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 811-3855
Fidelity Advisor Series VIII
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(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, 2012 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Diversified International
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.32% | | | |
Actual | | $ 1,000.00 | $ 1,053.40 | $ 6.74 |
HypotheticalA | | $ 1,000.00 | $ 1,018.30 | $ 6.62 |
Class T | 1.58% | | | |
Actual | | $ 1,000.00 | $ 1,052.40 | $ 8.06 |
HypotheticalA | | $ 1,000.00 | $ 1,017.01 | $ 7.92 |
Class B | 2.08% | | | |
Actual | | $ 1,000.00 | $ 1,049.80 | $ 10.60 |
HypotheticalA | | $ 1,000.00 | $ 1,014.52 | $ 10.42 |
Class C | 2.06% | | | |
Actual | | $ 1,000.00 | $ 1,049.80 | $ 10.50 |
HypotheticalA | | $ 1,000.00 | $ 1,014.62 | $ 10.32 |
Institutional Class | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,054.70 | $ 5.11 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 5.02 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class B (United Kingdom, Oil, Gas & Consumable Fuels) | 3.1 | 4.3 |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.6 | 1.9 |
BHP Billiton Ltd. sponsored ADR (Australia, Metals & Mining) | 2.1 | 2.1 |
Sanofi SA (France, Pharmaceuticals) | 1.9 | 1.0 |
Vodafone Group PLC sponsored ADR (United Kingdom, Wireless Telecommunication Services) | 1.8 | 1.7 |
| 11.5 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 16.1 | 16.4 |
Financials | 15.1 | 15.7 |
Consumer Staples | 12.7 | 10.6 |
Health Care | 10.6 | 8.4 |
Information Technology | 10.6 | 9.8 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 17.9 | 18.2 |
Japan | 15.7 | 14.5 |
Germany | 8.1 | 8.4 |
France | 7.3 | 7.0 |
United States of America | 4.5 | 5.2 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
 | Stocks 95.6% | | | Stocks 97.7% | |
 | Other Investments 0.0%* | | | Other Investments 0.0%* | |
 | Short-Term
Investments and
Net Other Assets
(Liabilities) 4.4% | | | Short-Term
Investments and
Net Other Assets
(Liabilities) 2.3% | |
* Amount represents less than 0.1%.
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.3% |
| Shares | | Value (000s) |
Australia - 3.9% |
Australia & New Zealand Banking Group Ltd. | 398,674 | | $ 9,931 |
BHP Billiton Ltd. sponsored ADR (d) | 590,236 | | 43,855 |
Iluka Resources Ltd. | 236,843 | | 4,195 |
Newcrest Mining Ltd. | 562,428 | | 15,411 |
Origin Energy Ltd. | 328,926 | | 4,544 |
Spark Infrastructure Group unit | 1,390,264 | | 2,100 |
WorleyParsons Ltd. | 83,479 | | 2,457 |
TOTAL AUSTRALIA | | 82,493 |
Bailiwick of Guernsey - 1.0% |
Amdocs Ltd. (a) | 135,100 | | 4,323 |
Resolution Ltd. | 4,422,382 | | 16,064 |
TOTAL BAILIWICK OF GUERNSEY | | 20,387 |
Bailiwick of Jersey - 1.5% |
Experian PLC | 836,500 | | 13,204 |
Randgold Resources Ltd. sponsored ADR | 42,200 | | 3,762 |
Shire PLC | 92,900 | | 3,028 |
WPP PLC | 833,870 | | 11,293 |
TOTAL BAILIWICK OF JERSEY | | 31,287 |
Belgium - 1.7% |
Anheuser-Busch InBev SA NV (d) | 506,331 | | 36,497 |
Bermuda - 1.0% |
Assured Guaranty Ltd. | 290,700 | | 4,122 |
Clear Media Ltd. | 11,132,000 | | 6,787 |
Li & Fung Ltd. | 4,432,000 | | 9,482 |
TOTAL BERMUDA | | 20,391 |
Brazil - 1.7% |
Anhanguera Educacional Participacoes SA | 262,200 | | 3,486 |
Banco Bradesco SA (PN) sponsored ADR | 66,800 | | 1,071 |
BR Malls Participacoes SA | 189,300 | | 2,352 |
Drogasil SA | 327,124 | | 3,525 |
Estacio Participacoes SA | 210,300 | | 2,626 |
Itau Unibanco Banco Multiplo SA sponsored ADR | 257,748 | | 4,044 |
Kroton Educacional SA unit (a) | 128,700 | | 1,877 |
Qualicorp SA | 447,000 | | 3,893 |
Souza Cruz Industria e Comercio | 330,700 | | 5,151 |
T4F Entretenimento SA | 212,800 | | 1,945 |
Common Stocks - continued |
| Shares | | Value (000s) |
Brazil - continued |
Telefonica Brasil SA sponsored ADR | 149,935 | | $ 4,269 |
Tractebel Energia SA | 181,600 | | 3,130 |
TOTAL BRAZIL | | 37,369 |
British Virgin Islands - 0.4% |
Arcos Dorados Holdings, Inc. | 177,300 | | 3,168 |
Mail.ru Group Ltd. GDR (Reg. S) (a) | 105,400 | | 4,559 |
TOTAL BRITISH VIRGIN ISLANDS | | 7,727 |
Canada - 3.8% |
ARC Resources Ltd. | 44,400 | | 914 |
Bonavista Energy Corp. (d) | 61,000 | | 1,101 |
Canadian Natural Resources Ltd. | 261,400 | | 9,083 |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 14,900 | | 6,109 |
Goldcorp, Inc. | 172,400 | | 6,603 |
Ivanhoe Mines Ltd. (a) | 356,460 | | 4,161 |
Niko Resources Ltd. | 146,300 | | 6,165 |
Open Text Corp. (a) | 92,500 | | 5,186 |
Painted Pony Petroleum Ltd. (a)(e) | 170,900 | | 1,379 |
Painted Pony Petroleum Ltd. Class A (a) | 847,700 | | 6,840 |
Penn West Petroleum Ltd. (d) | 100,800 | | 1,728 |
Petrobank Energy & Resources Ltd. (a) | 267,200 | | 3,830 |
Petrominerales Ltd. (d) | 250,614 | | 3,666 |
Potash Corp. of Saskatchewan, Inc. | 244,900 | | 10,413 |
Suncor Energy, Inc. | 249,100 | | 8,229 |
Tourmaline Oil Corp. (a) | 150,000 | | 3,616 |
Uranium One, Inc. (a)(d) | 1,000,800 | | 2,908 |
TOTAL CANADA | | 81,931 |
Cayman Islands - 1.5% |
Baidu.com, Inc. sponsored ADR (a) | 87,300 | | 11,585 |
Biostime International Holdings Ltd. | 29,000 | | 84 |
Golden Eagle Retail Group Ltd. (H Shares) | 478,000 | | 1,254 |
Haitian International Holdings Ltd. | 3,153,000 | | 3,629 |
Hengan International Group Co. Ltd. | 861,500 | | 9,122 |
HiSoft Technology International Ltd. ADR (a)(d) | 178,100 | | 2,533 |
NVC Lighting Holdings Ltd. | 4,004,000 | | 1,455 |
Sands China Ltd. | 755,600 | | 2,970 |
TOTAL CAYMAN ISLANDS | | 32,632 |
China - 0.1% |
Weichai Power Co. Ltd. (H Shares) | 395,000 | | 1,861 |
Common Stocks - continued |
| Shares | | Value (000s) |
Curacao - 0.5% |
Schlumberger Ltd. | 158,000 | | $ 11,714 |
Denmark - 3.2% |
Danske Bank A/S (a) | 137,133 | | 2,227 |
Novo Nordisk A/S Series B | 381,208 | | 56,204 |
William Demant Holding A/S (a) | 108,835 | | 10,274 |
TOTAL DENMARK | | 68,705 |
Finland - 0.1% |
Nokian Tyres PLC | 46,300 | | 2,196 |
France - 7.3% |
Arkema SA | 52,600 | | 4,659 |
Atos Origin SA | 35,000 | | 2,254 |
AXA SA | 557,200 | | 7,893 |
BNP Paribas SA | 307,100 | | 12,338 |
Bureau Veritas SA | 74,100 | | 6,603 |
Danone SA | 120,700 | | 8,492 |
Edenred SA | 111,510 | | 3,562 |
Essilor International SA | 144,839 | | 12,758 |
JC Decaux SA | 128,200 | | 3,638 |
LVMH Moet Hennessy - Louis Vuitton SA (d) | 115,974 | | 19,214 |
PPR SA (d) | 159,400 | | 26,662 |
Publicis Groupe SA | 123,600 | | 6,375 |
Sanofi SA | 548,930 | | 41,931 |
TOTAL FRANCE | | 156,379 |
Germany - 6.8% |
adidas AG | 139,100 | | 11,601 |
Allianz AG | 93,617 | | 10,432 |
BASF AG (d) | 256,914 | | 21,151 |
Bayer AG (d) | 280,552 | | 19,762 |
Deutsche Boerse AG | 80,700 | | 5,067 |
Deutsche Post AG | 288,869 | | 5,392 |
ElringKlinger AG | 81,300 | | 2,354 |
Fresenius Medical Care AG & Co. KGaA | 138,900 | | 9,864 |
Fresenius SE | 130,800 | | 13,056 |
Kabel Deutschland Holding AG | 33,300 | | 2,098 |
Linde AG | 111,047 | | 19,008 |
SAP AG | 317,830 | | 21,078 |
Siemens AG | 57,235 | | 5,313 |
TOTAL GERMANY | | 146,176 |
Common Stocks - continued |
| Shares | | Value (000s) |
Hong Kong - 1.2% |
AIA Group Ltd. | 3,326,800 | | $ 11,834 |
China Mobile Ltd. sponsored ADR | 116,500 | | 6,447 |
Galaxy Entertainment Group Ltd. (a) | 815,000 | | 2,547 |
Henderson Land Development Co. Ltd. | 998,325 | | 5,687 |
TOTAL HONG KONG | | 26,515 |
India - 1.8% |
Axis Bank Ltd. | 154,359 | | 3,244 |
Bajaj Auto Ltd. | 77,063 | | 2,377 |
Cummins India Ltd. | 309,088 | | 2,831 |
Dr. Reddy's Laboratories Ltd. | 15,851 | | 531 |
HDFC Bank Ltd. | 1,169,785 | | 12,053 |
Housing Development Finance Corp. Ltd. | 602,905 | | 7,711 |
ITC Ltd. | 682,786 | | 3,183 |
Lupin Ltd. | 94,586 | | 992 |
Mahindra & Mahindra Financial Services Ltd. | 231,785 | | 3,047 |
Shriram Transport Finance Co. Ltd. | 201,979 | | 2,196 |
TOTAL INDIA | | 38,165 |
Ireland - 0.4% |
Accenture PLC Class A | 102,100 | | 6,631 |
Elan Corp. PLC sponsored ADR (a) | 164,100 | | 2,263 |
TOTAL IRELAND | | 8,894 |
Isle of Man - 0.0% |
3Legs Resources PLC | 645,100 | | 597 |
Italy - 2.1% |
ENI SpA | 275,600 | | 6,124 |
Fiat Industrial SpA | 1,562,300 | | 17,724 |
Prada SpA | 701,200 | | 4,763 |
Saipem SpA | 324,940 | | 16,053 |
TOTAL ITALY | | 44,664 |
Japan - 15.7% |
ABC-Mart, Inc. | 111,600 | | 4,064 |
Aeon Credit Service Co. Ltd. | 509,400 | | 8,881 |
Aozora Bank Ltd. | 1,525,000 | | 3,912 |
Calbee, Inc. (d) | 119,900 | | 7,256 |
Canon, Inc. | 45,400 | | 2,058 |
Cosmos Pharmaceutical Corp. | 151,100 | | 8,472 |
Denso Corp. | 133,000 | | 4,301 |
Dentsu, Inc. | 73,900 | | 2,269 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Don Quijote Co. Ltd. | 252,800 | | $ 9,273 |
Fanuc Corp. | 77,200 | | 13,021 |
Fast Retailing Co. Ltd. | 10,800 | | 2,414 |
Hitachi Ltd. | 4,517,000 | | 28,772 |
Honda Motor Co. Ltd. sponsored ADR | 725,306 | | 26,140 |
Hoya Corp. | 238,700 | | 5,475 |
Itochu Corp. | 1,186,600 | | 13,426 |
Japan Tobacco, Inc. | 5,297 | | 29,346 |
JSR Corp. | 464,500 | | 9,168 |
KDDI Corp. | 992 | | 6,494 |
Keyence Corp. | 66,100 | | 15,602 |
Mitsubishi UFJ Financial Group, Inc. | 1,900,000 | | 9,123 |
Nikon Corp. | 110,100 | | 3,263 |
Nippon Telegraph & Telephone Corp. | 94,400 | | 4,271 |
Nitto Denko Corp. | 56,600 | | 2,323 |
ORIX Corp. | 302,240 | | 28,899 |
Rakuten, Inc. | 23,901 | | 26,660 |
Seven & i Holdings Co., Ltd. | 430,000 | | 13,017 |
Seven Bank Ltd. | 1,121,800 | | 2,772 |
SHIMANO, Inc. | 103,800 | | 6,826 |
SMC Corp. | 69,900 | | 11,674 |
SOFTBANK CORP. | 336,800 | | 10,053 |
Sumitomo Mitsui Financial Group, Inc. | 131,900 | | 4,221 |
Toray Industries, Inc. | 423,000 | | 3,252 |
Unicharm Corp. | 79,000 | | 4,420 |
Yahoo! Japan Corp. | 15,024 | | 4,509 |
TOTAL JAPAN | | 335,627 |
Korea (South) - 2.4% |
Amorepacific Corp. | 4,423 | | 4,246 |
Hyundai Motor Co. | 27,035 | | 6,423 |
LG Household & Health Care Ltd. | 5,491 | | 2,881 |
Orion Corp. | 22,683 | | 18,024 |
Samsung Electronics Co. Ltd. | 16,654 | | 20,484 |
TOTAL KOREA (SOUTH) | | 52,058 |
Luxembourg - 0.3% |
Samsonite International SA | 3,334,500 | | 6,464 |
Mexico - 0.8% |
America Movil SAB de CV Series L sponsored ADR | 295,900 | | 7,886 |
Wal-Mart de Mexico SA de CV Series V | 2,922,900 | | 8,357 |
TOTAL MEXICO | | 16,243 |
Common Stocks - continued |
| Shares | | Value (000s) |
Netherlands - 1.7% |
AEGON NV | 2,504,000 | | $ 11,648 |
ASML Holding NV (Netherlands) (d) | 148,900 | | 7,577 |
Gemalto NV | 119,179 | | 8,881 |
NXP Semiconductors NV (a) | 150,200 | | 3,883 |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 140,900 | | 4,827 |
TOTAL NETHERLANDS | | 36,816 |
Norway - 1.4% |
DnB NOR ASA (d) | 350,799 | | 3,782 |
Storebrand ASA (A Shares) | 600,000 | | 2,697 |
Telenor ASA | 1,221,800 | | 22,462 |
TOTAL NORWAY | | 28,941 |
Qatar - 0.2% |
Commercial Bank of Qatar GDR (Reg. S) | 864,317 | | 3,418 |
South Africa - 0.8% |
Foschini Ltd. | 165,400 | | 2,739 |
Life Healthcare Group Holdings Ltd. | 641,500 | | 2,217 |
Naspers Ltd. Class N | 74,900 | | 4,511 |
Shoprite Holdings Ltd. | 255,500 | | 4,415 |
Tiger Brands Ltd. | 82,000 | | 3,005 |
TOTAL SOUTH AFRICA | | 16,887 |
Spain - 2.6% |
Banco Bilbao Vizcaya Argentaria SA | 707,207 | | 4,786 |
Banco Bilbao Vizcaya Argentaria SA rights 4/30/12 (a) | 707,162 | | 101 |
Grifols SA ADR (d) | 940,690 | | 8,899 |
Inditex SA (d) | 281,513 | | 25,323 |
Prosegur Compania de Seguridad SA (Reg.) | 167,986 | | 9,593 |
Repsol YPF SA | 305,893 | | 5,851 |
TOTAL SPAIN | | 54,553 |
Sweden - 0.9% |
H&M Hennes & Mauritz AB (B Shares) | 125,563 | | 4,314 |
Svenska Handelsbanken AB (A Shares) | 103,200 | | 3,344 |
Swedbank AB (A Shares) | 414,600 | | 6,866 |
Swedish Match Co. AB | 115,400 | | 4,691 |
TOTAL SWEDEN | | 19,215 |
Switzerland - 4.2% |
Clariant AG (Reg.) | 178,215 | | 2,266 |
Kuehne & Nagel International AG | 51,630 | | 6,275 |
Nestle SA | 531,289 | | 32,549 |
Common Stocks - continued |
| Shares | | Value (000s) |
Switzerland - continued |
Roche Holding AG (participation certificate) | 48,529 | | $ 8,866 |
SGS SA (Reg.) | 1,650 | | 3,187 |
Syngenta AG (Switzerland) | 37,300 | | 13,082 |
UBS AG | 1,130,550 | | 14,120 |
Zurich Financial Services AG | 37,441 | | 9,159 |
TOTAL SWITZERLAND | | 89,504 |
Taiwan - 0.9% |
HIWIN Technologies Corp. | 223,000 | | 2,119 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,142,600 | | 17,802 |
TOTAL TAIWAN | | 19,921 |
United Kingdom - 17.9% |
Aegis Group PLC | 1,675,600 | | 4,833 |
Aggreko PLC | 45,000 | | 1,644 |
Anglo American PLC (United Kingdom) | 268,600 | | 10,324 |
Barclays PLC | 4,201,124 | | 14,875 |
BG Group PLC | 862,392 | | 20,303 |
British American Tobacco PLC sponsored ADR | 171,500 | | 17,651 |
Burberry Group PLC | 354,800 | | 8,552 |
Capita Group PLC | 590,000 | | 6,349 |
Compass Group PLC | 213,400 | | 2,231 |
Diageo PLC | 168,843 | | 4,259 |
Domino Printing Sciences PLC | 229,900 | | 2,235 |
Filtrona PLC | 658,900 | | 4,967 |
GlaxoSmithKline PLC | 1,444,700 | | 33,379 |
Hikma Pharmaceuticals PLC | 192,188 | | 1,959 |
HSBC Holdings PLC sponsored ADR | 650,700 | | 29,392 |
Imperial Tobacco Group PLC | 282,905 | | 11,314 |
Inchcape PLC | 1,245,692 | | 7,398 |
Intertek Group PLC | 234,300 | | 9,564 |
ITV PLC | 3,103,700 | | 4,216 |
Meggitt PLC | 748,900 | | 4,965 |
National Grid PLC | 217,000 | | 2,344 |
Next PLC | 323,500 | | 15,379 |
Ocado Group PLC (a)(d) | 531,200 | | 1,119 |
Pearson PLC | 296,500 | | 5,586 |
Pz Cussons PLC Class L | 250,100 | | 1,349 |
Reckitt Benckiser Group PLC | 387,413 | | 22,555 |
Rolls-Royce Group PLC | 1,411,300 | | 18,864 |
Royal Dutch Shell PLC Class B | 1,808,432 | | 66,189 |
Standard Chartered PLC (United Kingdom) | 266,827 | | 6,522 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Taylor Wimpey PLC | 2,688,800 | | $ 2,193 |
Travis Perkins PLC | 126,400 | | 2,154 |
Vodafone Group PLC sponsored ADR | 1,363,300 | | 37,941 |
TOTAL UNITED KINGDOM | | 382,605 |
United States of America - 4.5% |
Apple, Inc. (a) | 34,700 | | 20,273 |
Beam, Inc. | 55,600 | | 3,157 |
Citigroup, Inc. | 423,280 | | 13,985 |
Cobalt International Energy, Inc. (a) | 41,100 | | 1,100 |
Cognizant Technology Solutions Corp. Class A (a) | 66,700 | | 4,890 |
Dolby Laboratories, Inc. Class A (a) | 55,900 | | 2,193 |
Facebook, Inc. Class B (f) | 131,847 | | 4,057 |
JPMorgan Chase & Co. | 197,202 | | 8,476 |
MasterCard, Inc. Class A | 9,940 | | 4,496 |
Motorola Solutions, Inc. | 47,000 | | 2,398 |
Newmont Mining Corp. | 62,400 | | 2,973 |
Noble Energy, Inc. | 75,600 | | 7,509 |
Polycom, Inc. (a) | 275,000 | | 3,649 |
PriceSmart, Inc. | 4,200 | | 347 |
SanDisk Corp. (a) | 176,100 | | 6,517 |
Schweitzer-Mauduit International, Inc. | 41,345 | | 2,804 |
Splunk, Inc. | 46,700 | | 1,585 |
ViroPharma, Inc. (a) | 107,100 | | 2,329 |
Yum! Brands, Inc. | 31,400 | | 2,284 |
TOTAL UNITED STATES OF AMERICA | | 95,022 |
TOTAL COMMON STOCKS (Cost $1,788,741) |
2,013,854
|
Nonconvertible Preferred Stocks - 1.3% |
| | | |
Germany - 1.3% |
ProSiebenSat.1 Media AG | 256,500 | | 6,513 |
Volkswagen AG (d) | 111,000 | | 21,027 |
TOTAL GERMANY | | 27,540 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC Class C | 149,597,800 | | 243 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $16,514) |
27,783
|
Master Notes - 0.0% |
| Principal
Amount (000s) | | Value (000s) |
Canada - 0.0% |
OZ Optics Ltd. 5% 11/5/14 (f)
(Cost $15) | | $ 14 | | $ 14 |
Money Market Funds - 13.6% |
| Shares | | |
Fidelity Cash Central Fund, 0.14% (b) | 74,884,868 | | 74,885 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 214,876,848 | | 214,877 |
TOTAL MONEY MARKET FUNDS (Cost $289,762) |
289,762
|
TOTAL INVESTMENT PORTFOLIO - 109.2% (Cost $2,095,032) | | 2,331,413 |
NET OTHER ASSETS (LIABILITIES) - (9.2)% | | (197,093) |
NET ASSETS - 100% | $ 2,134,320 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 $1,379,000 or 0.1% of net assets. |
(f) 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 $4,071,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition
Date | Acquisition
Cost (000s) |
Facebook, Inc. Class B | 3/31/11 | $ 3,296 |
OZ Optics Ltd. 5% 11/5/14 | 11/5/10 | $ 15 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 25 |
Fidelity Securities Lending Cash Central Fund | 455 |
Total | $ 480 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 345,028 | $ 269,079 | $ 75,949 | $ - |
Consumer Staples | 273,647 | 202,050 | 71,597 | - |
Energy | 191,900 | 119,587 | 72,313 | - |
Financials | 318,401 | 203,111 | 115,290 | - |
Health Care | 228,312 | 83,375 | 144,937 | - |
Industrials | 167,090 | 123,656 | 43,434 | - |
Information Technology | 225,485 | 143,934 | 77,494 | 4,057 |
Materials | 184,377 | 156,552 | 27,825 | - |
Telecommunication Services | 99,823 | 79,005 | 20,818 | - |
Utilities | 7,574 | 5,230 | 2,344 | - |
Master Notes | 14 | - | - | 14 |
Money Market Funds | 289,762 | 289,762 | - | - |
Total Investments in Securities: | $ 2,331,413 | $ 1,675,341 | $ 652,001 | $ 4,071 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $ 3,310 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 761 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,071 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2012 | $ 761 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $202,097) - See accompanying schedule: Unaffiliated issuers (cost $1,805,270) | $ 2,041,651 | |
Fidelity Central Funds (cost $289,762) | 289,762 | |
Total Investments (cost $2,095,032) | | $ 2,331,413 |
Foreign currency held at value (cost $440) | | 439 |
Receivable for investments sold | | 22,105 |
Receivable for fund shares sold | | 2,083 |
Dividends receivable | | 10,162 |
Interest receivable | | 1 |
Distributions receivable from Fidelity Central Funds | | 327 |
Prepaid expenses | | 2 |
Other receivables | | 237 |
Total assets | | 2,366,769 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,347 | |
Payable for fund shares redeemed | 7,216 | |
Accrued management fee | 1,257 | |
Distribution and service plan fees payable | 606 | |
Other affiliated payables | 565 | |
Other payables and accrued expenses | 2,581 | |
Collateral on securities loaned, at value | 214,877 | |
Total liabilities | | 232,449 |
| | |
Net Assets | | $ 2,134,320 |
Net Assets consist of: | | |
Paid in capital | | $ 4,922,228 |
Undistributed net investment income | | 8,454 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,030,472) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 234,110 |
Net Assets | | $ 2,134,320 |
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, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($819,013 ÷ 53,952 shares) | | $ 15.18 |
| | |
Maximum offering price per share (100/94.25 of $15.18) | | $ 16.11 |
Class T:
Net Asset Value and redemption price per share ($343,087 ÷ 22,772 shares) | | $ 15.07 |
| | |
Maximum offering price per share (100/96.50 of $15.07) | | $ 15.62 |
Class B:
Net Asset Value and offering price per share ($74,631 ÷ 5,120 shares)A | | $ 14.58 |
| | |
Class C:
Net Asset Value and offering price per share ($271,106 ÷ 18,582 shares)A | | $ 14.59 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($626,483 ÷ 40,642 shares) | | $ 15.41 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 26,677 |
Income from Fidelity Central Funds | | 480 |
Income before foreign taxes withheld | | 27,157 |
Less foreign taxes withheld | | (1,755) |
Total income | | 25,402 |
| | |
Expenses | | |
Management fee | $ 7,801 | |
Transfer agent fees | 2,989 | |
Distribution and service plan fees | 3,776 | |
Accounting and security lending fees | 489 | |
Custodian fees and expenses | 153 | |
Independent trustees' compensation | 7 | |
Registration fees | 98 | |
Audit | 45 | |
Legal | 5 | |
Miscellaneous | 11 | |
Total expenses before reductions | 15,374 | |
Expense reductions | (169) | 15,205 |
Net investment income (loss) | | 10,197 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 24,766 | |
Foreign currency transactions | (314) | |
Total net realized gain (loss) | | 24,452 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 70,174 | |
Assets and liabilities in foreign currencies | 103 | |
Total change in net unrealized appreciation (depreciation) | | 70,277 |
Net gain (loss) | | 94,729 |
Net increase (decrease) in net assets resulting from operations | | $ 104,926 |
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
April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 10,197 | $ 43,005 |
Net realized gain (loss) | 24,452 | 251,468 |
Change in net unrealized appreciation (depreciation) | 70,277 | (392,112) |
Net increase (decrease) in net assets resulting
from operations | 104,926 | (97,639) |
Distributions to shareholders from net investment income | (28,136) | (45,397) |
Distributions to shareholders from net realized gain | - | (8,026) |
Total distributions | (28,136) | (53,423) |
Share transactions - net increase (decrease) | (381,064) | (1,225,390) |
Redemption fees | 20 | 65 |
Total increase (decrease) in net assets | (304,254) | (1,376,387) |
| | |
Net Assets | | |
Beginning of period | 2,438,574 | 3,814,961 |
End of period (including undistributed net investment income of $8,454 and undistributed net investment income of $26,393, respectively) | $ 2,134,320 | $ 2,438,574 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.61 | $ 15.63 | $ 14.25 | $ 12.57 | $ 26.62 | $ 23.42 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 | .22 H | .14 | .17 | .36 | .31 |
Net realized and unrealized gain (loss) | .69 | (1.01) | 1.44 | 1.96 | (11.15) | 4.69 |
Total from investment operations | .76 | (.79) | 1.58 | 2.13 | (10.79) | 5.00 |
Distributions from net investment income | (.19) | (.20) | (.19) | (.45) | (.24) | (.23) |
Distributions from net realized gain | - | (.03) | (.01) | - | (3.02) | (1.57) |
Total distributions | (.19) | (.23) | (.20) | (.45) | (3.26) | (1.80) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.18 | $ 14.61 | $ 15.63 | $ 14.25 | $ 12.57 | $ 26.62 |
Total Return B, C, D | 5.34% | (5.15)% | 11.17% | 18.16% | (45.95)% | 22.76% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.32% A | 1.31% | 1.32% | 1.34% | 1.26% | 1.25% |
Expenses net of fee waivers, if any | 1.32% A | 1.31% | 1.32% | 1.34% | 1.26% | 1.25% |
Expenses net of all reductions | 1.31% A | 1.29% | 1.30% | 1.31% | 1.22% | 1.21% |
Net investment income (loss) | 1.00% A | 1.38% H | .95% | 1.43% | 1.80% | 1.26% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 819 | $ 916 | $ 1,302 | $ 1,662 | $ 2,004 | $ 5,774 |
Portfolio turnover rate G | 34% A | 48% | 59% | 92% | 88% | 105% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .98%. 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 T
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.46 | $ 15.47 | $ 14.11 | $ 12.42 | $ 26.30 | $ 23.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .18 H | .10 | .14 | .31 | .25 |
Net realized and unrealized gain (loss) | .70 | (.99) | 1.43 | 1.94 | (11.01) | 4.63 |
Total from investment operations | .75 | (.81) | 1.53 | 2.08 | (10.70) | 4.88 |
Distributions from net investment income | (.14) | (.16) | (.16) | (.39) | (.16) | (.18) |
Distributions from net realized gain | - | (.03) | (.01) | - | (3.02) | (1.57) |
Total distributions | (.14) | (.20) K | (.17) | (.39) | (3.18) | (1.75) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.07 | $ 14.46 | $ 15.47 | $ 14.11 | $ 12.42 | $ 26.30 |
Total Return B, C, D | 5.24% | (5.35)% | 10.88% | 17.84% | (46.04)% | 22.43% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.58% A | 1.55% | 1.55% | 1.58% | 1.49% | 1.47% |
Expenses net of fee waivers, if any | 1.58% A | 1.55% | 1.55% | 1.58% | 1.49% | 1.47% |
Expenses net of all reductions | 1.56% A | 1.53% | 1.53% | 1.55% | 1.44% | 1.43% |
Net investment income (loss) | .74% A | 1.14% H | .71% | 1.19% | 1.57% | 1.04% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 343 | $ 404 | $ 621 | $ 832 | $ 1,110 | $ 3,569 |
Portfolio turnover rate G | 34% A | 48% | 59% | 92% | 88% | 105% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .74%. 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. K Total distributions of $.20 per share is comprised of distributions from net investment income of $.164 and distributions from net realized gain of $.034 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.91 | $ 14.91 | $ 13.61 | $ 11.95 | $ 25.44 | $ 22.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .09 H | .02 | .08 | .18 | .10 |
Net realized and unrealized gain (loss) | .67 | (.96) | 1.38 | 1.88 | (10.62) | 4.50 |
Total from investment operations | .69 | (.87) | 1.40 | 1.96 | (10.44) | 4.60 |
Distributions from net investment income | (.02) | (.10) | (.09) | (.30) | (.03) | (.05) |
Distributions from net realized gain | - | (.03) | (.01) | - | (3.02) | (1.57) |
Total distributions | (.02) | (.13) | (.10) | (.30) | (3.05) | (1.62) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.58 | $ 13.91 | $ 14.91 | $ 13.61 | $ 11.95 | $ 25.44 |
Total Return B, C, D | 4.98% | (5.89)% | 10.34% | 17.25% | (46.39)% | 21.73% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.08% A | 2.08% | 2.09% | 2.10% | 2.08% | 2.08% |
Expenses net of fee waivers, if any | 2.08% A | 2.08% | 2.09% | 2.10% | 2.08% | 2.08% |
Expenses net of all reductions | 2.07% A | 2.06% | 2.07% | 2.07% | 2.04% | 2.04% |
Net investment income (loss) | .24% A | .61% H | .18% | .67% | .97% | .42% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 75 | $ 94 | $ 157 | $ 191 | $ 221 | $ 559 |
Portfolio turnover rate G | 34% A | 48% | 59% | 92% | 88% | 105% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .21%. 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
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.95 | $ 14.95 | $ 13.65 | $ 11.98 | $ 25.50 | $ 22.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .10 H | .03 | .08 | .20 | .12 |
Net realized and unrealized gain (loss) | .67 | (.96) | 1.38 | 1.89 | (10.64) | 4.50 |
Total from investment operations | .69 | (.86) | 1.41 | 1.97 | (10.44) | 4.62 |
Distributions from net investment income | (.05) | (.11) | (.10) | (.30) | (.06) | (.08) |
Distributions from net realized gain | - | (.03) | (.01) | - | (3.02) | (1.57) |
Total distributions | (.05) | (.14) | (.11) | (.30) | (3.08) | (1.65) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.59 | $ 13.95 | $ 14.95 | $ 13.65 | $ 11.98 | $ 25.50 |
Total Return B, C, D | 4.98% | (5.83)% | 10.32% | 17.24% | (46.33)% | 21.81% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.06% A | 2.05% | 2.06% | 2.09% | 2.01% | 2.00% |
Expenses net of fee waivers, if any | 2.06% A | 2.05% | 2.06% | 2.09% | 2.01% | 2.00% |
Expenses net of all reductions | 2.05% A | 2.03% | 2.04% | 2.06% | 1.97% | 1.96% |
Net investment income (loss) | .26% A | .64% H | .21% | .68% | 1.04% | .51% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 271 | $ 302 | $ 419 | $ 502 | $ 618 | $ 1,673 |
Portfolio turnover rate G | 34% A | 48% | 59% | 92% | 88% | 105% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%. 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
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.87 | $ 15.90 | $ 14.48 | $ 12.81 | $ 27.06 | $ 23.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .10 | .28 G | .19 | .21 | .41 | .38 |
Net realized and unrealized gain (loss) | .69 | (1.03) | 1.47 | 1.98 | (11.34) | 4.76 |
Total from investment operations | .79 | (.75) | 1.66 | 2.19 | (10.93) | 5.14 |
Distributions from net investment income | (.25) | (.25) | (.23) | (.52) | (.30) | (.29) |
Distributions from net realized gain | - | (.03) | (.01) | - | (3.02) | (1.57) |
Total distributions | (.25) | (.28) | (.24) | (.52) | (3.32) | (1.86) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.41 | $ 14.87 | $ 15.90 | $ 14.48 | $ 12.81 | $ 27.06 |
Total Return B, C | 5.47% | (4.85)% | 11.55% | 18.45% | (45.79)% | 23.07% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | 1.00% A | .99% | .99% | 1.07% | .99% | .98% |
Expenses net of fee waivers, if any | 1.00% A | .99% | .99% | 1.07% | .99% | .98% |
Expenses net of all reductions | .99% A | .97% | .97% | 1.04% | .94% | .94% |
Net investment income (loss) | 1.32% A | 1.70% G | 1.28% | 1.70% | 2.07% | 1.53% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 626 | $ 723 | $ 1,316 | $ 1,540 | $ 2,235 | $ 5,266 |
Portfolio turnover rate F | 34% A | 48% | 59% | 92% | 88% | 105% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.30%. 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 $.01 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, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Diversified International Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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 the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security 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 value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 2 in the hierarchy. For foreign equity securities, when significant 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 are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For master notes, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
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 rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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
Semiannual Report
3. Significant Accounting Policies - continued
Deferred Trustee Compensation - continued
marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees 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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), deferred trustee 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 | $ 367,811 |
Gross unrealized depreciation | (148,588) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 219,223 |
| |
Tax cost | $ 2,112,190 |
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. At October 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (3,034,664) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value 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.
4. Operating Policies.
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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $372,637 and $807,783, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 1,055 | $ 19 |
Class T | .25% | .25% | 912 | 5 |
Class B | .75% | .25% | 418 | 314 |
Class C | .75% | .25% | 1,391 | 49 |
| | | $ 3,776 | $ 387 |
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, 1.00% for Class C, 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
by FDC |
Class A | $ 65 |
Class T | 19 |
Class B* | 67 |
Class C* | 5 |
| $ 156 |
* 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 FMR, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 1,231 | .29 |
Class T | 542 | .30 |
Class B | 127 | .30 |
Class C | 390 | .28 |
Institutional Class | 699 | .22 |
| $ 2,989 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $2 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
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
Semiannual Report
8. Security Lending - continued
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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 $455. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $169 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net investment income | | |
Class A | $ 11,830 | $ 15,976 |
Class T | 3,677 | 6,296 |
Class B | 137 | 993 |
Class C | 1,044 | 2,886 |
Institutional Class | 11,448 | 19,246 |
Total | $ 28,136 | $ 45,397 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Distributions to Shareholders - continued
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net realized gain | | |
Class A | $ - | $ 2,738 |
Class T | - | 1,311 |
Class B | - | 343 |
Class C | - | 927 |
Institutional Class | - | 2,707 |
Total | $ - | $ 8,026 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 3,454 | 9,002 | $ 50,381 | $ 142,807 |
Reinvestment of distributions | 768 | 1,034 | 10,735 | 16,424 |
Shares redeemed | (12,944) | (30,677) | (186,723) | (486,880) |
Net increase (decrease) | (8,722) | (20,641) | $ (125,607) | $ (327,649) |
Class T | | | | |
Shares sold | 1,030 | 2,789 | $ 14,822 | $ 43,918 |
Reinvestment of distributions | 246 | 447 | 3,415 | 7,039 |
Shares redeemed | (6,444) | (15,458) | (92,458) | (243,511) |
Net increase (decrease) | (5,168) | (12,222) | $ (74,221) | $ (192,554) |
Class B | | | | |
Shares sold | 14 | 58 | $ 201 | $ 888 |
Reinvestment of distributions | 9 | 75 | 118 | 1,145 |
Shares redeemed | (1,625) | (3,940) | (22,818) | (60,055) |
Net increase (decrease) | (1,602) | (3,807) | $ (22,499) | $ (58,022) |
Class C | | | | |
Shares sold | 432 | 1,225 | $ 6,008 | $ 18,824 |
Reinvestment of distributions | 60 | 191 | 813 | 2,917 |
Shares redeemed | (3,550) | (7,773) | (49,214) | (118,247) |
Net increase (decrease) | (3,058) | (6,357) | $ (42,393) | $ (96,506) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Institutional Class | | | | |
Shares sold | 5,072 | 10,009 | $ 74,037 | $ 160,916 |
Reinvestment of distributions | 640 | 1,047 | 9,062 | 16,863 |
Shares redeemed | (13,718) | (45,174) | (199,443) | (728,438) |
Net increase (decrease) | (8,006) | (34,118) | $ (116,344) | $ (550,659) |
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.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
ADIF-USAN-0612
1.784871.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Diversified International
Fund - Institutional Class
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.32% | | | |
Actual | | $ 1,000.00 | $ 1,053.40 | $ 6.74 |
HypotheticalA | | $ 1,000.00 | $ 1,018.30 | $ 6.62 |
Class T | 1.58% | | | |
Actual | | $ 1,000.00 | $ 1,052.40 | $ 8.06 |
HypotheticalA | | $ 1,000.00 | $ 1,017.01 | $ 7.92 |
Class B | 2.08% | | | |
Actual | | $ 1,000.00 | $ 1,049.80 | $ 10.60 |
HypotheticalA | | $ 1,000.00 | $ 1,014.52 | $ 10.42 |
Class C | 2.06% | | | |
Actual | | $ 1,000.00 | $ 1,049.80 | $ 10.50 |
HypotheticalA | | $ 1,000.00 | $ 1,014.62 | $ 10.32 |
Institutional Class | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,054.70 | $ 5.11 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 5.02 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class B (United Kingdom, Oil, Gas & Consumable Fuels) | 3.1 | 4.3 |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.6 | 1.9 |
BHP Billiton Ltd. sponsored ADR (Australia, Metals & Mining) | 2.1 | 2.1 |
Sanofi SA (France, Pharmaceuticals) | 1.9 | 1.0 |
Vodafone Group PLC sponsored ADR (United Kingdom, Wireless Telecommunication Services) | 1.8 | 1.7 |
| 11.5 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 16.1 | 16.4 |
Financials | 15.1 | 15.7 |
Consumer Staples | 12.7 | 10.6 |
Health Care | 10.6 | 8.4 |
Information Technology | 10.6 | 9.8 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 17.9 | 18.2 |
Japan | 15.7 | 14.5 |
Germany | 8.1 | 8.4 |
France | 7.3 | 7.0 |
United States of America | 4.5 | 5.2 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 95.6% | | | Stocks 97.7% | |
| Other Investments 0.0%* | | | Other Investments 0.0%* | |
| Short-Term
Investments and
Net Other Assets
(Liabilities) 4.4% | | | Short-Term
Investments and
Net Other Assets
(Liabilities) 2.3% | |
* Amount represents less than 0.1%.
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.3% |
| Shares | | Value (000s) |
Australia - 3.9% |
Australia & New Zealand Banking Group Ltd. | 398,674 | | $ 9,931 |
BHP Billiton Ltd. sponsored ADR (d) | 590,236 | | 43,855 |
Iluka Resources Ltd. | 236,843 | | 4,195 |
Newcrest Mining Ltd. | 562,428 | | 15,411 |
Origin Energy Ltd. | 328,926 | | 4,544 |
Spark Infrastructure Group unit | 1,390,264 | | 2,100 |
WorleyParsons Ltd. | 83,479 | | 2,457 |
TOTAL AUSTRALIA | | 82,493 |
Bailiwick of Guernsey - 1.0% |
Amdocs Ltd. (a) | 135,100 | | 4,323 |
Resolution Ltd. | 4,422,382 | | 16,064 |
TOTAL BAILIWICK OF GUERNSEY | | 20,387 |
Bailiwick of Jersey - 1.5% |
Experian PLC | 836,500 | | 13,204 |
Randgold Resources Ltd. sponsored ADR | 42,200 | | 3,762 |
Shire PLC | 92,900 | | 3,028 |
WPP PLC | 833,870 | | 11,293 |
TOTAL BAILIWICK OF JERSEY | | 31,287 |
Belgium - 1.7% |
Anheuser-Busch InBev SA NV (d) | 506,331 | | 36,497 |
Bermuda - 1.0% |
Assured Guaranty Ltd. | 290,700 | | 4,122 |
Clear Media Ltd. | 11,132,000 | | 6,787 |
Li & Fung Ltd. | 4,432,000 | | 9,482 |
TOTAL BERMUDA | | 20,391 |
Brazil - 1.7% |
Anhanguera Educacional Participacoes SA | 262,200 | | 3,486 |
Banco Bradesco SA (PN) sponsored ADR | 66,800 | | 1,071 |
BR Malls Participacoes SA | 189,300 | | 2,352 |
Drogasil SA | 327,124 | | 3,525 |
Estacio Participacoes SA | 210,300 | | 2,626 |
Itau Unibanco Banco Multiplo SA sponsored ADR | 257,748 | | 4,044 |
Kroton Educacional SA unit (a) | 128,700 | | 1,877 |
Qualicorp SA | 447,000 | | 3,893 |
Souza Cruz Industria e Comercio | 330,700 | | 5,151 |
T4F Entretenimento SA | 212,800 | | 1,945 |
Common Stocks - continued |
| Shares | | Value (000s) |
Brazil - continued |
Telefonica Brasil SA sponsored ADR | 149,935 | | $ 4,269 |
Tractebel Energia SA | 181,600 | | 3,130 |
TOTAL BRAZIL | | 37,369 |
British Virgin Islands - 0.4% |
Arcos Dorados Holdings, Inc. | 177,300 | | 3,168 |
Mail.ru Group Ltd. GDR (Reg. S) (a) | 105,400 | | 4,559 |
TOTAL BRITISH VIRGIN ISLANDS | | 7,727 |
Canada - 3.8% |
ARC Resources Ltd. | 44,400 | | 914 |
Bonavista Energy Corp. (d) | 61,000 | | 1,101 |
Canadian Natural Resources Ltd. | 261,400 | | 9,083 |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 14,900 | | 6,109 |
Goldcorp, Inc. | 172,400 | | 6,603 |
Ivanhoe Mines Ltd. (a) | 356,460 | | 4,161 |
Niko Resources Ltd. | 146,300 | | 6,165 |
Open Text Corp. (a) | 92,500 | | 5,186 |
Painted Pony Petroleum Ltd. (a)(e) | 170,900 | | 1,379 |
Painted Pony Petroleum Ltd. Class A (a) | 847,700 | | 6,840 |
Penn West Petroleum Ltd. (d) | 100,800 | | 1,728 |
Petrobank Energy & Resources Ltd. (a) | 267,200 | | 3,830 |
Petrominerales Ltd. (d) | 250,614 | | 3,666 |
Potash Corp. of Saskatchewan, Inc. | 244,900 | | 10,413 |
Suncor Energy, Inc. | 249,100 | | 8,229 |
Tourmaline Oil Corp. (a) | 150,000 | | 3,616 |
Uranium One, Inc. (a)(d) | 1,000,800 | | 2,908 |
TOTAL CANADA | | 81,931 |
Cayman Islands - 1.5% |
Baidu.com, Inc. sponsored ADR (a) | 87,300 | | 11,585 |
Biostime International Holdings Ltd. | 29,000 | | 84 |
Golden Eagle Retail Group Ltd. (H Shares) | 478,000 | | 1,254 |
Haitian International Holdings Ltd. | 3,153,000 | | 3,629 |
Hengan International Group Co. Ltd. | 861,500 | | 9,122 |
HiSoft Technology International Ltd. ADR (a)(d) | 178,100 | | 2,533 |
NVC Lighting Holdings Ltd. | 4,004,000 | | 1,455 |
Sands China Ltd. | 755,600 | | 2,970 |
TOTAL CAYMAN ISLANDS | | 32,632 |
China - 0.1% |
Weichai Power Co. Ltd. (H Shares) | 395,000 | | 1,861 |
Common Stocks - continued |
| Shares | | Value (000s) |
Curacao - 0.5% |
Schlumberger Ltd. | 158,000 | | $ 11,714 |
Denmark - 3.2% |
Danske Bank A/S (a) | 137,133 | | 2,227 |
Novo Nordisk A/S Series B | 381,208 | | 56,204 |
William Demant Holding A/S (a) | 108,835 | | 10,274 |
TOTAL DENMARK | | 68,705 |
Finland - 0.1% |
Nokian Tyres PLC | 46,300 | | 2,196 |
France - 7.3% |
Arkema SA | 52,600 | | 4,659 |
Atos Origin SA | 35,000 | | 2,254 |
AXA SA | 557,200 | | 7,893 |
BNP Paribas SA | 307,100 | | 12,338 |
Bureau Veritas SA | 74,100 | | 6,603 |
Danone SA | 120,700 | | 8,492 |
Edenred SA | 111,510 | | 3,562 |
Essilor International SA | 144,839 | | 12,758 |
JC Decaux SA | 128,200 | | 3,638 |
LVMH Moet Hennessy - Louis Vuitton SA (d) | 115,974 | | 19,214 |
PPR SA (d) | 159,400 | | 26,662 |
Publicis Groupe SA | 123,600 | | 6,375 |
Sanofi SA | 548,930 | | 41,931 |
TOTAL FRANCE | | 156,379 |
Germany - 6.8% |
adidas AG | 139,100 | | 11,601 |
Allianz AG | 93,617 | | 10,432 |
BASF AG (d) | 256,914 | | 21,151 |
Bayer AG (d) | 280,552 | | 19,762 |
Deutsche Boerse AG | 80,700 | | 5,067 |
Deutsche Post AG | 288,869 | | 5,392 |
ElringKlinger AG | 81,300 | | 2,354 |
Fresenius Medical Care AG & Co. KGaA | 138,900 | | 9,864 |
Fresenius SE | 130,800 | | 13,056 |
Kabel Deutschland Holding AG | 33,300 | | 2,098 |
Linde AG | 111,047 | | 19,008 |
SAP AG | 317,830 | | 21,078 |
Siemens AG | 57,235 | | 5,313 |
TOTAL GERMANY | | 146,176 |
Common Stocks - continued |
| Shares | | Value (000s) |
Hong Kong - 1.2% |
AIA Group Ltd. | 3,326,800 | | $ 11,834 |
China Mobile Ltd. sponsored ADR | 116,500 | | 6,447 |
Galaxy Entertainment Group Ltd. (a) | 815,000 | | 2,547 |
Henderson Land Development Co. Ltd. | 998,325 | | 5,687 |
TOTAL HONG KONG | | 26,515 |
India - 1.8% |
Axis Bank Ltd. | 154,359 | | 3,244 |
Bajaj Auto Ltd. | 77,063 | | 2,377 |
Cummins India Ltd. | 309,088 | | 2,831 |
Dr. Reddy's Laboratories Ltd. | 15,851 | | 531 |
HDFC Bank Ltd. | 1,169,785 | | 12,053 |
Housing Development Finance Corp. Ltd. | 602,905 | | 7,711 |
ITC Ltd. | 682,786 | | 3,183 |
Lupin Ltd. | 94,586 | | 992 |
Mahindra & Mahindra Financial Services Ltd. | 231,785 | | 3,047 |
Shriram Transport Finance Co. Ltd. | 201,979 | | 2,196 |
TOTAL INDIA | | 38,165 |
Ireland - 0.4% |
Accenture PLC Class A | 102,100 | | 6,631 |
Elan Corp. PLC sponsored ADR (a) | 164,100 | | 2,263 |
TOTAL IRELAND | | 8,894 |
Isle of Man - 0.0% |
3Legs Resources PLC | 645,100 | | 597 |
Italy - 2.1% |
ENI SpA | 275,600 | | 6,124 |
Fiat Industrial SpA | 1,562,300 | | 17,724 |
Prada SpA | 701,200 | | 4,763 |
Saipem SpA | 324,940 | | 16,053 |
TOTAL ITALY | | 44,664 |
Japan - 15.7% |
ABC-Mart, Inc. | 111,600 | | 4,064 |
Aeon Credit Service Co. Ltd. | 509,400 | | 8,881 |
Aozora Bank Ltd. | 1,525,000 | | 3,912 |
Calbee, Inc. (d) | 119,900 | | 7,256 |
Canon, Inc. | 45,400 | | 2,058 |
Cosmos Pharmaceutical Corp. | 151,100 | | 8,472 |
Denso Corp. | 133,000 | | 4,301 |
Dentsu, Inc. | 73,900 | | 2,269 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Don Quijote Co. Ltd. | 252,800 | | $ 9,273 |
Fanuc Corp. | 77,200 | | 13,021 |
Fast Retailing Co. Ltd. | 10,800 | | 2,414 |
Hitachi Ltd. | 4,517,000 | | 28,772 |
Honda Motor Co. Ltd. sponsored ADR | 725,306 | | 26,140 |
Hoya Corp. | 238,700 | | 5,475 |
Itochu Corp. | 1,186,600 | | 13,426 |
Japan Tobacco, Inc. | 5,297 | | 29,346 |
JSR Corp. | 464,500 | | 9,168 |
KDDI Corp. | 992 | | 6,494 |
Keyence Corp. | 66,100 | | 15,602 |
Mitsubishi UFJ Financial Group, Inc. | 1,900,000 | | 9,123 |
Nikon Corp. | 110,100 | | 3,263 |
Nippon Telegraph & Telephone Corp. | 94,400 | | 4,271 |
Nitto Denko Corp. | 56,600 | | 2,323 |
ORIX Corp. | 302,240 | | 28,899 |
Rakuten, Inc. | 23,901 | | 26,660 |
Seven & i Holdings Co., Ltd. | 430,000 | | 13,017 |
Seven Bank Ltd. | 1,121,800 | | 2,772 |
SHIMANO, Inc. | 103,800 | | 6,826 |
SMC Corp. | 69,900 | | 11,674 |
SOFTBANK CORP. | 336,800 | | 10,053 |
Sumitomo Mitsui Financial Group, Inc. | 131,900 | | 4,221 |
Toray Industries, Inc. | 423,000 | | 3,252 |
Unicharm Corp. | 79,000 | | 4,420 |
Yahoo! Japan Corp. | 15,024 | | 4,509 |
TOTAL JAPAN | | 335,627 |
Korea (South) - 2.4% |
Amorepacific Corp. | 4,423 | | 4,246 |
Hyundai Motor Co. | 27,035 | | 6,423 |
LG Household & Health Care Ltd. | 5,491 | | 2,881 |
Orion Corp. | 22,683 | | 18,024 |
Samsung Electronics Co. Ltd. | 16,654 | | 20,484 |
TOTAL KOREA (SOUTH) | | 52,058 |
Luxembourg - 0.3% |
Samsonite International SA | 3,334,500 | | 6,464 |
Mexico - 0.8% |
America Movil SAB de CV Series L sponsored ADR | 295,900 | | 7,886 |
Wal-Mart de Mexico SA de CV Series V | 2,922,900 | | 8,357 |
TOTAL MEXICO | | 16,243 |
Common Stocks - continued |
| Shares | | Value (000s) |
Netherlands - 1.7% |
AEGON NV | 2,504,000 | | $ 11,648 |
ASML Holding NV (Netherlands) (d) | 148,900 | | 7,577 |
Gemalto NV | 119,179 | | 8,881 |
NXP Semiconductors NV (a) | 150,200 | | 3,883 |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 140,900 | | 4,827 |
TOTAL NETHERLANDS | | 36,816 |
Norway - 1.4% |
DnB NOR ASA (d) | 350,799 | | 3,782 |
Storebrand ASA (A Shares) | 600,000 | | 2,697 |
Telenor ASA | 1,221,800 | | 22,462 |
TOTAL NORWAY | | 28,941 |
Qatar - 0.2% |
Commercial Bank of Qatar GDR (Reg. S) | 864,317 | | 3,418 |
South Africa - 0.8% |
Foschini Ltd. | 165,400 | | 2,739 |
Life Healthcare Group Holdings Ltd. | 641,500 | | 2,217 |
Naspers Ltd. Class N | 74,900 | | 4,511 |
Shoprite Holdings Ltd. | 255,500 | | 4,415 |
Tiger Brands Ltd. | 82,000 | | 3,005 |
TOTAL SOUTH AFRICA | | 16,887 |
Spain - 2.6% |
Banco Bilbao Vizcaya Argentaria SA | 707,207 | | 4,786 |
Banco Bilbao Vizcaya Argentaria SA rights 4/30/12 (a) | 707,162 | | 101 |
Grifols SA ADR (d) | 940,690 | | 8,899 |
Inditex SA (d) | 281,513 | | 25,323 |
Prosegur Compania de Seguridad SA (Reg.) | 167,986 | | 9,593 |
Repsol YPF SA | 305,893 | | 5,851 |
TOTAL SPAIN | | 54,553 |
Sweden - 0.9% |
H&M Hennes & Mauritz AB (B Shares) | 125,563 | | 4,314 |
Svenska Handelsbanken AB (A Shares) | 103,200 | | 3,344 |
Swedbank AB (A Shares) | 414,600 | | 6,866 |
Swedish Match Co. AB | 115,400 | | 4,691 |
TOTAL SWEDEN | | 19,215 |
Switzerland - 4.2% |
Clariant AG (Reg.) | 178,215 | | 2,266 |
Kuehne & Nagel International AG | 51,630 | | 6,275 |
Nestle SA | 531,289 | | 32,549 |
Common Stocks - continued |
| Shares | | Value (000s) |
Switzerland - continued |
Roche Holding AG (participation certificate) | 48,529 | | $ 8,866 |
SGS SA (Reg.) | 1,650 | | 3,187 |
Syngenta AG (Switzerland) | 37,300 | | 13,082 |
UBS AG | 1,130,550 | | 14,120 |
Zurich Financial Services AG | 37,441 | | 9,159 |
TOTAL SWITZERLAND | | 89,504 |
Taiwan - 0.9% |
HIWIN Technologies Corp. | 223,000 | | 2,119 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,142,600 | | 17,802 |
TOTAL TAIWAN | | 19,921 |
United Kingdom - 17.9% |
Aegis Group PLC | 1,675,600 | | 4,833 |
Aggreko PLC | 45,000 | | 1,644 |
Anglo American PLC (United Kingdom) | 268,600 | | 10,324 |
Barclays PLC | 4,201,124 | | 14,875 |
BG Group PLC | 862,392 | | 20,303 |
British American Tobacco PLC sponsored ADR | 171,500 | | 17,651 |
Burberry Group PLC | 354,800 | | 8,552 |
Capita Group PLC | 590,000 | | 6,349 |
Compass Group PLC | 213,400 | | 2,231 |
Diageo PLC | 168,843 | | 4,259 |
Domino Printing Sciences PLC | 229,900 | | 2,235 |
Filtrona PLC | 658,900 | | 4,967 |
GlaxoSmithKline PLC | 1,444,700 | | 33,379 |
Hikma Pharmaceuticals PLC | 192,188 | | 1,959 |
HSBC Holdings PLC sponsored ADR | 650,700 | | 29,392 |
Imperial Tobacco Group PLC | 282,905 | | 11,314 |
Inchcape PLC | 1,245,692 | | 7,398 |
Intertek Group PLC | 234,300 | | 9,564 |
ITV PLC | 3,103,700 | | 4,216 |
Meggitt PLC | 748,900 | | 4,965 |
National Grid PLC | 217,000 | | 2,344 |
Next PLC | 323,500 | | 15,379 |
Ocado Group PLC (a)(d) | 531,200 | | 1,119 |
Pearson PLC | 296,500 | | 5,586 |
Pz Cussons PLC Class L | 250,100 | | 1,349 |
Reckitt Benckiser Group PLC | 387,413 | | 22,555 |
Rolls-Royce Group PLC | 1,411,300 | | 18,864 |
Royal Dutch Shell PLC Class B | 1,808,432 | | 66,189 |
Standard Chartered PLC (United Kingdom) | 266,827 | | 6,522 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Taylor Wimpey PLC | 2,688,800 | | $ 2,193 |
Travis Perkins PLC | 126,400 | | 2,154 |
Vodafone Group PLC sponsored ADR | 1,363,300 | | 37,941 |
TOTAL UNITED KINGDOM | | 382,605 |
United States of America - 4.5% |
Apple, Inc. (a) | 34,700 | | 20,273 |
Beam, Inc. | 55,600 | | 3,157 |
Citigroup, Inc. | 423,280 | | 13,985 |
Cobalt International Energy, Inc. (a) | 41,100 | | 1,100 |
Cognizant Technology Solutions Corp. Class A (a) | 66,700 | | 4,890 |
Dolby Laboratories, Inc. Class A (a) | 55,900 | | 2,193 |
Facebook, Inc. Class B (f) | 131,847 | | 4,057 |
JPMorgan Chase & Co. | 197,202 | | 8,476 |
MasterCard, Inc. Class A | 9,940 | | 4,496 |
Motorola Solutions, Inc. | 47,000 | | 2,398 |
Newmont Mining Corp. | 62,400 | | 2,973 |
Noble Energy, Inc. | 75,600 | | 7,509 |
Polycom, Inc. (a) | 275,000 | | 3,649 |
PriceSmart, Inc. | 4,200 | | 347 |
SanDisk Corp. (a) | 176,100 | | 6,517 |
Schweitzer-Mauduit International, Inc. | 41,345 | | 2,804 |
Splunk, Inc. | 46,700 | | 1,585 |
ViroPharma, Inc. (a) | 107,100 | | 2,329 |
Yum! Brands, Inc. | 31,400 | | 2,284 |
TOTAL UNITED STATES OF AMERICA | | 95,022 |
TOTAL COMMON STOCKS (Cost $1,788,741) |
2,013,854
|
Nonconvertible Preferred Stocks - 1.3% |
| | | |
Germany - 1.3% |
ProSiebenSat.1 Media AG | 256,500 | | 6,513 |
Volkswagen AG (d) | 111,000 | | 21,027 |
TOTAL GERMANY | | 27,540 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC Class C | 149,597,800 | | 243 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $16,514) |
27,783
|
Master Notes - 0.0% |
| Principal
Amount (000s) | | Value (000s) |
Canada - 0.0% |
OZ Optics Ltd. 5% 11/5/14 (f)
(Cost $15) | | $ 14 | | $ 14 |
Money Market Funds - 13.6% |
| Shares | | |
Fidelity Cash Central Fund, 0.14% (b) | 74,884,868 | | 74,885 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 214,876,848 | | 214,877 |
TOTAL MONEY MARKET FUNDS (Cost $289,762) |
289,762
|
TOTAL INVESTMENT PORTFOLIO - 109.2% (Cost $2,095,032) | | 2,331,413 |
NET OTHER ASSETS (LIABILITIES) - (9.2)% | | (197,093) |
NET ASSETS - 100% | $ 2,134,320 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 $1,379,000 or 0.1% of net assets. |
(f) 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 $4,071,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition
Date | Acquisition
Cost (000s) |
Facebook, Inc. Class B | 3/31/11 | $ 3,296 |
OZ Optics Ltd. 5% 11/5/14 | 11/5/10 | $ 15 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 25 |
Fidelity Securities Lending Cash Central Fund | 455 |
Total | $ 480 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 345,028 | $ 269,079 | $ 75,949 | $ - |
Consumer Staples | 273,647 | 202,050 | 71,597 | - |
Energy | 191,900 | 119,587 | 72,313 | - |
Financials | 318,401 | 203,111 | 115,290 | - |
Health Care | 228,312 | 83,375 | 144,937 | - |
Industrials | 167,090 | 123,656 | 43,434 | - |
Information Technology | 225,485 | 143,934 | 77,494 | 4,057 |
Materials | 184,377 | 156,552 | 27,825 | - |
Telecommunication Services | 99,823 | 79,005 | 20,818 | - |
Utilities | 7,574 | 5,230 | 2,344 | - |
Master Notes | 14 | - | - | 14 |
Money Market Funds | 289,762 | 289,762 | - | - |
Total Investments in Securities: | $ 2,331,413 | $ 1,675,341 | $ 652,001 | $ 4,071 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $ 3,310 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 761 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,071 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2012 | $ 761 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $202,097) - See accompanying schedule: Unaffiliated issuers (cost $1,805,270) | $ 2,041,651 | |
Fidelity Central Funds (cost $289,762) | 289,762 | |
Total Investments (cost $2,095,032) | | $ 2,331,413 |
Foreign currency held at value (cost $440) | | 439 |
Receivable for investments sold | | 22,105 |
Receivable for fund shares sold | | 2,083 |
Dividends receivable | | 10,162 |
Interest receivable | | 1 |
Distributions receivable from Fidelity Central Funds | | 327 |
Prepaid expenses | | 2 |
Other receivables | | 237 |
Total assets | | 2,366,769 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,347 | |
Payable for fund shares redeemed | 7,216 | |
Accrued management fee | 1,257 | |
Distribution and service plan fees payable | 606 | |
Other affiliated payables | 565 | |
Other payables and accrued expenses | 2,581 | |
Collateral on securities loaned, at value | 214,877 | |
Total liabilities | | 232,449 |
| | |
Net Assets | | $ 2,134,320 |
Net Assets consist of: | | |
Paid in capital | | $ 4,922,228 |
Undistributed net investment income | | 8,454 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,030,472) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 234,110 |
Net Assets | | $ 2,134,320 |
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, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($819,013 ÷ 53,952 shares) | | $ 15.18 |
| | |
Maximum offering price per share (100/94.25 of $15.18) | | $ 16.11 |
Class T:
Net Asset Value and redemption price per share ($343,087 ÷ 22,772 shares) | | $ 15.07 |
| | |
Maximum offering price per share (100/96.50 of $15.07) | | $ 15.62 |
Class B:
Net Asset Value and offering price per share ($74,631 ÷ 5,120 shares)A | | $ 14.58 |
| | |
Class C:
Net Asset Value and offering price per share ($271,106 ÷ 18,582 shares)A | | $ 14.59 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($626,483 ÷ 40,642 shares) | | $ 15.41 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 26,677 |
Income from Fidelity Central Funds | | 480 |
Income before foreign taxes withheld | | 27,157 |
Less foreign taxes withheld | | (1,755) |
Total income | | 25,402 |
| | |
Expenses | | |
Management fee | $ 7,801 | |
Transfer agent fees | 2,989 | |
Distribution and service plan fees | 3,776 | |
Accounting and security lending fees | 489 | |
Custodian fees and expenses | 153 | |
Independent trustees' compensation | 7 | |
Registration fees | 98 | |
Audit | 45 | |
Legal | 5 | |
Miscellaneous | 11 | |
Total expenses before reductions | 15,374 | |
Expense reductions | (169) | 15,205 |
Net investment income (loss) | | 10,197 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 24,766 | |
Foreign currency transactions | (314) | |
Total net realized gain (loss) | | 24,452 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 70,174 | |
Assets and liabilities in foreign currencies | 103 | |
Total change in net unrealized appreciation (depreciation) | | 70,277 |
Net gain (loss) | | 94,729 |
Net increase (decrease) in net assets resulting from operations | | $ 104,926 |
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
April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 10,197 | $ 43,005 |
Net realized gain (loss) | 24,452 | 251,468 |
Change in net unrealized appreciation (depreciation) | 70,277 | (392,112) |
Net increase (decrease) in net assets resulting
from operations | 104,926 | (97,639) |
Distributions to shareholders from net investment income | (28,136) | (45,397) |
Distributions to shareholders from net realized gain | - | (8,026) |
Total distributions | (28,136) | (53,423) |
Share transactions - net increase (decrease) | (381,064) | (1,225,390) |
Redemption fees | 20 | 65 |
Total increase (decrease) in net assets | (304,254) | (1,376,387) |
| | |
Net Assets | | |
Beginning of period | 2,438,574 | 3,814,961 |
End of period (including undistributed net investment income of $8,454 and undistributed net investment income of $26,393, respectively) | $ 2,134,320 | $ 2,438,574 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.61 | $ 15.63 | $ 14.25 | $ 12.57 | $ 26.62 | $ 23.42 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 | .22 H | .14 | .17 | .36 | .31 |
Net realized and unrealized gain (loss) | .69 | (1.01) | 1.44 | 1.96 | (11.15) | 4.69 |
Total from investment operations | .76 | (.79) | 1.58 | 2.13 | (10.79) | 5.00 |
Distributions from net investment income | (.19) | (.20) | (.19) | (.45) | (.24) | (.23) |
Distributions from net realized gain | - | (.03) | (.01) | - | (3.02) | (1.57) |
Total distributions | (.19) | (.23) | (.20) | (.45) | (3.26) | (1.80) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.18 | $ 14.61 | $ 15.63 | $ 14.25 | $ 12.57 | $ 26.62 |
Total Return B, C, D | 5.34% | (5.15)% | 11.17% | 18.16% | (45.95)% | 22.76% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.32% A | 1.31% | 1.32% | 1.34% | 1.26% | 1.25% |
Expenses net of fee waivers, if any | 1.32% A | 1.31% | 1.32% | 1.34% | 1.26% | 1.25% |
Expenses net of all reductions | 1.31% A | 1.29% | 1.30% | 1.31% | 1.22% | 1.21% |
Net investment income (loss) | 1.00% A | 1.38% H | .95% | 1.43% | 1.80% | 1.26% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 819 | $ 916 | $ 1,302 | $ 1,662 | $ 2,004 | $ 5,774 |
Portfolio turnover rate G | 34% A | 48% | 59% | 92% | 88% | 105% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .98%. 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 T
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.46 | $ 15.47 | $ 14.11 | $ 12.42 | $ 26.30 | $ 23.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .18 H | .10 | .14 | .31 | .25 |
Net realized and unrealized gain (loss) | .70 | (.99) | 1.43 | 1.94 | (11.01) | 4.63 |
Total from investment operations | .75 | (.81) | 1.53 | 2.08 | (10.70) | 4.88 |
Distributions from net investment income | (.14) | (.16) | (.16) | (.39) | (.16) | (.18) |
Distributions from net realized gain | - | (.03) | (.01) | - | (3.02) | (1.57) |
Total distributions | (.14) | (.20) K | (.17) | (.39) | (3.18) | (1.75) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.07 | $ 14.46 | $ 15.47 | $ 14.11 | $ 12.42 | $ 26.30 |
Total Return B, C, D | 5.24% | (5.35)% | 10.88% | 17.84% | (46.04)% | 22.43% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.58% A | 1.55% | 1.55% | 1.58% | 1.49% | 1.47% |
Expenses net of fee waivers, if any | 1.58% A | 1.55% | 1.55% | 1.58% | 1.49% | 1.47% |
Expenses net of all reductions | 1.56% A | 1.53% | 1.53% | 1.55% | 1.44% | 1.43% |
Net investment income (loss) | .74% A | 1.14% H | .71% | 1.19% | 1.57% | 1.04% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 343 | $ 404 | $ 621 | $ 832 | $ 1,110 | $ 3,569 |
Portfolio turnover rate G | 34% A | 48% | 59% | 92% | 88% | 105% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .74%. 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. K Total distributions of $.20 per share is comprised of distributions from net investment income of $.164 and distributions from net realized gain of $.034 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.91 | $ 14.91 | $ 13.61 | $ 11.95 | $ 25.44 | $ 22.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .09 H | .02 | .08 | .18 | .10 |
Net realized and unrealized gain (loss) | .67 | (.96) | 1.38 | 1.88 | (10.62) | 4.50 |
Total from investment operations | .69 | (.87) | 1.40 | 1.96 | (10.44) | 4.60 |
Distributions from net investment income | (.02) | (.10) | (.09) | (.30) | (.03) | (.05) |
Distributions from net realized gain | - | (.03) | (.01) | - | (3.02) | (1.57) |
Total distributions | (.02) | (.13) | (.10) | (.30) | (3.05) | (1.62) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.58 | $ 13.91 | $ 14.91 | $ 13.61 | $ 11.95 | $ 25.44 |
Total Return B, C, D | 4.98% | (5.89)% | 10.34% | 17.25% | (46.39)% | 21.73% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.08% A | 2.08% | 2.09% | 2.10% | 2.08% | 2.08% |
Expenses net of fee waivers, if any | 2.08% A | 2.08% | 2.09% | 2.10% | 2.08% | 2.08% |
Expenses net of all reductions | 2.07% A | 2.06% | 2.07% | 2.07% | 2.04% | 2.04% |
Net investment income (loss) | .24% A | .61% H | .18% | .67% | .97% | .42% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 75 | $ 94 | $ 157 | $ 191 | $ 221 | $ 559 |
Portfolio turnover rate G | 34% A | 48% | 59% | 92% | 88% | 105% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .21%. 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
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.95 | $ 14.95 | $ 13.65 | $ 11.98 | $ 25.50 | $ 22.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .10 H | .03 | .08 | .20 | .12 |
Net realized and unrealized gain (loss) | .67 | (.96) | 1.38 | 1.89 | (10.64) | 4.50 |
Total from investment operations | .69 | (.86) | 1.41 | 1.97 | (10.44) | 4.62 |
Distributions from net investment income | (.05) | (.11) | (.10) | (.30) | (.06) | (.08) |
Distributions from net realized gain | - | (.03) | (.01) | - | (3.02) | (1.57) |
Total distributions | (.05) | (.14) | (.11) | (.30) | (3.08) | (1.65) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.59 | $ 13.95 | $ 14.95 | $ 13.65 | $ 11.98 | $ 25.50 |
Total Return B, C, D | 4.98% | (5.83)% | 10.32% | 17.24% | (46.33)% | 21.81% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.06% A | 2.05% | 2.06% | 2.09% | 2.01% | 2.00% |
Expenses net of fee waivers, if any | 2.06% A | 2.05% | 2.06% | 2.09% | 2.01% | 2.00% |
Expenses net of all reductions | 2.05% A | 2.03% | 2.04% | 2.06% | 1.97% | 1.96% |
Net investment income (loss) | .26% A | .64% H | .21% | .68% | 1.04% | .51% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 271 | $ 302 | $ 419 | $ 502 | $ 618 | $ 1,673 |
Portfolio turnover rate G | 34% A | 48% | 59% | 92% | 88% | 105% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%. 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
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.87 | $ 15.90 | $ 14.48 | $ 12.81 | $ 27.06 | $ 23.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .10 | .28 G | .19 | .21 | .41 | .38 |
Net realized and unrealized gain (loss) | .69 | (1.03) | 1.47 | 1.98 | (11.34) | 4.76 |
Total from investment operations | .79 | (.75) | 1.66 | 2.19 | (10.93) | 5.14 |
Distributions from net investment income | (.25) | (.25) | (.23) | (.52) | (.30) | (.29) |
Distributions from net realized gain | - | (.03) | (.01) | - | (3.02) | (1.57) |
Total distributions | (.25) | (.28) | (.24) | (.52) | (3.32) | (1.86) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.41 | $ 14.87 | $ 15.90 | $ 14.48 | $ 12.81 | $ 27.06 |
Total Return B, C | 5.47% | (4.85)% | 11.55% | 18.45% | (45.79)% | 23.07% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | 1.00% A | .99% | .99% | 1.07% | .99% | .98% |
Expenses net of fee waivers, if any | 1.00% A | .99% | .99% | 1.07% | .99% | .98% |
Expenses net of all reductions | .99% A | .97% | .97% | 1.04% | .94% | .94% |
Net investment income (loss) | 1.32% A | 1.70% G | 1.28% | 1.70% | 2.07% | 1.53% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 626 | $ 723 | $ 1,316 | $ 1,540 | $ 2,235 | $ 5,266 |
Portfolio turnover rate F | 34% A | 48% | 59% | 92% | 88% | 105% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.30%. 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 $.01 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, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Diversified International Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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 the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security 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 value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 2 in the hierarchy. For foreign equity securities, when significant 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 are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For master notes, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
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 rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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
Semiannual Report
3. Significant Accounting Policies - continued
Deferred Trustee Compensation - continued
marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees 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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), deferred trustee 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 | $ 367,811 |
Gross unrealized depreciation | (148,588) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 219,223 |
| |
Tax cost | $ 2,112,190 |
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. At October 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (3,034,664) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value 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.
4. Operating Policies.
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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $372,637 and $807,783, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 1,055 | $ 19 |
Class T | .25% | .25% | 912 | 5 |
Class B | .75% | .25% | 418 | 314 |
Class C | .75% | .25% | 1,391 | 49 |
| | | $ 3,776 | $ 387 |
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, 1.00% for Class C, 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
by FDC |
Class A | $ 65 |
Class T | 19 |
Class B* | 67 |
Class C* | 5 |
| $ 156 |
* 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 FMR, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 1,231 | .29 |
Class T | 542 | .30 |
Class B | 127 | .30 |
Class C | 390 | .28 |
Institutional Class | 699 | .22 |
| $ 2,989 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $2 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
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
Semiannual Report
8. Security Lending - continued
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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 $455. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $169 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net investment income | | |
Class A | $ 11,830 | $ 15,976 |
Class T | 3,677 | 6,296 |
Class B | 137 | 993 |
Class C | 1,044 | 2,886 |
Institutional Class | 11,448 | 19,246 |
Total | $ 28,136 | $ 45,397 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Distributions to Shareholders - continued
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net realized gain | | |
Class A | $ - | $ 2,738 |
Class T | - | 1,311 |
Class B | - | 343 |
Class C | - | 927 |
Institutional Class | - | 2,707 |
Total | $ - | $ 8,026 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 3,454 | 9,002 | $ 50,381 | $ 142,807 |
Reinvestment of distributions | 768 | 1,034 | 10,735 | 16,424 |
Shares redeemed | (12,944) | (30,677) | (186,723) | (486,880) |
Net increase (decrease) | (8,722) | (20,641) | $ (125,607) | $ (327,649) |
Class T | | | | |
Shares sold | 1,030 | 2,789 | $ 14,822 | $ 43,918 |
Reinvestment of distributions | 246 | 447 | 3,415 | 7,039 |
Shares redeemed | (6,444) | (15,458) | (92,458) | (243,511) |
Net increase (decrease) | (5,168) | (12,222) | $ (74,221) | $ (192,554) |
Class B | | | | |
Shares sold | 14 | 58 | $ 201 | $ 888 |
Reinvestment of distributions | 9 | 75 | 118 | 1,145 |
Shares redeemed | (1,625) | (3,940) | (22,818) | (60,055) |
Net increase (decrease) | (1,602) | (3,807) | $ (22,499) | $ (58,022) |
Class C | | | | |
Shares sold | 432 | 1,225 | $ 6,008 | $ 18,824 |
Reinvestment of distributions | 60 | 191 | 813 | 2,917 |
Shares redeemed | (3,550) | (7,773) | (49,214) | (118,247) |
Net increase (decrease) | (3,058) | (6,357) | $ (42,393) | $ (96,506) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Institutional Class | | | | |
Shares sold | 5,072 | 10,009 | $ 74,037 | $ 160,916 |
Reinvestment of distributions | 640 | 1,047 | 9,062 | 16,863 |
Shares redeemed | (13,718) | (45,174) | (199,443) | (728,438) |
Net increase (decrease) | (8,006) | (34,118) | $ (116,344) | $ (550,659) |
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.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
ADIFI-USAN-0612
1.784872.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Asia
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,058.50 | $ 7.27 |
HypotheticalA | | $ 1,000.00 | $ 1,017.80 | $ 7.12 |
Class T | 1.71% | | | |
Actual | | $ 1,000.00 | $ 1,057.00 | $ 8.75 |
HypotheticalA | | $ 1,000.00 | $ 1,016.36 | $ 8.57 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,054.30 | $ 11.24 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Class C | 2.16% | | | |
Actual | | $ 1,000.00 | $ 1,054.50 | $ 11.03 |
HypotheticalA | | $ 1,000.00 | $ 1,014.12 | $ 10.82 |
Institutional Class | 1.11% | | | |
Actual | | $ 1,000.00 | $ 1,059.90 | $ 5.68 |
HypotheticalA | | $ 1,000.00 | $ 1,019.34 | $ 5.57 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. | 7.3 | 5.7 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 4.1 | 3.9 |
China Mobile Ltd. | 2.9 | 3.3 |
China Construction Bank Corp. (H Shares) | 2.3 | 2.3 |
CNOOC Ltd. | 2.1 | 2.6 |
Hyundai Motor Co. | 1.9 | 0.7 |
China Petroleum & Chemical Corp. (H Shares) | 1.9 | 1.0 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 1.8 | 1.8 |
AIA Group Ltd. | 1.7 | 1.5 |
Power Assets Holdings Ltd. | 1.4 | 1.9 |
| 27.4 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 28.0 | 29.3 |
Information Technology | 21.0 | 17.3 |
Industrials | 9.0 | 10.3 |
Consumer Discretionary | 8.7 | 10.3 |
Telecommunication Services | 7.7 | 6.8 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 97.2% | | | Stocks 98.7% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 2.8% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 1.3% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value |
Australia - 0.4% |
Origin Energy Ltd. | 61,798 | | $ 853,735 |
Spark Infrastructure Group unit | 347,458 | | 524,899 |
TOTAL AUSTRALIA | | 1,378,634 |
Bermuda - 1.1% |
Cheung Kong Infrastructure Holdings Ltd. | 238,000 | | 1,412,604 |
Giordano International Ltd. | 732,000 | | 638,725 |
Jardine Matheson Holdings Ltd. | 16,400 | | 814,260 |
Kunlun Energy Co. Ltd. | 592,000 | | 1,043,810 |
Man Wah Holdings Ltd. | 510,000 | | 265,562 |
TOTAL BERMUDA | | 4,174,961 |
Cayman Islands - 3.3% |
AirMedia Group, Inc. ADR (a) | 122,200 | | 348,270 |
ASM Pacific Technology Ltd. | 89,300 | | 1,209,673 |
Baidu.com, Inc. sponsored ADR (a) | 7,500 | | 995,250 |
Bosideng International Holdings Ltd. | 1,470,000 | | 424,404 |
Changyou.com Ltd. (A Shares) ADR (a) | 12,000 | | 290,640 |
China Lodging Group Ltd. ADR (a) | 29,900 | | 380,627 |
China Metal Recycling (Holdings) Ltd. | 1,020,600 | | 1,170,737 |
Country Garden Holdings Co. Ltd. | 2,602,000 | | 1,130,189 |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 5,900 | | 140,184 |
International Taifeng Holdings Ltd. | 1,456,000 | | 450,388 |
Kingboard Laminates Holdings Ltd. | 329,000 | | 153,504 |
LDK Solar Co. Ltd. sponsored ADR (a)(d) | 29,200 | | 92,856 |
Lee & Man Paper Manufacturing Ltd. | 1,429,000 | | 670,421 |
Microport Scientific Corp. | 506,000 | | 238,696 |
NVC Lighting Holdings Ltd. | 190,000 | | 69,058 |
Qihoo 360 Technology Co. Ltd. ADR (a)(d) | 17,000 | | 417,690 |
Samson Holding Ltd. | 940,000 | | 124,790 |
Sands China Ltd. | 585,200 | | 2,300,478 |
SOHO China Ltd. | 1,534,500 | | 1,192,609 |
Spreadtrum Communications, Inc. ADR (d) | 23,200 | | 320,160 |
Youyuan International Holdings Ltd. | 1,946,000 | | 484,077 |
TOTAL CAYMAN ISLANDS | | 12,604,701 |
China - 14.0% |
Agricultural Bank China Ltd. (H Shares) | 4,254,000 | | 2,023,195 |
Angang Steel Co. Ltd. (H Shares) | 552,000 | | 377,787 |
China CITIC Bank Corp. Ltd. (H Shares) | 4,065,000 | | 2,588,221 |
China Communications Construction Co. Ltd. (H Shares) | 3,724,000 | | 3,743,847 |
China Communications Services Corp. Ltd. (H Shares) | 5,462,000 | | 2,808,914 |
China Construction Bank Corp. (H Shares) | 11,546,000 | | 8,988,399 |
Common Stocks - continued |
| Shares | | Value |
China - continued |
China Eastern Airlines Corp. Ltd. (H Shares) (a) | 1,874,000 | | $ 625,580 |
China Merchants Bank Co. Ltd. (H Shares) | 1,456,000 | | 3,160,220 |
China Minsheng Banking Corp. Ltd. (H Shares) | 4,101,500 | | 4,255,518 |
China Pacific Insurance Group Co. Ltd. (H Shares) | 535,800 | | 1,750,631 |
China Petroleum & Chemical Corp. (H Shares) | 6,842,000 | | 7,266,963 |
China Ship Container Lines Co. Ltd. (H Shares) (a) | 1,841,000 | | 600,327 |
China Southern Airlines Ltd. (H Shares) (a) | 3,542,000 | | 1,593,264 |
China Suntien Green Energy Corp. Ltd. (H Shares) | 838,000 | | 163,093 |
Dongfeng Motor Group Co. Ltd. (H Shares) | 1,300,000 | | 2,563,590 |
Harbin Power Equipment Co. Ltd. (H Shares) | 1,478,000 | | 1,541,121 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 10,594,000 | | 7,072,999 |
Metallurgical Corp. China Ltd. (H Shares) | 1,804,000 | | 402,250 |
Shanghai Jin Jiang International Hotel Co. Ltd. (H Shares) | 2,656,000 | | 390,253 |
Sinopec Shanghai Petrochemical Co. Ltd. (H Shares) | 2,940,000 | | 1,023,116 |
Weichai Power Co. Ltd. (H Shares) | 128,000 | | 602,992 |
TOTAL CHINA | | 53,542,280 |
Hong Kong - 15.5% |
AIA Group Ltd. | 1,826,400 | | 6,497,089 |
BYD Electronic International Co. Ltd. (a) | 547,500 | | 165,125 |
Cathay Pacific Airways Ltd. | 1,573,000 | | 2,668,078 |
China Insurance International Holdings Co. Ltd. (a) | 716,200 | | 1,493,574 |
China Mobile Ltd. | 1,003,500 | | 11,102,246 |
China Unicom Ltd. | 1,568,000 | | 2,742,396 |
Citic Pacific Ltd. | 930,000 | | 1,531,890 |
CNOOC Ltd. | 3,844,500 | | 8,124,000 |
Henderson Land Development Co. Ltd. | 287,000 | | 1,635,001 |
HKT Trust / HKT Ltd. unit | 711,942 | | 553,319 |
Lenovo Group Ltd. | 2,616,000 | | 2,515,304 |
New World Development Co. Ltd. | 2,938,838 | | 3,662,823 |
PCCW Ltd. | 7,844,000 | | 2,921,792 |
Power Assets Holdings Ltd. | 727,500 | | 5,438,446 |
Sino-Ocean Land Holdings Ltd. | 1,045,500 | | 487,805 |
Sinotruk Hong Kong Ltd. | 2,905,500 | | 1,771,315 |
Sun Hung Kai Properties Ltd. | 444,000 | | 5,356,396 |
Techtronic Industries Co. Ltd. | 342,000 | | 413,028 |
TOTAL HONG KONG | | 59,079,627 |
India - 7.6% |
Aditya Birla Nuvo Ltd. | 24,656 | | 434,084 |
Apollo Tyres Ltd. | 567,802 | | 974,638 |
Axis Bank Ltd. | 131,200 | | 2,757,654 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Canara Bank | 195,600 | | $ 1,621,551 |
Chennai Petroleum Corp. Ltd. | 42,318 | | 120,690 |
Deccan Chronicle Holdings Ltd. (a) | 367,274 | | 278,602 |
Dena Bank | 289,157 | | 511,440 |
Exide Industries Ltd. | 144,079 | | 353,734 |
Gateway Distriparks Ltd. | 178,612 | | 512,791 |
Grasim Industries Ltd. | 40,319 | | 2,104,962 |
HCL Infosystems Ltd. | 344,917 | | 292,097 |
Hindalco Industries Ltd. | 643,053 | | 1,474,388 |
Hindustan Unilever Ltd. | 246,359 | | 1,953,470 |
Housing Development and Infrastructure Ltd. (a) | 129,674 | | 198,334 |
ICSA (India) Ltd. | 186,602 | | 66,258 |
Indian Overseas Bank | 467,582 | | 775,086 |
Ipca Laboratories Ltd. | 60,133 | | 412,704 |
Jubilant Industries Ltd. | 5,873 | | 29,914 |
Jubilant Life Sciences Ltd. | 101,017 | | 347,273 |
NIIT Technologies Ltd. | 77,144 | | 382,095 |
Page Industries Ltd. | 3,278 | | 194,707 |
Piramal Healthcare Ltd. | 82,535 | | 686,342 |
Polaris Financial Technology Ltd. | 100,621 | | 250,669 |
Ranbaxy Laboratories Ltd. | 60,542 | | 578,118 |
Reliance Infrastructure Ltd. | 37,973 | | 380,487 |
Rolta India Ltd. | 202,090 | | 335,953 |
SREI Infrastructure Finance Ltd. | 1,190,428 | | 582,047 |
Strides Arcolab Ltd. | 28,646 | | 365,982 |
Syndicate Bank | 176,416 | | 348,712 |
Tata Chemicals Ltd. | 46,187 | | 294,890 |
Tata Consultancy Services Ltd. | 170,307 | | 4,031,230 |
Tata Motors Ltd. Class A | 975,219 | | 3,349,798 |
Tata Steel Ltd. | 190,208 | | 1,674,546 |
Tech Mahindra Ltd. | 31,238 | | 416,240 |
TOTAL INDIA | | 29,091,486 |
Indonesia - 5.4% |
PT Astra International Tbk | 437,500 | | 3,379,849 |
PT Bank Mandiri (Persero) Tbk | 3,565,500 | | 2,870,866 |
PT Bank Rakyat Indonesia Tbk | 6,129,000 | | 4,434,780 |
PT BISI International Tbk | 1,735,500 | | 158,622 |
PT Global Mediacom Tbk | 3,804,000 | | 687,083 |
PT Gudang Garam Tbk | 228,500 | | 1,471,868 |
PT Indosat Tbk | 567,000 | | 299,217 |
PT Media Nusantara Citra Tbk | 697,500 | | 170,761 |
Common Stocks - continued |
| Shares | | Value |
Indonesia - continued |
PT Telkomunikasi Indonesia Tbk Series B | 3,018,000 | | $ 2,782,798 |
PT Tower Bersama Infrastructure Tbk | 1,977,000 | | 656,096 |
PT Unilever Indonesia Tbk | 782,500 | | 1,690,074 |
PT United Tractors Tbk | 505,000 | | 1,626,462 |
PT XL Axiata Tbk | 700,500 | | 411,588 |
TOTAL INDONESIA | | 20,640,064 |
Korea (South) - 23.1% |
BS Financial Group, Inc. | 323,780 | | 3,337,717 |
Cheil Worldwide, Inc. | 67,400 | | 1,174,897 |
Chong Kun Dang Pharmaceutical Corp. | 29,390 | | 413,495 |
CJ CheilJedang Corp. | 9,381 | | 3,104,519 |
Daewoo Securities Co. Ltd. | 49,470 | | 503,400 |
DGB Financial Group Co. Ltd. | 86,140 | | 1,009,937 |
Dongbu Insurance Co. Ltd. | 38,130 | | 1,525,032 |
Doosan Co. Ltd. | 12,803 | | 1,563,380 |
Hana Financial Group, Inc. | 129,540 | | 4,453,162 |
Hanjin Shipping Co. Ltd. | 25,530 | | 351,281 |
Hotel Shilla Co. | 22,750 | | 1,064,904 |
Hyundai Department Store Co. Ltd. | 16,060 | | 2,266,626 |
Hyundai Fire & Marine Insurance Co. Ltd. | 20,500 | | 526,048 |
Hyundai Heavy Industries Co. Ltd. | 8,852 | | 2,216,672 |
Hyundai Merchant Marine Co. Ltd. | 19,350 | | 492,258 |
Hyundai Motor Co. | 30,658 | | 7,283,862 |
ICD Co. Ltd. | 16,032 | | 325,570 |
Industrial Bank of Korea | 92,000 | | 1,017,587 |
Korea Electric Power Corp. (a) | 89,840 | | 1,723,488 |
Korean Air Lines Co. Ltd. | 12,661 | | 498,542 |
LG International Corp. | 31,874 | | 1,305,844 |
LIG Non-Life Insurance Co. Ltd. | 16,970 | | 352,877 |
Lotte Samkang Co. Ltd. | 2,877 | | 1,227,045 |
Lotte Shopping Co. Ltd. | 4,256 | | 1,321,850 |
Nong Shim Co. Ltd. | 2,179 | | 436,716 |
OCI Co. Ltd. | 5,824 | | 1,102,830 |
Orion Corp. | 1,455 | | 1,156,147 |
Poongsan Corp. | 9,966 | | 265,437 |
POSCO | 15,656 | | 5,186,497 |
Samsung Electronics Co. Ltd. | 22,716 | | 27,939,597 |
Samsung Fire & Marine Insurance Co. Ltd. | 17,703 | | 3,383,563 |
Samsung Heavy Industries Ltd. | 107,320 | | 3,959,955 |
SK Chemicals Co. Ltd. | 30,094 | | 1,499,208 |
SK Energy Co. Ltd. | 16,413 | | 2,294,662 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
SK Holdings Co. Ltd. | 8,540 | | $ 918,138 |
Sungwoo Hitech Co. Ltd. | 78,679 | | 887,652 |
TOTAL KOREA (SOUTH) | | 88,090,395 |
Malaysia - 0.5% |
Genting Malaysia Bhd | 1,181,600 | | 1,499,701 |
Glomac Bhd | 1,577,300 | | 435,315 |
TOTAL MALAYSIA | | 1,935,016 |
Mauritius - 0.4% |
Golden Agri-Resources Ltd. | 2,385,000 | | 1,416,374 |
Philippines - 1.0% |
BDO Unibank, Inc. | 754,780 | | 1,185,022 |
Globe Telecom, Inc. | 20,970 | | 558,006 |
Manila Water Co., Inc. | 2,163,800 | | 1,267,541 |
PUREGOLD Price Club, Inc. | 436,600 | | 250,580 |
Security Bank Corp. | 137,240 | | 465,441 |
TOTAL PHILIPPINES | | 3,726,590 |
Singapore - 4.7% |
Avago Technologies Ltd. | 29,400 | | 1,013,712 |
CapitaMall Trust | 1,111,000 | | 1,615,804 |
China Minzhong Food Corp. Ltd. (a) | 233,000 | | 158,138 |
City Developments Ltd. | 270,000 | | 2,212,096 |
DBS Group Holdings Ltd. | 327,000 | | 3,688,377 |
First Resources Ltd. | 786,000 | | 1,193,940 |
Keppel Corp. Ltd. | 403,600 | | 3,603,426 |
Mapletree Industrial (REIT) | 433,000 | | 395,338 |
Mapletree Logistics Trust (REIT) | 1,313,000 | | 1,039,664 |
Olam International Ltd. | 622,000 | | 1,140,823 |
UOL Group Ltd. | 346,000 | | 1,263,621 |
Yanlord Land Group Ltd. | 706,000 | | 661,706 |
TOTAL SINGAPORE | | 17,986,645 |
Taiwan - 11.1% |
Advanced Semiconductor Engineering, Inc. | 2,448,000 | | 2,466,213 |
Asia Cement Corp. | 1,922,300 | | 2,317,573 |
Chicony Electronics Co. Ltd. | 999,000 | | 1,953,113 |
Chipbond Technology Corp. | 256,000 | | 347,714 |
Compal Electronics, Inc. | 2,266,000 | | 2,611,477 |
E.Sun Financial Holdings Co. Ltd. | 3,610,568 | | 1,919,527 |
EVA Airways Corp. | 1,585,900 | | 954,641 |
Common Stocks - continued |
| Shares | | Value |
Taiwan - continued |
Formosa Plastics Corp. | 934,000 | | $ 2,658,961 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1,550,900 | | 4,915,217 |
Insyde Software Corp. | 131,195 | | 607,488 |
Lite-On Technology Corp. | 623,000 | | 761,789 |
Lung Yen Life Service Co. Ltd. | 37,000 | | 112,440 |
Macronix International Co. Ltd. | 1,307,000 | | 432,155 |
Taichung Commercial Bank Co. Ltd. | 23,640 | | 7,427 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 5,277,393 | | 15,626,678 |
United Microelectronics Corp. | 2,479,000 | | 1,299,078 |
Wistron Corp. | 1,963,100 | | 2,952,562 |
Yang Ming Marine Transport Corp. | 918,000 | | 390,437 |
TOTAL TAIWAN | | 42,334,490 |
Thailand - 6.1% |
Advanced Info Service PCL (For. Reg.) | 444,100 | | 2,642,507 |
Banpu PCL (For. Reg.) | 197,400 | | 3,568,668 |
Charoen Pokphand Foods PCL (For. Reg.) | 1,524,400 | | 2,019,811 |
LPN Development PCL (For. Reg.) | 3,834,100 | | 2,156,720 |
PTT Global Chemical PCL (For. Reg.) | 1,239,067 | | 2,769,821 |
PTT PCL (For. Reg.) | 345,600 | | 3,944,256 |
Siam Commercial Bank PCL (For. Reg.) | 477,600 | | 2,407,023 |
Siam Makro PCL (For. Reg.) | 61,100 | | 760,894 |
Thai Union Frozen Products PCL: | | | |
rights 5/18/12 (a) | 121,020 | | 89,521 |
(For. Reg.) | 605,100 | | 1,431,345 |
Total Access Communication PCL | 263,900 | | 699,335 |
Total Access Communication PCL unit | 220,200 | | 590,684 |
TOTAL THAILAND | | 23,080,585 |
United Kingdom - 1.4% |
HSBC Holdings PLC (Hong Kong) | 460,878 | | 4,167,422 |
Standard Chartered PLC (Hong Kong) | 38,300 | | 945,326 |
Vedanta Resources PLC | 16,100 | | 318,025 |
TOTAL UNITED KINGDOM | | 5,430,773 |
United States of America - 1.6% |
China Natural Gas, Inc. (a)(d) | 13,300 | | 21,280 |
Citigroup, Inc. | 27,400 | | 905,296 |
Cognizant Technology Solutions Corp. Class A (a) | 49,300 | | 3,614,676 |
Cree, Inc. (a) | 6,200 | | 191,580 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Freeport-McMoRan Copper & Gold, Inc. | 21,000 | | $ 804,300 |
Zhongpin, Inc. (a) | 44,600 | | 421,024 |
TOTAL UNITED STATES OF AMERICA | | 5,958,156 |
TOTAL COMMON STOCKS (Cost $324,007,858) |
370,470,777
|
Money Market Funds - 2.3% |
| | | |
Fidelity Cash Central Fund, 0.14% (b) | 8,460,351 | | 8,460,351 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 390,425 | | 390,425 |
TOTAL MONEY MARKET FUNDS (Cost $8,850,776) |
8,850,776
|
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $332,858,634) | | 379,321,553 |
NET OTHER ASSETS (LIABILITIES) - 0.5% | | 2,075,545 |
NET ASSETS - 100% | $ 381,397,098 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
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 | $ 2,930 |
Fidelity Securities Lending Cash Central Fund | 58,328 |
Total | $ 61,258 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 tables below, please refer to the Security 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 | $ 33,328,963 | $ 33,328,963 | $ - | $ - |
Consumer Staples | 20,149,969 | 20,060,448 | 89,521 | - |
Energy | 27,379,877 | 11,988,914 | 15,390,963 | - |
Financials | 106,975,587 | 102,808,165 | 4,167,422 | - |
Health Care | 3,042,610 | 3,042,610 | - | - |
Industrials | 34,835,275 | 34,835,275 | - | - |
Information Technology | 78,993,363 | 59,601,394 | 19,391,969 | - |
Materials | 26,227,490 | 18,936,031 | 7,291,459 | - |
Telecommunication Services | 28,768,898 | 12,141,458 | 16,627,440 | - |
Utilities | 10,768,745 | 9,045,257 | 1,723,488 | - |
Money Market Funds | 8,850,776 | 8,850,776 | - | - |
Total Investments in Securities: | $ 379,321,553 | $ 314,639,291 | $ 64,682,262 | $ - |
Transfers from Level 2 to Level 1 during the period were $202,290,573. |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 530,170 |
Total Realized Gain (Loss) | (2,615,091) |
Total Unrealized Gain (Loss) | 2,315,439 |
Cost of Purchases | - |
Proceeds of Sales | (204,982) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (25,536) |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2012 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $380,062) - See accompanying schedule: Unaffiliated issuers (cost $324,007,858) | $ 370,470,777 | |
Fidelity Central Funds (cost $8,850,776) | 8,850,776 | |
Total Investments (cost $332,858,634) | | $ 379,321,553 |
Cash | | 2,989 |
Foreign currency held at value (cost $54,310) | | 54,463 |
Receivable for investments sold | | 2,483,275 |
Receivable for fund shares sold | | 272,103 |
Dividends receivable | | 841,401 |
Distributions receivable from Fidelity Central Funds | | 11,635 |
Prepaid expenses | | 445 |
Other receivables | | 186,757 |
Total assets | | 383,174,621 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 813,672 | |
Accrued management fee | 223,675 | |
Distribution and service plan fees payable | 139,802 | |
Other affiliated payables | 101,020 | |
Other payables and accrued expenses | 108,929 | |
Collateral on securities loaned, at value | 390,425 | |
Total liabilities | | 1,777,523 |
| | |
Net Assets | | $ 381,397,098 |
Net Assets consist of: | | |
Paid in capital | | $ 345,289,425 |
Accumulated net investment loss | | (605,427) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (9,726,920) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 46,440,020 |
Net Assets | | $ 381,397,098 |
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, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($176,355,117 ÷ 6,138,281 shares) | | $ 28.73 |
| | |
Maximum offering price per share (100/94.25 of $28.73) | | $ 30.48 |
Class T:
Net Asset Value and redemption price per share ($54,462,528 ÷ 1,942,581 shares) | | $ 28.04 |
| | |
Maximum offering price per share (100/96.50 of $28.04) | | $ 29.06 |
Class B:
Net Asset Value and offering price per share ($18,538,799 ÷ 693,065 shares)A | | $ 26.75 |
| | |
Class C:
Net Asset Value and offering price per share ($77,680,425 ÷ 2,931,007 shares)A | | $ 26.50 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($54,360,229 ÷ 1,843,624 shares) | | $ 29.49 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,129,131 |
Income from Fidelity Central Funds | | 61,258 |
Income before foreign taxes withheld | | 3,190,389 |
Less foreign taxes withheld | | (284,532) |
Total income | | 2,905,857 |
| | |
Expenses | | |
Management fee | $ 1,324,797 | |
Transfer agent fees | 502,867 | |
Distribution and service plan fees | 837,795 | |
Accounting and security lending fees | 96,986 | |
Custodian fees and expenses | 129,136 | |
Independent trustees' compensation | 1,126 | |
Registration fees | 78,354 | |
Audit | 45,846 | |
Legal | 713 | |
Interest | 470 | |
Miscellaneous | 2,029 | |
Total expenses before reductions | 3,020,119 | |
Expense reductions | (45,480) | 2,974,639 |
Net investment income (loss) | | (68,782) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (8,354,086) | |
Foreign currency transactions | 13,280 | |
Total net realized gain (loss) | | (8,340,806) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 28,465,838 | |
Assets and liabilities in foreign currencies | (7,821) | |
Total change in net unrealized appreciation (depreciation) | | 28,458,017 |
Net gain (loss) | | 20,117,211 |
Net increase (decrease) in net assets resulting from operations | | $ 20,048,429 |
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, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (68,782) | $ 3,977,993 |
Net realized gain (loss) | (8,340,806) | 22,771,263 |
Change in net unrealized appreciation (depreciation) | 28,458,017 | (61,670,156) |
Net increase (decrease) in net assets resulting
from operations | 20,048,429 | (34,920,900) |
Distributions to shareholders from net investment income | (3,170,796) | (1,974,190) |
Distributions to shareholders from net realized gain | (16,643,900) | (23,691,402) |
Total distributions | (19,814,696) | (25,665,592) |
Share transactions - net increase (decrease) | (3,315,248) | 32,289,855 |
Redemption fees | 22,479 | 135,689 |
Total increase (decrease) in net assets | (3,059,036) | (28,160,948) |
| | |
Net Assets | | |
Beginning of period | 384,456,134 | 412,617,082 |
End of period (including accumulated net investment loss of $605,427 and undistributed net investment income of $2,634,151, respectively) | $ 381,397,098 | $ 384,456,134 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 28.70 | $ 32.97 | $ 25.96 | $ 15.74 | $ 37.55 | $ 22.48 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .35 | .25 | .19 | .19 | .24 |
Net realized and unrealized gain (loss) | 1.55 | (2.62) | 7.09 | 10.07 | (18.72) | 16.64 |
Total from investment operations | 1.57 | (2.27) | 7.34 | 10.26 | (18.53) | 16.88 |
Distributions from net investment income | (.31) | (.20) | (.12) | (.05) | (.23) | (.15) |
Distributions from net realized gain | (1.23) | (1.81) | (.22) | - | (3.06) | (1.68) |
Total distributions | (1.54) | (2.01) | (.34) | (.05) | (3.29) | (1.83) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .01 | .02 |
Net asset value, end of period | $ 28.73 | $ 28.70 | $ 32.97 | $ 25.96 | $ 15.74 | $ 37.55 |
Total Return B, C, D | 5.85% | (7.44)% | 28.53% | 65.43% | (53.66)% | 80.43% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.42% A | 1.39% | 1.44% | 1.54% | 1.50% | 1.47% |
Expenses net of fee waivers, if any | 1.42% A | 1.39% | 1.44% | 1.50% | 1.50% | 1.47% |
Expenses net of all reductions | 1.39% A | 1.35% | 1.40% | 1.41% | 1.41% | 1.40% |
Net investment income (loss) | .16% A | 1.12% | .86% | .94% | .73% | .88% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 176,355 | $ 179,346 | $ 189,255 | $ 131,564 | $ 71,722 | $ 152,630 |
Portfolio turnover rate G | 77% A | 119% | 138% | 91% | 92% I | 66% |
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 The portfolio turnover rate does not include the assets acquired in the merger.
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 T
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 27.98 | $ 32.20 | $ 25.40 | $ 15.43 | $ 36.88 | $ 22.13 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .25 | .15 | .14 | .12 | .16 |
Net realized and unrealized gain (loss) | 1.51 | (2.55) | 6.94 | 9.86 | (18.38) | 16.37 |
Total from investment operations | 1.49 | (2.30) | 7.09 | 10.00 | (18.26) | 16.53 |
Distributions from net investment income | (.20) | (.12) | (.08) | (.04) | (.14) | (.12) |
Distributions from net realized gain | (1.23) | (1.81) | (.22) | - | (3.06) | (1.68) |
Total distributions | (1.43) | (1.93) | (.30) | (.04) | (3.20) | (1.80) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .01 | .02 |
Net asset value, end of period | $ 28.04 | $ 27.98 | $ 32.20 | $ 25.40 | $ 15.43 | $ 36.88 |
Total Return B, C, D | 5.70% | (7.70)% | 28.13% | 65.06% | (53.79)% | 79.98% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.71% A | 1.70% | 1.74% | 1.84% | 1.80% | 1.79% |
Expenses net of fee waivers, if any | 1.71% A | 1.69% | 1.74% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.68% A | 1.65% | 1.70% | 1.66% | 1.66% | 1.67% |
Net investment income (loss) | (.13)% A | .82% | .55% | .69% | .48% | .61% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 54,463 | $ 55,452 | $ 61,620 | $ 45,259 | $ 25,205 | $ 64,813 |
Portfolio turnover rate G | 77% A | 119% | 138% | 91% | 92% I | 66% |
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 The portfolio turnover rate does not include the assets acquired in the merger.
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 B
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.62 | $ 30.72 | $ 24.29 | $ 14.82 | $ 35.55 | $ 21.42 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.08) | .10 | .02 | .04 | (.01) | .03 |
Net realized and unrealized gain (loss) | 1.44 | (2.44) | 6.61 | 9.45 | (17.68) | 15.79 |
Total from investment operations | 1.36 | (2.34) | 6.63 | 9.49 | (17.69) | 15.82 |
Distributions from net investment income | - | - | - | (.03) | - | (.03) |
Distributions from net realized gain | (1.23) | (1.77) | (.21) | - | (3.05) | (1.68) |
Total distributions | (1.23) | (1.77) | (.21) | (.03) | (3.05) | (1.71) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .01 | .02 |
Net asset value, end of period | $ 26.75 | $ 26.62 | $ 30.72 | $ 24.29 | $ 14.82 | $ 35.55 |
Total Return B, C, D | 5.43% | (8.16)% | 27.48% | 64.23% | (54.01)% | 79.01% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.20% A | 2.19% | 2.24% | 2.32% | 2.29% | 2.28% |
Expenses net of fee waivers, if any | 2.20% A | 2.18% | 2.24% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.17% A | 2.15% | 2.20% | 2.16% | 2.16% | 2.17% |
Net investment income (loss) | (.62)% A | .32% | .06% | .19% | (.02)% | .11% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 18,539 | $ 20,831 | $ 29,611 | $ 25,750 | $ 17,040 | $ 40,775 |
Portfolio turnover rate G | 77% A | 119% | 138% | 91% | 92% I | 66% |
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 The portfolio turnover rate does not include the assets acquired in the merger.
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 April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.44 | $ 30.58 | $ 24.19 | $ 14.76 | $ 35.48 | $ 21.39 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | .11 | .03 | .04 | - J | .04 |
Net realized and unrealized gain (loss) | 1.42 | (2.41) | 6.59 | 9.41 | (17.63) | 15.76 |
Total from investment operations | 1.35 | (2.30) | 6.62 | 9.45 | (17.63) | 15.80 |
Distributions from net investment income | (.06) | (.04) | (.02) | (.03) | (.04) | (.05) |
Distributions from net realized gain | (1.23) | (1.81) | (.22) | - | (3.06) | (1.68) |
Total distributions | (1.29) | (1.85) | (.24) | (.03) | (3.10) | (1.73) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .01 | .02 |
Net asset value, end of period | $ 26.50 | $ 26.44 | $ 30.58 | $ 24.19 | $ 14.76 | $ 35.48 |
Total Return B, C, D | 5.45% | (8.10)% | 27.58% | 64.21% | (54.02)% | 79.05% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.16% A | 2.13% | 2.17% | 2.28% | 2.25% | 2.21% |
Expenses net of fee waivers, if any | 2.16% A | 2.13% | 2.17% | 2.25% | 2.25% | 2.21% |
Expenses net of all reductions | 2.14% A | 2.10% | 2.13% | 2.16% | 2.16% | 2.13% |
Net investment income (loss) | (.58)% A | .37% | .12% | .19% | (.02)% | .14% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 77,680 | $ 78,939 | $ 87,089 | $ 59,491 | $ 30,577 | $ 82,070 |
Portfolio turnover rate G | 77% A | 119% | 138% | 91% | 92% I | 66% |
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 The portfolio turnover rate does not include the assets acquired in the merger.
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 April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 29.49 | $ 33.80 | $ 26.58 | $ 16.07 | $ 38.25 | $ 22.84 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .07 | .46 | .34 | .26 | .27 | .34 |
Net realized and unrealized gain (loss) | 1.58 | (2.69) | 7.26 | 10.29 | (19.09) | 16.92 |
Total from investment operations | 1.65 | (2.23) | 7.60 | 10.55 | (18.82) | 17.26 |
Distributions from net investment income | (.42) | (.29) | (.17) | (.05) | (.31) | (.19) |
Distributions from net realized gain | (1.23) | (1.81) | (.22) | - | (3.06) | (1.68) |
Total distributions | (1.65) | (2.09) J | (.39) | (.05) | (3.37) | (1.87) |
Redemption fees added to paid in capital D | - I | .01 | .01 | .01 | .01 | .02 |
Net asset value, end of period | $ 29.49 | $ 29.49 | $ 33.80 | $ 26.58 | $ 16.07 | $ 38.25 |
Total Return B, C | 5.99% | (7.13)% | 28.87% | 65.94% | (53.53)% | 80.97% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.11% A | 1.10% | 1.14% | 1.25% | 1.20% | 1.16% |
Expenses net of fee waivers, if any | 1.11% A | 1.10% | 1.14% | 1.25% | 1.20% | 1.16% |
Expenses net of all reductions | 1.09% A | 1.06% | 1.10% | 1.16% | 1.11% | 1.08% |
Net investment income (loss) | .47% A | 1.41% | 1.16% | 1.18% | 1.03% | 1.20% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 54,360 | $ 49,888 | $ 45,042 | $ 23,888 | $ 5,933 | $ 16,300 |
Portfolio turnover rate F | 77% A | 119% | 138% | 91% | 92% H | 66% |
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 The portfolio turnover rate does not include the assets acquired in the merger.
I Amount represents less than $.01 per share.
J Total distributions of $2.09 per share is comprised of distributions from net investment income of $.288 and distributions from net realized gain of $1.805 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor® Emerging Asia Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
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 the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
(ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are 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 each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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 rate 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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund received a final ruling from the Authority for Advance Ruling in India regarding the applicability of taxes imposed by the country on realized capital gains under the US/India tax treaty. The ruling entitled the Fund to a refund of capital gains taxes paid in prior years and exempts the Fund from taxes on future realized gains. The India Central Board of Direct Taxation may challenge the ruling at any time which could result in the reversal of some or all of the benefits recorded by the Fund.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC) 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 | $ 64,400,868 |
Gross unrealized depreciation | (19,554,050) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 44,846,818 |
| |
Tax cost | $ 334,474,735 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $143,496,366 and $172,534,082, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 219,946 | $ 5,655 |
Class T | .25% | .25% | 135,526 | 1,091 |
Class B | .75% | .25% | 97,112 | 72,967 |
Class C | .75% | .25% | 385,211 | 62,505 |
| | | $ 837,795 | $ 142,218 |
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, 1.00% for Class C, 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
by FDC |
Class A | $ 52,230 |
Class T | 10,568 |
Class B* | 21,013 |
Class C* | 8,150 |
| $ 91,961 |
* 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
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, 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
Average
Net Assets* |
Class A | $ 237,822 | .27 |
Class T | 84,127 | .31 |
Class B | 29,123 | .30 |
Class C | 100,920 | .26 |
Institutional Class | 50,875 | .21 |
| $ 502,867 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $55 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan
Balance | Weighted
Average Interest
Rate | Interest Expense |
Borrower | $ 5,439,222 | .35% | $ 470 |
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $559 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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 $58,328. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $45,480 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net investment income | | |
Class A | $ 1,898,062 | $ 1,195,236 |
Class T | 399,039 | 238,089 |
Class C | 179,759 | 129,641 |
Institutional Class | 693,936 | 411,224 |
Total | $ 3,170,796 | $ 1,974,190 |
From net realized gain | | |
Class A | $ 7,604,613 | $ 10,575,420 |
Class T | 2,417,821 | 3,522,540 |
Class B | 945,064 | 1,697,909 |
Class C | 3,624,620 | 5,318,244 |
Institutional Class | 2,051,782 | 2,577,289 |
Total | $ 16,643,900 | $ 23,691,402 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 666,457 | 2,202,556 | $ 18,651,183 | $ 71,049,522 |
Reinvestment of distributions | 303,306 | 309,654 | 8,125,557 | 9,819,123 |
Shares redeemed | (1,079,433) | (2,005,332) | (29,866,716) | (62,867,653) |
Net increase (decrease) | (109,670) | 506,878 | $ (3,089,976) | $ 18,000,992 |
Class T | | | | |
Shares sold | 163,150 | 487,526 | $ 4,429,328 | $ 15,326,473 |
Reinvestment of distributions | 105,155 | 118,542 | 2,751,895 | 3,673,606 |
Shares redeemed | (307,421) | (538,208) | (8,322,987) | (16,492,902) |
Net increase (decrease) | (39,116) | 67,860 | $ (1,141,764) | $ 2,507,177 |
Class B | | | | |
Shares sold | 9,384 | 65,556 | $ 246,078 | $ 2,016,841 |
Reinvestment of distributions | 30,756 | 44,891 | 769,523 | 1,329,672 |
Shares redeemed | (129,586) | (291,995) | (3,357,223) | (8,641,379) |
Net increase (decrease) | (89,446) | (181,548) | $ (2,341,622) | $ (5,294,866) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Class C | | | | |
Shares sold | 213,350 | 976,733 | $ 5,458,684 | $ 29,282,683 |
Reinvestment of distributions | 125,179 | 152,906 | 3,103,186 | 4,496,965 |
Shares redeemed | (392,568) | (992,268) | (10,013,769) | (28,874,366) |
Net increase (decrease) | (54,039) | 137,371 | $ (1,451,899) | $ 4,905,282 |
Institutional Class | | | | |
Shares sold | 613,468 | 1,196,148 | $ 17,584,228 | $ 38,645,718 |
Reinvestment of distributions | 64,226 | 57,110 | 1,763,657 | 1,854,949 |
Shares redeemed | (525,998) | (893,992) | (14,637,872) | (28,329,397) |
Net increase (decrease) | 151,696 | 359,266 | $ 4,710,013 | $ 12,171,270 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investment Advisors (UK) Limited
FIL Investments (Japan) Limited
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AEA-USAN-0612
1.784873.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Asia
Fund - Institutional Class
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,058.50 | $ 7.27 |
HypotheticalA | | $ 1,000.00 | $ 1,017.80 | $ 7.12 |
Class T | 1.71% | | | |
Actual | | $ 1,000.00 | $ 1,057.00 | $ 8.75 |
HypotheticalA | | $ 1,000.00 | $ 1,016.36 | $ 8.57 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,054.30 | $ 11.24 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Class C | 2.16% | | | |
Actual | | $ 1,000.00 | $ 1,054.50 | $ 11.03 |
HypotheticalA | | $ 1,000.00 | $ 1,014.12 | $ 10.82 |
Institutional Class | 1.11% | | | |
Actual | | $ 1,000.00 | $ 1,059.90 | $ 5.68 |
HypotheticalA | | $ 1,000.00 | $ 1,019.34 | $ 5.57 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. | 7.3 | 5.7 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 4.1 | 3.9 |
China Mobile Ltd. | 2.9 | 3.3 |
China Construction Bank Corp. (H Shares) | 2.3 | 2.3 |
CNOOC Ltd. | 2.1 | 2.6 |
Hyundai Motor Co. | 1.9 | 0.7 |
China Petroleum & Chemical Corp. (H Shares) | 1.9 | 1.0 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 1.8 | 1.8 |
AIA Group Ltd. | 1.7 | 1.5 |
Power Assets Holdings Ltd. | 1.4 | 1.9 |
| 27.4 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 28.0 | 29.3 |
Information Technology | 21.0 | 17.3 |
Industrials | 9.0 | 10.3 |
Consumer Discretionary | 8.7 | 10.3 |
Telecommunication Services | 7.7 | 6.8 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 97.2% | | | Stocks 98.7% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 2.8% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 1.3% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value |
Australia - 0.4% |
Origin Energy Ltd. | 61,798 | | $ 853,735 |
Spark Infrastructure Group unit | 347,458 | | 524,899 |
TOTAL AUSTRALIA | | 1,378,634 |
Bermuda - 1.1% |
Cheung Kong Infrastructure Holdings Ltd. | 238,000 | | 1,412,604 |
Giordano International Ltd. | 732,000 | | 638,725 |
Jardine Matheson Holdings Ltd. | 16,400 | | 814,260 |
Kunlun Energy Co. Ltd. | 592,000 | | 1,043,810 |
Man Wah Holdings Ltd. | 510,000 | | 265,562 |
TOTAL BERMUDA | | 4,174,961 |
Cayman Islands - 3.3% |
AirMedia Group, Inc. ADR (a) | 122,200 | | 348,270 |
ASM Pacific Technology Ltd. | 89,300 | | 1,209,673 |
Baidu.com, Inc. sponsored ADR (a) | 7,500 | | 995,250 |
Bosideng International Holdings Ltd. | 1,470,000 | | 424,404 |
Changyou.com Ltd. (A Shares) ADR (a) | 12,000 | | 290,640 |
China Lodging Group Ltd. ADR (a) | 29,900 | | 380,627 |
China Metal Recycling (Holdings) Ltd. | 1,020,600 | | 1,170,737 |
Country Garden Holdings Co. Ltd. | 2,602,000 | | 1,130,189 |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 5,900 | | 140,184 |
International Taifeng Holdings Ltd. | 1,456,000 | | 450,388 |
Kingboard Laminates Holdings Ltd. | 329,000 | | 153,504 |
LDK Solar Co. Ltd. sponsored ADR (a)(d) | 29,200 | | 92,856 |
Lee & Man Paper Manufacturing Ltd. | 1,429,000 | | 670,421 |
Microport Scientific Corp. | 506,000 | | 238,696 |
NVC Lighting Holdings Ltd. | 190,000 | | 69,058 |
Qihoo 360 Technology Co. Ltd. ADR (a)(d) | 17,000 | | 417,690 |
Samson Holding Ltd. | 940,000 | | 124,790 |
Sands China Ltd. | 585,200 | | 2,300,478 |
SOHO China Ltd. | 1,534,500 | | 1,192,609 |
Spreadtrum Communications, Inc. ADR (d) | 23,200 | | 320,160 |
Youyuan International Holdings Ltd. | 1,946,000 | | 484,077 |
TOTAL CAYMAN ISLANDS | | 12,604,701 |
China - 14.0% |
Agricultural Bank China Ltd. (H Shares) | 4,254,000 | | 2,023,195 |
Angang Steel Co. Ltd. (H Shares) | 552,000 | | 377,787 |
China CITIC Bank Corp. Ltd. (H Shares) | 4,065,000 | | 2,588,221 |
China Communications Construction Co. Ltd. (H Shares) | 3,724,000 | | 3,743,847 |
China Communications Services Corp. Ltd. (H Shares) | 5,462,000 | | 2,808,914 |
China Construction Bank Corp. (H Shares) | 11,546,000 | | 8,988,399 |
Common Stocks - continued |
| Shares | | Value |
China - continued |
China Eastern Airlines Corp. Ltd. (H Shares) (a) | 1,874,000 | | $ 625,580 |
China Merchants Bank Co. Ltd. (H Shares) | 1,456,000 | | 3,160,220 |
China Minsheng Banking Corp. Ltd. (H Shares) | 4,101,500 | | 4,255,518 |
China Pacific Insurance Group Co. Ltd. (H Shares) | 535,800 | | 1,750,631 |
China Petroleum & Chemical Corp. (H Shares) | 6,842,000 | | 7,266,963 |
China Ship Container Lines Co. Ltd. (H Shares) (a) | 1,841,000 | | 600,327 |
China Southern Airlines Ltd. (H Shares) (a) | 3,542,000 | | 1,593,264 |
China Suntien Green Energy Corp. Ltd. (H Shares) | 838,000 | | 163,093 |
Dongfeng Motor Group Co. Ltd. (H Shares) | 1,300,000 | | 2,563,590 |
Harbin Power Equipment Co. Ltd. (H Shares) | 1,478,000 | | 1,541,121 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 10,594,000 | | 7,072,999 |
Metallurgical Corp. China Ltd. (H Shares) | 1,804,000 | | 402,250 |
Shanghai Jin Jiang International Hotel Co. Ltd. (H Shares) | 2,656,000 | | 390,253 |
Sinopec Shanghai Petrochemical Co. Ltd. (H Shares) | 2,940,000 | | 1,023,116 |
Weichai Power Co. Ltd. (H Shares) | 128,000 | | 602,992 |
TOTAL CHINA | | 53,542,280 |
Hong Kong - 15.5% |
AIA Group Ltd. | 1,826,400 | | 6,497,089 |
BYD Electronic International Co. Ltd. (a) | 547,500 | | 165,125 |
Cathay Pacific Airways Ltd. | 1,573,000 | | 2,668,078 |
China Insurance International Holdings Co. Ltd. (a) | 716,200 | | 1,493,574 |
China Mobile Ltd. | 1,003,500 | | 11,102,246 |
China Unicom Ltd. | 1,568,000 | | 2,742,396 |
Citic Pacific Ltd. | 930,000 | | 1,531,890 |
CNOOC Ltd. | 3,844,500 | | 8,124,000 |
Henderson Land Development Co. Ltd. | 287,000 | | 1,635,001 |
HKT Trust / HKT Ltd. unit | 711,942 | | 553,319 |
Lenovo Group Ltd. | 2,616,000 | | 2,515,304 |
New World Development Co. Ltd. | 2,938,838 | | 3,662,823 |
PCCW Ltd. | 7,844,000 | | 2,921,792 |
Power Assets Holdings Ltd. | 727,500 | | 5,438,446 |
Sino-Ocean Land Holdings Ltd. | 1,045,500 | | 487,805 |
Sinotruk Hong Kong Ltd. | 2,905,500 | | 1,771,315 |
Sun Hung Kai Properties Ltd. | 444,000 | | 5,356,396 |
Techtronic Industries Co. Ltd. | 342,000 | | 413,028 |
TOTAL HONG KONG | | 59,079,627 |
India - 7.6% |
Aditya Birla Nuvo Ltd. | 24,656 | | 434,084 |
Apollo Tyres Ltd. | 567,802 | | 974,638 |
Axis Bank Ltd. | 131,200 | | 2,757,654 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Canara Bank | 195,600 | | $ 1,621,551 |
Chennai Petroleum Corp. Ltd. | 42,318 | | 120,690 |
Deccan Chronicle Holdings Ltd. (a) | 367,274 | | 278,602 |
Dena Bank | 289,157 | | 511,440 |
Exide Industries Ltd. | 144,079 | | 353,734 |
Gateway Distriparks Ltd. | 178,612 | | 512,791 |
Grasim Industries Ltd. | 40,319 | | 2,104,962 |
HCL Infosystems Ltd. | 344,917 | | 292,097 |
Hindalco Industries Ltd. | 643,053 | | 1,474,388 |
Hindustan Unilever Ltd. | 246,359 | | 1,953,470 |
Housing Development and Infrastructure Ltd. (a) | 129,674 | | 198,334 |
ICSA (India) Ltd. | 186,602 | | 66,258 |
Indian Overseas Bank | 467,582 | | 775,086 |
Ipca Laboratories Ltd. | 60,133 | | 412,704 |
Jubilant Industries Ltd. | 5,873 | | 29,914 |
Jubilant Life Sciences Ltd. | 101,017 | | 347,273 |
NIIT Technologies Ltd. | 77,144 | | 382,095 |
Page Industries Ltd. | 3,278 | | 194,707 |
Piramal Healthcare Ltd. | 82,535 | | 686,342 |
Polaris Financial Technology Ltd. | 100,621 | | 250,669 |
Ranbaxy Laboratories Ltd. | 60,542 | | 578,118 |
Reliance Infrastructure Ltd. | 37,973 | | 380,487 |
Rolta India Ltd. | 202,090 | | 335,953 |
SREI Infrastructure Finance Ltd. | 1,190,428 | | 582,047 |
Strides Arcolab Ltd. | 28,646 | | 365,982 |
Syndicate Bank | 176,416 | | 348,712 |
Tata Chemicals Ltd. | 46,187 | | 294,890 |
Tata Consultancy Services Ltd. | 170,307 | | 4,031,230 |
Tata Motors Ltd. Class A | 975,219 | | 3,349,798 |
Tata Steel Ltd. | 190,208 | | 1,674,546 |
Tech Mahindra Ltd. | 31,238 | | 416,240 |
TOTAL INDIA | | 29,091,486 |
Indonesia - 5.4% |
PT Astra International Tbk | 437,500 | | 3,379,849 |
PT Bank Mandiri (Persero) Tbk | 3,565,500 | | 2,870,866 |
PT Bank Rakyat Indonesia Tbk | 6,129,000 | | 4,434,780 |
PT BISI International Tbk | 1,735,500 | | 158,622 |
PT Global Mediacom Tbk | 3,804,000 | | 687,083 |
PT Gudang Garam Tbk | 228,500 | | 1,471,868 |
PT Indosat Tbk | 567,000 | | 299,217 |
PT Media Nusantara Citra Tbk | 697,500 | | 170,761 |
Common Stocks - continued |
| Shares | | Value |
Indonesia - continued |
PT Telkomunikasi Indonesia Tbk Series B | 3,018,000 | | $ 2,782,798 |
PT Tower Bersama Infrastructure Tbk | 1,977,000 | | 656,096 |
PT Unilever Indonesia Tbk | 782,500 | | 1,690,074 |
PT United Tractors Tbk | 505,000 | | 1,626,462 |
PT XL Axiata Tbk | 700,500 | | 411,588 |
TOTAL INDONESIA | | 20,640,064 |
Korea (South) - 23.1% |
BS Financial Group, Inc. | 323,780 | | 3,337,717 |
Cheil Worldwide, Inc. | 67,400 | | 1,174,897 |
Chong Kun Dang Pharmaceutical Corp. | 29,390 | | 413,495 |
CJ CheilJedang Corp. | 9,381 | | 3,104,519 |
Daewoo Securities Co. Ltd. | 49,470 | | 503,400 |
DGB Financial Group Co. Ltd. | 86,140 | | 1,009,937 |
Dongbu Insurance Co. Ltd. | 38,130 | | 1,525,032 |
Doosan Co. Ltd. | 12,803 | | 1,563,380 |
Hana Financial Group, Inc. | 129,540 | | 4,453,162 |
Hanjin Shipping Co. Ltd. | 25,530 | | 351,281 |
Hotel Shilla Co. | 22,750 | | 1,064,904 |
Hyundai Department Store Co. Ltd. | 16,060 | | 2,266,626 |
Hyundai Fire & Marine Insurance Co. Ltd. | 20,500 | | 526,048 |
Hyundai Heavy Industries Co. Ltd. | 8,852 | | 2,216,672 |
Hyundai Merchant Marine Co. Ltd. | 19,350 | | 492,258 |
Hyundai Motor Co. | 30,658 | | 7,283,862 |
ICD Co. Ltd. | 16,032 | | 325,570 |
Industrial Bank of Korea | 92,000 | | 1,017,587 |
Korea Electric Power Corp. (a) | 89,840 | | 1,723,488 |
Korean Air Lines Co. Ltd. | 12,661 | | 498,542 |
LG International Corp. | 31,874 | | 1,305,844 |
LIG Non-Life Insurance Co. Ltd. | 16,970 | | 352,877 |
Lotte Samkang Co. Ltd. | 2,877 | | 1,227,045 |
Lotte Shopping Co. Ltd. | 4,256 | | 1,321,850 |
Nong Shim Co. Ltd. | 2,179 | | 436,716 |
OCI Co. Ltd. | 5,824 | | 1,102,830 |
Orion Corp. | 1,455 | | 1,156,147 |
Poongsan Corp. | 9,966 | | 265,437 |
POSCO | 15,656 | | 5,186,497 |
Samsung Electronics Co. Ltd. | 22,716 | | 27,939,597 |
Samsung Fire & Marine Insurance Co. Ltd. | 17,703 | | 3,383,563 |
Samsung Heavy Industries Ltd. | 107,320 | | 3,959,955 |
SK Chemicals Co. Ltd. | 30,094 | | 1,499,208 |
SK Energy Co. Ltd. | 16,413 | | 2,294,662 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
SK Holdings Co. Ltd. | 8,540 | | $ 918,138 |
Sungwoo Hitech Co. Ltd. | 78,679 | | 887,652 |
TOTAL KOREA (SOUTH) | | 88,090,395 |
Malaysia - 0.5% |
Genting Malaysia Bhd | 1,181,600 | | 1,499,701 |
Glomac Bhd | 1,577,300 | | 435,315 |
TOTAL MALAYSIA | | 1,935,016 |
Mauritius - 0.4% |
Golden Agri-Resources Ltd. | 2,385,000 | | 1,416,374 |
Philippines - 1.0% |
BDO Unibank, Inc. | 754,780 | | 1,185,022 |
Globe Telecom, Inc. | 20,970 | | 558,006 |
Manila Water Co., Inc. | 2,163,800 | | 1,267,541 |
PUREGOLD Price Club, Inc. | 436,600 | | 250,580 |
Security Bank Corp. | 137,240 | | 465,441 |
TOTAL PHILIPPINES | | 3,726,590 |
Singapore - 4.7% |
Avago Technologies Ltd. | 29,400 | | 1,013,712 |
CapitaMall Trust | 1,111,000 | | 1,615,804 |
China Minzhong Food Corp. Ltd. (a) | 233,000 | | 158,138 |
City Developments Ltd. | 270,000 | | 2,212,096 |
DBS Group Holdings Ltd. | 327,000 | | 3,688,377 |
First Resources Ltd. | 786,000 | | 1,193,940 |
Keppel Corp. Ltd. | 403,600 | | 3,603,426 |
Mapletree Industrial (REIT) | 433,000 | | 395,338 |
Mapletree Logistics Trust (REIT) | 1,313,000 | | 1,039,664 |
Olam International Ltd. | 622,000 | | 1,140,823 |
UOL Group Ltd. | 346,000 | | 1,263,621 |
Yanlord Land Group Ltd. | 706,000 | | 661,706 |
TOTAL SINGAPORE | | 17,986,645 |
Taiwan - 11.1% |
Advanced Semiconductor Engineering, Inc. | 2,448,000 | | 2,466,213 |
Asia Cement Corp. | 1,922,300 | | 2,317,573 |
Chicony Electronics Co. Ltd. | 999,000 | | 1,953,113 |
Chipbond Technology Corp. | 256,000 | | 347,714 |
Compal Electronics, Inc. | 2,266,000 | | 2,611,477 |
E.Sun Financial Holdings Co. Ltd. | 3,610,568 | | 1,919,527 |
EVA Airways Corp. | 1,585,900 | | 954,641 |
Common Stocks - continued |
| Shares | | Value |
Taiwan - continued |
Formosa Plastics Corp. | 934,000 | | $ 2,658,961 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1,550,900 | | 4,915,217 |
Insyde Software Corp. | 131,195 | | 607,488 |
Lite-On Technology Corp. | 623,000 | | 761,789 |
Lung Yen Life Service Co. Ltd. | 37,000 | | 112,440 |
Macronix International Co. Ltd. | 1,307,000 | | 432,155 |
Taichung Commercial Bank Co. Ltd. | 23,640 | | 7,427 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 5,277,393 | | 15,626,678 |
United Microelectronics Corp. | 2,479,000 | | 1,299,078 |
Wistron Corp. | 1,963,100 | | 2,952,562 |
Yang Ming Marine Transport Corp. | 918,000 | | 390,437 |
TOTAL TAIWAN | | 42,334,490 |
Thailand - 6.1% |
Advanced Info Service PCL (For. Reg.) | 444,100 | | 2,642,507 |
Banpu PCL (For. Reg.) | 197,400 | | 3,568,668 |
Charoen Pokphand Foods PCL (For. Reg.) | 1,524,400 | | 2,019,811 |
LPN Development PCL (For. Reg.) | 3,834,100 | | 2,156,720 |
PTT Global Chemical PCL (For. Reg.) | 1,239,067 | | 2,769,821 |
PTT PCL (For. Reg.) | 345,600 | | 3,944,256 |
Siam Commercial Bank PCL (For. Reg.) | 477,600 | | 2,407,023 |
Siam Makro PCL (For. Reg.) | 61,100 | | 760,894 |
Thai Union Frozen Products PCL: | | | |
rights 5/18/12 (a) | 121,020 | | 89,521 |
(For. Reg.) | 605,100 | | 1,431,345 |
Total Access Communication PCL | 263,900 | | 699,335 |
Total Access Communication PCL unit | 220,200 | | 590,684 |
TOTAL THAILAND | | 23,080,585 |
United Kingdom - 1.4% |
HSBC Holdings PLC (Hong Kong) | 460,878 | | 4,167,422 |
Standard Chartered PLC (Hong Kong) | 38,300 | | 945,326 |
Vedanta Resources PLC | 16,100 | | 318,025 |
TOTAL UNITED KINGDOM | | 5,430,773 |
United States of America - 1.6% |
China Natural Gas, Inc. (a)(d) | 13,300 | | 21,280 |
Citigroup, Inc. | 27,400 | | 905,296 |
Cognizant Technology Solutions Corp. Class A (a) | 49,300 | | 3,614,676 |
Cree, Inc. (a) | 6,200 | | 191,580 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Freeport-McMoRan Copper & Gold, Inc. | 21,000 | | $ 804,300 |
Zhongpin, Inc. (a) | 44,600 | | 421,024 |
TOTAL UNITED STATES OF AMERICA | | 5,958,156 |
TOTAL COMMON STOCKS (Cost $324,007,858) |
370,470,777
|
Money Market Funds - 2.3% |
| | | |
Fidelity Cash Central Fund, 0.14% (b) | 8,460,351 | | 8,460,351 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 390,425 | | 390,425 |
TOTAL MONEY MARKET FUNDS (Cost $8,850,776) |
8,850,776
|
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $332,858,634) | | 379,321,553 |
NET OTHER ASSETS (LIABILITIES) - 0.5% | | 2,075,545 |
NET ASSETS - 100% | $ 381,397,098 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
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 | $ 2,930 |
Fidelity Securities Lending Cash Central Fund | 58,328 |
Total | $ 61,258 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 tables below, please refer to the Security 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 | $ 33,328,963 | $ 33,328,963 | $ - | $ - |
Consumer Staples | 20,149,969 | 20,060,448 | 89,521 | - |
Energy | 27,379,877 | 11,988,914 | 15,390,963 | - |
Financials | 106,975,587 | 102,808,165 | 4,167,422 | - |
Health Care | 3,042,610 | 3,042,610 | - | - |
Industrials | 34,835,275 | 34,835,275 | - | - |
Information Technology | 78,993,363 | 59,601,394 | 19,391,969 | - |
Materials | 26,227,490 | 18,936,031 | 7,291,459 | - |
Telecommunication Services | 28,768,898 | 12,141,458 | 16,627,440 | - |
Utilities | 10,768,745 | 9,045,257 | 1,723,488 | - |
Money Market Funds | 8,850,776 | 8,850,776 | - | - |
Total Investments in Securities: | $ 379,321,553 | $ 314,639,291 | $ 64,682,262 | $ - |
Transfers from Level 2 to Level 1 during the period were $202,290,573. |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 530,170 |
Total Realized Gain (Loss) | (2,615,091) |
Total Unrealized Gain (Loss) | 2,315,439 |
Cost of Purchases | - |
Proceeds of Sales | (204,982) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (25,536) |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2012 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $380,062) - See accompanying schedule: Unaffiliated issuers (cost $324,007,858) | $ 370,470,777 | |
Fidelity Central Funds (cost $8,850,776) | 8,850,776 | |
Total Investments (cost $332,858,634) | | $ 379,321,553 |
Cash | | 2,989 |
Foreign currency held at value (cost $54,310) | | 54,463 |
Receivable for investments sold | | 2,483,275 |
Receivable for fund shares sold | | 272,103 |
Dividends receivable | | 841,401 |
Distributions receivable from Fidelity Central Funds | | 11,635 |
Prepaid expenses | | 445 |
Other receivables | | 186,757 |
Total assets | | 383,174,621 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 813,672 | |
Accrued management fee | 223,675 | |
Distribution and service plan fees payable | 139,802 | |
Other affiliated payables | 101,020 | |
Other payables and accrued expenses | 108,929 | |
Collateral on securities loaned, at value | 390,425 | |
Total liabilities | | 1,777,523 |
| | |
Net Assets | | $ 381,397,098 |
Net Assets consist of: | | |
Paid in capital | | $ 345,289,425 |
Accumulated net investment loss | | (605,427) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (9,726,920) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 46,440,020 |
Net Assets | | $ 381,397,098 |
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, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($176,355,117 ÷ 6,138,281 shares) | | $ 28.73 |
| | |
Maximum offering price per share (100/94.25 of $28.73) | | $ 30.48 |
Class T:
Net Asset Value and redemption price per share ($54,462,528 ÷ 1,942,581 shares) | | $ 28.04 |
| | |
Maximum offering price per share (100/96.50 of $28.04) | | $ 29.06 |
Class B:
Net Asset Value and offering price per share ($18,538,799 ÷ 693,065 shares)A | | $ 26.75 |
| | |
Class C:
Net Asset Value and offering price per share ($77,680,425 ÷ 2,931,007 shares)A | | $ 26.50 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($54,360,229 ÷ 1,843,624 shares) | | $ 29.49 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,129,131 |
Income from Fidelity Central Funds | | 61,258 |
Income before foreign taxes withheld | | 3,190,389 |
Less foreign taxes withheld | | (284,532) |
Total income | | 2,905,857 |
| | |
Expenses | | |
Management fee | $ 1,324,797 | |
Transfer agent fees | 502,867 | |
Distribution and service plan fees | 837,795 | |
Accounting and security lending fees | 96,986 | |
Custodian fees and expenses | 129,136 | |
Independent trustees' compensation | 1,126 | |
Registration fees | 78,354 | |
Audit | 45,846 | |
Legal | 713 | |
Interest | 470 | |
Miscellaneous | 2,029 | |
Total expenses before reductions | 3,020,119 | |
Expense reductions | (45,480) | 2,974,639 |
Net investment income (loss) | | (68,782) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (8,354,086) | |
Foreign currency transactions | 13,280 | |
Total net realized gain (loss) | | (8,340,806) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 28,465,838 | |
Assets and liabilities in foreign currencies | (7,821) | |
Total change in net unrealized appreciation (depreciation) | | 28,458,017 |
Net gain (loss) | | 20,117,211 |
Net increase (decrease) in net assets resulting from operations | | $ 20,048,429 |
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, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (68,782) | $ 3,977,993 |
Net realized gain (loss) | (8,340,806) | 22,771,263 |
Change in net unrealized appreciation (depreciation) | 28,458,017 | (61,670,156) |
Net increase (decrease) in net assets resulting
from operations | 20,048,429 | (34,920,900) |
Distributions to shareholders from net investment income | (3,170,796) | (1,974,190) |
Distributions to shareholders from net realized gain | (16,643,900) | (23,691,402) |
Total distributions | (19,814,696) | (25,665,592) |
Share transactions - net increase (decrease) | (3,315,248) | 32,289,855 |
Redemption fees | 22,479 | 135,689 |
Total increase (decrease) in net assets | (3,059,036) | (28,160,948) |
| | |
Net Assets | | |
Beginning of period | 384,456,134 | 412,617,082 |
End of period (including accumulated net investment loss of $605,427 and undistributed net investment income of $2,634,151, respectively) | $ 381,397,098 | $ 384,456,134 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 28.70 | $ 32.97 | $ 25.96 | $ 15.74 | $ 37.55 | $ 22.48 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .35 | .25 | .19 | .19 | .24 |
Net realized and unrealized gain (loss) | 1.55 | (2.62) | 7.09 | 10.07 | (18.72) | 16.64 |
Total from investment operations | 1.57 | (2.27) | 7.34 | 10.26 | (18.53) | 16.88 |
Distributions from net investment income | (.31) | (.20) | (.12) | (.05) | (.23) | (.15) |
Distributions from net realized gain | (1.23) | (1.81) | (.22) | - | (3.06) | (1.68) |
Total distributions | (1.54) | (2.01) | (.34) | (.05) | (3.29) | (1.83) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .01 | .02 |
Net asset value, end of period | $ 28.73 | $ 28.70 | $ 32.97 | $ 25.96 | $ 15.74 | $ 37.55 |
Total Return B, C, D | 5.85% | (7.44)% | 28.53% | 65.43% | (53.66)% | 80.43% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.42% A | 1.39% | 1.44% | 1.54% | 1.50% | 1.47% |
Expenses net of fee waivers, if any | 1.42% A | 1.39% | 1.44% | 1.50% | 1.50% | 1.47% |
Expenses net of all reductions | 1.39% A | 1.35% | 1.40% | 1.41% | 1.41% | 1.40% |
Net investment income (loss) | .16% A | 1.12% | .86% | .94% | .73% | .88% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 176,355 | $ 179,346 | $ 189,255 | $ 131,564 | $ 71,722 | $ 152,630 |
Portfolio turnover rate G | 77% A | 119% | 138% | 91% | 92% I | 66% |
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 The portfolio turnover rate does not include the assets acquired in the merger.
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 T
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 27.98 | $ 32.20 | $ 25.40 | $ 15.43 | $ 36.88 | $ 22.13 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .25 | .15 | .14 | .12 | .16 |
Net realized and unrealized gain (loss) | 1.51 | (2.55) | 6.94 | 9.86 | (18.38) | 16.37 |
Total from investment operations | 1.49 | (2.30) | 7.09 | 10.00 | (18.26) | 16.53 |
Distributions from net investment income | (.20) | (.12) | (.08) | (.04) | (.14) | (.12) |
Distributions from net realized gain | (1.23) | (1.81) | (.22) | - | (3.06) | (1.68) |
Total distributions | (1.43) | (1.93) | (.30) | (.04) | (3.20) | (1.80) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .01 | .02 |
Net asset value, end of period | $ 28.04 | $ 27.98 | $ 32.20 | $ 25.40 | $ 15.43 | $ 36.88 |
Total Return B, C, D | 5.70% | (7.70)% | 28.13% | 65.06% | (53.79)% | 79.98% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.71% A | 1.70% | 1.74% | 1.84% | 1.80% | 1.79% |
Expenses net of fee waivers, if any | 1.71% A | 1.69% | 1.74% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.68% A | 1.65% | 1.70% | 1.66% | 1.66% | 1.67% |
Net investment income (loss) | (.13)% A | .82% | .55% | .69% | .48% | .61% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 54,463 | $ 55,452 | $ 61,620 | $ 45,259 | $ 25,205 | $ 64,813 |
Portfolio turnover rate G | 77% A | 119% | 138% | 91% | 92% I | 66% |
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 The portfolio turnover rate does not include the assets acquired in the merger.
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 B
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.62 | $ 30.72 | $ 24.29 | $ 14.82 | $ 35.55 | $ 21.42 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.08) | .10 | .02 | .04 | (.01) | .03 |
Net realized and unrealized gain (loss) | 1.44 | (2.44) | 6.61 | 9.45 | (17.68) | 15.79 |
Total from investment operations | 1.36 | (2.34) | 6.63 | 9.49 | (17.69) | 15.82 |
Distributions from net investment income | - | - | - | (.03) | - | (.03) |
Distributions from net realized gain | (1.23) | (1.77) | (.21) | - | (3.05) | (1.68) |
Total distributions | (1.23) | (1.77) | (.21) | (.03) | (3.05) | (1.71) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .01 | .02 |
Net asset value, end of period | $ 26.75 | $ 26.62 | $ 30.72 | $ 24.29 | $ 14.82 | $ 35.55 |
Total Return B, C, D | 5.43% | (8.16)% | 27.48% | 64.23% | (54.01)% | 79.01% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.20% A | 2.19% | 2.24% | 2.32% | 2.29% | 2.28% |
Expenses net of fee waivers, if any | 2.20% A | 2.18% | 2.24% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.17% A | 2.15% | 2.20% | 2.16% | 2.16% | 2.17% |
Net investment income (loss) | (.62)% A | .32% | .06% | .19% | (.02)% | .11% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 18,539 | $ 20,831 | $ 29,611 | $ 25,750 | $ 17,040 | $ 40,775 |
Portfolio turnover rate G | 77% A | 119% | 138% | 91% | 92% I | 66% |
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 The portfolio turnover rate does not include the assets acquired in the merger.
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 April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.44 | $ 30.58 | $ 24.19 | $ 14.76 | $ 35.48 | $ 21.39 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | .11 | .03 | .04 | - J | .04 |
Net realized and unrealized gain (loss) | 1.42 | (2.41) | 6.59 | 9.41 | (17.63) | 15.76 |
Total from investment operations | 1.35 | (2.30) | 6.62 | 9.45 | (17.63) | 15.80 |
Distributions from net investment income | (.06) | (.04) | (.02) | (.03) | (.04) | (.05) |
Distributions from net realized gain | (1.23) | (1.81) | (.22) | - | (3.06) | (1.68) |
Total distributions | (1.29) | (1.85) | (.24) | (.03) | (3.10) | (1.73) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .01 | .02 |
Net asset value, end of period | $ 26.50 | $ 26.44 | $ 30.58 | $ 24.19 | $ 14.76 | $ 35.48 |
Total Return B, C, D | 5.45% | (8.10)% | 27.58% | 64.21% | (54.02)% | 79.05% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.16% A | 2.13% | 2.17% | 2.28% | 2.25% | 2.21% |
Expenses net of fee waivers, if any | 2.16% A | 2.13% | 2.17% | 2.25% | 2.25% | 2.21% |
Expenses net of all reductions | 2.14% A | 2.10% | 2.13% | 2.16% | 2.16% | 2.13% |
Net investment income (loss) | (.58)% A | .37% | .12% | .19% | (.02)% | .14% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 77,680 | $ 78,939 | $ 87,089 | $ 59,491 | $ 30,577 | $ 82,070 |
Portfolio turnover rate G | 77% A | 119% | 138% | 91% | 92% I | 66% |
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 The portfolio turnover rate does not include the assets acquired in the merger.
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 April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 29.49 | $ 33.80 | $ 26.58 | $ 16.07 | $ 38.25 | $ 22.84 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .07 | .46 | .34 | .26 | .27 | .34 |
Net realized and unrealized gain (loss) | 1.58 | (2.69) | 7.26 | 10.29 | (19.09) | 16.92 |
Total from investment operations | 1.65 | (2.23) | 7.60 | 10.55 | (18.82) | 17.26 |
Distributions from net investment income | (.42) | (.29) | (.17) | (.05) | (.31) | (.19) |
Distributions from net realized gain | (1.23) | (1.81) | (.22) | - | (3.06) | (1.68) |
Total distributions | (1.65) | (2.09) J | (.39) | (.05) | (3.37) | (1.87) |
Redemption fees added to paid in capital D | - I | .01 | .01 | .01 | .01 | .02 |
Net asset value, end of period | $ 29.49 | $ 29.49 | $ 33.80 | $ 26.58 | $ 16.07 | $ 38.25 |
Total Return B, C | 5.99% | (7.13)% | 28.87% | 65.94% | (53.53)% | 80.97% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.11% A | 1.10% | 1.14% | 1.25% | 1.20% | 1.16% |
Expenses net of fee waivers, if any | 1.11% A | 1.10% | 1.14% | 1.25% | 1.20% | 1.16% |
Expenses net of all reductions | 1.09% A | 1.06% | 1.10% | 1.16% | 1.11% | 1.08% |
Net investment income (loss) | .47% A | 1.41% | 1.16% | 1.18% | 1.03% | 1.20% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 54,360 | $ 49,888 | $ 45,042 | $ 23,888 | $ 5,933 | $ 16,300 |
Portfolio turnover rate F | 77% A | 119% | 138% | 91% | 92% H | 66% |
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 The portfolio turnover rate does not include the assets acquired in the merger.
I Amount represents less than $.01 per share.
J Total distributions of $2.09 per share is comprised of distributions from net investment income of $.288 and distributions from net realized gain of $1.805 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor® Emerging Asia Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
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 the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
(ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are 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 each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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 rate 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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund received a final ruling from the Authority for Advance Ruling in India regarding the applicability of taxes imposed by the country on realized capital gains under the US/India tax treaty. The ruling entitled the Fund to a refund of capital gains taxes paid in prior years and exempts the Fund from taxes on future realized gains. The India Central Board of Direct Taxation may challenge the ruling at any time which could result in the reversal of some or all of the benefits recorded by the Fund.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC) 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 | $ 64,400,868 |
Gross unrealized depreciation | (19,554,050) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 44,846,818 |
| |
Tax cost | $ 334,474,735 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $143,496,366 and $172,534,082, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 219,946 | $ 5,655 |
Class T | .25% | .25% | 135,526 | 1,091 |
Class B | .75% | .25% | 97,112 | 72,967 |
Class C | .75% | .25% | 385,211 | 62,505 |
| | | $ 837,795 | $ 142,218 |
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, 1.00% for Class C, 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
by FDC |
Class A | $ 52,230 |
Class T | 10,568 |
Class B* | 21,013 |
Class C* | 8,150 |
| $ 91,961 |
* 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
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, 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
Average
Net Assets* |
Class A | $ 237,822 | .27 |
Class T | 84,127 | .31 |
Class B | 29,123 | .30 |
Class C | 100,920 | .26 |
Institutional Class | 50,875 | .21 |
| $ 502,867 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $55 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan
Balance | Weighted
Average Interest
Rate | Interest Expense |
Borrower | $ 5,439,222 | .35% | $ 470 |
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $559 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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 $58,328. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $45,480 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net investment income | | |
Class A | $ 1,898,062 | $ 1,195,236 |
Class T | 399,039 | 238,089 |
Class C | 179,759 | 129,641 |
Institutional Class | 693,936 | 411,224 |
Total | $ 3,170,796 | $ 1,974,190 |
From net realized gain | | |
Class A | $ 7,604,613 | $ 10,575,420 |
Class T | 2,417,821 | 3,522,540 |
Class B | 945,064 | 1,697,909 |
Class C | 3,624,620 | 5,318,244 |
Institutional Class | 2,051,782 | 2,577,289 |
Total | $ 16,643,900 | $ 23,691,402 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 666,457 | 2,202,556 | $ 18,651,183 | $ 71,049,522 |
Reinvestment of distributions | 303,306 | 309,654 | 8,125,557 | 9,819,123 |
Shares redeemed | (1,079,433) | (2,005,332) | (29,866,716) | (62,867,653) |
Net increase (decrease) | (109,670) | 506,878 | $ (3,089,976) | $ 18,000,992 |
Class T | | | | |
Shares sold | 163,150 | 487,526 | $ 4,429,328 | $ 15,326,473 |
Reinvestment of distributions | 105,155 | 118,542 | 2,751,895 | 3,673,606 |
Shares redeemed | (307,421) | (538,208) | (8,322,987) | (16,492,902) |
Net increase (decrease) | (39,116) | 67,860 | $ (1,141,764) | $ 2,507,177 |
Class B | | | | |
Shares sold | 9,384 | 65,556 | $ 246,078 | $ 2,016,841 |
Reinvestment of distributions | 30,756 | 44,891 | 769,523 | 1,329,672 |
Shares redeemed | (129,586) | (291,995) | (3,357,223) | (8,641,379) |
Net increase (decrease) | (89,446) | (181,548) | $ (2,341,622) | $ (5,294,866) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Class C | | | | |
Shares sold | 213,350 | 976,733 | $ 5,458,684 | $ 29,282,683 |
Reinvestment of distributions | 125,179 | 152,906 | 3,103,186 | 4,496,965 |
Shares redeemed | (392,568) | (992,268) | (10,013,769) | (28,874,366) |
Net increase (decrease) | (54,039) | 137,371 | $ (1,451,899) | $ 4,905,282 |
Institutional Class | | | | |
Shares sold | 613,468 | 1,196,148 | $ 17,584,228 | $ 38,645,718 |
Reinvestment of distributions | 64,226 | 57,110 | 1,763,657 | 1,854,949 |
Shares redeemed | (525,998) | (893,992) | (14,637,872) | (28,329,397) |
Net increase (decrease) | 151,696 | 359,266 | $ 4,710,013 | $ 12,171,270 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investment Advisors (UK) Limited
FIL Investments (Japan) Limited
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AEAI-USAN-0612
1.784874.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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://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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.56% | | | |
Actual | | $ 1,000.00 | $ 1,046.30 | $ 7.94 |
Hypothetical A | | $ 1,000.00 | $ 1,017.11 | $ 7.82 |
Class T | 1.82% | | | |
Actual | | $ 1,000.00 | $ 1,044.30 | $ 9.25 |
Hypothetical A | | $ 1,000.00 | $ 1,015.81 | $ 9.12 |
Class B | 2.31% | | | |
Actual | | $ 1,000.00 | $ 1,041.90 | $ 11.73 |
Hypothetical A | | $ 1,000.00 | $ 1,013.38 | $ 11.56 |
Class C | 2.31% | | | |
Actual | | $ 1,000.00 | $ 1,042.00 | $ 11.73 |
Hypothetical A | | $ 1,000.00 | $ 1,013.38 | $ 11.56 |
Institutional Class | 1.24% | | | |
Actual | | $ 1,000.00 | $ 1,047.60 | $ 6.31 |
Hypothetical A | | $ 1,000.00 | $ 1,018.70 | $ 6.22 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 5.1 | 4.3 |
Hyundai Motor Co. (Korea (South), Automobiles) | 2.0 | 2.2 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 1.6 | 1.4 |
Sberbank (Savings Bank of the Russian Federation) (Russia, Commercial Banks) | 1.5 | 1.2 |
CNOOC Ltd. (Hong Kong, Oil, Gas & Consumable Fuels) | 1.4 | 1.9 |
| 11.6 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.3 | 23.6 |
Information Technology | 14.7 | 11.4 |
Energy | 13.4 | 14.2 |
Consumer Discretionary | 12.4 | 10.7 |
Materials | 9.8 | 11.1 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Korea (South) | 20.5 | 20.2 |
Brazil | 10.9 | 15.1 |
Indonesia | 6.9 | 5.3 |
Taiwan | 6.7 | 6.7 |
China | 6.3 | 8.5 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 98.9% | | | Stocks 98.2% | |
 | Bonds 0.1% | |  | Bonds 0.0% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 1.0% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 1.8% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% |
| Shares | | Value |
Bailiwick of Guernsey - 0.2% |
Chariot Oil & Gas Ltd. (a)(d) | 415,951 | | $ 1,194,980 |
Bailiwick of Jersey - 0.2% |
Randgold Resources Ltd. sponsored ADR | 12,850 | | 1,145,578 |
Bermuda - 2.8% |
African Minerals Ltd. (a) | 189,600 | | 1,600,247 |
Aquarius Platinum Ltd.: | | | |
(Australia) | 27,438 | | 62,318 |
(United Kingdom) | 227,289 | | 479,587 |
Cheung Kong Infrastructure Holdings Ltd. | 337,000 | | 2,000,200 |
Credicorp Ltd. (NY Shares) | 31,600 | | 4,136,756 |
Digital China Holdings Ltd. (H Shares) | 1,058,000 | | 2,007,277 |
Great Eagle Holdings Ltd. | 367,000 | | 1,083,217 |
Kunlun Energy Co. Ltd. | 1,840,000 | | 3,244,276 |
TOTAL BERMUDA | | 14,613,878 |
Brazil - 10.9% |
Banco do Brasil SA | 196,900 | | 2,435,749 |
Banco Do Est Rio Grande Sul SA | 283,000 | | 2,452,672 |
BM&F Bovespa SA | 412,700 | | 2,320,984 |
BR Malls Participacoes SA | 262,100 | | 3,256,054 |
BR Properties SA | 87,500 | | 1,085,631 |
Brasil Brokers Participacoes SA | 113,800 | | 389,254 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR (d) | 16,500 | | 775,995 |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 119,500 | | 5,016,610 |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) | 89,800 | | 3,525,762 |
Companhia de Saneamento de Minas Gerais | 86,700 | | 2,022,689 |
Eletropaulo Metropolitana SA (PN-B) | 150,900 | | 2,308,446 |
JBS SA (a) | 356,700 | | 1,403,483 |
Klabin SA (PN) (non-vtg.) | 339,100 | | 1,625,986 |
Localiza Rent A Car SA | 132,600 | | 2,264,318 |
Marfrig Alimentos SA | 171,600 | | 944,356 |
MMX Mineracao e Metalicos SA (a) | 202,200 | | 939,848 |
MMX Mineracao e Metalicos SA (a) | 269,000 | | 574,367 |
Multiplan Empreendimentos Imobiliarios SA | 66,600 | | 1,572,279 |
Multiplus SA | 124,924 | | 2,706,692 |
OGX Petroleo e Gas Participacoes SA (a) | 617,300 | | 4,284,489 |
Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR | 207,010 | | 4,587,342 |
Tegma Gestao Logistica SA | 90,600 | | 1,378,380 |
Common Stocks - continued |
| Shares | | Value |
Brazil - continued |
Ultrapar Participacoes SA | 170,000 | | $ 3,861,711 |
Vale SA (PN-A) sponsored ADR | 211,210 | | 4,568,472 |
TOTAL BRAZIL | | 56,301,569 |
British Virgin Islands - 0.7% |
Gem Diamonds Ltd. (a) | 174,400 | | 733,148 |
Mail.ru Group Ltd. GDR (a)(e) | 68,500 | | 2,962,625 |
TOTAL BRITISH VIRGIN ISLANDS | | 3,695,773 |
Canada - 0.5% |
First Quantum Minerals Ltd. | 129,800 | | 2,696,528 |
Cayman Islands - 5.8% |
Baidu.com, Inc. sponsored ADR (a) | 22,915 | | 3,040,821 |
Changyou.com Ltd. (A Shares) ADR (a)(d) | 18,800 | | 455,336 |
China Liansu Group Holdings Ltd. | 2,478,000 | | 1,558,601 |
China Metal Recycling (Holdings) Ltd. | 1,468,200 | | 1,684,182 |
China Shanshui Cement Group Ltd. | 3,369,000 | | 2,731,275 |
Country Garden Holdings Co. Ltd. | 4,643,000 | | 2,016,705 |
Eurasia Drilling Co. Ltd. GDR (Reg. S) | 74,563 | | 2,125,046 |
Focus Media Holding Ltd. ADR (d) | 40,400 | | 965,156 |
Lee & Man Paper Manufacturing Ltd. | 3,563,000 | | 1,671,595 |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a) | 153,400 | | 2,380,768 |
Mongolian Mining Corp. (a) | 1,295,000 | | 1,043,191 |
NetEase.com, Inc. sponsored ADR (a) | 41,000 | | 2,473,120 |
Shanda Games Ltd. sponsored ADR | 328,450 | | 1,740,785 |
Shenguan Holdings Group Ltd. | 30,000 | | 16,240 |
Shenzhou International Group Holdings Ltd. | 1,508,000 | | 2,837,710 |
SOHO China Ltd. | 2,099,000 | | 1,631,337 |
Vinda International Holdings Ltd. | 1,074,000 | | 1,913,049 |
TOTAL CAYMAN ISLANDS | | 30,284,917 |
Chile - 1.0% |
CFR Pharmaceuticals SA | 8,064,456 | | 2,013,205 |
Compania Cervecerias Unidas SA sponsored ADR | 25,100 | | 1,797,662 |
Embotelladora Andina SA: | | | |
Class A | 219,129 | | 993,782 |
Class B | 94,864 | | 502,578 |
TOTAL CHILE | | 5,307,227 |
China - 6.3% |
Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd. (H Shares) | 786,800 | | 1,174,321 |
China CITIC Bank Corp. Ltd. (H Shares) | 6,113,000 | | 3,892,200 |
China Communications Construction Co. Ltd. (H Shares) | 3,781,000 | | 3,801,151 |
Common Stocks - continued |
| Shares | | Value |
China - continued |
China Communications Services Corp. Ltd. (H Shares) | 6,118,000 | | $ 3,146,272 |
China Minsheng Banking Corp. Ltd. (H Shares) | 4,886,000 | | 5,069,477 |
China Petroleum & Chemical Corp.: | | | |
(H Shares) | 2,400,000 | | 2,549,066 |
sponsored ADR (H Shares) (d) | 14,600 | | 1,539,862 |
China Ship Container Lines Co. Ltd. (H Shares) (a) | 6,881,000 | | 2,243,809 |
China Southern Airlines Ltd. (H Shares) (a) | 3,878,000 | | 1,744,404 |
Great Wall Motor Co. Ltd. (H Shares) | 1,614,000 | | 3,486,514 |
Huadian Power International Corp. Ltd. (H shares) (a) | 6,998,000 | | 1,614,510 |
Yantai Changyu Pioneer Wine Co. (B Shares) | 227,939 | | 2,409,053 |
TOTAL CHINA | | 32,670,639 |
Colombia - 1.6% |
Almacenes Exito SA | 106,063 | | 1,721,198 |
BanColombia SA sponsored ADR | 24,400 | | 1,655,052 |
Ecopetrol SA ADR (d) | 73,900 | | 4,781,330 |
TOTAL COLOMBIA | | 8,157,580 |
Czech Republic - 1.0% |
Ceske Energeticke Zavody A/S | 76,450 | | 3,082,913 |
Philip Morris CR A/S | 3,397 | | 1,973,312 |
TOTAL CZECH REPUBLIC | | 5,056,225 |
Hong Kong - 4.8% |
AIA Group Ltd. | 521,600 | | 1,855,498 |
China Mobile Ltd. | 643,500 | | 7,119,377 |
China Power International Development Ltd. | 9,636,000 | | 2,185,865 |
CNOOC Ltd. | 3,536,000 | | 7,472,094 |
Dah Chong Hong Holdings Ltd. | 3,000 | | 3,194 |
Guangdong Investment Ltd. | 3,516,000 | | 2,587,610 |
Lenovo Group Ltd. | 3,620,000 | | 3,480,657 |
Singamas Container Holdings Ltd. | 1,220,000 | | 366,378 |
TOTAL HONG KONG | | 25,070,673 |
Hungary - 0.5% |
Magyar Telekom PLC | 1,074,676 | | 2,708,955 |
India - 4.3% |
Bank of Baroda | 209,047 | | 3,056,020 |
Bharat Petroleum Corp. Ltd. | 142,378 | | 1,813,079 |
Hero Motocorp Ltd. | 50,888 | | 2,165,433 |
Hindustan Unilever Ltd. | 376,237 | | 2,983,321 |
Housing Development and Infrastructure Ltd. (a) | 944,681 | | 1,444,870 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Tata Motors Ltd. | 749,277 | | $ 4,481,489 |
Tata Steel Ltd. | 388,190 | | 3,417,532 |
Ultratech Cemco Ltd. | 105,054 | | 2,842,333 |
TOTAL INDIA | | 22,204,077 |
Indonesia - 6.9% |
PT Adaro Energy Tbk | 3,802,500 | | 769,561 |
PT AKR Corporindo Tbk | 576,500 | | 258,752 |
PT Astra International Tbk | 622,500 | | 4,809,042 |
PT Bank Mandiri (Persero) Tbk | 3,669,000 | | 2,954,203 |
PT Bank Rakyat Indonesia Tbk | 5,943,500 | | 4,300,557 |
PT Bank Tabungan Negara Tbk | 27,500 | | 4,129 |
PT Bumi Serpong Damai Tbk | 11,588,100 | | 1,803,056 |
PT BW Plantation Tbk | 4,889,500 | | 819,306 |
PT Ciputra Development Tbk | 14,439,000 | | 1,194,020 |
PT Gadjah Tunggal Tbk | 4,696,500 | | 1,315,868 |
PT Global Mediacom Tbk | 4,665,000 | | 842,598 |
PT Harum Energy Tbk | 205,500 | | 159,874 |
PT Indocement Tunggal Prakarsa Tbk | 1,282,000 | | 2,517,828 |
PT Media Nusantara Citra Tbk | 1,175,000 | | 287,661 |
PT Mitra Adiperkasa Tbk | 2,202,500 | | 1,665,565 |
PT Resource Alam Indonesia Tbk | 949,500 | | 635,376 |
PT Sampoerna Agro Tbk | 1,399,500 | | 498,707 |
PT Semen Gresik (Persero) Tbk | 1,299,500 | | 1,717,961 |
PT Summarecon Agung Tbk | 9,495,000 | | 1,787,318 |
PT Tower Bersama Infrastructure Tbk | 9,290,500 | | 3,083,186 |
PT United Tractors Tbk | 786,500 | | 2,533,094 |
PT XL Axiata Tbk | 2,737,500 | | 1,608,454 |
TOTAL INDONESIA | | 35,566,116 |
Ireland - 0.1% |
Dragon Oil PLC | 54,023 | | 514,271 |
Israel - 0.3% |
Bezeq Israeli Telecommunication Corp. Ltd. | 990,700 | | 1,657,833 |
Kazakhstan - 0.3% |
JSC Halyk Bank of Kazakhstan GDR unit (a) | 80,299 | | 542,018 |
KazMunaiGas Exploration & Production JSC (Reg. S) GDR | 37,200 | | 744,000 |
TOTAL KAZAKHSTAN | | 1,286,018 |
Korea (South) - 20.5% |
CJ CheilJedang Corp. | 10,123 | | 3,350,074 |
CJ Corp. | 242 | | 16,724 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
Daelim Industrial Co. | 22,754 | | $ 2,114,076 |
Daewoo Shipbuilding & Marine Engineering Co. Ltd. | 96,570 | | 2,708,788 |
Dongbu Insurance Co. Ltd. | 55,282 | | 2,211,036 |
Hana Financial Group, Inc. | 133,840 | | 4,600,982 |
Hi-Mart Co. Ltd. | 24,763 | | 1,279,646 |
Hotel Shilla Co. | 63,810 | | 2,986,882 |
Hyundai Department Store Co. Ltd. | 18,839 | | 2,658,839 |
Hyundai Fire & Marine Insurance Co. Ltd. | 96,140 | | 2,467,037 |
Hyundai Glovis Co. Ltd. | 4,468 | | 875,710 |
Hyundai Hysco Co. Ltd. | 80,630 | | 2,850,277 |
Hyundai Motor Co. | 43,481 | | 10,330,406 |
Hyundai Wia Corp. | 9,277 | | 1,387,292 |
Interflex Co. Ltd. | 5,308 | | 289,325 |
Kia Motors Corp. | 78,019 | | 5,757,580 |
Korea Investment Holdings Co. Ltd. | 60,090 | | 2,073,674 |
Korean Reinsurance Co. | 109,767 | | 1,330,656 |
KT&G Corp. | 41,016 | | 2,816,363 |
LG Chemical Ltd. | 11,648 | | 2,932,292 |
LIG Non-Life Insurance Co. Ltd. | 68,970 | | 1,434,173 |
Lotte Samkang Co. Ltd. | 2,818 | | 1,201,881 |
Mando Corp. | 5,360 | | 858,454 |
Nong Shim Co. Ltd. | 10,795 | | 2,163,538 |
Orion Corp. | 4,756 | | 3,779,129 |
Paradise Co. Ltd. | 213,918 | | 1,892,871 |
Samsung C&T Corp. | 25,585 | | 1,738,682 |
Samsung Electronics Co. Ltd. | 21,668 | | 26,650,613 |
Samsung Heavy Industries Ltd. | 122,030 | | 4,502,734 |
Shinhan Financial Group Co. Ltd. | 140,012 | | 4,893,684 |
Silicon Works Co. Ltd. | 8,848 | | 221,567 |
Sung Kwang Bend Co. Ltd. | 56,824 | | 1,166,523 |
TK Corp. (a) | 20,452 | | 554,677 |
Woongjin Coway Co. Ltd. | 8,400 | | 269,068 |
TOTAL KOREA (SOUTH) | | 106,365,253 |
Malaysia - 0.0% |
IJM Plantation Bhd | 78,900 | | 85,537 |
Mexico - 1.4% |
CEMEX SA de CV sponsored ADR (d) | 511,680 | | 3,699,446 |
Genomma Lab Internacional SA de CV (a) | 564,100 | | 994,997 |
Gruma SAB de CV Series B (a) | 380,600 | | 1,054,609 |
Common Stocks - continued |
| Shares | | Value |
Mexico - continued |
Grupo Financiero Banorte SAB de CV Series O | 285,600 | | $ 1,383,477 |
Grupo Modelo SAB de CV Series C | 1,200 | | 8,473 |
TOTAL MEXICO | | 7,141,002 |
Nigeria - 0.6% |
Guaranty Trust Bank PLC GDR (Reg. S) | 570,997 | | 3,283,233 |
Panama - 0.6% |
Copa Holdings SA Class A | 36,328 | | 2,953,830 |
Philippines - 1.1% |
Globe Telecom, Inc. | 4,465 | | 118,813 |
International Container Terminal Services, Inc. | 536,100 | | 864,575 |
Manila Water Co., Inc. | 962,800 | | 564,002 |
Philippine National Bank (a) | 1,149,780 | | 2,053,325 |
Security Bank Corp. | 558,940 | | 1,895,611 |
TOTAL PHILIPPINES | | 5,496,326 |
Poland - 0.5% |
KGHM Polska Miedz SA (Bearer) | 53,700 | | 2,363,996 |
Russia - 4.8% |
Cherkizovo Group OJSC GDR (a) | 101,994 | | 1,331,022 |
Gazprom OAO sponsored ADR | 471,725 | | 5,410,686 |
Magnit OJSC | 12,600 | | 1,587,151 |
Mobile TeleSystems OJSC sponsored ADR | 27,100 | | 530,076 |
NOVATEK OAO GDR (Reg. S) | 37,098 | | 4,715,156 |
Sberbank (Savings Bank of the Russian Federation) | 2,459,100 | | 7,872,703 |
Tatneft OAO sponsored ADR | 96,200 | | 3,559,400 |
TOTAL RUSSIA | | 25,006,194 |
Singapore - 0.5% |
Ezion Holdings Ltd. | 1,022,000 | | 718,410 |
First Resources Ltd. | 1,293,000 | | 1,964,077 |
TOTAL SINGAPORE | | 2,682,487 |
South Africa - 6.2% |
African Bank Investments Ltd. | 681,147 | | 3,402,232 |
AVI Ltd. | 135,100 | | 837,210 |
Barloworld Ltd. | 240,900 | | 3,035,253 |
Capitec Bank Holdings Ltd. | 400 | | 11,417 |
Exxaro Resources Ltd. | 75,400 | | 2,006,660 |
Foschini Ltd. | 208,224 | | 3,447,556 |
Imperial Holdings Ltd. | 187,551 | | 4,070,759 |
Life Healthcare Group Holdings Ltd. | 764,400 | | 2,641,691 |
Common Stocks - continued |
| Shares | | Value |
South Africa - continued |
Mpact Ltd. | 248,800 | | $ 544,430 |
Mr Price Group Ltd. | 188,000 | | 2,542,762 |
Murray & Roberts Holdings Ltd. (a) | 140,351 | | 515,895 |
PSG Group Ltd. (f) | 108,368 | | 823,418 |
Sappi Ltd. (a) | 598,329 | | 2,167,000 |
Sasol Ltd. | 22,700 | | 1,078,616 |
Sasol Ltd. sponsored ADR | 33,178 | | 1,573,633 |
Tiger Brands Ltd. | 92,800 | | 3,400,360 |
TOTAL SOUTH AFRICA | | 32,098,892 |
Taiwan - 6.7% |
Advanced Semiconductor Engineering, Inc. | 526,000 | | 529,913 |
Advanced Semiconductor Engineering, Inc. sponsored ADR | 477,400 | | 2,420,418 |
ASUSTeK Computer, Inc. | 267,000 | | 2,701,595 |
Catcher Technology Co. Ltd. | 236,000 | | 1,513,703 |
Chinatrust Financial Holding Co. Ltd. | 203,712 | | 130,311 |
Evergreen Marine Corp. (Taiwan) | 1,746,000 | | 1,030,053 |
Formosa Chemicals & Fibre Corp. | 2,000 | | 5,810 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 2,355,000 | | 7,463,625 |
HTC Corp. | 155,202 | | 2,358,240 |
Pegatron Corp. | 1,818,000 | | 2,637,674 |
Radiant Opto-Electronics Corp. | 183,000 | | 772,046 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,463,534 | | 7,294,672 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 65,600 | | 1,022,048 |
TECO Electric & Machinery Co. Ltd. | 1,037,000 | | 761,166 |
Wistron Corp. | 2,153,000 | | 3,238,177 |
Yang Ming Marine Transport Corp. | 975,000 | | 414,680 |
Yieh Phui Enterprise Co. | 1,293,000 | | 445,709 |
TOTAL TAIWAN | | 34,739,840 |
Thailand - 4.1% |
Advanced Info Service PCL (For. Reg.) | 696,900 | | 4,146,731 |
Asian Property Development PCL (For. Reg.) | 5,555,400 | | 1,237,343 |
Bangkok Expressway PCL (For.Reg.) | 2,167,900 | | 1,649,451 |
Bumrungrad Hospital PCL (For. Reg.) | 291,700 | | 578,563 |
Charoen Pokphand Foods PCL (For. Reg.) | 1,585,700 | | 2,101,033 |
PTT Global Chemical PCL (For. Reg.) | 721,170 | | 1,612,110 |
PTT PCL (For. Reg.) | 418,300 | | 4,773,965 |
Siam Commercial Bank PCL (For. Reg.) | 884,300 | | 4,456,722 |
Thai Tap Water Supply PCL | 2,373,000 | | 501,528 |
TOTAL THAILAND | | 21,057,446 |
Common Stocks - continued |
| Shares | | Value |
Turkey - 1.2% |
Tekfen Holding A/S | 254,000 | | $ 925,213 |
Turkiye Garanti Bankasi A/S | 882,375 | | 3,244,247 |
Turkiye Halk Bankasi A/S | 315,000 | | 2,205,179 |
TOTAL TURKEY | | 6,374,639 |
United Arab Emirates - 0.2% |
NMC Health PLC | 302,235 | | 1,027,718 |
United Kingdom - 1.7% |
Afren PLC (a) | 251,900 | | 549,915 |
Anglo American PLC (United Kingdom) | 100 | | 3,844 |
International Personal Finance PLC | 618,414 | | 2,687,033 |
Ophir Energy PLC | 228,240 | | 2,137,533 |
RusPetro PLC | 262,500 | | 805,261 |
Tullow Oil PLC | 103,000 | | 2,564,530 |
TOTAL UNITED KINGDOM | | 8,748,116 |
United States of America - 0.1% |
Cognizant Technology Solutions Corp. Class A (a) | 6,700 | | 491,244 |
TOTAL COMMON STOCKS (Cost $463,977,340) |
510,048,590
|
Nonconvertible Preferred Stocks - 0.5% |
| | | |
Russia - 0.5% |
Surgutneftegaz JSC
(Cost $2,621,944) | 3,713,200 | |
2,473,107
|
Convertible Bonds - 0.1% |
| Principal Amount | | |
Canada - 0.1% |
Ivanplats Ltd. 8% 11/10/14 pay-in-kind (g)(h)
(Cost $355,749) | | $ 343,000 | |
355,725
|
Money Market Funds - 2.4% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.14% (b) | 6,337,859 | | $ 6,337,859 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 6,195,379 | | 6,195,379 |
TOTAL MONEY MARKET FUNDS (Cost $12,533,238) |
12,533,238
|
TOTAL INVESTMENT PORTFOLIO - 101.4% (Cost $479,488,271) | | 525,410,660 |
NET OTHER ASSETS (LIABILITIES) - (1.4)% | | (7,073,917) |
NET ASSETS - 100% | $ 518,336,743 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 $2,962,625 or 0.6% of net assets. |
(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) 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 $355,725 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Ivanplats Ltd. 8% 11/10/14 pay-in-kind | 3/28/12 | $ 355,749 |
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 | $ 2,926 |
Fidelity Securities Lending Cash Central Fund | 19,966 |
Total | $ 22,892 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 tables below, please refer to the Security 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 | $ 62,723,113 | $ 56,961,978 | $ 4,481,489 | $ 1,279,646 |
Consumer Staples | 49,449,109 | 49,449,109 | - | - |
Energy | 70,636,569 | 59,536,793 | 11,099,776 | - |
Financials | 105,636,549 | 105,636,549 | - | - |
Health Care | 7,256,174 | 7,256,174 | - | - |
Industrials | 45,857,930 | 45,857,930 | - | - |
Information Technology | 75,765,481 | 67,940,896 | 7,824,585 | - |
Materials | 50,683,550 | 50,683,550 | - | - |
Telecommunication Services | 24,119,697 | 17,000,320 | 7,119,377 | - |
Utilities | 20,393,525 | 20,393,525 | - | - |
Corporate Bonds | 355,725 | - | - | 355,725 |
Money Market Funds | 12,533,238 | 12,533,238 | - | - |
Total Investments in Securities: | $ 525,410,660 | $ 493,250,062 | $ 30,525,227 | $ 1,635,371 |
Transfers from Level 2 to Level 1 during the period were $156,948,900. |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (50,310) |
Cost of Purchases | 1,685,681 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 1,635,371 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2012 | $ (50,310) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $5,972,434) - See accompanying schedule: Unaffiliated issuers (cost $466,955,033) | $ 512,877,422 | |
Fidelity Central Funds (cost $12,533,238) | 12,533,238 | |
Total Investments (cost $479,488,271) | | $ 525,410,660 |
Foreign currency held at value (cost $2) | | 2 |
Receivable for investments sold | | 5,204,760 |
Receivable for fund shares sold | | 562,355 |
Dividends receivable | | 2,462,458 |
Interest receivable | | 13,052 |
Distributions receivable from Fidelity Central Funds | | 3,744 |
Prepaid expenses | | 561 |
Other receivables | | 192,668 |
Total assets | | 533,850,260 |
| | |
Liabilities | | |
Payable for investments purchased
Regular delivery | $ 7,175,671 | |
Delayed delivery | 24,845 | |
Payable for fund shares redeemed | 1,306,172 | |
Accrued management fee | 348,750 | |
Distribution and service plan fees payable | 150,279 | |
Other affiliated payables | 145,839 | |
Other payables and accrued expenses | 166,582 | |
Collateral on securities loaned, at value | 6,195,379 | |
Total liabilities | | 15,513,517 |
| | |
Net Assets | | $ 518,336,743 |
Net Assets consist of: | | |
Paid in capital | | $ 546,644,862 |
Distributions in excess of net investment income | | (252,471) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (73,940,026) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 45,884,378 |
Net Assets | | $ 518,336,743 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($189,147,330 ÷ 8,884,577 shares) | | $ 21.29 |
| | |
Maximum offering price per share (100/94.25 of $21.29) | | $ 22.59 |
Class T:
Net Asset Value and redemption price per share ($70,693,509 ÷ 3,327,539 shares) | | $ 21.24 |
| | |
Maximum offering price per share (100/96.50 of $21.24) | | $ 22.01 |
Class B:
Net Asset Value and offering price per share ($19,738,619 ÷ 945,693 shares)A | | $ 20.87 |
| | |
Class C:
Net Asset Value and offering price per share ($77,194,224 ÷ 3,703,991 shares)A | | $ 20.84 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($161,563,061 ÷ 7,562,590 shares) | | $ 21.36 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 5,423,650 |
Interest | | 2,581 |
Income from Fidelity Central Funds | | 22,892 |
Income before foreign taxes withheld | | 5,449,123 |
Less foreign taxes withheld | | (567,669) |
Total income | | 4,881,454 |
| | |
Expenses | | |
Management fee | $ 2,077,577 | |
Transfer agent fees | 719,557 | |
Distribution and service plan fees | 906,111 | |
Accounting and security lending fees | 133,953 | |
Custodian fees and expenses | 264,326 | |
Independent trustees' compensation | 1,542 | |
Registration fees | 64,147 | |
Audit | 47,981 | |
Legal | 981 | |
Miscellaneous | 2,665 | |
Total expenses before reductions | 4,218,840 | |
Expense reductions | (248,853) | 3,969,987 |
Net investment income (loss) | | 911,467 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,129,040 | |
Foreign currency transactions | (277,011) | |
Total net realized gain (loss) | | 3,852,029 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 18,805,263 | |
Assets and liabilities in foreign currencies | 24,110 | |
Total change in net unrealized appreciation (depreciation) | | 18,829,373 |
Net gain (loss) | | 22,681,402 |
Net increase (decrease) in net assets resulting from operations | | $ 23,592,869 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 911,467 | $ 5,371,636 |
Net realized gain (loss) | 3,852,029 | 51,309,170 |
Change in net unrealized appreciation (depreciation) | 18,829,373 | (134,170,344) |
Net increase (decrease) in net assets resulting
from operations | 23,592,869 | (77,489,538) |
Distributions to shareholders from net investment income | (3,344,878) | (3,137,543) |
Distributions to shareholders from net realized gain | - | (3,336,770) |
Total distributions | (3,344,878) | (6,474,313) |
Share transactions - net increase (decrease) | (18,049,810) | (114,129,705) |
Redemption fees | 44,349 | 141,338 |
Total increase (decrease) in net assets | 2,242,530 | (197,952,218) |
| | |
Net Assets | | |
Beginning of period | 516,094,213 | 714,046,431 |
End of period (including distributions in excess of net investment income of $252,471 and undistributed net investment income of $2,180,940, respectively) | $ 518,336,743 | $ 516,094,213 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.50 | $ 23.71 | $ 19.20 | $ 12.59 | $ 32.75 | $ 19.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .21 | .12 | .10 | .24 | .09 |
Net realized and unrealized gain (loss) | .89 | (3.19) | 4.59 | 6.64 | (19.61) | 13.46 |
Total from investment operations | .94 | (2.98) | 4.71 | 6.74 | (19.37) | 13.55 |
Distributions from net investment income | (.15) | (.11) | (.07) | (.14) | (.02) | (.03) |
Distributions from net realized gain | - | (.13) | (.13) | - | (.79) | - |
Total distributions | (.15) | (.24) | (.20) | (.14) | (.81) | (.03) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .02 | .01 |
Net asset value, end of period | $ 21.29 | $ 20.50 | $ 23.71 | $ 19.20 | $ 12.59 | $ 32.75 |
Total Return B,C,D | 4.63% | (12.69)% | 24.69% | 54.54% | (60.55)% | 70.63% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.56% A | 1.54% | 1.56% | 1.60% | 1.59% | 1.59% |
Expenses net of fee waivers, if any | 1.56% A | 1.54% | 1.56% | 1.60% | 1.59% | 1.59% |
Expenses net of all reductions | 1.46% A | 1.47% | 1.50% | 1.53% | 1.53% | 1.54% |
Net investment income (loss) | .44% A | .92% | .59% | .70% | .94% | .36% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 189,147 | $ 202,477 | $ 286,970 | $ 216,187 | $ 122,911 | $ 218,836 |
Portfolio turnover rate G | 193% A | 122% | 86% | 85% | 61% | 48% |
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 $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.43 | $ 23.61 | $ 19.14 | $ 12.49 | $ 32.52 | $ 19.10 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .15 | .07 | .07 | .17 | .03 |
Net realized and unrealized gain (loss) | .88 | (3.18) | 4.57 | 6.64 | (19.48) | 13.38 |
Total from investment operations | .90 | (3.03) | 4.64 | 6.71 | (19.31) | 13.41 |
Distributions from net investment income | (.09) | (.04) | (.04) | (.07) | - | - |
Distributions from net realized gain | - | (.13) | (.13) | - | (.74) | - |
Total distributions | (.09) | (.16) J | (.17) | (.07) | (.74) | - |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .02 | .01 |
Net asset value, end of period | $ 21.24 | $ 20.43 | $ 23.61 | $ 19.14 | $ 12.49 | $ 32.52 |
Total Return B,C,D | 4.43% | (12.89)% | 24.38% | 54.17% | (60.66)% | 70.26% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.82% A | 1.79% | 1.81% | 1.87% | 1.84% | 1.86% |
Expenses net of fee waivers, if any | 1.82% A | 1.79% | 1.81% | 1.85% | 1.84% | 1.85% |
Expenses net of all reductions | 1.72% A | 1.73% | 1.76% | 1.78% | 1.79% | 1.79% |
Net investment income (loss) | .18% A | .66% | .33% | .44% | .69% | .11% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 70,694 | $ 73,146 | $ 104,417 | $ 86,959 | $ 47,300 | $ 119,952 |
Portfolio turnover rate G | 193% A | 122% | 86% | 85% | 61% | 48% |
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 $.01 per share. J Total distributions of $.16 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.125 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.03 | $ 23.14 | $ 18.80 | $ 12.26 | $ 32.03 | $ 18.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | .04 | (.03) | (.01) | .04 | (.09) |
Net realized and unrealized gain (loss) | .87 | (3.13) | 4.49 | 6.55 | (19.13) | 13.20 |
Total from investment operations | .84 | (3.09) | 4.46 | 6.54 | (19.09) | 13.11 |
Distributions from net investment income | - | (.01) | - | - | - | - |
Distributions from net realized gain | - | (.03) | (.12) | - | (.70) | - |
Total distributions | - | (.03) J | (.12) | - | (.70) | - |
Redemption fees added to paid in capital E | - I | .01 | - I | - I | .02 | .01 |
Net asset value, end of period | $ 20.87 | $ 20.03 | $ 23.14 | $ 18.80 | $ 12.26 | $ 32.03 |
Total Return B,C,D | 4.19% | (13.33)% | 23.77% | 53.34% | (60.83)% | 69.38% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.31% A | 2.29% | 2.32% | 2.36% | 2.35% | 2.37% |
Expenses net of fee waivers, if any | 2.31% A | 2.29% | 2.32% | 2.35% | 2.35% | 2.35% |
Expenses net of all reductions | 2.21% A | 2.22% | 2.26% | 2.28% | 2.30% | 2.29% |
Net investment income (loss) | (.31)% A | .16% | (.17)% | (.05)% | .18% | (.39)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 19,739 | $ 21,304 | $ 31,159 | $ 27,580 | $ 17,307 | $ 41,042 |
Portfolio turnover rate G | 193% A | 122% | 86% | 85% | 61% | 48% |
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 $.01 per share. J Total distributions of $.03 per share is comprised of distributions from net investment income of $.005 and distributions from net realized gain of $.025 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.00 | $ 23.13 | $ 18.80 | $ 12.26 | $ 32.04 | $ 18.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | .04 | (.03) | (.01) | .05 | (.09) |
Net realized and unrealized gain (loss) | .87 | (3.12) | 4.49 | 6.54 | (19.15) | 13.21 |
Total from investment operations | .84 | (3.08) | 4.46 | 6.53 | (19.10) | 13.12 |
Distributions from net investment income | - | (.01) | - | - | - | - |
Distributions from net realized gain | - | (.05) | (.13) | - | (.70) | - |
Total distributions | - | (.06) | (.13) | - | (.70) | - |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .02 | .01 |
Net asset value, end of period | $ 20.84 | $ 20.00 | $ 23.13 | $ 18.80 | $ 12.26 | $ 32.04 |
Total Return B,C,D | 4.20% | (13.33)% | 23.80% | 53.34% | (60.84)% | 69.43% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.31% A | 2.28% | 2.30% | 2.34% | 2.34% | 2.34% |
Expenses net of fee waivers, if any | 2.31% A | 2.28% | 2.30% | 2.34% | 2.34% | 2.34% |
Expenses net of all reductions | 2.21% A | 2.22% | 2.24% | 2.28% | 2.29% | 2.29% |
Net investment income (loss) | (.31)% A | .17% | (.15)% | (.05)% | .19% | (.39)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 77,194 | $ 80,855 | $ 106,711 | $ 83,939 | $ 44,878 | $ 104,885 |
Portfolio turnover rate G | 193% A | 122% | 86% | 85% | 61% | 48% |
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 $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.63 | $ 23.87 | $ 19.29 | $ 12.71 | $ 33.02 | $ 19.34 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .08 | .29 | .20 | .15 | .31 | .18 |
Net realized and unrealized gain (loss) | .89 | (3.21) | 4.62 | 6.65 | (19.76) | 13.55 |
Total from investment operations | .97 | (2.92) | 4.82 | 6.80 | (19.45) | 13.73 |
Distributions from net investment income | (.24) | (.20) | (.11) | (.23) | (.09) | (.06) |
Distributions from net realized gain | - | (.13) | (.13) | - | (.79) | - |
Total distributions | (.24) | (.33) | (.24) | (.23) | (.88) | (.06) |
Redemption fees added to paid in capital D | - H | .01 | - H | .01 | .02 | .01 |
Net asset value, end of period | $ 21.36 | $ 20.63 | $ 23.87 | $ 19.29 | $ 12.71 | $ 33.02 |
Total Return B,C | 4.76% | (12.41)% | 25.15% | 54.97% | (60.42)% | 71.23% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.24% A | 1.21% | 1.22% | 1.30% | 1.27% | 1.25% |
Expenses net of fee waivers, if any | 1.24% A | 1.21% | 1.22% | 1.30% | 1.27% | 1.25% |
Expenses net of all reductions | 1.14% A | 1.14% | 1.17% | 1.23% | 1.21% | 1.19% |
Net investment income (loss) | .76% A | 1.25% | .93% | .99% | 1.26% | .71% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 161,563 | $ 138,312 | $ 184,789 | $ 106,713 | $ 47,557 | $ 52,011 |
Portfolio turnover rate F | 193% A | 122% | 86% | 85% | 61% | 48% |
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 $.01 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor® Emerging Markets Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security 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 value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant 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 are used and are categorized as Level 2 in the
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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 rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), 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 | $ 69,424,302 |
Gross unrealized depreciation | (26,570,443) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 42,853,859 |
| |
Tax cost | $ 482,556,801 |
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. At October 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (70,963,758) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies.
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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $490,877,745 and $507,659,378, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .55% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .81% 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 FMR, 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,
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 239,797 | $ 5,422 |
Class T | .25% | .25% | 177,880 | 1,203 |
Class B | .75% | .25% | 101,953 | 76,613 |
Class C | .75% | .25% | 386,481 | 40,644 |
| | | $ 906,111 | $ 123,882 |
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, 1.00% for Class C, 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
by FDC |
Class A | $ 46,683 |
Class T | 14,649 |
Class B* | 20,940 |
Class C* | 3,310 |
| $ 85,582 |
* 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 FMR, 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:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Class A | $ 286,403 | .30 |
Class T | 108,951 | .31 |
Class B | 30,536 | .30 |
Class C | 115,869 | .30 |
Institutional Class | 177,798 | .23 |
| $ 719,557 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $24 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $766 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
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
Semiannual Report
8. Security Lending - continued
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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. 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 $19,966, including $2 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $248,821 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 $32.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net investment income | | |
Class A | $ 1,451,148 | $ 1,359,820 |
Class T | 312,643 | 162,957 |
Class B | - | 6,606 |
Class C | - | 23,592 |
Institutional Class | 1,581,087 | 1,584,568 |
Total | $ 3,344,878 | $ 3,137,543 |
From net realized gain | | |
Class A | $ - | $ 1,530,131 |
Class T | - | 550,254 |
Class B | - | 33,415 |
Class C | - | 232,626 |
Institutional Class | - | 990,344 |
Total | $ - | $ 3,336,770 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2012 | Year ended
October 31,
2011 | Six months ended April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 1,098,369 | 2,979,791 | $ 22,770,665 | $ 70,086,728 |
Reinvestment of distributions | 66,178 | 111,230 | 1,330,840 | 2,675,569 |
Shares redeemed | (2,154,654) | (5,317,665) | (44,151,512) | (123,086,641) |
Net increase (decrease) | (990,107) | (2,226,644) | $ (20,050,007) | $ (50,324,344) |
Class T | | | | |
Shares sold | 357,330 | 883,154 | $ 7,336,053 | $ 20,610,023 |
Reinvestment of distributions | 14,784 | 28,248 | 297,017 | 678,402 |
Shares redeemed | (625,500) | (1,752,649) | (12,822,799) | (40,710,223) |
Net increase (decrease) | (253,386) | (841,247) | $ (5,189,729) | $ (19,421,798) |
Class B | | | | |
Shares sold | 19,763 | 68,462 | $ 405,341 | $ 1,586,905 |
Reinvestment of distributions | - | 1,377 | - | 32,616 |
Shares redeemed | (137,705) | (352,710) | (2,799,805) | (8,040,387) |
Net increase (decrease) | (117,942) | (282,871) | $ (2,394,464) | $ (6,420,866) |
Class C | | | | |
Shares sold | 355,181 | 956,543 | $ 7,220,914 | $ 22,080,298 |
Reinvestment of distributions | - | 9,045 | - | 213,702 |
Shares redeemed | (694,150) | (1,536,376) | (13,877,706) | (34,998,720) |
Net increase (decrease) | (338,969) | (570,788) | $ (6,656,792) | $ (12,704,720) |
Institutional Class | | | | |
Shares sold | 2,264,381 | 2,773,126 | $ 45,492,334 | $ 64,258,215 |
Reinvestment of distributions | 61,950 | 73,837 | 1,248,917 | 1,781,181 |
Shares redeemed | (1,467,778) | (3,885,014) | (30,500,069) | (91,297,373) |
Net increase (decrease) | 858,553 | (1,038,051) | $ 16,241,182 | $ (25,257,977) |
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
FIL Investments (Japan) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
FAEM-USAN-0612
1.800637.108
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets
Fund - Institutional Class
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.56% | | | |
Actual | | $ 1,000.00 | $ 1,046.30 | $ 7.94 |
Hypothetical A | | $ 1,000.00 | $ 1,017.11 | $ 7.82 |
Class T | 1.82% | | | |
Actual | | $ 1,000.00 | $ 1,044.30 | $ 9.25 |
Hypothetical A | | $ 1,000.00 | $ 1,015.81 | $ 9.12 |
Class B | 2.31% | | | |
Actual | | $ 1,000.00 | $ 1,041.90 | $ 11.73 |
Hypothetical A | | $ 1,000.00 | $ 1,013.38 | $ 11.56 |
Class C | 2.31% | | | |
Actual | | $ 1,000.00 | $ 1,042.00 | $ 11.73 |
Hypothetical A | | $ 1,000.00 | $ 1,013.38 | $ 11.56 |
Institutional Class | 1.24% | | | |
Actual | | $ 1,000.00 | $ 1,047.60 | $ 6.31 |
Hypothetical A | | $ 1,000.00 | $ 1,018.70 | $ 6.22 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 5.1 | 4.3 |
Hyundai Motor Co. (Korea (South), Automobiles) | 2.0 | 2.2 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 1.6 | 1.4 |
Sberbank (Savings Bank of the Russian Federation) (Russia, Commercial Banks) | 1.5 | 1.2 |
CNOOC Ltd. (Hong Kong, Oil, Gas & Consumable Fuels) | 1.4 | 1.9 |
| 11.6 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.3 | 23.6 |
Information Technology | 14.7 | 11.4 |
Energy | 13.4 | 14.2 |
Consumer Discretionary | 12.4 | 10.7 |
Materials | 9.8 | 11.1 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Korea (South) | 20.5 | 20.2 |
Brazil | 10.9 | 15.1 |
Indonesia | 6.9 | 5.3 |
Taiwan | 6.7 | 6.7 |
China | 6.3 | 8.5 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 98.9% | | | Stocks 98.2% | |
| Bonds 0.1% | | | Bonds 0.0% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 1.0% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 1.8% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% |
| Shares | | Value |
Bailiwick of Guernsey - 0.2% |
Chariot Oil & Gas Ltd. (a)(d) | 415,951 | | $ 1,194,980 |
Bailiwick of Jersey - 0.2% |
Randgold Resources Ltd. sponsored ADR | 12,850 | | 1,145,578 |
Bermuda - 2.8% |
African Minerals Ltd. (a) | 189,600 | | 1,600,247 |
Aquarius Platinum Ltd.: | | | |
(Australia) | 27,438 | | 62,318 |
(United Kingdom) | 227,289 | | 479,587 |
Cheung Kong Infrastructure Holdings Ltd. | 337,000 | | 2,000,200 |
Credicorp Ltd. (NY Shares) | 31,600 | | 4,136,756 |
Digital China Holdings Ltd. (H Shares) | 1,058,000 | | 2,007,277 |
Great Eagle Holdings Ltd. | 367,000 | | 1,083,217 |
Kunlun Energy Co. Ltd. | 1,840,000 | | 3,244,276 |
TOTAL BERMUDA | | 14,613,878 |
Brazil - 10.9% |
Banco do Brasil SA | 196,900 | | 2,435,749 |
Banco Do Est Rio Grande Sul SA | 283,000 | | 2,452,672 |
BM&F Bovespa SA | 412,700 | | 2,320,984 |
BR Malls Participacoes SA | 262,100 | | 3,256,054 |
BR Properties SA | 87,500 | | 1,085,631 |
Brasil Brokers Participacoes SA | 113,800 | | 389,254 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR (d) | 16,500 | | 775,995 |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 119,500 | | 5,016,610 |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) | 89,800 | | 3,525,762 |
Companhia de Saneamento de Minas Gerais | 86,700 | | 2,022,689 |
Eletropaulo Metropolitana SA (PN-B) | 150,900 | | 2,308,446 |
JBS SA (a) | 356,700 | | 1,403,483 |
Klabin SA (PN) (non-vtg.) | 339,100 | | 1,625,986 |
Localiza Rent A Car SA | 132,600 | | 2,264,318 |
Marfrig Alimentos SA | 171,600 | | 944,356 |
MMX Mineracao e Metalicos SA (a) | 202,200 | | 939,848 |
MMX Mineracao e Metalicos SA (a) | 269,000 | | 574,367 |
Multiplan Empreendimentos Imobiliarios SA | 66,600 | | 1,572,279 |
Multiplus SA | 124,924 | | 2,706,692 |
OGX Petroleo e Gas Participacoes SA (a) | 617,300 | | 4,284,489 |
Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR | 207,010 | | 4,587,342 |
Tegma Gestao Logistica SA | 90,600 | | 1,378,380 |
Common Stocks - continued |
| Shares | | Value |
Brazil - continued |
Ultrapar Participacoes SA | 170,000 | | $ 3,861,711 |
Vale SA (PN-A) sponsored ADR | 211,210 | | 4,568,472 |
TOTAL BRAZIL | | 56,301,569 |
British Virgin Islands - 0.7% |
Gem Diamonds Ltd. (a) | 174,400 | | 733,148 |
Mail.ru Group Ltd. GDR (a)(e) | 68,500 | | 2,962,625 |
TOTAL BRITISH VIRGIN ISLANDS | | 3,695,773 |
Canada - 0.5% |
First Quantum Minerals Ltd. | 129,800 | | 2,696,528 |
Cayman Islands - 5.8% |
Baidu.com, Inc. sponsored ADR (a) | 22,915 | | 3,040,821 |
Changyou.com Ltd. (A Shares) ADR (a)(d) | 18,800 | | 455,336 |
China Liansu Group Holdings Ltd. | 2,478,000 | | 1,558,601 |
China Metal Recycling (Holdings) Ltd. | 1,468,200 | | 1,684,182 |
China Shanshui Cement Group Ltd. | 3,369,000 | | 2,731,275 |
Country Garden Holdings Co. Ltd. | 4,643,000 | | 2,016,705 |
Eurasia Drilling Co. Ltd. GDR (Reg. S) | 74,563 | | 2,125,046 |
Focus Media Holding Ltd. ADR (d) | 40,400 | | 965,156 |
Lee & Man Paper Manufacturing Ltd. | 3,563,000 | | 1,671,595 |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a) | 153,400 | | 2,380,768 |
Mongolian Mining Corp. (a) | 1,295,000 | | 1,043,191 |
NetEase.com, Inc. sponsored ADR (a) | 41,000 | | 2,473,120 |
Shanda Games Ltd. sponsored ADR | 328,450 | | 1,740,785 |
Shenguan Holdings Group Ltd. | 30,000 | | 16,240 |
Shenzhou International Group Holdings Ltd. | 1,508,000 | | 2,837,710 |
SOHO China Ltd. | 2,099,000 | | 1,631,337 |
Vinda International Holdings Ltd. | 1,074,000 | | 1,913,049 |
TOTAL CAYMAN ISLANDS | | 30,284,917 |
Chile - 1.0% |
CFR Pharmaceuticals SA | 8,064,456 | | 2,013,205 |
Compania Cervecerias Unidas SA sponsored ADR | 25,100 | | 1,797,662 |
Embotelladora Andina SA: | | | |
Class A | 219,129 | | 993,782 |
Class B | 94,864 | | 502,578 |
TOTAL CHILE | | 5,307,227 |
China - 6.3% |
Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd. (H Shares) | 786,800 | | 1,174,321 |
China CITIC Bank Corp. Ltd. (H Shares) | 6,113,000 | | 3,892,200 |
China Communications Construction Co. Ltd. (H Shares) | 3,781,000 | | 3,801,151 |
Common Stocks - continued |
| Shares | | Value |
China - continued |
China Communications Services Corp. Ltd. (H Shares) | 6,118,000 | | $ 3,146,272 |
China Minsheng Banking Corp. Ltd. (H Shares) | 4,886,000 | | 5,069,477 |
China Petroleum & Chemical Corp.: | | | |
(H Shares) | 2,400,000 | | 2,549,066 |
sponsored ADR (H Shares) (d) | 14,600 | | 1,539,862 |
China Ship Container Lines Co. Ltd. (H Shares) (a) | 6,881,000 | | 2,243,809 |
China Southern Airlines Ltd. (H Shares) (a) | 3,878,000 | | 1,744,404 |
Great Wall Motor Co. Ltd. (H Shares) | 1,614,000 | | 3,486,514 |
Huadian Power International Corp. Ltd. (H shares) (a) | 6,998,000 | | 1,614,510 |
Yantai Changyu Pioneer Wine Co. (B Shares) | 227,939 | | 2,409,053 |
TOTAL CHINA | | 32,670,639 |
Colombia - 1.6% |
Almacenes Exito SA | 106,063 | | 1,721,198 |
BanColombia SA sponsored ADR | 24,400 | | 1,655,052 |
Ecopetrol SA ADR (d) | 73,900 | | 4,781,330 |
TOTAL COLOMBIA | | 8,157,580 |
Czech Republic - 1.0% |
Ceske Energeticke Zavody A/S | 76,450 | | 3,082,913 |
Philip Morris CR A/S | 3,397 | | 1,973,312 |
TOTAL CZECH REPUBLIC | | 5,056,225 |
Hong Kong - 4.8% |
AIA Group Ltd. | 521,600 | | 1,855,498 |
China Mobile Ltd. | 643,500 | | 7,119,377 |
China Power International Development Ltd. | 9,636,000 | | 2,185,865 |
CNOOC Ltd. | 3,536,000 | | 7,472,094 |
Dah Chong Hong Holdings Ltd. | 3,000 | | 3,194 |
Guangdong Investment Ltd. | 3,516,000 | | 2,587,610 |
Lenovo Group Ltd. | 3,620,000 | | 3,480,657 |
Singamas Container Holdings Ltd. | 1,220,000 | | 366,378 |
TOTAL HONG KONG | | 25,070,673 |
Hungary - 0.5% |
Magyar Telekom PLC | 1,074,676 | | 2,708,955 |
India - 4.3% |
Bank of Baroda | 209,047 | | 3,056,020 |
Bharat Petroleum Corp. Ltd. | 142,378 | | 1,813,079 |
Hero Motocorp Ltd. | 50,888 | | 2,165,433 |
Hindustan Unilever Ltd. | 376,237 | | 2,983,321 |
Housing Development and Infrastructure Ltd. (a) | 944,681 | | 1,444,870 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Tata Motors Ltd. | 749,277 | | $ 4,481,489 |
Tata Steel Ltd. | 388,190 | | 3,417,532 |
Ultratech Cemco Ltd. | 105,054 | | 2,842,333 |
TOTAL INDIA | | 22,204,077 |
Indonesia - 6.9% |
PT Adaro Energy Tbk | 3,802,500 | | 769,561 |
PT AKR Corporindo Tbk | 576,500 | | 258,752 |
PT Astra International Tbk | 622,500 | | 4,809,042 |
PT Bank Mandiri (Persero) Tbk | 3,669,000 | | 2,954,203 |
PT Bank Rakyat Indonesia Tbk | 5,943,500 | | 4,300,557 |
PT Bank Tabungan Negara Tbk | 27,500 | | 4,129 |
PT Bumi Serpong Damai Tbk | 11,588,100 | | 1,803,056 |
PT BW Plantation Tbk | 4,889,500 | | 819,306 |
PT Ciputra Development Tbk | 14,439,000 | | 1,194,020 |
PT Gadjah Tunggal Tbk | 4,696,500 | | 1,315,868 |
PT Global Mediacom Tbk | 4,665,000 | | 842,598 |
PT Harum Energy Tbk | 205,500 | | 159,874 |
PT Indocement Tunggal Prakarsa Tbk | 1,282,000 | | 2,517,828 |
PT Media Nusantara Citra Tbk | 1,175,000 | | 287,661 |
PT Mitra Adiperkasa Tbk | 2,202,500 | | 1,665,565 |
PT Resource Alam Indonesia Tbk | 949,500 | | 635,376 |
PT Sampoerna Agro Tbk | 1,399,500 | | 498,707 |
PT Semen Gresik (Persero) Tbk | 1,299,500 | | 1,717,961 |
PT Summarecon Agung Tbk | 9,495,000 | | 1,787,318 |
PT Tower Bersama Infrastructure Tbk | 9,290,500 | | 3,083,186 |
PT United Tractors Tbk | 786,500 | | 2,533,094 |
PT XL Axiata Tbk | 2,737,500 | | 1,608,454 |
TOTAL INDONESIA | | 35,566,116 |
Ireland - 0.1% |
Dragon Oil PLC | 54,023 | | 514,271 |
Israel - 0.3% |
Bezeq Israeli Telecommunication Corp. Ltd. | 990,700 | | 1,657,833 |
Kazakhstan - 0.3% |
JSC Halyk Bank of Kazakhstan GDR unit (a) | 80,299 | | 542,018 |
KazMunaiGas Exploration & Production JSC (Reg. S) GDR | 37,200 | | 744,000 |
TOTAL KAZAKHSTAN | | 1,286,018 |
Korea (South) - 20.5% |
CJ CheilJedang Corp. | 10,123 | | 3,350,074 |
CJ Corp. | 242 | | 16,724 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
Daelim Industrial Co. | 22,754 | | $ 2,114,076 |
Daewoo Shipbuilding & Marine Engineering Co. Ltd. | 96,570 | | 2,708,788 |
Dongbu Insurance Co. Ltd. | 55,282 | | 2,211,036 |
Hana Financial Group, Inc. | 133,840 | | 4,600,982 |
Hi-Mart Co. Ltd. | 24,763 | | 1,279,646 |
Hotel Shilla Co. | 63,810 | | 2,986,882 |
Hyundai Department Store Co. Ltd. | 18,839 | | 2,658,839 |
Hyundai Fire & Marine Insurance Co. Ltd. | 96,140 | | 2,467,037 |
Hyundai Glovis Co. Ltd. | 4,468 | | 875,710 |
Hyundai Hysco Co. Ltd. | 80,630 | | 2,850,277 |
Hyundai Motor Co. | 43,481 | | 10,330,406 |
Hyundai Wia Corp. | 9,277 | | 1,387,292 |
Interflex Co. Ltd. | 5,308 | | 289,325 |
Kia Motors Corp. | 78,019 | | 5,757,580 |
Korea Investment Holdings Co. Ltd. | 60,090 | | 2,073,674 |
Korean Reinsurance Co. | 109,767 | | 1,330,656 |
KT&G Corp. | 41,016 | | 2,816,363 |
LG Chemical Ltd. | 11,648 | | 2,932,292 |
LIG Non-Life Insurance Co. Ltd. | 68,970 | | 1,434,173 |
Lotte Samkang Co. Ltd. | 2,818 | | 1,201,881 |
Mando Corp. | 5,360 | | 858,454 |
Nong Shim Co. Ltd. | 10,795 | | 2,163,538 |
Orion Corp. | 4,756 | | 3,779,129 |
Paradise Co. Ltd. | 213,918 | | 1,892,871 |
Samsung C&T Corp. | 25,585 | | 1,738,682 |
Samsung Electronics Co. Ltd. | 21,668 | | 26,650,613 |
Samsung Heavy Industries Ltd. | 122,030 | | 4,502,734 |
Shinhan Financial Group Co. Ltd. | 140,012 | | 4,893,684 |
Silicon Works Co. Ltd. | 8,848 | | 221,567 |
Sung Kwang Bend Co. Ltd. | 56,824 | | 1,166,523 |
TK Corp. (a) | 20,452 | | 554,677 |
Woongjin Coway Co. Ltd. | 8,400 | | 269,068 |
TOTAL KOREA (SOUTH) | | 106,365,253 |
Malaysia - 0.0% |
IJM Plantation Bhd | 78,900 | | 85,537 |
Mexico - 1.4% |
CEMEX SA de CV sponsored ADR (d) | 511,680 | | 3,699,446 |
Genomma Lab Internacional SA de CV (a) | 564,100 | | 994,997 |
Gruma SAB de CV Series B (a) | 380,600 | | 1,054,609 |
Common Stocks - continued |
| Shares | | Value |
Mexico - continued |
Grupo Financiero Banorte SAB de CV Series O | 285,600 | | $ 1,383,477 |
Grupo Modelo SAB de CV Series C | 1,200 | | 8,473 |
TOTAL MEXICO | | 7,141,002 |
Nigeria - 0.6% |
Guaranty Trust Bank PLC GDR (Reg. S) | 570,997 | | 3,283,233 |
Panama - 0.6% |
Copa Holdings SA Class A | 36,328 | | 2,953,830 |
Philippines - 1.1% |
Globe Telecom, Inc. | 4,465 | | 118,813 |
International Container Terminal Services, Inc. | 536,100 | | 864,575 |
Manila Water Co., Inc. | 962,800 | | 564,002 |
Philippine National Bank (a) | 1,149,780 | | 2,053,325 |
Security Bank Corp. | 558,940 | | 1,895,611 |
TOTAL PHILIPPINES | | 5,496,326 |
Poland - 0.5% |
KGHM Polska Miedz SA (Bearer) | 53,700 | | 2,363,996 |
Russia - 4.8% |
Cherkizovo Group OJSC GDR (a) | 101,994 | | 1,331,022 |
Gazprom OAO sponsored ADR | 471,725 | | 5,410,686 |
Magnit OJSC | 12,600 | | 1,587,151 |
Mobile TeleSystems OJSC sponsored ADR | 27,100 | | 530,076 |
NOVATEK OAO GDR (Reg. S) | 37,098 | | 4,715,156 |
Sberbank (Savings Bank of the Russian Federation) | 2,459,100 | | 7,872,703 |
Tatneft OAO sponsored ADR | 96,200 | | 3,559,400 |
TOTAL RUSSIA | | 25,006,194 |
Singapore - 0.5% |
Ezion Holdings Ltd. | 1,022,000 | | 718,410 |
First Resources Ltd. | 1,293,000 | | 1,964,077 |
TOTAL SINGAPORE | | 2,682,487 |
South Africa - 6.2% |
African Bank Investments Ltd. | 681,147 | | 3,402,232 |
AVI Ltd. | 135,100 | | 837,210 |
Barloworld Ltd. | 240,900 | | 3,035,253 |
Capitec Bank Holdings Ltd. | 400 | | 11,417 |
Exxaro Resources Ltd. | 75,400 | | 2,006,660 |
Foschini Ltd. | 208,224 | | 3,447,556 |
Imperial Holdings Ltd. | 187,551 | | 4,070,759 |
Life Healthcare Group Holdings Ltd. | 764,400 | | 2,641,691 |
Common Stocks - continued |
| Shares | | Value |
South Africa - continued |
Mpact Ltd. | 248,800 | | $ 544,430 |
Mr Price Group Ltd. | 188,000 | | 2,542,762 |
Murray & Roberts Holdings Ltd. (a) | 140,351 | | 515,895 |
PSG Group Ltd. (f) | 108,368 | | 823,418 |
Sappi Ltd. (a) | 598,329 | | 2,167,000 |
Sasol Ltd. | 22,700 | | 1,078,616 |
Sasol Ltd. sponsored ADR | 33,178 | | 1,573,633 |
Tiger Brands Ltd. | 92,800 | | 3,400,360 |
TOTAL SOUTH AFRICA | | 32,098,892 |
Taiwan - 6.7% |
Advanced Semiconductor Engineering, Inc. | 526,000 | | 529,913 |
Advanced Semiconductor Engineering, Inc. sponsored ADR | 477,400 | | 2,420,418 |
ASUSTeK Computer, Inc. | 267,000 | | 2,701,595 |
Catcher Technology Co. Ltd. | 236,000 | | 1,513,703 |
Chinatrust Financial Holding Co. Ltd. | 203,712 | | 130,311 |
Evergreen Marine Corp. (Taiwan) | 1,746,000 | | 1,030,053 |
Formosa Chemicals & Fibre Corp. | 2,000 | | 5,810 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 2,355,000 | | 7,463,625 |
HTC Corp. | 155,202 | | 2,358,240 |
Pegatron Corp. | 1,818,000 | | 2,637,674 |
Radiant Opto-Electronics Corp. | 183,000 | | 772,046 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,463,534 | | 7,294,672 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 65,600 | | 1,022,048 |
TECO Electric & Machinery Co. Ltd. | 1,037,000 | | 761,166 |
Wistron Corp. | 2,153,000 | | 3,238,177 |
Yang Ming Marine Transport Corp. | 975,000 | | 414,680 |
Yieh Phui Enterprise Co. | 1,293,000 | | 445,709 |
TOTAL TAIWAN | | 34,739,840 |
Thailand - 4.1% |
Advanced Info Service PCL (For. Reg.) | 696,900 | | 4,146,731 |
Asian Property Development PCL (For. Reg.) | 5,555,400 | | 1,237,343 |
Bangkok Expressway PCL (For.Reg.) | 2,167,900 | | 1,649,451 |
Bumrungrad Hospital PCL (For. Reg.) | 291,700 | | 578,563 |
Charoen Pokphand Foods PCL (For. Reg.) | 1,585,700 | | 2,101,033 |
PTT Global Chemical PCL (For. Reg.) | 721,170 | | 1,612,110 |
PTT PCL (For. Reg.) | 418,300 | | 4,773,965 |
Siam Commercial Bank PCL (For. Reg.) | 884,300 | | 4,456,722 |
Thai Tap Water Supply PCL | 2,373,000 | | 501,528 |
TOTAL THAILAND | | 21,057,446 |
Common Stocks - continued |
| Shares | | Value |
Turkey - 1.2% |
Tekfen Holding A/S | 254,000 | | $ 925,213 |
Turkiye Garanti Bankasi A/S | 882,375 | | 3,244,247 |
Turkiye Halk Bankasi A/S | 315,000 | | 2,205,179 |
TOTAL TURKEY | | 6,374,639 |
United Arab Emirates - 0.2% |
NMC Health PLC | 302,235 | | 1,027,718 |
United Kingdom - 1.7% |
Afren PLC (a) | 251,900 | | 549,915 |
Anglo American PLC (United Kingdom) | 100 | | 3,844 |
International Personal Finance PLC | 618,414 | | 2,687,033 |
Ophir Energy PLC | 228,240 | | 2,137,533 |
RusPetro PLC | 262,500 | | 805,261 |
Tullow Oil PLC | 103,000 | | 2,564,530 |
TOTAL UNITED KINGDOM | | 8,748,116 |
United States of America - 0.1% |
Cognizant Technology Solutions Corp. Class A (a) | 6,700 | | 491,244 |
TOTAL COMMON STOCKS (Cost $463,977,340) |
510,048,590
|
Nonconvertible Preferred Stocks - 0.5% |
| | | |
Russia - 0.5% |
Surgutneftegaz JSC
(Cost $2,621,944) | 3,713,200 | |
2,473,107
|
Convertible Bonds - 0.1% |
| Principal Amount | | |
Canada - 0.1% |
Ivanplats Ltd. 8% 11/10/14 pay-in-kind (g)(h)
(Cost $355,749) | | $ 343,000 | |
355,725
|
Money Market Funds - 2.4% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.14% (b) | 6,337,859 | | $ 6,337,859 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 6,195,379 | | 6,195,379 |
TOTAL MONEY MARKET FUNDS (Cost $12,533,238) |
12,533,238
|
TOTAL INVESTMENT PORTFOLIO - 101.4% (Cost $479,488,271) | | 525,410,660 |
NET OTHER ASSETS (LIABILITIES) - (1.4)% | | (7,073,917) |
NET ASSETS - 100% | $ 518,336,743 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 $2,962,625 or 0.6% of net assets. |
(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) 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 $355,725 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Ivanplats Ltd. 8% 11/10/14 pay-in-kind | 3/28/12 | $ 355,749 |
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 | $ 2,926 |
Fidelity Securities Lending Cash Central Fund | 19,966 |
Total | $ 22,892 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 tables below, please refer to the Security 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 | $ 62,723,113 | $ 56,961,978 | $ 4,481,489 | $ 1,279,646 |
Consumer Staples | 49,449,109 | 49,449,109 | - | - |
Energy | 70,636,569 | 59,536,793 | 11,099,776 | - |
Financials | 105,636,549 | 105,636,549 | - | - |
Health Care | 7,256,174 | 7,256,174 | - | - |
Industrials | 45,857,930 | 45,857,930 | - | - |
Information Technology | 75,765,481 | 67,940,896 | 7,824,585 | - |
Materials | 50,683,550 | 50,683,550 | - | - |
Telecommunication Services | 24,119,697 | 17,000,320 | 7,119,377 | - |
Utilities | 20,393,525 | 20,393,525 | - | - |
Corporate Bonds | 355,725 | - | - | 355,725 |
Money Market Funds | 12,533,238 | 12,533,238 | - | - |
Total Investments in Securities: | $ 525,410,660 | $ 493,250,062 | $ 30,525,227 | $ 1,635,371 |
Transfers from Level 2 to Level 1 during the period were $156,948,900. |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (50,310) |
Cost of Purchases | 1,685,681 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 1,635,371 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2012 | $ (50,310) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $5,972,434) - See accompanying schedule: Unaffiliated issuers (cost $466,955,033) | $ 512,877,422 | |
Fidelity Central Funds (cost $12,533,238) | 12,533,238 | |
Total Investments (cost $479,488,271) | | $ 525,410,660 |
Foreign currency held at value (cost $2) | | 2 |
Receivable for investments sold | | 5,204,760 |
Receivable for fund shares sold | | 562,355 |
Dividends receivable | | 2,462,458 |
Interest receivable | | 13,052 |
Distributions receivable from Fidelity Central Funds | | 3,744 |
Prepaid expenses | | 561 |
Other receivables | | 192,668 |
Total assets | | 533,850,260 |
| | |
Liabilities | | |
Payable for investments purchased
Regular delivery | $ 7,175,671 | |
Delayed delivery | 24,845 | |
Payable for fund shares redeemed | 1,306,172 | |
Accrued management fee | 348,750 | |
Distribution and service plan fees payable | 150,279 | |
Other affiliated payables | 145,839 | |
Other payables and accrued expenses | 166,582 | |
Collateral on securities loaned, at value | 6,195,379 | |
Total liabilities | | 15,513,517 |
| | |
Net Assets | | $ 518,336,743 |
Net Assets consist of: | | |
Paid in capital | | $ 546,644,862 |
Distributions in excess of net investment income | | (252,471) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (73,940,026) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 45,884,378 |
Net Assets | | $ 518,336,743 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($189,147,330 ÷ 8,884,577 shares) | | $ 21.29 |
| | |
Maximum offering price per share (100/94.25 of $21.29) | | $ 22.59 |
Class T:
Net Asset Value and redemption price per share ($70,693,509 ÷ 3,327,539 shares) | | $ 21.24 |
| | |
Maximum offering price per share (100/96.50 of $21.24) | | $ 22.01 |
Class B:
Net Asset Value and offering price per share ($19,738,619 ÷ 945,693 shares)A | | $ 20.87 |
| | |
Class C:
Net Asset Value and offering price per share ($77,194,224 ÷ 3,703,991 shares)A | | $ 20.84 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($161,563,061 ÷ 7,562,590 shares) | | $ 21.36 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 5,423,650 |
Interest | | 2,581 |
Income from Fidelity Central Funds | | 22,892 |
Income before foreign taxes withheld | | 5,449,123 |
Less foreign taxes withheld | | (567,669) |
Total income | | 4,881,454 |
| | |
Expenses | | |
Management fee | $ 2,077,577 | |
Transfer agent fees | 719,557 | |
Distribution and service plan fees | 906,111 | |
Accounting and security lending fees | 133,953 | |
Custodian fees and expenses | 264,326 | |
Independent trustees' compensation | 1,542 | |
Registration fees | 64,147 | |
Audit | 47,981 | |
Legal | 981 | |
Miscellaneous | 2,665 | |
Total expenses before reductions | 4,218,840 | |
Expense reductions | (248,853) | 3,969,987 |
Net investment income (loss) | | 911,467 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,129,040 | |
Foreign currency transactions | (277,011) | |
Total net realized gain (loss) | | 3,852,029 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 18,805,263 | |
Assets and liabilities in foreign currencies | 24,110 | |
Total change in net unrealized appreciation (depreciation) | | 18,829,373 |
Net gain (loss) | | 22,681,402 |
Net increase (decrease) in net assets resulting from operations | | $ 23,592,869 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 911,467 | $ 5,371,636 |
Net realized gain (loss) | 3,852,029 | 51,309,170 |
Change in net unrealized appreciation (depreciation) | 18,829,373 | (134,170,344) |
Net increase (decrease) in net assets resulting
from operations | 23,592,869 | (77,489,538) |
Distributions to shareholders from net investment income | (3,344,878) | (3,137,543) |
Distributions to shareholders from net realized gain | - | (3,336,770) |
Total distributions | (3,344,878) | (6,474,313) |
Share transactions - net increase (decrease) | (18,049,810) | (114,129,705) |
Redemption fees | 44,349 | 141,338 |
Total increase (decrease) in net assets | 2,242,530 | (197,952,218) |
| | |
Net Assets | | |
Beginning of period | 516,094,213 | 714,046,431 |
End of period (including distributions in excess of net investment income of $252,471 and undistributed net investment income of $2,180,940, respectively) | $ 518,336,743 | $ 516,094,213 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.50 | $ 23.71 | $ 19.20 | $ 12.59 | $ 32.75 | $ 19.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .21 | .12 | .10 | .24 | .09 |
Net realized and unrealized gain (loss) | .89 | (3.19) | 4.59 | 6.64 | (19.61) | 13.46 |
Total from investment operations | .94 | (2.98) | 4.71 | 6.74 | (19.37) | 13.55 |
Distributions from net investment income | (.15) | (.11) | (.07) | (.14) | (.02) | (.03) |
Distributions from net realized gain | - | (.13) | (.13) | - | (.79) | - |
Total distributions | (.15) | (.24) | (.20) | (.14) | (.81) | (.03) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .02 | .01 |
Net asset value, end of period | $ 21.29 | $ 20.50 | $ 23.71 | $ 19.20 | $ 12.59 | $ 32.75 |
Total Return B,C,D | 4.63% | (12.69)% | 24.69% | 54.54% | (60.55)% | 70.63% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.56% A | 1.54% | 1.56% | 1.60% | 1.59% | 1.59% |
Expenses net of fee waivers, if any | 1.56% A | 1.54% | 1.56% | 1.60% | 1.59% | 1.59% |
Expenses net of all reductions | 1.46% A | 1.47% | 1.50% | 1.53% | 1.53% | 1.54% |
Net investment income (loss) | .44% A | .92% | .59% | .70% | .94% | .36% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 189,147 | $ 202,477 | $ 286,970 | $ 216,187 | $ 122,911 | $ 218,836 |
Portfolio turnover rate G | 193% A | 122% | 86% | 85% | 61% | 48% |
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 $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.43 | $ 23.61 | $ 19.14 | $ 12.49 | $ 32.52 | $ 19.10 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .15 | .07 | .07 | .17 | .03 |
Net realized and unrealized gain (loss) | .88 | (3.18) | 4.57 | 6.64 | (19.48) | 13.38 |
Total from investment operations | .90 | (3.03) | 4.64 | 6.71 | (19.31) | 13.41 |
Distributions from net investment income | (.09) | (.04) | (.04) | (.07) | - | - |
Distributions from net realized gain | - | (.13) | (.13) | - | (.74) | - |
Total distributions | (.09) | (.16) J | (.17) | (.07) | (.74) | - |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .02 | .01 |
Net asset value, end of period | $ 21.24 | $ 20.43 | $ 23.61 | $ 19.14 | $ 12.49 | $ 32.52 |
Total Return B,C,D | 4.43% | (12.89)% | 24.38% | 54.17% | (60.66)% | 70.26% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.82% A | 1.79% | 1.81% | 1.87% | 1.84% | 1.86% |
Expenses net of fee waivers, if any | 1.82% A | 1.79% | 1.81% | 1.85% | 1.84% | 1.85% |
Expenses net of all reductions | 1.72% A | 1.73% | 1.76% | 1.78% | 1.79% | 1.79% |
Net investment income (loss) | .18% A | .66% | .33% | .44% | .69% | .11% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 70,694 | $ 73,146 | $ 104,417 | $ 86,959 | $ 47,300 | $ 119,952 |
Portfolio turnover rate G | 193% A | 122% | 86% | 85% | 61% | 48% |
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 $.01 per share. J Total distributions of $.16 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.125 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.03 | $ 23.14 | $ 18.80 | $ 12.26 | $ 32.03 | $ 18.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | .04 | (.03) | (.01) | .04 | (.09) |
Net realized and unrealized gain (loss) | .87 | (3.13) | 4.49 | 6.55 | (19.13) | 13.20 |
Total from investment operations | .84 | (3.09) | 4.46 | 6.54 | (19.09) | 13.11 |
Distributions from net investment income | - | (.01) | - | - | - | - |
Distributions from net realized gain | - | (.03) | (.12) | - | (.70) | - |
Total distributions | - | (.03) J | (.12) | - | (.70) | - |
Redemption fees added to paid in capital E | - I | .01 | - I | - I | .02 | .01 |
Net asset value, end of period | $ 20.87 | $ 20.03 | $ 23.14 | $ 18.80 | $ 12.26 | $ 32.03 |
Total Return B,C,D | 4.19% | (13.33)% | 23.77% | 53.34% | (60.83)% | 69.38% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.31% A | 2.29% | 2.32% | 2.36% | 2.35% | 2.37% |
Expenses net of fee waivers, if any | 2.31% A | 2.29% | 2.32% | 2.35% | 2.35% | 2.35% |
Expenses net of all reductions | 2.21% A | 2.22% | 2.26% | 2.28% | 2.30% | 2.29% |
Net investment income (loss) | (.31)% A | .16% | (.17)% | (.05)% | .18% | (.39)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 19,739 | $ 21,304 | $ 31,159 | $ 27,580 | $ 17,307 | $ 41,042 |
Portfolio turnover rate G | 193% A | 122% | 86% | 85% | 61% | 48% |
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 $.01 per share. J Total distributions of $.03 per share is comprised of distributions from net investment income of $.005 and distributions from net realized gain of $.025 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.00 | $ 23.13 | $ 18.80 | $ 12.26 | $ 32.04 | $ 18.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | .04 | (.03) | (.01) | .05 | (.09) |
Net realized and unrealized gain (loss) | .87 | (3.12) | 4.49 | 6.54 | (19.15) | 13.21 |
Total from investment operations | .84 | (3.08) | 4.46 | 6.53 | (19.10) | 13.12 |
Distributions from net investment income | - | (.01) | - | - | - | - |
Distributions from net realized gain | - | (.05) | (.13) | - | (.70) | - |
Total distributions | - | (.06) | (.13) | - | (.70) | - |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .02 | .01 |
Net asset value, end of period | $ 20.84 | $ 20.00 | $ 23.13 | $ 18.80 | $ 12.26 | $ 32.04 |
Total Return B,C,D | 4.20% | (13.33)% | 23.80% | 53.34% | (60.84)% | 69.43% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.31% A | 2.28% | 2.30% | 2.34% | 2.34% | 2.34% |
Expenses net of fee waivers, if any | 2.31% A | 2.28% | 2.30% | 2.34% | 2.34% | 2.34% |
Expenses net of all reductions | 2.21% A | 2.22% | 2.24% | 2.28% | 2.29% | 2.29% |
Net investment income (loss) | (.31)% A | .17% | (.15)% | (.05)% | .19% | (.39)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 77,194 | $ 80,855 | $ 106,711 | $ 83,939 | $ 44,878 | $ 104,885 |
Portfolio turnover rate G | 193% A | 122% | 86% | 85% | 61% | 48% |
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 $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.63 | $ 23.87 | $ 19.29 | $ 12.71 | $ 33.02 | $ 19.34 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .08 | .29 | .20 | .15 | .31 | .18 |
Net realized and unrealized gain (loss) | .89 | (3.21) | 4.62 | 6.65 | (19.76) | 13.55 |
Total from investment operations | .97 | (2.92) | 4.82 | 6.80 | (19.45) | 13.73 |
Distributions from net investment income | (.24) | (.20) | (.11) | (.23) | (.09) | (.06) |
Distributions from net realized gain | - | (.13) | (.13) | - | (.79) | - |
Total distributions | (.24) | (.33) | (.24) | (.23) | (.88) | (.06) |
Redemption fees added to paid in capital D | - H | .01 | - H | .01 | .02 | .01 |
Net asset value, end of period | $ 21.36 | $ 20.63 | $ 23.87 | $ 19.29 | $ 12.71 | $ 33.02 |
Total Return B,C | 4.76% | (12.41)% | 25.15% | 54.97% | (60.42)% | 71.23% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.24% A | 1.21% | 1.22% | 1.30% | 1.27% | 1.25% |
Expenses net of fee waivers, if any | 1.24% A | 1.21% | 1.22% | 1.30% | 1.27% | 1.25% |
Expenses net of all reductions | 1.14% A | 1.14% | 1.17% | 1.23% | 1.21% | 1.19% |
Net investment income (loss) | .76% A | 1.25% | .93% | .99% | 1.26% | .71% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 161,563 | $ 138,312 | $ 184,789 | $ 106,713 | $ 47,557 | $ 52,011 |
Portfolio turnover rate F | 193% A | 122% | 86% | 85% | 61% | 48% |
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 $.01 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor® Emerging Markets Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security 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 value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant 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 are used and are categorized as Level 2 in the
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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 rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), 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 | $ 69,424,302 |
Gross unrealized depreciation | (26,570,443) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 42,853,859 |
| |
Tax cost | $ 482,556,801 |
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. At October 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (70,963,758) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies.
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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $490,877,745 and $507,659,378, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .55% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .81% 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 FMR, 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,
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 239,797 | $ 5,422 |
Class T | .25% | .25% | 177,880 | 1,203 |
Class B | .75% | .25% | 101,953 | 76,613 |
Class C | .75% | .25% | 386,481 | 40,644 |
| | | $ 906,111 | $ 123,882 |
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, 1.00% for Class C, 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
by FDC |
Class A | $ 46,683 |
Class T | 14,649 |
Class B* | 20,940 |
Class C* | 3,310 |
| $ 85,582 |
* 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 FMR, 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:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Class A | $ 286,403 | .30 |
Class T | 108,951 | .31 |
Class B | 30,536 | .30 |
Class C | 115,869 | .30 |
Institutional Class | 177,798 | .23 |
| $ 719,557 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $24 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $766 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
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
Semiannual Report
8. Security Lending - continued
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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. 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 $19,966, including $2 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $248,821 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 $32.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net investment income | | |
Class A | $ 1,451,148 | $ 1,359,820 |
Class T | 312,643 | 162,957 |
Class B | - | 6,606 |
Class C | - | 23,592 |
Institutional Class | 1,581,087 | 1,584,568 |
Total | $ 3,344,878 | $ 3,137,543 |
From net realized gain | | |
Class A | $ - | $ 1,530,131 |
Class T | - | 550,254 |
Class B | - | 33,415 |
Class C | - | 232,626 |
Institutional Class | - | 990,344 |
Total | $ - | $ 3,336,770 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2012 | Year ended
October 31,
2011 | Six months ended April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 1,098,369 | 2,979,791 | $ 22,770,665 | $ 70,086,728 |
Reinvestment of distributions | 66,178 | 111,230 | 1,330,840 | 2,675,569 |
Shares redeemed | (2,154,654) | (5,317,665) | (44,151,512) | (123,086,641) |
Net increase (decrease) | (990,107) | (2,226,644) | $ (20,050,007) | $ (50,324,344) |
Class T | | | | |
Shares sold | 357,330 | 883,154 | $ 7,336,053 | $ 20,610,023 |
Reinvestment of distributions | 14,784 | 28,248 | 297,017 | 678,402 |
Shares redeemed | (625,500) | (1,752,649) | (12,822,799) | (40,710,223) |
Net increase (decrease) | (253,386) | (841,247) | $ (5,189,729) | $ (19,421,798) |
Class B | | | | |
Shares sold | 19,763 | 68,462 | $ 405,341 | $ 1,586,905 |
Reinvestment of distributions | - | 1,377 | - | 32,616 |
Shares redeemed | (137,705) | (352,710) | (2,799,805) | (8,040,387) |
Net increase (decrease) | (117,942) | (282,871) | $ (2,394,464) | $ (6,420,866) |
Class C | | | | |
Shares sold | 355,181 | 956,543 | $ 7,220,914 | $ 22,080,298 |
Reinvestment of distributions | - | 9,045 | - | 213,702 |
Shares redeemed | (694,150) | (1,536,376) | (13,877,706) | (34,998,720) |
Net increase (decrease) | (338,969) | (570,788) | $ (6,656,792) | $ (12,704,720) |
Institutional Class | | | | |
Shares sold | 2,264,381 | 2,773,126 | $ 45,492,334 | $ 64,258,215 |
Reinvestment of distributions | 61,950 | 73,837 | 1,248,917 | 1,781,181 |
Shares redeemed | (1,467,778) | (3,885,014) | (30,500,069) | (91,297,373) |
Net increase (decrease) | 858,553 | (1,038,051) | $ 16,241,182 | $ (25,257,977) |
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
FIL Investments (Japan) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
FAEMI-USAN-0612
1.800640.108
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Europe Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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 Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to April 30, 2012 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,055.80 | $ 7.41 |
HypotheticalA | | $ 1,000.00 | $ 1,017.65 | $ 7.27 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,054.40 | $ 8.68 |
HypotheticalA | | $ 1,000.00 | $ 1,016.41 | $ 8.52 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,051.50 | $ 11.22 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,051.90 | $ 11.22 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,056.60 | $ 6.14 |
HypotheticalA | | $ 1,000.00 | $ 1,018.90 | $ 6.02 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class A (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) | 3.7 | 5.0 |
Nestle SA (Switzerland, Food Products) | 3.6 | 3.8 |
Sanofi SA (France, Pharmaceuticals) | 2.5 | 3.1 |
British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 2.4 | 1.9 |
HSBC Holdings PLC (United Kingdom) (United Kingdom, Commercial Banks) | 2.0 | 0.0 |
| 14.2 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 18.6 | 16.6 |
Financials | 17.5 | 22.4 |
Consumer Staples | 14.1 | 10.2 |
Health Care | 12.1 | 10.3 |
Industrials | 9.1 | 8.9 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 38.5 | 33.4 |
France | 13.0 | 16.9 |
Germany | 9.6 | 10.0 |
Switzerland | 7.2 | 8.7 |
Italy | 4.9 | 4.9 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 97.6% | | | Stocks 98.5% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 2.4% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 1.5% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.2% |
| Shares | | Value |
Australia - 0.4% |
Fortescue Metals Group Ltd. | 13,040 | | $ 76,623 |
Austria - 0.2% |
Erste Bank AG | 1,500 | | 34,541 |
Bailiwick of Guernsey - 0.4% |
Resolution Ltd. | 18,200 | | 66,111 |
Bailiwick of Jersey - 3.1% |
Experian PLC | 13,200 | | 208,357 |
Randgold Resources Ltd. sponsored ADR | 500 | | 44,575 |
Shire PLC | 5,390 | | 175,696 |
Wolseley PLC | 3,400 | | 129,299 |
TOTAL BAILIWICK OF JERSEY | | 557,927 |
Belgium - 0.4% |
Anheuser-Busch InBev SA NV (strip VVPR) (a) | 6,080 | | 8 |
KBC Groupe SA | 3,480 | | 67,306 |
TOTAL BELGIUM | | 67,314 |
Bermuda - 0.2% |
Lazard Ltd. Class A | 1,500 | | 41,265 |
British Virgin Islands - 0.4% |
Mail.ru Group Ltd. GDR (Reg. S) (a) | 1,700 | | 73,525 |
Canada - 0.4% |
Harry Winston Diamond Corp. (a) | 2,400 | | 34,260 |
Ivanhoe Mines Ltd. (a) | 2,500 | | 29,182 |
TOTAL CANADA | | 63,442 |
Cayman Islands - 0.3% |
Sands China Ltd. | 14,400 | | 56,608 |
Denmark - 2.4% |
Danske Bank A/S (a) | 6,301 | | 102,313 |
Novo Nordisk A/S Series B | 2,237 | | 329,815 |
TOTAL DENMARK | | 432,128 |
Finland - 0.4% |
Fortum Corp. | 3,700 | | 79,593 |
France - 13.0% |
Arkema SA | 1,300 | | 115,148 |
Atos Origin SA | 1,470 | | 94,682 |
BNP Paribas SA | 4,969 | | 199,641 |
Carrefour SA | 5,892 | | 118,362 |
Christian Dior SA | 600 | | 90,429 |
Common Stocks - continued |
| Shares | | Value |
France - continued |
Compagnie Generale de Geophysique SA (a) | 2,400 | | $ 68,832 |
Danone | 2,600 | | 182,936 |
Essilor International SA | 1,060 | | 93,371 |
Eurofins Scientific SA | 400 | | 47,265 |
JC Decaux SA | 3,100 | | 87,965 |
LVMH Moet Hennessy - Louis Vuitton SA | 814 | | 134,858 |
PPR SA | 1,600 | | 267,619 |
Publicis Groupe SA | 2,200 | | 113,466 |
Remy Cointreau SA | 800 | | 89,161 |
Sanofi SA | 5,808 | | 443,659 |
Schneider Electric SA | 1,400 | | 86,013 |
Vivendi | 4,279 | | 79,105 |
TOTAL FRANCE | | 2,312,512 |
Germany - 7.2% |
adidas AG | 1,600 | | 133,439 |
Allianz AG | 2,175 | | 242,377 |
BASF AG | 1,884 | | 155,104 |
Bayer AG (d) | 3,400 | | 239,494 |
Deutsche Boerse AG | 1,300 | | 81,624 |
Fresenius Medical Care AG & Co. KGaA | 1,300 | | 92,322 |
SAP AG | 4,275 | | 283,512 |
Wirecard AG | 2,900 | | 53,746 |
TOTAL GERMANY | | 1,281,618 |
Ireland - 1.6% |
CRH PLC | 5,200 | | 105,517 |
Elan Corp. PLC (a) | 6,200 | | 85,481 |
Ingersoll-Rand PLC | 2,100 | | 89,292 |
TOTAL IRELAND | | 280,290 |
Italy - 4.9% |
Brunello Cucinelli SpA | 600 | | 9,531 |
ENI SpA | 15,200 | | 337,767 |
Fiat Industrial SpA | 10,000 | | 113,450 |
Intesa Sanpaolo SpA | 64,361 | | 97,385 |
Prada SpA | 20,300 | | 137,886 |
Prysmian SpA | 7,200 | | 117,236 |
Salvatore Ferragamo Italia SpA | 2,700 | | 66,017 |
TOTAL ITALY | | 879,272 |
Luxembourg - 0.4% |
Millicom International Cellular SA (depository receipt) | 700 | | 74,367 |
Common Stocks - continued |
| Shares | | Value |
Netherlands - 2.9% |
AEGON NV | 22,200 | | $ 103,273 |
Gemalto NV | 614 | | 45,753 |
HeidelbergCement Finance AG (d) | 2,500 | | 137,460 |
LyondellBasell Industries NV Class A | 2,100 | | 87,738 |
NXP Semiconductors NV (a) | 2,900 | | 74,965 |
Randstad Holding NV | 2,000 | | 69,261 |
TOTAL NETHERLANDS | | 518,450 |
Norway - 0.5% |
Schibsted ASA (B Shares) | 2,300 | | 87,743 |
Spain - 3.1% |
Banco Bilbao Vizcaya Argentaria SA | 27,292 | | 184,700 |
Banco Bilbao Vizcaya Argentaria SA rights 4/30/12 (a) | 24,158 | | 3,454 |
Grifols SA (a)(d) | 5,800 | | 146,075 |
Inditex SA (d) | 2,522 | | 226,859 |
TOTAL SPAIN | | 561,088 |
Sweden - 2.9% |
H&M Hennes & Mauritz AB (B Shares) | 5,148 | | 176,866 |
Swedbank AB (A Shares) | 9,705 | | 160,721 |
Swedish Match Co. AB | 4,200 | | 170,731 |
TOTAL SWEDEN | | 508,318 |
Switzerland - 7.2% |
Adecco SA (Reg.) | 1,365 | | 66,479 |
Clariant AG (Reg.) | 5,140 | | 65,358 |
Nestle SA | 10,595 | | 649,090 |
Roche Holding AG (participation certificate) | 928 | | 169,536 |
Schindler Holding AG (participation certificate) | 1,065 | | 137,768 |
UBS AG | 15,434 | | 192,764 |
TOTAL SWITZERLAND | | 1,280,995 |
United Kingdom - 38.5% |
Aegis Group PLC | 96,418 | | 278,093 |
Anglo American PLC (United Kingdom) | 5,800 | | 222,923 |
Antofagasta PLC | 4,700 | | 90,093 |
Aviva PLC | 22,200 | | 111,124 |
Barclays PLC | 59,400 | | 210,323 |
Barratt Developments PLC (a) | 63,400 | | 137,583 |
Bellway PLC | 8,000 | | 102,255 |
BG Group PLC | 11,773 | | 277,173 |
British American Tobacco PLC (United Kingdom) | 8,300 | | 425,756 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - continued |
British Land Co. PLC | 15,396 | | $ 122,297 |
Domino Printing Sciences PLC | 6,700 | | 65,140 |
Filtrona PLC | 16,000 | | 120,603 |
GlaxoSmithKline PLC | 15,300 | | 353,496 |
Hilton Food Group PLC | 9,700 | | 44,831 |
HSBC Holdings PLC (United Kingdom) | 39,700 | | 358,423 |
ICAP PLC | 9,600 | | 59,164 |
Imagination Technologies Group PLC (a) | 9,500 | | 106,009 |
Intertek Group PLC | 1,900 | | 77,560 |
ITV PLC | 57,900 | | 78,659 |
Kingfisher PLC | 12,700 | | 59,882 |
Lloyds Banking Group PLC (a) | 168,000 | | 84,337 |
Meggitt PLC | 21,600 | | 143,216 |
Michael Page International PLC | 20,400 | | 137,610 |
Next PLC | 3,300 | | 156,884 |
Old Mutual PLC | 44,012 | | 105,582 |
Persimmon PLC | 9,400 | | 95,891 |
Prudential PLC | 10,260 | | 125,761 |
Reckitt Benckiser Group PLC | 4,700 | | 273,637 |
Rolls-Royce Group PLC | 13,286 | | 177,584 |
Royal Dutch Shell PLC Class A (United Kingdom) | 18,573 | | 662,506 |
SABMiller PLC | 5,200 | | 218,473 |
Standard Chartered PLC (United Kingdom) | 11,486 | | 280,762 |
SuperGroup PLC (a) | 11,900 | | 67,177 |
Taylor Wimpey PLC | 181,300 | | 147,870 |
Ted Baker PLC | 8,200 | | 120,484 |
Tesco PLC | 31,000 | | 159,678 |
Tullow Oil PLC | 5,200 | | 129,471 |
Vodafone Group PLC | 86,200 | | 238,628 |
Xstrata PLC | 12,600 | | 240,811 |
TOTAL UNITED KINGDOM | | 6,867,749 |
United States of America - 4.4% |
Apple, Inc. (a) | 115 | | 67,188 |
Beam, Inc. | 2,000 | | 113,560 |
Citrix Systems, Inc. (a) | 600 | | 51,366 |
Dunkin' Brands Group, Inc. | 100 | | 3,237 |
Manitowoc Co., Inc. | 4,100 | | 56,785 |
Mead Johnson Nutrition Co. Class A | 800 | | 68,448 |
Michael Kors Holdings Ltd. | 100 | | 4,567 |
Morgan Stanley | 4,400 | | 76,032 |
Noble Energy, Inc. | 1,000 | | 99,320 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Saba Software, Inc. (a) | 2,700 | | $ 26,244 |
salesforce.com, Inc. (a) | 500 | | 77,865 |
Visa, Inc. Class A | 700 | | 86,086 |
Yum! Brands, Inc. | 800 | | 58,184 |
TOTAL UNITED STATES OF AMERICA | | 788,882 |
TOTAL COMMON STOCKS (Cost $16,587,134) |
16,990,361
|
Nonconvertible Preferred Stocks - 2.4% |
| | | |
Germany - 2.4% |
Hugo Boss AG (non-vtg.) | 800 | | 89,288 |
ProSiebenSat.1 Media AG | 5,700 | | 144,726 |
Volkswagen AG | 1,000 | | 189,436 |
TOTAL GERMANY | | 423,450 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC Class C | 1,408,316 | | 2,286 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $361,273) |
425,736
|
Money Market Funds - 5.6% |
| | | |
Fidelity Cash Central Fund, 0.14% (b) | 311,726 | | 311,726 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 679,577 | | 679,577 |
TOTAL MONEY MARKET FUNDS (Cost $991,303) |
991,303
|
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $17,939,710) | 18,407,400 |
NET OTHER ASSETS (LIABILITIES) - (3.2)% | (565,381) |
NET ASSETS - 100% | $ 17,842,019 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
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 | $ 237 |
Fidelity Securities Lending Cash Central Fund | 2,591 |
Total | $ 2,828 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 Security 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 | $ 3,323,502 | $ 3,323,502 | $ - | $ - |
Consumer Staples | 2,514,671 | 2,088,915 | 425,756 | - |
Energy | 1,575,069 | 505,964 | 1,069,105 | - |
Financials | 3,111,280 | 1,740,575 | 1,370,705 | - |
Health Care | 2,176,210 | 695,741 | 1,480,469 | - |
Industrials | 1,612,196 | 1,612,196 | - | - |
Information Technology | 1,106,081 | 822,569 | 283,512 | - |
Materials | 1,525,395 | 1,419,878 | 105,517 | - |
Telecommunication Services | 392,100 | 153,472 | 238,628 | - |
Utilities | 79,593 | 79,593 | - | - |
Money Market Funds | 991,303 | 991,303 | - | - |
Total Investments in Securities: | $ 18,407,400 | $ 13,433,708 | $ 4,973,692 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $633,070) - See accompanying schedule: Unaffiliated issuers (cost $16,948,407) | $ 17,416,097 | |
Fidelity Central Funds (cost $991,303) | 991,303 | |
Total Investments (cost $17,939,710) | | $ 18,407,400 |
Foreign currency held at value (cost $5,034) | | 5,032 |
Receivable for investments sold | | 87,591 |
Receivable for fund shares sold | | 8,014 |
Dividends receivable | | 92,284 |
Distributions receivable from Fidelity Central Funds | | 1,135 |
Prepaid expenses | | 18 |
Receivable from investment adviser for expense reductions | | 9,002 |
Other receivables | | 2,998 |
Total assets | | 18,613,474 |
| | |
Liabilities | | |
Payable for investments purchased | $ 30,896 | |
Payable for fund shares redeemed | 6,945 | |
Accrued management fee | 10,440 | |
Distribution and service plan fees payable | 6,894 | |
Other affiliated payables | 5,309 | |
Other payables and accrued expenses | 31,394 | |
Collateral on securities loaned, at value | 679,577 | |
Total liabilities | | 771,455 |
| | |
Net Assets | | $ 17,842,019 |
Net Assets consist of: | | |
Paid in capital | | $ 35,551,609 |
Undistributed net investment income | | 100,270 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (18,278,704) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 468,844 |
Net Assets | | $ 17,842,019 |
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, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($8,166,396 ÷ 741,138 shares) | | $ 11.02 |
| | |
Maximum offering price per share (100/94.25 of $11.02) | | $ 11.69 |
Class T:
Net Asset Value and redemption price per share ($5,914,758 ÷ 538,362 shares) | | $ 10.99 |
| | |
Maximum offering price per share (100/96.50 of $10.99) | | $ 11.39 |
Class B:
Net Asset Value and offering price per share
($925,594 ÷ 86,405 shares)A | | $ 10.71 |
| | |
Class C:
Net Asset Value and offering price per share ($2,419,787 ÷ 227,449 shares)A | | $ 10.64 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($415,484 ÷ 37,021 shares) | | $ 11.22 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 272,467 |
Income from Fidelity Central Funds | | 2,828 |
Income before foreign taxes withheld | | 275,295 |
Less foreign taxes withheld | | (14,926) |
Total income | | 260,369 |
| | |
Expenses | | |
Management fee | $ 62,644 | |
Transfer agent fees | 27,983 | |
Distribution and service plan fees | 41,563 | |
Accounting and security lending fees | 4,603 | |
Custodian fees and expenses | 14,826 | |
Independent trustees' compensation | 53 | |
Registration fees | 55,697 | |
Audit | 25,511 | |
Legal | 78 | |
Miscellaneous | 88 | |
Total expenses before reductions | 233,046 | |
Expense reductions | (89,956) | 143,090 |
Net investment income (loss) | | 117,279 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (568,594) | |
Foreign currency transactions | 95 | |
Total net realized gain (loss) | | (568,499) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,447,931 | |
Assets and liabilities in foreign currencies | 1,151 | |
Total change in net unrealized appreciation (depreciation) | | 1,449,082 |
Net gain (loss) | | 880,583 |
Net increase (decrease) in net assets resulting from operations | | $ 997,862 |
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, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 117,279 | $ 207,981 |
Net realized gain (loss) | (568,499) | 1,827,999 |
Change in net unrealized appreciation (depreciation) | 1,449,082 | (3,861,503) |
Net increase (decrease) in net assets resulting
from operations | 997,862 | (1,825,523) |
Distributions to shareholders from net investment income | (221,435) | (69,262) |
Share transactions - net increase (decrease) | (909,811) | (3,369,781) |
Redemption fees | 29,901 | 300 |
Total increase (decrease) in net assets | (103,483) | (5,264,266) |
| | |
Net Assets | | |
Beginning of period | 17,945,502 | 23,209,768 |
End of period (including undistributed net investment income of $100,270 and undistributed net investment income of $204,426, respectively) | $ 17,842,019 | $ 17,945,502 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.61 | $ 11.74 | $ 10.82 | $ 8.98 | $ 20.94 | $ 17.49 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 | .14 | .06 | .15 | .25 | .32 |
Net realized and unrealized gain (loss) | .48 | (1.21) | .99 | 1.99 | (9.22) | 4.48 |
Total from investment operations | .56 | (1.07) | 1.05 | 2.14 | (8.97) | 4.80 |
Distributions from net investment income | (.17) | (.06) | (.13) | (.30) | (.31) | (.12) |
Distributions from net realized gain | - | - | - | - | (2.68) | (1.23) |
Total distributions | (.17) | (.06) | (.13) | (.30) | (2.99) | (1.35) |
Redemption fees added to paid in capital E | .02 | - I | - I | - I | - I | - I |
Net asset value, end of period | $ 11.02 | $ 10.61 | $ 11.74 | $ 10.82 | $ 8.98 | $ 20.94 |
Total Return B,C,D | 5.58% | (9.19)% | 9.74% | 25.27% | (49.77)% | 29.16% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.37% A | 2.00% | 2.05% | 2.00% | 1.63% | 1.53% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.40% A | 1.41% | 1.43% | 1.46% | 1.46% | 1.46% |
Net investment income (loss) | 1.55% A | 1.18% | .61% | 1.73% | 1.65% | 1.69% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 8,166 | $ 8,025 | $ 10,276 | $ 10,904 | $ 10,286 | $ 29,273 |
Portfolio turnover rate G | 129% A | 118% | 143% | 109% | 112% | 173% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.56 | $ 11.68 | $ 10.78 | $ 8.92 | $ 20.75 | $ 17.35 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 | .11 | .04 | .13 | .21 | .27 |
Net realized and unrealized gain (loss) | .47 | (1.20) | .97 | 1.99 | (9.17) | 4.44 |
Total from investment operations | .54 | (1.09) | 1.01 | 2.12 | (8.96) | 4.71 |
Distributions from net investment income | (.13) | (.03) | (.11) | (.26) | (.19) | (.08) |
Distributions from net realized gain | - | - | - | - | (2.68) | (1.23) |
Total distributions | (.13) | (.03) | (.11) | (.26) | (2.87) | (1.31) |
Redemption fees added to paid in capital E | .02 | - I | - I | - I | - I | - I |
Net asset value, end of period | $ 10.99 | $ 10.56 | $ 11.68 | $ 10.78 | $ 8.92 | $ 20.75 |
Total Return B,C,D | 5.44% | (9.38)% | 9.42% | 24.99% | (49.91)% | 28.86% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.72% A | 2.27% | 2.34% | 2.28% | 1.88% | 1.80% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.65% A | 1.66% | 1.67% | 1.71% | 1.71% | 1.71% |
Net investment income (loss) | 1.30% A | .93% | .36% | 1.48% | 1.40% | 1.44% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,915 | $ 5,965 | $ 7,496 | $ 8,014 | $ 7,866 | $ 21,357 |
Portfolio turnover rate G | 129% A | 118% | 143% | 109% | 112% | 173% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.23 | $ 11.35 | $ 10.48 | $ 8.61 | $ 20.16 | $ 16.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .04 | .05 | (.01) | .08 | .13 | .17 |
Net realized and unrealized gain (loss) | .46 | (1.17) | .94 | 1.95 | (8.86) | 4.34 |
Total from investment operations | .50 | (1.12) | .93 | 2.03 | (8.73) | 4.51 |
Distributions from net investment income | (.04) | - | (.06) | (.16) | (.14) | (.03) |
Distributions from net realized gain | - | - | - | - | (2.68) | (1.23) |
Total distributions | (.04) | - | (.06) | (.16) | (2.82) | (1.26) |
Redemption fees added to paid in capital E | .02 | - I | - I | - I | - I | - I |
Net asset value, end of period | $ 10.71 | $ 10.23 | $ 11.35 | $ 10.48 | $ 8.61 | $ 20.16 |
Total Return B,C,D | 5.15% | (9.87)% | 8.87% | 24.34% | (50.13)% | 28.29% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 3.23% A | 2.78% | 2.82% | 2.77% | 2.39% | 2.31% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.16% | 2.18% | 2.21% | 2.21% | 2.21% |
Net investment income (loss) | .79% A | .43% | (.14)% | .98% | .90% | .94% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 926 | $ 1,136 | $ 1,935 | $ 2,490 | $ 2,806 | $ 11,206 |
Portfolio turnover rate G | 129% A | 118% | 143% | 109% | 112% | 173% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.18 | $ 11.30 | $ 10.43 | $ 8.58 | $ 20.10 | $ 16.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .04 | .05 | (.01) | .08 | .13 | .17 |
Net realized and unrealized gain (loss) | .46 | (1.17) | .94 | 1.94 | (8.82) | 4.32 |
Total from investment operations | .50 | (1.12) | .93 | 2.02 | (8.69) | 4.49 |
Distributions from net investment income | (.06) | - | (.06) | (.17) | (.15) | (.05) |
Distributions from net realized gain | - | - | - | - | (2.68) | (1.23) |
Total distributions | (.06) | - | (.06) | (.17) | (2.83) | (1.28) |
Redemption fees added to paid in capital E | .02 | - I | - I | - I | - I | - I |
Net asset value, end of period | $ 10.64 | $ 10.18 | $ 11.30 | $ 10.43 | $ 8.58 | $ 20.10 |
Total Return B,C,D | 5.19% | (9.91)% | 8.92% | 24.29% | (50.11)% | 28.21% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 3.19% A | 2.75% | 2.82% | 2.77% | 2.38% | 2.26% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.16% | 2.18% | 2.21% | 2.21% | 2.21% |
Net investment income (loss) | .80% A | .43% | (.14)% | .98% | .90% | .94% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,420 | $ 2,524 | $ 3,166 | $ 3,913 | $ 4,522 | $ 16,084 |
Portfolio turnover rate G | 129% A | 118% | 143% | 109% | 112% | 173% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.83 | $ 11.98 | $ 11.03 | $ 9.13 | $ 21.27 | $ 17.72 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .10 | .18 | .09 | .18 | .30 | .38 |
Net realized and unrealized gain (loss) | .47 | (1.24) | 1.01 | 2.03 | (9.38) | 4.54 |
Total from investment operations | .57 | (1.06) | 1.10 | 2.21 | (9.08) | 4.92 |
Distributions from net investment income | (.20) | (.09) | (.15) | (.31) | (.38) | (.14) |
Distributions from net realized gain | - | - | - | - | (2.68) | (1.23) |
Total distributions | (.20) | (.09) | (.15) | (.31) | (3.06) | (1.37) |
Redemption fees added to paid in capital D | .02 | - H | - H | - H | - H | - H |
Net asset value, end of period | $ 11.22 | $ 10.83 | $ 11.98 | $ 11.03 | $ 9.13 | $ 21.27 |
Total Return B,C | 5.66% | (8.95)% | 10.00% | 25.57% | (49.63)% | 29.57% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 2.02% A | 1.54% | 1.80% | 1.68% | 1.27% | 1.19% |
Expenses net of fee waivers, if any | 1.20% A | 1.20% | 1.25% | 1.25% | 1.25% | 1.19% |
Expenses net of all reductions | 1.15% A | 1.16% | 1.17% | 1.21% | 1.21% | 1.15% |
Net investment income (loss) | 1.80% A | 1.43% | .86% | 1.98% | 1.90% | 2.00% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 415 | $ 296 | $ 336 | $ 434 | $ 378 | $ 1,738 |
Portfolio turnover rate F | 129% A | 118% | 143% | 109% | 112% | 173% |
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 $.01 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor® Europe Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
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 the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant market or security
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
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 are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are 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 each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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 rate 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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), 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 | $ 1,402,377 |
Gross unrealized depreciation | (1,163,863) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 238,514 |
Tax cost | $ 18,168,886 |
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. At October 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2016 | $ (9,488,728) |
2017 | (8,044,625) |
Total capital loss carryforward | $ (17,533,353) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value 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.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $11,291,953 and $12,413,564, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 10,332 | $ 325 |
Class T | .25% | .25% | 14,371 | 155 |
Class B | .75% | .25% | 5,092 | 3,830 |
Class C | .75% | .25% | 11,768 | 1,367 |
| | | $ 41,563 | $ 5,677 |
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, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 1,190 |
Class T | 866 |
Class B* | 770 |
Class C* | 167 |
| $ 2,993 |
* 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 FMR, 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
Average
Net Assets* |
Class A | $ 12,825 | .31 |
Class T | 9,536 | .33 |
Class B | 1,588 | .31 |
Class C | 3,679 | .31 |
Institutional Class | 355 | .23 |
| $ 27,983 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $29 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $26 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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 $2,591. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 38,026 |
Class T | 1.70% | 29,193 |
Class B | 2.20% | 5,221 |
Class C | 2.20% | 11,660 |
Institutional Class | 1.20% | 1,290 |
| | $ 85,390 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $4,566 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2012 | Year ended
October 31, 2011 |
From net investment income | | |
Class A | $ 122,752 | $ 48,533 |
Class T | 73,897 | 17,367 |
Class B | 4,700 | - |
Class C | 15,083 | - |
Institutional Class | 5,003 | 3,362 |
Total | $ 221,435 | $ 69,262 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2012 | Year ended
October 31, 2011 | Six months ended April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 352,950 | 113,790 | $ 3,648,669 | $ 1,369,180 |
Reinvestment of distributions | 10,620 | 3,553 | 106,515 | 42,460 |
Shares redeemed | (378,828) | (236,239) | (4,041,854) | (2,808,784) |
Net increase (decrease) | (15,258) | (118,896) | $ (286,670) | $ (1,397,144) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30,
2012 | Year ended
October 31, 2011 | Six months ended April 30,
2012 | Year ended
October 31,
2011 |
Class T | | | | |
Shares sold | 26,004 | 87,655 | $ 274,173 | $ 1,039,691 |
Reinvestment of distributions | 7,166 | 1,416 | 71,732 | 16,885 |
Shares redeemed | (59,862) | (165,637) | (621,841) | (1,980,913) |
Net increase (decrease) | (26,692) | (76,566) | $ (275,936) | $ (924,337) |
Class B | | | | |
Shares sold | 230 | 1,700 | $ 2,308 | $ 19,713 |
Reinvestment of distributions | 422 | - | 4,127 | - |
Shares redeemed | (25,340) | (61,103) | (259,741) | (715,010) |
Net increase (decrease) | (24,688) | (59,403) | $ (253,306) | $ (695,297) |
Class C | | | | |
Shares sold | 19,550 | 39,446 | $ 197,142 | $ 455,073 |
Reinvestment of distributions | 1,320 | - | 12,817 | - |
Shares redeemed | (41,405) | (71,785) | (412,032) | (822,473) |
Net increase (decrease) | (20,535) | (32,339) | $ (202,073) | $ (367,400) |
Institutional Class | | | | |
Shares sold | 22,988 | 55,800 | $ 254,698 | $ 702,293 |
Reinvestment of distributions | 381 | 124 | 3,887 | 1,508 |
Shares redeemed | (13,640) | (56,680) | (150,411) | (689,404) |
Net increase (decrease) | 9,729 | (756) | $ 108,174 | $ 14,397 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investment Advisors (U.K.) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AEUR-USAN-0612
1.784875.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Europe Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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 Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to April 30, 2012 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,055.80 | $ 7.41 |
HypotheticalA | | $ 1,000.00 | $ 1,017.65 | $ 7.27 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,054.40 | $ 8.68 |
HypotheticalA | | $ 1,000.00 | $ 1,016.41 | $ 8.52 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,051.50 | $ 11.22 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,051.90 | $ 11.22 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,056.60 | $ 6.14 |
HypotheticalA | | $ 1,000.00 | $ 1,018.90 | $ 6.02 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class A (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) | 3.7 | 5.0 |
Nestle SA (Switzerland, Food Products) | 3.6 | 3.8 |
Sanofi SA (France, Pharmaceuticals) | 2.5 | 3.1 |
British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 2.4 | 1.9 |
HSBC Holdings PLC (United Kingdom) (United Kingdom, Commercial Banks) | 2.0 | 0.0 |
| 14.2 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 18.6 | 16.6 |
Financials | 17.5 | 22.4 |
Consumer Staples | 14.1 | 10.2 |
Health Care | 12.1 | 10.3 |
Industrials | 9.1 | 8.9 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 38.5 | 33.4 |
France | 13.0 | 16.9 |
Germany | 9.6 | 10.0 |
Switzerland | 7.2 | 8.7 |
Italy | 4.9 | 4.9 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 97.6% | | | Stocks 98.5% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 2.4% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 1.5% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.2% |
| Shares | | Value |
Australia - 0.4% |
Fortescue Metals Group Ltd. | 13,040 | | $ 76,623 |
Austria - 0.2% |
Erste Bank AG | 1,500 | | 34,541 |
Bailiwick of Guernsey - 0.4% |
Resolution Ltd. | 18,200 | | 66,111 |
Bailiwick of Jersey - 3.1% |
Experian PLC | 13,200 | | 208,357 |
Randgold Resources Ltd. sponsored ADR | 500 | | 44,575 |
Shire PLC | 5,390 | | 175,696 |
Wolseley PLC | 3,400 | | 129,299 |
TOTAL BAILIWICK OF JERSEY | | 557,927 |
Belgium - 0.4% |
Anheuser-Busch InBev SA NV (strip VVPR) (a) | 6,080 | | 8 |
KBC Groupe SA | 3,480 | | 67,306 |
TOTAL BELGIUM | | 67,314 |
Bermuda - 0.2% |
Lazard Ltd. Class A | 1,500 | | 41,265 |
British Virgin Islands - 0.4% |
Mail.ru Group Ltd. GDR (Reg. S) (a) | 1,700 | | 73,525 |
Canada - 0.4% |
Harry Winston Diamond Corp. (a) | 2,400 | | 34,260 |
Ivanhoe Mines Ltd. (a) | 2,500 | | 29,182 |
TOTAL CANADA | | 63,442 |
Cayman Islands - 0.3% |
Sands China Ltd. | 14,400 | | 56,608 |
Denmark - 2.4% |
Danske Bank A/S (a) | 6,301 | | 102,313 |
Novo Nordisk A/S Series B | 2,237 | | 329,815 |
TOTAL DENMARK | | 432,128 |
Finland - 0.4% |
Fortum Corp. | 3,700 | | 79,593 |
France - 13.0% |
Arkema SA | 1,300 | | 115,148 |
Atos Origin SA | 1,470 | | 94,682 |
BNP Paribas SA | 4,969 | | 199,641 |
Carrefour SA | 5,892 | | 118,362 |
Christian Dior SA | 600 | | 90,429 |
Common Stocks - continued |
| Shares | | Value |
France - continued |
Compagnie Generale de Geophysique SA (a) | 2,400 | | $ 68,832 |
Danone | 2,600 | | 182,936 |
Essilor International SA | 1,060 | | 93,371 |
Eurofins Scientific SA | 400 | | 47,265 |
JC Decaux SA | 3,100 | | 87,965 |
LVMH Moet Hennessy - Louis Vuitton SA | 814 | | 134,858 |
PPR SA | 1,600 | | 267,619 |
Publicis Groupe SA | 2,200 | | 113,466 |
Remy Cointreau SA | 800 | | 89,161 |
Sanofi SA | 5,808 | | 443,659 |
Schneider Electric SA | 1,400 | | 86,013 |
Vivendi | 4,279 | | 79,105 |
TOTAL FRANCE | | 2,312,512 |
Germany - 7.2% |
adidas AG | 1,600 | | 133,439 |
Allianz AG | 2,175 | | 242,377 |
BASF AG | 1,884 | | 155,104 |
Bayer AG (d) | 3,400 | | 239,494 |
Deutsche Boerse AG | 1,300 | | 81,624 |
Fresenius Medical Care AG & Co. KGaA | 1,300 | | 92,322 |
SAP AG | 4,275 | | 283,512 |
Wirecard AG | 2,900 | | 53,746 |
TOTAL GERMANY | | 1,281,618 |
Ireland - 1.6% |
CRH PLC | 5,200 | | 105,517 |
Elan Corp. PLC (a) | 6,200 | | 85,481 |
Ingersoll-Rand PLC | 2,100 | | 89,292 |
TOTAL IRELAND | | 280,290 |
Italy - 4.9% |
Brunello Cucinelli SpA | 600 | | 9,531 |
ENI SpA | 15,200 | | 337,767 |
Fiat Industrial SpA | 10,000 | | 113,450 |
Intesa Sanpaolo SpA | 64,361 | | 97,385 |
Prada SpA | 20,300 | | 137,886 |
Prysmian SpA | 7,200 | | 117,236 |
Salvatore Ferragamo Italia SpA | 2,700 | | 66,017 |
TOTAL ITALY | | 879,272 |
Luxembourg - 0.4% |
Millicom International Cellular SA (depository receipt) | 700 | | 74,367 |
Common Stocks - continued |
| Shares | | Value |
Netherlands - 2.9% |
AEGON NV | 22,200 | | $ 103,273 |
Gemalto NV | 614 | | 45,753 |
HeidelbergCement Finance AG (d) | 2,500 | | 137,460 |
LyondellBasell Industries NV Class A | 2,100 | | 87,738 |
NXP Semiconductors NV (a) | 2,900 | | 74,965 |
Randstad Holding NV | 2,000 | | 69,261 |
TOTAL NETHERLANDS | | 518,450 |
Norway - 0.5% |
Schibsted ASA (B Shares) | 2,300 | | 87,743 |
Spain - 3.1% |
Banco Bilbao Vizcaya Argentaria SA | 27,292 | | 184,700 |
Banco Bilbao Vizcaya Argentaria SA rights 4/30/12 (a) | 24,158 | | 3,454 |
Grifols SA (a)(d) | 5,800 | | 146,075 |
Inditex SA (d) | 2,522 | | 226,859 |
TOTAL SPAIN | | 561,088 |
Sweden - 2.9% |
H&M Hennes & Mauritz AB (B Shares) | 5,148 | | 176,866 |
Swedbank AB (A Shares) | 9,705 | | 160,721 |
Swedish Match Co. AB | 4,200 | | 170,731 |
TOTAL SWEDEN | | 508,318 |
Switzerland - 7.2% |
Adecco SA (Reg.) | 1,365 | | 66,479 |
Clariant AG (Reg.) | 5,140 | | 65,358 |
Nestle SA | 10,595 | | 649,090 |
Roche Holding AG (participation certificate) | 928 | | 169,536 |
Schindler Holding AG (participation certificate) | 1,065 | | 137,768 |
UBS AG | 15,434 | | 192,764 |
TOTAL SWITZERLAND | | 1,280,995 |
United Kingdom - 38.5% |
Aegis Group PLC | 96,418 | | 278,093 |
Anglo American PLC (United Kingdom) | 5,800 | | 222,923 |
Antofagasta PLC | 4,700 | | 90,093 |
Aviva PLC | 22,200 | | 111,124 |
Barclays PLC | 59,400 | | 210,323 |
Barratt Developments PLC (a) | 63,400 | | 137,583 |
Bellway PLC | 8,000 | | 102,255 |
BG Group PLC | 11,773 | | 277,173 |
British American Tobacco PLC (United Kingdom) | 8,300 | | 425,756 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - continued |
British Land Co. PLC | 15,396 | | $ 122,297 |
Domino Printing Sciences PLC | 6,700 | | 65,140 |
Filtrona PLC | 16,000 | | 120,603 |
GlaxoSmithKline PLC | 15,300 | | 353,496 |
Hilton Food Group PLC | 9,700 | | 44,831 |
HSBC Holdings PLC (United Kingdom) | 39,700 | | 358,423 |
ICAP PLC | 9,600 | | 59,164 |
Imagination Technologies Group PLC (a) | 9,500 | | 106,009 |
Intertek Group PLC | 1,900 | | 77,560 |
ITV PLC | 57,900 | | 78,659 |
Kingfisher PLC | 12,700 | | 59,882 |
Lloyds Banking Group PLC (a) | 168,000 | | 84,337 |
Meggitt PLC | 21,600 | | 143,216 |
Michael Page International PLC | 20,400 | | 137,610 |
Next PLC | 3,300 | | 156,884 |
Old Mutual PLC | 44,012 | | 105,582 |
Persimmon PLC | 9,400 | | 95,891 |
Prudential PLC | 10,260 | | 125,761 |
Reckitt Benckiser Group PLC | 4,700 | | 273,637 |
Rolls-Royce Group PLC | 13,286 | | 177,584 |
Royal Dutch Shell PLC Class A (United Kingdom) | 18,573 | | 662,506 |
SABMiller PLC | 5,200 | | 218,473 |
Standard Chartered PLC (United Kingdom) | 11,486 | | 280,762 |
SuperGroup PLC (a) | 11,900 | | 67,177 |
Taylor Wimpey PLC | 181,300 | | 147,870 |
Ted Baker PLC | 8,200 | | 120,484 |
Tesco PLC | 31,000 | | 159,678 |
Tullow Oil PLC | 5,200 | | 129,471 |
Vodafone Group PLC | 86,200 | | 238,628 |
Xstrata PLC | 12,600 | | 240,811 |
TOTAL UNITED KINGDOM | | 6,867,749 |
United States of America - 4.4% |
Apple, Inc. (a) | 115 | | 67,188 |
Beam, Inc. | 2,000 | | 113,560 |
Citrix Systems, Inc. (a) | 600 | | 51,366 |
Dunkin' Brands Group, Inc. | 100 | | 3,237 |
Manitowoc Co., Inc. | 4,100 | | 56,785 |
Mead Johnson Nutrition Co. Class A | 800 | | 68,448 |
Michael Kors Holdings Ltd. | 100 | | 4,567 |
Morgan Stanley | 4,400 | | 76,032 |
Noble Energy, Inc. | 1,000 | | 99,320 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Saba Software, Inc. (a) | 2,700 | | $ 26,244 |
salesforce.com, Inc. (a) | 500 | | 77,865 |
Visa, Inc. Class A | 700 | | 86,086 |
Yum! Brands, Inc. | 800 | | 58,184 |
TOTAL UNITED STATES OF AMERICA | | 788,882 |
TOTAL COMMON STOCKS (Cost $16,587,134) |
16,990,361
|
Nonconvertible Preferred Stocks - 2.4% |
| | | |
Germany - 2.4% |
Hugo Boss AG (non-vtg.) | 800 | | 89,288 |
ProSiebenSat.1 Media AG | 5,700 | | 144,726 |
Volkswagen AG | 1,000 | | 189,436 |
TOTAL GERMANY | | 423,450 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC Class C | 1,408,316 | | 2,286 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $361,273) |
425,736
|
Money Market Funds - 5.6% |
| | | |
Fidelity Cash Central Fund, 0.14% (b) | 311,726 | | 311,726 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 679,577 | | 679,577 |
TOTAL MONEY MARKET FUNDS (Cost $991,303) |
991,303
|
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $17,939,710) | 18,407,400 |
NET OTHER ASSETS (LIABILITIES) - (3.2)% | (565,381) |
NET ASSETS - 100% | $ 17,842,019 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
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 | $ 237 |
Fidelity Securities Lending Cash Central Fund | 2,591 |
Total | $ 2,828 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 Security 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 | $ 3,323,502 | $ 3,323,502 | $ - | $ - |
Consumer Staples | 2,514,671 | 2,088,915 | 425,756 | - |
Energy | 1,575,069 | 505,964 | 1,069,105 | - |
Financials | 3,111,280 | 1,740,575 | 1,370,705 | - |
Health Care | 2,176,210 | 695,741 | 1,480,469 | - |
Industrials | 1,612,196 | 1,612,196 | - | - |
Information Technology | 1,106,081 | 822,569 | 283,512 | - |
Materials | 1,525,395 | 1,419,878 | 105,517 | - |
Telecommunication Services | 392,100 | 153,472 | 238,628 | - |
Utilities | 79,593 | 79,593 | - | - |
Money Market Funds | 991,303 | 991,303 | - | - |
Total Investments in Securities: | $ 18,407,400 | $ 13,433,708 | $ 4,973,692 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $633,070) - See accompanying schedule: Unaffiliated issuers (cost $16,948,407) | $ 17,416,097 | |
Fidelity Central Funds (cost $991,303) | 991,303 | |
Total Investments (cost $17,939,710) | | $ 18,407,400 |
Foreign currency held at value (cost $5,034) | | 5,032 |
Receivable for investments sold | | 87,591 |
Receivable for fund shares sold | | 8,014 |
Dividends receivable | | 92,284 |
Distributions receivable from Fidelity Central Funds | | 1,135 |
Prepaid expenses | | 18 |
Receivable from investment adviser for expense reductions | | 9,002 |
Other receivables | | 2,998 |
Total assets | | 18,613,474 |
| | |
Liabilities | | |
Payable for investments purchased | $ 30,896 | |
Payable for fund shares redeemed | 6,945 | |
Accrued management fee | 10,440 | |
Distribution and service plan fees payable | 6,894 | |
Other affiliated payables | 5,309 | |
Other payables and accrued expenses | 31,394 | |
Collateral on securities loaned, at value | 679,577 | |
Total liabilities | | 771,455 |
| | |
Net Assets | | $ 17,842,019 |
Net Assets consist of: | | |
Paid in capital | | $ 35,551,609 |
Undistributed net investment income | | 100,270 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (18,278,704) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 468,844 |
Net Assets | | $ 17,842,019 |
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, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($8,166,396 ÷ 741,138 shares) | | $ 11.02 |
| | |
Maximum offering price per share (100/94.25 of $11.02) | | $ 11.69 |
Class T:
Net Asset Value and redemption price per share ($5,914,758 ÷ 538,362 shares) | | $ 10.99 |
| | |
Maximum offering price per share (100/96.50 of $10.99) | | $ 11.39 |
Class B:
Net Asset Value and offering price per share
($925,594 ÷ 86,405 shares)A | | $ 10.71 |
| | |
Class C:
Net Asset Value and offering price per share ($2,419,787 ÷ 227,449 shares)A | | $ 10.64 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($415,484 ÷ 37,021 shares) | | $ 11.22 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 272,467 |
Income from Fidelity Central Funds | | 2,828 |
Income before foreign taxes withheld | | 275,295 |
Less foreign taxes withheld | | (14,926) |
Total income | | 260,369 |
| | |
Expenses | | |
Management fee | $ 62,644 | |
Transfer agent fees | 27,983 | |
Distribution and service plan fees | 41,563 | |
Accounting and security lending fees | 4,603 | |
Custodian fees and expenses | 14,826 | |
Independent trustees' compensation | 53 | |
Registration fees | 55,697 | |
Audit | 25,511 | |
Legal | 78 | |
Miscellaneous | 88 | |
Total expenses before reductions | 233,046 | |
Expense reductions | (89,956) | 143,090 |
Net investment income (loss) | | 117,279 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (568,594) | |
Foreign currency transactions | 95 | |
Total net realized gain (loss) | | (568,499) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,447,931 | |
Assets and liabilities in foreign currencies | 1,151 | |
Total change in net unrealized appreciation (depreciation) | | 1,449,082 |
Net gain (loss) | | 880,583 |
Net increase (decrease) in net assets resulting from operations | | $ 997,862 |
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, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 117,279 | $ 207,981 |
Net realized gain (loss) | (568,499) | 1,827,999 |
Change in net unrealized appreciation (depreciation) | 1,449,082 | (3,861,503) |
Net increase (decrease) in net assets resulting
from operations | 997,862 | (1,825,523) |
Distributions to shareholders from net investment income | (221,435) | (69,262) |
Share transactions - net increase (decrease) | (909,811) | (3,369,781) |
Redemption fees | 29,901 | 300 |
Total increase (decrease) in net assets | (103,483) | (5,264,266) |
| | |
Net Assets | | |
Beginning of period | 17,945,502 | 23,209,768 |
End of period (including undistributed net investment income of $100,270 and undistributed net investment income of $204,426, respectively) | $ 17,842,019 | $ 17,945,502 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.61 | $ 11.74 | $ 10.82 | $ 8.98 | $ 20.94 | $ 17.49 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 | .14 | .06 | .15 | .25 | .32 |
Net realized and unrealized gain (loss) | .48 | (1.21) | .99 | 1.99 | (9.22) | 4.48 |
Total from investment operations | .56 | (1.07) | 1.05 | 2.14 | (8.97) | 4.80 |
Distributions from net investment income | (.17) | (.06) | (.13) | (.30) | (.31) | (.12) |
Distributions from net realized gain | - | - | - | - | (2.68) | (1.23) |
Total distributions | (.17) | (.06) | (.13) | (.30) | (2.99) | (1.35) |
Redemption fees added to paid in capital E | .02 | - I | - I | - I | - I | - I |
Net asset value, end of period | $ 11.02 | $ 10.61 | $ 11.74 | $ 10.82 | $ 8.98 | $ 20.94 |
Total Return B,C,D | 5.58% | (9.19)% | 9.74% | 25.27% | (49.77)% | 29.16% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.37% A | 2.00% | 2.05% | 2.00% | 1.63% | 1.53% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.40% A | 1.41% | 1.43% | 1.46% | 1.46% | 1.46% |
Net investment income (loss) | 1.55% A | 1.18% | .61% | 1.73% | 1.65% | 1.69% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 8,166 | $ 8,025 | $ 10,276 | $ 10,904 | $ 10,286 | $ 29,273 |
Portfolio turnover rate G | 129% A | 118% | 143% | 109% | 112% | 173% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.56 | $ 11.68 | $ 10.78 | $ 8.92 | $ 20.75 | $ 17.35 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 | .11 | .04 | .13 | .21 | .27 |
Net realized and unrealized gain (loss) | .47 | (1.20) | .97 | 1.99 | (9.17) | 4.44 |
Total from investment operations | .54 | (1.09) | 1.01 | 2.12 | (8.96) | 4.71 |
Distributions from net investment income | (.13) | (.03) | (.11) | (.26) | (.19) | (.08) |
Distributions from net realized gain | - | - | - | - | (2.68) | (1.23) |
Total distributions | (.13) | (.03) | (.11) | (.26) | (2.87) | (1.31) |
Redemption fees added to paid in capital E | .02 | - I | - I | - I | - I | - I |
Net asset value, end of period | $ 10.99 | $ 10.56 | $ 11.68 | $ 10.78 | $ 8.92 | $ 20.75 |
Total Return B,C,D | 5.44% | (9.38)% | 9.42% | 24.99% | (49.91)% | 28.86% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.72% A | 2.27% | 2.34% | 2.28% | 1.88% | 1.80% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.65% A | 1.66% | 1.67% | 1.71% | 1.71% | 1.71% |
Net investment income (loss) | 1.30% A | .93% | .36% | 1.48% | 1.40% | 1.44% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,915 | $ 5,965 | $ 7,496 | $ 8,014 | $ 7,866 | $ 21,357 |
Portfolio turnover rate G | 129% A | 118% | 143% | 109% | 112% | 173% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.23 | $ 11.35 | $ 10.48 | $ 8.61 | $ 20.16 | $ 16.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .04 | .05 | (.01) | .08 | .13 | .17 |
Net realized and unrealized gain (loss) | .46 | (1.17) | .94 | 1.95 | (8.86) | 4.34 |
Total from investment operations | .50 | (1.12) | .93 | 2.03 | (8.73) | 4.51 |
Distributions from net investment income | (.04) | - | (.06) | (.16) | (.14) | (.03) |
Distributions from net realized gain | - | - | - | - | (2.68) | (1.23) |
Total distributions | (.04) | - | (.06) | (.16) | (2.82) | (1.26) |
Redemption fees added to paid in capital E | .02 | - I | - I | - I | - I | - I |
Net asset value, end of period | $ 10.71 | $ 10.23 | $ 11.35 | $ 10.48 | $ 8.61 | $ 20.16 |
Total Return B,C,D | 5.15% | (9.87)% | 8.87% | 24.34% | (50.13)% | 28.29% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 3.23% A | 2.78% | 2.82% | 2.77% | 2.39% | 2.31% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.16% | 2.18% | 2.21% | 2.21% | 2.21% |
Net investment income (loss) | .79% A | .43% | (.14)% | .98% | .90% | .94% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 926 | $ 1,136 | $ 1,935 | $ 2,490 | $ 2,806 | $ 11,206 |
Portfolio turnover rate G | 129% A | 118% | 143% | 109% | 112% | 173% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.18 | $ 11.30 | $ 10.43 | $ 8.58 | $ 20.10 | $ 16.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .04 | .05 | (.01) | .08 | .13 | .17 |
Net realized and unrealized gain (loss) | .46 | (1.17) | .94 | 1.94 | (8.82) | 4.32 |
Total from investment operations | .50 | (1.12) | .93 | 2.02 | (8.69) | 4.49 |
Distributions from net investment income | (.06) | - | (.06) | (.17) | (.15) | (.05) |
Distributions from net realized gain | - | - | - | - | (2.68) | (1.23) |
Total distributions | (.06) | - | (.06) | (.17) | (2.83) | (1.28) |
Redemption fees added to paid in capital E | .02 | - I | - I | - I | - I | - I |
Net asset value, end of period | $ 10.64 | $ 10.18 | $ 11.30 | $ 10.43 | $ 8.58 | $ 20.10 |
Total Return B,C,D | 5.19% | (9.91)% | 8.92% | 24.29% | (50.11)% | 28.21% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 3.19% A | 2.75% | 2.82% | 2.77% | 2.38% | 2.26% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.16% | 2.18% | 2.21% | 2.21% | 2.21% |
Net investment income (loss) | .80% A | .43% | (.14)% | .98% | .90% | .94% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,420 | $ 2,524 | $ 3,166 | $ 3,913 | $ 4,522 | $ 16,084 |
Portfolio turnover rate G | 129% A | 118% | 143% | 109% | 112% | 173% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.83 | $ 11.98 | $ 11.03 | $ 9.13 | $ 21.27 | $ 17.72 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .10 | .18 | .09 | .18 | .30 | .38 |
Net realized and unrealized gain (loss) | .47 | (1.24) | 1.01 | 2.03 | (9.38) | 4.54 |
Total from investment operations | .57 | (1.06) | 1.10 | 2.21 | (9.08) | 4.92 |
Distributions from net investment income | (.20) | (.09) | (.15) | (.31) | (.38) | (.14) |
Distributions from net realized gain | - | - | - | - | (2.68) | (1.23) |
Total distributions | (.20) | (.09) | (.15) | (.31) | (3.06) | (1.37) |
Redemption fees added to paid in capital D | .02 | - H | - H | - H | - H | - H |
Net asset value, end of period | $ 11.22 | $ 10.83 | $ 11.98 | $ 11.03 | $ 9.13 | $ 21.27 |
Total Return B,C | 5.66% | (8.95)% | 10.00% | 25.57% | (49.63)% | 29.57% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 2.02% A | 1.54% | 1.80% | 1.68% | 1.27% | 1.19% |
Expenses net of fee waivers, if any | 1.20% A | 1.20% | 1.25% | 1.25% | 1.25% | 1.19% |
Expenses net of all reductions | 1.15% A | 1.16% | 1.17% | 1.21% | 1.21% | 1.15% |
Net investment income (loss) | 1.80% A | 1.43% | .86% | 1.98% | 1.90% | 2.00% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 415 | $ 296 | $ 336 | $ 434 | $ 378 | $ 1,738 |
Portfolio turnover rate F | 129% A | 118% | 143% | 109% | 112% | 173% |
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 $.01 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor® Europe Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
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 the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant market or security
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
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 are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are 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 each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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 rate 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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), 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 | $ 1,402,377 |
Gross unrealized depreciation | (1,163,863) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 238,514 |
Tax cost | $ 18,168,886 |
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. At October 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2016 | $ (9,488,728) |
2017 | (8,044,625) |
Total capital loss carryforward | $ (17,533,353) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value 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.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $11,291,953 and $12,413,564, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 10,332 | $ 325 |
Class T | .25% | .25% | 14,371 | 155 |
Class B | .75% | .25% | 5,092 | 3,830 |
Class C | .75% | .25% | 11,768 | 1,367 |
| | | $ 41,563 | $ 5,677 |
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, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 1,190 |
Class T | 866 |
Class B* | 770 |
Class C* | 167 |
| $ 2,993 |
* 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 FMR, 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
Average
Net Assets* |
Class A | $ 12,825 | .31 |
Class T | 9,536 | .33 |
Class B | 1,588 | .31 |
Class C | 3,679 | .31 |
Institutional Class | 355 | .23 |
| $ 27,983 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $29 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $26 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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 $2,591. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 38,026 |
Class T | 1.70% | 29,193 |
Class B | 2.20% | 5,221 |
Class C | 2.20% | 11,660 |
Institutional Class | 1.20% | 1,290 |
| | $ 85,390 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $4,566 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2012 | Year ended
October 31, 2011 |
From net investment income | | |
Class A | $ 122,752 | $ 48,533 |
Class T | 73,897 | 17,367 |
Class B | 4,700 | - |
Class C | 15,083 | - |
Institutional Class | 5,003 | 3,362 |
Total | $ 221,435 | $ 69,262 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2012 | Year ended
October 31, 2011 | Six months ended April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 352,950 | 113,790 | $ 3,648,669 | $ 1,369,180 |
Reinvestment of distributions | 10,620 | 3,553 | 106,515 | 42,460 |
Shares redeemed | (378,828) | (236,239) | (4,041,854) | (2,808,784) |
Net increase (decrease) | (15,258) | (118,896) | $ (286,670) | $ (1,397,144) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30,
2012 | Year ended
October 31, 2011 | Six months ended April 30,
2012 | Year ended
October 31,
2011 |
Class T | | | | |
Shares sold | 26,004 | 87,655 | $ 274,173 | $ 1,039,691 |
Reinvestment of distributions | 7,166 | 1,416 | 71,732 | 16,885 |
Shares redeemed | (59,862) | (165,637) | (621,841) | (1,980,913) |
Net increase (decrease) | (26,692) | (76,566) | $ (275,936) | $ (924,337) |
Class B | | | | |
Shares sold | 230 | 1,700 | $ 2,308 | $ 19,713 |
Reinvestment of distributions | 422 | - | 4,127 | - |
Shares redeemed | (25,340) | (61,103) | (259,741) | (715,010) |
Net increase (decrease) | (24,688) | (59,403) | $ (253,306) | $ (695,297) |
Class C | | | | |
Shares sold | 19,550 | 39,446 | $ 197,142 | $ 455,073 |
Reinvestment of distributions | 1,320 | - | 12,817 | - |
Shares redeemed | (41,405) | (71,785) | (412,032) | (822,473) |
Net increase (decrease) | (20,535) | (32,339) | $ (202,073) | $ (367,400) |
Institutional Class | | | | |
Shares sold | 22,988 | 55,800 | $ 254,698 | $ 702,293 |
Reinvestment of distributions | 381 | 124 | 3,887 | 1,508 |
Shares redeemed | (13,640) | (56,680) | (150,411) | (689,404) |
Net increase (decrease) | 9,729 | (756) | $ 108,174 | $ 14,397 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investment Advisors (U.K.) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AEURI-USAN-0612
1.784876.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Global Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,047.00 | $ 7.38 |
HypotheticalA | | $ 1,000.00 | $ 1,017.65 | $ 7.27 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,046.20 | $ 8.65 |
HypotheticalA | | $ 1,000.00 | $ 1,016.41 | $ 8.52 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,043.50 | $ 11.18 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,043.50 | $ 11.18 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Institutional Class | 1.18% | | | |
Actual | | $ 1,000.00 | $ 1,049.60 | $ 6.01 |
HypotheticalA | | $ 1,000.00 | $ 1,019.00 | $ 5.92 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Proto Corp. (Japan, Media) | 1.8 | 2.3 |
Sanofi SA sponsored ADR (France, Pharmaceuticals) | 1.6 | 0.0 |
Advance Auto Parts, Inc. (United States of America, Specialty Retail) | 1.6 | 1.5 |
Computer Task Group, Inc. (United States of America, IT Services) | 1.5 | 1.7 |
carsales.com Ltd. (Australia, Internet Software & Services) | 1.5 | 1.0 |
| 8.0 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 22.7 | 18.2 |
Information Technology | 21.7 | 32.3 |
Financials | 13.2 | 9.2 |
Health Care | 10.3 | 14.8 |
Energy | 8.6 | 9.4 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United States of America | 42.9 | 35.1 |
Japan | 13.6 | 14.4 |
India | 6.0 | 16.5 |
France | 4.8 | 1.8 |
United Kingdom | 3.9 | 5.4 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 99.9% | | | Stocks 98.0% | |
| Short-Term Investments and Net Other Assets (Liabilities) 0.1% | | | Short-Term Investments and Net Other Assets (Liabilities) 2.0% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% |
| Shares | | Value |
Australia - 2.2% |
Australia & New Zealand Banking Group Ltd. | 4,479 | | $ 111,575 |
carsales.com Ltd. (d) | 205,327 | | 1,230,040 |
Goodman Group unit | 29,684 | | 111,335 |
Imdex Ltd. | 37,878 | | 99,447 |
Newcrest Mining Ltd. | 700 | | 19,180 |
Nufarm Ltd. | 20,863 | | 106,942 |
Troy Resources NL | 19,380 | | 90,052 |
TOTAL AUSTRALIA | | 1,768,571 |
Austria - 0.4% |
Austriamicrosystems AG | 1,810 | | 145,590 |
OMV AG | 4,700 | | 159,124 |
TOTAL AUSTRIA | | 304,714 |
Bailiwick of Jersey - 0.1% |
Delphi Automotive PLC | 1,900 | | 58,311 |
Belgium - 0.7% |
Anheuser-Busch InBev SA NV ADR (d) | 5,600 | | 406,672 |
KBC Groupe SA | 9,235 | | 178,612 |
TOTAL BELGIUM | | 585,284 |
Bermuda - 1.1% |
China Foods Ltd. | 58,000 | | 62,794 |
Fairwood Holdings Ltd. | 138,000 | | 236,562 |
Invesco Ltd. | 6,900 | | 171,396 |
Marvell Technology Group Ltd. (a) | 17,700 | | 265,677 |
Nabors Industries Ltd. (a) | 6,200 | | 103,230 |
Soundwill Holdings Ltd. | 38,000 | | 59,753 |
TOTAL BERMUDA | | 899,412 |
Brazil - 2.7% |
Amil Participacoes SA | 2,200 | | 21,410 |
Banco Do Est Rio Grande Sul SA | 9,700 | | 84,067 |
BM&F Bovespa SA | 26,900 | | 151,283 |
Companhia de Concessoes Rodoviarias | 33,600 | | 260,882 |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) | 6,300 | | 247,353 |
Embraer SA sponsored ADR | 3,000 | | 103,920 |
EZ Tec Empreendimentos e Participacoes SA | 22,000 | | 242,950 |
Itau Unibanco Banco Multiplo SA | 4,700 | | 73,971 |
Kroton Educacional SA unit (a) | 14,400 | | 210,015 |
Multiplus SA | 7,300 | | 158,167 |
Qualicorp SA | 7,000 | | 60,961 |
Common Stocks - continued |
| Shares | | Value |
Brazil - continued |
Tegma Gestao Logistica SA | 14,100 | | $ 214,516 |
Totvs SA | 18,000 | | 350,812 |
TOTAL BRAZIL | | 2,180,307 |
Canada - 1.6% |
Bellhaven Copper & Gold, Inc. (a) | 350,000 | | 129,334 |
Canadian National Railway Co. | 1,200 | | 102,415 |
CGI Group, Inc. Class A (sub. vtg.) (a) | 5,600 | | 125,692 |
Melcor Developments Ltd. | 15,900 | | 246,287 |
Novagold Resources, Inc. (a) | 8,800 | | 63,433 |
Petrobank Energy & Resources Ltd. (a) | 11,500 | | 164,860 |
PHX Energy Services Corp. (d) | 8,600 | | 83,323 |
Suncor Energy, Inc. | 3,100 | | 102,407 |
Talisman Energy, Inc. | 20,000 | | 261,605 |
TOTAL CANADA | | 1,279,356 |
Cayman Islands - 3.4% |
3SBio, Inc. sponsored ADR (a) | 4,100 | | 53,628 |
Biostime International Holdings Ltd. | 163,000 | | 469,547 |
Ctrip.com International Ltd. sponsored ADR (a)(d) | 8,500 | | 184,195 |
Daphne International Holdings Ltd. | 334,000 | | 476,980 |
International Taifeng Holdings Ltd. | 264,000 | | 81,664 |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a) | 20,300 | | 315,056 |
Pico Far East Holdings Ltd. | 674,000 | | 162,448 |
Prince Frog International Holdings Ltd. | 236,000 | | 90,949 |
Shenguan Holdings Group Ltd. | 422,000 | | 228,442 |
Shenzhou International Group Holdings Ltd. | 327,000 | | 615,339 |
SITC International Holdings Co. Ltd. | 191,000 | | 57,852 |
TOTAL CAYMAN ISLANDS | | 2,736,100 |
China - 0.1% |
China CITIC Bank Corp. Ltd. (H Shares) | 177,000 | | 112,697 |
Denmark - 0.3% |
Carlsberg A/S Series B | 2,800 | | 241,351 |
Finland - 0.1% |
Nokian Tyres PLC | 2,200 | | 104,350 |
France - 4.8% |
Arkema SA | 3,600 | | 318,872 |
BNP Paribas SA | 5,000 | | 200,887 |
Danone SA | 3,100 | | 218,116 |
Edenred SA | 15,600 | | 498,315 |
Ingenico SA | 9,775 | | 514,241 |
Common Stocks - continued |
| Shares | | Value |
France - continued |
Maisons France Confort | 7,200 | | $ 198,919 |
Natixis SA | 61,000 | | 185,891 |
Safran SA | 2,400 | | 88,959 |
Sanofi SA sponsored ADR (d) | 34,400 | | 1,313,392 |
Societe Generale Series A | 7,600 | | 179,687 |
Ubisoft Entertainment SA (a) | 27,659 | | 190,361 |
Ubisoft Entertainment SA warrants 10/10/13 (a) | 27,659 | | 989 |
TOTAL FRANCE | | 3,908,629 |
Germany - 0.5% |
Aareal Bank AG (a) | 10,646 | | 205,408 |
adidas AG | 2,000 | | 166,799 |
Isra Vision AG | 2,500 | | 59,836 |
TOTAL GERMANY | | 432,043 |
Hong Kong - 0.5% |
AIA Group Ltd. | 80,200 | | 285,297 |
Lenovo Group Ltd. | 118,000 | | 113,458 |
TOTAL HONG KONG | | 398,755 |
India - 6.0% |
Bata India Ltd. | 7,330 | | 122,250 |
Cipla Ltd. | 17,616 | | 104,361 |
CRISIL Ltd. | 10,681 | | 211,075 |
eClerx | 18,500 | | 258,013 |
ICRA Ltd. | 7,131 | | 151,611 |
Indian Bank | 22,225 | | 93,348 |
Indoco Remedies Ltd. | 17,236 | | 153,591 |
INFO Edge India Ltd. | 58,933 | | 855,936 |
Ipca Laboratories Ltd. | 18,779 | | 128,884 |
Jubilant Foodworks Ltd. (a) | 53,214 | | 1,197,757 |
Lovable Lingerie Ltd. | 11,220 | | 78,571 |
Manappuram General Finance & Leasing Ltd. | 503,449 | | 287,262 |
Natco Pharma Ltd. | 9,352 | | 76,020 |
Opto Circuits India Ltd. | 98,153 | | 346,839 |
Page Industries Ltd. | 3,112 | | 184,847 |
Prakash Industries Ltd. | 58,881 | | 58,641 |
Sobha Developers Ltd. | 57,939 | | 363,377 |
South Indian Bank Ltd. | 419,216 | | 196,174 |
Sun TV Ltd. | 2,642 | | 14,368 |
TOTAL INDIA | | 4,882,925 |
Common Stocks - continued |
| Shares | | Value |
Ireland - 1.2% |
Jazz Pharmaceuticals PLC (a) | 2,900 | | $ 147,987 |
Paddy Power PLC (Ireland) | 4,200 | | 274,106 |
Trinity Biotech PLC sponsored ADR | 47,941 | | 552,280 |
TOTAL IRELAND | | 974,373 |
Israel - 0.9% |
ClickSoftware Technologies Ltd. | 43,800 | | 474,354 |
NICE Systems Ltd. sponsored ADR (a) | 6,300 | | 242,046 |
TOTAL ISRAEL | | 716,400 |
Italy - 0.9% |
Banca Popolare dell'Emilia Romagna Scrl | 27,500 | | 168,771 |
De Longhi SpA | 18,200 | | 256,351 |
ENI SpA | 12,300 | | 273,324 |
Gentium SpA sponsored ADR (a) | 4,900 | | 46,550 |
TOTAL ITALY | | 744,996 |
Japan - 13.6% |
Ajinomoto Co., Inc. | 38,000 | | 490,468 |
Asahi Glass Co. Ltd. | 26,000 | | 204,439 |
CAC Corp. | 53,700 | | 469,517 |
CKD Corp. | 28,900 | | 213,929 |
Credit Saison Co. Ltd. | 7,200 | | 154,529 |
Daihatsu Motor Co. Ltd. | 26,000 | | 490,830 |
Fujitsu Ltd. | 21,000 | | 102,073 |
Hitachi Capital Corp. | 14,800 | | 244,672 |
Hitachi Transport System Ltd. | 12,900 | | 236,098 |
IT Holdings Corp. | 18,000 | | 230,513 |
Iwatsuka Confectionary Co. Ltd. | 1,300 | | 52,749 |
Kakaku.com, Inc. | 1,800 | | 55,977 |
Kanto Natural Gas Development | 9,000 | | 47,227 |
Kintetsu World Express, Inc. | 6,900 | | 247,057 |
KOMERI Co. Ltd. | 4,700 | | 131,689 |
MEGANE TOP CO. LTD. | 14,700 | | 188,777 |
Micronics Japan Co. Ltd. | 20,000 | | 93,780 |
Mitsubishi UFJ Lease & Finance Co. Ltd. | 5,080 | | 211,077 |
Nomura Real Estate Holdings, Inc. | 6,500 | | 113,635 |
Nomura Research Institute Ltd. | 3,200 | | 73,419 |
NSD Co. Ltd. | 11,100 | | 91,791 |
ORIX Corp. | 2,290 | | 218,962 |
Otsuka Corp. | 2,900 | | 233,250 |
Piolax, Inc. | 5,000 | | 121,973 |
Proto Corp. | 42,200 | | 1,452,476 |
Common Stocks - continued |
| Shares | | Value |
Japan - continued |
Relo Holdings Corp. | 8,100 | | $ 238,952 |
Rohto Pharmaceutical Co. Ltd. | 30,000 | | 384,288 |
Ryoyo Electro Corp. | 18,600 | | 205,852 |
Sekisui House Ltd. | 23,000 | | 213,232 |
Shimamura Co. Ltd. | 2,200 | | 249,157 |
Shinsei Bank Ltd. | 191,000 | | 246,490 |
Ship Healthcare Holdings, Inc. | 10,300 | | 243,496 |
Shoei Co. Ltd. | 8,700 | | 62,432 |
Square Enix Holdings Co. Ltd. | 11,100 | | 217,273 |
Sumitomo Mitsui Financial Group, Inc. | 9,700 | | 310,408 |
The Suruga Bank Ltd. | 43,000 | | 428,901 |
Tocalo Co. Ltd. | 3,100 | | 55,865 |
Tohokushinsha Film Corp. | 15,100 | | 132,158 |
Tokyo Seimitsu Co. Ltd. | 10,500 | | 215,850 |
Toshiba Plant Systems & Services Corp. | 19,000 | | 201,222 |
Toyo Suisan Kaisha Ltd. | 19,000 | | 487,784 |
Tsutsumi Jewelry Co. Ltd. | 23,000 | | 672,831 |
USS Co. Ltd. | 1,090 | | 110,573 |
Xebio Co. Ltd. | 9,500 | | 261,507 |
TOTAL JAPAN | | 11,109,178 |
Korea (South) - 1.9% |
Hyundai Department Store Co. Ltd. | 411 | | 58,006 |
Hyundai Motor Co. | 523 | | 124,257 |
KB Financial Group, Inc. | 2,900 | | 98,116 |
Kia Motors Corp. | 1,110 | | 81,915 |
Korea Investment Holdings Co. Ltd. | 2,910 | | 100,423 |
LG Household & Health Care Ltd. | 486 | | 255,014 |
LIG Non-Life Insurance Co. Ltd. | 4,490 | | 93,366 |
MegaStudy Co. Ltd. | 3,198 | | 298,258 |
Orion Corp. | 248 | | 197,061 |
Samsung Electronics Co. Ltd. | 101 | | 124,225 |
Woongjin Coway Co. Ltd. | 4,710 | | 150,870 |
TOTAL KOREA (SOUTH) | | 1,581,511 |
Luxembourg - 0.3% |
Altisource Portfolio Solutions SA (a) | 4,700 | | 281,201 |
Malaysia - 0.1% |
Malaysian Plantations Bhd | 83,900 | | 109,537 |
Netherlands - 2.7% |
Gemalto NV | 16,177 | | 1,205,457 |
ING Groep NV (Certificaten Van Aandelen) (a) | 12,600 | | 88,898 |
Common Stocks - continued |
| Shares | | Value |
Netherlands - continued |
LyondellBasell Industries NV Class A | 7,600 | | $ 317,528 |
Randstad Holding NV | 4,447 | | 154,002 |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 13,901 | | 476,205 |
TOTAL NETHERLANDS | | 2,242,090 |
Norway - 0.2% |
Schibsted ASA (B Shares) | 3,500 | | 133,521 |
Panama - 0.6% |
Copa Holdings SA Class A | 5,902 | | 479,892 |
Poland - 0.2% |
Eurocash SA | 11,900 | | 145,308 |
Russia - 2.4% |
Gazprom OAO sponsored ADR (Reg. S) | 18,700 | | 215,798 |
Mobile TeleSystems OJSC sponsored ADR | 14,900 | | 291,444 |
Pharmstandard OJSC (a) | 15,933 | | 935,767 |
Vozrozhdenie Bank | 25,400 | | 481,520 |
TOTAL RUSSIA | | 1,924,529 |
Singapore - 0.1% |
Breadtalk Group Ltd. | 209,000 | | 93,722 |
South Africa - 0.5% |
Life Healthcare Group Holdings Ltd. | 32,200 | | 111,280 |
Super Group Ltd. (a) | 179,100 | | 338,489 |
TOTAL SOUTH AFRICA | | 449,769 |
Sweden - 1.4% |
AarhusKarlshamn AB | 20,700 | | 696,083 |
EnergyO Solutions AB (a) | 46,207 | | 178,757 |
Intrum Justitia AB | 14,800 | | 224,618 |
Swedol AB | 2,500 | | 10,899 |
TOTAL SWEDEN | | 1,110,357 |
Switzerland - 0.4% |
Aryzta AG | 6,420 | | 323,281 |
Thailand - 0.5% |
Asian Property Development PCL (For. Reg.) | 1,212,200 | | 269,991 |
Supalai PCL (For. Reg.) | 235,700 | | 125,686 |
TOTAL THAILAND | | 395,677 |
Turkey - 0.2% |
Turkiye Halk Bankasi A/S | 21,000 | | 147,012 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - 3.9% |
Aberdeen Asset Management PLC | 64,300 | | $ 295,876 |
Ashtead Group PLC | 15,400 | | 62,114 |
Barclays PLC | 55,618 | | 196,931 |
Domino Printing Sciences PLC | 21,300 | | 207,087 |
G4S PLC (United Kingdom) | 53,700 | | 243,701 |
GlaxoSmithKline PLC | 24,900 | | 575,298 |
HSBC Holdings PLC (United Kingdom) | 24,600 | | 222,096 |
Kingfisher PLC | 31,500 | | 148,526 |
Microgen PLC | 17,400 | | 37,985 |
Moneysupermarket.com Group PLC | 206,300 | | 446,349 |
Pearson PLC | 4,100 | | 77,236 |
Royal Dutch Shell PLC: | | | |
Class A sponsored ADR | 527 | | 37,702 |
Class B sponsored ADR | 1,100 | | 80,696 |
Royalblue Group PLC | 5,000 | | 125,790 |
Shanks Group PLC | 31,500 | | 47,293 |
Speedy Hire PLC | 411,500 | | 183,674 |
TelecityGroup PLC (a) | 3,700 | | 48,464 |
Vodafone Group PLC sponsored ADR | 2,600 | | 72,358 |
Volex PLC | 12,400 | | 52,882 |
TOTAL UNITED KINGDOM | | 3,162,058 |
United States of America - 42.9% |
ACCO Brands Corp. (a) | 8,500 | | 89,675 |
Actuant Corp. Class A | 5,900 | | 160,893 |
Advance Auto Parts, Inc. | 13,800 | | 1,266,840 |
Aetna, Inc. | 5,800 | | 255,432 |
AGCO Corp. (a) | 4,200 | | 195,594 |
Albemarle Corp. | 3,700 | | 241,610 |
Alliance Data Systems Corp. (a) | 3,600 | | 462,564 |
American Public Education, Inc. (a) | 7,000 | | 243,040 |
Amgen, Inc. | 5,500 | | 391,105 |
Apache Corp. | 6,900 | | 661,986 |
Apple, Inc. (a) | 1,481 | | 865,259 |
Arrow Electronics, Inc. (a) | 2,700 | | 113,535 |
Autodesk, Inc. (a) | 3,600 | | 141,732 |
Bank of Commerce Holdings | 11,000 | | 46,860 |
BB&T Corp. | 10,400 | | 333,216 |
Bed Bath & Beyond, Inc. (a) | 1,100 | | 77,429 |
Biogen Idec, Inc. (a) | 1,300 | | 174,213 |
Brocade Communications Systems, Inc. (a) | 19,100 | | 105,814 |
Celgene Corp. (a) | 3,100 | | 226,052 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Centene Corp. (a) | 4,200 | | $ 166,278 |
CF Industries Holdings, Inc. | 2,500 | | 482,650 |
Commercial Metals Co. | 4,300 | | 63,554 |
Computer Task Group, Inc. (a) | 86,200 | | 1,243,004 |
Corning, Inc. | 8,800 | | 126,280 |
Corporate Executive Board Co. | 5,600 | | 231,672 |
Corrections Corp. of America (a) | 6,900 | | 199,341 |
Cracker Barrel Old Country Store, Inc. | 5,600 | | 322,112 |
CVR Energy, Inc. (a) | 8,000 | | 242,880 |
Deere & Co. | 2,000 | | 164,720 |
Delek US Holdings, Inc. | 15,100 | | 246,130 |
Discover Financial Services | 35,600 | | 1,206,840 |
Discovery Communications, Inc. (a) | 3,300 | | 179,586 |
Dycom Industries, Inc. (a) | 8,900 | | 208,171 |
Entegris, Inc. (a) | 15,200 | | 134,520 |
EPAM Systems, Inc. | 3,600 | | 74,304 |
Equifax, Inc. | 5,500 | | 252,010 |
Extra Space Storage, Inc. | 2,200 | | 66,770 |
Fiserv, Inc. (a) | 3,800 | | 267,102 |
FMC Corp. | 2,300 | | 254,035 |
General Electric Co. | 6,400 | | 125,312 |
Google, Inc. Class A (a) | 1,900 | | 1,149,937 |
H.B. Fuller Co. | 1,300 | | 42,770 |
Health Net, Inc. (a) | 6,300 | | 224,343 |
Helmerich & Payne, Inc. | 1,800 | | 92,502 |
Heska Corp. | 4,600 | | 57,523 |
Hess Corp. | 15,100 | | 787,314 |
HollyFrontier Corp. | 9,900 | | 305,118 |
Humana, Inc. | 1,700 | | 137,156 |
InfoSpace, Inc. (a) | 8,800 | | 97,944 |
International Paper Co. | 1,700 | | 56,627 |
Intuit, Inc. | 4,800 | | 278,256 |
Jabil Circuit, Inc. | 8,800 | | 206,360 |
Jarden Corp. | 26,900 | | 1,127,917 |
John Wiley & Sons, Inc. Class A | 700 | | 31,633 |
JPMorgan Chase & Co. | 3,400 | | 146,132 |
Kennametal, Inc. | 3,500 | | 147,805 |
Landec Corp. (a) | 33,400 | | 215,096 |
Lincoln National Corp. | 4,300 | | 106,511 |
Lithia Motors, Inc. Class A (sub. vtg.) | 11,000 | | 295,130 |
Marathon Oil Corp. | 20,600 | | 604,404 |
Marathon Petroleum Corp. | 7,400 | | 307,914 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
MasterCard, Inc. Class A | 1,100 | | $ 497,497 |
Maximus, Inc. | 4,900 | | 216,825 |
McKesson Corp. | 3,200 | | 292,512 |
Mentor Graphics Corp. (a) | 4,600 | | 66,470 |
Merck & Co., Inc. | 5,700 | | 223,668 |
Molina Healthcare, Inc. (a) | 3,600 | | 92,340 |
Motorola Solutions, Inc. | 11,800 | | 602,154 |
Murphy Oil Corp. | 13,800 | | 758,586 |
MWI Veterinary Supply, Inc. (a) | 600 | | 56,640 |
Nanosphere, Inc. (a) | 21,570 | | 38,179 |
NeuStar, Inc. Class A (a) | 5,700 | | 207,195 |
Norfolk Southern Corp. | 500 | | 36,465 |
Omnicare, Inc. | 10,300 | | 358,852 |
On Assignment, Inc. (a) | 7,500 | | 140,325 |
Papa John's International, Inc. (a) | 3,400 | | 136,952 |
Parametric Technology Corp. (a) | 14,700 | | 317,226 |
PDF Solutions, Inc. (a) | 68,700 | | 605,934 |
Penske Automotive Group, Inc. | 16,200 | | 428,328 |
Pioneer Natural Resources Co. | 100 | | 11,582 |
Portfolio Recovery Associates, Inc. (a) | 1,500 | | 103,230 |
Prudential Financial, Inc. | 3,400 | | 205,836 |
PVH Corp. | 700 | | 62,160 |
QEP Resources, Inc. | 21,700 | | 668,577 |
Rayonier, Inc. | 2,200 | | 99,770 |
Rockwood Holdings, Inc. (a) | 9,500 | | 525,730 |
Ross Stores, Inc. | 5,900 | | 363,381 |
Safeway, Inc. | 15,400 | | 313,082 |
Sealed Air Corp. | 1,600 | | 30,688 |
Smart Balance, Inc. (a) | 175,400 | | 1,034,860 |
Sonic Automotive, Inc. Class A (sub. vtg.) (d) | 31,800 | | 534,876 |
Steel Dynamics, Inc. | 4,800 | | 61,296 |
Stone Energy Corp. (a) | 10,700 | | 300,135 |
Synopsys, Inc. (a) | 13,100 | | 393,131 |
Synta Pharmaceuticals Corp. (a) | 23,867 | | 103,821 |
TD Ameritrade Holding Corp. | 1,800 | | 33,822 |
Tesoro Corp. (a) | 4,600 | | 106,950 |
The AES Corp. (a) | 17,200 | | 215,344 |
The Walt Disney Co. | 24,100 | | 1,038,951 |
Time Warner, Inc. | 9,900 | | 370,854 |
Total System Services, Inc. | 12,600 | | 296,352 |
Towers Watson & Co. | 7,100 | | 464,340 |
U.S. Bancorp | 3,800 | | 122,246 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Unit Corp. (a) | 4,000 | | $ 169,000 |
UnitedHealth Group, Inc. | 4,900 | | 275,135 |
Valero Energy Corp. | 12,400 | | 306,280 |
Valspar Corp. | 11,300 | | 577,995 |
Viacom, Inc. Class B (non-vtg.) | 5,200 | | 241,228 |
ViroPharma, Inc. (a) | 5,700 | | 123,975 |
Visa, Inc. Class A | 4,500 | | 553,410 |
W.R. Grace & Co. (a) | 9,900 | | 590,139 |
Weight Watchers International, Inc. | 3,200 | | 243,072 |
Wesco Aircraft Holdings, Inc. (a) | 16,300 | | 257,377 |
Western Refining, Inc. | 5,300 | | 100,965 |
Wyndham Worldwide Corp. | 5,100 | | 256,734 |
TOTAL UNITED STATES OF AMERICA | | 34,960,984 |
TOTAL COMMON STOCKS (Cost $78,876,390) |
80,978,201
|
Nonconvertible Preferred Stocks - 0.5% |
| | | |
Germany - 0.5% |
Volkswagen AG
(Cost $389,141) | 2,100 | |
397,815
|
Money Market Funds - 3.8% |
| | | |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c)
(Cost $3,085,075) | 3,085,075 | |
3,085,075
|
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $82,350,606) | | 84,461,091 |
NET OTHER ASSETS (LIABILITIES) - (3.7)% | | (2,975,915) |
NET ASSETS - 100% | $ 81,485,176 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
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 | $ 1,165 |
Fidelity Securities Lending Cash Central Fund | 6,515 |
Total | $ 7,680 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 Security 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 | $ 18,309,488 | $ 14,144,617 | $ 4,164,871 | $ - |
Consumer Staples | 6,283,488 | 4,776,282 | 1,507,206 | - |
Energy | 7,199,619 | 6,879,068 | 320,551 | - |
Financials | 10,876,046 | 7,906,205 | 2,969,841 | - |
Health Care | 8,392,295 | 7,189,213 | 1,203,082 | - |
Industrials | 7,187,716 | 6,029,106 | 1,158,610 | - |
Information Technology | 17,776,489 | 15,787,194 | 1,989,295 | - |
Materials | 4,345,619 | 4,345,619 | - | - |
Telecommunication Services | 363,802 | 363,802 | - | - |
Utilities | 641,454 | 641,454 | - | - |
Money Market Funds | 3,085,075 | 3,085,075 | - | - |
Total Investments in Securities: | $ 84,461,091 | $ 71,147,635 | $ 13,313,456 | $ - |
Transfers from Level 2 to Level 1 during the period were $20,555,023. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,965,645) - See accompanying schedule: Unaffiliated issuers (cost $79,265,531) | $ 81,376,016 | |
Fidelity Central Funds (cost $3,085,075) | 3,085,075 | |
Total Investments (cost $82,350,606) | | $ 84,461,091 |
Foreign currency held at value (cost $177,753) | | 177,061 |
Receivable for investments sold | | 2,644,785 |
Receivable for fund shares sold | | 67,289 |
Dividends receivable | | 199,410 |
Distributions receivable from Fidelity Central Funds | | 2,066 |
Prepaid expenses | | 174 |
Other receivables | | 70,701 |
Total assets | | 87,622,577 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1,746,196 | |
Payable for investments purchased | 548,616 | |
Payable for fund shares redeemed | 617,762 | |
Accrued management fee | 40,038 | |
Distribution and service plan fees payable | 23,468 | |
Other affiliated payables | 22,107 | |
Other payables and accrued expenses | 54,139 | |
Collateral on securities loaned, at value | 3,085,075 | |
Total liabilities | | 6,137,401 |
| | |
Net Assets | | $ 81,485,176 |
Net Assets consist of: | | |
Paid in capital | | $ 110,318,211 |
Accumulated net investment loss | | (102,653) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (30,829,806) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,099,424 |
Net Assets | | $ 81,485,176 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($29,446,375 ÷ 2,937,595 shares) | | $ 10.02 |
| | |
Maximum offering price per share (100/94.25 of $10.02) | | $ 10.63 |
Class T:
Net Asset Value and redemption price per share ($17,567,691 ÷ 1,804,273 shares) | | $ 9.74 |
| | |
Maximum offering price per share (100/96.50 of $9.74) | | $ 10.09 |
Class B:
Net Asset Value and offering price per share ($1,563,296 ÷ 171,382 shares)A | | $ 9.12 |
| | |
Class C:
Net Asset Value and offering price per share ($10,040,459 ÷ 1,102,325 shares)A | | $ 9.11 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($22,867,355 ÷ 2,205,520 shares) | | $ 10.37 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 594,662 |
Income from Fidelity Central Funds | | 7,680 |
Income before foreign taxes withheld | | 602,342 |
Less foreign taxes withheld | | (28,986) |
Total income | | 573,356 |
| | |
Expenses | | |
Management fee
Basic fee | $ 318,086 | |
Performance adjustment | (47,059) | |
Transfer agent fees | 118,485 | |
Distribution and service plan fees | 150,720 | |
Accounting and security lending fees | 23,494 | |
Custodian fees and expenses | 43,835 | |
Independent trustees' compensation | 284 | |
Registration fees | 64,764 | |
Audit | 45,724 | |
Legal | 187 | |
Miscellaneous | 701 | |
Total expenses before reductions | 719,221 | |
Expense reductions | (43,212) | 676,009 |
Net investment income (loss) | | (102,653) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (5,600,089) | |
Foreign currency transactions | (255,708) | |
Total net realized gain (loss) | | (5,855,797) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 9,272,089 | |
Assets and liabilities in foreign currencies | 84,805 | |
Total change in net unrealized appreciation (depreciation) | | 9,356,894 |
Net gain (loss) | | 3,501,097 |
Net increase (decrease) in net assets resulting from operations | | $ 3,398,444 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (102,653) | $ (393,823) |
Net realized gain (loss) | (5,855,797) | (13,816,008) |
Change in net unrealized appreciation (depreciation) | 9,356,894 | (16,449,325) |
Net increase (decrease) in net assets resulting
from operations | 3,398,444 | (30,659,156) |
Distributions to shareholders from net realized gain | - | (352,610) |
Share transactions - net increase (decrease) | (24,743,487) | 56,562,275 |
Redemption fees | 400 | 6,577 |
Total increase (decrease) in net assets | (21,344,643) | 25,557,086 |
| | |
Net Assets | | |
Beginning of period | 102,829,819 | 77,272,733 |
End of period (including accumulated net investment loss of $102,653 and undistributed net investment loss of $0, respectively) | $ 81,485,176 | $ 102,829,819 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.57 | $ 11.41 | $ 9.04 | $ 6.88 | $ 15.38 | $ 14.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.03) | .01 | .04 | .04 | .01 |
Net realized and unrealized gain (loss) | .46 | (1.76) | 2.47 | 2.13 | (6.74) | 2.69 |
Total from investment operations | .45 | (1.79) | 2.48 | 2.17 | (6.70) | 2.70 |
Distributions from net investment income | - | - | (.03) | (.01) | - | - |
Distributions from net realized gain | - | (.05) | (.08) | - | (1.80) | (2.15) |
Total distributions | - | (.05) | (.11) | (.01) | (1.80) | (2.15) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.02 | $ 9.57 | $ 11.41 | $ 9.04 | $ 6.88 | $ 15.38 |
Total Return B,C, D | 4.70% | (15.81)% | 27.68% | 31.68% | (48.99)% | 20.55% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.54% A | 1.51% | 1.89% | 2.22% | 1.90% | 1.81% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.43% A | 1.43% | 1.44% | 1.43% | 1.41% | 1.45% |
Net investment income (loss) | (.15)% A | (.24)% | .13% | .53% | .38% | .06% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 29,446 | $ 36,367 | $ 30,383 | $ 6,997 | $ 6,904 | $ 14,000 |
Portfolio turnover rate G | 148% A | 140% | 179% | 258% | 257% | 102% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.31 | $ 11.11 | $ 8.82 | $ 6.72 | $ 15.05 | $ 14.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.05) | (.01) | .02 | .01 | (.03) |
Net realized and unrealized gain (loss) | .45 | (1.72) | 2.39 | 2.09 | (6.59) | 2.64 |
Total from investment operations | .43 | (1.77) | 2.38 | 2.11 | (6.58) | 2.61 |
Distributions from net investment income | - | - | (.01) | (.01) | - | - |
Distributions from net realized gain | - | (.03) | (.08) | - | (1.75) | (2.15) |
Total distributions | - | (.03) | (.09) | (.01) | (1.75) | (2.15) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.74 | $ 9.31 | $ 11.11 | $ 8.82 | $ 6.72 | $ 15.05 |
Total Return B, C, D | 4.62% | (15.97)% | 27.20% | 31.50% | (49.12)% | 20.24% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.82% A | 1.80% | 2.32% | 2.50% | 2.17% | 2.08% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.68% A | 1.68% | 1.70% | 1.69% | 1.66% | 1.71% |
Net investment income (loss) | (.40)% A | (.49)% | (.13)% | .27% | .13% | (.19)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 17,568 | $ 24,180 | $ 23,237 | $ 10,494 | $ 8,104 | $ 22,039 |
Portfolio turnover rate G | 148% A | 140% | 179% | 258% | 257% | 102% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.74 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.34 | $ 14.06 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.10) | (.06) | (.02) | (.04) | (.09) |
Net realized and unrealized gain (loss) | .42 | (1.62) | 2.26 | 1.97 | (6.25) | 2.52 |
Total from investment operations | .38 | (1.72) | 2.20 | 1.95 | (6.29) | 2.43 |
Distributions from net investment income | - | - | - | (.01) | - | - |
Distributions from net realized gain | - | - I | (.05) | - | (1.68) | (2.15) |
Total distributions | - | - I | (.05) | (.01) | (1.68) | (2.15) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.12 | $ 8.74 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.34 |
Total Return B, C, D | 4.35% | (16.42)% | 26.64% | 30.62% | (49.33)% | 19.65% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.30% A | 2.32% | 2.82% | 2.98% | 2.66% | 2.57% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.18% A | 2.18% | 2.19% | 2.18% | 2.16% | 2.20% |
Net investment income (loss) | (.90)% A | (.99)% | (.62)% | (.22)% | (.37)% | (.69)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,563 | $ 1,926 | $ 2,731 | $ 2,162 | $ 1,918 | $ 5,029 |
Portfolio turnover rate G | 148% A | 140% | 179% | 258% | 257% | 102% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.73 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.36 | $ 14.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.10) | (.06) | (.02) | (.04) | (.09) |
Net realized and unrealized gain (loss) | .42 | (1.61) | 2.27 | 1.97 | (6.26) | 2.52 |
Total from investment operations | .38 | (1.71) | 2.21 | 1.95 | (6.30) | 2.43 |
Distributions from net investment income | - | - | - | (.01) | - | - |
Distributions from net realized gain | - | (.02) | (.06) | - | (1.69) | (2.15) |
Total distributions | - | (.02) | (.06) | (.01) | (1.69) | (2.15) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.11 | $ 8.73 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.36 |
Total Return B, C, D | 4.35% | (16.38)% | 26.68% | 30.62% | (49.35)% | 19.62% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.30% A | 2.28% | 2.77% | 2.97% | 2.63% | 2.57% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.18% A | 2.18% | 2.20% | 2.18% | 2.16% | 2.20% |
Net investment income (loss) | (.90)% A | (.99)% | (.63)% | (.22)% | (.37)% | (.69)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,040 | $ 11,632 | $ 7,986 | $ 3,378 | $ 2,697 | $ 5,352 |
Portfolio turnover rate G | 148% A | 140% | 179% | 258% | 257% | 102% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.88 | $ 11.76 | $ 9.31 | $ 7.07 | $ 15.76 | $ 15.11 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | - H | .04 | .06 | .07 | .05 |
Net realized and unrealized gain (loss) | .48 | (1.82) | 2.54 | 2.20 | (6.93) | 2.75 |
Total from investment operations | .49 | (1.82) | 2.58 | 2.26 | (6.86) | 2.80 |
Distributions from net investment income | - | - | (.05) | (.02) | - | - |
Distributions from net realized gain | - | (.06) | (.08) | - | (1.83) | (2.15) |
Total distributions | - | (.06) | (.13) | (.02) | (1.83) | (2.15) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 10.37 | $ 9.88 | $ 11.76 | $ 9.31 | $ 7.07 | $ 15.76 |
Total Return B, C | 4.96% | (15.60)% | 28.00% | 32.03% | (48.89)% | 20.88% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.18% A | 1.18% | 1.43% | 1.88% | 1.51% | 1.43% |
Expenses net of fee waivers, if any | 1.18% A | 1.17% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.15% A | 1.15% | 1.19% | 1.18% | 1.16% | 1.20% |
Net investment income (loss) | .12% A | .04% | .38% | .78% | .63% | .31% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,867 | $ 28,725 | $ 12,936 | $ 1,148 | $ 1,166 | $ 2,476 |
Portfolio turnover rate F | 148% A | 140% | 179% | 258% | 257% | 102% |
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 $.01 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor Global Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
(ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are 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 each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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 rate 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), net operating losses, 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 | $ 7,506,998 |
Gross unrealized depreciation | (5,449,495) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 2,057,503 |
| |
Tax cost | $ 82,403,588 |
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. At October 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2016 | $ (7,618,418) |
2017 | (3,018,401) |
2019 | (14,114,488) |
Total capital loss carryforward | $ (24,751,307) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $65,705,086 and $88,792,991, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .60% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 39,846 | $ 1,198 |
Class T | .25% | .25% | 50,454 | - |
Class B | .75% | .25% | 8,678 | 6,514 |
Class C | .75% | .25% | 51,742 | 14,207 |
| | | $ 150,720 | $ 21,919 |
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, 1.00% for Class C, 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
by FDC |
Class A | $ 8,807 |
Class T | 2,491 |
Class B* | 1,520 |
Class C* | 3,341 |
| $ 16,159 |
* 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 FMR, 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
Average
Net Assets* |
Class A | $ 46,095 | .29 |
Class T | 31,459 | .31 |
Class B | 2,644 | .30 |
Class C | 15,522 | .30 |
Institutional Class | 22,765 | .18 |
| $ 118,485 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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
Notes to Financial Statements (Unaudited) - continued
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. The commissions paid to these affiliated firms were $1,303 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $140 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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 $6,515. During the period, there were no securities loaned to FCM.
Semiannual Report
8. Expense Reductions.
FMR contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2012. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 14,221 |
Class T | 1.70% | 11,503 |
Class B | 2.20% | 872 |
Class C | 2.20% | 5,006 |
| | $ 31,602 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $11,610 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net realized gain | | |
Class A | $ - | $ 149,904 |
Class T | - | 82,578 |
Class B | - | 761 |
Class C | - | 23,129 |
Institutional Class | - | 96,238 |
Total | $ - | $ 352,610 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2012 | Year ended
October 31,
2011 | Six months ended April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 182,948 | 3,313,300 | $ 1,754,843 | $ 38,257,984 |
Reinvestment of distributions | - | 11,121 | - | 130,500 |
Shares redeemed | (1,045,722) | (2,187,648) | (9,888,832) | (23,557,856) |
Net increase (decrease) | (862,774) | 1,136,773 | $ (8,133,989) | $ 14,830,628 |
Class T | | | | |
Shares sold | 79,457 | 1,500,646 | $ 734,209 | $ 16,821,913 |
Reinvestment of distributions | - | 7,107 | - | 81,139 |
Shares redeemed | (873,291) | (1,001,188) | (8,029,250) | (10,370,670) |
Net increase (decrease) | (793,834) | 506,565 | $ (7,295,041) | $ 6,532,382 |
Class B | | | | |
Shares sold | - | 67,595 | $ - | $ 715,061 |
Reinvestment of distributions | - | 70 | - | 677 |
Shares redeemed | (48,987) | (108,399) | (427,719) | (1,075,608) |
Net increase (decrease) | (48,987) | (40,734) | $ (427,719) | $ (359,870) |
Class C | | | | |
Shares sold | 94,475 | 1,263,963 | $ 841,042 | $ 13,329,175 |
Reinvestment of distributions | - | 1,981 | - | 21,056 |
Shares redeemed | (324,863) | (696,642) | (2,806,857) | (6,685,064) |
Net increase (decrease) | (230,388) | 569,302 | $ (1,965,815) | $ 6,665,167 |
Institutional Class | | | | |
Shares sold | 157,344 | 6,587,351 | $ 1,544,581 | $ 79,174,965 |
Reinvestment of distributions | - | 6,022 | - | 72,484 |
Shares redeemed | (857,916) | (4,787,531) | (8,465,504) | (50,353,481) |
Net increase (decrease) | (700,572) | 1,805,842 | $ (6,920,923) | $ 28,893,968 |
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 International II Fund was the owner of record of approximately 11% 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.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AGLO-USAN-0612
1.784880.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Global Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,047.00 | $ 7.38 |
HypotheticalA | | $ 1,000.00 | $ 1,017.65 | $ 7.27 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,046.20 | $ 8.65 |
HypotheticalA | | $ 1,000.00 | $ 1,016.41 | $ 8.52 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,043.50 | $ 11.18 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,043.50 | $ 11.18 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Institutional Class | 1.18% | | | |
Actual | | $ 1,000.00 | $ 1,049.60 | $ 6.01 |
HypotheticalA | | $ 1,000.00 | $ 1,019.00 | $ 5.92 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Proto Corp. (Japan, Media) | 1.8 | 2.3 |
Sanofi SA sponsored ADR (France, Pharmaceuticals) | 1.6 | 0.0 |
Advance Auto Parts, Inc. (United States of America, Specialty Retail) | 1.6 | 1.5 |
Computer Task Group, Inc. (United States of America, IT Services) | 1.5 | 1.7 |
carsales.com Ltd. (Australia, Internet Software & Services) | 1.5 | 1.0 |
| 8.0 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 22.7 | 18.2 |
Information Technology | 21.7 | 32.3 |
Financials | 13.2 | 9.2 |
Health Care | 10.3 | 14.8 |
Energy | 8.6 | 9.4 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United States of America | 42.9 | 35.1 |
Japan | 13.6 | 14.4 |
India | 6.0 | 16.5 |
France | 4.8 | 1.8 |
United Kingdom | 3.9 | 5.4 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 99.9% | | | Stocks 98.0% | |
| Short-Term Investments and Net Other Assets (Liabilities) 0.1% | | | Short-Term Investments and Net Other Assets (Liabilities) 2.0% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% |
| Shares | | Value |
Australia - 2.2% |
Australia & New Zealand Banking Group Ltd. | 4,479 | | $ 111,575 |
carsales.com Ltd. (d) | 205,327 | | 1,230,040 |
Goodman Group unit | 29,684 | | 111,335 |
Imdex Ltd. | 37,878 | | 99,447 |
Newcrest Mining Ltd. | 700 | | 19,180 |
Nufarm Ltd. | 20,863 | | 106,942 |
Troy Resources NL | 19,380 | | 90,052 |
TOTAL AUSTRALIA | | 1,768,571 |
Austria - 0.4% |
Austriamicrosystems AG | 1,810 | | 145,590 |
OMV AG | 4,700 | | 159,124 |
TOTAL AUSTRIA | | 304,714 |
Bailiwick of Jersey - 0.1% |
Delphi Automotive PLC | 1,900 | | 58,311 |
Belgium - 0.7% |
Anheuser-Busch InBev SA NV ADR (d) | 5,600 | | 406,672 |
KBC Groupe SA | 9,235 | | 178,612 |
TOTAL BELGIUM | | 585,284 |
Bermuda - 1.1% |
China Foods Ltd. | 58,000 | | 62,794 |
Fairwood Holdings Ltd. | 138,000 | | 236,562 |
Invesco Ltd. | 6,900 | | 171,396 |
Marvell Technology Group Ltd. (a) | 17,700 | | 265,677 |
Nabors Industries Ltd. (a) | 6,200 | | 103,230 |
Soundwill Holdings Ltd. | 38,000 | | 59,753 |
TOTAL BERMUDA | | 899,412 |
Brazil - 2.7% |
Amil Participacoes SA | 2,200 | | 21,410 |
Banco Do Est Rio Grande Sul SA | 9,700 | | 84,067 |
BM&F Bovespa SA | 26,900 | | 151,283 |
Companhia de Concessoes Rodoviarias | 33,600 | | 260,882 |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) | 6,300 | | 247,353 |
Embraer SA sponsored ADR | 3,000 | | 103,920 |
EZ Tec Empreendimentos e Participacoes SA | 22,000 | | 242,950 |
Itau Unibanco Banco Multiplo SA | 4,700 | | 73,971 |
Kroton Educacional SA unit (a) | 14,400 | | 210,015 |
Multiplus SA | 7,300 | | 158,167 |
Qualicorp SA | 7,000 | | 60,961 |
Common Stocks - continued |
| Shares | | Value |
Brazil - continued |
Tegma Gestao Logistica SA | 14,100 | | $ 214,516 |
Totvs SA | 18,000 | | 350,812 |
TOTAL BRAZIL | | 2,180,307 |
Canada - 1.6% |
Bellhaven Copper & Gold, Inc. (a) | 350,000 | | 129,334 |
Canadian National Railway Co. | 1,200 | | 102,415 |
CGI Group, Inc. Class A (sub. vtg.) (a) | 5,600 | | 125,692 |
Melcor Developments Ltd. | 15,900 | | 246,287 |
Novagold Resources, Inc. (a) | 8,800 | | 63,433 |
Petrobank Energy & Resources Ltd. (a) | 11,500 | | 164,860 |
PHX Energy Services Corp. (d) | 8,600 | | 83,323 |
Suncor Energy, Inc. | 3,100 | | 102,407 |
Talisman Energy, Inc. | 20,000 | | 261,605 |
TOTAL CANADA | | 1,279,356 |
Cayman Islands - 3.4% |
3SBio, Inc. sponsored ADR (a) | 4,100 | | 53,628 |
Biostime International Holdings Ltd. | 163,000 | | 469,547 |
Ctrip.com International Ltd. sponsored ADR (a)(d) | 8,500 | | 184,195 |
Daphne International Holdings Ltd. | 334,000 | | 476,980 |
International Taifeng Holdings Ltd. | 264,000 | | 81,664 |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a) | 20,300 | | 315,056 |
Pico Far East Holdings Ltd. | 674,000 | | 162,448 |
Prince Frog International Holdings Ltd. | 236,000 | | 90,949 |
Shenguan Holdings Group Ltd. | 422,000 | | 228,442 |
Shenzhou International Group Holdings Ltd. | 327,000 | | 615,339 |
SITC International Holdings Co. Ltd. | 191,000 | | 57,852 |
TOTAL CAYMAN ISLANDS | | 2,736,100 |
China - 0.1% |
China CITIC Bank Corp. Ltd. (H Shares) | 177,000 | | 112,697 |
Denmark - 0.3% |
Carlsberg A/S Series B | 2,800 | | 241,351 |
Finland - 0.1% |
Nokian Tyres PLC | 2,200 | | 104,350 |
France - 4.8% |
Arkema SA | 3,600 | | 318,872 |
BNP Paribas SA | 5,000 | | 200,887 |
Danone SA | 3,100 | | 218,116 |
Edenred SA | 15,600 | | 498,315 |
Ingenico SA | 9,775 | | 514,241 |
Common Stocks - continued |
| Shares | | Value |
France - continued |
Maisons France Confort | 7,200 | | $ 198,919 |
Natixis SA | 61,000 | | 185,891 |
Safran SA | 2,400 | | 88,959 |
Sanofi SA sponsored ADR (d) | 34,400 | | 1,313,392 |
Societe Generale Series A | 7,600 | | 179,687 |
Ubisoft Entertainment SA (a) | 27,659 | | 190,361 |
Ubisoft Entertainment SA warrants 10/10/13 (a) | 27,659 | | 989 |
TOTAL FRANCE | | 3,908,629 |
Germany - 0.5% |
Aareal Bank AG (a) | 10,646 | | 205,408 |
adidas AG | 2,000 | | 166,799 |
Isra Vision AG | 2,500 | | 59,836 |
TOTAL GERMANY | | 432,043 |
Hong Kong - 0.5% |
AIA Group Ltd. | 80,200 | | 285,297 |
Lenovo Group Ltd. | 118,000 | | 113,458 |
TOTAL HONG KONG | | 398,755 |
India - 6.0% |
Bata India Ltd. | 7,330 | | 122,250 |
Cipla Ltd. | 17,616 | | 104,361 |
CRISIL Ltd. | 10,681 | | 211,075 |
eClerx | 18,500 | | 258,013 |
ICRA Ltd. | 7,131 | | 151,611 |
Indian Bank | 22,225 | | 93,348 |
Indoco Remedies Ltd. | 17,236 | | 153,591 |
INFO Edge India Ltd. | 58,933 | | 855,936 |
Ipca Laboratories Ltd. | 18,779 | | 128,884 |
Jubilant Foodworks Ltd. (a) | 53,214 | | 1,197,757 |
Lovable Lingerie Ltd. | 11,220 | | 78,571 |
Manappuram General Finance & Leasing Ltd. | 503,449 | | 287,262 |
Natco Pharma Ltd. | 9,352 | | 76,020 |
Opto Circuits India Ltd. | 98,153 | | 346,839 |
Page Industries Ltd. | 3,112 | | 184,847 |
Prakash Industries Ltd. | 58,881 | | 58,641 |
Sobha Developers Ltd. | 57,939 | | 363,377 |
South Indian Bank Ltd. | 419,216 | | 196,174 |
Sun TV Ltd. | 2,642 | | 14,368 |
TOTAL INDIA | | 4,882,925 |
Common Stocks - continued |
| Shares | | Value |
Ireland - 1.2% |
Jazz Pharmaceuticals PLC (a) | 2,900 | | $ 147,987 |
Paddy Power PLC (Ireland) | 4,200 | | 274,106 |
Trinity Biotech PLC sponsored ADR | 47,941 | | 552,280 |
TOTAL IRELAND | | 974,373 |
Israel - 0.9% |
ClickSoftware Technologies Ltd. | 43,800 | | 474,354 |
NICE Systems Ltd. sponsored ADR (a) | 6,300 | | 242,046 |
TOTAL ISRAEL | | 716,400 |
Italy - 0.9% |
Banca Popolare dell'Emilia Romagna Scrl | 27,500 | | 168,771 |
De Longhi SpA | 18,200 | | 256,351 |
ENI SpA | 12,300 | | 273,324 |
Gentium SpA sponsored ADR (a) | 4,900 | | 46,550 |
TOTAL ITALY | | 744,996 |
Japan - 13.6% |
Ajinomoto Co., Inc. | 38,000 | | 490,468 |
Asahi Glass Co. Ltd. | 26,000 | | 204,439 |
CAC Corp. | 53,700 | | 469,517 |
CKD Corp. | 28,900 | | 213,929 |
Credit Saison Co. Ltd. | 7,200 | | 154,529 |
Daihatsu Motor Co. Ltd. | 26,000 | | 490,830 |
Fujitsu Ltd. | 21,000 | | 102,073 |
Hitachi Capital Corp. | 14,800 | | 244,672 |
Hitachi Transport System Ltd. | 12,900 | | 236,098 |
IT Holdings Corp. | 18,000 | | 230,513 |
Iwatsuka Confectionary Co. Ltd. | 1,300 | | 52,749 |
Kakaku.com, Inc. | 1,800 | | 55,977 |
Kanto Natural Gas Development | 9,000 | | 47,227 |
Kintetsu World Express, Inc. | 6,900 | | 247,057 |
KOMERI Co. Ltd. | 4,700 | | 131,689 |
MEGANE TOP CO. LTD. | 14,700 | | 188,777 |
Micronics Japan Co. Ltd. | 20,000 | | 93,780 |
Mitsubishi UFJ Lease & Finance Co. Ltd. | 5,080 | | 211,077 |
Nomura Real Estate Holdings, Inc. | 6,500 | | 113,635 |
Nomura Research Institute Ltd. | 3,200 | | 73,419 |
NSD Co. Ltd. | 11,100 | | 91,791 |
ORIX Corp. | 2,290 | | 218,962 |
Otsuka Corp. | 2,900 | | 233,250 |
Piolax, Inc. | 5,000 | | 121,973 |
Proto Corp. | 42,200 | | 1,452,476 |
Common Stocks - continued |
| Shares | | Value |
Japan - continued |
Relo Holdings Corp. | 8,100 | | $ 238,952 |
Rohto Pharmaceutical Co. Ltd. | 30,000 | | 384,288 |
Ryoyo Electro Corp. | 18,600 | | 205,852 |
Sekisui House Ltd. | 23,000 | | 213,232 |
Shimamura Co. Ltd. | 2,200 | | 249,157 |
Shinsei Bank Ltd. | 191,000 | | 246,490 |
Ship Healthcare Holdings, Inc. | 10,300 | | 243,496 |
Shoei Co. Ltd. | 8,700 | | 62,432 |
Square Enix Holdings Co. Ltd. | 11,100 | | 217,273 |
Sumitomo Mitsui Financial Group, Inc. | 9,700 | | 310,408 |
The Suruga Bank Ltd. | 43,000 | | 428,901 |
Tocalo Co. Ltd. | 3,100 | | 55,865 |
Tohokushinsha Film Corp. | 15,100 | | 132,158 |
Tokyo Seimitsu Co. Ltd. | 10,500 | | 215,850 |
Toshiba Plant Systems & Services Corp. | 19,000 | | 201,222 |
Toyo Suisan Kaisha Ltd. | 19,000 | | 487,784 |
Tsutsumi Jewelry Co. Ltd. | 23,000 | | 672,831 |
USS Co. Ltd. | 1,090 | | 110,573 |
Xebio Co. Ltd. | 9,500 | | 261,507 |
TOTAL JAPAN | | 11,109,178 |
Korea (South) - 1.9% |
Hyundai Department Store Co. Ltd. | 411 | | 58,006 |
Hyundai Motor Co. | 523 | | 124,257 |
KB Financial Group, Inc. | 2,900 | | 98,116 |
Kia Motors Corp. | 1,110 | | 81,915 |
Korea Investment Holdings Co. Ltd. | 2,910 | | 100,423 |
LG Household & Health Care Ltd. | 486 | | 255,014 |
LIG Non-Life Insurance Co. Ltd. | 4,490 | | 93,366 |
MegaStudy Co. Ltd. | 3,198 | | 298,258 |
Orion Corp. | 248 | | 197,061 |
Samsung Electronics Co. Ltd. | 101 | | 124,225 |
Woongjin Coway Co. Ltd. | 4,710 | | 150,870 |
TOTAL KOREA (SOUTH) | | 1,581,511 |
Luxembourg - 0.3% |
Altisource Portfolio Solutions SA (a) | 4,700 | | 281,201 |
Malaysia - 0.1% |
Malaysian Plantations Bhd | 83,900 | | 109,537 |
Netherlands - 2.7% |
Gemalto NV | 16,177 | | 1,205,457 |
ING Groep NV (Certificaten Van Aandelen) (a) | 12,600 | | 88,898 |
Common Stocks - continued |
| Shares | | Value |
Netherlands - continued |
LyondellBasell Industries NV Class A | 7,600 | | $ 317,528 |
Randstad Holding NV | 4,447 | | 154,002 |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 13,901 | | 476,205 |
TOTAL NETHERLANDS | | 2,242,090 |
Norway - 0.2% |
Schibsted ASA (B Shares) | 3,500 | | 133,521 |
Panama - 0.6% |
Copa Holdings SA Class A | 5,902 | | 479,892 |
Poland - 0.2% |
Eurocash SA | 11,900 | | 145,308 |
Russia - 2.4% |
Gazprom OAO sponsored ADR (Reg. S) | 18,700 | | 215,798 |
Mobile TeleSystems OJSC sponsored ADR | 14,900 | | 291,444 |
Pharmstandard OJSC (a) | 15,933 | | 935,767 |
Vozrozhdenie Bank | 25,400 | | 481,520 |
TOTAL RUSSIA | | 1,924,529 |
Singapore - 0.1% |
Breadtalk Group Ltd. | 209,000 | | 93,722 |
South Africa - 0.5% |
Life Healthcare Group Holdings Ltd. | 32,200 | | 111,280 |
Super Group Ltd. (a) | 179,100 | | 338,489 |
TOTAL SOUTH AFRICA | | 449,769 |
Sweden - 1.4% |
AarhusKarlshamn AB | 20,700 | | 696,083 |
EnergyO Solutions AB (a) | 46,207 | | 178,757 |
Intrum Justitia AB | 14,800 | | 224,618 |
Swedol AB | 2,500 | | 10,899 |
TOTAL SWEDEN | | 1,110,357 |
Switzerland - 0.4% |
Aryzta AG | 6,420 | | 323,281 |
Thailand - 0.5% |
Asian Property Development PCL (For. Reg.) | 1,212,200 | | 269,991 |
Supalai PCL (For. Reg.) | 235,700 | | 125,686 |
TOTAL THAILAND | | 395,677 |
Turkey - 0.2% |
Turkiye Halk Bankasi A/S | 21,000 | | 147,012 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - 3.9% |
Aberdeen Asset Management PLC | 64,300 | | $ 295,876 |
Ashtead Group PLC | 15,400 | | 62,114 |
Barclays PLC | 55,618 | | 196,931 |
Domino Printing Sciences PLC | 21,300 | | 207,087 |
G4S PLC (United Kingdom) | 53,700 | | 243,701 |
GlaxoSmithKline PLC | 24,900 | | 575,298 |
HSBC Holdings PLC (United Kingdom) | 24,600 | | 222,096 |
Kingfisher PLC | 31,500 | | 148,526 |
Microgen PLC | 17,400 | | 37,985 |
Moneysupermarket.com Group PLC | 206,300 | | 446,349 |
Pearson PLC | 4,100 | | 77,236 |
Royal Dutch Shell PLC: | | | |
Class A sponsored ADR | 527 | | 37,702 |
Class B sponsored ADR | 1,100 | | 80,696 |
Royalblue Group PLC | 5,000 | | 125,790 |
Shanks Group PLC | 31,500 | | 47,293 |
Speedy Hire PLC | 411,500 | | 183,674 |
TelecityGroup PLC (a) | 3,700 | | 48,464 |
Vodafone Group PLC sponsored ADR | 2,600 | | 72,358 |
Volex PLC | 12,400 | | 52,882 |
TOTAL UNITED KINGDOM | | 3,162,058 |
United States of America - 42.9% |
ACCO Brands Corp. (a) | 8,500 | | 89,675 |
Actuant Corp. Class A | 5,900 | | 160,893 |
Advance Auto Parts, Inc. | 13,800 | | 1,266,840 |
Aetna, Inc. | 5,800 | | 255,432 |
AGCO Corp. (a) | 4,200 | | 195,594 |
Albemarle Corp. | 3,700 | | 241,610 |
Alliance Data Systems Corp. (a) | 3,600 | | 462,564 |
American Public Education, Inc. (a) | 7,000 | | 243,040 |
Amgen, Inc. | 5,500 | | 391,105 |
Apache Corp. | 6,900 | | 661,986 |
Apple, Inc. (a) | 1,481 | | 865,259 |
Arrow Electronics, Inc. (a) | 2,700 | | 113,535 |
Autodesk, Inc. (a) | 3,600 | | 141,732 |
Bank of Commerce Holdings | 11,000 | | 46,860 |
BB&T Corp. | 10,400 | | 333,216 |
Bed Bath & Beyond, Inc. (a) | 1,100 | | 77,429 |
Biogen Idec, Inc. (a) | 1,300 | | 174,213 |
Brocade Communications Systems, Inc. (a) | 19,100 | | 105,814 |
Celgene Corp. (a) | 3,100 | | 226,052 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Centene Corp. (a) | 4,200 | | $ 166,278 |
CF Industries Holdings, Inc. | 2,500 | | 482,650 |
Commercial Metals Co. | 4,300 | | 63,554 |
Computer Task Group, Inc. (a) | 86,200 | | 1,243,004 |
Corning, Inc. | 8,800 | | 126,280 |
Corporate Executive Board Co. | 5,600 | | 231,672 |
Corrections Corp. of America (a) | 6,900 | | 199,341 |
Cracker Barrel Old Country Store, Inc. | 5,600 | | 322,112 |
CVR Energy, Inc. (a) | 8,000 | | 242,880 |
Deere & Co. | 2,000 | | 164,720 |
Delek US Holdings, Inc. | 15,100 | | 246,130 |
Discover Financial Services | 35,600 | | 1,206,840 |
Discovery Communications, Inc. (a) | 3,300 | | 179,586 |
Dycom Industries, Inc. (a) | 8,900 | | 208,171 |
Entegris, Inc. (a) | 15,200 | | 134,520 |
EPAM Systems, Inc. | 3,600 | | 74,304 |
Equifax, Inc. | 5,500 | | 252,010 |
Extra Space Storage, Inc. | 2,200 | | 66,770 |
Fiserv, Inc. (a) | 3,800 | | 267,102 |
FMC Corp. | 2,300 | | 254,035 |
General Electric Co. | 6,400 | | 125,312 |
Google, Inc. Class A (a) | 1,900 | | 1,149,937 |
H.B. Fuller Co. | 1,300 | | 42,770 |
Health Net, Inc. (a) | 6,300 | | 224,343 |
Helmerich & Payne, Inc. | 1,800 | | 92,502 |
Heska Corp. | 4,600 | | 57,523 |
Hess Corp. | 15,100 | | 787,314 |
HollyFrontier Corp. | 9,900 | | 305,118 |
Humana, Inc. | 1,700 | | 137,156 |
InfoSpace, Inc. (a) | 8,800 | | 97,944 |
International Paper Co. | 1,700 | | 56,627 |
Intuit, Inc. | 4,800 | | 278,256 |
Jabil Circuit, Inc. | 8,800 | | 206,360 |
Jarden Corp. | 26,900 | | 1,127,917 |
John Wiley & Sons, Inc. Class A | 700 | | 31,633 |
JPMorgan Chase & Co. | 3,400 | | 146,132 |
Kennametal, Inc. | 3,500 | | 147,805 |
Landec Corp. (a) | 33,400 | | 215,096 |
Lincoln National Corp. | 4,300 | | 106,511 |
Lithia Motors, Inc. Class A (sub. vtg.) | 11,000 | | 295,130 |
Marathon Oil Corp. | 20,600 | | 604,404 |
Marathon Petroleum Corp. | 7,400 | | 307,914 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
MasterCard, Inc. Class A | 1,100 | | $ 497,497 |
Maximus, Inc. | 4,900 | | 216,825 |
McKesson Corp. | 3,200 | | 292,512 |
Mentor Graphics Corp. (a) | 4,600 | | 66,470 |
Merck & Co., Inc. | 5,700 | | 223,668 |
Molina Healthcare, Inc. (a) | 3,600 | | 92,340 |
Motorola Solutions, Inc. | 11,800 | | 602,154 |
Murphy Oil Corp. | 13,800 | | 758,586 |
MWI Veterinary Supply, Inc. (a) | 600 | | 56,640 |
Nanosphere, Inc. (a) | 21,570 | | 38,179 |
NeuStar, Inc. Class A (a) | 5,700 | | 207,195 |
Norfolk Southern Corp. | 500 | | 36,465 |
Omnicare, Inc. | 10,300 | | 358,852 |
On Assignment, Inc. (a) | 7,500 | | 140,325 |
Papa John's International, Inc. (a) | 3,400 | | 136,952 |
Parametric Technology Corp. (a) | 14,700 | | 317,226 |
PDF Solutions, Inc. (a) | 68,700 | | 605,934 |
Penske Automotive Group, Inc. | 16,200 | | 428,328 |
Pioneer Natural Resources Co. | 100 | | 11,582 |
Portfolio Recovery Associates, Inc. (a) | 1,500 | | 103,230 |
Prudential Financial, Inc. | 3,400 | | 205,836 |
PVH Corp. | 700 | | 62,160 |
QEP Resources, Inc. | 21,700 | | 668,577 |
Rayonier, Inc. | 2,200 | | 99,770 |
Rockwood Holdings, Inc. (a) | 9,500 | | 525,730 |
Ross Stores, Inc. | 5,900 | | 363,381 |
Safeway, Inc. | 15,400 | | 313,082 |
Sealed Air Corp. | 1,600 | | 30,688 |
Smart Balance, Inc. (a) | 175,400 | | 1,034,860 |
Sonic Automotive, Inc. Class A (sub. vtg.) (d) | 31,800 | | 534,876 |
Steel Dynamics, Inc. | 4,800 | | 61,296 |
Stone Energy Corp. (a) | 10,700 | | 300,135 |
Synopsys, Inc. (a) | 13,100 | | 393,131 |
Synta Pharmaceuticals Corp. (a) | 23,867 | | 103,821 |
TD Ameritrade Holding Corp. | 1,800 | | 33,822 |
Tesoro Corp. (a) | 4,600 | | 106,950 |
The AES Corp. (a) | 17,200 | | 215,344 |
The Walt Disney Co. | 24,100 | | 1,038,951 |
Time Warner, Inc. | 9,900 | | 370,854 |
Total System Services, Inc. | 12,600 | | 296,352 |
Towers Watson & Co. | 7,100 | | 464,340 |
U.S. Bancorp | 3,800 | | 122,246 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Unit Corp. (a) | 4,000 | | $ 169,000 |
UnitedHealth Group, Inc. | 4,900 | | 275,135 |
Valero Energy Corp. | 12,400 | | 306,280 |
Valspar Corp. | 11,300 | | 577,995 |
Viacom, Inc. Class B (non-vtg.) | 5,200 | | 241,228 |
ViroPharma, Inc. (a) | 5,700 | | 123,975 |
Visa, Inc. Class A | 4,500 | | 553,410 |
W.R. Grace & Co. (a) | 9,900 | | 590,139 |
Weight Watchers International, Inc. | 3,200 | | 243,072 |
Wesco Aircraft Holdings, Inc. (a) | 16,300 | | 257,377 |
Western Refining, Inc. | 5,300 | | 100,965 |
Wyndham Worldwide Corp. | 5,100 | | 256,734 |
TOTAL UNITED STATES OF AMERICA | | 34,960,984 |
TOTAL COMMON STOCKS (Cost $78,876,390) |
80,978,201
|
Nonconvertible Preferred Stocks - 0.5% |
| | | |
Germany - 0.5% |
Volkswagen AG
(Cost $389,141) | 2,100 | |
397,815
|
Money Market Funds - 3.8% |
| | | |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c)
(Cost $3,085,075) | 3,085,075 | |
3,085,075
|
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $82,350,606) | | 84,461,091 |
NET OTHER ASSETS (LIABILITIES) - (3.7)% | | (2,975,915) |
NET ASSETS - 100% | $ 81,485,176 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
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 | $ 1,165 |
Fidelity Securities Lending Cash Central Fund | 6,515 |
Total | $ 7,680 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 Security 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 | $ 18,309,488 | $ 14,144,617 | $ 4,164,871 | $ - |
Consumer Staples | 6,283,488 | 4,776,282 | 1,507,206 | - |
Energy | 7,199,619 | 6,879,068 | 320,551 | - |
Financials | 10,876,046 | 7,906,205 | 2,969,841 | - |
Health Care | 8,392,295 | 7,189,213 | 1,203,082 | - |
Industrials | 7,187,716 | 6,029,106 | 1,158,610 | - |
Information Technology | 17,776,489 | 15,787,194 | 1,989,295 | - |
Materials | 4,345,619 | 4,345,619 | - | - |
Telecommunication Services | 363,802 | 363,802 | - | - |
Utilities | 641,454 | 641,454 | - | - |
Money Market Funds | 3,085,075 | 3,085,075 | - | - |
Total Investments in Securities: | $ 84,461,091 | $ 71,147,635 | $ 13,313,456 | $ - |
Transfers from Level 2 to Level 1 during the period were $20,555,023. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,965,645) - See accompanying schedule: Unaffiliated issuers (cost $79,265,531) | $ 81,376,016 | |
Fidelity Central Funds (cost $3,085,075) | 3,085,075 | |
Total Investments (cost $82,350,606) | | $ 84,461,091 |
Foreign currency held at value (cost $177,753) | | 177,061 |
Receivable for investments sold | | 2,644,785 |
Receivable for fund shares sold | | 67,289 |
Dividends receivable | | 199,410 |
Distributions receivable from Fidelity Central Funds | | 2,066 |
Prepaid expenses | | 174 |
Other receivables | | 70,701 |
Total assets | | 87,622,577 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1,746,196 | |
Payable for investments purchased | 548,616 | |
Payable for fund shares redeemed | 617,762 | |
Accrued management fee | 40,038 | |
Distribution and service plan fees payable | 23,468 | |
Other affiliated payables | 22,107 | |
Other payables and accrued expenses | 54,139 | |
Collateral on securities loaned, at value | 3,085,075 | |
Total liabilities | | 6,137,401 |
| | |
Net Assets | | $ 81,485,176 |
Net Assets consist of: | | |
Paid in capital | | $ 110,318,211 |
Accumulated net investment loss | | (102,653) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (30,829,806) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,099,424 |
Net Assets | | $ 81,485,176 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($29,446,375 ÷ 2,937,595 shares) | | $ 10.02 |
| | |
Maximum offering price per share (100/94.25 of $10.02) | | $ 10.63 |
Class T:
Net Asset Value and redemption price per share ($17,567,691 ÷ 1,804,273 shares) | | $ 9.74 |
| | |
Maximum offering price per share (100/96.50 of $9.74) | | $ 10.09 |
Class B:
Net Asset Value and offering price per share ($1,563,296 ÷ 171,382 shares)A | | $ 9.12 |
| | |
Class C:
Net Asset Value and offering price per share ($10,040,459 ÷ 1,102,325 shares)A | | $ 9.11 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($22,867,355 ÷ 2,205,520 shares) | | $ 10.37 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 594,662 |
Income from Fidelity Central Funds | | 7,680 |
Income before foreign taxes withheld | | 602,342 |
Less foreign taxes withheld | | (28,986) |
Total income | | 573,356 |
| | |
Expenses | | |
Management fee
Basic fee | $ 318,086 | |
Performance adjustment | (47,059) | |
Transfer agent fees | 118,485 | |
Distribution and service plan fees | 150,720 | |
Accounting and security lending fees | 23,494 | |
Custodian fees and expenses | 43,835 | |
Independent trustees' compensation | 284 | |
Registration fees | 64,764 | |
Audit | 45,724 | |
Legal | 187 | |
Miscellaneous | 701 | |
Total expenses before reductions | 719,221 | |
Expense reductions | (43,212) | 676,009 |
Net investment income (loss) | | (102,653) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (5,600,089) | |
Foreign currency transactions | (255,708) | |
Total net realized gain (loss) | | (5,855,797) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 9,272,089 | |
Assets and liabilities in foreign currencies | 84,805 | |
Total change in net unrealized appreciation (depreciation) | | 9,356,894 |
Net gain (loss) | | 3,501,097 |
Net increase (decrease) in net assets resulting from operations | | $ 3,398,444 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (102,653) | $ (393,823) |
Net realized gain (loss) | (5,855,797) | (13,816,008) |
Change in net unrealized appreciation (depreciation) | 9,356,894 | (16,449,325) |
Net increase (decrease) in net assets resulting
from operations | 3,398,444 | (30,659,156) |
Distributions to shareholders from net realized gain | - | (352,610) |
Share transactions - net increase (decrease) | (24,743,487) | 56,562,275 |
Redemption fees | 400 | 6,577 |
Total increase (decrease) in net assets | (21,344,643) | 25,557,086 |
| | |
Net Assets | | |
Beginning of period | 102,829,819 | 77,272,733 |
End of period (including accumulated net investment loss of $102,653 and undistributed net investment loss of $0, respectively) | $ 81,485,176 | $ 102,829,819 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.57 | $ 11.41 | $ 9.04 | $ 6.88 | $ 15.38 | $ 14.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.03) | .01 | .04 | .04 | .01 |
Net realized and unrealized gain (loss) | .46 | (1.76) | 2.47 | 2.13 | (6.74) | 2.69 |
Total from investment operations | .45 | (1.79) | 2.48 | 2.17 | (6.70) | 2.70 |
Distributions from net investment income | - | - | (.03) | (.01) | - | - |
Distributions from net realized gain | - | (.05) | (.08) | - | (1.80) | (2.15) |
Total distributions | - | (.05) | (.11) | (.01) | (1.80) | (2.15) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.02 | $ 9.57 | $ 11.41 | $ 9.04 | $ 6.88 | $ 15.38 |
Total Return B,C, D | 4.70% | (15.81)% | 27.68% | 31.68% | (48.99)% | 20.55% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.54% A | 1.51% | 1.89% | 2.22% | 1.90% | 1.81% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.43% A | 1.43% | 1.44% | 1.43% | 1.41% | 1.45% |
Net investment income (loss) | (.15)% A | (.24)% | .13% | .53% | .38% | .06% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 29,446 | $ 36,367 | $ 30,383 | $ 6,997 | $ 6,904 | $ 14,000 |
Portfolio turnover rate G | 148% A | 140% | 179% | 258% | 257% | 102% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.31 | $ 11.11 | $ 8.82 | $ 6.72 | $ 15.05 | $ 14.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.05) | (.01) | .02 | .01 | (.03) |
Net realized and unrealized gain (loss) | .45 | (1.72) | 2.39 | 2.09 | (6.59) | 2.64 |
Total from investment operations | .43 | (1.77) | 2.38 | 2.11 | (6.58) | 2.61 |
Distributions from net investment income | - | - | (.01) | (.01) | - | - |
Distributions from net realized gain | - | (.03) | (.08) | - | (1.75) | (2.15) |
Total distributions | - | (.03) | (.09) | (.01) | (1.75) | (2.15) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.74 | $ 9.31 | $ 11.11 | $ 8.82 | $ 6.72 | $ 15.05 |
Total Return B, C, D | 4.62% | (15.97)% | 27.20% | 31.50% | (49.12)% | 20.24% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.82% A | 1.80% | 2.32% | 2.50% | 2.17% | 2.08% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.68% A | 1.68% | 1.70% | 1.69% | 1.66% | 1.71% |
Net investment income (loss) | (.40)% A | (.49)% | (.13)% | .27% | .13% | (.19)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 17,568 | $ 24,180 | $ 23,237 | $ 10,494 | $ 8,104 | $ 22,039 |
Portfolio turnover rate G | 148% A | 140% | 179% | 258% | 257% | 102% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.74 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.34 | $ 14.06 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.10) | (.06) | (.02) | (.04) | (.09) |
Net realized and unrealized gain (loss) | .42 | (1.62) | 2.26 | 1.97 | (6.25) | 2.52 |
Total from investment operations | .38 | (1.72) | 2.20 | 1.95 | (6.29) | 2.43 |
Distributions from net investment income | - | - | - | (.01) | - | - |
Distributions from net realized gain | - | - I | (.05) | - | (1.68) | (2.15) |
Total distributions | - | - I | (.05) | (.01) | (1.68) | (2.15) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.12 | $ 8.74 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.34 |
Total Return B, C, D | 4.35% | (16.42)% | 26.64% | 30.62% | (49.33)% | 19.65% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.30% A | 2.32% | 2.82% | 2.98% | 2.66% | 2.57% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.18% A | 2.18% | 2.19% | 2.18% | 2.16% | 2.20% |
Net investment income (loss) | (.90)% A | (.99)% | (.62)% | (.22)% | (.37)% | (.69)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,563 | $ 1,926 | $ 2,731 | $ 2,162 | $ 1,918 | $ 5,029 |
Portfolio turnover rate G | 148% A | 140% | 179% | 258% | 257% | 102% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.73 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.36 | $ 14.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.10) | (.06) | (.02) | (.04) | (.09) |
Net realized and unrealized gain (loss) | .42 | (1.61) | 2.27 | 1.97 | (6.26) | 2.52 |
Total from investment operations | .38 | (1.71) | 2.21 | 1.95 | (6.30) | 2.43 |
Distributions from net investment income | - | - | - | (.01) | - | - |
Distributions from net realized gain | - | (.02) | (.06) | - | (1.69) | (2.15) |
Total distributions | - | (.02) | (.06) | (.01) | (1.69) | (2.15) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.11 | $ 8.73 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.36 |
Total Return B, C, D | 4.35% | (16.38)% | 26.68% | 30.62% | (49.35)% | 19.62% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.30% A | 2.28% | 2.77% | 2.97% | 2.63% | 2.57% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.18% A | 2.18% | 2.20% | 2.18% | 2.16% | 2.20% |
Net investment income (loss) | (.90)% A | (.99)% | (.63)% | (.22)% | (.37)% | (.69)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,040 | $ 11,632 | $ 7,986 | $ 3,378 | $ 2,697 | $ 5,352 |
Portfolio turnover rate G | 148% A | 140% | 179% | 258% | 257% | 102% |
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 $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.88 | $ 11.76 | $ 9.31 | $ 7.07 | $ 15.76 | $ 15.11 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | - H | .04 | .06 | .07 | .05 |
Net realized and unrealized gain (loss) | .48 | (1.82) | 2.54 | 2.20 | (6.93) | 2.75 |
Total from investment operations | .49 | (1.82) | 2.58 | 2.26 | (6.86) | 2.80 |
Distributions from net investment income | - | - | (.05) | (.02) | - | - |
Distributions from net realized gain | - | (.06) | (.08) | - | (1.83) | (2.15) |
Total distributions | - | (.06) | (.13) | (.02) | (1.83) | (2.15) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 10.37 | $ 9.88 | $ 11.76 | $ 9.31 | $ 7.07 | $ 15.76 |
Total Return B, C | 4.96% | (15.60)% | 28.00% | 32.03% | (48.89)% | 20.88% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.18% A | 1.18% | 1.43% | 1.88% | 1.51% | 1.43% |
Expenses net of fee waivers, if any | 1.18% A | 1.17% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.15% A | 1.15% | 1.19% | 1.18% | 1.16% | 1.20% |
Net investment income (loss) | .12% A | .04% | .38% | .78% | .63% | .31% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,867 | $ 28,725 | $ 12,936 | $ 1,148 | $ 1,166 | $ 2,476 |
Portfolio turnover rate F | 148% A | 140% | 179% | 258% | 257% | 102% |
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 $.01 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor Global Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
(ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are 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 each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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 rate 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), net operating losses, 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 | $ 7,506,998 |
Gross unrealized depreciation | (5,449,495) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 2,057,503 |
| |
Tax cost | $ 82,403,588 |
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. At October 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2016 | $ (7,618,418) |
2017 | (3,018,401) |
2019 | (14,114,488) |
Total capital loss carryforward | $ (24,751,307) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $65,705,086 and $88,792,991, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .60% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 39,846 | $ 1,198 |
Class T | .25% | .25% | 50,454 | - |
Class B | .75% | .25% | 8,678 | 6,514 |
Class C | .75% | .25% | 51,742 | 14,207 |
| | | $ 150,720 | $ 21,919 |
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, 1.00% for Class C, 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
by FDC |
Class A | $ 8,807 |
Class T | 2,491 |
Class B* | 1,520 |
Class C* | 3,341 |
| $ 16,159 |
* 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 FMR, 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
Average
Net Assets* |
Class A | $ 46,095 | .29 |
Class T | 31,459 | .31 |
Class B | 2,644 | .30 |
Class C | 15,522 | .30 |
Institutional Class | 22,765 | .18 |
| $ 118,485 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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
Notes to Financial Statements (Unaudited) - continued
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. The commissions paid to these affiliated firms were $1,303 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $140 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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 $6,515. During the period, there were no securities loaned to FCM.
Semiannual Report
8. Expense Reductions.
FMR contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2012. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 14,221 |
Class T | 1.70% | 11,503 |
Class B | 2.20% | 872 |
Class C | 2.20% | 5,006 |
| | $ 31,602 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $11,610 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net realized gain | | |
Class A | $ - | $ 149,904 |
Class T | - | 82,578 |
Class B | - | 761 |
Class C | - | 23,129 |
Institutional Class | - | 96,238 |
Total | $ - | $ 352,610 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2012 | Year ended
October 31,
2011 | Six months ended April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 182,948 | 3,313,300 | $ 1,754,843 | $ 38,257,984 |
Reinvestment of distributions | - | 11,121 | - | 130,500 |
Shares redeemed | (1,045,722) | (2,187,648) | (9,888,832) | (23,557,856) |
Net increase (decrease) | (862,774) | 1,136,773 | $ (8,133,989) | $ 14,830,628 |
Class T | | | | |
Shares sold | 79,457 | 1,500,646 | $ 734,209 | $ 16,821,913 |
Reinvestment of distributions | - | 7,107 | - | 81,139 |
Shares redeemed | (873,291) | (1,001,188) | (8,029,250) | (10,370,670) |
Net increase (decrease) | (793,834) | 506,565 | $ (7,295,041) | $ 6,532,382 |
Class B | | | | |
Shares sold | - | 67,595 | $ - | $ 715,061 |
Reinvestment of distributions | - | 70 | - | 677 |
Shares redeemed | (48,987) | (108,399) | (427,719) | (1,075,608) |
Net increase (decrease) | (48,987) | (40,734) | $ (427,719) | $ (359,870) |
Class C | | | | |
Shares sold | 94,475 | 1,263,963 | $ 841,042 | $ 13,329,175 |
Reinvestment of distributions | - | 1,981 | - | 21,056 |
Shares redeemed | (324,863) | (696,642) | (2,806,857) | (6,685,064) |
Net increase (decrease) | (230,388) | 569,302 | $ (1,965,815) | $ 6,665,167 |
Institutional Class | | | | |
Shares sold | 157,344 | 6,587,351 | $ 1,544,581 | $ 79,174,965 |
Reinvestment of distributions | - | 6,022 | - | 72,484 |
Shares redeemed | (857,916) | (4,787,531) | (8,465,504) | (50,353,481) |
Net increase (decrease) | (700,572) | 1,805,842 | $ (6,920,923) | $ 28,893,968 |
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 International II Fund was the owner of record of approximately 11% 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.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AGLOI-USAN-0612
1.784881.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
International
Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,106.00 | $ 7.59 |
HypotheticalA | | $ 1,000.00 | $ 1,017.65 | $ 7.27 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,104.90 | $ 8.90 |
HypotheticalA | | $ 1,000.00 | $ 1,016.41 | $ 8.52 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,102.60 | $ 11.50 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,103.10 | $ 11.50 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,108.20 | $ 6.29 |
HypotheticalA | | $ 1,000.00 | $ 1,018.90 | $ 6.02 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class B (United Kingdom, Oil, Gas & Consumable Fuels) | 1.9 | 2.0 |
Nestle SA (Switzerland, Food Products) | 1.7 | 2.3 |
BHP Billiton PLC ADR (United Kingdom, Metals & Mining) | 1.6 | 1.7 |
British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 1.4 | 1.8 |
Unilever PLC (United Kingdom, Food Products) | 1.0 | 1.2 |
| 7.6 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Staples | 21.5 | 21.5 |
Consumer Discretionary | 19.7 | 22.0 |
Industrials | 13.8 | 9.9 |
Financials | 12.6 | 16.3 |
Materials | 11.2 | 10.9 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United States of America | 16.2 | 15.8 |
United Kingdom | 15.6 | 14.7 |
Japan | 9.2 | 7.7 |
France | 7.9 | 7.9 |
Switzerland | 4.9 | 5.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 99.1% | | | Stocks 97.9% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 0.9% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 2.1% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value |
Australia - 0.9% |
Fortescue Metals Group Ltd. | 95,080 | | $ 558,693 |
Iluka Resources Ltd. | 30,800 | | 545,513 |
TOTAL AUSTRALIA | | 1,104,206 |
Bailiwick of Jersey - 0.5% |
Experian PLC | 39,600 | | 625,072 |
Belgium - 1.2% |
Anheuser-Busch InBev SA NV (d) | 13,480 | | 971,651 |
Umicore SA | 11,111 | | 602,985 |
TOTAL BELGIUM | | 1,574,636 |
Bermuda - 0.8% |
Credicorp Ltd. (NY Shares) | 4,480 | | 586,477 |
Petra Diamonds Ltd. (a) | 193,762 | | 488,411 |
TOTAL BERMUDA | | 1,074,888 |
Brazil - 3.7% |
BR Malls Participacoes SA | 43,300 | | 537,914 |
Brasil Foods SA sponsored ADR (d) | 29,900 | | 551,057 |
Cia.Hering SA | 20,100 | | 498,770 |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 18,500 | | 776,630 |
Iguatemi Empresa de Shopping Centers SA | 22,200 | | 487,756 |
Itau Unibanco Banco Multiplo SA sponsored ADR | 51,050 | | 800,975 |
Multiplan Empreendimentos Imobiliarios SA | 23,900 | | 564,226 |
Souza Cruz SA | 38,000 | | 591,884 |
TOTAL BRAZIL | | 4,809,212 |
British Virgin Islands - 0.4% |
Arcos Dorados Holdings, Inc. | 26,900 | | 480,703 |
Canada - 2.9% |
Barrick Gold Corp. | 19,600 | | 792,929 |
Canadian National Railway Co. | 9,300 | | 793,713 |
First Quantum Minerals Ltd. | 29,600 | | 614,925 |
Potash Corp. of Saskatchewan, Inc. | 17,100 | | 727,107 |
Suncor Energy, Inc. | 25,800 | | 852,295 |
TOTAL CANADA | | 3,780,969 |
Cayman Islands - 1.8% |
Baidu.com, Inc. sponsored ADR (a) | 4,000 | | 530,800 |
Belle International Holdings Ltd. | 317,000 | | 621,853 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Golden Eagle Retail Group Ltd. (H Shares) | 204,000 | | $ 535,067 |
Hengan International Group Co. Ltd. | 56,500 | | 598,232 |
TOTAL CAYMAN ISLANDS | | 2,285,952 |
Chile - 0.4% |
Embotelladora Andina SA Class A | 102,185 | | 463,424 |
Colombia - 0.4% |
Grupo de Inversiones Surameric | 29,195 | | 529,439 |
Curacao - 0.4% |
Schlumberger Ltd. | 6,400 | | 474,496 |
Denmark - 0.8% |
Novo Nordisk A/S Series B sponsored ADR | 6,600 | | 970,332 |
Finland - 0.9% |
Kone Oyj (B Shares) | 9,500 | | 587,933 |
Nokian Tyres PLC | 11,914 | | 565,102 |
TOTAL FINLAND | | 1,153,035 |
France - 7.9% |
Air Liquide SA | 5,200 | | 668,895 |
BNP Paribas SA | 19,704 | | 791,654 |
Bureau Veritas SA | 5,800 | | 516,809 |
Casino Guichard Perrachon SA | 5,871 | | 576,607 |
CFAO SA | 11,900 | | 513,240 |
Christian Dior SA (d) | 4,040 | | 608,887 |
Edenred | 17,900 | | 571,785 |
Essilor International SA | 6,088 | | 536,265 |
L'Oreal SA | 5,200 | | 625,665 |
LVMH Moet Hennessy - Louis Vuitton SA (d) | 5,445 | | 902,093 |
Pernod Ricard SA | 6,200 | | 643,555 |
PPR SA | 4,100 | | 685,775 |
Publicis Groupe SA | 11,800 | | 608,588 |
Remy Cointreau SA | 5,100 | | 568,399 |
Schneider Electric SA | 11,639 | | 715,072 |
Technip SA | 5,500 | | 622,007 |
TOTAL FRANCE | | 10,155,296 |
Germany - 2.8% |
BASF AG (d) | 12,835 | | 1,056,669 |
Bayerische Motoren Werke AG (BMW) | 8,700 | | 827,040 |
Common Stocks - continued |
| Shares | | Value |
Germany - continued |
Henkel AG & Co. KGaA | 11,500 | | $ 703,944 |
SAP AG | 14,225 | | 943,381 |
TOTAL GERMANY | | 3,531,034 |
Hong Kong - 0.6% |
AIA Group Ltd. | 200,400 | | 712,887 |
India - 3.5% |
Asian Paints India Ltd. | 7,689 | | 514,907 |
Bajaj Auto Ltd. | 17,250 | | 532,076 |
HDFC Bank Ltd. | 61,737 | | 636,131 |
Housing Development Finance Corp. Ltd. | 46,095 | | 589,568 |
ITC Ltd. | 128,653 | | 599,721 |
Mahindra & Mahindra Ltd. | 41,377 | | 557,861 |
Smithkline Beecham Consumer Healthcare Ltd. | 10,216 | | 544,446 |
Titan Industries Ltd. | 105,822 | | 468,177 |
TOTAL INDIA | | 4,442,887 |
Indonesia - 4.7% |
PT ACE Hardware Indonesia Tbk | 1,148,000 | | 643,295 |
PT Astra International Tbk | 83,500 | | 645,068 |
PT Bank Central Asia Tbk | 579,500 | | 504,434 |
PT Global Mediacom Tbk | 3,042,500 | | 549,540 |
PT Gudang Garam Tbk | 85,500 | | 550,743 |
PT Jasa Marga Tbk | 914,000 | | 532,060 |
PT Mitra Adiperkasa Tbk | 732,500 | | 553,928 |
PT Modern Internasional Tbk | 1,437,500 | | 414,490 |
PT Semen Gresik (Persero) Tbk | 395,500 | | 522,858 |
PT Tower Bersama Infrastructure Tbk | 1,629,000 | | 540,607 |
PT United Tractors Tbk | 169,000 | | 544,301 |
TOTAL INDONESIA | | 6,001,324 |
Ireland - 0.8% |
Accenture PLC Class A | 7,900 | | 513,105 |
Dragon Oil PLC | 55,000 | | 523,571 |
TOTAL IRELAND | | 1,036,676 |
Israel - 0.8% |
Check Point Software Technologies Ltd. (a) | 9,100 | | 528,983 |
Israel Chemicals Ltd. | 45,300 | | 519,684 |
TOTAL ISRAEL | | 1,048,667 |
Italy - 1.3% |
Prada SpA | 79,300 | | 538,639 |
Common Stocks - continued |
| Shares | | Value |
Italy - continued |
Saipem SpA | 12,675 | | $ 626,198 |
Salvatore Ferragamo Italia SpA | 20,700 | | 506,127 |
TOTAL ITALY | | 1,670,964 |
Japan - 9.2% |
Canon, Inc. sponsored ADR (d) | 19,806 | | 898,400 |
Fanuc Corp. | 4,400 | | 742,109 |
Fast Retailing Co. Ltd. | 2,600 | | 581,053 |
Hitachi Ltd. | 123,000 | | 783,466 |
Japan Tobacco, Inc. | 128 | | 709,124 |
Keyence Corp. | 2,440 | | 575,937 |
Komatsu Ltd. | 25,400 | | 731,058 |
Makita Corp. | 13,300 | | 509,138 |
Mitsubishi Corp. | 33,400 | | 723,889 |
Mitsui & Co. Ltd. | 44,700 | | 698,061 |
Nabtesco Corp. | 25,400 | | 542,265 |
Nikon Corp. | 20,300 | | 601,695 |
Nissan Motor Co. Ltd. | 69,700 | | 724,719 |
Rakuten, Inc. | 561 | | 625,749 |
SMC Corp. | 3,400 | | 567,846 |
SOFTBANK CORP. | 22,500 | | 671,588 |
Sysmex Corp. | 14,100 | | 566,690 |
Unicharm Corp. | 10,600 | | 593,017 |
TOTAL JAPAN | | 11,845,804 |
Korea (South) - 0.7% |
Hyundai Motor Co. | 3,550 | | 843,425 |
Mexico - 1.7% |
Bolsa Mexicana de Valores SA de CV | 248,700 | | 497,087 |
Coca-Cola FEMSA SAB de CV sponsored ADR | 4,400 | | 466,180 |
Grupo Mexico SA de CV Series B | 180,200 | | 555,889 |
Wal-Mart de Mexico SA de CV Series V | 228,800 | | 654,181 |
TOTAL MEXICO | | 2,173,337 |
Netherlands - 0.8% |
ASML Holding NV (Netherlands) | 11,300 | | 575,022 |
LyondellBasell Industries NV Class A | 10,990 | | 459,162 |
TOTAL NETHERLANDS | | 1,034,184 |
Philippines - 1.6% |
International Container Terminal Services, Inc. | 290,500 | | 468,493 |
Metropolitan Bank & Trust Co. | 226,900 | | 491,845 |
Common Stocks - continued |
| Shares | | Value |
Philippines - continued |
SM Investments Corp. | 33,860 | | $ 561,322 |
SM Prime Holdings, Inc. | 1,419,300 | | 562,132 |
TOTAL PHILIPPINES | | 2,083,792 |
Portugal - 0.4% |
Jeronimo Martins SGPS SA | 28,600 | | 535,729 |
Russia - 1.9% |
Magnit OJSC GDR (Reg. S) | 19,795 | | 579,598 |
NOVATEK OAO GDR (Reg. S) | 4,700 | | 597,370 |
Sberbank (Savings Bank of the Russian Federation) | 218,900 | | 700,799 |
TNK-BP Holding (a) | 172,600 | | 528,184 |
TOTAL RUSSIA | | 2,405,951 |
South Africa - 1.8% |
JSE Ltd. | 47,000 | | 496,709 |
Mr Price Group Ltd. | 39,300 | | 531,545 |
Naspers Ltd. Class N | 12,500 | | 752,845 |
Shoprite Holdings Ltd. | 33,900 | | 585,775 |
TOTAL SOUTH AFRICA | | 2,366,874 |
Spain - 0.5% |
Inditex SA | 7,095 | | 638,211 |
Sweden - 1.5% |
Atlas Copco AB (A Shares) | 29,200 | | 695,161 |
Elekta AB (B Shares) | 11,300 | | 573,344 |
Swedish Match Co. AB | 14,600 | | 593,493 |
TOTAL SWEDEN | | 1,861,998 |
Switzerland - 4.9% |
Compagnie Financiere Richemont SA Series A | 12,644 | | 781,586 |
Dufry AG (a) | 3,960 | | 537,134 |
Nestle SA | 34,244 | | 2,097,919 |
Schindler Holding AG (Reg.) | 4,370 | | 558,559 |
Swatch Group AG (Bearer) | 1,460 | | 673,413 |
Syngenta AG (Switzerland) | 2,290 | | 803,138 |
UBS AG (NY Shares) | 62,300 | | 770,651 |
TOTAL SWITZERLAND | | 6,222,400 |
Taiwan - 0.8% |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 62,900 | | 979,982 |
Thailand - 1.3% |
C.P. ALL PCL (For. Reg.) | 218,400 | | 543,248 |
Common Stocks - continued |
| Shares | | Value |
Thailand - continued |
Central Pattana PCL (For. Reg.) | 357,600 | | $ 584,276 |
Siam Makro PCL (For. Reg.) | 45,600 | | 567,869 |
TOTAL THAILAND | | 1,695,393 |
Turkey - 1.2% |
Coca-Cola Icecek A/S | 38,000 | | 534,206 |
TAV Havalimanlari Holding A/S (a) | 98,000 | | 515,378 |
Turkiye Garanti Bankasi A/S | 147,000 | | 540,478 |
TOTAL TURKEY | | 1,590,062 |
United Kingdom - 15.6% |
Anglo American PLC (United Kingdom) | 23,300 | | 895,536 |
Antofagasta PLC | 28,700 | | 550,145 |
Barclays PLC sponsored ADR (d) | 56,600 | | 805,984 |
BG Group PLC | 48,497 | | 1,141,768 |
BHP Billiton PLC ADR | 32,000 | | 2,059,520 |
British American Tobacco PLC (United Kingdom) | 34,000 | | 1,744,059 |
Burberry Group PLC | 25,200 | | 607,396 |
Diageo PLC sponsored ADR | 9,900 | | 1,001,088 |
Imperial Tobacco Group PLC | 21,281 | | 851,095 |
Johnson Matthey PLC | 15,800 | | 593,425 |
Meggitt PLC | 84,500 | | 560,266 |
Prudential PLC | 66,095 | | 810,154 |
Reckitt Benckiser Group PLC | 14,000 | | 815,088 |
Rolls-Royce Group PLC | 53,300 | | 712,420 |
Royal Dutch Shell PLC Class B | 66,299 | | 2,426,477 |
SABMiller PLC | 20,800 | | 873,890 |
Standard Chartered PLC (United Kingdom) | 37,317 | | 912,173 |
The Weir Group PLC | 18,100 | | 500,897 |
Unilever PLC | 38,000 | | 1,298,315 |
Xstrata PLC | 42,077 | | 804,176 |
TOTAL UNITED KINGDOM | | 19,963,872 |
United States of America - 15.8% |
Allergan, Inc. | 5,500 | | 528,000 |
Altria Group, Inc. | 16,200 | | 521,802 |
American Tower Corp. | 8,200 | | 537,756 |
Apple, Inc. (a) | 880 | | 514,131 |
Caterpillar, Inc. | 4,500 | | 462,465 |
Coach, Inc. | 6,700 | | 490,172 |
Crown Castle International Corp. (a) | 8,600 | | 486,846 |
Cummins, Inc. | 4,220 | | 488,803 |
Deere & Co. | 5,893 | | 485,347 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
EMC Corp. (a) | 18,900 | | $ 533,169 |
Google, Inc. Class A (a) | 820 | | 496,289 |
Halliburton Co. | 14,800 | | 506,456 |
IBM Corp. | 2,600 | | 538,408 |
Joy Global, Inc. | 7,600 | | 537,852 |
JPMorgan Chase & Co. | 12,295 | | 528,439 |
Las Vegas Sands Corp. | 8,740 | | 484,983 |
Lorillard, Inc. | 3,700 | | 500,573 |
MasterCard, Inc. Class A | 1,060 | | 479,406 |
McGraw-Hill Companies, Inc. | 10,000 | | 491,700 |
Mead Johnson Nutrition Co. Class A | 6,200 | | 530,472 |
Moody's Corp. | 10,900 | | 446,355 |
National Oilwell Varco, Inc. | 6,950 | | 526,532 |
NIKE, Inc. Class B | 4,500 | | 503,415 |
Oracle Corp. | 16,600 | | 487,874 |
Perrigo Co. | 4,800 | | 503,520 |
Philip Morris International, Inc. | 10,655 | | 953,729 |
PriceSmart, Inc. | 6,400 | | 528,256 |
QUALCOMM, Inc. | 8,000 | | 510,720 |
Rackspace Hosting, Inc. (a) | 9,017 | | 523,798 |
salesforce.com, Inc. (a) | 3,400 | | 529,482 |
SBA Communications Corp. Class A (a) | 9,800 | | 526,652 |
The Coca-Cola Co. | 6,900 | | 526,608 |
Tiffany & Co., Inc. | 7,125 | | 487,778 |
TJX Companies, Inc. | 12,500 | | 521,375 |
Union Pacific Corp. | 4,700 | | 528,468 |
United Technologies Corp. | 5,772 | | 471,226 |
Visa, Inc. Class A | 4,200 | | 516,516 |
Wells Fargo & Co. | 16,040 | | 536,217 |
Yum! Brands, Inc. | 7,400 | | 538,202 |
TOTAL UNITED STATES OF AMERICA | | 20,309,792 |
TOTAL COMMON STOCKS (Cost $111,521,822) |
124,476,905
|
Preferred Stocks - 1.9% |
| | | |
Convertible Preferred Stocks - 0.4% |
United States of America - 0.4% |
Citigroup, Inc. 7.50% | 5,000 | | 487,350 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - 1.5% |
Germany - 1.0% |
Hugo Boss AG (non-vtg.) | 4,400 | | $ 491,082 |
Volkswagen AG | 4,500 | | 852,461 |
TOTAL GERMANY | | 1,343,543 |
Italy - 0.5% |
Fiat Industrial SpA | 70,467 | | 578,362 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC Class C | 5,649,800 | | 9,170 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | | 1,931,075 |
TOTAL PREFERRED STOCKS (Cost $2,184,601) |
2,418,425
|
Money Market Funds - 3.9% |
| | | |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c)
(Cost $5,028,165) | 5,028,165 | |
5,028,165
|
TOTAL INVESTMENT PORTFOLIO - 103.0% (Cost $118,734,588) | | 131,923,495 |
NET OTHER ASSETS (LIABILITIES) - (3.0)% | | (3,781,022) |
NET ASSETS - 100% | $ 128,142,473 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
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 | $ 283 |
Fidelity Securities Lending Cash Central Fund | 18,838 |
Total | $ 19,121 |
Other Information |
Categorizations in Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 Security 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 | $ 25,016,258 | $ 22,483,042 | $ 2,533,216 | $ - |
Consumer Staples | 27,371,272 | 23,026,757 | 4,344,515 | - |
Energy | 8,825,354 | 6,398,877 | 2,426,477 | - |
Financials | 16,449,866 | 15,003,581 | 1,446,285 | - |
Health Care | 3,678,151 | 3,111,461 | 566,690 | - |
Industrials | 17,535,300 | 13,020,934 | 4,514,366 | - |
Information Technology | 11,458,869 | 9,156,085 | 2,302,784 | - |
Materials | 14,334,567 | 13,531,429 | 803,138 | - |
Telecommunication Services | 2,225,693 | 1,554,105 | 671,588 | - |
Money Market Funds | 5,028,165 | 5,028,165 | - | - |
Total Investments in Securities: | $ 131,923,495 | $ 112,314,436 | $ 19,609,059 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $4,691,045) - See accompanying schedule: Unaffiliated issuers (cost $113,706,423) | $ 126,895,330 | |
Fidelity Central Funds (cost $5,028,165) | 5,028,165 | |
Total Investments (cost $118,734,588) | | $ 131,923,495 |
Foreign currency held at value (cost $1,087,287) | | 1,086,649 |
Receivable for investments sold | | 4,930,299 |
Receivable for fund shares sold | | 299,439 |
Dividends receivable | | 622,276 |
Distributions receivable from Fidelity Central Funds | | 10,383 |
Prepaid expenses | | 123 |
Receivable from investment adviser for expense reductions | | 42,619 |
Other receivables | | 272,427 |
Total assets | | 139,187,710 |
| | |
Liabilities | | |
Payable to custodian bank | $ 57,346 | |
Payable for investments purchased | 4,884,118 | |
Payable for fund shares redeemed | 731,347 | |
Accrued management fee | 100,063 | |
Distribution and service plan fees payable | 52,422 | |
Other affiliated payables | 36,918 | |
Other payables and accrued expenses | 154,858 | |
Collateral on securities loaned, at value | 5,028,165 | |
Total liabilities | | 11,045,237 |
| | |
Net Assets | | $ 128,142,473 |
Net Assets consist of: | | |
Paid in capital | | $ 219,611,855 |
Undistributed net investment income | | 136,472 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (104,651,067) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 13,045,213 |
Net Assets | | $ 128,142,473 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($41,665,451 ÷ 3,722,383 shares) | | $ 11.19 |
| | |
Maximum offering price per share (100/94.25 of $11.19) | | $ 11.87 |
Class T:
Net Asset Value and redemption price per share ($58,326,578 ÷ 5,310,747 shares) | | $ 10.98 |
| | |
Maximum offering price per share (100/96.50 of $10.98) | | $ 11.38 |
Class B:
Net Asset Value and offering price per share ($3,467,930 ÷ 339,701 shares)A | | $ 10.21 |
| | |
Class C:
Net Asset Value and offering price per share ($19,882,084 ÷ 1,954,747 shares)A | | $ 10.17 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($4,800,430 ÷ 403,075 shares) | | $ 11.91 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,252,422 |
Income from Fidelity Central Funds | | 19,121 |
Income before foreign taxes withheld | | 1,271,543 |
Less foreign taxes withheld | | (94,433) |
Total income | | 1,177,110 |
| | |
Expenses | | |
Management fee
Basic fee | $ 441,548 | |
Performance adjustment | 147,398 | |
Transfer agent fees | 185,942 | |
Distribution and service plan fees | 308,646 | |
Accounting and security lending fees | 32,535 | |
Custodian fees and expenses | 69,121 | |
Independent trustees' compensation | 375 | |
Registration fees | 46,084 | |
Audit | 41,362 | |
Legal | 267 | |
Miscellaneous | 603 | |
Total expenses before reductions | 1,273,881 | |
Expense reductions | (237,562) | 1,036,319 |
Net investment income (loss) | | 140,791 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 3,755,546 | |
Foreign currency transactions | (22,659) | |
Total net realized gain (loss) | | 3,732,887 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $66,668) | 8,480,725 | |
Assets and liabilities in foreign currencies | 1,206 | |
Total change in net unrealized appreciation (depreciation) | | 8,481,931 |
Net gain (loss) | | 12,214,818 |
Net increase (decrease) in net assets resulting from operations | | $ 12,355,609 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 140,791 | $ 730,290 |
Net realized gain (loss) | 3,732,887 | 8,411,487 |
Change in net unrealized appreciation (depreciation) | 8,481,931 | (14,294,405) |
Net increase (decrease) in net assets resulting
from operations | 12,355,609 | (5,152,628) |
Distributions to shareholders from net investment income | (721,694) | (760,710) |
Distributions to shareholders from net realized gain | (61,587) | (1,721,042) |
Total distributions | (783,281) | (2,481,752) |
Share transactions - net increase (decrease) | (11,903,188) | (24,900,583) |
Redemption fees | 357 | 3,558 |
Total increase (decrease) in net assets | (330,503) | (32,531,405) |
| | |
Net Assets | | |
Beginning of period | 128,472,976 | 161,004,381 |
End of period (including undistributed net investment income of $136,472 and undistributed net investment income of $717,375, respectively) | $ 128,142,473 | $ 128,472,976 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.21 | $ 10.85 | $ 9.34 | $ 6.39 | $ 18.64 | $ 17.79 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .08 H | .06 | .09 | .11 | .07 |
Net realized and unrealized gain (loss) | 1.05 | (.53) | 1.69 | 2.88 | (8.42) | 3.81 |
Total from investment operations | 1.07 | (.45) | 1.75 | 2.97 | (8.31) | 3.88 |
Distributions from net investment income | (.09) | (.08) | (.08) | (.02) | (.05) | (.12) |
Distributions from net realized gain | (.01) | (.12) | (.16) | - | (3.89) | (2.90) |
Total distributions | (.09) M | (.19) L | (.24) | (.02) | (3.94) | (3.03) K |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 11.19 | $ 10.21 | $ 10.85 | $ 9.34 | $ 6.39 | $ 18.64 |
Total Return B, C, D | 10.60% | (4.25)% | 18.98% | 46.61% | (55.70)% | 24.76% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.80% A | 1.64% | 1.45% | 1.27% | 1.42% | 1.47% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% | 1.27% | 1.42% | 1.47% |
Expenses net of all reductions | 1.42% A | 1.38% | 1.27% | 1.15% | 1.25% | 1.39% |
Net investment income (loss) | .47% A | .74% H | .66% | 1.22% | .95% | .39% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 41,665 | $ 40,364 | $ 49,058 | $ 43,389 | $ 35,517 | $ 113,579 |
Portfolio turnover rate G | 142% A | 254% | 490% | 414% | 394% | 146% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .49%. 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. K Total distributions of $3.03 per share is comprised of distributions from net investment income of $.123 and distributions from net realized gain of $2.903 per share. L Total distributions of $.19 per share is comprised of distributions from net investment income of $.077 and distributions from net realized gain of $.116 per share. M Total distributions of $.09 per share is comprised of distributions from net investment income of $.085 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 T
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.00 | $ 10.63 | $ 9.16 | $ 6.28 | $ 18.38 | $ 17.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | .05 H | .04 | .07 | .08 | .03 |
Net realized and unrealized gain (loss) | 1.03 | (.52) | 1.65 | 2.82 | (8.28) | 3.76 |
Total from investment operations | 1.04 | (.47) | 1.69 | 2.89 | (8.20) | 3.79 |
Distributions from net investment income | (.06) | (.05) | (.06) | (.01) | (.01) | (.07) |
Distributions from net realized gain | (.01) | (.12) | (.16) | - | (3.89) | (2.90) |
Total distributions | (.06) M | (.16) L | (.22) | (.01) | (3.90) | (2.98) K |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.98 | $ 10.00 | $ 10.63 | $ 9.16 | $ 6.28 | $ 18.38 |
Total Return B, C, D | 10.49% | (4.51)% | 18.65% | 46.23% | (55.79)% | 24.47% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.05% A | 1.88% | 1.69% | 1.52% | 1.65% | 1.69% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.69% | 1.52% | 1.65% | 1.69% |
Expenses net of all reductions | 1.67% A | 1.62% | 1.51% | 1.41% | 1.48% | 1.61% |
Net investment income (loss) | .22% A | .49% H | .42% | .96% | .71% | .18% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 58,327 | $ 59,914 | $ 74,056 | $ 78,005 | $ 57,603 | $ 179,990 |
Portfolio turnover rate G | 142% A | 254% | 490% | 414% | 394% | 146% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%. 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. K Total distributions of $2.98 per share is comprised of distributions from net investment income of $0.74 and distributions from net realized gain of $2.903 per share. L Total distributions of $.16 per share is comprised of distributions from net investment income of $0.074 and distributions from net realized gain of $.116 per share. M Total distributions of $.06 per share is comprised of distributions from net investment income of $.056 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
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.26 | $ 9.84 | $ 8.51 | $ 5.86 | $ 17.36 | $ 16.72 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | - H,J | (.01) | .03 | .02 | (.06) |
Net realized and unrealized gain (loss) | .96 | (.48) | 1.53 | 2.63 | (7.75) | 3.57 |
Total from investment operations | .95 | (.48) | 1.52 | 2.66 | (7.73) | 3.51 |
Distributions from net investment income | - | (.01) | (.03) | (.01) | - | - |
Distributions from net realized gain | - | (.09) | (.16) | - | (3.77) | (2.87) |
Total distributions | - | (.10) | (.19) | (.01) | (3.77) | (2.87) K |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.21 | $ 9.26 | $ 9.84 | $ 8.51 | $ 5.86 | $ 17.36 |
Total Return B, C, D | 10.26% | (4.99)% | 18.03% | 45.50% | (56.02)% | 23.85% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.55% A | 2.39% | 2.20% | 2.02% | 2.17% | 2.24% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.20% | 2.02% | 2.17% | 2.24% |
Expenses net of all reductions | 2.17% A | 2.13% | 2.02% | 1.90% | 2.01% | 2.17% |
Net investment income (loss) | (.28)% A | (.01)% H | (.09)% | .47% | .19% | (.38)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,468 | $ 4,241 | $ 8,737 | $ 10,661 | $ 10,356 | $ 40,013 |
Portfolio turnover rate G | 142% A | 254% | 490% | 414% | 394% | 146% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.26)%. 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. K Total distributions of $2.87 per share is comprised of distributions from net realized gain of $2.869 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.23 | $ 9.84 | $ 8.51 | $ 5.87 | $ 17.42 | $ 16.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | - H, J | (.01) | .03 | .02 | (.05) |
Net realized and unrealized gain (loss) | .96 | (.49) | 1.53 | 2.62 | (7.75) | 3.57 |
Total from investment operations | .95 | (.49) | 1.52 | 2.65 | (7.73) | 3.52 |
Distributions from net investment income | (.01) | (.01) | (.04) | (.01) | - | - |
Distributions from net realized gain | (.01) | (.11) | (.16) | - | (3.82) | (2.90) |
Total distributions | (.01) M | (.12) | (.19) L | (.01) | (3.82) | (2.90) K |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.17 | $ 9.23 | $ 9.84 | $ 8.51 | $ 5.87 | $ 17.42 |
Total Return B, C, D | 10.31% | (5.07)% | 18.12% | 45.26% | (55.95)% | 23.85% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.55% A | 2.39% | 2.20% | 2.02% | 2.16% | 2.19% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.20% | 2.02% | 2.16% | 2.19% |
Expenses net of all reductions | 2.17% A | 2.13% | 2.02% | 1.90% | 2.00% | 2.12% |
Net investment income (loss) | (.28)% A | (.01)% H | (.09)% | .47% | .20% | (.33)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 19,882 | $ 19,619 | $ 24,809 | $ 24,575 | $ 20,973 | $ 66,298 |
Portfolio turnover rate G | 142% A | 254% | 490% | 414% | 394% | 146% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.26)%. 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. K Total distributions of $2.90 per share is comprised of distributions from net realized gain of $2.903 per share. L Total distributions of $.19 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.155 per share. M Total distributions of $.01 per share is comprised of distributions from net investment income of $.005 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 - Institutional Class
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.87 | $ 11.54 | $ 9.91 | $ 6.77 | $ 19.49 | $ 18.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .12 G | .10 | .11 | .16 | .13 |
Net realized and unrealized gain (loss) | 1.12 | (.57) | 1.78 | 3.05 | (8.88) | 3.97 |
Total from investment operations | 1.16 | (.45) | 1.88 | 3.16 | (8.72) | 4.10 |
Distributions from net investment income | (.12) | (.11) | (.09) | (.02) | (.11) | (.17) |
Distributions from net realized gain | (.01) | (.12) | (.16) | - | (3.89) | (2.90) |
Total distributions | (.12) L | (.22) K | (.25) | (.02) | (4.00) | (3.07) J |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.91 | $ 10.87 | $ 11.54 | $ 9.91 | $ 6.77 | $ 19.49 |
Total Return B, C | 10.82% | (4.01)% | 19.22% | 46.85% | (55.51)% | 25.16% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | 1.51% A | 1.35% | 1.19% | 1.00% | 1.12% | 1.14% |
Expenses net of fee waivers, if any | 1.20% A | 1.20% | 1.19% | 1.00% | 1.12% | 1.14% |
Expenses net of all reductions | 1.16% A | 1.12% | 1.01% | .89% | .95% | 1.07% |
Net investment income (loss) | .72% A | 1.00% G | .93% | 1.48% | 1.24% | .72% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,800 | $ 4,335 | $ 4,345 | $ 3,292 | $ 3,620 | $ 17,463 |
Portfolio turnover rate F | 142% A | 254% | 490% | 414% | 394% | 146% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .74%. 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 $.01 per share. J Total distributions of $3.07 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $2.903 per share. K Total distributions of $.22 per share is comprised of distributions from net investment income of $.107 and distributions from net realized gain of $.116 per share. L Total distributions of $.12 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.005 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor International Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant 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 are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are 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 each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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 rate 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), equity debt classifications, 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 | $ 15,842,514 |
Gross unrealized depreciation | (3,666,204) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 12,176,310 |
| |
Tax cost | $ 119,747,185 |
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. At October 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
| |
2016 | $ (82,346,110) |
2017 | (23,967,872) |
Total capital loss carryforward | $ (106,313,982) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $88,308,388 and $99,463,980, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .94% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 50,241 | $ 747 |
Class T | .25% | .25% | 143,352 | 1,387 |
Class B | .75% | .25% | 18,975 | 14,286 |
Class C | .75% | .25% | 96,078 | 4,406 |
| | | $ 308,646 | $ 20,826 |
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, 1.00% for Class C, 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
by FDC |
Class A | $ 5,622 |
Class T | 3,558 |
Class B* | 4,265 |
Class C* | 466 |
| $ 13,911 |
* 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 FMR, 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
Average
Net Assets* |
Class A | $ 60,674 | .30 |
Class T | 85,136 | .30 |
Class B | 5,752 | .30 |
Class C | 28,991 | .30 |
Institutional Class | 5,389 | .26 |
| $ 185,942 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $283 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $186 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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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, 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 $18,838. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR 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.
Semiannual Report
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 70,830 |
Class T | 1.70% | 99,385 |
Class B | 2.20% | 6,628 |
Class C | 2.20% | 33,834 |
Institutional Class | 1.20% | 6,489 |
| | $ 217,166 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $20,396 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net investment income | | |
Class A | $ 338,785 | $ 351,944 |
Class T | 327,446 | 323,075 |
Class B | - | 9,663 |
Class C | 10,467 | 29,995 |
Institutional Class | 44,996 | 46,033 |
Total | $ 721,694 | $ 760,710 |
From net realized gain | | |
Class A | $ 19,929 | $ 529,480 |
Class T | 29,236 | 797,756 |
Class B | - | 70,707 |
Class C | 10,466 | 273,307 |
Institutional Class | 1,956 | 49,792 |
Total | $ 61,587 | $ 1,721,042 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares Sold | 285,370 | 721,944 | $ 2,962,114 | $ 7,956,982 |
Reinvestment of distributions | 32,796 | 72,790 | 324,358 | 801,552 |
Shares redeemed | (550,985) | (1,361,813) | (5,713,817) | (14,987,238) |
Net increase (decrease) | (232,819) | (567,079) | $ (2,427,345) | $ (6,228,704) |
Class T | | | | |
Shares sold | 265,785 | 879,812 | $ 2,727,983 | $ 9,150,890 |
Reinvestment of distributions | 35,814 | 101,007 | 347,751 | 1,092,104 |
Shares redeemed | (983,599) | (1,955,605) | (9,894,624) | (20,943,089) |
Net increase (decrease) | (682,000) | (974,786) | $ (6,818,890) | $ (10,700,095) |
Class B | | | | |
Shares sold | 2,923 | 9,370 | $ 27,461 | $ 93,679 |
Reinvestment of distributions | - | 7,318 | - | 73,635 |
Shares redeemed | (121,335) | (446,550) | (1,160,156) | (4,499,761) |
Net increase (decrease) | (118,412) | (429,862) | $ (1,132,695) | $ (4,332,447) |
Class C | | | | |
Shares sold | 86,903 | 194,812 | $ 829,425 | $ 1,945,397 |
Reinvestment of distributions | 2,090 | 27,032 | 18,836 | 271,185 |
Shares redeemed | (258,769) | (619,329) | (2,455,025) | (6,101,194) |
Net increase (decrease) | (169,776) | (397,485) | $ (1,606,764) | $ (3,884,612) |
Institutional Class | | | | |
Shares sold | 66,045 | 167,207 | $ 752,782 | $ 1,942,483 |
Reinvestment of distributions | 3,641 | 6,560 | 38,267 | 76,766 |
Shares redeemed | (65,439) | (151,382) | (708,543) | (1,773,974) |
Net increase (decrease) | 4,247 | 22,385 | $ 82,506 | $ 245,275 |
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.
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.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AICAP-USAN-0612
1.784890.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
International
Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,106.00 | $ 7.59 |
HypotheticalA | | $ 1,000.00 | $ 1,017.65 | $ 7.27 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,104.90 | $ 8.90 |
HypotheticalA | | $ 1,000.00 | $ 1,016.41 | $ 8.52 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,102.60 | $ 11.50 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,103.10 | $ 11.50 |
HypotheticalA | | $ 1,000.00 | $ 1,013.92 | $ 11.02 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,108.20 | $ 6.29 |
HypotheticalA | | $ 1,000.00 | $ 1,018.90 | $ 6.02 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class B (United Kingdom, Oil, Gas & Consumable Fuels) | 1.9 | 2.0 |
Nestle SA (Switzerland, Food Products) | 1.7 | 2.3 |
BHP Billiton PLC ADR (United Kingdom, Metals & Mining) | 1.6 | 1.7 |
British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 1.4 | 1.8 |
Unilever PLC (United Kingdom, Food Products) | 1.0 | 1.2 |
| 7.6 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Staples | 21.5 | 21.5 |
Consumer Discretionary | 19.7 | 22.0 |
Industrials | 13.8 | 9.9 |
Financials | 12.6 | 16.3 |
Materials | 11.2 | 10.9 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United States of America | 16.2 | 15.8 |
United Kingdom | 15.6 | 14.7 |
Japan | 9.2 | 7.7 |
France | 7.9 | 7.9 |
Switzerland | 4.9 | 5.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 99.1% | | | Stocks 97.9% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 0.9% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 2.1% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value |
Australia - 0.9% |
Fortescue Metals Group Ltd. | 95,080 | | $ 558,693 |
Iluka Resources Ltd. | 30,800 | | 545,513 |
TOTAL AUSTRALIA | | 1,104,206 |
Bailiwick of Jersey - 0.5% |
Experian PLC | 39,600 | | 625,072 |
Belgium - 1.2% |
Anheuser-Busch InBev SA NV (d) | 13,480 | | 971,651 |
Umicore SA | 11,111 | | 602,985 |
TOTAL BELGIUM | | 1,574,636 |
Bermuda - 0.8% |
Credicorp Ltd. (NY Shares) | 4,480 | | 586,477 |
Petra Diamonds Ltd. (a) | 193,762 | | 488,411 |
TOTAL BERMUDA | | 1,074,888 |
Brazil - 3.7% |
BR Malls Participacoes SA | 43,300 | | 537,914 |
Brasil Foods SA sponsored ADR (d) | 29,900 | | 551,057 |
Cia.Hering SA | 20,100 | | 498,770 |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 18,500 | | 776,630 |
Iguatemi Empresa de Shopping Centers SA | 22,200 | | 487,756 |
Itau Unibanco Banco Multiplo SA sponsored ADR | 51,050 | | 800,975 |
Multiplan Empreendimentos Imobiliarios SA | 23,900 | | 564,226 |
Souza Cruz SA | 38,000 | | 591,884 |
TOTAL BRAZIL | | 4,809,212 |
British Virgin Islands - 0.4% |
Arcos Dorados Holdings, Inc. | 26,900 | | 480,703 |
Canada - 2.9% |
Barrick Gold Corp. | 19,600 | | 792,929 |
Canadian National Railway Co. | 9,300 | | 793,713 |
First Quantum Minerals Ltd. | 29,600 | | 614,925 |
Potash Corp. of Saskatchewan, Inc. | 17,100 | | 727,107 |
Suncor Energy, Inc. | 25,800 | | 852,295 |
TOTAL CANADA | | 3,780,969 |
Cayman Islands - 1.8% |
Baidu.com, Inc. sponsored ADR (a) | 4,000 | | 530,800 |
Belle International Holdings Ltd. | 317,000 | | 621,853 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Golden Eagle Retail Group Ltd. (H Shares) | 204,000 | | $ 535,067 |
Hengan International Group Co. Ltd. | 56,500 | | 598,232 |
TOTAL CAYMAN ISLANDS | | 2,285,952 |
Chile - 0.4% |
Embotelladora Andina SA Class A | 102,185 | | 463,424 |
Colombia - 0.4% |
Grupo de Inversiones Surameric | 29,195 | | 529,439 |
Curacao - 0.4% |
Schlumberger Ltd. | 6,400 | | 474,496 |
Denmark - 0.8% |
Novo Nordisk A/S Series B sponsored ADR | 6,600 | | 970,332 |
Finland - 0.9% |
Kone Oyj (B Shares) | 9,500 | | 587,933 |
Nokian Tyres PLC | 11,914 | | 565,102 |
TOTAL FINLAND | | 1,153,035 |
France - 7.9% |
Air Liquide SA | 5,200 | | 668,895 |
BNP Paribas SA | 19,704 | | 791,654 |
Bureau Veritas SA | 5,800 | | 516,809 |
Casino Guichard Perrachon SA | 5,871 | | 576,607 |
CFAO SA | 11,900 | | 513,240 |
Christian Dior SA (d) | 4,040 | | 608,887 |
Edenred | 17,900 | | 571,785 |
Essilor International SA | 6,088 | | 536,265 |
L'Oreal SA | 5,200 | | 625,665 |
LVMH Moet Hennessy - Louis Vuitton SA (d) | 5,445 | | 902,093 |
Pernod Ricard SA | 6,200 | | 643,555 |
PPR SA | 4,100 | | 685,775 |
Publicis Groupe SA | 11,800 | | 608,588 |
Remy Cointreau SA | 5,100 | | 568,399 |
Schneider Electric SA | 11,639 | | 715,072 |
Technip SA | 5,500 | | 622,007 |
TOTAL FRANCE | | 10,155,296 |
Germany - 2.8% |
BASF AG (d) | 12,835 | | 1,056,669 |
Bayerische Motoren Werke AG (BMW) | 8,700 | | 827,040 |
Common Stocks - continued |
| Shares | | Value |
Germany - continued |
Henkel AG & Co. KGaA | 11,500 | | $ 703,944 |
SAP AG | 14,225 | | 943,381 |
TOTAL GERMANY | | 3,531,034 |
Hong Kong - 0.6% |
AIA Group Ltd. | 200,400 | | 712,887 |
India - 3.5% |
Asian Paints India Ltd. | 7,689 | | 514,907 |
Bajaj Auto Ltd. | 17,250 | | 532,076 |
HDFC Bank Ltd. | 61,737 | | 636,131 |
Housing Development Finance Corp. Ltd. | 46,095 | | 589,568 |
ITC Ltd. | 128,653 | | 599,721 |
Mahindra & Mahindra Ltd. | 41,377 | | 557,861 |
Smithkline Beecham Consumer Healthcare Ltd. | 10,216 | | 544,446 |
Titan Industries Ltd. | 105,822 | | 468,177 |
TOTAL INDIA | | 4,442,887 |
Indonesia - 4.7% |
PT ACE Hardware Indonesia Tbk | 1,148,000 | | 643,295 |
PT Astra International Tbk | 83,500 | | 645,068 |
PT Bank Central Asia Tbk | 579,500 | | 504,434 |
PT Global Mediacom Tbk | 3,042,500 | | 549,540 |
PT Gudang Garam Tbk | 85,500 | | 550,743 |
PT Jasa Marga Tbk | 914,000 | | 532,060 |
PT Mitra Adiperkasa Tbk | 732,500 | | 553,928 |
PT Modern Internasional Tbk | 1,437,500 | | 414,490 |
PT Semen Gresik (Persero) Tbk | 395,500 | | 522,858 |
PT Tower Bersama Infrastructure Tbk | 1,629,000 | | 540,607 |
PT United Tractors Tbk | 169,000 | | 544,301 |
TOTAL INDONESIA | | 6,001,324 |
Ireland - 0.8% |
Accenture PLC Class A | 7,900 | | 513,105 |
Dragon Oil PLC | 55,000 | | 523,571 |
TOTAL IRELAND | | 1,036,676 |
Israel - 0.8% |
Check Point Software Technologies Ltd. (a) | 9,100 | | 528,983 |
Israel Chemicals Ltd. | 45,300 | | 519,684 |
TOTAL ISRAEL | | 1,048,667 |
Italy - 1.3% |
Prada SpA | 79,300 | | 538,639 |
Common Stocks - continued |
| Shares | | Value |
Italy - continued |
Saipem SpA | 12,675 | | $ 626,198 |
Salvatore Ferragamo Italia SpA | 20,700 | | 506,127 |
TOTAL ITALY | | 1,670,964 |
Japan - 9.2% |
Canon, Inc. sponsored ADR (d) | 19,806 | | 898,400 |
Fanuc Corp. | 4,400 | | 742,109 |
Fast Retailing Co. Ltd. | 2,600 | | 581,053 |
Hitachi Ltd. | 123,000 | | 783,466 |
Japan Tobacco, Inc. | 128 | | 709,124 |
Keyence Corp. | 2,440 | | 575,937 |
Komatsu Ltd. | 25,400 | | 731,058 |
Makita Corp. | 13,300 | | 509,138 |
Mitsubishi Corp. | 33,400 | | 723,889 |
Mitsui & Co. Ltd. | 44,700 | | 698,061 |
Nabtesco Corp. | 25,400 | | 542,265 |
Nikon Corp. | 20,300 | | 601,695 |
Nissan Motor Co. Ltd. | 69,700 | | 724,719 |
Rakuten, Inc. | 561 | | 625,749 |
SMC Corp. | 3,400 | | 567,846 |
SOFTBANK CORP. | 22,500 | | 671,588 |
Sysmex Corp. | 14,100 | | 566,690 |
Unicharm Corp. | 10,600 | | 593,017 |
TOTAL JAPAN | | 11,845,804 |
Korea (South) - 0.7% |
Hyundai Motor Co. | 3,550 | | 843,425 |
Mexico - 1.7% |
Bolsa Mexicana de Valores SA de CV | 248,700 | | 497,087 |
Coca-Cola FEMSA SAB de CV sponsored ADR | 4,400 | | 466,180 |
Grupo Mexico SA de CV Series B | 180,200 | | 555,889 |
Wal-Mart de Mexico SA de CV Series V | 228,800 | | 654,181 |
TOTAL MEXICO | | 2,173,337 |
Netherlands - 0.8% |
ASML Holding NV (Netherlands) | 11,300 | | 575,022 |
LyondellBasell Industries NV Class A | 10,990 | | 459,162 |
TOTAL NETHERLANDS | | 1,034,184 |
Philippines - 1.6% |
International Container Terminal Services, Inc. | 290,500 | | 468,493 |
Metropolitan Bank & Trust Co. | 226,900 | | 491,845 |
Common Stocks - continued |
| Shares | | Value |
Philippines - continued |
SM Investments Corp. | 33,860 | | $ 561,322 |
SM Prime Holdings, Inc. | 1,419,300 | | 562,132 |
TOTAL PHILIPPINES | | 2,083,792 |
Portugal - 0.4% |
Jeronimo Martins SGPS SA | 28,600 | | 535,729 |
Russia - 1.9% |
Magnit OJSC GDR (Reg. S) | 19,795 | | 579,598 |
NOVATEK OAO GDR (Reg. S) | 4,700 | | 597,370 |
Sberbank (Savings Bank of the Russian Federation) | 218,900 | | 700,799 |
TNK-BP Holding (a) | 172,600 | | 528,184 |
TOTAL RUSSIA | | 2,405,951 |
South Africa - 1.8% |
JSE Ltd. | 47,000 | | 496,709 |
Mr Price Group Ltd. | 39,300 | | 531,545 |
Naspers Ltd. Class N | 12,500 | | 752,845 |
Shoprite Holdings Ltd. | 33,900 | | 585,775 |
TOTAL SOUTH AFRICA | | 2,366,874 |
Spain - 0.5% |
Inditex SA | 7,095 | | 638,211 |
Sweden - 1.5% |
Atlas Copco AB (A Shares) | 29,200 | | 695,161 |
Elekta AB (B Shares) | 11,300 | | 573,344 |
Swedish Match Co. AB | 14,600 | | 593,493 |
TOTAL SWEDEN | | 1,861,998 |
Switzerland - 4.9% |
Compagnie Financiere Richemont SA Series A | 12,644 | | 781,586 |
Dufry AG (a) | 3,960 | | 537,134 |
Nestle SA | 34,244 | | 2,097,919 |
Schindler Holding AG (Reg.) | 4,370 | | 558,559 |
Swatch Group AG (Bearer) | 1,460 | | 673,413 |
Syngenta AG (Switzerland) | 2,290 | | 803,138 |
UBS AG (NY Shares) | 62,300 | | 770,651 |
TOTAL SWITZERLAND | | 6,222,400 |
Taiwan - 0.8% |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 62,900 | | 979,982 |
Thailand - 1.3% |
C.P. ALL PCL (For. Reg.) | 218,400 | | 543,248 |
Common Stocks - continued |
| Shares | | Value |
Thailand - continued |
Central Pattana PCL (For. Reg.) | 357,600 | | $ 584,276 |
Siam Makro PCL (For. Reg.) | 45,600 | | 567,869 |
TOTAL THAILAND | | 1,695,393 |
Turkey - 1.2% |
Coca-Cola Icecek A/S | 38,000 | | 534,206 |
TAV Havalimanlari Holding A/S (a) | 98,000 | | 515,378 |
Turkiye Garanti Bankasi A/S | 147,000 | | 540,478 |
TOTAL TURKEY | | 1,590,062 |
United Kingdom - 15.6% |
Anglo American PLC (United Kingdom) | 23,300 | | 895,536 |
Antofagasta PLC | 28,700 | | 550,145 |
Barclays PLC sponsored ADR (d) | 56,600 | | 805,984 |
BG Group PLC | 48,497 | | 1,141,768 |
BHP Billiton PLC ADR | 32,000 | | 2,059,520 |
British American Tobacco PLC (United Kingdom) | 34,000 | | 1,744,059 |
Burberry Group PLC | 25,200 | | 607,396 |
Diageo PLC sponsored ADR | 9,900 | | 1,001,088 |
Imperial Tobacco Group PLC | 21,281 | | 851,095 |
Johnson Matthey PLC | 15,800 | | 593,425 |
Meggitt PLC | 84,500 | | 560,266 |
Prudential PLC | 66,095 | | 810,154 |
Reckitt Benckiser Group PLC | 14,000 | | 815,088 |
Rolls-Royce Group PLC | 53,300 | | 712,420 |
Royal Dutch Shell PLC Class B | 66,299 | | 2,426,477 |
SABMiller PLC | 20,800 | | 873,890 |
Standard Chartered PLC (United Kingdom) | 37,317 | | 912,173 |
The Weir Group PLC | 18,100 | | 500,897 |
Unilever PLC | 38,000 | | 1,298,315 |
Xstrata PLC | 42,077 | | 804,176 |
TOTAL UNITED KINGDOM | | 19,963,872 |
United States of America - 15.8% |
Allergan, Inc. | 5,500 | | 528,000 |
Altria Group, Inc. | 16,200 | | 521,802 |
American Tower Corp. | 8,200 | | 537,756 |
Apple, Inc. (a) | 880 | | 514,131 |
Caterpillar, Inc. | 4,500 | | 462,465 |
Coach, Inc. | 6,700 | | 490,172 |
Crown Castle International Corp. (a) | 8,600 | | 486,846 |
Cummins, Inc. | 4,220 | | 488,803 |
Deere & Co. | 5,893 | | 485,347 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
EMC Corp. (a) | 18,900 | | $ 533,169 |
Google, Inc. Class A (a) | 820 | | 496,289 |
Halliburton Co. | 14,800 | | 506,456 |
IBM Corp. | 2,600 | | 538,408 |
Joy Global, Inc. | 7,600 | | 537,852 |
JPMorgan Chase & Co. | 12,295 | | 528,439 |
Las Vegas Sands Corp. | 8,740 | | 484,983 |
Lorillard, Inc. | 3,700 | | 500,573 |
MasterCard, Inc. Class A | 1,060 | | 479,406 |
McGraw-Hill Companies, Inc. | 10,000 | | 491,700 |
Mead Johnson Nutrition Co. Class A | 6,200 | | 530,472 |
Moody's Corp. | 10,900 | | 446,355 |
National Oilwell Varco, Inc. | 6,950 | | 526,532 |
NIKE, Inc. Class B | 4,500 | | 503,415 |
Oracle Corp. | 16,600 | | 487,874 |
Perrigo Co. | 4,800 | | 503,520 |
Philip Morris International, Inc. | 10,655 | | 953,729 |
PriceSmart, Inc. | 6,400 | | 528,256 |
QUALCOMM, Inc. | 8,000 | | 510,720 |
Rackspace Hosting, Inc. (a) | 9,017 | | 523,798 |
salesforce.com, Inc. (a) | 3,400 | | 529,482 |
SBA Communications Corp. Class A (a) | 9,800 | | 526,652 |
The Coca-Cola Co. | 6,900 | | 526,608 |
Tiffany & Co., Inc. | 7,125 | | 487,778 |
TJX Companies, Inc. | 12,500 | | 521,375 |
Union Pacific Corp. | 4,700 | | 528,468 |
United Technologies Corp. | 5,772 | | 471,226 |
Visa, Inc. Class A | 4,200 | | 516,516 |
Wells Fargo & Co. | 16,040 | | 536,217 |
Yum! Brands, Inc. | 7,400 | | 538,202 |
TOTAL UNITED STATES OF AMERICA | | 20,309,792 |
TOTAL COMMON STOCKS (Cost $111,521,822) |
124,476,905
|
Preferred Stocks - 1.9% |
| | | |
Convertible Preferred Stocks - 0.4% |
United States of America - 0.4% |
Citigroup, Inc. 7.50% | 5,000 | | 487,350 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - 1.5% |
Germany - 1.0% |
Hugo Boss AG (non-vtg.) | 4,400 | | $ 491,082 |
Volkswagen AG | 4,500 | | 852,461 |
TOTAL GERMANY | | 1,343,543 |
Italy - 0.5% |
Fiat Industrial SpA | 70,467 | | 578,362 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC Class C | 5,649,800 | | 9,170 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | | 1,931,075 |
TOTAL PREFERRED STOCKS (Cost $2,184,601) |
2,418,425
|
Money Market Funds - 3.9% |
| | | |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c)
(Cost $5,028,165) | 5,028,165 | |
5,028,165
|
TOTAL INVESTMENT PORTFOLIO - 103.0% (Cost $118,734,588) | | 131,923,495 |
NET OTHER ASSETS (LIABILITIES) - (3.0)% | | (3,781,022) |
NET ASSETS - 100% | $ 128,142,473 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
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 | $ 283 |
Fidelity Securities Lending Cash Central Fund | 18,838 |
Total | $ 19,121 |
Other Information |
Categorizations in Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 Security 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 | $ 25,016,258 | $ 22,483,042 | $ 2,533,216 | $ - |
Consumer Staples | 27,371,272 | 23,026,757 | 4,344,515 | - |
Energy | 8,825,354 | 6,398,877 | 2,426,477 | - |
Financials | 16,449,866 | 15,003,581 | 1,446,285 | - |
Health Care | 3,678,151 | 3,111,461 | 566,690 | - |
Industrials | 17,535,300 | 13,020,934 | 4,514,366 | - |
Information Technology | 11,458,869 | 9,156,085 | 2,302,784 | - |
Materials | 14,334,567 | 13,531,429 | 803,138 | - |
Telecommunication Services | 2,225,693 | 1,554,105 | 671,588 | - |
Money Market Funds | 5,028,165 | 5,028,165 | - | - |
Total Investments in Securities: | $ 131,923,495 | $ 112,314,436 | $ 19,609,059 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $4,691,045) - See accompanying schedule: Unaffiliated issuers (cost $113,706,423) | $ 126,895,330 | |
Fidelity Central Funds (cost $5,028,165) | 5,028,165 | |
Total Investments (cost $118,734,588) | | $ 131,923,495 |
Foreign currency held at value (cost $1,087,287) | | 1,086,649 |
Receivable for investments sold | | 4,930,299 |
Receivable for fund shares sold | | 299,439 |
Dividends receivable | | 622,276 |
Distributions receivable from Fidelity Central Funds | | 10,383 |
Prepaid expenses | | 123 |
Receivable from investment adviser for expense reductions | | 42,619 |
Other receivables | | 272,427 |
Total assets | | 139,187,710 |
| | |
Liabilities | | |
Payable to custodian bank | $ 57,346 | |
Payable for investments purchased | 4,884,118 | |
Payable for fund shares redeemed | 731,347 | |
Accrued management fee | 100,063 | |
Distribution and service plan fees payable | 52,422 | |
Other affiliated payables | 36,918 | |
Other payables and accrued expenses | 154,858 | |
Collateral on securities loaned, at value | 5,028,165 | |
Total liabilities | | 11,045,237 |
| | |
Net Assets | | $ 128,142,473 |
Net Assets consist of: | | |
Paid in capital | | $ 219,611,855 |
Undistributed net investment income | | 136,472 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (104,651,067) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 13,045,213 |
Net Assets | | $ 128,142,473 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($41,665,451 ÷ 3,722,383 shares) | | $ 11.19 |
| | |
Maximum offering price per share (100/94.25 of $11.19) | | $ 11.87 |
Class T:
Net Asset Value and redemption price per share ($58,326,578 ÷ 5,310,747 shares) | | $ 10.98 |
| | |
Maximum offering price per share (100/96.50 of $10.98) | | $ 11.38 |
Class B:
Net Asset Value and offering price per share ($3,467,930 ÷ 339,701 shares)A | | $ 10.21 |
| | |
Class C:
Net Asset Value and offering price per share ($19,882,084 ÷ 1,954,747 shares)A | | $ 10.17 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($4,800,430 ÷ 403,075 shares) | | $ 11.91 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,252,422 |
Income from Fidelity Central Funds | | 19,121 |
Income before foreign taxes withheld | | 1,271,543 |
Less foreign taxes withheld | | (94,433) |
Total income | | 1,177,110 |
| | |
Expenses | | |
Management fee
Basic fee | $ 441,548 | |
Performance adjustment | 147,398 | |
Transfer agent fees | 185,942 | |
Distribution and service plan fees | 308,646 | |
Accounting and security lending fees | 32,535 | |
Custodian fees and expenses | 69,121 | |
Independent trustees' compensation | 375 | |
Registration fees | 46,084 | |
Audit | 41,362 | |
Legal | 267 | |
Miscellaneous | 603 | |
Total expenses before reductions | 1,273,881 | |
Expense reductions | (237,562) | 1,036,319 |
Net investment income (loss) | | 140,791 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 3,755,546 | |
Foreign currency transactions | (22,659) | |
Total net realized gain (loss) | | 3,732,887 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $66,668) | 8,480,725 | |
Assets and liabilities in foreign currencies | 1,206 | |
Total change in net unrealized appreciation (depreciation) | | 8,481,931 |
Net gain (loss) | | 12,214,818 |
Net increase (decrease) in net assets resulting from operations | | $ 12,355,609 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 140,791 | $ 730,290 |
Net realized gain (loss) | 3,732,887 | 8,411,487 |
Change in net unrealized appreciation (depreciation) | 8,481,931 | (14,294,405) |
Net increase (decrease) in net assets resulting
from operations | 12,355,609 | (5,152,628) |
Distributions to shareholders from net investment income | (721,694) | (760,710) |
Distributions to shareholders from net realized gain | (61,587) | (1,721,042) |
Total distributions | (783,281) | (2,481,752) |
Share transactions - net increase (decrease) | (11,903,188) | (24,900,583) |
Redemption fees | 357 | 3,558 |
Total increase (decrease) in net assets | (330,503) | (32,531,405) |
| | |
Net Assets | | |
Beginning of period | 128,472,976 | 161,004,381 |
End of period (including undistributed net investment income of $136,472 and undistributed net investment income of $717,375, respectively) | $ 128,142,473 | $ 128,472,976 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.21 | $ 10.85 | $ 9.34 | $ 6.39 | $ 18.64 | $ 17.79 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .08 H | .06 | .09 | .11 | .07 |
Net realized and unrealized gain (loss) | 1.05 | (.53) | 1.69 | 2.88 | (8.42) | 3.81 |
Total from investment operations | 1.07 | (.45) | 1.75 | 2.97 | (8.31) | 3.88 |
Distributions from net investment income | (.09) | (.08) | (.08) | (.02) | (.05) | (.12) |
Distributions from net realized gain | (.01) | (.12) | (.16) | - | (3.89) | (2.90) |
Total distributions | (.09) M | (.19) L | (.24) | (.02) | (3.94) | (3.03) K |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 11.19 | $ 10.21 | $ 10.85 | $ 9.34 | $ 6.39 | $ 18.64 |
Total Return B, C, D | 10.60% | (4.25)% | 18.98% | 46.61% | (55.70)% | 24.76% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.80% A | 1.64% | 1.45% | 1.27% | 1.42% | 1.47% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% | 1.27% | 1.42% | 1.47% |
Expenses net of all reductions | 1.42% A | 1.38% | 1.27% | 1.15% | 1.25% | 1.39% |
Net investment income (loss) | .47% A | .74% H | .66% | 1.22% | .95% | .39% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 41,665 | $ 40,364 | $ 49,058 | $ 43,389 | $ 35,517 | $ 113,579 |
Portfolio turnover rate G | 142% A | 254% | 490% | 414% | 394% | 146% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .49%. 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. K Total distributions of $3.03 per share is comprised of distributions from net investment income of $.123 and distributions from net realized gain of $2.903 per share. L Total distributions of $.19 per share is comprised of distributions from net investment income of $.077 and distributions from net realized gain of $.116 per share. M Total distributions of $.09 per share is comprised of distributions from net investment income of $.085 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 T
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.00 | $ 10.63 | $ 9.16 | $ 6.28 | $ 18.38 | $ 17.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | .05 H | .04 | .07 | .08 | .03 |
Net realized and unrealized gain (loss) | 1.03 | (.52) | 1.65 | 2.82 | (8.28) | 3.76 |
Total from investment operations | 1.04 | (.47) | 1.69 | 2.89 | (8.20) | 3.79 |
Distributions from net investment income | (.06) | (.05) | (.06) | (.01) | (.01) | (.07) |
Distributions from net realized gain | (.01) | (.12) | (.16) | - | (3.89) | (2.90) |
Total distributions | (.06) M | (.16) L | (.22) | (.01) | (3.90) | (2.98) K |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.98 | $ 10.00 | $ 10.63 | $ 9.16 | $ 6.28 | $ 18.38 |
Total Return B, C, D | 10.49% | (4.51)% | 18.65% | 46.23% | (55.79)% | 24.47% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.05% A | 1.88% | 1.69% | 1.52% | 1.65% | 1.69% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.69% | 1.52% | 1.65% | 1.69% |
Expenses net of all reductions | 1.67% A | 1.62% | 1.51% | 1.41% | 1.48% | 1.61% |
Net investment income (loss) | .22% A | .49% H | .42% | .96% | .71% | .18% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 58,327 | $ 59,914 | $ 74,056 | $ 78,005 | $ 57,603 | $ 179,990 |
Portfolio turnover rate G | 142% A | 254% | 490% | 414% | 394% | 146% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%. 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. K Total distributions of $2.98 per share is comprised of distributions from net investment income of $0.74 and distributions from net realized gain of $2.903 per share. L Total distributions of $.16 per share is comprised of distributions from net investment income of $0.074 and distributions from net realized gain of $.116 per share. M Total distributions of $.06 per share is comprised of distributions from net investment income of $.056 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
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.26 | $ 9.84 | $ 8.51 | $ 5.86 | $ 17.36 | $ 16.72 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | - H,J | (.01) | .03 | .02 | (.06) |
Net realized and unrealized gain (loss) | .96 | (.48) | 1.53 | 2.63 | (7.75) | 3.57 |
Total from investment operations | .95 | (.48) | 1.52 | 2.66 | (7.73) | 3.51 |
Distributions from net investment income | - | (.01) | (.03) | (.01) | - | - |
Distributions from net realized gain | - | (.09) | (.16) | - | (3.77) | (2.87) |
Total distributions | - | (.10) | (.19) | (.01) | (3.77) | (2.87) K |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.21 | $ 9.26 | $ 9.84 | $ 8.51 | $ 5.86 | $ 17.36 |
Total Return B, C, D | 10.26% | (4.99)% | 18.03% | 45.50% | (56.02)% | 23.85% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.55% A | 2.39% | 2.20% | 2.02% | 2.17% | 2.24% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.20% | 2.02% | 2.17% | 2.24% |
Expenses net of all reductions | 2.17% A | 2.13% | 2.02% | 1.90% | 2.01% | 2.17% |
Net investment income (loss) | (.28)% A | (.01)% H | (.09)% | .47% | .19% | (.38)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,468 | $ 4,241 | $ 8,737 | $ 10,661 | $ 10,356 | $ 40,013 |
Portfolio turnover rate G | 142% A | 254% | 490% | 414% | 394% | 146% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.26)%. 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. K Total distributions of $2.87 per share is comprised of distributions from net realized gain of $2.869 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.23 | $ 9.84 | $ 8.51 | $ 5.87 | $ 17.42 | $ 16.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | - H, J | (.01) | .03 | .02 | (.05) |
Net realized and unrealized gain (loss) | .96 | (.49) | 1.53 | 2.62 | (7.75) | 3.57 |
Total from investment operations | .95 | (.49) | 1.52 | 2.65 | (7.73) | 3.52 |
Distributions from net investment income | (.01) | (.01) | (.04) | (.01) | - | - |
Distributions from net realized gain | (.01) | (.11) | (.16) | - | (3.82) | (2.90) |
Total distributions | (.01) M | (.12) | (.19) L | (.01) | (3.82) | (2.90) K |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.17 | $ 9.23 | $ 9.84 | $ 8.51 | $ 5.87 | $ 17.42 |
Total Return B, C, D | 10.31% | (5.07)% | 18.12% | 45.26% | (55.95)% | 23.85% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.55% A | 2.39% | 2.20% | 2.02% | 2.16% | 2.19% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.20% | 2.02% | 2.16% | 2.19% |
Expenses net of all reductions | 2.17% A | 2.13% | 2.02% | 1.90% | 2.00% | 2.12% |
Net investment income (loss) | (.28)% A | (.01)% H | (.09)% | .47% | .20% | (.33)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 19,882 | $ 19,619 | $ 24,809 | $ 24,575 | $ 20,973 | $ 66,298 |
Portfolio turnover rate G | 142% A | 254% | 490% | 414% | 394% | 146% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.26)%. 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. K Total distributions of $2.90 per share is comprised of distributions from net realized gain of $2.903 per share. L Total distributions of $.19 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.155 per share. M Total distributions of $.01 per share is comprised of distributions from net investment income of $.005 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 - Institutional Class
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.87 | $ 11.54 | $ 9.91 | $ 6.77 | $ 19.49 | $ 18.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .12 G | .10 | .11 | .16 | .13 |
Net realized and unrealized gain (loss) | 1.12 | (.57) | 1.78 | 3.05 | (8.88) | 3.97 |
Total from investment operations | 1.16 | (.45) | 1.88 | 3.16 | (8.72) | 4.10 |
Distributions from net investment income | (.12) | (.11) | (.09) | (.02) | (.11) | (.17) |
Distributions from net realized gain | (.01) | (.12) | (.16) | - | (3.89) | (2.90) |
Total distributions | (.12) L | (.22) K | (.25) | (.02) | (4.00) | (3.07) J |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.91 | $ 10.87 | $ 11.54 | $ 9.91 | $ 6.77 | $ 19.49 |
Total Return B, C | 10.82% | (4.01)% | 19.22% | 46.85% | (55.51)% | 25.16% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | 1.51% A | 1.35% | 1.19% | 1.00% | 1.12% | 1.14% |
Expenses net of fee waivers, if any | 1.20% A | 1.20% | 1.19% | 1.00% | 1.12% | 1.14% |
Expenses net of all reductions | 1.16% A | 1.12% | 1.01% | .89% | .95% | 1.07% |
Net investment income (loss) | .72% A | 1.00% G | .93% | 1.48% | 1.24% | .72% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,800 | $ 4,335 | $ 4,345 | $ 3,292 | $ 3,620 | $ 17,463 |
Portfolio turnover rate F | 142% A | 254% | 490% | 414% | 394% | 146% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .74%. 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 $.01 per share. J Total distributions of $3.07 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $2.903 per share. K Total distributions of $.22 per share is comprised of distributions from net investment income of $.107 and distributions from net realized gain of $.116 per share. L Total distributions of $.12 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.005 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor International Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant 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 are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are 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 each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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 rate 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), equity debt classifications, 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 | $ 15,842,514 |
Gross unrealized depreciation | (3,666,204) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 12,176,310 |
| |
Tax cost | $ 119,747,185 |
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. At October 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
| |
2016 | $ (82,346,110) |
2017 | (23,967,872) |
Total capital loss carryforward | $ (106,313,982) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $88,308,388 and $99,463,980, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .94% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 50,241 | $ 747 |
Class T | .25% | .25% | 143,352 | 1,387 |
Class B | .75% | .25% | 18,975 | 14,286 |
Class C | .75% | .25% | 96,078 | 4,406 |
| | | $ 308,646 | $ 20,826 |
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, 1.00% for Class C, 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
by FDC |
Class A | $ 5,622 |
Class T | 3,558 |
Class B* | 4,265 |
Class C* | 466 |
| $ 13,911 |
* 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 FMR, 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
Average
Net Assets* |
Class A | $ 60,674 | .30 |
Class T | 85,136 | .30 |
Class B | 5,752 | .30 |
Class C | 28,991 | .30 |
Institutional Class | 5,389 | .26 |
| $ 185,942 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $283 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $186 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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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, 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 $18,838. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR 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.
Semiannual Report
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 70,830 |
Class T | 1.70% | 99,385 |
Class B | 2.20% | 6,628 |
Class C | 2.20% | 33,834 |
Institutional Class | 1.20% | 6,489 |
| | $ 217,166 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $20,396 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net investment income | | |
Class A | $ 338,785 | $ 351,944 |
Class T | 327,446 | 323,075 |
Class B | - | 9,663 |
Class C | 10,467 | 29,995 |
Institutional Class | 44,996 | 46,033 |
Total | $ 721,694 | $ 760,710 |
From net realized gain | | |
Class A | $ 19,929 | $ 529,480 |
Class T | 29,236 | 797,756 |
Class B | - | 70,707 |
Class C | 10,466 | 273,307 |
Institutional Class | 1,956 | 49,792 |
Total | $ 61,587 | $ 1,721,042 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares Sold | 285,370 | 721,944 | $ 2,962,114 | $ 7,956,982 |
Reinvestment of distributions | 32,796 | 72,790 | 324,358 | 801,552 |
Shares redeemed | (550,985) | (1,361,813) | (5,713,817) | (14,987,238) |
Net increase (decrease) | (232,819) | (567,079) | $ (2,427,345) | $ (6,228,704) |
Class T | | | | |
Shares sold | 265,785 | 879,812 | $ 2,727,983 | $ 9,150,890 |
Reinvestment of distributions | 35,814 | 101,007 | 347,751 | 1,092,104 |
Shares redeemed | (983,599) | (1,955,605) | (9,894,624) | (20,943,089) |
Net increase (decrease) | (682,000) | (974,786) | $ (6,818,890) | $ (10,700,095) |
Class B | | | | |
Shares sold | 2,923 | 9,370 | $ 27,461 | $ 93,679 |
Reinvestment of distributions | - | 7,318 | - | 73,635 |
Shares redeemed | (121,335) | (446,550) | (1,160,156) | (4,499,761) |
Net increase (decrease) | (118,412) | (429,862) | $ (1,132,695) | $ (4,332,447) |
Class C | | | | |
Shares sold | 86,903 | 194,812 | $ 829,425 | $ 1,945,397 |
Reinvestment of distributions | 2,090 | 27,032 | 18,836 | 271,185 |
Shares redeemed | (258,769) | (619,329) | (2,455,025) | (6,101,194) |
Net increase (decrease) | (169,776) | (397,485) | $ (1,606,764) | $ (3,884,612) |
Institutional Class | | | | |
Shares sold | 66,045 | 167,207 | $ 752,782 | $ 1,942,483 |
Reinvestment of distributions | 3,641 | 6,560 | 38,267 | 76,766 |
Shares redeemed | (65,439) | (151,382) | (708,543) | (1,773,974) |
Net increase (decrease) | 4,247 | 22,385 | $ 82,506 | $ 245,275 |
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.
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.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AICAPI-USAN-0612
1.784891.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Overseas
Fund - Class A, Class T, Class B and Class C
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.26% | | | |
Actual | | $ 1,000.00 | $ 1,060.80 | $ 6.46 |
HypotheticalA | | $ 1,000.00 | $ 1,018.60 | $ 6.32 |
Class T | 1.44% | | | |
Actual | | $ 1,000.00 | $ 1,060.50 | $ 7.38 |
HypotheticalA | | $ 1,000.00 | $ 1,017.70 | $ 7.22 |
Class B | 2.01% | | | |
Actual | | $ 1,000.00 | $ 1,057.50 | $ 10.28 |
HypotheticalA | | $ 1,000.00 | $ 1,014.87 | $ 10.07 |
Class C | 2.01% | | | |
Actual | | $ 1,000.00 | $ 1,057.40 | $ 10.28 |
HypotheticalA | | $ 1,000.00 | $ 1,014.87 | $ 10.07 |
Institutional Class | .91% | | | |
Actual | | $ 1,000.00 | $ 1,063.40 | $ 4.67 |
HypotheticalA | | $ 1,000.00 | $ 1,020.34 | $ 4.57 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.7 | 2.1 |
Rakuten, Inc. (Japan, Internet & Catalog Retail) | 2.4 | 2.0 |
Volkswagen AG (Germany, Automobiles) | 2.2 | 2.0 |
LVMH Moet Hennessy - Louis Vuitton SA (France, Textiles, Apparel & Luxury Goods) | 2.1 | 1.8 |
Compagnie Financiere Richemont SA Series A (Switzerland, Textiles, Apparel & Luxury Goods) | 1.9 | 1.5 |
| 11.3 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 25.4 | 23.5 |
Financials | 15.1 | 17.6 |
Information Technology | 12.3 | 10.9 |
Consumer Staples | 11.6 | 6.5 |
Materials | 10.8 | 12.1 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 19.9 | 18.5 |
Japan | 13.8 | 15.6 |
France | 12.1 | 12.6 |
Germany | 11.4 | 11.6 |
Switzerland | 8.7 | 7.6 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 98.0% | | | Stocks 98.1% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 2.0% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 1.9% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% |
| Shares | | Value (000s) |
Australia - 2.6% |
BHP Billiton Ltd. | 211,768 | | $ 7,857 |
Fortescue Metals Group Ltd. | 208,017 | | 1,222 |
Macquarie Group Ltd. | 52,488 | | 1,597 |
Newcrest Mining Ltd. | 108,586 | | 2,975 |
Westfield Group unit | 344,639 | | 3,318 |
TOTAL AUSTRALIA | | 16,969 |
Bailiwick of Jersey - 0.6% |
Wolseley PLC | 19,500 | | 742 |
WPP PLC | 247,196 | | 3,348 |
TOTAL BAILIWICK OF JERSEY | | 4,090 |
Belgium - 0.3% |
Ageas (d) | 410,900 | | 748 |
Hamon & Compagnie International SA | 60,300 | | 1,289 |
TOTAL BELGIUM | | 2,037 |
Bermuda - 2.1% |
Clear Media Ltd. | 1,278,000 | | 779 |
Li & Fung Ltd. | 2,148,000 | | 4,596 |
Oriental Watch Holdings Ltd. | 7,164,000 | | 3,001 |
Petra Diamonds Ltd. (a) | 379,200 | | 956 |
Signet Jewelers Ltd. | 82,600 | | 4,028 |
TOTAL BERMUDA | | 13,360 |
Brazil - 0.4% |
Drogasil SA | 47,700 | | 514 |
Souza Cruz Industria e Comercio | 149,900 | | 2,335 |
TOTAL BRAZIL | | 2,849 |
British Virgin Islands - 0.9% |
Gem Diamonds Ltd. (a) | 261,700 | | 1,100 |
Mail.ru Group Ltd.: | | | |
GDR (a)(e) | 4,200 | | 182 |
GDR (Reg. S) (a) | 103,500 | | 4,476 |
TOTAL BRITISH VIRGIN ISLANDS | | 5,758 |
Canada - 0.7% |
Barrick Gold Corp. | 18,200 | | 736 |
Potash Corp. of Saskatchewan, Inc. | 72,800 | | 3,096 |
Yamana Gold, Inc. | 60,500 | | 888 |
TOTAL CANADA | | 4,720 |
Common Stocks - continued |
| Shares | | Value (000s) |
Cayman Islands - 5.4% |
Baidu.com, Inc. sponsored ADR (a) | 46,500 | | $ 6,171 |
Biostime International Holdings Ltd. | 59,500 | | 171 |
E-Commerce China Dangdang, Inc. ADR (a)(d) | 38,000 | | 304 |
Hengdeli Holdings Ltd. | 25,890,000 | | 10,378 |
Home Inns & Hotels Management, Inc. sponsored ADR (a)(d) | 32,200 | | 765 |
Natural Beauty Bio-Technology Ltd. | 6,200,000 | | 1,199 |
Noah Holdings Ltd. sponsored ADR | 129,100 | | 920 |
Perfect World Co. Ltd. sponsored ADR Class B | 203,400 | | 2,484 |
Renren, Inc. ADR (d) | 15,000 | | 92 |
Shenguan Holdings Group Ltd. | 2,022,000 | | 1,095 |
SINA Corp. (a) | 8,800 | | 515 |
Tencent Holdings Ltd. | 309,800 | | 9,735 |
YouKu.com, Inc. ADR (a)(d) | 38,800 | | 933 |
TOTAL CAYMAN ISLANDS | | 34,762 |
Denmark - 2.9% |
Carlsberg A/S Series B | 10,600 | | 914 |
Danske Bank A/S (a) | 51,111 | | 830 |
Novo Nordisk A/S: | | | |
Series B | 19,863 | | 2,929 |
Series B sponsored ADR | 95,400 | | 14,026 |
TOTAL DENMARK | | 18,699 |
France - 12.1% |
Alstom SA | 156,484 | | 5,589 |
Atos Origin SA | 37,421 | | 2,410 |
AXA SA | 33,258 | | 471 |
AXA SA sponsored ADR | 62,300 | | 883 |
Beneteau SA | 86,400 | | 936 |
BNP Paribas SA | 60,122 | | 2,416 |
Club Mediterranee SA (a) | 53,000 | | 1,016 |
Compagnie Generale de Geophysique SA (a) | 96,000 | | 2,753 |
Danone SA | 128,222 | | 9,022 |
Gameloft (a) | 239,900 | | 1,493 |
GDF Suez (d) | 81,500 | | 1,876 |
Iliad SA | 18,000 | | 2,317 |
Ingenico SA | 55,137 | | 2,901 |
Ipsos SA | 57,360 | | 1,862 |
Lafarge SA (Bearer) | 34,900 | | 1,361 |
LVMH Moet Hennessy - Louis Vuitton SA (d) | 81,400 | | 13,486 |
Pernod Ricard SA | 72,700 | | 7,546 |
PPR SA (d) | 7,200 | | 1,204 |
Common Stocks - continued |
| Shares | | Value (000s) |
France - continued |
Safran SA | 52,800 | | $ 1,957 |
Sanofi SA | 50,634 | | 3,868 |
Sanofi SA sponsored ADR | 206,200 | | 7,873 |
Societe Generale Series A | 28,913 | | 684 |
Total SA | 94,200 | | 4,522 |
TOTAL FRANCE | | 78,446 |
Germany - 9.2% |
adidas AG | 90,200 | | 7,523 |
Allianz AG | 32,906 | | 3,667 |
Bayer AG (d) | 55,340 | | 3,898 |
Bayerische Motoren Werke AG (BMW) | 14,586 | | 1,387 |
Beiersdorf AG (d) | 94,400 | | 6,623 |
Commerzbank AG (a) | 235,000 | | 509 |
Deutsche Bank AG | 57,900 | | 2,514 |
Deutsche Boerse AG | 58,469 | | 3,671 |
Deutsche Post AG | 118,681 | | 2,215 |
Hugo Boss AG (d) | 35,400 | | 3,946 |
K&S AG | 23,400 | | 1,170 |
Linde AG (d) | 13,429 | | 2,299 |
Munich Re Group (d) | 11,355 | | 1,648 |
Puma AG (d) | 25,123 | | 8,813 |
SAP AG | 118,467 | | 7,857 |
SAP AG sponsored ADR (d) | 19,900 | | 1,319 |
Tom Tailor Holding AG | 28,200 | | 525 |
TOTAL GERMANY | | 59,584 |
Hong Kong - 1.5% |
AIA Group Ltd. | 780,200 | | 2,775 |
Cheung Kong Holdings Ltd. | 74,000 | | 984 |
Henderson Land Development Co. Ltd. | 308,334 | | 1,757 |
Hutchison Whampoa Ltd. | 138,000 | | 1,328 |
Television Broadcasts Ltd. | 370,000 | | 2,718 |
TOTAL HONG KONG | | 9,562 |
Ireland - 2.6% |
CRH PLC | 202,298 | | 4,105 |
Kingspan Group PLC (United Kingdom) | 245,200 | | 2,555 |
Paddy Power PLC (Ireland) | 159,000 | | 10,377 |
TOTAL IRELAND | | 17,037 |
Israel - 0.1% |
Israel Chemicals Ltd. | 64,100 | | 735 |
Common Stocks - continued |
| Shares | | Value (000s) |
Italy - 1.8% |
Assicurazioni Generali SpA | 71,400 | | $ 973 |
Brunello Cucinelli SpA | 4,900 | | 78 |
ENI SpA | 96,700 | | 2,149 |
ENI SpA sponsored ADR | 22,300 | | 994 |
Intesa Sanpaolo SpA | 390,752 | | 591 |
Saipem SpA | 97,161 | | 4,800 |
Tod's SpA | 10,497 | | 1,209 |
UniCredit SpA | 169,187 | | 673 |
TOTAL ITALY | | 11,467 |
Japan - 13.8% |
Aozora Bank Ltd. | 583,000 | | 1,495 |
Calbee, Inc. | 26,800 | | 1,622 |
Canon, Inc. | 90,500 | | 4,102 |
CyberAgent, Inc. | 371 | | 1,143 |
Dai-ichi Mutual Life Insurance Co. | 866 | | 1,084 |
DeNA Co. Ltd. | 37,700 | | 1,183 |
Denso Corp. | 33,000 | | 1,067 |
Fanuc Corp. | 18,600 | | 3,137 |
Fuji Media Holdings, Inc. | 733 | | 1,237 |
GREE, Inc. (d) | 53,600 | | 1,450 |
Honda Motor Co. Ltd. | 133,300 | | 4,798 |
Japan Tobacco, Inc. | 290 | | 1,607 |
Kakaku.com, Inc. | 50,400 | | 1,567 |
Keyence Corp. | 15,400 | | 3,635 |
Mitsubishi Corp. | 152,100 | | 3,297 |
Mitsubishi Estate Co. Ltd. | 75,000 | | 1,326 |
Mitsubishi UFJ Financial Group, Inc. | 1,320,700 | | 6,342 |
Mitsubishi UFJ Financial Group, Inc. sponsored ADR | 179,900 | | 856 |
Mitsui & Co. Ltd. | 235,000 | | 3,670 |
MS&AD Insurance Group Holdings, Inc. | 79,900 | | 1,473 |
NKSJ Holdings, Inc. | 45,000 | | 926 |
Nomura Holdings, Inc. | 204,200 | | 837 |
ORIX Corp. | 28,330 | | 2,709 |
Rakuten, Inc. | 13,862 | | 15,461 |
SOFTBANK CORP. | 222,400 | | 6,638 |
Start Today Co. Ltd. (d) | 87,500 | | 1,347 |
Sumitomo Mitsui Financial Group, Inc. | 138,000 | | 4,416 |
Tokio Marine Holdings, Inc. | 71,800 | | 1,837 |
Tokyo Electron Ltd. | 18,900 | | 1,047 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Toyota Motor Corp. | 156,500 | | $ 6,413 |
Yahoo! Japan Corp. | 5,164 | | 1,550 |
TOTAL JAPAN | | 89,272 |
Korea (South) - 0.6% |
Samsung Electronics Co. Ltd. | 3,087 | | 3,797 |
Luxembourg - 0.2% |
ArcelorMittal SA Class A unit (d) | 54,200 | | 939 |
Netherlands - 1.9% |
AEGON NV | 109,900 | | 511 |
ASML Holding NV | 24,100 | | 1,229 |
Gemalto NV | 23,756 | | 1,770 |
ING Groep NV: | | | |
(Certificaten Van Aandelen) (a) | 173,010 | | 1,221 |
sponsored ADR (a) | 59,300 | | 419 |
Koninklijke Philips Electronics NV | 202,806 | | 4,036 |
Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 81,000 | | 1,619 |
Yandex NV | 50,800 | | 1,205 |
TOTAL NETHERLANDS | | 12,010 |
Nigeria - 0.2% |
Guinness Nigeria PLC | 303,661 | | 457 |
Nigerian Breweries PLC | 1,015,224 | | 710 |
TOTAL NIGERIA | | 1,167 |
Norway - 1.4% |
Aker Solutions ASA | 151,300 | | 2,571 |
DnB NOR ASA | 117,400 | | 1,266 |
Schibsted ASA (B Shares) | 89,500 | | 3,414 |
StatoilHydro ASA | 12,300 | | 330 |
StatoilHydro ASA sponsored ADR (d) | 55,700 | | 1,499 |
TOTAL NORWAY | | 9,080 |
Singapore - 0.3% |
United Overseas Bank Ltd. | 101,627 | | 1,581 |
South Africa - 0.3% |
City Lodge Hotels Ltd. | 32,800 | | 358 |
Life Healthcare Group Holdings Ltd. | 386,000 | | 1,334 |
TOTAL SOUTH AFRICA | | 1,692 |
Common Stocks - continued |
| Shares | | Value (000s) |
Spain - 0.7% |
Banco Bilbao Vizcaya Argentaria SA | 250,247 | | $ 1,694 |
Banco Bilbao Vizcaya Argentaria SA rights 4/30/12 (a) | 250,228 | | 36 |
Banco Santander SA (Spain) | 454,869 | | 2,856 |
TOTAL SPAIN | | 4,586 |
Sweden - 1.1% |
Nordea Bank AB | 166,600 | | 1,477 |
Swedbank AB (A Shares) | 51,612 | | 855 |
Swedish Match Co. AB | 120,200 | | 4,886 |
TOTAL SWEDEN | | 7,218 |
Switzerland - 8.7% |
Adecco SA (Reg.) | 86,391 | | 4,207 |
Compagnie Financiere Richemont SA Series A | 196,788 | | 12,164 |
Credit Suisse Group | 50,181 | | 1,200 |
Credit Suisse Group sponsored ADR | 22,400 | | 522 |
Nestle SA | 103,740 | | 6,356 |
Roche Holding AG (participation certificate) | 33,354 | | 6,093 |
Sika AG (Bearer) | 1,180 | | 2,500 |
Swatch Group AG (Bearer) | 22,610 | | 10,429 |
Swiss Re Ltd. | 21,960 | | 1,377 |
Syngenta AG (Switzerland) | 16,570 | | 5,811 |
Transocean Ltd. (Switzerland) | 18,000 | | 898 |
UBS AG | 170,978 | | 2,135 |
UBS AG (NY Shares) | 55,777 | | 690 |
Zurich Financial Services AG | 8,097 | | 1,981 |
TOTAL SWITZERLAND | | 56,363 |
United Kingdom - 19.9% |
Anglo American PLC: | | | |
ADR | 58,346 | | 1,125 |
(United Kingdom) | 137,059 | | 5,268 |
ARM Holdings PLC | 101,900 | | 862 |
Aviva PLC | 184,200 | | 922 |
Barclays PLC | 1,119,232 | | 3,963 |
BG Group PLC | 344,618 | | 8,113 |
BHP Billiton PLC | 192,986 | | 6,213 |
BP PLC sponsored ADR | 133,066 | | 5,776 |
Centrica PLC | 323,400 | | 1,611 |
Diageo PLC | 432,597 | | 10,913 |
Hays PLC | 2,918,800 | | 4,231 |
HSBC Holdings PLC sponsored ADR | 251,333 | | 11,353 |
Imperial Tobacco Group PLC | 275,806 | | 11,030 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Intertek Group PLC | 85,300 | | $ 3,482 |
Johnson Matthey PLC | 77,754 | | 2,920 |
Legal & General Group PLC | 527,691 | | 1,007 |
Lloyds Banking Group PLC (a) | 1,948,499 | | 978 |
M&C Saatchi | 887,505 | | 2,175 |
Prudential PLC | 125,264 | | 1,535 |
Reckitt Benckiser Group PLC | 120,800 | | 7,033 |
Rio Tinto PLC | 125,232 | | 7,021 |
Rio Tinto PLC sponsored ADR (d) | 21,700 | | 1,217 |
Rolls-Royce Group PLC | 164,274 | | 2,196 |
Royal Bank of Scotland Group PLC (a) | 1,200,800 | | 474 |
Royal Dutch Shell PLC: | | | |
Class A (United Kingdom) | 933 | | 33 |
Class B | 197,675 | | 7,235 |
Standard Chartered PLC (United Kingdom) | 131,807 | | 3,222 |
Sthree PLC | 190,600 | | 1,072 |
Vodafone Group PLC | 2,128,969 | | 5,894 |
William Hill PLC | 866,100 | | 3,956 |
Xstrata PLC | 304,200 | | 5,814 |
TOTAL UNITED KINGDOM | | 128,644 |
United States of America - 3.5% |
Apple, Inc. (a) | 11,100 | | 6,485 |
Deckers Outdoor Corp. (a)(d) | 42,600 | | 2,173 |
Dunkin' Brands Group, Inc. | 59,700 | | 1,932 |
Google, Inc. Class A (a) | 9,800 | | 5,931 |
Life Technologies Corp. (a) | 20,300 | | 941 |
Monsanto Co. | 12,800 | | 975 |
Visa, Inc. Class A | 31,500 | | 3,874 |
TOTAL UNITED STATES OF AMERICA | | 22,311 |
TOTAL COMMON STOCKS (Cost $595,907) |
618,735
|
Nonconvertible Preferred Stocks - 2.2% |
| | | |
Germany - 2.2% |
Volkswagen AG | 74,000 | | 14,018 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC Class C | 17,413,044 | | 28 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $10,170) |
14,046
|
Money Market Funds - 9.0% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.14% (b) | 11,104,475 | | $ 11,104 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 47,103,995 | | 47,104 |
TOTAL MONEY MARKET FUNDS (Cost $58,208) |
58,208
|
TOTAL INVESTMENT PORTFOLIO - 107.0% (Cost $664,285) | | 690,989 |
NET OTHER ASSETS (LIABILITIES) - (7.0)% | | (44,938) |
NET ASSETS - 100% | $ 646,051 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 $182,000 or 0.0% of net assets. |
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 | $ 3 |
Fidelity Securities Lending Cash Central Fund | 147 |
Total | $ 150 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 164,364 | $ 129,550 | $ 34,814 | $ - |
Consumer Staples | 74,033 | 59,891 | 14,142 | - |
Energy | 41,673 | 24,651 | 17,022 | - |
Financials | 98,205 | 56,957 | 41,248 | - |
Health Care | 40,962 | 34,165 | 6,797 | - |
Industrials | 46,650 | 32,510 | 14,140 | - |
Information Technology | 80,255 | 57,002 | 23,253 | - |
Materials | 68,303 | 37,296 | 31,007 | - |
Telecommunication Services | 14,849 | 2,317 | 12,532 | - |
Utilities | 3,487 | 3,487 | - | - |
Money Market Funds | 58,208 | 58,208 | - | - |
Total Investments in Securities: | $ 690,989 | $ 496,034 | $ 194,955 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $44,580) - See accompanying schedule: Unaffiliated issuers (cost $606,077) | $ 632,781 | |
Fidelity Central Funds (cost $58,208) | 58,208 | |
Total Investments (cost $664,285) | | $ 690,989 |
Cash | | 23 |
Foreign currency held at value (cost $91) | | 91 |
Receivable for investments sold | | 950 |
Receivable for fund shares sold | | 222 |
Dividends receivable | | 2,580 |
Distributions receivable from Fidelity Central Funds | | 69 |
Prepaid expenses | | 1 |
Other receivables | | 106 |
Total assets | | 695,031 |
| | |
Liabilities | | |
Payable for investments purchased | $ 593 | |
Payable for fund shares redeemed | 467 | |
Accrued management fee | 443 | |
Distribution and service plan fees payable | 153 | |
Other affiliated payables | 152 | |
Other payables and accrued expenses | 68 | |
Collateral on securities loaned, at value | 47,104 | |
Total liabilities | | 48,980 |
| | |
Net Assets | | $ 646,051 |
Net Assets consist of: | | |
Paid in capital | | $ 755,911 |
Undistributed net investment income | | 3,421 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (140,004) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 26,723 |
Net Assets | | $ 646,051 |
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, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($62,826 ÷ 3,727.6 shares) | | $ 16.85 |
| | |
Maximum offering price per share (100/94.25 of $16.85) | | $ 17.88 |
Class T:
Net Asset Value and redemption price per share ($295,518 ÷ 17,103.5 shares) | | $ 17.28 |
| | |
Maximum offering price per share (100/96.50 of $17.28) | | $ 17.91 |
Class B:
Net Asset Value and offering price per share ($3,576 ÷ 217.9 shares)A | | $ 16.41 |
| | |
Class C:
Net Asset Value and offering price per share ($17,351 ÷ 1,046.3 shares)A | | $ 16.58 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($266,780 ÷ 15,529.9 shares) | | $ 17.18 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 8,222 |
Income from Fidelity Central Funds | | 150 |
Income before foreign taxes withheld | | 8,372 |
Less foreign taxes withheld | | (522) |
Total income | | 7,850 |
| | |
Expenses | | |
Management fee
Basic fee | $ 2,325 | |
Performance adjustment | (322) | |
Transfer agent fees | 752 | |
Distribution and service plan fees | 906 | |
Accounting and security lending fees | 164 | |
Custodian fees and expenses | 60 | |
Independent trustees' compensation | 2 | |
Registration fees | 51 | |
Audit | 38 | |
Legal | 2 | |
Interest | - | |
Miscellaneous | 4 | |
Total expenses before reductions | 3,982 | |
Expense reductions | (68) | 3,914 |
Net investment income (loss) | | 3,936 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (19,457) | |
Foreign currency transactions | (24) | |
Total net realized gain (loss) | | (19,481) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 51,387 | |
Assets and liabilities in foreign currencies | (39) | |
Total change in net unrealized appreciation (depreciation) | | 51,348 |
Net gain (loss) | | 31,867 |
Net increase (decrease) in net assets resulting from operations | | $ 35,803 |
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
April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,936 | $ 10,269 |
Net realized gain (loss) | (19,481) | 139,082 |
Change in net unrealized appreciation (depreciation) | 51,348 | (202,787) |
Net increase (decrease) in net assets resulting
from operations | 35,803 | (53,436) |
Distributions to shareholders from net investment income | (10,172) | (12,982) |
Distributions to shareholders from net realized gain | - | (2,756) |
Total distributions | (10,172) | (15,738) |
Share transactions - net increase (decrease) | (115,233) | (342,819) |
Redemption fees | 8 | 20 |
Total increase (decrease) in net assets | (89,594) | (411,973) |
| | |
Net Assets | | |
Beginning of period | 735,645 | 1,147,618 |
End of period (including undistributed net investment income of $3,421 and undistributed net investment income of $9,657, respectively) | $ 646,051 | $ 735,645 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.13 | $ 17.77 | $ 15.68 | $ 13.56 | $ 26.85 | $ 21.67 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .09 | .16 | .17 | .24 | .38 | .31 |
Net realized and unrealized gain (loss) | .87 | (1.54) | 2.16 | 2.12 | (11.56) | 6.16 |
Total from investment operations | .96 | (1.38) | 2.33 | 2.36 | (11.18) | 6.47 |
Distributions from net investment income | (.24) | (.21) | (.21) | (.24) | (.33) | (.23) |
Distributions from net realized gain | - | (.05) | (.03) | - | (1.78) | (1.06) |
Total distributions | (.24) | (.26) | (.24) | (.24) | (2.11) | (1.29) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.85 | $ 16.13 | $ 17.77 | $ 15.68 | $ 13.56 | $ 26.85 |
Total Return B, C, D | 6.08% | (7.95)% | 14.99% | 17.97% | (45.08)% | 31.44% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.26% A | 1.34% | 1.36% | 1.36% | 1.35% | 1.17% |
Expenses net of fee waivers, if any | 1.26% A | 1.34% | 1.36% | 1.36% | 1.35% | 1.17% |
Expenses net of all reductions | 1.24% A | 1.32% | 1.33% | 1.33% | 1.32% | 1.13% |
Net investment income (loss) | 1.15% A | .90% | 1.04% | 1.79% | 1.83% | 1.34% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 63 | $ 60 | $ 70 | $ 72 | $ 73 | $ 147 |
Portfolio turnover rate G | 25% A | 44% | 53% | 83% | 79% | 66% |
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 $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.50 | $ 18.18 | $ 16.03 | $ 13.84 | $ 27.35 | $ 22.05 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .08 | .13 | .14 | .22 | .36 | .28 |
Net realized and unrealized gain (loss) | .90 | (1.59) | 2.23 | 2.17 | (11.82) | 6.27 |
Total from investment operations | .98 | (1.46) | 2.37 | 2.39 | (11.46) | 6.55 |
Distributions from net investment income | (.20) | (.17) | (.19) | (.20) | (.27) | (.19) |
Distributions from net realized gain | - | (.05) | (.03) | - | (1.78) | (1.06) |
Total distributions | (.20) | (.22) | (.22) | (.20) | (2.05) | (1.25) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.28 | $ 16.50 | $ 18.18 | $ 16.03 | $ 13.84 | $ 27.35 |
Total Return B, C, D | 6.05% | (8.17)% | 14.88% | 17.70% | (45.18)% | 31.24% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.44% A | 1.52% | 1.53% | 1.57% | 1.51% | 1.33% |
Expenses net of fee waivers, if any | 1.44% A | 1.51% | 1.53% | 1.57% | 1.51% | 1.33% |
Expenses net of all reductions | 1.42% A | 1.49% | 1.50% | 1.54% | 1.48% | 1.30% |
Net investment income (loss) | .97% A | .73% | .86% | 1.58% | 1.67% | 1.17% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 296 | $ 305 | $ 371 | $ 367 | $ 345 | $ 710 |
Portfolio turnover rate G | 25% A | 44% | 53% | 83% | 79% | 66% |
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 $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.58 | $ 17.18 | $ 15.16 | $ 13.02 | $ 25.79 | $ 20.81 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .03 | .03 | .04 | .13 | .22 | .12 |
Net realized and unrealized gain (loss) | .86 | (1.51) | 2.10 | 2.08 | (11.14) | 5.94 |
Total from investment operations | .89 | (1.48) | 2.14 | 2.21 | (10.92) | 6.06 |
Distributions from net investment income | (.06) | (.08) | (.09) | (.07) | (.07) | (.02) |
Distributions from net realized gain | - | (.05) | (.03) | - | (1.78) | (1.06) |
Total distributions | (.06) | (.12) J | (.12) | (.07) | (1.85) | (1.08) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.41 | $ 15.58 | $ 17.18 | $ 15.16 | $ 13.02 | $ 25.79 |
Total Return B, C, D | 5.75% | (8.67)% | 14.15% | 17.09% | (45.50)% | 30.45% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.01% A | 2.10% | 2.11% | 2.12% | 2.10% | 1.94% |
Expenses net of fee waivers, if any | 2.01% A | 2.09% | 2.11% | 2.12% | 2.10% | 1.94% |
Expenses net of all reductions | 1.99% A | 2.07% | 2.09% | 2.08% | 2.08% | 1.91% |
Net investment income (loss) | .40% A | .15% | .28% | 1.04% | 1.07% | .56% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 4 | $ 4 | $ 7 | $ 8 | $ 10 | $ 27 |
Portfolio turnover rate G | 25% A | 44% | 53% | 83% | 79% | 66% |
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 $.01 per share. J Total distributions of $.12 per share is comprised of distributions from net investment income of $.079 and distributions from net realized gain of $.045 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.78 | $ 17.39 | $ 15.36 | $ 13.22 | $ 26.22 | $ 21.19 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .03 | .03 | .05 | .14 | .22 | .14 |
Net realized and unrealized gain (loss) | .87 | (1.52) | 2.12 | 2.09 | (11.31) | 6.02 |
Total from investment operations | .90 | (1.49) | 2.17 | 2.23 | (11.09) | 6.16 |
Distributions from net investment income | (.10) | (.07) | (.11) | (.09) | (.13) | (.07) |
Distributions from net realized gain | - | (.05) | (.03) | - | (1.78) | (1.06) |
Total distributions | (.10) | (.12) | (.14) | (.09) | (1.91) | (1.13) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.58 | $ 15.78 | $ 17.39 | $ 15.36 | $ 13.22 | $ 26.22 |
Total Return B, C, D | 5.74% | (8.67)% | 14.17% | 17.06% | (45.50)% | 30.48% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.01% A | 2.09% | 2.10% | 2.11% | 2.09% | 1.91% |
Expenses net of fee waivers, if any | 2.01% A | 2.09% | 2.10% | 2.11% | 2.09% | 1.91% |
Expenses net of all reductions | 1.99% A | 2.07% | 2.08% | 2.08% | 2.07% | 1.87% |
Net investment income (loss) | .40% A | .15% | .29% | 1.05% | 1.08% | .60% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 17 | $ 19 | $ 22 | $ 23 | $ 22 | $ 46 |
Portfolio turnover rate G | 25% A | 44% | 53% | 83% | 79% | 66% |
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 $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.45 | $ 18.10 | $ 15.95 | $ 13.83 | $ 27.35 | $ 22.06 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .12 | .23 | .22 | .29 | .45 | .40 |
Net realized and unrealized gain (loss) | .89 | (1.59) | 2.23 | 2.14 | (11.78) | 6.26 |
Total from investment operations | 1.01 | (1.36) | 2.45 | 2.43 | (11.33) | 6.66 |
Distributions from net investment income | (.28) | (.24) | (.27) | (.31) | (.41) | (.31) |
Distributions from net realized gain | - | (.05) | (.03) | - | (1.78) | (1.06) |
Total distributions | (.28) | (.29) | (.30) | (.31) | (2.19) | (1.37) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 17.18 | $ 16.45 | $ 18.10 | $ 15.95 | $ 13.83 | $ 27.35 |
Total Return B, C | 6.34% | (7.70)% | 15.49% | 18.32% | (44.92)% | 31.88% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .91% A | 1.00% | 1.01% | 1.06% | 1.01% | .84% |
Expenses net of fee waivers, if any | .91% A | .99% | 1.01% | 1.06% | 1.01% | .84% |
Expenses net of all reductions | .89% A | .97% | .98% | 1.02% | .98% | .81% |
Net investment income (loss) | 1.50% A | 1.25% | 1.39% | 2.10% | 2.17% | 1.66% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 267 | $ 349 | $ 678 | $ 727 | $ 551 | $ 609 |
Portfolio turnover rate F | 25% A | 44% | 53% | 83% | 79% | 66% |
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 $.01 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, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Overseas Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant 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 are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are 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 each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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 rate 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
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. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), 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 | $ 100,380 |
Gross unrealized depreciation | (87,524) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 12,856 |
| |
Tax cost | $ 678,133 |
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. At October 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (104,924) |
Total capital loss carryforward | $ (104,924) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value 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.
4. Operating Policies.
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
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $83,221 and $202,252, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .61% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 75 | $ 2 |
Class T | .25% | .25% | 725 | 12 |
Class B | .75% | .25% | 19 | 15 |
Class C | .75% | .25% | 87 | 5 |
| | | $ 906 | $ 34 |
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, 1.00% for
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
Class C, 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
by FDC |
Class A | $ 3 |
Class T | 3 |
Class B* | 3 |
Class C* | 1 |
| $ 10 |
* 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 FMR, 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
Average
Net Assets* |
Class A | $ 90 | .30 |
Class T | 334 | .23 |
Class B | 6 | .30 |
Class C | 26 | .30 |
Institutional Class | 296 | .21 |
| $ 752 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. 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. The commissions paid to these affiliated firms were one hundred thirty-six dollars for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan
Balance | Weighted Average
Interest Rate | Interest Expense |
Borrower | $ 9,917 | .32% | $ -* |
* Amount represents one hundred seventy-eight dollars.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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
Semiannual Report
8. Security Lending - continued
Liabilities. At period end, there were no security loans outstanding with FCM. 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 $147. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $68 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net investment income | | |
Class A | $ 862 | $ 829 |
Class T | 3,589 | 3,501 |
Class B | 16 | 30 |
Class C | 112 | 89 |
Institutional Class | 5,593 | 8,533 |
Total | $ 10,172 | $ 12,982 |
From net realized gain | | |
Class A | $ - | $ 178 |
Class T | - | 911 |
Class B | - | 17 |
Class C | - | 57 |
Institutional Class | - | 1,593 |
Total | $ - | $ 2,756 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 401 | 644 | $ 6,269 | $ 11,749 |
Reinvestment of distributions | 52 | 51 | 791 | 919 |
Shares redeemed | (424) | (937) | (6,710) | (16,834) |
Net increase (decrease) | 29 | (242) | $ 350 | $ (4,166) |
Class T | | | | |
Shares sold | 1,555 | 3,310 | $ 25,422 | $ 61,021 |
Reinvestment of distributions | 223 | 232 | 3,491 | 4,288 |
Shares redeemed | (3,127) | (5,489) | (50,717) | (101,187) |
Net increase (decrease) | (1,349) | (1,947) | $ (21,804) | $ (35,878) |
Class B | | | | |
Shares sold | 2 | 12 | $ 27 | $ 219 |
Reinvestment of distributions | 1 | 2 | 14 | 41 |
Shares redeemed | (52) | (144) | (812) | (2,540) |
Net increase (decrease) | (49) | (130) | $ (771) | $ (2,280) |
Class C | | | | |
Shares sold | 51 | 165 | $ 788 | $ 2,956 |
Reinvestment of distributions | 6 | 7 | 94 | 125 |
Shares redeemed | (199) | (271) | (3,110) | (4,750) |
Net increase (decrease) | (142) | (99) | $ (2,228) | $ (1,669) |
Institutional Class | | | | |
Shares sold | 1,433 | 2,965 | $ 22,481 | $ 53,805 |
Reinvestment of distributions | 353 | 544 | 5,475 | 9,988 |
Shares redeemed | (7,440) | (19,770) | (118,736) | (362,619) |
Net increase (decrease) | (5,654) | (16,261) | $ (90,780) | $ (298,826) |
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.
At the end of the period, Strategic Advisers International II Fund was the owner of record of 16% 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
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors (UK) Limited
FIL Investments (Japan) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OS-USAN-0612
1.784903.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Overseas
Fund - Institutional Class
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011 to
April 30, 2012 |
Class A | 1.26% | | | |
Actual | | $ 1,000.00 | $ 1,060.80 | $ 6.46 |
HypotheticalA | | $ 1,000.00 | $ 1,018.60 | $ 6.32 |
Class T | 1.44% | | | |
Actual | | $ 1,000.00 | $ 1,060.50 | $ 7.38 |
HypotheticalA | | $ 1,000.00 | $ 1,017.70 | $ 7.22 |
Class B | 2.01% | | | |
Actual | | $ 1,000.00 | $ 1,057.50 | $ 10.28 |
HypotheticalA | | $ 1,000.00 | $ 1,014.87 | $ 10.07 |
Class C | 2.01% | | | |
Actual | | $ 1,000.00 | $ 1,057.40 | $ 10.28 |
HypotheticalA | | $ 1,000.00 | $ 1,014.87 | $ 10.07 |
Institutional Class | .91% | | | |
Actual | | $ 1,000.00 | $ 1,063.40 | $ 4.67 |
HypotheticalA | | $ 1,000.00 | $ 1,020.34 | $ 4.57 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.7 | 2.1 |
Rakuten, Inc. (Japan, Internet & Catalog Retail) | 2.4 | 2.0 |
Volkswagen AG (Germany, Automobiles) | 2.2 | 2.0 |
LVMH Moet Hennessy - Louis Vuitton SA (France, Textiles, Apparel & Luxury Goods) | 2.1 | 1.8 |
Compagnie Financiere Richemont SA Series A (Switzerland, Textiles, Apparel & Luxury Goods) | 1.9 | 1.5 |
| 11.3 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 25.4 | 23.5 |
Financials | 15.1 | 17.6 |
Information Technology | 12.3 | 10.9 |
Consumer Staples | 11.6 | 6.5 |
Materials | 10.8 | 12.1 |
Top Five Countries as of April 30, 2012 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 19.9 | 18.5 |
Japan | 13.8 | 15.6 |
France | 12.1 | 12.6 |
Germany | 11.4 | 11.6 |
Switzerland | 8.7 | 7.6 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012 | As of October 31, 2011 |
| Stocks 98.0% | | | Stocks 98.1% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 2.0% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 1.9% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% |
| Shares | | Value (000s) |
Australia - 2.6% |
BHP Billiton Ltd. | 211,768 | | $ 7,857 |
Fortescue Metals Group Ltd. | 208,017 | | 1,222 |
Macquarie Group Ltd. | 52,488 | | 1,597 |
Newcrest Mining Ltd. | 108,586 | | 2,975 |
Westfield Group unit | 344,639 | | 3,318 |
TOTAL AUSTRALIA | | 16,969 |
Bailiwick of Jersey - 0.6% |
Wolseley PLC | 19,500 | | 742 |
WPP PLC | 247,196 | | 3,348 |
TOTAL BAILIWICK OF JERSEY | | 4,090 |
Belgium - 0.3% |
Ageas (d) | 410,900 | | 748 |
Hamon & Compagnie International SA | 60,300 | | 1,289 |
TOTAL BELGIUM | | 2,037 |
Bermuda - 2.1% |
Clear Media Ltd. | 1,278,000 | | 779 |
Li & Fung Ltd. | 2,148,000 | | 4,596 |
Oriental Watch Holdings Ltd. | 7,164,000 | | 3,001 |
Petra Diamonds Ltd. (a) | 379,200 | | 956 |
Signet Jewelers Ltd. | 82,600 | | 4,028 |
TOTAL BERMUDA | | 13,360 |
Brazil - 0.4% |
Drogasil SA | 47,700 | | 514 |
Souza Cruz Industria e Comercio | 149,900 | | 2,335 |
TOTAL BRAZIL | | 2,849 |
British Virgin Islands - 0.9% |
Gem Diamonds Ltd. (a) | 261,700 | | 1,100 |
Mail.ru Group Ltd.: | | | |
GDR (a)(e) | 4,200 | | 182 |
GDR (Reg. S) (a) | 103,500 | | 4,476 |
TOTAL BRITISH VIRGIN ISLANDS | | 5,758 |
Canada - 0.7% |
Barrick Gold Corp. | 18,200 | | 736 |
Potash Corp. of Saskatchewan, Inc. | 72,800 | | 3,096 |
Yamana Gold, Inc. | 60,500 | | 888 |
TOTAL CANADA | | 4,720 |
Common Stocks - continued |
| Shares | | Value (000s) |
Cayman Islands - 5.4% |
Baidu.com, Inc. sponsored ADR (a) | 46,500 | | $ 6,171 |
Biostime International Holdings Ltd. | 59,500 | | 171 |
E-Commerce China Dangdang, Inc. ADR (a)(d) | 38,000 | | 304 |
Hengdeli Holdings Ltd. | 25,890,000 | | 10,378 |
Home Inns & Hotels Management, Inc. sponsored ADR (a)(d) | 32,200 | | 765 |
Natural Beauty Bio-Technology Ltd. | 6,200,000 | | 1,199 |
Noah Holdings Ltd. sponsored ADR | 129,100 | | 920 |
Perfect World Co. Ltd. sponsored ADR Class B | 203,400 | | 2,484 |
Renren, Inc. ADR (d) | 15,000 | | 92 |
Shenguan Holdings Group Ltd. | 2,022,000 | | 1,095 |
SINA Corp. (a) | 8,800 | | 515 |
Tencent Holdings Ltd. | 309,800 | | 9,735 |
YouKu.com, Inc. ADR (a)(d) | 38,800 | | 933 |
TOTAL CAYMAN ISLANDS | | 34,762 |
Denmark - 2.9% |
Carlsberg A/S Series B | 10,600 | | 914 |
Danske Bank A/S (a) | 51,111 | | 830 |
Novo Nordisk A/S: | | | |
Series B | 19,863 | | 2,929 |
Series B sponsored ADR | 95,400 | | 14,026 |
TOTAL DENMARK | | 18,699 |
France - 12.1% |
Alstom SA | 156,484 | | 5,589 |
Atos Origin SA | 37,421 | | 2,410 |
AXA SA | 33,258 | | 471 |
AXA SA sponsored ADR | 62,300 | | 883 |
Beneteau SA | 86,400 | | 936 |
BNP Paribas SA | 60,122 | | 2,416 |
Club Mediterranee SA (a) | 53,000 | | 1,016 |
Compagnie Generale de Geophysique SA (a) | 96,000 | | 2,753 |
Danone SA | 128,222 | | 9,022 |
Gameloft (a) | 239,900 | | 1,493 |
GDF Suez (d) | 81,500 | | 1,876 |
Iliad SA | 18,000 | | 2,317 |
Ingenico SA | 55,137 | | 2,901 |
Ipsos SA | 57,360 | | 1,862 |
Lafarge SA (Bearer) | 34,900 | | 1,361 |
LVMH Moet Hennessy - Louis Vuitton SA (d) | 81,400 | | 13,486 |
Pernod Ricard SA | 72,700 | | 7,546 |
PPR SA (d) | 7,200 | | 1,204 |
Common Stocks - continued |
| Shares | | Value (000s) |
France - continued |
Safran SA | 52,800 | | $ 1,957 |
Sanofi SA | 50,634 | | 3,868 |
Sanofi SA sponsored ADR | 206,200 | | 7,873 |
Societe Generale Series A | 28,913 | | 684 |
Total SA | 94,200 | | 4,522 |
TOTAL FRANCE | | 78,446 |
Germany - 9.2% |
adidas AG | 90,200 | | 7,523 |
Allianz AG | 32,906 | | 3,667 |
Bayer AG (d) | 55,340 | | 3,898 |
Bayerische Motoren Werke AG (BMW) | 14,586 | | 1,387 |
Beiersdorf AG (d) | 94,400 | | 6,623 |
Commerzbank AG (a) | 235,000 | | 509 |
Deutsche Bank AG | 57,900 | | 2,514 |
Deutsche Boerse AG | 58,469 | | 3,671 |
Deutsche Post AG | 118,681 | | 2,215 |
Hugo Boss AG (d) | 35,400 | | 3,946 |
K&S AG | 23,400 | | 1,170 |
Linde AG (d) | 13,429 | | 2,299 |
Munich Re Group (d) | 11,355 | | 1,648 |
Puma AG (d) | 25,123 | | 8,813 |
SAP AG | 118,467 | | 7,857 |
SAP AG sponsored ADR (d) | 19,900 | | 1,319 |
Tom Tailor Holding AG | 28,200 | | 525 |
TOTAL GERMANY | | 59,584 |
Hong Kong - 1.5% |
AIA Group Ltd. | 780,200 | | 2,775 |
Cheung Kong Holdings Ltd. | 74,000 | | 984 |
Henderson Land Development Co. Ltd. | 308,334 | | 1,757 |
Hutchison Whampoa Ltd. | 138,000 | | 1,328 |
Television Broadcasts Ltd. | 370,000 | | 2,718 |
TOTAL HONG KONG | | 9,562 |
Ireland - 2.6% |
CRH PLC | 202,298 | | 4,105 |
Kingspan Group PLC (United Kingdom) | 245,200 | | 2,555 |
Paddy Power PLC (Ireland) | 159,000 | | 10,377 |
TOTAL IRELAND | | 17,037 |
Israel - 0.1% |
Israel Chemicals Ltd. | 64,100 | | 735 |
Common Stocks - continued |
| Shares | | Value (000s) |
Italy - 1.8% |
Assicurazioni Generali SpA | 71,400 | | $ 973 |
Brunello Cucinelli SpA | 4,900 | | 78 |
ENI SpA | 96,700 | | 2,149 |
ENI SpA sponsored ADR | 22,300 | | 994 |
Intesa Sanpaolo SpA | 390,752 | | 591 |
Saipem SpA | 97,161 | | 4,800 |
Tod's SpA | 10,497 | | 1,209 |
UniCredit SpA | 169,187 | | 673 |
TOTAL ITALY | | 11,467 |
Japan - 13.8% |
Aozora Bank Ltd. | 583,000 | | 1,495 |
Calbee, Inc. | 26,800 | | 1,622 |
Canon, Inc. | 90,500 | | 4,102 |
CyberAgent, Inc. | 371 | | 1,143 |
Dai-ichi Mutual Life Insurance Co. | 866 | | 1,084 |
DeNA Co. Ltd. | 37,700 | | 1,183 |
Denso Corp. | 33,000 | | 1,067 |
Fanuc Corp. | 18,600 | | 3,137 |
Fuji Media Holdings, Inc. | 733 | | 1,237 |
GREE, Inc. (d) | 53,600 | | 1,450 |
Honda Motor Co. Ltd. | 133,300 | | 4,798 |
Japan Tobacco, Inc. | 290 | | 1,607 |
Kakaku.com, Inc. | 50,400 | | 1,567 |
Keyence Corp. | 15,400 | | 3,635 |
Mitsubishi Corp. | 152,100 | | 3,297 |
Mitsubishi Estate Co. Ltd. | 75,000 | | 1,326 |
Mitsubishi UFJ Financial Group, Inc. | 1,320,700 | | 6,342 |
Mitsubishi UFJ Financial Group, Inc. sponsored ADR | 179,900 | | 856 |
Mitsui & Co. Ltd. | 235,000 | | 3,670 |
MS&AD Insurance Group Holdings, Inc. | 79,900 | | 1,473 |
NKSJ Holdings, Inc. | 45,000 | | 926 |
Nomura Holdings, Inc. | 204,200 | | 837 |
ORIX Corp. | 28,330 | | 2,709 |
Rakuten, Inc. | 13,862 | | 15,461 |
SOFTBANK CORP. | 222,400 | | 6,638 |
Start Today Co. Ltd. (d) | 87,500 | | 1,347 |
Sumitomo Mitsui Financial Group, Inc. | 138,000 | | 4,416 |
Tokio Marine Holdings, Inc. | 71,800 | | 1,837 |
Tokyo Electron Ltd. | 18,900 | | 1,047 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Toyota Motor Corp. | 156,500 | | $ 6,413 |
Yahoo! Japan Corp. | 5,164 | | 1,550 |
TOTAL JAPAN | | 89,272 |
Korea (South) - 0.6% |
Samsung Electronics Co. Ltd. | 3,087 | | 3,797 |
Luxembourg - 0.2% |
ArcelorMittal SA Class A unit (d) | 54,200 | | 939 |
Netherlands - 1.9% |
AEGON NV | 109,900 | | 511 |
ASML Holding NV | 24,100 | | 1,229 |
Gemalto NV | 23,756 | | 1,770 |
ING Groep NV: | | | |
(Certificaten Van Aandelen) (a) | 173,010 | | 1,221 |
sponsored ADR (a) | 59,300 | | 419 |
Koninklijke Philips Electronics NV | 202,806 | | 4,036 |
Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 81,000 | | 1,619 |
Yandex NV | 50,800 | | 1,205 |
TOTAL NETHERLANDS | | 12,010 |
Nigeria - 0.2% |
Guinness Nigeria PLC | 303,661 | | 457 |
Nigerian Breweries PLC | 1,015,224 | | 710 |
TOTAL NIGERIA | | 1,167 |
Norway - 1.4% |
Aker Solutions ASA | 151,300 | | 2,571 |
DnB NOR ASA | 117,400 | | 1,266 |
Schibsted ASA (B Shares) | 89,500 | | 3,414 |
StatoilHydro ASA | 12,300 | | 330 |
StatoilHydro ASA sponsored ADR (d) | 55,700 | | 1,499 |
TOTAL NORWAY | | 9,080 |
Singapore - 0.3% |
United Overseas Bank Ltd. | 101,627 | | 1,581 |
South Africa - 0.3% |
City Lodge Hotels Ltd. | 32,800 | | 358 |
Life Healthcare Group Holdings Ltd. | 386,000 | | 1,334 |
TOTAL SOUTH AFRICA | | 1,692 |
Common Stocks - continued |
| Shares | | Value (000s) |
Spain - 0.7% |
Banco Bilbao Vizcaya Argentaria SA | 250,247 | | $ 1,694 |
Banco Bilbao Vizcaya Argentaria SA rights 4/30/12 (a) | 250,228 | | 36 |
Banco Santander SA (Spain) | 454,869 | | 2,856 |
TOTAL SPAIN | | 4,586 |
Sweden - 1.1% |
Nordea Bank AB | 166,600 | | 1,477 |
Swedbank AB (A Shares) | 51,612 | | 855 |
Swedish Match Co. AB | 120,200 | | 4,886 |
TOTAL SWEDEN | | 7,218 |
Switzerland - 8.7% |
Adecco SA (Reg.) | 86,391 | | 4,207 |
Compagnie Financiere Richemont SA Series A | 196,788 | | 12,164 |
Credit Suisse Group | 50,181 | | 1,200 |
Credit Suisse Group sponsored ADR | 22,400 | | 522 |
Nestle SA | 103,740 | | 6,356 |
Roche Holding AG (participation certificate) | 33,354 | | 6,093 |
Sika AG (Bearer) | 1,180 | | 2,500 |
Swatch Group AG (Bearer) | 22,610 | | 10,429 |
Swiss Re Ltd. | 21,960 | | 1,377 |
Syngenta AG (Switzerland) | 16,570 | | 5,811 |
Transocean Ltd. (Switzerland) | 18,000 | | 898 |
UBS AG | 170,978 | | 2,135 |
UBS AG (NY Shares) | 55,777 | | 690 |
Zurich Financial Services AG | 8,097 | | 1,981 |
TOTAL SWITZERLAND | | 56,363 |
United Kingdom - 19.9% |
Anglo American PLC: | | | |
ADR | 58,346 | | 1,125 |
(United Kingdom) | 137,059 | | 5,268 |
ARM Holdings PLC | 101,900 | | 862 |
Aviva PLC | 184,200 | | 922 |
Barclays PLC | 1,119,232 | | 3,963 |
BG Group PLC | 344,618 | | 8,113 |
BHP Billiton PLC | 192,986 | | 6,213 |
BP PLC sponsored ADR | 133,066 | | 5,776 |
Centrica PLC | 323,400 | | 1,611 |
Diageo PLC | 432,597 | | 10,913 |
Hays PLC | 2,918,800 | | 4,231 |
HSBC Holdings PLC sponsored ADR | 251,333 | | 11,353 |
Imperial Tobacco Group PLC | 275,806 | | 11,030 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Intertek Group PLC | 85,300 | | $ 3,482 |
Johnson Matthey PLC | 77,754 | | 2,920 |
Legal & General Group PLC | 527,691 | | 1,007 |
Lloyds Banking Group PLC (a) | 1,948,499 | | 978 |
M&C Saatchi | 887,505 | | 2,175 |
Prudential PLC | 125,264 | | 1,535 |
Reckitt Benckiser Group PLC | 120,800 | | 7,033 |
Rio Tinto PLC | 125,232 | | 7,021 |
Rio Tinto PLC sponsored ADR (d) | 21,700 | | 1,217 |
Rolls-Royce Group PLC | 164,274 | | 2,196 |
Royal Bank of Scotland Group PLC (a) | 1,200,800 | | 474 |
Royal Dutch Shell PLC: | | | |
Class A (United Kingdom) | 933 | | 33 |
Class B | 197,675 | | 7,235 |
Standard Chartered PLC (United Kingdom) | 131,807 | | 3,222 |
Sthree PLC | 190,600 | | 1,072 |
Vodafone Group PLC | 2,128,969 | | 5,894 |
William Hill PLC | 866,100 | | 3,956 |
Xstrata PLC | 304,200 | | 5,814 |
TOTAL UNITED KINGDOM | | 128,644 |
United States of America - 3.5% |
Apple, Inc. (a) | 11,100 | | 6,485 |
Deckers Outdoor Corp. (a)(d) | 42,600 | | 2,173 |
Dunkin' Brands Group, Inc. | 59,700 | | 1,932 |
Google, Inc. Class A (a) | 9,800 | | 5,931 |
Life Technologies Corp. (a) | 20,300 | | 941 |
Monsanto Co. | 12,800 | | 975 |
Visa, Inc. Class A | 31,500 | | 3,874 |
TOTAL UNITED STATES OF AMERICA | | 22,311 |
TOTAL COMMON STOCKS (Cost $595,907) |
618,735
|
Nonconvertible Preferred Stocks - 2.2% |
| | | |
Germany - 2.2% |
Volkswagen AG | 74,000 | | 14,018 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC Class C | 17,413,044 | | 28 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $10,170) |
14,046
|
Money Market Funds - 9.0% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.14% (b) | 11,104,475 | | $ 11,104 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 47,103,995 | | 47,104 |
TOTAL MONEY MARKET FUNDS (Cost $58,208) |
58,208
|
TOTAL INVESTMENT PORTFOLIO - 107.0% (Cost $664,285) | | 690,989 |
NET OTHER ASSETS (LIABILITIES) - (7.0)% | | (44,938) |
NET ASSETS - 100% | $ 646,051 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 $182,000 or 0.0% of net assets. |
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 | $ 3 |
Fidelity Securities Lending Cash Central Fund | 147 |
Total | $ 150 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2012, 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 Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 164,364 | $ 129,550 | $ 34,814 | $ - |
Consumer Staples | 74,033 | 59,891 | 14,142 | - |
Energy | 41,673 | 24,651 | 17,022 | - |
Financials | 98,205 | 56,957 | 41,248 | - |
Health Care | 40,962 | 34,165 | 6,797 | - |
Industrials | 46,650 | 32,510 | 14,140 | - |
Information Technology | 80,255 | 57,002 | 23,253 | - |
Materials | 68,303 | 37,296 | 31,007 | - |
Telecommunication Services | 14,849 | 2,317 | 12,532 | - |
Utilities | 3,487 | 3,487 | - | - |
Money Market Funds | 58,208 | 58,208 | - | - |
Total Investments in Securities: | $ 690,989 | $ 496,034 | $ 194,955 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $44,580) - See accompanying schedule: Unaffiliated issuers (cost $606,077) | $ 632,781 | |
Fidelity Central Funds (cost $58,208) | 58,208 | |
Total Investments (cost $664,285) | | $ 690,989 |
Cash | | 23 |
Foreign currency held at value (cost $91) | | 91 |
Receivable for investments sold | | 950 |
Receivable for fund shares sold | | 222 |
Dividends receivable | | 2,580 |
Distributions receivable from Fidelity Central Funds | | 69 |
Prepaid expenses | | 1 |
Other receivables | | 106 |
Total assets | | 695,031 |
| | |
Liabilities | | |
Payable for investments purchased | $ 593 | |
Payable for fund shares redeemed | 467 | |
Accrued management fee | 443 | |
Distribution and service plan fees payable | 153 | |
Other affiliated payables | 152 | |
Other payables and accrued expenses | 68 | |
Collateral on securities loaned, at value | 47,104 | |
Total liabilities | | 48,980 |
| | |
Net Assets | | $ 646,051 |
Net Assets consist of: | | |
Paid in capital | | $ 755,911 |
Undistributed net investment income | | 3,421 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (140,004) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 26,723 |
Net Assets | | $ 646,051 |
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, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($62,826 ÷ 3,727.6 shares) | | $ 16.85 |
| | |
Maximum offering price per share (100/94.25 of $16.85) | | $ 17.88 |
Class T:
Net Asset Value and redemption price per share ($295,518 ÷ 17,103.5 shares) | | $ 17.28 |
| | |
Maximum offering price per share (100/96.50 of $17.28) | | $ 17.91 |
Class B:
Net Asset Value and offering price per share ($3,576 ÷ 217.9 shares)A | | $ 16.41 |
| | |
Class C:
Net Asset Value and offering price per share ($17,351 ÷ 1,046.3 shares)A | | $ 16.58 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($266,780 ÷ 15,529.9 shares) | | $ 17.18 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 8,222 |
Income from Fidelity Central Funds | | 150 |
Income before foreign taxes withheld | | 8,372 |
Less foreign taxes withheld | | (522) |
Total income | | 7,850 |
| | |
Expenses | | |
Management fee
Basic fee | $ 2,325 | |
Performance adjustment | (322) | |
Transfer agent fees | 752 | |
Distribution and service plan fees | 906 | |
Accounting and security lending fees | 164 | |
Custodian fees and expenses | 60 | |
Independent trustees' compensation | 2 | |
Registration fees | 51 | |
Audit | 38 | |
Legal | 2 | |
Interest | - | |
Miscellaneous | 4 | |
Total expenses before reductions | 3,982 | |
Expense reductions | (68) | 3,914 |
Net investment income (loss) | | 3,936 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (19,457) | |
Foreign currency transactions | (24) | |
Total net realized gain (loss) | | (19,481) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 51,387 | |
Assets and liabilities in foreign currencies | (39) | |
Total change in net unrealized appreciation (depreciation) | | 51,348 |
Net gain (loss) | | 31,867 |
Net increase (decrease) in net assets resulting from operations | | $ 35,803 |
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
April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,936 | $ 10,269 |
Net realized gain (loss) | (19,481) | 139,082 |
Change in net unrealized appreciation (depreciation) | 51,348 | (202,787) |
Net increase (decrease) in net assets resulting
from operations | 35,803 | (53,436) |
Distributions to shareholders from net investment income | (10,172) | (12,982) |
Distributions to shareholders from net realized gain | - | (2,756) |
Total distributions | (10,172) | (15,738) |
Share transactions - net increase (decrease) | (115,233) | (342,819) |
Redemption fees | 8 | 20 |
Total increase (decrease) in net assets | (89,594) | (411,973) |
| | |
Net Assets | | |
Beginning of period | 735,645 | 1,147,618 |
End of period (including undistributed net investment income of $3,421 and undistributed net investment income of $9,657, respectively) | $ 646,051 | $ 735,645 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.13 | $ 17.77 | $ 15.68 | $ 13.56 | $ 26.85 | $ 21.67 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .09 | .16 | .17 | .24 | .38 | .31 |
Net realized and unrealized gain (loss) | .87 | (1.54) | 2.16 | 2.12 | (11.56) | 6.16 |
Total from investment operations | .96 | (1.38) | 2.33 | 2.36 | (11.18) | 6.47 |
Distributions from net investment income | (.24) | (.21) | (.21) | (.24) | (.33) | (.23) |
Distributions from net realized gain | - | (.05) | (.03) | - | (1.78) | (1.06) |
Total distributions | (.24) | (.26) | (.24) | (.24) | (2.11) | (1.29) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.85 | $ 16.13 | $ 17.77 | $ 15.68 | $ 13.56 | $ 26.85 |
Total Return B, C, D | 6.08% | (7.95)% | 14.99% | 17.97% | (45.08)% | 31.44% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.26% A | 1.34% | 1.36% | 1.36% | 1.35% | 1.17% |
Expenses net of fee waivers, if any | 1.26% A | 1.34% | 1.36% | 1.36% | 1.35% | 1.17% |
Expenses net of all reductions | 1.24% A | 1.32% | 1.33% | 1.33% | 1.32% | 1.13% |
Net investment income (loss) | 1.15% A | .90% | 1.04% | 1.79% | 1.83% | 1.34% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 63 | $ 60 | $ 70 | $ 72 | $ 73 | $ 147 |
Portfolio turnover rate G | 25% A | 44% | 53% | 83% | 79% | 66% |
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 $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.50 | $ 18.18 | $ 16.03 | $ 13.84 | $ 27.35 | $ 22.05 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .08 | .13 | .14 | .22 | .36 | .28 |
Net realized and unrealized gain (loss) | .90 | (1.59) | 2.23 | 2.17 | (11.82) | 6.27 |
Total from investment operations | .98 | (1.46) | 2.37 | 2.39 | (11.46) | 6.55 |
Distributions from net investment income | (.20) | (.17) | (.19) | (.20) | (.27) | (.19) |
Distributions from net realized gain | - | (.05) | (.03) | - | (1.78) | (1.06) |
Total distributions | (.20) | (.22) | (.22) | (.20) | (2.05) | (1.25) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.28 | $ 16.50 | $ 18.18 | $ 16.03 | $ 13.84 | $ 27.35 |
Total Return B, C, D | 6.05% | (8.17)% | 14.88% | 17.70% | (45.18)% | 31.24% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.44% A | 1.52% | 1.53% | 1.57% | 1.51% | 1.33% |
Expenses net of fee waivers, if any | 1.44% A | 1.51% | 1.53% | 1.57% | 1.51% | 1.33% |
Expenses net of all reductions | 1.42% A | 1.49% | 1.50% | 1.54% | 1.48% | 1.30% |
Net investment income (loss) | .97% A | .73% | .86% | 1.58% | 1.67% | 1.17% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 296 | $ 305 | $ 371 | $ 367 | $ 345 | $ 710 |
Portfolio turnover rate G | 25% A | 44% | 53% | 83% | 79% | 66% |
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 $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.58 | $ 17.18 | $ 15.16 | $ 13.02 | $ 25.79 | $ 20.81 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .03 | .03 | .04 | .13 | .22 | .12 |
Net realized and unrealized gain (loss) | .86 | (1.51) | 2.10 | 2.08 | (11.14) | 5.94 |
Total from investment operations | .89 | (1.48) | 2.14 | 2.21 | (10.92) | 6.06 |
Distributions from net investment income | (.06) | (.08) | (.09) | (.07) | (.07) | (.02) |
Distributions from net realized gain | - | (.05) | (.03) | - | (1.78) | (1.06) |
Total distributions | (.06) | (.12) J | (.12) | (.07) | (1.85) | (1.08) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.41 | $ 15.58 | $ 17.18 | $ 15.16 | $ 13.02 | $ 25.79 |
Total Return B, C, D | 5.75% | (8.67)% | 14.15% | 17.09% | (45.50)% | 30.45% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.01% A | 2.10% | 2.11% | 2.12% | 2.10% | 1.94% |
Expenses net of fee waivers, if any | 2.01% A | 2.09% | 2.11% | 2.12% | 2.10% | 1.94% |
Expenses net of all reductions | 1.99% A | 2.07% | 2.09% | 2.08% | 2.08% | 1.91% |
Net investment income (loss) | .40% A | .15% | .28% | 1.04% | 1.07% | .56% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 4 | $ 4 | $ 7 | $ 8 | $ 10 | $ 27 |
Portfolio turnover rate G | 25% A | 44% | 53% | 83% | 79% | 66% |
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 $.01 per share. J Total distributions of $.12 per share is comprised of distributions from net investment income of $.079 and distributions from net realized gain of $.045 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.78 | $ 17.39 | $ 15.36 | $ 13.22 | $ 26.22 | $ 21.19 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .03 | .03 | .05 | .14 | .22 | .14 |
Net realized and unrealized gain (loss) | .87 | (1.52) | 2.12 | 2.09 | (11.31) | 6.02 |
Total from investment operations | .90 | (1.49) | 2.17 | 2.23 | (11.09) | 6.16 |
Distributions from net investment income | (.10) | (.07) | (.11) | (.09) | (.13) | (.07) |
Distributions from net realized gain | - | (.05) | (.03) | - | (1.78) | (1.06) |
Total distributions | (.10) | (.12) | (.14) | (.09) | (1.91) | (1.13) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.58 | $ 15.78 | $ 17.39 | $ 15.36 | $ 13.22 | $ 26.22 |
Total Return B, C, D | 5.74% | (8.67)% | 14.17% | 17.06% | (45.50)% | 30.48% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.01% A | 2.09% | 2.10% | 2.11% | 2.09% | 1.91% |
Expenses net of fee waivers, if any | 2.01% A | 2.09% | 2.10% | 2.11% | 2.09% | 1.91% |
Expenses net of all reductions | 1.99% A | 2.07% | 2.08% | 2.08% | 2.07% | 1.87% |
Net investment income (loss) | .40% A | .15% | .29% | 1.05% | 1.08% | .60% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 17 | $ 19 | $ 22 | $ 23 | $ 22 | $ 46 |
Portfolio turnover rate G | 25% A | 44% | 53% | 83% | 79% | 66% |
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 $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.45 | $ 18.10 | $ 15.95 | $ 13.83 | $ 27.35 | $ 22.06 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .12 | .23 | .22 | .29 | .45 | .40 |
Net realized and unrealized gain (loss) | .89 | (1.59) | 2.23 | 2.14 | (11.78) | 6.26 |
Total from investment operations | 1.01 | (1.36) | 2.45 | 2.43 | (11.33) | 6.66 |
Distributions from net investment income | (.28) | (.24) | (.27) | (.31) | (.41) | (.31) |
Distributions from net realized gain | - | (.05) | (.03) | - | (1.78) | (1.06) |
Total distributions | (.28) | (.29) | (.30) | (.31) | (2.19) | (1.37) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 17.18 | $ 16.45 | $ 18.10 | $ 15.95 | $ 13.83 | $ 27.35 |
Total Return B, C | 6.34% | (7.70)% | 15.49% | 18.32% | (44.92)% | 31.88% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .91% A | 1.00% | 1.01% | 1.06% | 1.01% | .84% |
Expenses net of fee waivers, if any | .91% A | .99% | 1.01% | 1.06% | 1.01% | .84% |
Expenses net of all reductions | .89% A | .97% | .98% | 1.02% | .98% | .81% |
Net investment income (loss) | 1.50% A | 1.25% | 1.39% | 2.10% | 2.17% | 1.66% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 267 | $ 349 | $ 678 | $ 727 | $ 551 | $ 609 |
Portfolio turnover rate F | 25% A | 44% | 53% | 83% | 79% | 66% |
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 $.01 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, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Overseas Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) 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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant 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 are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are 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 each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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 rate 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
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. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), 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 | $ 100,380 |
Gross unrealized depreciation | (87,524) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 12,856 |
| |
Tax cost | $ 678,133 |
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. At October 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (104,924) |
Total capital loss carryforward | $ (104,924) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value 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.
4. Operating Policies.
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
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $83,221 and $202,252, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .61% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 75 | $ 2 |
Class T | .25% | .25% | 725 | 12 |
Class B | .75% | .25% | 19 | 15 |
Class C | .75% | .25% | 87 | 5 |
| | | $ 906 | $ 34 |
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, 1.00% for
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
Class C, 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
by FDC |
Class A | $ 3 |
Class T | 3 |
Class B* | 3 |
Class C* | 1 |
| $ 10 |
* 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 FMR, 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
Average
Net Assets* |
Class A | $ 90 | .30 |
Class T | 334 | .23 |
Class B | 6 | .30 |
Class C | 26 | .30 |
Institutional Class | 296 | .21 |
| $ 752 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. 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. The commissions paid to these affiliated firms were one hundred thirty-six dollars for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan
Balance | Weighted Average
Interest Rate | Interest Expense |
Borrower | $ 9,917 | .32% | $ -* |
* Amount represents one hundred seventy-eight dollars.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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
Semiannual Report
8. Security Lending - continued
Liabilities. At period end, there were no security loans outstanding with FCM. 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 $147. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $68 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
From net investment income | | |
Class A | $ 862 | $ 829 |
Class T | 3,589 | 3,501 |
Class B | 16 | 30 |
Class C | 112 | 89 |
Institutional Class | 5,593 | 8,533 |
Total | $ 10,172 | $ 12,982 |
From net realized gain | | |
Class A | $ - | $ 178 |
Class T | - | 911 |
Class B | - | 17 |
Class C | - | 57 |
Institutional Class | - | 1,593 |
Total | $ - | $ 2,756 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2012 | Year ended
October 31,
2011 | Six months ended
April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 401 | 644 | $ 6,269 | $ 11,749 |
Reinvestment of distributions | 52 | 51 | 791 | 919 |
Shares redeemed | (424) | (937) | (6,710) | (16,834) |
Net increase (decrease) | 29 | (242) | $ 350 | $ (4,166) |
Class T | | | | |
Shares sold | 1,555 | 3,310 | $ 25,422 | $ 61,021 |
Reinvestment of distributions | 223 | 232 | 3,491 | 4,288 |
Shares redeemed | (3,127) | (5,489) | (50,717) | (101,187) |
Net increase (decrease) | (1,349) | (1,947) | $ (21,804) | $ (35,878) |
Class B | | | | |
Shares sold | 2 | 12 | $ 27 | $ 219 |
Reinvestment of distributions | 1 | 2 | 14 | 41 |
Shares redeemed | (52) | (144) | (812) | (2,540) |
Net increase (decrease) | (49) | (130) | $ (771) | $ (2,280) |
Class C | | | | |
Shares sold | 51 | 165 | $ 788 | $ 2,956 |
Reinvestment of distributions | 6 | 7 | 94 | 125 |
Shares redeemed | (199) | (271) | (3,110) | (4,750) |
Net increase (decrease) | (142) | (99) | $ (2,228) | $ (1,669) |
Institutional Class | | | | |
Shares sold | 1,433 | 2,965 | $ 22,481 | $ 53,805 |
Reinvestment of distributions | 353 | 544 | 5,475 | 9,988 |
Shares redeemed | (7,440) | (19,770) | (118,736) | (362,619) |
Net increase (decrease) | (5,654) | (16,261) | $ (90,780) | $ (298,826) |
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.
At the end of the period, Strategic Advisers International II Fund was the owner of record of 16% 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
(Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
FIL Investment Advisors (UK) Limited
FIL Investments (Japan) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OSI-USAN-0612
1.784904.109
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value Leaders
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011
to April 30, 2012 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 1,086.80 | $ 6.49 |
HypotheticalA | | $ 1,000.00 | $ 1,018.65 | $ 6.27 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 1,085.60 | $ 7.78 |
HypotheticalA | | $ 1,000.00 | $ 1,017.40 | $ 7.52 |
Class B | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,082.20 | $ 10.35 |
HypotheticalA | | $ 1,000.00 | $ 1,014.92 | $ 10.02 |
Class C | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,082.90 | $ 10.36 |
HypotheticalA | | $ 1,000.00 | $ 1,014.92 | $ 10.02 |
Institutional Class | .98% | | | |
Actual | | $ 1,000.00 | $ 1,087.80 | $ 5.09 |
HypotheticalA | | $ 1,000.00 | $ 1,019.99 | $ 4.92 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Pfizer, Inc. | 4.6 | 4.2 |
Citigroup, Inc. | 3.6 | 4.7 |
Merck & Co., Inc. | 3.4 | 3.3 |
Chevron Corp. | 3.2 | 3.0 |
General Electric Co. | 3.0 | 3.3 |
JCPenney Co., Inc. | 3.0 | 2.2 |
Johnson & Johnson | 2.8 | 3.8 |
Grupo Modelo SAB de CV Series C | 2.6 | 5.0 |
Hewlett-Packard Co. | 2.5 | 0.0 |
Wells Fargo & Co. | 2.5 | 2.2 |
| 31.2 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 26.7 | 22.9 |
Health Care | 15.9 | 14.8 |
Energy | 11.5 | 11.4 |
Information Technology | 11.4 | 11.0 |
Consumer Staples | 9.5 | 11.8 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012* | As of October 31, 2011** |
| Stocks 96.9% | | | Stocks 95.0% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 3.1% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 5.0% | |
* Foreign investments | 11.4% | | ** Foreign investments | 24.6% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 6.5% |
Household Durables - 1.7% |
Garmin Ltd. | 10,199 | | $ 480,679 |
Media - 1.6% |
Time Warner, Inc. | 4,264 | | 159,729 |
Washington Post Co. Class B (d) | 766 | | 289,678 |
| | 449,407 |
Multiline Retail - 3.2% |
JCPenney Co., Inc. (d) | 23,562 | | 849,646 |
Target Corp. | 1,296 | | 75,090 |
| | 924,736 |
TOTAL CONSUMER DISCRETIONARY | | 1,854,822 |
CONSUMER STAPLES - 9.5% |
Beverages - 2.6% |
Grupo Modelo SAB de CV Series C | 105,300 | | 743,506 |
Food & Staples Retailing - 2.6% |
CVS Caremark Corp. | 1,610 | | 71,838 |
Wal-Mart Stores, Inc. | 6,350 | | 374,079 |
Walgreen Co. | 8,506 | | 298,220 |
| | 744,137 |
Food Products - 1.9% |
Kraft Foods, Inc. Class A | 13,614 | | 542,790 |
Household Products - 2.4% |
Procter & Gamble Co. | 10,795 | | 686,994 |
TOTAL CONSUMER STAPLES | | 2,717,427 |
ENERGY - 11.5% |
Energy Equipment & Services - 1.1% |
Cameron International Corp. (a) | 6,151 | | 315,239 |
Oil, Gas & Consumable Fuels - 10.4% |
Alpha Natural Resources, Inc. (a) | 9,300 | | 150,009 |
Anadarko Petroleum Corp. | 4,667 | | 341,671 |
Apache Corp. | 1,100 | | 105,534 |
Chevron Corp. | 8,415 | | 896,702 |
Exxon Mobil Corp. | 7,348 | | 634,426 |
Marathon Petroleum Corp. | 1,399 | | 58,212 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Occidental Petroleum Corp. | 5,680 | | $ 518,130 |
Williams Companies, Inc. | 7,400 | | 251,822 |
| | 2,956,506 |
TOTAL ENERGY | | 3,271,745 |
FINANCIALS - 26.7% |
Capital Markets - 4.8% |
Ameriprise Financial, Inc. | 1,200 | | 65,052 |
Bank of New York Mellon Corp. | 8,600 | | 203,390 |
E*TRADE Financial Corp. (a) | 46,563 | | 494,965 |
Goldman Sachs Group, Inc. | 1,504 | | 173,186 |
Lazard Ltd. Class A | 2,303 | | 63,356 |
Morgan Stanley | 5,999 | | 103,663 |
State Street Corp. | 5,750 | | 265,765 |
| | 1,369,377 |
Commercial Banks - 8.3% |
Aozora Bank Ltd. | 200,000 | | 512,989 |
Fifth Third Bancorp | 15,705 | | 223,482 |
KeyCorp | 54,400 | | 437,376 |
U.S. Bancorp | 9,070 | | 291,782 |
Wells Fargo & Co. | 21,526 | | 719,614 |
Zions Bancorporation | 9,498 | | 193,664 |
| | 2,378,907 |
Consumer Finance - 0.7% |
Capital One Financial Corp. | 3,500 | | 194,180 |
Diversified Financial Services - 6.8% |
Bank of America Corp. | 25,655 | | 208,062 |
Citigroup, Inc. | 30,946 | | 1,022,456 |
JPMorgan Chase & Co. | 16,225 | | 697,351 |
| | 1,927,869 |
Insurance - 5.0% |
Allstate Corp. | 2,400 | | 79,992 |
Assurant, Inc. | 2,300 | | 92,782 |
Berkshire Hathaway, Inc. Class B (a) | 2,289 | | 184,150 |
MetLife, Inc. | 6,088 | | 219,351 |
RenaissanceRe Holdings Ltd. | 2,019 | | 157,603 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Insurance - continued |
The Chubb Corp. | 4,636 | | $ 338,753 |
XL Group PLC Class A | 16,939 | | 364,358 |
| | 1,436,989 |
Real Estate Investment Trusts - 0.6% |
Weyerhaeuser Co. | 9,100 | | 185,276 |
Thrifts & Mortgage Finance - 0.5% |
Radian Group, Inc. (d) | 43,400 | | 135,408 |
TOTAL FINANCIALS | | 7,628,006 |
HEALTH CARE - 15.9% |
Biotechnology - 0.9% |
Amgen, Inc. | 3,700 | | 263,107 |
Health Care Equipment & Supplies - 0.6% |
CareFusion Corp. (a) | 6,300 | | 163,233 |
Health Care Providers & Services - 0.5% |
Omnicare, Inc. | 4,500 | | 156,780 |
Pharmaceuticals - 13.9% |
Eli Lilly & Co. | 5,329 | | 220,567 |
Johnson & Johnson | 12,511 | | 814,341 |
Merck & Co., Inc. | 24,641 | | 966,913 |
Pfizer, Inc. | 57,301 | | 1,313,910 |
Sanofi SA sponsored ADR (d) | 17,125 | | 653,833 |
| | 3,969,564 |
TOTAL HEALTH CARE | | 4,552,684 |
INDUSTRIALS - 5.9% |
Aerospace & Defense - 1.3% |
Textron, Inc. | 14,473 | | 385,561 |
Construction & Engineering - 0.6% |
Jacobs Engineering Group, Inc. (a) | 3,600 | | 157,788 |
Industrial Conglomerates - 3.0% |
General Electric Co. | 43,546 | | 852,631 |
Machinery - 1.0% |
Fiat Industrial SpA | 24,671 | | 279,892 |
TOTAL INDUSTRIALS | | 1,675,872 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - 11.4% |
Communications Equipment - 3.6% |
Cisco Systems, Inc. | 23,022 | | $ 463,893 |
Comverse Technology, Inc. (a) | 89,300 | | 575,985 |
| | 1,039,878 |
Computers & Peripherals - 2.5% |
Hewlett-Packard Co. | 29,099 | | 720,491 |
Electronic Equipment & Components - 1.6% |
Corning, Inc. | 31,804 | | 456,387 |
Office Electronics - 1.1% |
Xerox Corp. | 38,297 | | 297,951 |
Semiconductors & Semiconductor Equipment - 2.1% |
Advanced Micro Devices, Inc. (a) | 79,490 | | 585,046 |
Software - 0.5% |
Microsoft Corp. | 4,710 | | 150,814 |
TOTAL INFORMATION TECHNOLOGY | | 3,250,567 |
MATERIALS - 1.3% |
Metals & Mining - 1.3% |
Newmont Mining Corp. | 8,084 | | 385,203 |
TELECOMMUNICATION SERVICES - 2.9% |
Diversified Telecommunication Services - 2.9% |
AT&T, Inc. | 10,950 | | 360,365 |
CenturyLink, Inc. | 2,745 | | 105,847 |
Verizon Communications, Inc. | 9,085 | | 366,852 |
| | 833,064 |
UTILITIES - 5.3% |
Electric Utilities - 4.4% |
Edison International | 900 | | 39,609 |
Exelon Corp. | 11,433 | | 446,001 |
FirstEnergy Corp. | 8,034 | | 376,152 |
NextEra Energy, Inc. | 6,196 | | 398,713 |
| | 1,260,475 |
Multi-Utilities - 0.9% |
Sempra Energy | 3,700 | | 239,538 |
TOTAL UTILITIES | | 1,500,013 |
TOTAL COMMON STOCKS (Cost $27,819,221) |
27,669,403
|
U.S. Treasury Obligations - 0.2% |
| Principal Amount | | Value |
U.S. Treasury Bills, yield at date of purchase 0.08% 7/5/12
(Cost $49,993) | | $ 50,000 | | $ 49,993 |
Money Market Funds - 9.1% |
| Shares | | |
Fidelity Cash Central Fund, 0.14% (b) | 762,577 | | 762,577 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 1,833,744 | | 1,833,744 |
TOTAL MONEY MARKET FUNDS (Cost $2,596,321) |
2,596,321
|
TOTAL INVESTMENT PORTFOLIO - 106.2% (Cost $30,465,535) | | 30,315,717 |
NET OTHER ASSETS (LIABILITIES) - (6.2)% | | (1,774,218) |
NET ASSETS - 100% | $ 28,541,499 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
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 | $ 867 |
Fidelity Securities Lending Cash Central Fund | 4,759 |
Total | $ 5,626 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2012, 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 Security 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 | $ 1,854,822 | $ 1,854,822 | $ - | $ - |
Consumer Staples | 2,717,427 | 2,717,427 | - | - |
Energy | 3,271,745 | 3,271,745 | - | - |
Financials | 7,628,006 | 7,115,017 | 512,989 | - |
Health Care | 4,552,684 | 4,552,684 | - | - |
Industrials | 1,675,872 | 1,675,872 | - | - |
Information Technology | 3,250,567 | 3,250,567 | - | - |
Materials | 385,203 | 385,203 | - | - |
Telecommunication Services | 833,064 | 833,064 | - | - |
Utilities | 1,500,013 | 1,500,013 | - | - |
U.S. Government and Government Agency Obligations | 49,993 | - | 49,993 | - |
Money Market Funds | 2,596,321 | 2,596,321 | - | - |
Total Investments in Securities: | $ 30,315,717 | $ 29,752,735 | $ 562,982 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 88.6% |
Mexico | 2.6% |
France | 2.3% |
Japan | 1.8% |
Switzerland | 1.7% |
Ireland | 1.3% |
Italy | 1.0% |
Others (Individually Less Than 1%) | 0.7% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,750,324) - See accompanying schedule: Unaffiliated issuers (cost $27,869,214) | $ 27,719,396 | |
Fidelity Central Funds (cost $2,596,321) | 2,596,321 | |
Total Investments (cost $30,465,535) | | $ 30,315,717 |
Cash | | 3,485 |
Foreign currency held at value (cost $35,217) | | 35,217 |
Receivable for investments sold | | 550,409 |
Receivable for fund shares sold | | 17,977 |
Dividends receivable | | 42,832 |
Distributions receivable from Fidelity Central Funds | | 975 |
Prepaid expenses | | 23 |
Receivable from investment adviser for expense reductions | | 1,481 |
Other receivables | | 1,368 |
Total assets | | 30,969,484 |
| | |
Liabilities | | |
Payable for investments purchased | $ 490,292 | |
Payable for fund shares redeemed | 50,181 | |
Accrued management fee | 5,532 | |
Distribution and service plan fees payable | 10,438 | |
Other affiliated payables | 8,291 | |
Other payables and accrued expenses | 29,507 | |
Collateral on securities loaned, at value | 1,833,744 | |
Total liabilities | | 2,427,985 |
| | |
Net Assets | | $ 28,541,499 |
Net Assets consist of: | | |
Paid in capital | | $ 64,370,339 |
Undistributed net investment income | | 68,724 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (35,748,742) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (148,822) |
Net Assets | | $ 28,541,499 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($15,888,691 ÷ 1,486,777 shares) | | $ 10.69 |
| | |
Maximum offering price per share (100/94.25 of $10.69) | | $ 11.34 |
Class T:
Net Asset Value and redemption price per share ($7,619,087 ÷ 711,572 shares) | | $ 10.71 |
| | |
Maximum offering price per share (100/96.50 of $10.71) | | $ 11.10 |
Class B:
Net Asset Value and offering price per share ($1,023,097 ÷ 96,387 shares)A | | $ 10.61 |
| | |
Class C:
Net Asset Value and offering price per share ($3,671,326 ÷ 349,613 shares)A | | $ 10.50 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($339,298 ÷ 31,588 shares) | | $ 10.74 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 358,381 |
Interest | | 6 |
Income from Fidelity Central Funds | | 5,626 |
Total income | | 364,013 |
| | |
Expenses | | |
Management fee
Basic fee | $ 79,617 | |
Performance adjustment | (45,984) | |
Transfer agent fees | 43,342 | |
Distribution and service plan fees | 62,781 | |
Accounting and security lending fees | 5,772 | |
Custodian fees and expenses | 10,411 | |
Independent trustees' compensation | 87 | |
Registration fees | 26,557 | |
Audit | 27,276 | |
Legal | 122 | |
Miscellaneous | 126 | |
Total expenses before reductions | 210,107 | |
Expense reductions | (6,114) | 203,993 |
Net investment income (loss) | | 160,020 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (803,860) | |
Foreign currency transactions | (2,266) | |
Futures contracts | (6,741) | |
Total net realized gain (loss) | | (812,867) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,982,962 | |
Assets and liabilities in foreign currencies | 792 | |
Total change in net unrealized appreciation (depreciation) | | 2,983,754 |
Net gain (loss) | | 2,170,887 |
Net increase (decrease) in net assets resulting from operations | | $ 2,330,907 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 160,020 | $ 290,432 |
Net realized gain (loss) | (812,867) | 720,203 |
Change in net unrealized appreciation (depreciation) | 2,983,754 | (343,386) |
Net increase (decrease) in net assets resulting
from operations | 2,330,907 | 667,249 |
Distributions to shareholders from net investment income | (279,421) | (358,603) |
Distributions to shareholders from net realized gain | (11,550) | (41,497) |
Total distributions | (290,971) | (400,100) |
Share transactions - net increase (decrease) | (2,645,076) | (15,871,835) |
Total increase (decrease) in net assets | (605,140) | (15,604,686) |
| | |
Net Assets | | |
Beginning of period | 29,146,639 | 44,751,325 |
End of period (including undistributed net investment income of $68,724 and undistributed net investment income of $188,125, respectively) | $ 28,541,499 | $ 29,146,639 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.96 | $ 10.12 | $ 9.30 | $ 8.63 | $ 16.40 | $ 15.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .07 | .10 | .07H | .09 | .16 | .13 |
Net realized and unrealized gain (loss) | .78 | (.14)I | .85 | .75 | (7.09) | 1.99 |
Total from investment operations | .85 | (.04) | .92 | .84 | (6.93) | 2.12 |
Distributions from net investment income | (.12) | (.11) | (.09) | (.17) | (.12) | (.09) |
Distributions from net realized gain | -K | (.01) | (.01) | - | (.72) | (.71) |
Total distributions | (.12) | (.12) | (.10) | (.17) | (.84)L | (.80) |
Net asset value, end of period | $ 10.69 | $ 9.96 | $ 10.12 | $ 9.30 | $ 8.63 | $ 16.40 |
Total ReturnB,C,D | 8.68% | (.40)% | 9.91% | 10.13% | (44.43)% | 14.64% |
Ratios to Average Net AssetsF,J | | | | | |
Expenses before reductions | 1.28%A | 1.24% | 1.22% | 1.25% | 1.26% | 1.28% |
Expenses net of fee waivers, if any | 1.25%A | 1.24% | 1.22% | 1.25% | 1.25% | 1.25% |
Expenses net of all
reductions | 1.24%A | 1.23% | 1.21% | 1.25% | 1.25% | 1.24% |
Net investment income (loss) | 1.31%A | .91% | .75%H | 1.10% | 1.21% | .85% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 15,889 | $ 15,484 | $ 25,431 | $ 28,585 | $ 34,864 | $ 67,434 |
Portfolio turnover rateG | 88%A | 161% | 51% | 56% | 74% | 76% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .57%.
I The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
L Total distributions of $.839 per share is comprised of distributions from net investment income of $.117 and distributions from net realized gain of $.722 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.96 | $ 10.08 | $ 9.27 | $ 8.58 | $ 16.30 | $ 14.99 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .05 | .07 | .05H | .07 | .13 | .09 |
Net realized and unrealized gain (loss) | .79 | (.13)I | .84 | .75 | (7.06) | 1.97 |
Total from investment operations | .84 | (.06) | .89 | .82 | (6.93) | 2.06 |
Distributions from net investment income | (.09) | (.05) | (.07) | (.13) | (.07) | (.04) |
Distributions from net realized gain | -K | (.01) | (.01) | - | (.72) | (.71) |
Total distributions | (.09) | (.06) | (.08) | (.13) | (.79)L | (.75) |
Net asset value, end of period | $ 10.71 | $ 9.96 | $ 10.08 | $ 9.27 | $ 8.58 | $ 16.30 |
Total ReturnB,C,D | 8.56% | (.64)% | 9.62% | 9.90% | (44.57)% | 14.31% |
Ratios to Average Net AssetsF,J | | | | | |
Expenses before reductions | 1.54%A | 1.49% | 1.45% | 1.50% | 1.49% | 1.53% |
Expenses net of fee waivers, if any | 1.50%A | 1.49% | 1.45% | 1.50% | 1.49% | 1.50% |
Expenses net of all
reductions | 1.49%A | 1.48% | 1.45% | 1.49% | 1.49% | 1.49% |
Net investment income (loss) | 1.06%A | .67% | .52%H | .85% | .97% | .60% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,619 | $ 8,254 | $ 12,735 | $ 20,652 | $ 22,720 | $ 50,998 |
Portfolio turnover rateG | 88%A | 161% | 51% | 56% | 74% | 76% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .33%.
I The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
L Total distributions of $.790 per share is comprised of distributions from net investment income of $.068 and distributions from net realized gain of $.722 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.84 | $ 9.99 | $ 9.18 | $ 8.47 | $ 16.07 | $ 14.81 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .03 | .02 | -H,K | .03 | .06 | .01 |
Net realized and unrealized gain (loss) | .78 | (.13)I | .84 | .74 | (6.96) | 1.95 |
Total from investment operations | .81 | (.11) | .84 | .77 | (6.90) | 1.96 |
Distributions from net investment income | (.03) | (.03) | (.02) | (.06) | - | - |
Distributions from net realized gain | -K | (.01) | (.01) | - | (.70) | (.70) |
Total distributions | (.04)M | (.04) | (.03) | (.06) | (.70)L | (.70) |
Net asset value, end of period | $ 10.61 | $ 9.84 | $ 9.99 | $ 9.18 | $ 8.47 | $ 16.07 |
Total ReturnB,C,D | 8.22% | (1.14)% | 9.11% | 9.19% | (44.80)% | 13.74% |
Ratios to Average Net AssetsF,J | | | | | |
Expenses before reductions | 2.03%A | 1.99% | 1.97% | 2.00% | 2.03% | 2.10% |
Expenses net of fee waivers, if any | 2.00%A | 1.99% | 1.97% | 2.00% | 2.00% | 2.00% |
Expenses net of all
reductions | 1.99%A | 1.98% | 1.97% | 2.00% | 2.00% | 1.99% |
Net investment income (loss) | .56%A | .16% | (.01)%H | .35% | .45% | .10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,023 | $ 1,110 | $ 1,605 | $ 1,989 | $ 2,615 | $ 6,734 |
Portfolio turnover rateG | 88%A | 161% | 51% | 56% | 74% | 76% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.19)%.
I The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
L Total distributions of $.698 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.698 per share.
M Total distributions of $.035 per share is comprised of distributions from net investment income of $.031 and distributions from net realized gain of $.004 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.75 | $ 9.92 | $ 9.11 | $ 8.44 | $ 16.04 | $ 14.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .03 | .02 | -I, L | .03 | .06 | .02 |
Net realized and unrealized gain (loss) | .77 | (.13)J | .83 | .73 | (6.95) | 1.93 |
Total from investment operations | .80 | (.11) | .83 | .76 | (6.89) | 1.95 |
Distributions from net investment income | (.05) | (.05) | (.02) | (.09) | - | - |
Distributions from net realized gain | -L | (.01) | (.01) | - | (.71) | (.71) |
Total distributions | (.05) | (.06) | (.02)N | (.09) | (.71)M | (.71) |
Net asset value, end of period | $ 10.50 | $ 9.75 | $ 9.92 | $ 9.11 | $ 8.44 | $ 16.04 |
Total ReturnB,C,D | 8.29% | (1.18)% | 9.12% | 9.28% | (44.84)% | 13.69% |
Ratios to Average Net AssetsF,K | | | | | |
Expenses before reductions | 2.03%A | 2.00% | 1.97% | 2.01% | 2.03% | 2.09% |
Expenses net of fee waivers, if any | 2.00%A | 2.00% | 1.97% | 2.00% | 2.00% | 2.00% |
Expenses net of all
reductions | 1.99%A | 1.98% | 1.97% | 2.00% | 2.00% | 1.99% |
Net investment income (loss) | .56%A | .16% | -%H,I | .35% | .45% | .10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,671 | $ 3,775 | $ 4,139 | $ 4,088 | $ 5,358 | $ 9,718 |
Portfolio turnover rateG | 88%A | 161% | 51% | 56% | 74% | 76% |
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 Amount represents less than .01%.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.19)%.
J The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
L Amount represents less than $.01 per share.
M Total distributions of $.712 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.712 per share.
N Total distributions of $.02 per share is comprised of distributions from net investment income of $.015 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 - Institutional Class
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.04 | $ 10.19 | $ 9.35 | $ 8.70 | $ 16.51 | $ 15.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .08 | .14 | .10G | .11 | .20 | .17 |
Net realized and unrealized gain (loss) | .78 | (.15)H | .86 | .74 | (7.13) | 1.99 |
Total from investment operations | .86 | (.01) | .96 | .85 | (6.93) | 2.16 |
Distributions from net investment income | (.16) | (.13) | (.11) | (.20) | (.15) | (.11) |
Distributions from net realized gain | -J | (.01) | (.01) | - | (.72) | (.71) |
Total distributions | (.16) | (.14) | (.12) | (.20) | (.88)K | (.82) |
Net asset value, end of period | $ 10.74 | $ 10.04 | $ 10.19 | $ 9.35 | $ 8.70 | $ 16.51 |
Total ReturnB,C | 8.78% | (.11)% | 10.28% | 10.26% | (44.24)% | 14.89% |
Ratios to Average Net AssetsE,I | | | | | |
Expenses before
reductions | .98%A | .89% | .98% | 1.00% | .98% | 1.00% |
Expenses net of fee waivers, if any | .98%A | .89% | .98% | 1.00% | .98% | 1.00% |
Expenses net of all
reductions | .97%A | .88% | .97% | 1.00% | .97% | .99% |
Net investment income (loss) | 1.58%A | 1.27% | .99%G | 1.35% | 1.48% | 1.10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 339 | $ 523 | $ 841 | $ 2,341 | $ 2,021 | $ 6,833 |
Portfolio turnover rateF | 88%A | 161% | 51% | 56% | 74% | 76% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .81%.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
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.
K Total distributions of $.876 per share is comprised of distributions from net investment income of $.154 and distributions from net realized gain of $.722 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor® Value Leaders Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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 distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company(FMR)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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security 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 value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant 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 are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
observable inputs are limited, assumptions about market activity and risk are used and these securities are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. 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. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, 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 | $ 1,944,368 |
Gross unrealized depreciation | (2,780,969) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (836,601) |
| |
Tax cost | $ 31,152,318 |
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. At October 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2016 | $ (19,194,347) |
2017 | (14,819,668) |
2019 | (169,201) |
Total capital loss carryforward | $ (34,183,216) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund primarily used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets 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 is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent 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 is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is included in the Statement of Operations.
The underlying face amount at value of open futures contracts at period end, if any, is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
During the period the Fund recognized net realized gain (loss) of $(6,741) related to its investment in futures contracts. This amounts is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $11,941,601 and $14,126,025, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .24% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | - % | .25% | $ 19,525 | $ 272 |
Class T | .25% | .25% | 19,162 | 173 |
Class B | .75% | .25% | 5,295 | 3,986 |
Class C | .75% | .25% | 18,799 | 1,599 |
| | | $ 62,781 | $ 6,030 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
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, 1.00% for Class C, 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
by FDC |
Class A | $ 1,222 |
Class T | 898 |
Class B* | 986 |
Class C* | 203 |
| $ 3,309 |
* 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 FMR, 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
Average
Net Assets* |
Class A | $ 23,550 | .30 |
Class T | 11,897 | .31 |
Class B | 1,600 | .30 |
Class C | 5,744 | .31 |
Institutional Class | 551 | .25 |
| $ 43,342 | |
* Annualized
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $622 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $43 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 $4,759. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions.
FMR 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
Limitations | Reimbursement
from adviser |
Class A | 1.25% | $ 2,294 |
Class T | 1.50% | 1,502 |
Class B | 2.00% | 158 |
Class C | 2.00% | 682 |
| | $ 4,636 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,469 for the period. 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
April 30, 2012 | Year ended
October 31, 2011 |
From net investment income | | |
Class A | $ 180,927 | $ 274,577 |
Class T | 68,454 | 50,441 |
Class B | 3,401 | 4,151 |
Class C | 18,732 | 18,471 |
Institutional Class | 7,907 | 10,963 |
Total | $ 279,421 | $ 358,603 |
From net realized gain | | |
Class A | $ 6,239 | $ 24,299 |
Class T | 3,111 | 10,732 |
Class B | 439 | 1,537 |
Class C | 1,561 | 4,105 |
Institutional Class | 200 | 824 |
Total | $ 11,550 | $ 41,497 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2012 | Year ended
October 31,
2011 | Six months ended April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 156,600 | 334,576 | $ 1,572,737 | $ 3,612,152 |
Reinvestment of distributions | 18,760 | 28,074 | 179,532 | 288,043 |
Shares redeemed | (243,790) | (1,320,166) | (2,462,163) | (14,109,969) |
Net increase (decrease) | (68,430) | (957,516) | $ (709,894) | $ (10,209,774) |
Class T | | | | |
Shares sold | 31,580 | 157,819 | $ 324,836 | $ 1,706,564 |
Reinvestment of distributions | 7,282 | 5,816 | 69,834 | 59,851 |
Shares redeemed | (156,094) | (597,712) | (1,568,922) | (6,300,709) |
Net increase (decrease) | (117,232) | (434,077) | $ (1,174,252) | $ (4,534,294) |
Class B | | | | |
Shares sold | 26 | 248 | $ 248 | $ 2,692 |
Reinvestment of distributions | 355 | 507 | 3,383 | 5,175 |
Shares redeemed | (16,821) | (48,512) | (168,279) | (509,116) |
Net increase (decrease) | (16,440) | (47,757) | $ (164,648) | $ (501,249) |
Class C | | | | |
Shares sold | 23,625 | 69,631 | $ 232,996 | $ 733,867 |
Reinvestment of distributions | 1,986 | 2,055 | 18,732 | 20,799 |
Shares redeemed | (63,124) | (101,679) | (635,197) | (1,050,311) |
Net increase (decrease) | (37,513) | (29,993) | $ (383,469) | $ (295,645) |
Institutional Class | | | | |
Shares sold | 6,597 | 74,917 | $ 68,969 | $ 747,771 |
Reinvestment of distributions | 750 | 1,083 | 7,203 | 11,162 |
Shares redeemed | (27,908) | (106,405) | (288,985) | (1,089,806) |
Net increase (decrease) | (20,561) | (30,405) | $ (212,813) | $ (330,873) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Company
Boston, MA
AVLF-USAN-0612
1.800655.108
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value Leaders
Fund - Institutional Class
Semiannual Report
April 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | 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.
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, 2011 to April 30, 2012).
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
Expense Ratio | Beginning
Account Value
November 1, 2011 | Ending
Account Value
April 30, 2012 | Expenses Paid
During Period*
November 1, 2011
to April 30, 2012 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 1,086.80 | $ 6.49 |
HypotheticalA | | $ 1,000.00 | $ 1,018.65 | $ 6.27 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 1,085.60 | $ 7.78 |
HypotheticalA | | $ 1,000.00 | $ 1,017.40 | $ 7.52 |
Class B | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,082.20 | $ 10.35 |
HypotheticalA | | $ 1,000.00 | $ 1,014.92 | $ 10.02 |
Class C | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,082.90 | $ 10.36 |
HypotheticalA | | $ 1,000.00 | $ 1,014.92 | $ 10.02 |
Institutional Class | .98% | | | |
Actual | | $ 1,000.00 | $ 1,087.80 | $ 5.09 |
HypotheticalA | | $ 1,000.00 | $ 1,019.99 | $ 4.92 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Pfizer, Inc. | 4.6 | 4.2 |
Citigroup, Inc. | 3.6 | 4.7 |
Merck & Co., Inc. | 3.4 | 3.3 |
Chevron Corp. | 3.2 | 3.0 |
General Electric Co. | 3.0 | 3.3 |
JCPenney Co., Inc. | 3.0 | 2.2 |
Johnson & Johnson | 2.8 | 3.8 |
Grupo Modelo SAB de CV Series C | 2.6 | 5.0 |
Hewlett-Packard Co. | 2.5 | 0.0 |
Wells Fargo & Co. | 2.5 | 2.2 |
| 31.2 | |
Top Five Market Sectors as of April 30, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 26.7 | 22.9 |
Health Care | 15.9 | 14.8 |
Energy | 11.5 | 11.4 |
Information Technology | 11.4 | 11.0 |
Consumer Staples | 9.5 | 11.8 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2012* | As of October 31, 2011** |
| Stocks 96.9% | | | Stocks 95.0% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 3.1% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 5.0% | |
* Foreign investments | 11.4% | | ** Foreign investments | 24.6% | |
Semiannual Report
Investments April 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 6.5% |
Household Durables - 1.7% |
Garmin Ltd. | 10,199 | | $ 480,679 |
Media - 1.6% |
Time Warner, Inc. | 4,264 | | 159,729 |
Washington Post Co. Class B (d) | 766 | | 289,678 |
| | 449,407 |
Multiline Retail - 3.2% |
JCPenney Co., Inc. (d) | 23,562 | | 849,646 |
Target Corp. | 1,296 | | 75,090 |
| | 924,736 |
TOTAL CONSUMER DISCRETIONARY | | 1,854,822 |
CONSUMER STAPLES - 9.5% |
Beverages - 2.6% |
Grupo Modelo SAB de CV Series C | 105,300 | | 743,506 |
Food & Staples Retailing - 2.6% |
CVS Caremark Corp. | 1,610 | | 71,838 |
Wal-Mart Stores, Inc. | 6,350 | | 374,079 |
Walgreen Co. | 8,506 | | 298,220 |
| | 744,137 |
Food Products - 1.9% |
Kraft Foods, Inc. Class A | 13,614 | | 542,790 |
Household Products - 2.4% |
Procter & Gamble Co. | 10,795 | | 686,994 |
TOTAL CONSUMER STAPLES | | 2,717,427 |
ENERGY - 11.5% |
Energy Equipment & Services - 1.1% |
Cameron International Corp. (a) | 6,151 | | 315,239 |
Oil, Gas & Consumable Fuels - 10.4% |
Alpha Natural Resources, Inc. (a) | 9,300 | | 150,009 |
Anadarko Petroleum Corp. | 4,667 | | 341,671 |
Apache Corp. | 1,100 | | 105,534 |
Chevron Corp. | 8,415 | | 896,702 |
Exxon Mobil Corp. | 7,348 | | 634,426 |
Marathon Petroleum Corp. | 1,399 | | 58,212 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Occidental Petroleum Corp. | 5,680 | | $ 518,130 |
Williams Companies, Inc. | 7,400 | | 251,822 |
| | 2,956,506 |
TOTAL ENERGY | | 3,271,745 |
FINANCIALS - 26.7% |
Capital Markets - 4.8% |
Ameriprise Financial, Inc. | 1,200 | | 65,052 |
Bank of New York Mellon Corp. | 8,600 | | 203,390 |
E*TRADE Financial Corp. (a) | 46,563 | | 494,965 |
Goldman Sachs Group, Inc. | 1,504 | | 173,186 |
Lazard Ltd. Class A | 2,303 | | 63,356 |
Morgan Stanley | 5,999 | | 103,663 |
State Street Corp. | 5,750 | | 265,765 |
| | 1,369,377 |
Commercial Banks - 8.3% |
Aozora Bank Ltd. | 200,000 | | 512,989 |
Fifth Third Bancorp | 15,705 | | 223,482 |
KeyCorp | 54,400 | | 437,376 |
U.S. Bancorp | 9,070 | | 291,782 |
Wells Fargo & Co. | 21,526 | | 719,614 |
Zions Bancorporation | 9,498 | | 193,664 |
| | 2,378,907 |
Consumer Finance - 0.7% |
Capital One Financial Corp. | 3,500 | | 194,180 |
Diversified Financial Services - 6.8% |
Bank of America Corp. | 25,655 | | 208,062 |
Citigroup, Inc. | 30,946 | | 1,022,456 |
JPMorgan Chase & Co. | 16,225 | | 697,351 |
| | 1,927,869 |
Insurance - 5.0% |
Allstate Corp. | 2,400 | | 79,992 |
Assurant, Inc. | 2,300 | | 92,782 |
Berkshire Hathaway, Inc. Class B (a) | 2,289 | | 184,150 |
MetLife, Inc. | 6,088 | | 219,351 |
RenaissanceRe Holdings Ltd. | 2,019 | | 157,603 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Insurance - continued |
The Chubb Corp. | 4,636 | | $ 338,753 |
XL Group PLC Class A | 16,939 | | 364,358 |
| | 1,436,989 |
Real Estate Investment Trusts - 0.6% |
Weyerhaeuser Co. | 9,100 | | 185,276 |
Thrifts & Mortgage Finance - 0.5% |
Radian Group, Inc. (d) | 43,400 | | 135,408 |
TOTAL FINANCIALS | | 7,628,006 |
HEALTH CARE - 15.9% |
Biotechnology - 0.9% |
Amgen, Inc. | 3,700 | | 263,107 |
Health Care Equipment & Supplies - 0.6% |
CareFusion Corp. (a) | 6,300 | | 163,233 |
Health Care Providers & Services - 0.5% |
Omnicare, Inc. | 4,500 | | 156,780 |
Pharmaceuticals - 13.9% |
Eli Lilly & Co. | 5,329 | | 220,567 |
Johnson & Johnson | 12,511 | | 814,341 |
Merck & Co., Inc. | 24,641 | | 966,913 |
Pfizer, Inc. | 57,301 | | 1,313,910 |
Sanofi SA sponsored ADR (d) | 17,125 | | 653,833 |
| | 3,969,564 |
TOTAL HEALTH CARE | | 4,552,684 |
INDUSTRIALS - 5.9% |
Aerospace & Defense - 1.3% |
Textron, Inc. | 14,473 | | 385,561 |
Construction & Engineering - 0.6% |
Jacobs Engineering Group, Inc. (a) | 3,600 | | 157,788 |
Industrial Conglomerates - 3.0% |
General Electric Co. | 43,546 | | 852,631 |
Machinery - 1.0% |
Fiat Industrial SpA | 24,671 | | 279,892 |
TOTAL INDUSTRIALS | | 1,675,872 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - 11.4% |
Communications Equipment - 3.6% |
Cisco Systems, Inc. | 23,022 | | $ 463,893 |
Comverse Technology, Inc. (a) | 89,300 | | 575,985 |
| | 1,039,878 |
Computers & Peripherals - 2.5% |
Hewlett-Packard Co. | 29,099 | | 720,491 |
Electronic Equipment & Components - 1.6% |
Corning, Inc. | 31,804 | | 456,387 |
Office Electronics - 1.1% |
Xerox Corp. | 38,297 | | 297,951 |
Semiconductors & Semiconductor Equipment - 2.1% |
Advanced Micro Devices, Inc. (a) | 79,490 | | 585,046 |
Software - 0.5% |
Microsoft Corp. | 4,710 | | 150,814 |
TOTAL INFORMATION TECHNOLOGY | | 3,250,567 |
MATERIALS - 1.3% |
Metals & Mining - 1.3% |
Newmont Mining Corp. | 8,084 | | 385,203 |
TELECOMMUNICATION SERVICES - 2.9% |
Diversified Telecommunication Services - 2.9% |
AT&T, Inc. | 10,950 | | 360,365 |
CenturyLink, Inc. | 2,745 | | 105,847 |
Verizon Communications, Inc. | 9,085 | | 366,852 |
| | 833,064 |
UTILITIES - 5.3% |
Electric Utilities - 4.4% |
Edison International | 900 | | 39,609 |
Exelon Corp. | 11,433 | | 446,001 |
FirstEnergy Corp. | 8,034 | | 376,152 |
NextEra Energy, Inc. | 6,196 | | 398,713 |
| | 1,260,475 |
Multi-Utilities - 0.9% |
Sempra Energy | 3,700 | | 239,538 |
TOTAL UTILITIES | | 1,500,013 |
TOTAL COMMON STOCKS (Cost $27,819,221) |
27,669,403
|
U.S. Treasury Obligations - 0.2% |
| Principal Amount | | Value |
U.S. Treasury Bills, yield at date of purchase 0.08% 7/5/12
(Cost $49,993) | | $ 50,000 | | $ 49,993 |
Money Market Funds - 9.1% |
| Shares | | |
Fidelity Cash Central Fund, 0.14% (b) | 762,577 | | 762,577 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 1,833,744 | | 1,833,744 |
TOTAL MONEY MARKET FUNDS (Cost $2,596,321) |
2,596,321
|
TOTAL INVESTMENT PORTFOLIO - 106.2% (Cost $30,465,535) | | 30,315,717 |
NET OTHER ASSETS (LIABILITIES) - (6.2)% | | (1,774,218) |
NET ASSETS - 100% | $ 28,541,499 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
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 | $ 867 |
Fidelity Securities Lending Cash Central Fund | 4,759 |
Total | $ 5,626 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2012, 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 Security 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 | $ 1,854,822 | $ 1,854,822 | $ - | $ - |
Consumer Staples | 2,717,427 | 2,717,427 | - | - |
Energy | 3,271,745 | 3,271,745 | - | - |
Financials | 7,628,006 | 7,115,017 | 512,989 | - |
Health Care | 4,552,684 | 4,552,684 | - | - |
Industrials | 1,675,872 | 1,675,872 | - | - |
Information Technology | 3,250,567 | 3,250,567 | - | - |
Materials | 385,203 | 385,203 | - | - |
Telecommunication Services | 833,064 | 833,064 | - | - |
Utilities | 1,500,013 | 1,500,013 | - | - |
U.S. Government and Government Agency Obligations | 49,993 | - | 49,993 | - |
Money Market Funds | 2,596,321 | 2,596,321 | - | - |
Total Investments in Securities: | $ 30,315,717 | $ 29,752,735 | $ 562,982 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 88.6% |
Mexico | 2.6% |
France | 2.3% |
Japan | 1.8% |
Switzerland | 1.7% |
Ireland | 1.3% |
Italy | 1.0% |
Others (Individually Less Than 1%) | 0.7% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,750,324) - See accompanying schedule: Unaffiliated issuers (cost $27,869,214) | $ 27,719,396 | |
Fidelity Central Funds (cost $2,596,321) | 2,596,321 | |
Total Investments (cost $30,465,535) | | $ 30,315,717 |
Cash | | 3,485 |
Foreign currency held at value (cost $35,217) | | 35,217 |
Receivable for investments sold | | 550,409 |
Receivable for fund shares sold | | 17,977 |
Dividends receivable | | 42,832 |
Distributions receivable from Fidelity Central Funds | | 975 |
Prepaid expenses | | 23 |
Receivable from investment adviser for expense reductions | | 1,481 |
Other receivables | | 1,368 |
Total assets | | 30,969,484 |
| | |
Liabilities | | |
Payable for investments purchased | $ 490,292 | |
Payable for fund shares redeemed | 50,181 | |
Accrued management fee | 5,532 | |
Distribution and service plan fees payable | 10,438 | |
Other affiliated payables | 8,291 | |
Other payables and accrued expenses | 29,507 | |
Collateral on securities loaned, at value | 1,833,744 | |
Total liabilities | | 2,427,985 |
| | |
Net Assets | | $ 28,541,499 |
Net Assets consist of: | | |
Paid in capital | | $ 64,370,339 |
Undistributed net investment income | | 68,724 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (35,748,742) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (148,822) |
Net Assets | | $ 28,541,499 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($15,888,691 ÷ 1,486,777 shares) | | $ 10.69 |
| | |
Maximum offering price per share (100/94.25 of $10.69) | | $ 11.34 |
Class T:
Net Asset Value and redemption price per share ($7,619,087 ÷ 711,572 shares) | | $ 10.71 |
| | |
Maximum offering price per share (100/96.50 of $10.71) | | $ 11.10 |
Class B:
Net Asset Value and offering price per share ($1,023,097 ÷ 96,387 shares)A | | $ 10.61 |
| | |
Class C:
Net Asset Value and offering price per share ($3,671,326 ÷ 349,613 shares)A | | $ 10.50 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($339,298 ÷ 31,588 shares) | | $ 10.74 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 358,381 |
Interest | | 6 |
Income from Fidelity Central Funds | | 5,626 |
Total income | | 364,013 |
| | |
Expenses | | |
Management fee
Basic fee | $ 79,617 | |
Performance adjustment | (45,984) | |
Transfer agent fees | 43,342 | |
Distribution and service plan fees | 62,781 | |
Accounting and security lending fees | 5,772 | |
Custodian fees and expenses | 10,411 | |
Independent trustees' compensation | 87 | |
Registration fees | 26,557 | |
Audit | 27,276 | |
Legal | 122 | |
Miscellaneous | 126 | |
Total expenses before reductions | 210,107 | |
Expense reductions | (6,114) | 203,993 |
Net investment income (loss) | | 160,020 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (803,860) | |
Foreign currency transactions | (2,266) | |
Futures contracts | (6,741) | |
Total net realized gain (loss) | | (812,867) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,982,962 | |
Assets and liabilities in foreign currencies | 792 | |
Total change in net unrealized appreciation (depreciation) | | 2,983,754 |
Net gain (loss) | | 2,170,887 |
Net increase (decrease) in net assets resulting from operations | | $ 2,330,907 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
April 30, 2012
(Unaudited) | Year ended
October 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 160,020 | $ 290,432 |
Net realized gain (loss) | (812,867) | 720,203 |
Change in net unrealized appreciation (depreciation) | 2,983,754 | (343,386) |
Net increase (decrease) in net assets resulting
from operations | 2,330,907 | 667,249 |
Distributions to shareholders from net investment income | (279,421) | (358,603) |
Distributions to shareholders from net realized gain | (11,550) | (41,497) |
Total distributions | (290,971) | (400,100) |
Share transactions - net increase (decrease) | (2,645,076) | (15,871,835) |
Total increase (decrease) in net assets | (605,140) | (15,604,686) |
| | |
Net Assets | | |
Beginning of period | 29,146,639 | 44,751,325 |
End of period (including undistributed net investment income of $68,724 and undistributed net investment income of $188,125, respectively) | $ 28,541,499 | $ 29,146,639 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.96 | $ 10.12 | $ 9.30 | $ 8.63 | $ 16.40 | $ 15.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .07 | .10 | .07H | .09 | .16 | .13 |
Net realized and unrealized gain (loss) | .78 | (.14)I | .85 | .75 | (7.09) | 1.99 |
Total from investment operations | .85 | (.04) | .92 | .84 | (6.93) | 2.12 |
Distributions from net investment income | (.12) | (.11) | (.09) | (.17) | (.12) | (.09) |
Distributions from net realized gain | -K | (.01) | (.01) | - | (.72) | (.71) |
Total distributions | (.12) | (.12) | (.10) | (.17) | (.84)L | (.80) |
Net asset value, end of period | $ 10.69 | $ 9.96 | $ 10.12 | $ 9.30 | $ 8.63 | $ 16.40 |
Total ReturnB,C,D | 8.68% | (.40)% | 9.91% | 10.13% | (44.43)% | 14.64% |
Ratios to Average Net AssetsF,J | | | | | |
Expenses before reductions | 1.28%A | 1.24% | 1.22% | 1.25% | 1.26% | 1.28% |
Expenses net of fee waivers, if any | 1.25%A | 1.24% | 1.22% | 1.25% | 1.25% | 1.25% |
Expenses net of all
reductions | 1.24%A | 1.23% | 1.21% | 1.25% | 1.25% | 1.24% |
Net investment income (loss) | 1.31%A | .91% | .75%H | 1.10% | 1.21% | .85% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 15,889 | $ 15,484 | $ 25,431 | $ 28,585 | $ 34,864 | $ 67,434 |
Portfolio turnover rateG | 88%A | 161% | 51% | 56% | 74% | 76% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .57%.
I The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
L Total distributions of $.839 per share is comprised of distributions from net investment income of $.117 and distributions from net realized gain of $.722 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.96 | $ 10.08 | $ 9.27 | $ 8.58 | $ 16.30 | $ 14.99 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .05 | .07 | .05H | .07 | .13 | .09 |
Net realized and unrealized gain (loss) | .79 | (.13)I | .84 | .75 | (7.06) | 1.97 |
Total from investment operations | .84 | (.06) | .89 | .82 | (6.93) | 2.06 |
Distributions from net investment income | (.09) | (.05) | (.07) | (.13) | (.07) | (.04) |
Distributions from net realized gain | -K | (.01) | (.01) | - | (.72) | (.71) |
Total distributions | (.09) | (.06) | (.08) | (.13) | (.79)L | (.75) |
Net asset value, end of period | $ 10.71 | $ 9.96 | $ 10.08 | $ 9.27 | $ 8.58 | $ 16.30 |
Total ReturnB,C,D | 8.56% | (.64)% | 9.62% | 9.90% | (44.57)% | 14.31% |
Ratios to Average Net AssetsF,J | | | | | |
Expenses before reductions | 1.54%A | 1.49% | 1.45% | 1.50% | 1.49% | 1.53% |
Expenses net of fee waivers, if any | 1.50%A | 1.49% | 1.45% | 1.50% | 1.49% | 1.50% |
Expenses net of all
reductions | 1.49%A | 1.48% | 1.45% | 1.49% | 1.49% | 1.49% |
Net investment income (loss) | 1.06%A | .67% | .52%H | .85% | .97% | .60% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,619 | $ 8,254 | $ 12,735 | $ 20,652 | $ 22,720 | $ 50,998 |
Portfolio turnover rateG | 88%A | 161% | 51% | 56% | 74% | 76% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .33%.
I The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
L Total distributions of $.790 per share is comprised of distributions from net investment income of $.068 and distributions from net realized gain of $.722 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.84 | $ 9.99 | $ 9.18 | $ 8.47 | $ 16.07 | $ 14.81 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .03 | .02 | -H,K | .03 | .06 | .01 |
Net realized and unrealized gain (loss) | .78 | (.13)I | .84 | .74 | (6.96) | 1.95 |
Total from investment operations | .81 | (.11) | .84 | .77 | (6.90) | 1.96 |
Distributions from net investment income | (.03) | (.03) | (.02) | (.06) | - | - |
Distributions from net realized gain | -K | (.01) | (.01) | - | (.70) | (.70) |
Total distributions | (.04)M | (.04) | (.03) | (.06) | (.70)L | (.70) |
Net asset value, end of period | $ 10.61 | $ 9.84 | $ 9.99 | $ 9.18 | $ 8.47 | $ 16.07 |
Total ReturnB,C,D | 8.22% | (1.14)% | 9.11% | 9.19% | (44.80)% | 13.74% |
Ratios to Average Net AssetsF,J | | | | | |
Expenses before reductions | 2.03%A | 1.99% | 1.97% | 2.00% | 2.03% | 2.10% |
Expenses net of fee waivers, if any | 2.00%A | 1.99% | 1.97% | 2.00% | 2.00% | 2.00% |
Expenses net of all
reductions | 1.99%A | 1.98% | 1.97% | 2.00% | 2.00% | 1.99% |
Net investment income (loss) | .56%A | .16% | (.01)%H | .35% | .45% | .10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,023 | $ 1,110 | $ 1,605 | $ 1,989 | $ 2,615 | $ 6,734 |
Portfolio turnover rateG | 88%A | 161% | 51% | 56% | 74% | 76% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.19)%.
I The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
L Total distributions of $.698 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.698 per share.
M Total distributions of $.035 per share is comprised of distributions from net investment income of $.031 and distributions from net realized gain of $.004 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.75 | $ 9.92 | $ 9.11 | $ 8.44 | $ 16.04 | $ 14.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .03 | .02 | -I, L | .03 | .06 | .02 |
Net realized and unrealized gain (loss) | .77 | (.13)J | .83 | .73 | (6.95) | 1.93 |
Total from investment operations | .80 | (.11) | .83 | .76 | (6.89) | 1.95 |
Distributions from net investment income | (.05) | (.05) | (.02) | (.09) | - | - |
Distributions from net realized gain | -L | (.01) | (.01) | - | (.71) | (.71) |
Total distributions | (.05) | (.06) | (.02)N | (.09) | (.71)M | (.71) |
Net asset value, end of period | $ 10.50 | $ 9.75 | $ 9.92 | $ 9.11 | $ 8.44 | $ 16.04 |
Total ReturnB,C,D | 8.29% | (1.18)% | 9.12% | 9.28% | (44.84)% | 13.69% |
Ratios to Average Net AssetsF,K | | | | | |
Expenses before reductions | 2.03%A | 2.00% | 1.97% | 2.01% | 2.03% | 2.09% |
Expenses net of fee waivers, if any | 2.00%A | 2.00% | 1.97% | 2.00% | 2.00% | 2.00% |
Expenses net of all
reductions | 1.99%A | 1.98% | 1.97% | 2.00% | 2.00% | 1.99% |
Net investment income (loss) | .56%A | .16% | -%H,I | .35% | .45% | .10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,671 | $ 3,775 | $ 4,139 | $ 4,088 | $ 5,358 | $ 9,718 |
Portfolio turnover rateG | 88%A | 161% | 51% | 56% | 74% | 76% |
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 Amount represents less than .01%.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.19)%.
J The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
L Amount represents less than $.01 per share.
M Total distributions of $.712 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.712 per share.
N Total distributions of $.02 per share is comprised of distributions from net investment income of $.015 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 - Institutional Class
| Six months ended
April 30, 2012 | Years ended October 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.04 | $ 10.19 | $ 9.35 | $ 8.70 | $ 16.51 | $ 15.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .08 | .14 | .10G | .11 | .20 | .17 |
Net realized and unrealized gain (loss) | .78 | (.15)H | .86 | .74 | (7.13) | 1.99 |
Total from investment operations | .86 | (.01) | .96 | .85 | (6.93) | 2.16 |
Distributions from net investment income | (.16) | (.13) | (.11) | (.20) | (.15) | (.11) |
Distributions from net realized gain | -J | (.01) | (.01) | - | (.72) | (.71) |
Total distributions | (.16) | (.14) | (.12) | (.20) | (.88)K | (.82) |
Net asset value, end of period | $ 10.74 | $ 10.04 | $ 10.19 | $ 9.35 | $ 8.70 | $ 16.51 |
Total ReturnB,C | 8.78% | (.11)% | 10.28% | 10.26% | (44.24)% | 14.89% |
Ratios to Average Net AssetsE,I | | | | | |
Expenses before
reductions | .98%A | .89% | .98% | 1.00% | .98% | 1.00% |
Expenses net of fee waivers, if any | .98%A | .89% | .98% | 1.00% | .98% | 1.00% |
Expenses net of all
reductions | .97%A | .88% | .97% | 1.00% | .97% | .99% |
Net investment income (loss) | 1.58%A | 1.27% | .99%G | 1.35% | 1.48% | 1.10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 339 | $ 523 | $ 841 | $ 2,341 | $ 2,021 | $ 6,833 |
Portfolio turnover rateF | 88%A | 161% | 51% | 56% | 74% | 76% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .81%.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
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.
K Total distributions of $.876 per share is comprised of distributions from net investment income of $.154 and distributions from net realized gain of $.722 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor® Value Leaders Fund (the Fund) is a fund of Fidelity Advisor Series VIII (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. Effective after the close of business on September 1, 2010, Class B shares were 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated 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 distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company(FMR)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 FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security 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 value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
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)
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, 2012, is included at the end of the Fund's Schedule of Investments. 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 an independent pricing service 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 significant 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 are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
observable inputs are limited, assumptions about market activity and risk are used and these securities are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. 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. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, 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 | $ 1,944,368 |
Gross unrealized depreciation | (2,780,969) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (836,601) |
| |
Tax cost | $ 31,152,318 |
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. At October 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2016 | $ (19,194,347) |
2017 | (14,819,668) |
2019 | (169,201) |
Total capital loss carryforward | $ (34,183,216) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund primarily used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets 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 is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent 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 is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is included in the Statement of Operations.
The underlying face amount at value of open futures contracts at period end, if any, is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
During the period the Fund recognized net realized gain (loss) of $(6,741) related to its investment in futures contracts. This amounts is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $11,941,601 and $14,126,025, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .24% 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | - % | .25% | $ 19,525 | $ 272 |
Class T | .25% | .25% | 19,162 | 173 |
Class B | .75% | .25% | 5,295 | 3,986 |
Class C | .75% | .25% | 18,799 | 1,599 |
| | | $ 62,781 | $ 6,030 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
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, 1.00% for Class C, 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
by FDC |
Class A | $ 1,222 |
Class T | 898 |
Class B* | 986 |
Class C* | 203 |
| $ 3,309 |
* 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 FMR, 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
Average
Net Assets* |
Class A | $ 23,550 | .30 |
Class T | 11,897 | .31 |
Class B | 1,600 | .30 |
Class C | 5,744 | .31 |
Institutional Class | 551 | .25 |
| $ 43,342 | |
* Annualized
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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. The commissions paid to these affiliated firms were $622 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 $43 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
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, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 $4,759. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions.
FMR 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
Limitations | Reimbursement
from adviser |
Class A | 1.25% | $ 2,294 |
Class T | 1.50% | 1,502 |
Class B | 2.00% | 158 |
Class C | 2.00% | 682 |
| | $ 4,636 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,469 for the period. 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
April 30, 2012 | Year ended
October 31, 2011 |
From net investment income | | |
Class A | $ 180,927 | $ 274,577 |
Class T | 68,454 | 50,441 |
Class B | 3,401 | 4,151 |
Class C | 18,732 | 18,471 |
Institutional Class | 7,907 | 10,963 |
Total | $ 279,421 | $ 358,603 |
From net realized gain | | |
Class A | $ 6,239 | $ 24,299 |
Class T | 3,111 | 10,732 |
Class B | 439 | 1,537 |
Class C | 1,561 | 4,105 |
Institutional Class | 200 | 824 |
Total | $ 11,550 | $ 41,497 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2012 | Year ended
October 31,
2011 | Six months ended April 30,
2012 | Year ended
October 31,
2011 |
Class A | | | | |
Shares sold | 156,600 | 334,576 | $ 1,572,737 | $ 3,612,152 |
Reinvestment of distributions | 18,760 | 28,074 | 179,532 | 288,043 |
Shares redeemed | (243,790) | (1,320,166) | (2,462,163) | (14,109,969) |
Net increase (decrease) | (68,430) | (957,516) | $ (709,894) | $ (10,209,774) |
Class T | | | | |
Shares sold | 31,580 | 157,819 | $ 324,836 | $ 1,706,564 |
Reinvestment of distributions | 7,282 | 5,816 | 69,834 | 59,851 |
Shares redeemed | (156,094) | (597,712) | (1,568,922) | (6,300,709) |
Net increase (decrease) | (117,232) | (434,077) | $ (1,174,252) | $ (4,534,294) |
Class B | | | | |
Shares sold | 26 | 248 | $ 248 | $ 2,692 |
Reinvestment of distributions | 355 | 507 | 3,383 | 5,175 |
Shares redeemed | (16,821) | (48,512) | (168,279) | (509,116) |
Net increase (decrease) | (16,440) | (47,757) | $ (164,648) | $ (501,249) |
Class C | | | | |
Shares sold | 23,625 | 69,631 | $ 232,996 | $ 733,867 |
Reinvestment of distributions | 1,986 | 2,055 | 18,732 | 20,799 |
Shares redeemed | (63,124) | (101,679) | (635,197) | (1,050,311) |
Net increase (decrease) | (37,513) | (29,993) | $ (383,469) | $ (295,645) |
Institutional Class | | | | |
Shares sold | 6,597 | 74,917 | $ 68,969 | $ 747,771 |
Reinvestment of distributions | 750 | 1,083 | 7,203 | 11,162 |
Shares redeemed | (27,908) | (106,405) | (288,985) | (1,089,806) |
Net increase (decrease) | (20,561) | (30,405) | $ (212,813) | $ (330,873) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Company
Boston, MA
AVLFI-USAN-0612
1.800658.108
(Fidelity Investment logo)(registered trademark)
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 VIII'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 VIII'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 VIII
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
| |
Date: | June 15, 2012 |
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 15, 2012 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | June 15, 2012 |
