Quarterly Holdings Report
for
Fidelity Advisor® Value Fund
July 31, 2022
FAV-NPRT3-0922
1.804833.118
Common Stocks - 98.1% | |||
Shares | Value ($) | ||
COMMUNICATION SERVICES - 2.5% | |||
Interactive Media & Services - 0.2% | |||
Ziff Davis, Inc. (a) | 10,430 | 854,113 | |
Media - 2.3% | |||
Advantage Solutions, Inc. Class A (a) | 167,242 | 742,554 | |
DISH Network Corp. Class A (a) | 30,805 | 535,083 | |
Interpublic Group of Companies, Inc. | 61,871 | 1,848,087 | |
Liberty Broadband Corp. Class A (a) | 7,228 | 780,118 | |
News Corp. Class A | 46,813 | 802,375 | |
Nexstar Broadcasting Group, Inc. Class A | 9,793 | 1,844,707 | |
Scholastic Corp. (b) | 20,975 | 987,293 | |
Thryv Holdings, Inc. (a) | 57,681 | 1,403,956 | |
8,944,173 | |||
TOTAL COMMUNICATION SERVICES | 9,798,286 | ||
CONSUMER DISCRETIONARY - 14.5% | |||
Auto Components - 1.1% | |||
Adient PLC (a) | 54,872 | 1,853,576 | |
Autoliv, Inc. | 21,825 | 1,876,950 | |
Cie Automotive SA | 24,070 | 629,287 | |
4,359,813 | |||
Automobiles - 0.5% | |||
Harley-Davidson, Inc. | 50,548 | 1,911,220 | |
Diversified Consumer Services - 1.1% | |||
Adtalem Global Education, Inc. (a) | 61,549 | 2,468,115 | |
Frontdoor, Inc. (a) | 68,479 | 1,833,183 | |
4,301,298 | |||
Hotels, Restaurants & Leisure - 2.4% | |||
ARAMARK Holdings Corp. | 54,234 | 1,811,416 | |
Brinker International, Inc. (a) | 41,895 | 1,162,586 | |
Caesars Entertainment, Inc. (a) | 60,049 | 2,743,639 | |
Hilton Grand Vacations, Inc. (a) | 26,450 | 1,078,367 | |
Hyatt Hotels Corp. Class A (a) | 13,264 | 1,097,596 | |
Light & Wonder, Inc. Class A (a) | 22,828 | 1,162,858 | |
Red Rock Resorts, Inc. | 11,570 | 455,048 | |
9,511,510 | |||
Household Durables - 1.7% | |||
KB Home | 47,869 | 1,562,444 | |
Mohawk Industries, Inc. (a) | 15,992 | 2,054,652 | |
Newell Brands, Inc. | 53,104 | 1,073,232 | |
Tempur Sealy International, Inc. | 73,132 | 2,009,667 | |
6,699,995 | |||
Internet & Direct Marketing Retail - 0.6% | |||
eBay, Inc. | 47,017 | 2,286,437 | |
Leisure Products - 0.5% | |||
Mattel, Inc. (a) | 92,621 | 2,148,807 | |
Multiline Retail - 1.6% | |||
Dollar Tree, Inc. (a) | 18,095 | 2,992,189 | |
Franchise Group, Inc. | 51,090 | 1,682,394 | |
Nordstrom, Inc. (b) | 70,555 | 1,658,748 | |
6,333,331 | |||
Specialty Retail - 4.3% | |||
Academy Sports & Outdoors, Inc. | 21,389 | 920,369 | |
American Eagle Outfitters, Inc. | 152,020 | 1,830,321 | |
Bath & Body Works, Inc. | 58,086 | 2,064,376 | |
Camping World Holdings, Inc. (b) | 34,372 | 929,419 | |
Gap, Inc. (b) | 109,748 | 1,055,776 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 6,716 | 1,781,620 | |
Rent-A-Center, Inc. | 68,240 | 1,605,687 | |
Sally Beauty Holdings, Inc. (a) | 59,650 | 762,327 | |
Signet Jewelers Ltd. (b) | 23,486 | 1,431,707 | |
Victoria's Secret & Co. (a) | 74,280 | 2,745,389 | |
Williams-Sonoma, Inc. (b) | 12,205 | 1,762,646 | |
16,889,637 | |||
Textiles, Apparel & Luxury Goods - 0.7% | |||
Capri Holdings Ltd. (a) | 54,018 | 2,629,596 | |
TOTAL CONSUMER DISCRETIONARY | 57,071,644 | ||
CONSUMER STAPLES - 2.7% | |||
Beverages - 0.3% | |||
Primo Water Corp. | 105,540 | 1,395,239 | |
Food & Staples Retailing - 1.0% | |||
Albertsons Companies, Inc. | 39,270 | 1,054,400 | |
U.S. Foods Holding Corp. (a) | 94,157 | 2,965,946 | |
4,020,346 | |||
Food Products - 0.7% | |||
Darling Ingredients, Inc. (a) | 41,149 | 2,850,803 | |
Household Products - 0.3% | |||
Spectrum Brands Holdings, Inc. | 16,070 | 1,117,508 | |
Personal Products - 0.4% | |||
Herbalife Nutrition Ltd. (a) | 58,502 | 1,428,034 | |
TOTAL CONSUMER STAPLES | 10,811,930 | ||
ENERGY - 11.2% | |||
Energy Equipment & Services - 1.9% | |||
Halliburton Co. | 53,892 | 1,579,036 | |
Liberty Oilfield Services, Inc. Class A (a) | 105,222 | 1,494,152 | |
Technip Energies NV | 63,049 | 742,984 | |
TechnipFMC PLC (a) | 282,855 | 2,288,297 | |
Tenaris SA | 94,300 | 1,319,639 | |
7,424,108 | |||
Oil, Gas & Consumable Fuels - 9.3% | |||
Antero Resources Corp. (a) | 163,378 | 6,476,301 | |
APA Corp. | 13,567 | 504,285 | |
Canadian Natural Resources Ltd. | 46,241 | 2,553,357 | |
Cenovus Energy, Inc. (Canada) | 174,533 | 3,325,606 | |
Denbury, Inc. (a) | 39,237 | 2,821,533 | |
Devon Energy Corp. | 14,757 | 927,477 | |
Diamondback Energy, Inc. | 4,095 | 524,242 | |
Energy Transfer LP | 160,996 | 1,820,865 | |
EQT Corp. | 15,647 | 688,937 | |
Genesis Energy LP | 170,787 | 1,706,162 | |
Hess Corp. | 37,414 | 4,207,953 | |
HF Sinclair Corp. | 46,302 | 2,214,162 | |
Imperial Oil Ltd. | 36,141 | 1,732,047 | |
Kosmos Energy Ltd. (a) | 284,144 | 1,801,473 | |
Targa Resources Corp. | 23,399 | 1,617,105 | |
The Williams Companies, Inc. | 25,129 | 856,648 | |
Tourmaline Oil Corp. | 31,355 | 1,964,477 | |
Valero Energy Corp. | 7,833 | 867,661 | |
36,610,291 | |||
TOTAL ENERGY | 44,034,399 | ||
FINANCIALS - 12.4% | |||
Banks - 3.4% | |||
Bank of Kyoto Ltd. | 15,572 | 662,518 | |
East West Bancorp, Inc. | 39,695 | 2,849,307 | |
First Citizens Bancshares, Inc. | 2,429 | 1,837,976 | |
First Citizens Bancshares, Inc. Class B | 210 | 139,650 | |
M&T Bank Corp. | 19,987 | 3,546,693 | |
PacWest Bancorp | 35,539 | 996,158 | |
Signature Bank | 13,806 | 2,561,979 | |
Wintrust Financial Corp. | 10,435 | 897,827 | |
13,492,108 | |||
Capital Markets - 2.2% | |||
Ameriprise Financial, Inc. | 8,785 | 2,371,247 | |
BlackRock, Inc. Class A | 1,852 | 1,239,321 | |
Lazard Ltd. Class A | 36,452 | 1,373,147 | |
LPL Financial | 13,972 | 2,933,002 | |
Petershill Partners PLC (c) | 286,364 | 816,038 | |
8,732,755 | |||
Consumer Finance - 1.2% | |||
OneMain Holdings, Inc. | 55,117 | 2,050,352 | |
SLM Corp. | 155,092 | 2,419,435 | |
4,469,787 | |||
Diversified Financial Services - 1.5% | |||
Apollo Global Management, Inc. | 60,038 | 3,428,170 | |
ECN Capital Corp. | 146,558 | 684,407 | |
Equitable Holdings, Inc. | 61,792 | 1,756,747 | |
5,869,324 | |||
Insurance - 2.8% | |||
AMBAC Financial Group, Inc. (a) | 19,801 | 233,058 | |
American Financial Group, Inc. | 12,463 | 1,666,054 | |
Arch Capital Group Ltd. (a) | 36,158 | 1,605,415 | |
Assurant, Inc. | 11,850 | 2,082,993 | |
First American Financial Corp. | 19,319 | 1,120,502 | |
Reinsurance Group of America, Inc. | 9,717 | 1,125,034 | |
The Travelers Companies, Inc. | 20,690 | 3,283,503 | |
11,116,559 | |||
Thrifts & Mortgage Finance - 1.3% | |||
Axos Financial, Inc. (a) | 49,741 | 2,077,184 | |
Essent Group Ltd. | 25,103 | 1,048,301 | |
Walker & Dunlop, Inc. | 17,919 | 2,018,396 | |
5,143,881 | |||
TOTAL FINANCIALS | 48,824,414 | ||
HEALTH CARE - 6.1% | |||
Biotechnology - 0.6% | |||
Biogen, Inc. (a) | 1,244 | 267,535 | |
Horizon Therapeutics PLC (a) | 3,212 | 266,500 | |
United Therapeutics Corp. (a) | 8,540 | 1,973,338 | |
2,507,373 | |||
Health Care Equipment & Supplies - 0.4% | |||
STERIS PLC | 2,168 | 489,209 | |
Teleflex, Inc. | 1,466 | 352,514 | |
The Cooper Companies, Inc. | 1,425 | 465,975 | |
Zimmer Biomet Holdings, Inc. | 1,734 | 191,416 | |
1,499,114 | |||
Health Care Providers & Services - 3.6% | |||
AdaptHealth Corp. (a) | 108,122 | 2,390,577 | |
AmerisourceBergen Corp. | 3,377 | 492,806 | |
Centene Corp. (a) | 28,460 | 2,645,926 | |
Cigna Corp. | 9,739 | 2,681,731 | |
HCA Holdings, Inc. | 1,386 | 294,414 | |
Laboratory Corp. of America Holdings | 10,111 | 2,651,003 | |
Molina Healthcare, Inc. (a) | 1,362 | 446,355 | |
Tenet Healthcare Corp. (a) | 36,299 | 2,400,090 | |
14,002,902 | |||
Health Care Technology - 0.0% | |||
Evolent Health, Inc. (a) | 5,221 | 177,462 | |
Life Sciences Tools & Services - 0.5% | |||
Agilent Technologies, Inc. | 2,619 | 351,208 | |
Avantor, Inc. (a) | 5,906 | 171,392 | |
Bio-Rad Laboratories, Inc. Class A (a) | 787 | 443,286 | |
Charles River Laboratories International, Inc. (a) | 541 | 135,542 | |
IQVIA Holdings, Inc. (a) | 1,145 | 275,109 | |
PerkinElmer, Inc. | 2,932 | 449,094 | |
1,825,631 | |||
Pharmaceuticals - 1.0% | |||
Catalent, Inc. (a) | 3,193 | 361,128 | |
Jazz Pharmaceuticals PLC (a) | 19,220 | 2,999,473 | |
Royalty Pharma PLC | 12,201 | 530,621 | |
3,891,222 | |||
TOTAL HEALTH CARE | 23,903,704 | ||
INDUSTRIALS - 17.8% | |||
Air Freight & Logistics - 0.7% | |||
FedEx Corp. | 11,024 | 2,569,584 | |
Building Products - 1.7% | |||
Builders FirstSource, Inc. (a) | 44,635 | 3,035,180 | |
Jeld-Wen Holding, Inc. (a) | 136,657 | 2,429,761 | |
UFP Industries, Inc. | 12,037 | 1,109,932 | |
6,574,873 | |||
Commercial Services & Supplies - 1.3% | |||
CoreCivic, Inc. (a) | 62,190 | 669,786 | |
HNI Corp. (b) | 37,409 | 1,321,286 | |
The Brink's Co. | 47,435 | 2,700,949 | |
The GEO Group, Inc. (a) | 51,474 | 337,669 | |
5,029,690 | |||
Construction & Engineering - 3.4% | |||
AECOM | 919 | 66,168 | |
API Group Corp. (a) | 128,551 | 2,276,638 | |
Fluor Corp. (a) | 127,770 | 3,246,636 | |
Granite Construction, Inc. | 80,183 | 2,397,472 | |
MDU Resources Group, Inc. | 46,741 | 1,335,390 | |
Valmont Industries, Inc. | 4,888 | 1,326,994 | |
Willscot Mobile Mini Holdings (a) | 67,092 | 2,590,422 | |
13,239,720 | |||
Electrical Equipment - 2.1% | |||
Array Technologies, Inc. (a) | 117,730 | 1,983,751 | |
GrafTech International Ltd. | 102,565 | 789,751 | |
Regal Rexnord Corp. | 22,589 | 3,033,703 | |
Sensata Technologies, Inc. PLC | 24,240 | 1,077,953 | |
Vertiv Holdings Co. | 132,985 | 1,518,689 | |
8,403,847 | |||
Machinery - 3.7% | |||
Allison Transmission Holdings, Inc. | 59,271 | 2,481,677 | |
Crane Holdings Co. | 24,369 | 2,410,825 | |
Flowserve Corp. | 75,425 | 2,552,382 | |
Kennametal, Inc. | 86,170 | 2,313,665 | |
Oshkosh Corp. | 17,584 | 1,513,982 | |
Stanley Black & Decker, Inc. | 13,402 | 1,304,417 | |
Timken Co. | 32,917 | 2,152,113 | |
14,729,061 | |||
Marine - 0.0% | |||
Genco Shipping & Trading Ltd. | 6,365 | 122,717 | |
Kirby Corp. (a) | 906 | 57,477 | |
180,194 | |||
Professional Services - 0.9% | |||
CACI International, Inc. Class A (a) | 3,156 | 954,027 | |
Manpower, Inc. | 31,263 | 2,451,332 | |
3,405,359 | |||
Road & Rail - 1.5% | |||
Ryder System, Inc. | 20,812 | 1,629,996 | |
TFI International, Inc. (Canada) | 15,263 | 1,524,453 | |
XPO Logistics, Inc. (a) | 48,783 | 2,914,296 | |
6,068,745 | |||
Trading Companies & Distributors - 2.5% | |||
Beacon Roofing Supply, Inc. (a) | 48,778 | 2,927,656 | |
Custom Truck One Source, Inc. Class A (a) | 169,334 | 1,048,177 | |
Fortress Transportation & Infrastructure Investors LLC | 52,824 | 1,214,424 | |
GMS, Inc. (a) | 25,705 | 1,364,164 | |
Herc Holdings, Inc. (b) | 16,348 | 2,027,479 | |
MRC Global, Inc. (a) | 81,467 | 946,647 | |
NOW, Inc. (a) | 28,210 | 312,003 | |
9,840,550 | |||
TOTAL INDUSTRIALS | 70,041,623 | ||
INFORMATION TECHNOLOGY - 5.9% | |||
Communications Equipment - 0.4% | |||
Lumentum Holdings, Inc. (a) | 16,595 | 1,501,184 | |
Electronic Equipment & Components - 1.2% | |||
Flex Ltd. (a) | 175,497 | 2,948,350 | |
Vontier Corp. | 66,244 | 1,709,095 | |
4,657,445 | |||
IT Services - 3.0% | |||
Concentrix Corp. | 14,066 | 1,881,468 | |
Cyxtera Technologies, Inc. Class A (a) | 126,689 | 1,544,339 | |
Fidelity National Information Services, Inc. | 23,344 | 2,384,823 | |
SS&C Technologies Holdings, Inc. | 50,211 | 2,970,985 | |
Unisys Corp. (a) | 143,447 | 1,968,093 | |
Verra Mobility Corp. (a)(b) | 61,638 | 1,016,411 | |
11,766,119 | |||
Software - 0.8% | |||
NCR Corp. (a) | 70,192 | 2,277,730 | |
NortonLifeLock, Inc. | 44,285 | 1,086,311 | |
3,364,041 | |||
Technology Hardware, Storage & Peripherals - 0.5% | |||
Seagate Technology Holdings PLC | 15,208 | 1,216,336 | |
Xerox Holdings Corp. | 41,032 | 702,878 | |
1,919,214 | |||
TOTAL INFORMATION TECHNOLOGY | 23,208,003 | ||
MATERIALS - 11.8% | |||
Chemicals - 5.3% | |||
Axalta Coating Systems Ltd. (a) | 87,283 | 2,201,277 | |
Cabot Corp. | 18,872 | 1,401,435 | |
Celanese Corp. Class A | 21,181 | 2,488,979 | |
Corteva, Inc. | 25,235 | 1,452,274 | |
Eastman Chemical Co. | 24,024 | 2,304,622 | |
Huntsman Corp. | 25,212 | 730,140 | |
Methanex Corp. | 45,795 | 1,703,574 | |
Olin Corp. | 42,715 | 2,232,713 | |
The Chemours Co. LLC | 56,240 | 2,001,582 | |
Trinseo PLC | 39,250 | 1,403,973 | |
Tronox Holdings PLC | 99,137 | 1,547,529 | |
Westlake Corp. | 15,036 | 1,463,604 | |
20,931,702 | |||
Construction Materials - 1.4% | |||
Eagle Materials, Inc. | 13,176 | 1,666,105 | |
GCC S.A.B. de CV | 134,228 | 829,579 | |
Martin Marietta Materials, Inc. | 2,972 | 1,046,382 | |
Summit Materials, Inc. (a) | 73,899 | 2,032,961 | |
5,575,027 | |||
Containers & Packaging - 1.7% | |||
Berry Global Group, Inc. (a) | 46,344 | 2,671,732 | |
Crown Holdings, Inc. | 20,828 | 2,117,791 | |
O-I Glass, Inc. (a) | 117,937 | 1,734,853 | |
6,524,376 | |||
Metals & Mining - 3.2% | |||
Alcoa Corp. | 25,713 | 1,308,535 | |
ArcelorMittal SA Class A unit GDR | 48,450 | 1,191,386 | |
Arconic Corp. (a) | 81,139 | 2,451,209 | |
ATI, Inc. (a) | 45,453 | 1,131,325 | |
Carpenter Technology Corp. | 25,995 | 835,479 | |
Constellium NV (a) | 150,349 | 2,199,606 | |
First Quantum Minerals Ltd. | 40,442 | 739,013 | |
Freeport-McMoRan, Inc. | 54,098 | 1,706,792 | |
Steel Dynamics, Inc. | 12,174 | 948,111 | |
12,511,456 | |||
Paper & Forest Products - 0.2% | |||
Louisiana-Pacific Corp. | 12,417 | 790,094 | |
TOTAL MATERIALS | 46,332,655 | ||
REAL ESTATE - 6.8% | |||
Equity Real Estate Investment Trusts (REITs) - 4.5% | |||
Crown Castle International Corp. | 8,601 | 1,553,857 | |
CubeSmart | 100,860 | 4,626,448 | |
Duke Realty Corp. | 31,435 | 1,966,574 | |
Equinix, Inc. | 2,178 | 1,532,746 | |
Equity Lifestyle Properties, Inc. | 24,169 | 1,776,905 | |
Lamar Advertising Co. Class A | 3,634 | 367,252 | |
Ventas, Inc. | 63,710 | 3,426,324 | |
Welltower, Inc. | 29,801 | 2,573,018 | |
17,823,124 | |||
Real Estate Management & Development - 2.3% | |||
Anywhere Real Estate, Inc. (a) | 159,128 | 1,580,141 | |
Cushman & Wakefield PLC (a) | 184,171 | 3,094,073 | |
Jones Lang LaSalle, Inc. (a) | 14,991 | 2,858,334 | |
WeWork, Inc. (a)(b) | 294,371 | 1,404,150 | |
8,936,698 | |||
TOTAL REAL ESTATE | 26,759,822 | ||
UTILITIES - 6.4% | |||
Electric Utilities - 4.3% | |||
Constellation Energy Corp. | 33,188 | 2,193,727 | |
Edison International | 68,429 | 4,637,433 | |
Entergy Corp. | 34,763 | 4,002,264 | |
FirstEnergy Corp. | 68,944 | 2,833,598 | |
PG&E Corp. (a) | 308,570 | 3,351,070 | |
17,018,092 | |||
Independent Power and Renewable Electricity Producers - 1.4% | |||
The AES Corp. | 177,313 | 3,939,895 | |
Vistra Corp. | 69,916 | 1,807,329 | |
5,747,224 | |||
Multi-Utilities - 0.7% | |||
Sempra Energy | 15,756 | 2,612,345 | |
TOTAL UTILITIES | 25,377,661 | ||
TOTAL COMMON STOCKS (Cost $364,624,707) | 386,164,141 | ||
U.S. Treasury Obligations - 0.1% | |||
Principal Amount (d) | Value ($) | ||
U.S. Treasury Bills, yield at date of purchase 1.02% to 2.46% 8/18/22 to 10/27/22 (e) (Cost $378,588) | 380,000 | 378,506 | |
Money Market Funds - 4.4% | |||
Shares | Value ($) | ||
Fidelity Cash Central Fund 2.01% (f) | 9,568,144 | 9,570,057 | |
Fidelity Securities Lending Cash Central Fund 2.01% (f)(g) | 7,694,277 | 7,695,046 | |
TOTAL MONEY MARKET FUNDS (Cost $17,265,089) | 17,265,103 | ||
TOTAL INVESTMENT IN SECURITIES - 102.6% (Cost $382,268,384) | 403,807,750 |
NET OTHER ASSETS (LIABILITIES) - (2.6)% | (10,141,253) |
NET ASSETS - 100.0% | 393,666,497 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount ($) | Value ($) | Unrealized Appreciation/ (Depreciation) ($) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini S&P MidCap 400 Index Contracts (United States) | 29 | Sep 2022 | 7,291,760 | 446,602 | 446,602 |
The notional amount of futures purchased as a percentage of Net Assets is 1.9% |
Legend
(a) | Non-income producing |
(b) | Security or a portion of the security is on loan at period end. |
(c) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $816,038 or 0.2% 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 $378,506. |
(f) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(g) | Investment made with cash collateral received from securities on loan. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate | Value, beginning of period ($) | 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 2.01% | 9,374,021 | 281,320,782 | 281,124,746 | 21,195 | 23 | (23) | 9,570,057 | 0.0% |
Fidelity Securities Lending Cash Central Fund 2.01% | 4,785,846 | 71,749,004 | 68,839,804 | 53,429 | - | - | 7,695,046 | 0.0% |
Total | 14,159,867 | 353,069,786 | 349,964,550 | 74,624 | 23 | (23) | 17,265,103 | |
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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