Quarterly Holdings Report
for
Fidelity Advisor® Stock Selector Mid Cap Fund
February 28, 2022
MC-NPRT1-0422
1.797928.118
Common Stocks - 98.1% | |||
Shares | Value ($) (000s) | ||
COMMUNICATION SERVICES - 1.6% | |||
Diversified Telecommunication Services - 0.1% | |||
Iridium Communications, Inc. (a) | 48,400 | 1,916 | |
Entertainment - 0.2% | |||
Cinemark Holdings, Inc. (a)(b) | 25,900 | 454 | |
Endeavor Group Holdings, Inc. (a) | 51,400 | 1,549 | |
Warner Music Group Corp. Class A | 38,900 | 1,409 | |
3,412 | |||
Interactive Media & Services - 0.2% | |||
NerdWallet, Inc. (b) | 175,300 | 2,007 | |
TripAdvisor, Inc. (a) | 43,200 | 1,099 | |
Ziff Davis, Inc. (a) | 18,900 | 1,901 | |
5,007 | |||
Media - 1.1% | |||
Cable One, Inc. | 4,600 | 6,591 | |
Discovery Communications, Inc. Class A (a) | 33,180 | 931 | |
Gray Television, Inc. | 57,400 | 1,345 | |
Interpublic Group of Companies, Inc. | 93,351 | 3,435 | |
Liberty Media Corp.: | |||
Liberty Formula One Group Series C (a) | 28,900 | 1,755 | |
Liberty SiriusXM Series A | 22,200 | 1,118 | |
Nexstar Broadcasting Group, Inc. Class A | 18,700 | 3,460 | |
S4 Capital PLC (a) | 109,000 | 680 | |
The New York Times Co. Class A | 98,000 | 4,311 | |
23,626 | |||
TOTAL COMMUNICATION SERVICES | 33,961 | ||
CONSUMER DISCRETIONARY - 13.7% | |||
Auto Components - 1.4% | |||
Adient PLC (a) | 261,000 | 11,680 | |
Lear Corp. | 104,453 | 16,435 | |
Novem Group SA | 184,100 | 2,179 | |
30,294 | |||
Automobiles - 0.8% | |||
Aston Martin Lagonda Global Holdings PLC (a)(c) | 125,400 | 1,701 | |
Harley-Davidson, Inc. (b) | 342,272 | 14,136 | |
15,837 | |||
Distributors - 0.5% | |||
LKQ Corp. | 206,598 | 9,700 | |
Diversified Consumer Services - 0.0% | |||
Cairo Mezz PLC (a) | 5,328,832 | 831 | |
Hotels, Restaurants & Leisure - 4.2% | |||
ARAMARK Holdings Corp. | 165,500 | 6,117 | |
Brinker International, Inc. (a) | 127,100 | 5,407 | |
Caesars Entertainment, Inc. (a) | 298,202 | 25,106 | |
Churchill Downs, Inc. | 102,547 | 24,700 | |
Domino's Pizza, Inc. | 15,200 | 6,570 | |
Vail Resorts, Inc. | 18,000 | 4,690 | |
Wyndham Hotels & Resorts, Inc. | 193,133 | 16,689 | |
89,279 | |||
Household Durables - 2.1% | |||
Leggett & Platt, Inc. | 196,240 | 7,277 | |
Mohawk Industries, Inc. (a) | 80,640 | 11,352 | |
NVR, Inc. (a) | 2,478 | 12,287 | |
Taylor Morrison Home Corp. (a) | 432,664 | 12,764 | |
43,680 | |||
Internet & Direct Marketing Retail - 0.1% | |||
Farfetch Ltd. Class A (a) | 118,400 | 2,256 | |
Multiline Retail - 0.6% | |||
Nordstrom, Inc. (a) | 294,134 | 6,100 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 149,300 | 6,447 | |
12,547 | |||
Specialty Retail - 1.1% | |||
Burlington Stores, Inc. (a) | 36,700 | 8,290 | |
Camping World Holdings, Inc. | 87,200 | 2,678 | |
Five Below, Inc. (a) | 70,800 | 11,584 | |
22,552 | |||
Textiles, Apparel & Luxury Goods - 2.9% | |||
Capri Holdings Ltd. (a) | 303,264 | 20,543 | |
Prada SpA | 965,200 | 6,021 | |
PVH Corp. | 149,054 | 14,591 | |
Tapestry, Inc. | 505,949 | 20,693 | |
61,848 | |||
TOTAL CONSUMER DISCRETIONARY | 288,824 | ||
CONSUMER STAPLES - 4.1% | |||
Beverages - 0.2% | |||
Boston Beer Co., Inc. Class A (a) | 11,500 | 4,410 | |
Molson Coors Beverage Co. Class B | 15,800 | 824 | |
5,234 | |||
Food & Staples Retailing - 1.4% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 161,700 | 10,166 | |
Casey's General Stores, Inc. | 12,700 | 2,389 | |
Grocery Outlet Holding Corp. (a)(b) | 133,684 | 3,718 | |
Performance Food Group Co. (a) | 105,600 | 5,918 | |
Sprouts Farmers Market LLC (a) | 61,900 | 1,763 | |
U.S. Foods Holding Corp. (a) | 144,900 | 5,664 | |
29,618 | |||
Food Products - 1.5% | |||
Bunge Ltd. | 22,900 | 2,394 | |
Darling Ingredients, Inc. (a) | 170,300 | 12,343 | |
Freshpet, Inc. (a) | 8,600 | 819 | |
Greencore Group PLC (a) | 424,900 | 755 | |
Ingredion, Inc. | 50,800 | 4,508 | |
Lamb Weston Holdings, Inc. | 22,200 | 1,475 | |
Nomad Foods Ltd. (a) | 113,800 | 2,865 | |
Post Holdings, Inc. (a) | 30,326 | 3,188 | |
Sovos Brands, Inc. | 77,700 | 943 | |
TreeHouse Foods, Inc. (a) | 43,900 | 1,723 | |
31,013 | |||
Household Products - 0.4% | |||
Energizer Holdings, Inc. | 119,000 | 3,973 | |
Reynolds Consumer Products, Inc. | 46,500 | 1,384 | |
Spectrum Brands Holdings, Inc. | 29,807 | 2,765 | |
8,122 | |||
Personal Products - 0.6% | |||
Herbalife Nutrition Ltd. (a) | 23,600 | 840 | |
The Beauty Health Co. (a)(b) | 570,136 | 11,049 | |
11,889 | |||
TOTAL CONSUMER STAPLES | 85,876 | ||
ENERGY - 3.5% | |||
Energy Equipment & Services - 0.2% | |||
Liberty Oilfield Services, Inc. Class A (a) | 377,460 | 4,711 | |
Oil, Gas & Consumable Fuels - 3.3% | |||
APA Corp. | 167,602 | 5,972 | |
Coterra Energy, Inc. | 206,148 | 4,809 | |
Denbury, Inc. (a) | 45,900 | 3,335 | |
DHT Holdings, Inc. | 1,418,300 | 8,921 | |
EQT Corp. | 420,392 | 9,728 | |
Euronav NV | 911,516 | 10,149 | |
HollyFrontier Corp. | 223,606 | 6,809 | |
Targa Resources Corp. | 289,700 | 18,938 | |
68,661 | |||
TOTAL ENERGY | 73,372 | ||
FINANCIALS - 13.6% | |||
Banks - 5.8% | |||
Associated Banc-Corp. | 416,000 | 10,146 | |
East West Bancorp, Inc. | 223,000 | 19,526 | |
First Horizon National Corp. | 743,000 | 17,446 | |
Meta Financial Group, Inc. | 180,170 | 9,980 | |
Metropolitan Bank Holding Corp. (a) | 80,139 | 8,194 | |
PacWest Bancorp | 581,700 | 28,748 | |
Pinnacle Financial Partners, Inc. | 136,200 | 13,767 | |
Piraeus Financial Holdings SA (a) | 1,079,500 | 1,710 | |
Silvergate Capital Corp. (a) | 23,600 | 3,023 | |
Wintrust Financial Corp. | 96,600 | 9,598 | |
122,138 | |||
Capital Markets - 0.4% | |||
Lazard Ltd. Class A | 138,700 | 4,796 | |
Patria Investments Ltd. | 199,600 | 3,313 | |
8,109 | |||
Consumer Finance - 1.6% | |||
FirstCash Holdings, Inc. | 88,066 | 6,344 | |
OneMain Holdings, Inc. | 537,731 | 27,414 | |
33,758 | |||
Diversified Financial Services - 0.7% | |||
Cannae Holdings, Inc. (a) | 224,500 | 6,028 | |
WeWork, Inc. (a)(b) | 1,204,900 | 7,711 | |
13,739 | |||
Insurance - 3.2% | |||
American Financial Group, Inc. | 95,923 | 12,987 | |
Assurant, Inc. | 58,400 | 9,911 | |
BRP Group, Inc. (a) | 340,166 | 9,446 | |
Globe Life, Inc. | 112,600 | 11,368 | |
Primerica, Inc. | 79,100 | 10,274 | |
Reinsurance Group of America, Inc. | 100,400 | 11,130 | |
Talanx AG | 66,000 | 2,881 | |
67,997 | |||
Mortgage Real Estate Investment Trusts - 0.5% | |||
New Residential Investment Corp. | 1,113,600 | 11,559 | |
Thrifts & Mortgage Finance - 1.4% | |||
Essent Group Ltd. | 320,600 | 14,164 | |
MGIC Investment Corp. | 988,500 | 15,005 | |
29,169 | |||
TOTAL FINANCIALS | 286,469 | ||
HEALTH CARE - 7.9% | |||
Biotechnology - 0.8% | |||
Exelixis, Inc. (a) | 660,000 | 13,550 | |
TG Therapeutics, Inc. (a) | 420,000 | 4,145 | |
17,695 | |||
Health Care Equipment & Supplies - 3.8% | |||
Hologic, Inc. (a) | 130,000 | 9,252 | |
Insulet Corp. (a) | 58,000 | 15,352 | |
Masimo Corp. (a) | 86,000 | 13,541 | |
Nanosonics Ltd. (a) | 2,140,000 | 6,512 | |
Penumbra, Inc. (a) | 90,000 | 19,957 | |
Tandem Diabetes Care, Inc. (a) | 135,000 | 15,205 | |
79,819 | |||
Health Care Providers & Services - 2.5% | |||
Alignment Healthcare, Inc. (a) | 599,900 | 5,063 | |
Cano Health, Inc. (a)(b) | 850,000 | 4,140 | |
LHC Group, Inc. (a) | 74,000 | 10,077 | |
Molina Healthcare, Inc. (a) | 86,000 | 26,391 | |
Oak Street Health, Inc. (a) | 400,000 | 7,004 | |
52,675 | |||
Life Sciences Tools & Services - 0.7% | |||
Bruker Corp. | 200,000 | 14,074 | |
Pharmaceuticals - 0.1% | |||
Nektar Therapeutics (a)(b) | 335,000 | 3,430 | |
TOTAL HEALTH CARE | 167,693 | ||
INDUSTRIALS - 19.5% | |||
Aerospace & Defense - 1.9% | |||
Curtiss-Wright Corp. | 275,371 | 40,626 | |
Building Products - 1.3% | |||
Builders FirstSource, Inc. (a) | 80,200 | 5,968 | |
Jeld-Wen Holding, Inc. (a) | 918,850 | 21,207 | |
27,175 | |||
Commercial Services & Supplies - 1.5% | |||
CoreCivic, Inc. (a) | 1,740,134 | 15,853 | |
The Brink's Co. | 34,800 | 2,438 | |
The GEO Group, Inc. (b) | 2,282,500 | 13,604 | |
31,895 | |||
Construction & Engineering - 4.3% | |||
AECOM | 470,858 | 34,213 | |
API Group Corp. (a) | 982,757 | 21,198 | |
Fluor Corp. (a)(b) | 1,226,902 | 26,575 | |
Granite Construction, Inc. (b) | 308,595 | 9,341 | |
91,327 | |||
Electrical Equipment - 1.4% | |||
GrafTech International Ltd. | 37,000 | 373 | |
Sensata Technologies, Inc. PLC (a) | 489,974 | 28,374 | |
Vertiv Holdings Co. | 32,600 | 424 | |
29,171 | |||
Machinery - 1.2% | |||
Allison Transmission Holdings, Inc. | 507,163 | 20,256 | |
Crane Co. | 55,835 | 5,644 | |
25,900 | |||
Marine - 2.2% | |||
Genco Shipping & Trading Ltd. | 970,300 | 18,707 | |
Golden Ocean Group Ltd. (b) | 343,810 | 4,256 | |
Kirby Corp. (a) | 308,451 | 20,096 | |
Star Bulk Carriers Corp. (b) | 152,528 | 4,588 | |
47,647 | |||
Professional Services - 2.1% | |||
CACI International, Inc. Class A (a) | 42,100 | 11,779 | |
Nielsen Holdings PLC | 1,830,185 | 31,882 | |
43,661 | |||
Road & Rail - 1.3% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 487,279 | 26,547 | |
Trading Companies & Distributors - 2.3% | |||
Beacon Roofing Supply, Inc. (a) | 154,331 | 9,212 | |
MRC Global, Inc. (a) | 2,773,438 | 28,012 | |
NOW, Inc. (a) | 1,138,592 | 10,634 | |
47,858 | |||
TOTAL INDUSTRIALS | 411,807 | ||
INFORMATION TECHNOLOGY - 14.2% | |||
Electronic Equipment & Components - 2.7% | |||
Avnet, Inc. | 412,900 | 17,371 | |
Cognex Corp. | 212,471 | 14,355 | |
Jabil, Inc. | 109,000 | 6,301 | |
Trimble, Inc. (a) | 102,200 | 7,128 | |
TTM Technologies, Inc. (a) | 479,000 | 6,021 | |
Vishay Intertechnology, Inc. (b) | 108,400 | 2,080 | |
Vontier Corp. | 127,468 | 3,097 | |
56,353 | |||
IT Services - 2.9% | |||
Akamai Technologies, Inc. (a) | 106,000 | 11,476 | |
Cyxtera Technologies, Inc. Class A (a) | 214,200 | 2,607 | |
ExlService Holdings, Inc. (a) | 52,673 | 6,362 | |
Gartner, Inc. (a) | 9,200 | 2,580 | |
GoDaddy, Inc. (a) | 135,600 | 11,310 | |
Liveramp Holdings, Inc. (a) | 70,300 | 3,034 | |
Nuvei Corp. (a)(c) | 21,200 | 1,151 | |
Repay Holdings Corp. (a) | 338,600 | 5,848 | |
Thoughtworks Holding, Inc. | 7,600 | 174 | |
WEX, Inc. (a) | 71,900 | 12,116 | |
Wix.com Ltd. (a) | 52,300 | 4,790 | |
61,448 | |||
Semiconductors & Semiconductor Equipment - 2.7% | |||
Cirrus Logic, Inc. (a) | 182,000 | 15,810 | |
onsemi (a) | 373,600 | 23,391 | |
SolarEdge Technologies, Inc. (a) | 59,900 | 19,133 | |
58,334 | |||
Software - 5.6% | |||
Anaplan, Inc. (a) | 215,200 | 10,194 | |
Aspen Technology, Inc. (a) | 64,400 | 9,815 | |
AvidXchange Holdings, Inc. | 6,200 | 60 | |
Black Knight, Inc. (a) | 60,900 | 3,422 | |
Blackbaud, Inc. (a)(b) | 163,300 | 10,205 | |
Blend Labs, Inc. (b) | 36,807 | 325 | |
Braze, Inc. | 2,600 | 110 | |
BTRS Holdings, Inc. (a) | 429,000 | 2,617 | |
Ceridian HCM Holding, Inc. (a) | 164,000 | 11,957 | |
Citrix Systems, Inc. | 59,200 | 6,068 | |
Coupa Software, Inc. (a) | 36,800 | 4,453 | |
Elastic NV (a) | 71,400 | 6,187 | |
GitLab, Inc. | 1,900 | 111 | |
Guidewire Software, Inc. (a)(b) | 56,600 | 4,989 | |
HashiCorp, Inc. | 1,100 | 55 | |
NortonLifeLock, Inc. | 388,400 | 11,256 | |
PTC, Inc. (a) | 116,800 | 12,998 | |
Samsara, Inc. | 3,400 | 59 | |
Tenable Holdings, Inc. (a) | 251,200 | 13,906 | |
Zendesk, Inc. (a) | 77,600 | 9,054 | |
117,841 | |||
Technology Hardware, Storage & Peripherals - 0.3% | |||
Western Digital Corp. (a) | 130,500 | 6,648 | |
TOTAL INFORMATION TECHNOLOGY | 300,624 | ||
MATERIALS - 6.9% | |||
Chemicals - 2.4% | |||
RPM International, Inc. | 183,400 | 15,510 | |
The Chemours Co. LLC | 476,400 | 13,149 | |
Trinseo PLC | 206,500 | 10,730 | |
Valvoline, Inc. | 352,204 | 11,387 | |
50,776 | |||
Construction Materials - 0.9% | |||
Eagle Materials, Inc. | 135,500 | 18,540 | |
Containers & Packaging - 0.5% | |||
Berry Global Group, Inc. (a) | 179,400 | 10,881 | |
Metals & Mining - 2.3% | |||
Cleveland-Cliffs, Inc. (a) | 619,200 | 13,845 | |
Steel Dynamics, Inc. | 364,500 | 25,726 | |
Yamana Gold, Inc. (b) | 1,856,600 | 9,097 | |
48,668 | |||
Paper & Forest Products - 0.8% | |||
Louisiana-Pacific Corp. | 229,000 | 16,477 | |
TOTAL MATERIALS | 145,342 | ||
REAL ESTATE - 9.7% | |||
Equity Real Estate Investment Trusts (REITs) - 8.8% | |||
American Homes 4 Rent Class A | 315,300 | 11,985 | |
CubeSmart | 307,772 | 14,838 | |
CyrusOne, Inc. | 101,200 | 9,143 | |
Digitalbridge Group, Inc. (a) | 891,300 | 6,462 | |
Douglas Emmett, Inc. | 401,100 | 12,715 | |
EastGroup Properties, Inc. | 94,300 | 17,989 | |
Equity Lifestyle Properties, Inc. | 166,500 | 12,424 | |
Gaming & Leisure Properties | 170,500 | 7,742 | |
Healthcare Trust of America, Inc. | 234,100 | 6,880 | |
Lamar Advertising Co. Class A | 103,700 | 11,310 | |
Postal Realty Trust, Inc. | 664,400 | 11,594 | |
Ryman Hospitality Properties, Inc. (a) | 114,800 | 10,115 | |
SITE Centers Corp. | 649,700 | 10,103 | |
Spirit Realty Capital, Inc. | 230,400 | 10,684 | |
Terreno Realty Corp. | 118,600 | 8,158 | |
Ventas, Inc. | 328,400 | 17,734 | |
Washington REIT (SBI) | 223,600 | 5,223 | |
185,099 | |||
Real Estate Management & Development - 0.9% | |||
Cushman & Wakefield PLC (a) | 822,411 | 18,027 | |
Doma Holdings, Inc. Class A (a)(b) | 923,389 | 2,456 | |
20,483 | |||
TOTAL REAL ESTATE | 205,582 | ||
UTILITIES - 3.4% | |||
Electric Utilities - 1.2% | |||
IDACORP, Inc. | 59,700 | 6,206 | |
OGE Energy Corp. | 360,600 | 13,541 | |
PNM Resources, Inc. | 112,400 | 5,077 | |
24,824 | |||
Gas Utilities - 0.6% | |||
National Fuel Gas Co. | 83,200 | 5,178 | |
ONE Gas, Inc. (b) | 59,718 | 4,962 | |
UGI Corp. | 71,000 | 2,729 | |
12,869 | |||
Independent Power and Renewable Electricity Producers - 0.1% | |||
NextEra Energy Partners LP | 34,000 | 2,652 | |
Multi-Utilities - 0.9% | |||
Black Hills Corp. | 90,000 | 6,299 | |
MDU Resources Group, Inc. | 323,139 | 8,650 | |
NiSource, Inc. | 141,000 | 4,079 | |
19,028 | |||
Water Utilities - 0.6% | |||
Essential Utilities, Inc. | 231,815 | 10,921 | |
SJW Corp. (b) | 12,400 | 809 | |
11,730 | |||
TOTAL UTILITIES | 71,103 | ||
TOTAL COMMON STOCKS (Cost $1,667,128) | 2,070,653 | ||
U.S. Treasury Obligations - 0.1% | |||
Principal Amount (d) (000s) | Value ($) (000s) | ||
U.S. Treasury Bills, yield at date of purchase 0.19% to 0.39% 5/5/22 to 5/12/22 (e) (Cost $939) | 940 | 940 | |
Money Market Funds - 5.3% | |||
Shares | Value ($) (000s) | ||
Fidelity Cash Central Fund 0.07% (f) | 41,229,163 | 41,237 | |
Fidelity Securities Lending Cash Central Fund 0.07% (f)(g) | 71,500,646 | 71,508 | |
TOTAL MONEY MARKET FUNDS (Cost $112,742) | 112,745 | ||
TOTAL INVESTMENT IN SECURITIES - 103.5% (Cost $1,780,809) | 2,184,338 |
NET OTHER ASSETS (LIABILITIES) - (3.5)% | (73,937) |
NET ASSETS - 100.0% | 2,110,401 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount ($) (000s) | Value ($) (000s) | Unrealized Appreciation/ (Depreciation) ($) (000s) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini S&P MidCap 400 Index Contracts (United States) | 36 | Mar 2022 | 9,569 | (123) | (123) |
The notional amount of futures purchased as a percentage of Net Assets is 0.5% |
Any values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) | Non-income producing |
(b) | Security or a portion of the security is on loan at period end. |
(c) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,852,000 or 0.1% of net assets. |
(d) | Amount is stated in United States dollars unless otherwise noted. |
(e) | 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 $676,000. |
(f) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(g) | Investment made with cash collateral received from securities on loan. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate (Amounts in thousands) | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | %ownership, end of period |
Fidelity Cash Central Fund 0.07% | 51,479 | 150,910 | 161,152 | 6 | - | - | 41,237 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.07% | 60,537 | 183,182 | 172,211 | 30 | - | - | 71,508 | 0.2% |
Total | 112,016 | 334,092 | 333,363 | 36 | - | - | 112,745 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds.
Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The inputs to valuation techniques used to value investments are categorized into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - Unadjusted 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 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 any foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. Treasury 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 any open-end mutual 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.
Derivative Instruments
Risk Exposures and the Use of Derivative Instruments: The Fund's investment objectives allow the Fund to enter into various types of derivative 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, to gain exposure to certain types of assets and/or 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(s):
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.
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. 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 specified price at a specified future date.
The Fund used futures contracts to manage its exposure to the stock market.
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. Any securities and/or cash deposited to meet initial margin requirements are identified in the Schedule of Investments.
For additional information on the Fund's significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.
The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please see the fund's most recent prospectus and annual report.
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