, Inc. 8.5% 12/1/18 (d) | 665,000 | 723,188 | ||
| 23,267,037 | |||
Cable TV - 3.3% | ||||
Altice S.A. 7.75% 5/15/22 (d)(f) | 1,380,000 | 1,438,650 | ||
Cablevision Systems Corp. 7.75% 4/15/18 | 530,000 | 600,888 | ||
CCO Holdings LLC/CCO Holdings Capital Corp. 7% 1/15/19 | 3,470,000 | 3,665,188 | ||
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (d) | 2,255,000 | 2,362,113 | ||
Cequel Communications Holdings I LLC/Cequel Capital Corp. 5.125% 12/15/21 (d) | 2,690,000 | 2,622,750 | ||
Cogeco Cable, Inc. 4.875% 5/1/20 (d) | 450,000 | 452,250 | ||
DISH DBS Corp. 4.25% 4/1/18 | 1,100,000 | 1,149,500 | ||
Harron Communications LP/Harron Finance Corp. 9.125% 4/1/20 (d) | 1,865,000 | 2,098,125 | ||
Numericable Group SA: | ||||
4.875% 5/15/19 (d)(f) | 1,430,000 | 1,444,300 | ||
6% 5/15/22 (d)(f) | 2,475,000 | 2,533,781 | ||
6.25% 5/15/24 (d)(f) | 490,000 | 501,638 | ||
RCN Telecom Services LLC/RCN Capital Corp. 8.5% 8/15/20 (d) | 1,600,000 | 1,696,000 | ||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 5.5% 1/15/23 (d) | 1,115,000 | 1,126,150 | ||
UPCB Finance V Ltd. 7.25% 11/15/21 (d) | 2,545,000 | 2,805,863 | ||
WaveDivision Escrow LLC/WaveDivision Escrow Corp. 8.125% 9/1/20 (d) | 3,930,000 | 4,205,100 | ||
| 28,702,296 | |||
Capital Goods - 0.5% | ||||
J.B. Poindexter & Co., Inc. 9% 4/1/22 (d) | 3,615,000 | 3,967,463 | ||
Chemicals - 2.7% | ||||
Kinove German Bondco GmbH 9.625% 6/15/18 (d) | 1,892,000 | 2,043,360 | ||
LSB Industries, Inc. 7.75% 8/1/19 (d) | 1,085,000 | 1,160,950 | ||
Nufarm Australia Ltd. 6.375% 10/15/19 (d) | 3,740,000 | 3,861,550 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Chemicals - continued | ||||
Rentech Nitrogen Partners LP/Rentech Nitrogen Finance Corp. 6.5% 4/15/21 (d) | $ 635,000 | $ 625,475 | ||
Rockwood Specialties Group, Inc. 4.625% 10/15/20 | 1,870,000 | 1,916,750 | ||
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. 8.75% 2/1/19 | 8,925,000 | 9,505,125 | ||
Tronox Finance LLC 6.375% 8/15/20 | 4,605,000 | 4,697,100 | ||
| 23,810,310 | |||
Consumer Products - 0.3% | ||||
First Quality Finance Co., Inc. 4.625% 5/15/21 (d) | 2,510,000 | 2,371,950 | ||
Containers - 3.0% | ||||
Ardagh Packaging Finance PLC 7.375% 10/15/17 (d) | 3,630,000 | 3,847,800 | ||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | ||||
6.25% 1/31/19 (d) | 500,000 | 521,250 | ||
6.75% 1/31/21 (d) | 580,000 | 604,650 | ||
7% 11/15/20 (d) | 105,000 | 109,463 | ||
7.375% 10/15/17 (d) | 235,000 | 248,806 | ||
Beverage Packaging Holdings II SA (Luxembourg): | ||||
5.625% 12/15/16 (d) | 1,085,000 | 1,108,056 | ||
6% 6/15/17 (d) | 1,415,000 | 1,457,450 | ||
BOE Intermediate Holding Corp. 9.75% 11/1/17 pay-in-kind (d)(g) | 1,359,150 | 1,427,108 | ||
Crown Americas LLC/Crown Americas Capital Corp. IV 4.5% 1/15/23 | 2,645,000 | 2,525,975 | ||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | ||||
5.75% 10/15/20 | 6,155,000 | 6,401,200 | ||
7.875% 8/15/19 | 1,945,000 | 2,134,638 | ||
8.5% 5/15/18 (c) | 870,000 | 909,150 | ||
9.875% 8/15/19 | 4,065,000 | 4,512,150 | ||
| 25,807,696 | |||
Diversified Financial Services - 5.8% | ||||
Aircastle Ltd.: | ||||
4.625% 12/15/18 | 710,000 | 726,863 | ||
5.125% 3/15/21 | 1,535,000 | 1,542,675 | ||
6.25% 12/1/19 | 1,175,000 | 1,266,063 | ||
6.75% 4/15/17 | 1,375,000 | 1,540,000 | ||
CIT Group, Inc.: | ||||
3.875% 2/19/19 | 1,390,000 | 1,405,638 | ||
5.25% 3/15/18 | 2,120,000 | 2,273,700 | ||
5.5% 2/15/19 (d) | 4,000,000 | 4,310,000 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Diversified Financial Services - continued | ||||
CIT Group, Inc.: - continued | ||||
6.625% 4/1/18 (d) | $ 2,045,000 | $ 2,282,731 | ||
FLY Leasing Ltd. 6.75% 12/15/20 | 2,290,000 | 2,395,913 | ||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
3.5% 3/15/17 (d) | 985,000 | 992,388 | ||
4.875% 3/15/19 (d) | 3,120,000 | 3,162,900 | ||
5.875% 2/1/22 (d) | 3,970,000 | 4,029,550 | ||
6% 8/1/20 (d) | 4,635,000 | 4,889,925 | ||
ILFC E-Capital Trust I 5.46% 12/21/65 (d)(g) | 1,745,000 | 1,657,750 | ||
ILFC E-Capital Trust II 6.25% 12/21/65 (d)(g) | 3,100,000 | 2,999,250 | ||
International Lease Finance Corp.: | ||||
5.875% 4/1/19 | 1,025,000 | 1,112,125 | ||
5.875% 8/15/22 | 2,550,000 | 2,690,250 | ||
6.25% 5/15/19 | 1,485,000 | 1,639,069 | ||
SLM Corp.: | ||||
4.875% 6/17/19 | 4,765,000 | 4,902,013 | ||
5.5% 1/15/19 | 2,080,000 | 2,187,120 | ||
8% 3/25/20 | 1,020,000 | 1,178,100 | ||
8.45% 6/15/18 | 1,015,000 | 1,196,431 | ||
| 50,380,454 | |||
Diversified Media - 1.2% | ||||
Clear Channel Worldwide Holdings, Inc.: | ||||
6.5% 11/15/22 | 1,810,000 | 1,927,650 | ||
6.5% 11/15/22 | 3,425,000 | 3,664,750 | ||
MDC Partners, Inc. 6.75% 4/1/20 (d) | 1,075,000 | 1,136,813 | ||
Nielsen Finance LLC/Nielsen Finance Co. 4.5% 10/1/20 | 1,725,000 | 1,737,938 | ||
The Nielsen Co. S.a.r.l. (Luxembourg) 5.5% 10/1/21 (d) | 2,280,000 | 2,376,900 | ||
| 10,844,051 | |||
Electric Utilities - 3.1% | ||||
Atlantic Power Corp. 9% 11/15/18 | 3,340,000 | 3,523,700 | ||
NRG Energy, Inc.: | ||||
6.25% 7/15/22 (d) | 2,105,000 | 2,176,044 | ||
6.25% 5/1/24 (d) | 2,590,000 | 2,599,713 | ||
NSG Holdings II, LLC 7.75% 12/15/25 (d) | 9,460,000 | 10,122,158 | ||
The AES Corp.: | ||||
4.875% 5/15/23 | 1,120,000 | 1,072,400 | ||
7.375% 7/1/21 | 6,775,000 | 7,757,375 | ||
| 27,251,390 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Energy - 12.3% | ||||
Access Midstream Partners LP/ACMP Finance Corp.: | ||||
4.875% 5/15/23 | $ 1,405,000 | $ 1,422,563 | ||
4.875% 3/15/24 | 555,000 | 552,225 | ||
Approach Resources, Inc. 7% 6/15/21 | 3,645,000 | 3,781,688 | ||
Basic Energy Services, Inc. 7.75% 2/15/19 | 350,000 | 374,500 | ||
Chesapeake Energy Corp.: | ||||
3.4677% 4/15/19 (g) | 1,425,000 | 1,439,250 | ||
4.875% 4/15/22 | 1,425,000 | 1,426,781 | ||
6.125% 2/15/21 | 3,270,000 | 3,580,650 | ||
Chesapeake Midstream Partners LP/CHKM Finance Corp.: | ||||
5.875% 4/15/21 | 1,030,000 | 1,096,950 | ||
6.125% 7/15/22 | 2,375,000 | 2,567,969 | ||
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: | ||||
6.125% 3/1/22 (d) | 690,000 | 721,050 | ||
7.75% 4/1/19 | 940,000 | 1,017,550 | ||
CVR Refining LLC/Coffeyville Finance, Inc. 6.5% 11/1/22 | 1,520,000 | 1,596,000 | ||
Denbury Resources, Inc.: | ||||
5.5% 5/1/22 | 2,145,000 | 2,169,131 | ||
6.375% 8/15/21 | 1,555,000 | 1,667,738 | ||
Endeavor Energy Resources LP/EER Finance, Inc. 7% 8/15/21 (d) | 5,275,000 | 5,565,125 | ||
Energy Partners Ltd. 8.25% 2/15/18 | 2,645,000 | 2,856,600 | ||
EP Energy LLC/Everest Acquisition Finance, Inc. 7.75% 9/1/22 | 2,635,000 | 2,934,731 | ||
Everest Acquisition LLC/Everest Acquisition Finance, Inc.: | ||||
6.875% 5/1/19 | 1,130,000 | 1,213,338 | ||
9.375% 5/1/20 | 4,570,000 | 5,266,925 | ||
Expro Finance Luxembourg SCA 8.5% 12/15/16 (d) | 4,568,000 | 4,773,560 | ||
Exterran Holdings, Inc. 7.25% 12/1/18 | 3,260,000 | 3,451,525 | ||
Exterran Partners LP/EXLP Finance Corp.: | ||||
6% 4/1/21 | 2,755,000 | 2,755,000 | ||
6% 10/1/22 (d) | 965,000 | 960,175 | ||
Forbes Energy Services Ltd. 9% 6/15/19 | 3,200,000 | 3,272,000 | ||
Gibson Energy, Inc. 6.75% 7/15/21 (d) | 2,310,000 | 2,494,800 | ||
Hornbeck Offshore Services, Inc.: | ||||
5% 3/1/21 | 1,195,000 | 1,159,150 | ||
5.875% 4/1/20 | 780,000 | 811,200 | ||
Northern Tier Energy LLC/Northern Tier Finance Corp. 7.125% 11/15/20 | 2,695,000 | 2,890,388 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Energy - continued | ||||
Offshore Group Investment Ltd.: | ||||
7.125% 4/1/23 | $ 1,200,000 | $ 1,182,000 | ||
7.5% 11/1/19 | 5,035,000 | 5,236,400 | ||
Oil States International, Inc. 6.5% 6/1/19 | 1,665,000 | 1,750,331 | ||
Pacific Drilling SA 5.375% 6/1/20 (d) | 2,985,000 | 2,902,913 | ||
Parsley Energy LLC/ Parsley 7.5% 2/15/22 (d) | 3,045,000 | 3,182,025 | ||
Petroleum Geo-Services ASA 7.375% 12/15/18 (d) | 2,040,000 | 2,193,000 | ||
Precision Drilling Corp. 6.625% 11/15/20 | 1,760,000 | 1,892,000 | ||
Rice Energy, Inc. 6.25% 5/1/22 (d) | 2,345,000 | 2,347,931 | ||
Samson Investment Co. 10.75% 2/15/20 (d) | 6,275,000 | 6,620,125 | ||
SemGroup Corp. 7.5% 6/15/21 | 2,355,000 | 2,555,175 | ||
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: | ||||
4.25% 11/15/23 (d) | 1,535,000 | 1,435,225 | ||
5.25% 5/1/23 | 1,635,000 | 1,635,000 | ||
6.375% 8/1/22 | 354,000 | 378,780 | ||
6.875% 2/1/21 | 1,955,000 | 2,096,738 | ||
Tesoro Logistics LP/Tesoro Logistics Finance Corp. 6.125% 10/15/21 | 545,000 | 576,338 | ||
Western Refining, Inc. 6.25% 4/1/21 | 3,575,000 | 3,718,000 | ||
Whiting Petroleum Corp. 5% 3/15/19 | 2,935,000 | 3,089,088 | ||
| 106,609,631 | |||
Entertainment/Film - 0.1% | ||||
NAI Entertainment Holdings LLC/NAI Entertainment Finance Corp. 5% 8/1/18 (d) | 675,000 | 703,688 | ||
Environmental - 1.1% | ||||
ADS Waste Holdings, Inc. 8.25% 10/1/20 | 3,345,000 | 3,625,144 | ||
Clean Harbors, Inc.: | ||||
5.125% 6/1/21 | 270,000 | 273,038 | ||
5.25% 8/1/20 | 1,715,000 | 1,757,875 | ||
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (d) | 2,918,000 | 3,093,080 | ||
Tervita Corp.: | ||||
9.75% 11/1/19 (d) | 260,000 | 235,300 | ||
10.875% 2/15/18 (d) | 400,000 | 384,000 | ||
| 9,368,437 | |||
Food & Drug Retail - 0.7% | ||||
JBS Investments GmbH: | ||||
7.25% 4/3/24 (d) | 995,000 | 1,001,666 | ||
7.75% 10/28/20 (d) | 2,200,000 | 2,340,250 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Food & Drug Retail - continued | ||||
Minerva Luxmbourg SA 7.75% 1/31/23 (d) | $ 425,000 | $ 437,219 | ||
SUPERVALU, Inc. 6.75% 6/1/21 | 2,585,000 | 2,623,775 | ||
| 6,402,910 | |||
Food/Beverage/Tobacco - 2.3% | ||||
DS Waters of America, Inc. 10% 9/1/21 (d) | 940,000 | 1,043,400 | ||
ESAL GmbH 6.25% 2/5/23 (d) | 6,595,000 | 6,298,225 | ||
FAGE Dairy Industry SA/FAGE U.S.A. Dairy Industry, Inc. 9.875% 2/1/20 (d) | 2,050,000 | 2,214,000 | ||
Hawk Acquisition Sub, Inc. 4.25% 10/15/20 (d) | 3,655,000 | 3,602,003 | ||
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: | ||||
7.25% 6/1/21 (d) | 1,850,000 | 1,995,688 | ||
8.25% 2/1/20 (d) | 4,220,000 | 4,618,790 | ||
| 19,772,106 | |||
Gaming - 2.4% | ||||
Caesars Growth Propeties Holdings LLC/Caesars Growth Properties Finance, Inc. 9.375% 5/1/22 (d) | 1,555,000 | 1,551,113 | ||
GLP Capital LP/GLP Financing II, Inc.: | ||||
4.375% 11/1/18 (d) | 1,020,000 | 1,055,700 | ||
5.375% 11/1/23 (d) | 770,000 | 793,100 | ||
Golden Nugget Escrow, Inc. 8.5% 12/1/21 (d) | 4,475,000 | 4,598,063 | ||
MCE Finance Ltd. 5% 2/15/21 (d) | 2,630,000 | 2,623,425 | ||
MGM Mirage, Inc.: | ||||
8.625% 2/1/19 | 1,785,000 | 2,130,844 | ||
11.375% 3/1/18 | 1,655,000 | 2,147,363 | ||
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc.: | ||||
8% 10/1/20 (d) | 1,740,000 | 1,809,600 | ||
11% 10/1/21 (d) | 1,735,000 | 1,804,400 | ||
Seminole Hard Rock Entertainment, Inc. 5.875% 5/15/21 (d) | 940,000 | 937,650 | ||
Wynn Macau Ltd. 5.25% 10/15/21 (d) | 1,080,000 | 1,096,200 | ||
| 20,547,458 | |||
Healthcare - 5.5% | ||||
Community Health Systems, Inc.: | ||||
5.125% 8/15/18 | 2,260,000 | 2,375,825 | ||
5.125% 8/1/21 (d) | 620,000 | 632,400 | ||
6.875% 2/1/22 (d) | 1,245,000 | 1,290,131 | ||
8% 11/15/19 | 3,950,000 | 4,320,313 | ||
DJO Finance LLC/DJO Finance Corp.: | ||||
7.75% 4/15/18 | 950,000 | 997,500 | ||
8.75% 3/15/18 | 110,000 | 119,350 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Healthcare - continued | ||||
DJO Finance LLC/DJO Finance Corp.: - continued | ||||
9.875% 4/15/18 | $ 1,555,000 | $ 1,694,950 | ||
Emergency Medical Services Corp. 8.125% 6/1/19 | 2,673,000 | 2,840,063 | ||
Fresenius Medical Care U.S. Finance II, Inc. 5.625% 7/31/19 (d) | 1,625,000 | 1,767,188 | ||
Grifols Worldwide Operations Ltd. 5.25% 4/1/22 (d) | 1,235,000 | 1,253,525 | ||
HCA Holdings, Inc.: | ||||
3.75% 3/15/19 | 2,095,000 | 2,110,713 | ||
5% 3/15/24 | 1,295,000 | 1,285,288 | ||
HealthSouth Corp. 7.25% 10/1/18 | 2,479,000 | 2,615,345 | ||
MPH Acquisition Holdings LLC 6.625% 4/1/22 (d) | 435,000 | 450,225 | ||
MPT Operating Partnership LP/MPT Finance Corp. 6.875% 5/1/21 | 1,780,000 | 1,935,750 | ||
Sabra Health Care LP/Sabra Capital Corp. 5.5% 2/1/21 | 2,530,000 | 2,650,175 | ||
Tenet Healthcare Corp.: | ||||
5% 3/1/19 (d) | 765,000 | 766,913 | ||
6% 10/1/20 (d) | 6,250,000 | 6,562,500 | ||
8.125% 4/1/22 | 5,670,000 | 6,293,700 | ||
Valeant Pharmaceuticals International: | ||||
6.75% 8/15/18 (d) | 2,800,000 | 3,031,000 | ||
6.875% 12/1/18 (d) | 3,015,000 | 3,180,825 | ||
| 48,173,679 | |||
Homebuilders/Real Estate - 3.9% | ||||
CBRE Group, Inc. 6.625% 10/15/20 | 670,000 | 711,875 | ||
D.R. Horton, Inc.: | ||||
3.625% 2/15/18 | 2,335,000 | 2,370,025 | ||
3.75% 3/1/19 | 1,390,000 | 1,386,525 | ||
4.375% 9/15/22 | 3,175,000 | 3,131,344 | ||
4.75% 5/15/17 | 605,000 | 640,544 | ||
Howard Hughes Corp. 6.875% 10/1/21 (d) | 1,725,000 | 1,854,375 | ||
KB Home 4.75% 5/15/19 | 1,745,000 | 1,740,638 | ||
Lennar Corp.: | ||||
4.125% 12/1/18 | 2,335,000 | 2,358,350 | ||
4.5% 6/15/19 | 1,815,000 | 1,835,419 | ||
Realogy Group LLC / Realogy Co.-Issuer Corp. 4.5% 4/15/19 (d) | 1,070,000 | 1,075,350 | ||
Standard Pacific Corp.: | ||||
8.375% 5/15/18 | 8,550,000 | 10,089,000 | ||
10.75% 9/15/16 | 1,650,000 | 1,971,750 | ||
Toll Brothers Finance Corp.: | ||||
4% 12/31/18 | 1,930,000 | 1,971,013 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Homebuilders/Real Estate - continued | ||||
Toll Brothers Finance Corp.: - continued | ||||
4.375% 4/15/23 | $ 2,600,000 | $ 2,522,000 | ||
William Lyon Homes, Inc. 5.75% 4/15/19 (d) | 350,000 | 357,000 | ||
| 34,015,208 | |||
Hotels - 0.3% | ||||
Playa Resorts Holding BV 8% 8/15/20 (d) | 2,379,000 | 2,569,320 | ||
Leisure - 1.2% | ||||
NCL Corp. Ltd. 5% 2/15/18 | 3,650,000 | 3,768,625 | ||
Royal Caribbean Cruises Ltd.: | ||||
5.25% 11/15/22 | 4,025,000 | 4,105,500 | ||
7.5% 10/15/27 | 1,925,000 | 2,165,625 | ||
| 10,039,750 | |||
Metals/Mining - 1.5% | ||||
CONSOL Energy, Inc.: | ||||
5.875% 4/15/22 (d) | 2,140,000 | 2,204,200 | ||
8.25% 4/1/20 | 1,765,000 | 1,921,644 | ||
Imperial Metals Corp. 7% 3/15/19 (d) | 175,000 | 178,368 | ||
New Gold, Inc. 6.25% 11/15/22 (d) | 3,665,000 | 3,756,625 | ||
Rain CII Carbon LLC/CII Carbon Corp. 8.25% 1/15/21 (d) | 1,825,000 | 1,898,000 | ||
Signode Industrial Group Lux SA/Signode Industrial Group U.S., Inc. 6.375% 5/1/22 (d)(f) | 1,555,000 | 1,570,550 | ||
Walter Energy, Inc. 8.5% 4/15/21 | 2,380,000 | 1,416,100 | ||
| 12,945,487 | |||
Paper - 0.2% | ||||
Sappi Papier Holding GmbH 7.75% 7/15/17 (d) | 1,630,000 | 1,815,413 | ||
Publishing/Printing - 0.9% | ||||
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance 10% 4/1/21 (d) | 4,890,000 | 5,599,050 | ||
R.R. Donnelley & Sons Co. 7% 2/15/22 | 700,000 | 770,000 | ||
Time, Inc. 5.75% 4/15/22 (d) | 1,820,000 | 1,815,450 | ||
| 8,184,500 | |||
Restaurants - 0.3% | ||||
NPC International, Inc./NPC Operating Co. A, Inc./NPC Operating Co. B, Inc. 10.5% 1/15/20 | 2,685,000 | 3,067,613 | ||
Services - 3.7% | ||||
APX Group, Inc.: | ||||
6.375% 12/1/19 | 4,700,000 | 4,782,250 | ||
8.75% 12/1/20 | 4,505,000 | 4,595,100 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Services - continued | ||||
Audatex North America, Inc. 6% 6/15/21 (d) | $ 2,760,000 | $ 2,960,100 | ||
Bankrate, Inc. 6.125% 8/15/18 (d) | 1,595,000 | 1,694,688 | ||
Blueline Rent Finance Corp./Volvo 7% 2/1/19 (d) | 1,305,000 | 1,396,350 | ||
Brand Energy & Infrastructure Services, Inc. 8.5% 12/1/21 (d) | 2,650,000 | 2,809,000 | ||
FTI Consulting, Inc. 6.75% 10/1/20 | 2,560,000 | 2,755,200 | ||
Garda World Security Corp.: | ||||
7.25% 11/15/21 (d) | 150,000 | 158,063 | ||
7.25% 11/15/21 (d) | 390,000 | 410,963 | ||
Hertz Corp.: | ||||
4.25% 4/1/18 | 2,005,000 | 2,070,163 | ||
6.25% 10/15/22 | 2,050,000 | 2,193,500 | ||
The Geo Group, Inc. 5.875% 1/15/22 | 2,720,000 | 2,801,600 | ||
TransUnion Holding Co., Inc. 8.125% 6/15/18 pay-in-kind (g) | 2,975,000 | 3,108,875 | ||
| 31,735,852 | |||
Shipping - 1.8% | ||||
Aguila 3 SA 7.875% 1/31/18 (d) | 4,355,000 | 4,610,856 | ||
CEVA Group PLC: | ||||
4% 5/1/18 (d) | 1,770,000 | 1,654,950 | ||
7% 3/1/21 (d) | 270,000 | 277,088 | ||
9% 9/1/21 (d) | 410,000 | 421,275 | ||
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc. 8.125% 11/15/21 (d) | 2,290,000 | 2,387,325 | ||
Navios Maritime Holdings, Inc.: | ||||
7.375% 1/15/22 (d) | 4,270,000 | 4,312,700 | ||
8.125% 2/15/19 | 930,000 | 943,950 | ||
Navios South American Logistics, Inc./Navios Logistics Finance U.S., Inc. 7.25% 5/1/22 (d) | 860,000 | 862,350 | ||
| 15,470,494 | |||
Steel - 1.1% | ||||
JMC Steel Group, Inc. 8.25% 3/15/18 (d) | 4,360,000 | 4,403,600 | ||
Ryerson, Inc./Joseph T Ryerson & Son, Inc.: | ||||
9% 10/15/17 | 900,000 | 966,375 | ||
11.25% 10/15/18 | 2,085,000 | 2,340,413 | ||
Steel Dynamics, Inc. 6.125% 8/15/19 | 1,780,000 | 1,944,650 | ||
| 9,655,038 | |||
Super Retail - 0.2% | ||||
Best Buy Co., Inc. 5% 8/1/18 | 2,120,000 | 2,196,956 | ||
Technology - 6.3% | ||||
Activision Blizzard, Inc. 5.625% 9/15/21 (d) | 1,390,000 | 1,482,088 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Technology - continued | ||||
ADT Corp.: | ||||
2.25% 7/15/17 | $ 720,000 | $ 712,800 | ||
4.125% 4/15/19 | 2,085,000 | 2,052,683 | ||
4.125% 6/15/23 | 715,000 | 643,500 | ||
6.25% 10/15/21 (d) | 2,110,000 | 2,199,675 | ||
Advanced Micro Devices, Inc. 6.75% 3/1/19 (d) | 1,860,000 | 1,929,750 | ||
BMC Software Finance, Inc. 8.125% 7/15/21 (d) | 3,760,000 | 3,938,600 | ||
Boxer Parent Co., Inc. 9% 10/15/19 pay-in-kind (d)(g) | 1,370,000 | 1,342,600 | ||
Brocade Communications Systems, Inc. 4.625% 1/15/23 | 2,210,000 | 2,116,075 | ||
First Data Corp.: | ||||
6.75% 11/1/20 (d) | 3,640,000 | 3,885,700 | ||
7.375% 6/15/19 (d) | 985,000 | 1,056,413 | ||
8.25% 1/15/21 (d) | 1,140,000 | 1,228,350 | ||
Infor Software Parent LLC/Infor Software Parent, Inc. 7.125% 5/1/21 pay-in-kind (d)(g) | 400,000 | 402,000 | ||
Lucent Technologies, Inc.: | ||||
6.45% 3/15/29 | 4,815,000 | 4,610,363 | ||
6.5% 1/15/28 | 2,050,000 | 1,968,000 | ||
Micron Technology, Inc. 5.875% 2/15/22 (d) | 655,000 | 691,025 | ||
Nuance Communications, Inc. 5.375% 8/15/20 (d) | 5,475,000 | 5,516,063 | ||
NXP BV/NXP Funding LLC 3.75% 6/1/18 (d) | 3,870,000 | 3,865,163 | ||
Sanmina-SCI Corp. 7% 5/15/19 (d) | 3,790,000 | 3,998,450 | ||
Sungard Availability Services Capital, Inc. 8.75% 4/1/22 (d) | 2,600,000 | 2,509,000 | ||
VeriSign, Inc. 4.625% 5/1/23 | 2,085,000 | 1,996,388 | ||
Viasystems, Inc. 7.875% 5/1/19 (d) | 2,810,000 | 2,992,650 | ||
WideOpenWest Finance LLC/WideOpenWest Capital Corp.: | ||||
10.25% 7/15/19 | 1,995,000 | 2,254,350 | ||
10.25% 7/15/19 (d) | 175,000 | 197,750 | ||
13.375% 10/15/19 | 1,070,000 | 1,257,250 | ||
| 54,846,686 | |||
Telecommunications - 7.7% | ||||
Alcatel-Lucent U.S.A., Inc.: | ||||
4.625% 7/1/17 (d) | 630,000 | 644,963 | ||
6.75% 11/15/20 (d) | 2,115,000 | 2,220,750 | ||
8.875% 1/1/20 (d) | 2,035,000 | 2,289,375 | ||
Altice Financing SA: | ||||
6.5% 1/15/22 (d) | 390,000 | 408,525 | ||
7.875% 12/15/19 (d) | 2,600,000 | 2,839,252 | ||
Altice Finco SA 9.875% 12/15/20 (d) | 6,195,000 | 7,102,568 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
Telecommunications - continued | ||||
Columbus International, Inc. 7.375% 3/30/21 (d) | $ 2,620,000 | $ 2,737,900 | ||
Crown Castle International Corp. 4.875% 4/15/22 | 2,595,000 | 2,633,925 | ||
Digicel Group Ltd.: | ||||
6% 4/15/21 (d) | 3,365,000 | 3,407,063 | ||
7% 2/15/20 (d) | 200,000 | 208,250 | ||
7.125% 4/1/22 (d) | 1,835,000 | 1,844,175 | ||
8.25% 9/1/17 (d) | 3,535,000 | 3,667,739 | ||
8.25% 9/30/20 (d) | 3,200,000 | 3,408,000 | ||
DigitalGlobe, Inc. 5.25% 2/1/21 | 5,920,000 | 5,772,000 | ||
FairPoint Communications, Inc. 8.75% 8/15/19 (d) | 2,410,000 | 2,608,825 | ||
Intelsat Jackson Holdings SA 7.25% 4/1/19 | 2,505,000 | 2,683,481 | ||
Level 3 Financing, Inc. 3.8459% 1/15/18 (d)(g) | 3,130,000 | 3,176,950 | ||
MasTec, Inc. 4.875% 3/15/23 | 1,680,000 | 1,621,200 | ||
Sprint Capital Corp.: | ||||
6.875% 11/15/28 | 730,000 | 720,875 | ||
8.75% 3/15/32 | 2,110,000 | 2,360,563 | ||
T-Mobile U.S.A., Inc.: | ||||
5.25% 9/1/18 | 3,040,000 | 3,203,400 | ||
6.464% 4/28/19 | 3,610,000 | 3,826,600 | ||
TW Telecom Holdings, Inc.: | ||||
5.375% 10/1/22 | 1,815,000 | 1,842,225 | ||
6.375% 9/1/23 | 845,000 | 899,925 | ||
Wind Acquisition Finance SA: | ||||
7.25% 2/15/18 (d) | 2,126,000 | 2,237,615 | ||
7.375% 4/23/21 (d) | 2,230,000 | 2,296,900 | ||
| 66,663,044 | |||
Textiles & Apparel - 0.3% | ||||
The William Carter Co. 5.25% 8/15/21 (d) | 2,220,000 | 2,297,700 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $722,874,904) |
|
Common Stocks - 0.0% | |||
Shares |
| ||
Telecommunications - 0.0% | |||
CUI Acquisition Corp. Class E (a)(d) | 1 |
|
Bank Loan Obligations - 10.0% | ||||
| Principal Amount | Value | ||
Automotive - 0.2% | ||||
Allison Transmission, Inc. Tranche B 3LN, term loan 3.75% 8/23/19 (g) | $ 533,663 | $ 533,663 | ||
Chrysler Group LLC: | ||||
term loan 3.25% 12/31/18 (g) | 1,085,000 | 1,074,150 | ||
Tranche B, term loan 3.5% 5/24/17 (g) | 359,077 | 358,628 | ||
| 1,966,441 | |||
Broadcasting - 0.9% | ||||
Clear Channel Communications, Inc. Tranche D, term loan 6.9003% 1/30/19 (g) | 5,025,000 | 4,981,031 | ||
Nielsen Finance LLC: | ||||
Tranche B 1LN, term loan 2.402% 5/30/17 (g) | 1,410,000 | 1,410,000 | ||
Tranche B 2LN, term loan 3.152% 4/15/21 (g) | 870,000 | 870,000 | ||
Univision Communications, Inc. Tranche C 4LN, term loan 4% 3/1/20 (g) | 543,638 | 540,240 | ||
| 7,801,271 | |||
Building Materials - 0.5% | ||||
GYP Holdings III Corp.: | ||||
Tranche 1LN, term loan 4.75% 4/1/21 (g) | 1,710,000 | 1,682,213 | ||
Tranche 2LN, term loan 7.75% 4/1/22 (g) | 340,000 | 341,700 | ||
HD Supply, Inc. Tranche B 1LN, term loan 4% 6/28/18 (g) | 1,122,145 | 1,120,798 | ||
Nortek, Inc. Tranche B, term loan 10/30/20 (h) | 1,150,000 | 1,147,125 | ||
| 4,291,836 | |||
Cable TV - 0.1% | ||||
Numericable LLC: | ||||
Tranche B 1LN, term loan 4/23/20 (h) | 731,850 | 730,935 | ||
Tranche B 2LN, term loan 4/23/20 (h) | 633,150 | 632,359 | ||
| 1,363,294 | |||
Containers - 0.6% | ||||
Ardagh Holdings U.S.A., Inc. Tranche B, term loan: | ||||
4% 12/17/19 (g) | 290,000 | 288,550 | ||
4.25% 12/17/19 (g) | 94,763 | 94,289 | ||
Berry Plastics Corp. Tranche E, term loan 3.75% 1/6/21 (g) | 880,000 | 873,400 | ||
Reynolds Consumer Products Holdings, Inc. Tranche B, term loan 4% 12/1/18 (g) | 518,700 | 518,700 | ||
Signode Packaging Systems, Inc. Tranche B, term loan 4/8/21 (h) | 3,485,000 | 3,476,288 | ||
| 5,251,227 | |||
Bank Loan Obligations - continued | ||||
| Principal Amount | Value | ||
Diversified Financial Services - 0.6% | ||||
Delos Finance SARL Tranche B LN, term loan 3.5% 3/6/21 (g) | $ 1,320,000 | $ 1,320,000 | ||
Moxie Patriot LLC Tranche B, term loan 6.75% 12/19/20 (g) | 2,025,000 | 2,073,094 | ||
TransUnion LLC Tranche B, term loan 4% 4/9/21 (g) | 2,270,000 | 2,258,650 | ||
| 5,651,744 | |||
Electric Utilities - 0.1% | ||||
Southwire LLC, Tranche B, term loan 3.25% 2/10/21 (g) | 730,000 | 729,124 | ||
Energy - 0.9% | ||||
Energy Transfer Equity LP Tranche B, term loan 3.25% 12/2/19 (g) | 2,100,000 | 2,076,375 | ||
Fieldwood Energy, LLC: | ||||
Tranche 2LN, term loan 8.375% 9/30/20 (g) | 3,445,000 | 3,548,350 | ||
Tranche B 1LN, term loan 3.875% 9/30/18 (g) | 343,587 | 342,728 | ||
Samson Investment Co. Tranche B 2LN, term loan 5% 9/25/18 (g) | 205,000 | 203,975 | ||
Seadrill Operating LP Tranche B, term loan 4% 2/21/21 (g) | 2,079,788 | 2,056,390 | ||
Western Refining, Inc. Tranche B, term loan 4.25% 11/12/20 (g) | 144,638 | 144,999 | ||
| 8,372,817 | |||
Food/Beverage/Tobacco - 0.1% | ||||
Del Monte Foods Consumer Products: | ||||
Tranche 2LN, term loan 8.25% 8/18/21 (g) | 260,000 | 256,750 | ||
Tranche B 1LN, term loan 4.2531% 2/18/21 (g) | 518,700 | 516,755 | ||
| 773,505 | |||
Gaming - 0.1% | ||||
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 4/10/21 (h) | 330,000 | 329,175 | ||
Golden Nugget, Inc. Tranche B, term loan: | ||||
5.5% 11/21/19 (g) | 199,001 | 203,230 | ||
5.5% 11/21/19 (g) | 85,286 | 87,099 | ||
Las Vegas Sands LLC Tranche B, term loan 3.25% 12/19/20 (g) | 568,575 | 565,021 | ||
| 1,184,525 | |||
Healthcare - 0.9% | ||||
Community Health Systems, Inc. Tranche D, term loan 4.25% 1/27/21 (g) | 598,500 | 599,996 | ||
Endo Luxembourg Finance I Comp Tranche B, term loan 3.25% 2/28/21 (g) | 2,110,000 | 2,107,363 | ||
Grifols, S.A. Tranche B, term loan 3.1503% 2/27/21 (g) | 3,470,000 | 3,461,325 | ||
Bank Loan Obligations - continued | ||||
| Principal Amount | Value | ||
Healthcare - continued | ||||
MPH Acquisition Holdings LLC Tranche B, term loan 4% 3/31/21 (g) | $ 1,164,318 | $ 1,158,497 | ||
Pharmedium Healthcare Corp.: | ||||
Tranche 2LN, term loan 7.75% 1/28/22 (g) | 120,000 | 120,600 | ||
Tranche B 1LN, term loan 4.25% 1/28/21 (g) | 205,000 | 202,950 | ||
| 7,650,731 | |||
Hotels - 0.1% | ||||
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (g) | 645,000 | 641,775 | ||
Insurance - 0.4% | ||||
StoneRiver Group LP: | ||||
Tranche 2LN, term loan 8.5% 5/30/20 (g) | 2,410,393 | 2,416,419 | ||
Tranche B 1LN, term loan 4.5% 11/30/19 (g) | 867,541 | 863,203 | ||
| 3,279,622 | |||
Leisure - 0.1% | ||||
Equinox Holdings, Inc. Tranche B 1LN, term loan 4.25% 2/1/20 (g) | 638,313 | 635,122 | ||
Metals/Mining - 0.4% | ||||
Fortescue Metals Group Ltd. Tranche B, term loan 4.25% 6/30/19 (g) | 1,397,975 | 1,389,238 | ||
Peabody Energy Corp. Tranche B, term loan 4.25% 9/24/20 (g) | 1,830,800 | 1,830,800 | ||
| 3,220,038 | |||
Publishing/Printing - 0.5% | ||||
ARC Document Solutions, Inc. Tranche B, term loan 6.25% 12/20/18 (g) | 3,987,750 | 4,037,597 | ||
Restaurants - 0.6% | ||||
Dunkin Brands, Inc. Tranche B 4LN, term loan 3.25% 2/7/21 (g) | 5,050,000 | 5,005,813 | ||
Services - 0.8% | ||||
ARAMARK Corp. Tranche F, term loan 3.25% 2/24/21 (g) | 415,000 | 409,813 | ||
Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 4.75% 11/26/20 (g) | 2,577,095 | 2,577,095 | ||
Garda World Security Corp.: | ||||
term loan 4% 11/8/20 (g) | 2,288,755 | 2,283,033 | ||
Tranche DD, term loan 4% 11/8/20 (g) | 585,495 | 584,032 | ||
Bank Loan Obligations - continued | ||||
| Principal Amount | Value | ||
Services - continued | ||||
Lineage Logistics Holdings, LLC. Tranche B, term loan 4.5% 4/7/21 (g) | $ 895,000 | $ 881,575 | ||
Orbitz Worldwide, Inc. Tranche C, term loan 4.5% 4/15/21 (g) | 435,000 | 435,544 | ||
| 7,171,092 | |||
Shipping - 0.1% | ||||
YRC Worldwide, Inc. Tranche B, term loan 8% 2/13/19 (g) | 678,300 | 683,387 | ||
Steel - 0.2% | ||||
Atkore International, Inc.: | ||||
Tranche 2LN, term loan 7.75% 10/9/21 (g) | 560,000 | 562,800 | ||
Tranche B 1LN, term loan 4.5% 4/9/21 (g) | 1,005,000 | 1,003,744 | ||
| 1,566,544 | |||
Technology - 1.4% | ||||
Avago Technologies, Inc. Tranche B, term loan 4/16/21 (h) | 1,980,000 | 1,989,900 | ||
DealerTrack Holdings, Inc. Tranche B LN, term loan 3.5% 2/28/21 (g) | 2,085,000 | 2,074,575 | ||
First Data Corp. term loan 4.1523% 3/24/18 (g) | 1,110,000 | 1,104,450 | ||
Freescale Semiconductor, Inc. Tranche B 4LN, term loan 4.25% 3/1/20 (g) | 1,725,675 | 1,723,518 | ||
Infor U.S., Inc. Tranche B 5LN, term loan 3.75% 6/3/20 (g) | 483,788 | 480,788 | ||
NXP BV Tranche D, term loan 3.75% 1/11/20 (g) | 2,079,550 | 2,063,953 | ||
Sungard Availability Services Capital, Inc. Tranche B, term loan 6% 3/31/19 (g) | 2,565,000 | 2,561,794 | ||
| 11,998,978 | |||
Telecommunications - 0.4% | ||||
Alcatel-Lucent U.S.A., Inc. Tranche C 1LN, term loan 4.5% 1/30/19 (g) | 3,621,662 | 3,617,135 | ||
TOTAL BANK LOAN OBLIGATIONS (Cost $86,514,431) |
|
Preferred Securities - 0.7% | |||
|
|
|
|
Banks & Thrifts - 0.7% | |||
Barclays Bank PLC 7.625% 11/21/22 | 4,405,000 | 5,151,812 | |
Barclays PLC 8.25% (e)(g) | 910,000 | 978,670 | |
TOTAL PREFERRED SECURITIES (Cost $5,371,020) |
| ||
Money Market Funds - 3.9% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 33,915,039 | $ 33,915,039 | |
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $849,539,652) | 878,635,666 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (9,948,888) | ||
NET ASSETS - 100% | $ 868,686,778 |
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. |
(c) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(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 $356,108,410 or 41.0% of net assets. |
(e) Security is perpetual in nature with no stated maturity date. |
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) The coupon rate will be determined upon settlement of the loan after period end. |
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 | $ 11,946 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Telecommunication Services | $ 92,272 | $ - | $ - | $ 92,272 |
Corporate Bonds | 751,604,255 | - | 751,604,255 | - |
Bank Loan Obligations | 86,893,618 | - | 86,893,618 | - |
Preferred Securities | 6,130,482 | - | 6,130,482 | - |
Money Market Funds | 33,915,039 | 33,915,039 | - | - |
Total Investments in Securities: | $ 878,635,666 | $ 33,915,039 | $ 844,628,355 | $ 92,272 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 77.2% |
Luxembourg | 5.7% |
Canada | 3.0% |
Bermuda | 2.7% |
Netherlands | 2.0% |
Cayman Islands | 1.4% |
Austria | 1.3% |
Marshall Islands | 1.2% |
United Kingdom | 1.2% |
Others (Individually Less Than 1%) | 4.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $815,624,613) | $ 844,720,627 |
|
Fidelity Central Funds (cost $33,915,039) | 33,915,039 |
|
Total Investments (cost $849,539,652) |
| $ 878,635,666 |
Cash |
| 2,847,823 |
Receivable for investments sold | 6,010,553 | |
Receivable for fund shares sold | 516,522 | |
Interest receivable | 12,576,637 | |
Distributions receivable from Fidelity Central Funds | 2,603 | |
Prepaid expenses | 592 | |
Receivable from investment adviser for expense reductions | 10,268 | |
Total assets | 900,600,664 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 22,021,850 | |
Delayed delivery | 6,908,119 | |
Payable for fund shares redeemed | 1,541,217 | |
Distributions payable | 643,270 | |
Accrued management fee | 405,026 | |
Distribution and service plan fees payable | 187,341 | |
Other affiliated payables | 170,637 | |
Other payables and accrued expenses | 36,426 | |
Total liabilities | 31,913,886 | |
|
|
|
Net Assets | $ 868,686,778 | |
Net Assets consist of: |
| |
Paid in capital | $ 828,078,784 | |
Undistributed net investment income | 11,761,583 | |
Accumulated undistributed net realized gain (loss) on investments | (249,603) | |
Net unrealized appreciation (depreciation) on investments | 29,096,014 | |
Net Assets | $ 868,686,778 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 8.49 | |
|
|
|
Maximum offering price per share (100/96.00 of $8.49) | $ 8.84 | |
Class T: | $ 8.47 | |
|
|
|
Maximum offering price per share (100/96.00 of $8.47) | $ 8.82 | |
Class B: | $ 8.46 | |
|
|
|
Class C: | $ 8.47 | |
|
|
|
Institutional Class: | $ 8.50 |
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.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 112,625 |
Interest |
| 26,243,544 |
Income from Fidelity Central Funds |
| 11,946 |
Total income |
| 26,368,115 |
|
|
|
Expenses | ||
Management fee | $ 2,403,952 | |
Transfer agent fees | 866,895 | |
Distribution and service plan fees | 1,124,696 | |
Accounting fees and expenses | 157,368 | |
Custodian fees and expenses | 9,332 | |
Independent trustees' compensation | 1,687 | |
Registration fees | 42,379 | |
Audit | 34,777 | |
Legal | 3,361 | |
Miscellaneous | 3,436 | |
Total expenses before reductions | 4,647,883 | |
Expense reductions | (51,644) | 4,596,239 |
Net investment income (loss) | 21,771,876 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 10,582,961 |
Change in net unrealized appreciation (depreciation) on investment securities | (327,577) | |
Net gain (loss) | 10,255,384 | |
Net increase (decrease) in net assets resulting from operations | $ 32,027,260 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 21,771,876 | $ 50,536,768 |
Net realized gain (loss) | 10,582,961 | 36,587,680 |
Change in net unrealized appreciation (depreciation) | (327,577) | (24,249,415) |
Net increase (decrease) in net assets resulting | 32,027,260 | 62,875,033 |
Distributions to shareholders from net investment income | (21,668,494) | (48,912,015) |
Distributions to shareholders from net realized gain | (37,717,722) | (10,710,125) |
Total distributions | (59,386,216) | (59,622,140) |
Share transactions - net increase (decrease) | 25,986,628 | (160,938,070) |
Redemption fees | 22,658 | 74,188 |
Total increase (decrease) in net assets | (1,349,670) | (157,610,989) |
|
|
|
Net Assets | ||
Beginning of period | 870,036,448 | 1,027,647,437 |
End of period (including undistributed net investment income of $11,761,583 and undistributed net investment income of $11,658,201, respectively) | $ 868,686,778 | $ 870,036,448 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.77 | $ 8.73 | $ 8.38 | $ 8.59 | $ 7.87 | $ 6.48 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .218 | .473 | .539 | .581 | .637 | .625 |
Net realized and unrealized gain (loss) | .105 | .117 | .411 | (.204) | .673 | 1.318 |
Total from investment operations | .323 | .590 | .950 | .377 | 1.310 | 1.943 |
Distributions from net investment income | (.217) | (.457) | (.551) | (.589) | (.591) | (.556) |
Distributions from net realized gain | (.386) | (.094) | (.050) | - | - | - |
Total distributions | (.603) | (.551) | (.601) | (.589) | (.591) | (.556) |
Redemption fees added to paid in capital E | - H | .001 | .001 | .002 | .001 | .003 |
Net asset value, end of period | $ 8.49 | $ 8.77 | $ 8.73 | $ 8.38 | $ 8.59 | $ 7.87 |
Total Return B, C, D | 3.89% | 6.99% | 11.84% | 4.53% | 17.33% | 31.69% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.04% A | 1.03% | 1.03% | 1.04% | 1.06% | 1.09% |
Expenses net of fee waivers, if any | 1.04% A | 1.03% | 1.03% | 1.04% | 1.06% | 1.09% |
Expenses net of all reductions | 1.04% A | 1.03% | 1.03% | 1.04% | 1.06% | 1.08% |
Net investment income (loss) | 5.18% A | 5.40% | 6.35% | 6.82% | 7.81% | 8.91% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 272,573 | $ 280,769 | $ 331,436 | $ 264,110 | $ 278,577 | $ 282,936 |
Portfolio turnover rate G | 84% A | 76% | 48% | 75% | 79% | 54% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HAmount represents less than $.001 per share. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.76 | $ 8.72 | $ 8.37 | $ 8.57 | $ 7.86 | $ 6.48 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .217 | .469 | .536 | .578 | .633 | .622 |
Net realized and unrealized gain (loss) | .095 | .119 | .411 | (.193) | .665 | 1.310 |
Total from investment operations | .312 | .588 | .947 | .385 | 1.298 | 1.932 |
Distributions from net investment income | (.216) | (.455) | (.548) | (.587) | (.589) | (.555) |
Distributions from net realized gain | (.386) | (.094) | (.050) | - | - | - |
Total distributions | (.602) | (.549) | (.598) | (.587) | (.589) | (.555) |
Redemption fees added to paid in capital E | - I | .001 | .001 | .002 | .001 | .003 |
Net asset value, end of period | $ 8.47 | $ 8.76 | $ 8.72 | $ 8.37 | $ 8.57 | $ 7.86 |
Total Return B, C, D | 3.76% | 6.97% | 11.83% | 4.63% | 17.17% | 31.52% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.06% A | 1.05% | 1.06% | 1.07% | 1.11% | 1.16% |
Expenses net of fee waivers, if any | 1.06% A | 1.05% | 1.06% | 1.07% | 1.10% | 1.10% |
Expenses net of all reductions | 1.06% A | 1.05% | 1.06% | 1.07% | 1.10% | 1.10% |
Net investment income (loss) | 5.15% A | 5.38% | 6.32% | 6.79% | 7.78% | 8.89% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 90,607 | $ 90,901 | $ 105,518 | $ 92,746 | $ 119,576 | $ 111,601 |
Portfolio turnover rate G | 84% A | 76% | 48% | 75% | 79% | 54% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.001 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.75 | $ 8.71 | $ 8.36 | $ 8.57 | $ 7.85 | $ 6.47 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .188 | .408 | .477 | .521 | .579 | .571 |
Net realized and unrealized gain (loss) | .095 | .119 | .412 | (.204) | .676 | 1.317 |
Total from investment operations | .283 | .527 | .889 | .317 | 1.255 | 1.888 |
Distributions from net investment income | (.187) | (.394) | (.490) | (.529) | (.536) | (.511) |
Distributions from net realized gain | (.386) | (.094) | (.050) | - | - | - |
Total distributions | (.573) | (.488) | (.540) | (.529) | (.536) | (.511) |
Redemption fees added to paid in capital E | - I | .001 | .001 | .002 | .001 | .003 |
Net asset value, end of period | $ 8.46 | $ 8.75 | $ 8.71 | $ 8.36 | $ 8.57 | $ 7.85 |
Total Return B, C, D | 3.41% | 6.24% | 11.08% | 3.81% | 16.58% | 30.73% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.75% A | 1.75% | 1.76% | 1.77% | 1.80% | 1.81% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.75% A | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
Net investment income (loss) | 4.46% A | 4.68% | 5.64% | 6.11% | 7.13% | 8.25% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 11,220 | $ 13,176 | $ 17,309 | $ 19,647 | $ 29,065 | $ 32,894 |
Portfolio turnover rate G | 84% A | 76% | 48% | 75% | 79% | 54% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.001 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.75 | $ 8.71 | $ 8.36 | $ 8.57 | $ 7.85 | $ 6.47 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .185 | .405 | .474 | .516 | .575 | .572 |
Net realized and unrealized gain (loss) | .106 | .119 | .412 | (.202) | .675 | 1.309 |
Total from investment operations | .291 | .524 | .886 | .314 | 1.250 | 1.881 |
Distributions from net investment income | (.185) | (.391) | (.487) | (.526) | (.531) | (.504) |
Distributions from net realized gain | (.386) | (.094) | (.050) | - | - | - |
Total distributions | (.571) | (.485) | (.537) | (.526) | (.531) | (.504) |
Redemption fees added to paid in capital E | - I | .001 | .001 | .002 | .001 | .003 |
Net asset value, end of period | $ 8.47 | $ 8.75 | $ 8.71 | $ 8.36 | $ 8.57 | $ 7.85 |
Total Return B, C, D | 3.50% | 6.20% | 11.03% | 3.77% | 16.51% | 30.60% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.81% A | 1.79% | 1.79% | 1.79% | 1.81% | 1.85% |
Expenses net of fee waivers, if any | 1.81% A | 1.79% | 1.79% | 1.79% | 1.81% | 1.85% |
Expenses net of all reductions | 1.81% A | 1.79% | 1.79% | 1.79% | 1.81% | 1.85% |
Net investment income (loss) | 4.40% A | 4.64% | 5.60% | 6.08% | 7.07% | 8.15% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 123,999 | $ 126,952 | $ 149,591 | $ 120,710 | $ 121,796 | $ 98,361 |
Portfolio turnover rate G | 84% A | 76% | 48% | 75% | 79% | 54% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.001 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.79 | $ 8.75 | $ 8.40 | $ 8.60 | $ 7.88 | $ 6.49 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .226 | .489 | .556 | .598 | .655 | .637 |
Net realized and unrealized gain (loss) | .095 | .116 | .409 | (.195) | .673 | 1.323 |
Total from investment operations | .321 | .605 | .965 | .403 | 1.328 | 1.960 |
Distributions from net investment income | (.225) | (.472) | (.566) | (.605) | (.609) | (.573) |
Distributions from net realized gain | (.386) | (.094) | (.050) | - | - | - |
Total distributions | (.611) | (.566) | (.616) | (.605) | (.609) | (.573) |
Redemption fees added to paid in capital D | - H | .001 | .001 | .002 | .001 | .003 |
Net asset value, end of period | $ 8.50 | $ 8.79 | $ 8.75 | $ 8.40 | $ 8.60 | $ 7.88 |
Total Return B, C | 3.85% | 7.16% | 12.02% | 4.85% | 17.55% | 31.95% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .88% A | .87% | .88% | .88% | .89% | .90% |
Expenses net of fee waivers, if any | .85% A | .85% | .85% | .85% | .85% | .85% |
Expenses net of all reductions | .85% A | .85% | .85% | .85% | .85% | .85% |
Net investment income (loss) | 5.36% A | 5.58% | 6.54% | 7.01% | 8.03% | 9.15% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 370,288 | $ 358,238 | $ 423,792 | $ 311,790 | $ 329,601 | $ 251,945 |
Portfolio turnover rate F | 84% A | 76% | 48% | 75% | 79% | 54% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount represents less than $.001 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® High Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities, are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014 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 and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Class Allocations and Expenses - continued
and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends 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 dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 34,029,045 |
Gross unrealized depreciation | (4,025,334) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 30,003,711 |
|
|
Tax cost | $ 848,631,955 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $346,879,817 and $348,595,922, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 337,832 | $ 9,732 |
Class T | -% | .25% | 112,705 | 1,471 |
Class B | .65% | .25% | 54,770 | 39,771 |
Class C | .75% | .25% | 619,389 | 71,525 |
|
|
| $ 1,124,696 | $ 122,499 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14,788 |
Class T | 261 |
Class B* | 7,442 |
Class C* | 4,113 |
| $ 26,604 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 214,290 | .16 |
Class T | 81,268 | .18 |
Class B | 13,118 | .22 |
Class C | 106,720 | .17 |
Institutional Class | 451,499 | .25 |
| $ 866,895 |
|
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $795 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class B | 1.75% | $ 56 |
Institutional Class | .85% | 51,311 |
|
| $ 51,367 |
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $277.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 6,902,033 | $ 16,314,142 |
Class T | 2,297,438 | 5,161,023 |
Class B | 269,749 | 691,999 |
Class C | 2,701,722 | 6,288,608 |
Institutional Class | 9,497,552 | 20,456,243 |
Total | $ 21,668,494 | $ 48,912,015 |
From net realized gain |
|
|
Class A | $ 11,887,120 | $ 3,483,705 |
Class T | 3,964,314 | 1,140,878 |
Class B | 562,903 | 184,860 |
Class C | 5,549,372 | 1,602,754 |
Institutional Class | 15,754,013 | 4,297,928 |
Total | $ 37,717,722 | $ 10,710,125 |
Semiannual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 4,151,143 | 7,091,246 | $ 35,292,055 | $ 62,129,968 |
Reinvestment of distributions | 1,850,862 | 1,758,588 | 15,577,430 | 15,357,657 |
Shares redeemed | (5,899,900) | (14,804,694) | (50,433,084) | (129,032,339) |
Net increase (decrease) | 102,105 | (5,954,860) | $ 436,401 | $ (51,544,714) |
Class T |
|
|
|
|
Shares sold | 713,041 | 1,497,548 | $ 6,034,919 | $ 13,070,279 |
Reinvestment of distributions | 657,326 | 583,493 | 5,521,348 | 5,087,202 |
Shares redeemed | (1,056,909) | (3,805,963) | (8,976,036) | (33,189,003) |
Net increase (decrease) | 313,458 | (1,724,922) | $ 2,580,231 | $ (15,031,522) |
Class B |
|
|
|
|
Shares sold | 56,043 | 88,671 | $ 473,659 | $ 772,890 |
Reinvestment of distributions | 78,236 | 75,832 | 656,356 | 660,444 |
Shares redeemed | (314,767) | (645,956) | (2,667,805) | (5,631,561) |
Net increase (decrease) | (180,488) | (481,453) | $ (1,537,790) | $ (4,198,227) |
Class C |
|
|
|
|
Shares sold | 1,224,396 | 2,788,587 | $ 10,364,687 | $ 24,348,512 |
Reinvestment of distributions | 813,312 | 705,870 | 6,823,779 | 6,148,005 |
Shares redeemed | (1,899,225) | (6,159,803) | (16,087,647) | (53,679,905) |
Net increase (decrease) | 138,483 | (2,665,346) | $ 1,100,819 | $ (23,183,388) |
Institutional Class |
|
|
|
|
Shares sold | 6,743,209 | 7,283,471 | $ 57,690,993 | $ 63,781,595 |
Reinvestment of distributions | 2,652,624 | 2,604,592 | 22,374,657 | 22,781,805 |
Shares redeemed | (6,621,424) | (17,581,432) | (56,658,683) | (153,543,619) |
Net increase (decrease) | 2,774,409 | (7,693,369) | $ 23,406,967 | $ (66,980,219) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
AHI-USAN-0614 1.784884.111
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 second fiscal quarter of 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. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Advisor Series I
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | June 25, 2014 |
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/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | June 25, 2014 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | June 25, 2014 |