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)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | October 31 |
| |
Date of reporting period: | April 30, 2014 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Diversified International
Fund - Institutional Class
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.27% | | | |
Actual | | $ 1,000.00 | $ 1,042.20 | $ 6.43 |
HypotheticalA | | $ 1,000.00 | $ 1,018.50 | $ 6.36 |
Class T | 1.52% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ 7.69 |
HypotheticalA | | $ 1,000.00 | $ 1,017.26 | $ 7.60 |
Class B | 2.08% | | | |
Actual | | $ 1,000.00 | $ 1,037.80 | $ 10.51 |
HypotheticalA | | $ 1,000.00 | $ 1,014.48 | $ 10.39 |
Class C | 2.01% | | | |
Actual | | $ 1,000.00 | $ 1,038.60 | $ 10.16 |
HypotheticalA | | $ 1,000.00 | $ 1,014.83 | $ 10.04 |
Institutional Class | .97% | | | |
Actual | | $ 1,000.00 | $ 1,043.60 | $ 4.91 |
HypotheticalA | | $ 1,000.00 | $ 1,019.98 | $ 4.86 |
Class Z | .82% | | | |
Actual | | $ 1,000.00 | $ 1,044.60 | $ 4.16 |
HypotheticalA | | $ 1,000.00 | $ 1,020.73 | $ 4.11 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 1.9 | 1.5 |
Sanofi SA (France, Pharmaceuticals) | 1.8 | 2.5 |
Bayer AG (Germany, Pharmaceuticals) | 1.7 | 1.7 |
ORIX Corp. (Japan, Diversified Financial Services) | 1.6 | 2.1 |
Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.4 | 1.5 |
| 8.4 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 21.1 | 23.0 |
Health Care | 16.1 | 14.4 |
Consumer Discretionary | 15.8 | 18.3 |
Consumer Staples | 11.9 | 11.9 |
Information Technology | 9.8 | 8.9 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United Kingdom | 17.4 | 17.4 |
Japan | 15.3 | 17.7 |
Germany | 8.4 | 9.1 |
United States of America | 7.1 | 7.3 |
France | 6.8 | 8.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 97.7% | | | Stocks and Equity Futures 99.5% | |
| Investment Companies 0.0% | | | Investment Companies 0.3% | |
| Other Investments 0.1% | | | Other Investments 0.0% | |
| Short-Term Investments and Net Other Assets (Liabilities) 2.2% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.2% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.9% |
| Shares | | Value (000s) |
Australia - 3.3% |
ALS Ltd. | 361,681 | | $ 2,520 |
Ansell Ltd. | 258,534 | | 4,345 |
Australia & New Zealand Banking Group Ltd. | 629,890 | | 20,171 |
BHP Billiton Ltd. sponsored ADR (d) | 289,036 | | 20,389 |
CSL Ltd. | 167,531 | | 10,650 |
Telstra Corp. Ltd. | 631,653 | | 3,063 |
Westfield Group unit | 645,269 | | 6,564 |
TOTAL AUSTRALIA | | 67,702 |
Austria - 0.2% |
Andritz AG | 52,900 | | 3,283 |
Bailiwick of Guernsey - 0.5% |
Resolution Ltd. | 2,040,824 | | 10,279 |
Bailiwick of Jersey - 2.0% |
Experian PLC | 756,300 | | 14,506 |
Shire PLC | 163,200 | | 9,334 |
Wolseley PLC | 107,958 | | 6,236 |
WPP PLC | 493,924 | | 10,650 |
TOTAL BAILIWICK OF JERSEY | | 40,726 |
Belgium - 2.9% |
Anheuser-Busch InBev SA NV (d) | 269,031 | | 29,323 |
Arseus NV | 54,000 | | 3,064 |
KBC Groupe SA | 370,977 | | 22,599 |
UCB SA | 54,600 | | 4,476 |
TOTAL BELGIUM | | 59,462 |
Bermuda - 0.1% |
Golar LNG Ltd. (NASDAQ) | 58,700 | | 2,595 |
Canada - 3.9% |
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 515,100 | | 14,517 |
Canadian Natural Resources Ltd. | 189,300 | | 7,713 |
CGI Group, Inc. Class A (sub. vtg.) (a) | 434,300 | | 15,659 |
Constellation Software, Inc. | 29,100 | | 6,445 |
First Quantum Minerals Ltd. | 238,600 | | 4,752 |
Imperial Oil Ltd. | 74,700 | | 3,648 |
Keyera Corp. | 16,800 | | 1,117 |
Potash Corp. of Saskatchewan, Inc. | 214,700 | | 7,761 |
Suncor Energy, Inc. | 265,200 | | 10,230 |
Common Stocks - continued |
| Shares | | Value (000s) |
Canada - continued |
Tourmaline Oil Corp. (a) | 86,300 | | $ 4,468 |
TransForce, Inc. | 104,800 | | 2,288 |
TOTAL CANADA | | 78,598 |
Cayman Islands - 1.6% |
GCL-Poly Energy Holdings Ltd. (a) | 16,510,000 | | 4,940 |
Ginko International Co. Ltd. | 18,000 | | 303 |
Greatview Aseptic Pack Co. Ltd. | 3,658,000 | | 2,232 |
PW Medtech Group Ltd. (a) | 5,181,000 | | 2,419 |
Qihoo 360 Technology Co. Ltd. ADR (a) | 32,400 | | 2,734 |
Sands China Ltd. | 1,533,600 | | 11,196 |
Springland International Holdings Ltd. | 3,559,000 | | 1,400 |
Tencent Holdings Ltd. | 73,100 | | 4,556 |
Yingde Gases Group Co. Ltd. | 1,943,000 | | 1,962 |
TOTAL CAYMAN ISLANDS | | 31,742 |
Denmark - 2.5% |
Genmab A/S (a) | 132,800 | | 4,934 |
ISS Holdings A/S (a) | 70,900 | | 2,468 |
Novo Nordisk A/S Series B | 850,140 | | 38,587 |
Vestas Wind Systems A/S (a) | 106,100 | | 4,709 |
TOTAL DENMARK | | 50,698 |
Finland - 0.3% |
Sampo Oyj (A Shares) (d) | 113,300 | | 5,626 |
France - 6.8% |
Air Liquide SA | 45,300 | | 6,480 |
Arkema SA | 48,400 | | 5,397 |
Atos Origin SA | 48,497 | | 4,187 |
AXA SA | 444,800 | | 11,586 |
BNP Paribas SA | 250,943 | | 18,838 |
Bureau Veritas SA | 297,600 | | 9,083 |
Cap Gemini SA | 69,000 | | 4,873 |
Kering SA | 35,500 | | 7,851 |
LVMH Moet Hennessy - Louis Vuitton SA | 22,468 | | 4,418 |
Publicis Groupe SA | 140,400 | | 11,960 |
Rexel SA | 181,500 | | 4,583 |
Sanofi SA | 330,975 | | 35,719 |
Schneider Electric SA | 72,200 | | 6,766 |
Solocal Group SA (a)(d) | 1,551,900 | | 3,552 |
Tarkett SA | 78,674 | | 2,805 |
TOTAL FRANCE | | 138,098 |
Common Stocks - continued |
| Shares | | Value (000s) |
Germany - 6.7% |
adidas AG | 90,600 | | $ 9,670 |
BASF AG (d) | 149,462 | | 17,300 |
Bayer AG (d) | 255,652 | | 35,468 |
Brenntag AG | 25,200 | | 4,557 |
Continental AG (d) | 34,600 | | 8,105 |
Drillisch AG | 49,200 | | 1,832 |
Fresenius SE & Co. KGaA | 98,100 | | 14,910 |
Gerry Weber International AG (Bearer) | 41,000 | | 2,161 |
Linde AG | 50,347 | | 10,439 |
OSRAM Licht AG (a) | 63,002 | | 3,298 |
ProSiebenSat.1 Media AG | 90,800 | | 3,970 |
SAP AG | 290,897 | | 23,512 |
SMA Solar Technology AG (d) | 28,700 | | 1,200 |
TOTAL GERMANY | | 136,422 |
Greece - 0.1% |
Jumbo SA | 146,641 | | 2,370 |
Hong Kong - 1.5% |
AIA Group Ltd. | 4,322,000 | | 20,961 |
Galaxy Entertainment Group Ltd. | 1,059,000 | | 8,312 |
Melco International Development Ltd. | 247,000 | | 757 |
TOTAL HONG KONG | | 30,030 |
India - 1.8% |
Apollo Hospitals Enterprise Ltd. | 199,507 | | 2,958 |
HDFC Bank Ltd. | 804,283 | | 10,065 |
Housing Development Finance Corp. Ltd. | 609,718 | | 9,077 |
ITC Ltd. | 1,141,123 | | 6,447 |
Lupin Ltd. | 127,912 | | 2,183 |
Pidilite Industries Ltd. | 524,041 | | 2,767 |
United Spirits Ltd. | 85,674 | | 3,932 |
TOTAL INDIA | | 37,429 |
Indonesia - 0.2% |
PT Bank Central Asia Tbk | 2,092,500 | | 1,991 |
PT Bank Rakyat Indonesia Tbk | 2,107,000 | | 1,804 |
TOTAL INDONESIA | | 3,795 |
Ireland - 1.7% |
Actavis PLC (a) | 50,000 | | 10,217 |
Covidien PLC | 2,728 | | 194 |
DCC PLC (United Kingdom) | 71,500 | | 3,661 |
Common Stocks - continued |
| Shares | | Value (000s) |
Ireland - continued |
Greencore Group PLC | 1,069,521 | | $ 4,715 |
Perrigo Co. PLC | 56,900 | | 8,243 |
Ryanair Holdings PLC sponsored ADR (a) | 147,800 | | 7,904 |
TOTAL IRELAND | | 34,934 |
Israel - 0.6% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 247,100 | | 12,073 |
Italy - 0.8% |
UniCredit SpA | 1,153,000 | | 10,302 |
World Duty Free SpA (a) | 446,008 | | 5,974 |
TOTAL ITALY | | 16,276 |
Japan - 15.3% |
ACOM Co. Ltd. (a)(d) | 730,600 | | 2,487 |
Ain Pharmaciez, Inc. | 77,700 | | 3,416 |
Aozora Bank Ltd. | 1,812,000 | | 5,388 |
Astellas Pharma, Inc. | 1,094,700 | | 12,175 |
Coca-Cola Central Japan Co. Ltd. | 115,000 | | 2,585 |
Don Quijote Holdings Co. Ltd. | 206,600 | | 10,872 |
Fuji Heavy Industries Ltd. | 138,000 | | 3,624 |
GMO Internet, Inc. | 281,500 | | 2,481 |
Honda Motor Co. Ltd. sponsored ADR (d) | 366,306 | | 12,198 |
Hoya Corp. | 613,800 | | 18,095 |
Japan Exchange Group, Inc. | 295,500 | | 5,833 |
Japan Tobacco, Inc. | 686,800 | | 22,545 |
KDDI Corp. | 241,700 | | 12,866 |
Keyence Corp. | 46,800 | | 18,029 |
Komatsu Ltd. | 396,800 | | 8,736 |
Leopalace21 Corp. (a) | 500,100 | | 2,583 |
Medical System Network Co. Ltd. (d) | 752,500 | | 3,217 |
Mitsubishi Electric Corp. | 436,000 | | 4,960 |
Mitsubishi UFJ Financial Group, Inc. | 2,077,500 | | 11,051 |
Nagaileben Co. Ltd. | 117,000 | | 2,252 |
Nakanishi, Inc. | 68,000 | | 2,321 |
NEC Corp. | 2,690,000 | | 7,552 |
Nippon Telegraph & Telephone Corp. | 90,200 | | 5,005 |
Nitori Holdings Co. Ltd. | 73,000 | | 3,345 |
Olympus Corp. (a) | 69,200 | | 2,112 |
OMRON Corp. | 151,700 | | 5,357 |
ORIX Corp. | 2,280,900 | | 32,952 |
Park24 Co. Ltd. | 116,100 | | 2,119 |
Rakuten, Inc. | 1,286,800 | | 16,640 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Sanix, Inc. (a)(d) | 338,800 | | $ 4,000 |
Seven & i Holdings Co., Ltd. | 224,200 | | 8,840 |
SHIMANO, Inc. | 53,700 | | 5,358 |
Shinsei Bank Ltd. | 1,985,000 | | 3,864 |
Ship Healthcare Holdings, Inc. | 95,400 | | 3,247 |
SoftBank Corp. | 362,600 | | 26,920 |
Sumitomo Mitsui Financial Group, Inc. | 124,900 | | 4,937 |
Toshiba Plant Systems & Services Corp. | 299,700 | | 4,406 |
Tsuruha Holdings, Inc. | 49,800 | | 5,008 |
VT Holdings Co. Ltd. | 366,900 | | 2,103 |
TOTAL JAPAN | | 311,479 |
Kenya - 0.2% |
Safaricom Ltd. | 31,403,100 | | 4,728 |
Korea (South) - 1.0% |
Hyundai Motor Co. | 14,250 | | 3,172 |
Naver Corp. | 13,379 | | 9,557 |
Orion Corp. | 6,412 | | 4,891 |
Samsung Electronics Co. Ltd. | 1,538 | | 1,999 |
TOTAL KOREA (SOUTH) | | 19,619 |
Luxembourg - 1.2% |
Altice S.A. (d) | 244,977 | | 13,999 |
Eurofins Scientific SA | 38,800 | | 10,766 |
TOTAL LUXEMBOURG | | 24,765 |
Marshall Islands - 0.1% |
Navigator Holdings Ltd. (a) | 62,300 | | 1,663 |
Netherlands - 3.2% |
AEGON NV | 2,212,100 | | 20,277 |
AerCap Holdings NV (a) | 77,600 | | 3,238 |
Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 169,600 | | 5,420 |
LyondellBasell Industries NV Class A | 88,700 | | 8,205 |
Royal DSM NV | 74,800 | | 5,363 |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 524,200 | | 22,478 |
TOTAL NETHERLANDS | | 64,981 |
New Zealand - 0.2% |
Ryman Healthcare Group Ltd. | 388,844 | | 2,900 |
Common Stocks - continued |
| Shares | | Value (000s) |
Norway - 0.5% |
BW LPG Ltd. (a)(d) | 403,565 | | $ 5,160 |
Telenor ASA | 247,800 | | 5,815 |
TOTAL NORWAY | | 10,975 |
Singapore - 0.6% |
Ezion Holdings Ltd. | 1,233,000 | | 2,233 |
Global Logistic Properties Ltd. | 2,237,000 | | 5,085 |
United Overseas Bank Ltd. | 329,000 | | 5,710 |
TOTAL SINGAPORE | | 13,028 |
South Africa - 1.0% |
Nampak Ltd. | 1,307,800 | | 4,873 |
Naspers Ltd. Class N | 167,500 | | 15,794 |
TOTAL SOUTH AFRICA | | 20,667 |
Spain - 2.2% |
Amadeus IT Holding SA Class A | 217,500 | | 9,039 |
Atresmedia Corporacion de Medios de Comunicacion SA | 109,182 | | 1,565 |
Criteria CaixaCorp SA | 1,038,562 | | 6,325 |
Grifols SA ADR | 160,519 | | 6,588 |
Inditex SA | 140,065 | | 21,016 |
TOTAL SPAIN | | 44,533 |
Sweden - 2.2% |
ASSA ABLOY AB (B Shares) | 100,600 | | 5,325 |
Nordea Bank AB | 881,000 | | 12,730 |
Svenska Cellulosa AB (SCA) (B Shares) | 599,600 | | 16,792 |
Svenska Handelsbanken AB (A Shares) | 212,000 | | 10,639 |
TOTAL SWEDEN | | 45,486 |
Switzerland - 5.4% |
Actelion Ltd. | 47,876 | | 4,703 |
Compagnie Financiere Richemont SA Series A | 113,494 | | 11,516 |
Nestle SA | 372,149 | | 28,761 |
Roche Holding AG (participation certificate) | 49,497 | | 14,520 |
Syngenta AG (Switzerland) | 55,402 | | 21,939 |
UBS AG | 1,389,224 | | 29,054 |
TOTAL SWITZERLAND | | 110,493 |
Taiwan - 0.9% |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 894,700 | | 17,983 |
Thailand - 0.1% |
Kasikornbank PCL (For. Reg.) | 399,200 | | 2,424 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - 17.4% |
Alabama Noor Hospitals Group PLC | 209,300 | | $ 3,527 |
Associated British Foods PLC | 163,300 | | 8,192 |
Barclays PLC | 1,011,180 | | 4,318 |
BG Group PLC | 1,008,869 | | 20,406 |
British American Tobacco PLC sponsored ADR | 161,400 | | 18,564 |
BT Group PLC | 1,807,400 | | 11,283 |
Bunzl PLC | 104,200 | | 2,957 |
Compass Group PLC | 430,100 | | 6,841 |
Diploma PLC | 350,900 | | 3,901 |
Direct Line Insurance Group PLC | 603,300 | | 2,550 |
Dunelm Group PLC | 394,400 | | 6,236 |
easyJet PLC | 192,200 | | 5,312 |
Exova Group Ltd. PLC (a) | 644,700 | | 2,397 |
Filtrona PLC | 706,200 | | 9,539 |
GlaxoSmithKline PLC | 380,100 | | 10,502 |
Hikma Pharmaceuticals PLC | 238,987 | | 6,262 |
HSBC Holdings PLC sponsored ADR | 433,497 | | 22,247 |
IMI PLC | 189,700 | | 4,804 |
InterContinental Hotel Group PLC | 103,180 | | 3,526 |
ITV PLC | 1,404,900 | | 4,317 |
Jazztel PLC (a) | 218,400 | | 3,351 |
Johnson Matthey PLC | 111,500 | | 6,162 |
Kingfisher PLC | 1,982,200 | | 13,993 |
Liberty Global PLC: | | | |
Class A (a) | 48,700 | | 1,939 |
Class C | 48,700 | | 1,872 |
Lloyds Banking Group PLC (a) | 15,282,100 | | 19,488 |
Meggitt PLC | 504,800 | | 4,063 |
Next PLC | 199,300 | | 21,940 |
Poundland Group PLC (a) | 338,134 | | 1,984 |
Prudential PLC | 1,066,210 | | 24,511 |
Reckitt Benckiser Group PLC | 177,313 | | 14,295 |
Reed Elsevier PLC | 280,300 | | 4,127 |
Rolls-Royce Group PLC | 726,000 | | 12,871 |
SABMiller PLC | 99,100 | | 5,389 |
Spectris PLC | 121,000 | | 4,546 |
St. James's Place Capital PLC | 897,100 | | 11,663 |
Standard Chartered PLC (United Kingdom) | 620,366 | | 13,423 |
Travis Perkins PLC | 220,300 | | 6,342 |
Vodafone Group PLC sponsored ADR | 407,981 | | 15,487 |
Whitbread PLC | 116,872 | | 8,051 |
TOTAL UNITED KINGDOM | | 353,178 |
Common Stocks - continued |
| Shares | | Value (000s) |
United States of America - 6.9% |
AbbVie, Inc. | 200,800 | | $ 10,458 |
Accuray, Inc. (a)(d) | 537,600 | | 4,516 |
Alexion Pharmaceuticals, Inc. (a) | 47,600 | | 7,530 |
Amgen, Inc. | 41,600 | | 4,649 |
Boston Scientific Corp. (a) | 228,000 | | 2,875 |
Celldex Therapeutics, Inc. (a) | 41,800 | | 627 |
Citigroup, Inc. | 63,000 | | 3,018 |
Fidelity National Information Services, Inc. | 75,200 | | 4,018 |
FMC Corp. | 26,500 | | 2,041 |
Gilead Sciences, Inc. (a) | 136,500 | | 10,714 |
Google, Inc.: | | | |
Class A (a) | 8,395 | | 4,490 |
Class C (a) | 8,395 | | 4,421 |
Las Vegas Sands Corp. | 133,000 | | 10,524 |
MasterCard, Inc. Class A | 144,800 | | 10,650 |
McGraw Hill Financial, Inc. | 159,200 | | 11,770 |
Mondelez International, Inc. | 116,400 | | 4,150 |
Monsanto Co. | 44,600 | | 4,937 |
Noble Energy, Inc. | 151,200 | | 10,853 |
PriceSmart, Inc. | 19,800 | | 1,902 |
ResMed, Inc. | 77,700 | | 3,873 |
The Blackstone Group LP | 146,100 | | 4,314 |
Verizon Communications, Inc. | 175,495 | | 8,201 |
Visa, Inc. Class A | 49,600 | | 10,049 |
TOTAL UNITED STATES OF AMERICA | | 140,580 |
TOTAL COMMON STOCKS (Cost $1,513,178) | 1,951,620
|
Preferred Stocks - 1.8% |
| | | |
Convertible Preferred Stocks - 0.1% |
United States of America - 0.1% |
NJOY, Inc.: | | | |
Series C (g) | 60,264 | | 1,020 |
Series D (g) | 18,951 | | 321 |
TOTAL UNITED STATES OF AMERICA | | 1,341 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Nonconvertible Preferred Stocks - 1.7% |
Germany - 1.7% |
Henkel AG & Co. KGaA | 131,700 | | $ 14,666 |
Volkswagen AG | 77,600 | | 20,896 |
TOTAL GERMANY | | 35,562 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC (C Shares) | 97,284,000 | | 164 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | | 35,726 |
TOTAL PREFERRED STOCKS (Cost $22,933) | 37,067
|
Government Obligations - 0.1% |
| Principal Amount (000s) | | |
United States of America - 0.1% |
U.S. Treasury Bills, yield at date of purchase 0.04% to 0.06% 5/8/14 to 5/29/14 (Cost $755) | | $ 755 | | 755
|
Preferred Securities - 0.1% |
| | | |
Ireland - 0.1% |
Baggot Securities Ltd. 10.24% (e)(f) (Cost $2,488) | 1,620 | | 2,504
|
Money Market Funds - 8.2% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.11% (b) | 41,344,765 | | $ 41,345 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 125,083,313 | | 125,083 |
TOTAL MONEY MARKET FUNDS (Cost $166,428) | 166,428
|
TOTAL INVESTMENT PORTFOLIO - 106.1% (Cost $1,705,782) | | 2,158,374 |
NET OTHER ASSETS (LIABILITIES) - (6.1)% | | (123,894) |
NET ASSETS - 100% | $ 2,034,480 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,504,000 or 0.1% of net assets. |
(f) Security is perpetual in nature with no stated maturity date. |
(g) 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 $1,341,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
NJOY, Inc. Series C | 6/7/13 | $ 487 |
NJOY, Inc. Series D | 2/14/14 | $ 321 |
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 | $ 15 |
Fidelity Securities Lending Cash Central Fund | 322 |
Total | $ 337 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment 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 | $ 321,135 | $ 305,618 | $ 14,176 | $ 1,341 |
Consumer Staples | 244,625 | 164,063 | 80,562 | - |
Energy | 70,086 | 70,086 | - | - |
Financials | 428,504 | 304,803 | 123,701 | - |
Health Care | 327,194 | 216,349 | 110,845 | - |
Industrials | 159,682 | 150,946 | 8,736 | - |
Information Technology | 196,372 | 172,860 | 23,512 | - |
Materials | 142,538 | 120,599 | 21,939 | - |
Telecommunication Services | 98,551 | 82,263 | 16,288 | - |
Government Obligations | 755 | - | 755 | - |
Preferred Securities | 2,504 | - | 2,504 | - |
Money Market Funds | 166,428 | 166,428 | - | - |
Total Investments in Securities: | $ 2,158,374 | $ 1,754,015 | $ 403,018 | $ 1,341 |
The following is a summary of transfers between Level 1 and Level 2 for the period endedApril 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total (000s) |
Level 1 to Level 2 | $ 24,921 |
Level 2 to Level 1 | $ 245,280 |
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, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $118,495) - See accompanying schedule: Unaffiliated issuers (cost $1,539,354) | $ 1,991,946 | |
Fidelity Central Funds (cost $166,428) | 166,428 | |
Total Investments (cost $1,705,782) | | $ 2,158,374 |
Foreign currency held at value (cost $21) | | 31 |
Receivable for investments sold | | 3,513 |
Receivable for fund shares sold | | 1,194 |
Dividends receivable | | 8,881 |
Distributions receivable from Fidelity Central Funds | | 132 |
Prepaid expenses | | 1 |
Other receivables | | 91 |
Total assets | | 2,172,217 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,228 | |
Payable for fund shares redeemed | 4,774 | |
Accrued management fee | 1,180 | |
Distribution and service plan fees payable | 525 | |
Other affiliated payables | 459 | |
Other payables and accrued expenses | 2,488 | |
Collateral on securities loaned, at value | 125,083 | |
Total liabilities | | 137,737 |
| | |
Net Assets | | $ 2,034,480 |
Net Assets consist of: | | |
Paid in capital | | $ 4,304,998 |
Undistributed net investment income | | 15,454 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,736,228) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 450,256 |
Net Assets | | $ 2,034,480 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($756,997.1 ÷ 37,992.28 shares) | | $ 19.93 |
| | |
Maximum offering price per share (100/94.25 of $19.93) | | $ 21.15 |
Class T: Net Asset Value and redemption price per share ($311,139.3 ÷ 15,738.21 shares) | | $ 19.77 |
| | |
Maximum offering price per share (100/96.50 of $19.77) | | $ 20.49 |
Class B: Net Asset Value and offering price per share ($26,719.9 ÷ 1,393.17 shares)A | | $ 19.18 |
| | |
Class C: Net Asset Value and offering price per share ($260,844.2 ÷ 13,659.84 shares)A | | $ 19.10 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($678,667.7 ÷ 33,506.31 shares) | | $ 20.25 |
| | |
Class Z: Net Asset Value, offering price and redemption price per share ($111.6 ÷ 5.51 shares) | | $ 20.25 |
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
Amounts in thousands Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 20,138 |
Special dividends | | 9,777 |
Income from Fidelity Central Funds | | 337 |
Income before foreign taxes withheld | | 30,252 |
Less foreign taxes withheld | | (1,369) |
Total income | | 28,883 |
| | |
Expenses | | |
Management fee | $ 7,076 | |
Transfer agent fees | 2,331 | |
Distribution and service plan fees | 3,205 | |
Accounting and security lending fees | 448 | |
Custodian fees and expenses | 131 | |
Independent trustees' compensation | 4 | |
Registration fees | 98 | |
Audit | 44 | |
Legal | 5 | |
Miscellaneous | 10 | |
Total expenses before reductions | 13,352 | |
Expense reductions | (19) | 13,333 |
Net investment income (loss) | | 15,550 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 106,559 | |
Foreign currency transactions | (48) | |
Futures contracts | 550 | |
Total net realized gain (loss) | | 107,061 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (39,527) | |
Assets and liabilities in foreign currencies | 67 | |
Futures contracts | (491) | |
Total change in net unrealized appreciation (depreciation) | | (39,951) |
Net gain (loss) | | 67,110 |
Net increase (decrease) in net assets resulting from operations | | $ 82,660 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 15,550 | $ 19,442 |
Net realized gain (loss) | 107,061 | 196,674 |
Change in net unrealized appreciation (depreciation) | (39,951) | 237,976 |
Net increase (decrease) in net assets resulting from operations | 82,660 | 454,092 |
Distributions to shareholders from net investment income | (17,375) | (23,595) |
Distributions to shareholders from net realized gain | (17,564) | (7,342) |
Total distributions | (34,939) | (30,937) |
Share transactions - net increase (decrease) | (23,061) | (330,363) |
Redemption fees | 13 | 17 |
Total increase (decrease) in net assets | 24,673 | 92,809 |
| | |
Net Assets | | |
Beginning of period | 2,009,807 | 1,916,998 |
End of period (including undistributed net investment income of $15,454 and undistributed net investment income of $17,279, respectively) | $ 2,034,480 | $ 2,009,807 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.47 | $ 15.63 | $ 14.61 | $ 15.63 | $ 14.25 | $ 12.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .16 K | .19 | .18 | .22 H | .14 | .17 |
Net realized and unrealized gain (loss) | .65 | 3.92 | 1.03 | (1.01) | 1.44 | 1.96 |
Total from investment operations | .81 | 4.11 | 1.21 | (.79) | 1.58 | 2.13 |
Distributions from net investment income | (.18) | (.21) | (.19) | (.20) | (.19) | (.45) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.35) | (.27) | (.19) | (.23) | (.20) | (.45) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.93 | $ 19.47 | $ 15.63 | $ 14.61 | $ 15.63 | $ 14.25 |
Total Return B, C, D | 4.22% | 26.69% | 8.47% | (5.15)% | 11.17% | 18.16% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.27% A | 1.31% | 1.32% | 1.31% | 1.32% | 1.34% |
Expenses net of fee waivers, if any | 1.27% A | 1.30% | 1.32% | 1.31% | 1.32% | 1.34% |
Expenses net of all reductions | 1.27% A | 1.28% | 1.31% | 1.29% | 1.30% | 1.31% |
Net investment income (loss) | 1.59% A,K | 1.08% | 1.20% | 1.38% H | .95% | 1.43% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 757 | $ 756 | $ 762 | $ 916 | $ 1,302 | $ 1,662 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
K Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .62%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.30 | $ 15.49 | $ 14.46 | $ 15.47 | $ 14.11 | $ 12.42 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .13 L | .14 | .14 | .18 H | .10 | .14 |
Net realized and unrealized gain (loss) | �� .65 | 3.89 | 1.03 | (.99) | 1.43 | 1.94 |
Total from investment operations | .78 | 4.03 | 1.17 | (.81) | 1.53 | 2.08 |
Distributions from net investment income | (.14) | (.16) | (.14) | (.16) | (.16) | (.39) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.31) | (.22) | (.14) | (.20) K | (.17) | (.39) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.77 | $ 19.30 | $ 15.49 | $ 14.46 | $ 15.47 | $ 14.11 |
Total Return B, C, D | 4.09% | 26.37% | 8.17% | (5.35)% | 10.88% | 17.84% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.52% A | 1.55% | 1.58% | 1.55% | 1.55% | 1.58% |
Expenses net of fee waivers, if any | 1.52% A | 1.55% | 1.58% | 1.55% | 1.55% | 1.58% |
Expenses net of all reductions | 1.52% A | 1.53% | 1.57% | 1.53% | 1.53% | 1.55% |
Net investment income (loss) | 1.34% A,L | .83% | .94% | 1.14% H | .71% | 1.19% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 311 | $ 319 | $ 304 | $ 404 | $ 621 | $ 832 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
L Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .37%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.65 | $ 14.95 | $ 13.91 | $ 14.91 | $ 13.61 | $ 11.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 K | .05 | .06 | .09 H | .02 | .08 |
Net realized and unrealized gain (loss) | .63 | 3.77 | 1.00 | (.96) | 1.38 | 1.88 |
Total from investment operations | .70 | 3.82 | 1.06 | (.87) | 1.40 | 1.96 |
Distributions from net investment income | - | (.06) | (.02) | (.10) | (.09) | (.30) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.17) | (.12) | (.02) | (.13) | (.10) | (.30) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.18 | $ 18.65 | $ 14.95 | $ 13.91 | $ 14.91 | $ 13.61 |
Total Return B, C, D | 3.78% | 25.72% | 7.64% | (5.89)% | 10.34% | 17.25% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.08% A | 2.08% | 2.08% | 2.08% | 2.09% | 2.10% |
Expenses net of fee waivers, if any | 2.08% A | 2.08% | 2.08% | 2.08% | 2.09% | 2.10% |
Expenses net of all reductions | 2.08% A | 2.06% | 2.07% | 2.06% | 2.07% | 2.07% |
Net investment income (loss) | .78% A,K | .30% | .44% | .61% H | .18% | .67% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 27 | $ 36 | $ 59 | $ 94 | $ 157 | $ 191 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
K Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.18)%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.63 | $ 14.97 | $ 13.95 | $ 14.95 | $ 13.65 | $ 11.98 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 K | .06 | .06 | .10 H | .03 | .08 |
Net realized and unrealized gain (loss) | .63 | 3.75 | 1.01 | (.96) | 1.38 | 1.89 |
Total from investment operations | .71 | 3.81 | 1.07 | (.86) | 1.41 | 1.97 |
Distributions from net investment income | (.07) | (.09) | (.05) | (.11) | (.10) | (.30) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.24) | (.15) | (.05) | (.14) | (.11) | (.30) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.10 | $ 18.63 | $ 14.97 | $ 13.95 | $ 14.95 | $ 13.65 |
Total Return B, C, D | 3.86% | 25.71% | 7.71% | (5.83)% | 10.32% | 17.24% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.01% A | 2.04% | 2.06% | 2.05% | 2.06% | 2.09% |
Expenses net of fee waivers, if any | 2.01% A | 2.04% | 2.06% | 2.05% | 2.06% | 2.09% |
Expenses net of all reductions | 2.01% A | 2.01% | 2.05% | 2.03% | 2.04% | 2.06% |
Net investment income (loss) | .85% A,K | .35% | .46% | .64% H | .21% | .68% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 261 | $ 264 | $ 246 | $ 302 | $ 419 | $ 502 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
K Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.12)%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.80 | $ 15.90 | $ 14.87 | $ 15.90 | $ 14.48 | $ 12.81 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .19 J | .24 | .23 | .28 G | .19 | .21 |
Net realized and unrealized gain (loss) | .66 | 3.98 | 1.05 | (1.03) | 1.47 | 1.98 |
Total from investment operations | .85 | 4.22 | 1.28 | (.75) | 1.66 | 2.19 |
Distributions from net investment income | (.23) | (.26) | (.25) | (.25) | (.23) | (.52) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.40) | (.32) | (.25) | (.28) | (.24) | (.52) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.25 | $ 19.80 | $ 15.90 | $ 14.87 | $ 15.90 | $ 14.48 |
Total Return B, C | 4.36% | 27.03% | 8.83% | (4.85)% | 11.55% | 18.45% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .97% A | .99% | 1.00% | .99% | .99% | 1.07% |
Expenses net of fee waivers, if any | .97% A | .99% | 1.00% | .99% | .99% | 1.07% |
Expenses net of all reductions | .97% A | .97% | .99% | .97% | .97% | 1.04% |
Net investment income (loss) | 1.89% A,J | 1.39% | 1.52% | 1.70% G | 1.28% | 1.70% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 679 | $ 636 | $ 546 | $ 723 | $ 1,316 | $ 1,540 |
Portfolio turnover rate F | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
J Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .92%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class Z
| Six months ended April 30, 2014 | Year ended October 31, |
| (Unaudited) | 2013 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 19.81 | $ 18.54 |
Income from Investment Operations | | |
Net investment income (loss) D | .20 J | .03 |
Net realized and unrealized gain (loss) | .67 | 1.24 |
Total from investment operations | .87 | 1.27 |
Distributions from net investment income | (.26) | - |
Distributions from net realized gain | (.17) | - |
Total distributions | (.43) | - |
Redemption fees added to paid in capital D | - I | - |
Net asset value, end of period | $ 20.25 | $ 19.81 |
Total Return B, C | 4.46% | 6.85% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .82% A | .83% A |
Expenses net of fee waivers, if any | .82% A | .83% A |
Expenses net of all reductions | .82% A | .80% A |
Net investment income (loss) | 2.04% A,J | .77% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 112 | $ 107 |
Portfolio turnover rate F | 42% A | 50% |
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 For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.07%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® 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, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Preferred securities and U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The 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
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), deferred trustees compensation, 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 | $ 474,641 |
Gross unrealized depreciation | (48,672) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 425,969 |
| |
Tax cost | $ 1,732,405 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (2,815,359) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $550 and a change in net unrealized appreciation (depreciation) of $(491) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $416,751 and $482,592, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 947 | $ 14 |
Class T | .25% | .25% | 788 | 7 |
Class B | .75% | .25% | 158 | 119 |
Class C | .75% | .25% | 1,312 | 62 |
| | | $ 3,205 | $ 202 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 51 |
Class T | 14 |
Class B* | 10 |
Class C* | 2 |
| $ 77 |
* 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
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 932 | .25 |
Class T | 387 | .25 |
Class B | 48 | .30 |
Class C | 309 | .24 |
Institutional Class | 655 | .20 |
Class Z | -** | .05 |
| $ 2,331 | |
* Annualized
** Amount represents twenty-five dollars.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $429. 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 $322, including three hundred eighty-six dollars from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $19 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 6,853 | $ 9,993 |
Class T | 2,251 | 3,119 |
Class B | - | 218 |
Class C | 979 | 1,491 |
Institutional Class | 7,291 | 8,774 |
Class Z | 1 | - |
Total | $ 17,375 | $ 23,595 |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net realized gain | | |
Class A | $ 6,584 | $ 2,917 |
Class T | 2,789 | 1,167 |
Class B | 307 | 229 |
Class C | 2,390 | 978 |
Institutional Class | 5,493 | 2,051 |
Class Z | 1 | - |
Total | $ 17,564 | $ 7,342 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 A | Six months ended April 30, 2014 | Year ended October 31, 2013 A |
Class A | | | | |
Shares sold | 2,537 | 5,624 | $ 49,772 | $ 97,285 |
Reinvestment of distributions | 646 | 758 | 12,430 | 12,002 |
Shares redeemed | (4,002) | (16,315) | (78,571) | (276,915) |
Net increase (decrease) | (819) | (9,933) | $ (16,369) | $ (167,628) |
Class T | | | | |
Shares sold | 650 | 1,308 | $ 12,666 | $ 22,307 |
Reinvestment of distributions | 249 | 255 | 4,764 | 4,007 |
Shares redeemed | (1,687) | (4,655) | (32,696) | (78,662) |
Net increase (decrease) | (788) | (3,092) | $ (15,266) | $ (52,348) |
Class B | | | | |
Shares sold | 22 | 17 | $ 417 | $ 283 |
Reinvestment of distributions | 15 | 26 | 278 | 396 |
Shares redeemed | (554) | (2,107) | (10,484) | (34,470) |
Net increase (decrease) | (517) | (2,064) | $ (9,789) | $ (33,791) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 A | Six months ended April 30, 2014 | Year ended October 31, 2013 A |
Class C | | | | |
Shares sold | 512 | 787 | $ 9,646 | $ 13,034 |
Reinvestment of distributions | 149 | 129 | 2,754 | 1,968 |
Shares redeemed | (1,156) | (3,176) | (21,722) | (51,899) |
Net increase (decrease) | (495) | (2,260) | $ (9,322) | $ (36,897) |
Institutional Class | | | | |
Shares sold | 3,280 | 4,395 | $ 65,481 | $ 77,113 |
Reinvestment of distributions | 582 | 586 | 11,367 | 9,415 |
Shares redeemed | (2,460) | (7,233) | (49,165) | (126,327) |
Net increase (decrease) | 1,402 | (2,252) | $ 27,683 | $ (39,799) |
Class Z | | | | |
Shares sold | - | 5 | $ - | $ 100 |
Reinvestment of distributions | - | - | 2 | - |
Net increase (decrease) | - | 5 | $ 2 | $ 100 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to April 30, 2014.
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
ADIFI-USAN-0614
1.784872.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Diversified International
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2014
(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.
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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.
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Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.27% | | | |
Actual | | $ 1,000.00 | $ 1,042.20 | $ 6.43 |
HypotheticalA | | $ 1,000.00 | $ 1,018.50 | $ 6.36 |
Class T | 1.52% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ 7.69 |
HypotheticalA | | $ 1,000.00 | $ 1,017.26 | $ 7.60 |
Class B | 2.08% | | | |
Actual | | $ 1,000.00 | $ 1,037.80 | $ 10.51 |
HypotheticalA | | $ 1,000.00 | $ 1,014.48 | $ 10.39 |
Class C | 2.01% | | | |
Actual | | $ 1,000.00 | $ 1,038.60 | $ 10.16 |
HypotheticalA | | $ 1,000.00 | $ 1,014.83 | $ 10.04 |
Institutional Class | .97% | | | |
Actual | | $ 1,000.00 | $ 1,043.60 | $ 4.91 |
HypotheticalA | | $ 1,000.00 | $ 1,019.98 | $ 4.86 |
Class Z | .82% | | | |
Actual | | $ 1,000.00 | $ 1,044.60 | $ 4.16 |
HypotheticalA | | $ 1,000.00 | $ 1,020.73 | $ 4.11 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 1.9 | 1.5 |
Sanofi SA (France, Pharmaceuticals) | 1.8 | 2.5 |
Bayer AG (Germany, Pharmaceuticals) | 1.7 | 1.7 |
ORIX Corp. (Japan, Diversified Financial Services) | 1.6 | 2.1 |
Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.4 | 1.5 |
| 8.4 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 21.1 | 23.0 |
Health Care | 16.1 | 14.4 |
Consumer Discretionary | 15.8 | 18.3 |
Consumer Staples | 11.9 | 11.9 |
Information Technology | 9.8 | 8.9 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United Kingdom | 17.4 | 17.4 |
Japan | 15.3 | 17.7 |
Germany | 8.4 | 9.1 |
United States of America | 7.1 | 7.3 |
France | 6.8 | 8.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 97.7% | | | Stocks and Equity Futures 99.5% | |
| Investment Companies 0.0% | | | Investment Companies 0.3% | |
| Other Investments 0.1% | | | Other Investments 0.0% | |
| Short-Term Investments and Net Other Assets (Liabilities) 2.2% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.2% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.9% |
| Shares | | Value (000s) |
Australia - 3.3% |
ALS Ltd. | 361,681 | | $ 2,520 |
Ansell Ltd. | 258,534 | | 4,345 |
Australia & New Zealand Banking Group Ltd. | 629,890 | | 20,171 |
BHP Billiton Ltd. sponsored ADR (d) | 289,036 | | 20,389 |
CSL Ltd. | 167,531 | | 10,650 |
Telstra Corp. Ltd. | 631,653 | | 3,063 |
Westfield Group unit | 645,269 | | 6,564 |
TOTAL AUSTRALIA | | 67,702 |
Austria - 0.2% |
Andritz AG | 52,900 | | 3,283 |
Bailiwick of Guernsey - 0.5% |
Resolution Ltd. | 2,040,824 | | 10,279 |
Bailiwick of Jersey - 2.0% |
Experian PLC | 756,300 | | 14,506 |
Shire PLC | 163,200 | | 9,334 |
Wolseley PLC | 107,958 | | 6,236 |
WPP PLC | 493,924 | | 10,650 |
TOTAL BAILIWICK OF JERSEY | | 40,726 |
Belgium - 2.9% |
Anheuser-Busch InBev SA NV (d) | 269,031 | | 29,323 |
Arseus NV | 54,000 | | 3,064 |
KBC Groupe SA | 370,977 | | 22,599 |
UCB SA | 54,600 | | 4,476 |
TOTAL BELGIUM | | 59,462 |
Bermuda - 0.1% |
Golar LNG Ltd. (NASDAQ) | 58,700 | | 2,595 |
Canada - 3.9% |
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 515,100 | | 14,517 |
Canadian Natural Resources Ltd. | 189,300 | | 7,713 |
CGI Group, Inc. Class A (sub. vtg.) (a) | 434,300 | | 15,659 |
Constellation Software, Inc. | 29,100 | | 6,445 |
First Quantum Minerals Ltd. | 238,600 | | 4,752 |
Imperial Oil Ltd. | 74,700 | | 3,648 |
Keyera Corp. | 16,800 | | 1,117 |
Potash Corp. of Saskatchewan, Inc. | 214,700 | | 7,761 |
Suncor Energy, Inc. | 265,200 | | 10,230 |
Common Stocks - continued |
| Shares | | Value (000s) |
Canada - continued |
Tourmaline Oil Corp. (a) | 86,300 | | $ 4,468 |
TransForce, Inc. | 104,800 | | 2,288 |
TOTAL CANADA | | 78,598 |
Cayman Islands - 1.6% |
GCL-Poly Energy Holdings Ltd. (a) | 16,510,000 | | 4,940 |
Ginko International Co. Ltd. | 18,000 | | 303 |
Greatview Aseptic Pack Co. Ltd. | 3,658,000 | | 2,232 |
PW Medtech Group Ltd. (a) | 5,181,000 | | 2,419 |
Qihoo 360 Technology Co. Ltd. ADR (a) | 32,400 | | 2,734 |
Sands China Ltd. | 1,533,600 | | 11,196 |
Springland International Holdings Ltd. | 3,559,000 | | 1,400 |
Tencent Holdings Ltd. | 73,100 | | 4,556 |
Yingde Gases Group Co. Ltd. | 1,943,000 | | 1,962 |
TOTAL CAYMAN ISLANDS | | 31,742 |
Denmark - 2.5% |
Genmab A/S (a) | 132,800 | | 4,934 |
ISS Holdings A/S (a) | 70,900 | | 2,468 |
Novo Nordisk A/S Series B | 850,140 | | 38,587 |
Vestas Wind Systems A/S (a) | 106,100 | | 4,709 |
TOTAL DENMARK | | 50,698 |
Finland - 0.3% |
Sampo Oyj (A Shares) (d) | 113,300 | | 5,626 |
France - 6.8% |
Air Liquide SA | 45,300 | | 6,480 |
Arkema SA | 48,400 | | 5,397 |
Atos Origin SA | 48,497 | | 4,187 |
AXA SA | 444,800 | | 11,586 |
BNP Paribas SA | 250,943 | | 18,838 |
Bureau Veritas SA | 297,600 | | 9,083 |
Cap Gemini SA | 69,000 | | 4,873 |
Kering SA | 35,500 | | 7,851 |
LVMH Moet Hennessy - Louis Vuitton SA | 22,468 | | 4,418 |
Publicis Groupe SA | 140,400 | | 11,960 |
Rexel SA | 181,500 | | 4,583 |
Sanofi SA | 330,975 | | 35,719 |
Schneider Electric SA | 72,200 | | 6,766 |
Solocal Group SA (a)(d) | 1,551,900 | | 3,552 |
Tarkett SA | 78,674 | | 2,805 |
TOTAL FRANCE | | 138,098 |
Common Stocks - continued |
| Shares | | Value (000s) |
Germany - 6.7% |
adidas AG | 90,600 | | $ 9,670 |
BASF AG (d) | 149,462 | | 17,300 |
Bayer AG (d) | 255,652 | | 35,468 |
Brenntag AG | 25,200 | | 4,557 |
Continental AG (d) | 34,600 | | 8,105 |
Drillisch AG | 49,200 | | 1,832 |
Fresenius SE & Co. KGaA | 98,100 | | 14,910 |
Gerry Weber International AG (Bearer) | 41,000 | | 2,161 |
Linde AG | 50,347 | | 10,439 |
OSRAM Licht AG (a) | 63,002 | | 3,298 |
ProSiebenSat.1 Media AG | 90,800 | | 3,970 |
SAP AG | 290,897 | | 23,512 |
SMA Solar Technology AG (d) | 28,700 | | 1,200 |
TOTAL GERMANY | | 136,422 |
Greece - 0.1% |
Jumbo SA | 146,641 | | 2,370 |
Hong Kong - 1.5% |
AIA Group Ltd. | 4,322,000 | | 20,961 |
Galaxy Entertainment Group Ltd. | 1,059,000 | | 8,312 |
Melco International Development Ltd. | 247,000 | | 757 |
TOTAL HONG KONG | | 30,030 |
India - 1.8% |
Apollo Hospitals Enterprise Ltd. | 199,507 | | 2,958 |
HDFC Bank Ltd. | 804,283 | | 10,065 |
Housing Development Finance Corp. Ltd. | 609,718 | | 9,077 |
ITC Ltd. | 1,141,123 | | 6,447 |
Lupin Ltd. | 127,912 | | 2,183 |
Pidilite Industries Ltd. | 524,041 | | 2,767 |
United Spirits Ltd. | 85,674 | | 3,932 |
TOTAL INDIA | | 37,429 |
Indonesia - 0.2% |
PT Bank Central Asia Tbk | 2,092,500 | | 1,991 |
PT Bank Rakyat Indonesia Tbk | 2,107,000 | | 1,804 |
TOTAL INDONESIA | | 3,795 |
Ireland - 1.7% |
Actavis PLC (a) | 50,000 | | 10,217 |
Covidien PLC | 2,728 | | 194 |
DCC PLC (United Kingdom) | 71,500 | | 3,661 |
Common Stocks - continued |
| Shares | | Value (000s) |
Ireland - continued |
Greencore Group PLC | 1,069,521 | | $ 4,715 |
Perrigo Co. PLC | 56,900 | | 8,243 |
Ryanair Holdings PLC sponsored ADR (a) | 147,800 | | 7,904 |
TOTAL IRELAND | | 34,934 |
Israel - 0.6% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 247,100 | | 12,073 |
Italy - 0.8% |
UniCredit SpA | 1,153,000 | | 10,302 |
World Duty Free SpA (a) | 446,008 | | 5,974 |
TOTAL ITALY | | 16,276 |
Japan - 15.3% |
ACOM Co. Ltd. (a)(d) | 730,600 | | 2,487 |
Ain Pharmaciez, Inc. | 77,700 | | 3,416 |
Aozora Bank Ltd. | 1,812,000 | | 5,388 |
Astellas Pharma, Inc. | 1,094,700 | | 12,175 |
Coca-Cola Central Japan Co. Ltd. | 115,000 | | 2,585 |
Don Quijote Holdings Co. Ltd. | 206,600 | | 10,872 |
Fuji Heavy Industries Ltd. | 138,000 | | 3,624 |
GMO Internet, Inc. | 281,500 | | 2,481 |
Honda Motor Co. Ltd. sponsored ADR (d) | 366,306 | | 12,198 |
Hoya Corp. | 613,800 | | 18,095 |
Japan Exchange Group, Inc. | 295,500 | | 5,833 |
Japan Tobacco, Inc. | 686,800 | | 22,545 |
KDDI Corp. | 241,700 | | 12,866 |
Keyence Corp. | 46,800 | | 18,029 |
Komatsu Ltd. | 396,800 | | 8,736 |
Leopalace21 Corp. (a) | 500,100 | | 2,583 |
Medical System Network Co. Ltd. (d) | 752,500 | | 3,217 |
Mitsubishi Electric Corp. | 436,000 | | 4,960 |
Mitsubishi UFJ Financial Group, Inc. | 2,077,500 | | 11,051 |
Nagaileben Co. Ltd. | 117,000 | | 2,252 |
Nakanishi, Inc. | 68,000 | | 2,321 |
NEC Corp. | 2,690,000 | | 7,552 |
Nippon Telegraph & Telephone Corp. | 90,200 | | 5,005 |
Nitori Holdings Co. Ltd. | 73,000 | | 3,345 |
Olympus Corp. (a) | 69,200 | | 2,112 |
OMRON Corp. | 151,700 | | 5,357 |
ORIX Corp. | 2,280,900 | | 32,952 |
Park24 Co. Ltd. | 116,100 | | 2,119 |
Rakuten, Inc. | 1,286,800 | | 16,640 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Sanix, Inc. (a)(d) | 338,800 | | $ 4,000 |
Seven & i Holdings Co., Ltd. | 224,200 | | 8,840 |
SHIMANO, Inc. | 53,700 | | 5,358 |
Shinsei Bank Ltd. | 1,985,000 | | 3,864 |
Ship Healthcare Holdings, Inc. | 95,400 | | 3,247 |
SoftBank Corp. | 362,600 | | 26,920 |
Sumitomo Mitsui Financial Group, Inc. | 124,900 | | 4,937 |
Toshiba Plant Systems & Services Corp. | 299,700 | | 4,406 |
Tsuruha Holdings, Inc. | 49,800 | | 5,008 |
VT Holdings Co. Ltd. | 366,900 | | 2,103 |
TOTAL JAPAN | | 311,479 |
Kenya - 0.2% |
Safaricom Ltd. | 31,403,100 | | 4,728 |
Korea (South) - 1.0% |
Hyundai Motor Co. | 14,250 | | 3,172 |
Naver Corp. | 13,379 | | 9,557 |
Orion Corp. | 6,412 | | 4,891 |
Samsung Electronics Co. Ltd. | 1,538 | | 1,999 |
TOTAL KOREA (SOUTH) | | 19,619 |
Luxembourg - 1.2% |
Altice S.A. (d) | 244,977 | | 13,999 |
Eurofins Scientific SA | 38,800 | | 10,766 |
TOTAL LUXEMBOURG | | 24,765 |
Marshall Islands - 0.1% |
Navigator Holdings Ltd. (a) | 62,300 | | 1,663 |
Netherlands - 3.2% |
AEGON NV | 2,212,100 | | 20,277 |
AerCap Holdings NV (a) | 77,600 | | 3,238 |
Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 169,600 | | 5,420 |
LyondellBasell Industries NV Class A | 88,700 | | 8,205 |
Royal DSM NV | 74,800 | | 5,363 |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 524,200 | | 22,478 |
TOTAL NETHERLANDS | | 64,981 |
New Zealand - 0.2% |
Ryman Healthcare Group Ltd. | 388,844 | | 2,900 |
Common Stocks - continued |
| Shares | | Value (000s) |
Norway - 0.5% |
BW LPG Ltd. (a)(d) | 403,565 | | $ 5,160 |
Telenor ASA | 247,800 | | 5,815 |
TOTAL NORWAY | | 10,975 |
Singapore - 0.6% |
Ezion Holdings Ltd. | 1,233,000 | | 2,233 |
Global Logistic Properties Ltd. | 2,237,000 | | 5,085 |
United Overseas Bank Ltd. | 329,000 | | 5,710 |
TOTAL SINGAPORE | | 13,028 |
South Africa - 1.0% |
Nampak Ltd. | 1,307,800 | | 4,873 |
Naspers Ltd. Class N | 167,500 | | 15,794 |
TOTAL SOUTH AFRICA | | 20,667 |
Spain - 2.2% |
Amadeus IT Holding SA Class A | 217,500 | | 9,039 |
Atresmedia Corporacion de Medios de Comunicacion SA | 109,182 | | 1,565 |
Criteria CaixaCorp SA | 1,038,562 | | 6,325 |
Grifols SA ADR | 160,519 | | 6,588 |
Inditex SA | 140,065 | | 21,016 |
TOTAL SPAIN | | 44,533 |
Sweden - 2.2% |
ASSA ABLOY AB (B Shares) | 100,600 | | 5,325 |
Nordea Bank AB | 881,000 | | 12,730 |
Svenska Cellulosa AB (SCA) (B Shares) | 599,600 | | 16,792 |
Svenska Handelsbanken AB (A Shares) | 212,000 | | 10,639 |
TOTAL SWEDEN | | 45,486 |
Switzerland - 5.4% |
Actelion Ltd. | 47,876 | | 4,703 |
Compagnie Financiere Richemont SA Series A | 113,494 | | 11,516 |
Nestle SA | 372,149 | | 28,761 |
Roche Holding AG (participation certificate) | 49,497 | | 14,520 |
Syngenta AG (Switzerland) | 55,402 | | 21,939 |
UBS AG | 1,389,224 | | 29,054 |
TOTAL SWITZERLAND | | 110,493 |
Taiwan - 0.9% |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 894,700 | | 17,983 |
Thailand - 0.1% |
Kasikornbank PCL (For. Reg.) | 399,200 | | 2,424 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - 17.4% |
Alabama Noor Hospitals Group PLC | 209,300 | | $ 3,527 |
Associated British Foods PLC | 163,300 | | 8,192 |
Barclays PLC | 1,011,180 | | 4,318 |
BG Group PLC | 1,008,869 | | 20,406 |
British American Tobacco PLC sponsored ADR | 161,400 | | 18,564 |
BT Group PLC | 1,807,400 | | 11,283 |
Bunzl PLC | 104,200 | | 2,957 |
Compass Group PLC | 430,100 | | 6,841 |
Diploma PLC | 350,900 | | 3,901 |
Direct Line Insurance Group PLC | 603,300 | | 2,550 |
Dunelm Group PLC | 394,400 | | 6,236 |
easyJet PLC | 192,200 | | 5,312 |
Exova Group Ltd. PLC (a) | 644,700 | | 2,397 |
Filtrona PLC | 706,200 | | 9,539 |
GlaxoSmithKline PLC | 380,100 | | 10,502 |
Hikma Pharmaceuticals PLC | 238,987 | | 6,262 |
HSBC Holdings PLC sponsored ADR | 433,497 | | 22,247 |
IMI PLC | 189,700 | | 4,804 |
InterContinental Hotel Group PLC | 103,180 | | 3,526 |
ITV PLC | 1,404,900 | | 4,317 |
Jazztel PLC (a) | 218,400 | | 3,351 |
Johnson Matthey PLC | 111,500 | | 6,162 |
Kingfisher PLC | 1,982,200 | | 13,993 |
Liberty Global PLC: | | | |
Class A (a) | 48,700 | | 1,939 |
Class C | 48,700 | | 1,872 |
Lloyds Banking Group PLC (a) | 15,282,100 | | 19,488 |
Meggitt PLC | 504,800 | | 4,063 |
Next PLC | 199,300 | | 21,940 |
Poundland Group PLC (a) | 338,134 | | 1,984 |
Prudential PLC | 1,066,210 | | 24,511 |
Reckitt Benckiser Group PLC | 177,313 | | 14,295 |
Reed Elsevier PLC | 280,300 | | 4,127 |
Rolls-Royce Group PLC | 726,000 | | 12,871 |
SABMiller PLC | 99,100 | | 5,389 |
Spectris PLC | 121,000 | | 4,546 |
St. James's Place Capital PLC | 897,100 | | 11,663 |
Standard Chartered PLC (United Kingdom) | 620,366 | | 13,423 |
Travis Perkins PLC | 220,300 | | 6,342 |
Vodafone Group PLC sponsored ADR | 407,981 | | 15,487 |
Whitbread PLC | 116,872 | | 8,051 |
TOTAL UNITED KINGDOM | | 353,178 |
Common Stocks - continued |
| Shares | | Value (000s) |
United States of America - 6.9% |
AbbVie, Inc. | 200,800 | | $ 10,458 |
Accuray, Inc. (a)(d) | 537,600 | | 4,516 |
Alexion Pharmaceuticals, Inc. (a) | 47,600 | | 7,530 |
Amgen, Inc. | 41,600 | | 4,649 |
Boston Scientific Corp. (a) | 228,000 | | 2,875 |
Celldex Therapeutics, Inc. (a) | 41,800 | | 627 |
Citigroup, Inc. | 63,000 | | 3,018 |
Fidelity National Information Services, Inc. | 75,200 | | 4,018 |
FMC Corp. | 26,500 | | 2,041 |
Gilead Sciences, Inc. (a) | 136,500 | | 10,714 |
Google, Inc.: | | | |
Class A (a) | 8,395 | | 4,490 |
Class C (a) | 8,395 | | 4,421 |
Las Vegas Sands Corp. | 133,000 | | 10,524 |
MasterCard, Inc. Class A | 144,800 | | 10,650 |
McGraw Hill Financial, Inc. | 159,200 | | 11,770 |
Mondelez International, Inc. | 116,400 | | 4,150 |
Monsanto Co. | 44,600 | | 4,937 |
Noble Energy, Inc. | 151,200 | | 10,853 |
PriceSmart, Inc. | 19,800 | | 1,902 |
ResMed, Inc. | 77,700 | | 3,873 |
The Blackstone Group LP | 146,100 | | 4,314 |
Verizon Communications, Inc. | 175,495 | | 8,201 |
Visa, Inc. Class A | 49,600 | | 10,049 |
TOTAL UNITED STATES OF AMERICA | | 140,580 |
TOTAL COMMON STOCKS (Cost $1,513,178) | 1,951,620
|
Preferred Stocks - 1.8% |
| | | |
Convertible Preferred Stocks - 0.1% |
United States of America - 0.1% |
NJOY, Inc.: | | | |
Series C (g) | 60,264 | | 1,020 |
Series D (g) | 18,951 | | 321 |
TOTAL UNITED STATES OF AMERICA | | 1,341 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Nonconvertible Preferred Stocks - 1.7% |
Germany - 1.7% |
Henkel AG & Co. KGaA | 131,700 | | $ 14,666 |
Volkswagen AG | 77,600 | | 20,896 |
TOTAL GERMANY | | 35,562 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC (C Shares) | 97,284,000 | | 164 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | | 35,726 |
TOTAL PREFERRED STOCKS (Cost $22,933) | 37,067
|
Government Obligations - 0.1% |
| Principal Amount (000s) | | |
United States of America - 0.1% |
U.S. Treasury Bills, yield at date of purchase 0.04% to 0.06% 5/8/14 to 5/29/14 (Cost $755) | | $ 755 | | 755
|
Preferred Securities - 0.1% |
| | | |
Ireland - 0.1% |
Baggot Securities Ltd. 10.24% (e)(f) (Cost $2,488) | 1,620 | | 2,504
|
Money Market Funds - 8.2% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.11% (b) | 41,344,765 | | $ 41,345 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 125,083,313 | | 125,083 |
TOTAL MONEY MARKET FUNDS (Cost $166,428) | 166,428
|
TOTAL INVESTMENT PORTFOLIO - 106.1% (Cost $1,705,782) | | 2,158,374 |
NET OTHER ASSETS (LIABILITIES) - (6.1)% | | (123,894) |
NET ASSETS - 100% | $ 2,034,480 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,504,000 or 0.1% of net assets. |
(f) Security is perpetual in nature with no stated maturity date. |
(g) 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 $1,341,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
NJOY, Inc. Series C | 6/7/13 | $ 487 |
NJOY, Inc. Series D | 2/14/14 | $ 321 |
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 | $ 15 |
Fidelity Securities Lending Cash Central Fund | 322 |
Total | $ 337 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment 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 | $ 321,135 | $ 305,618 | $ 14,176 | $ 1,341 |
Consumer Staples | 244,625 | 164,063 | 80,562 | - |
Energy | 70,086 | 70,086 | - | - |
Financials | 428,504 | 304,803 | 123,701 | - |
Health Care | 327,194 | 216,349 | 110,845 | - |
Industrials | 159,682 | 150,946 | 8,736 | - |
Information Technology | 196,372 | 172,860 | 23,512 | - |
Materials | 142,538 | 120,599 | 21,939 | - |
Telecommunication Services | 98,551 | 82,263 | 16,288 | - |
Government Obligations | 755 | - | 755 | - |
Preferred Securities | 2,504 | - | 2,504 | - |
Money Market Funds | 166,428 | 166,428 | - | - |
Total Investments in Securities: | $ 2,158,374 | $ 1,754,015 | $ 403,018 | $ 1,341 |
The following is a summary of transfers between Level 1 and Level 2 for the period endedApril 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total (000s) |
Level 1 to Level 2 | $ 24,921 |
Level 2 to Level 1 | $ 245,280 |
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, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $118,495) - See accompanying schedule: Unaffiliated issuers (cost $1,539,354) | $ 1,991,946 | |
Fidelity Central Funds (cost $166,428) | 166,428 | |
Total Investments (cost $1,705,782) | | $ 2,158,374 |
Foreign currency held at value (cost $21) | | 31 |
Receivable for investments sold | | 3,513 |
Receivable for fund shares sold | | 1,194 |
Dividends receivable | | 8,881 |
Distributions receivable from Fidelity Central Funds | | 132 |
Prepaid expenses | | 1 |
Other receivables | | 91 |
Total assets | | 2,172,217 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,228 | |
Payable for fund shares redeemed | 4,774 | |
Accrued management fee | 1,180 | |
Distribution and service plan fees payable | 525 | |
Other affiliated payables | 459 | |
Other payables and accrued expenses | 2,488 | |
Collateral on securities loaned, at value | 125,083 | |
Total liabilities | | 137,737 |
| | |
Net Assets | | $ 2,034,480 |
Net Assets consist of: | | |
Paid in capital | | $ 4,304,998 |
Undistributed net investment income | | 15,454 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,736,228) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 450,256 |
Net Assets | | $ 2,034,480 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($756,997.1 ÷ 37,992.28 shares) | | $ 19.93 |
| | |
Maximum offering price per share (100/94.25 of $19.93) | | $ 21.15 |
Class T: Net Asset Value and redemption price per share ($311,139.3 ÷ 15,738.21 shares) | | $ 19.77 |
| | |
Maximum offering price per share (100/96.50 of $19.77) | | $ 20.49 |
Class B: Net Asset Value and offering price per share ($26,719.9 ÷ 1,393.17 shares)A | | $ 19.18 |
| | |
Class C: Net Asset Value and offering price per share ($260,844.2 ÷ 13,659.84 shares)A | | $ 19.10 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($678,667.7 ÷ 33,506.31 shares) | | $ 20.25 |
| | |
Class Z: Net Asset Value, offering price and redemption price per share ($111.6 ÷ 5.51 shares) | | $ 20.25 |
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
Amounts in thousands Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 20,138 |
Special dividends | | 9,777 |
Income from Fidelity Central Funds | | 337 |
Income before foreign taxes withheld | | 30,252 |
Less foreign taxes withheld | | (1,369) |
Total income | | 28,883 |
| | |
Expenses | | |
Management fee | $ 7,076 | |
Transfer agent fees | 2,331 | |
Distribution and service plan fees | 3,205 | |
Accounting and security lending fees | 448 | |
Custodian fees and expenses | 131 | |
Independent trustees' compensation | 4 | |
Registration fees | 98 | |
Audit | 44 | |
Legal | 5 | |
Miscellaneous | 10 | |
Total expenses before reductions | 13,352 | |
Expense reductions | (19) | 13,333 |
Net investment income (loss) | | 15,550 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 106,559 | |
Foreign currency transactions | (48) | |
Futures contracts | 550 | |
Total net realized gain (loss) | | 107,061 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (39,527) | |
Assets and liabilities in foreign currencies | 67 | |
Futures contracts | (491) | |
Total change in net unrealized appreciation (depreciation) | | (39,951) |
Net gain (loss) | | 67,110 |
Net increase (decrease) in net assets resulting from operations | | $ 82,660 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 15,550 | $ 19,442 |
Net realized gain (loss) | 107,061 | 196,674 |
Change in net unrealized appreciation (depreciation) | (39,951) | 237,976 |
Net increase (decrease) in net assets resulting from operations | 82,660 | 454,092 |
Distributions to shareholders from net investment income | (17,375) | (23,595) |
Distributions to shareholders from net realized gain | (17,564) | (7,342) |
Total distributions | (34,939) | (30,937) |
Share transactions - net increase (decrease) | (23,061) | (330,363) |
Redemption fees | 13 | 17 |
Total increase (decrease) in net assets | 24,673 | 92,809 |
| | |
Net Assets | | |
Beginning of period | 2,009,807 | 1,916,998 |
End of period (including undistributed net investment income of $15,454 and undistributed net investment income of $17,279, respectively) | $ 2,034,480 | $ 2,009,807 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.47 | $ 15.63 | $ 14.61 | $ 15.63 | $ 14.25 | $ 12.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .16 K | .19 | .18 | .22 H | .14 | .17 |
Net realized and unrealized gain (loss) | .65 | 3.92 | 1.03 | (1.01) | 1.44 | 1.96 |
Total from investment operations | .81 | 4.11 | 1.21 | (.79) | 1.58 | 2.13 |
Distributions from net investment income | (.18) | (.21) | (.19) | (.20) | (.19) | (.45) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.35) | (.27) | (.19) | (.23) | (.20) | (.45) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.93 | $ 19.47 | $ 15.63 | $ 14.61 | $ 15.63 | $ 14.25 |
Total Return B, C, D | 4.22% | 26.69% | 8.47% | (5.15)% | 11.17% | 18.16% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.27% A | 1.31% | 1.32% | 1.31% | 1.32% | 1.34% |
Expenses net of fee waivers, if any | 1.27% A | 1.30% | 1.32% | 1.31% | 1.32% | 1.34% |
Expenses net of all reductions | 1.27% A | 1.28% | 1.31% | 1.29% | 1.30% | 1.31% |
Net investment income (loss) | 1.59% A,K | 1.08% | 1.20% | 1.38% H | .95% | 1.43% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 757 | $ 756 | $ 762 | $ 916 | $ 1,302 | $ 1,662 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
K Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .62%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.30 | $ 15.49 | $ 14.46 | $ 15.47 | $ 14.11 | $ 12.42 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .13 L | .14 | .14 | .18 H | .10 | .14 |
Net realized and unrealized gain (loss) | .65 | 3.89 | 1.03 | (.99) | 1.43 | 1.94 |
Total from investment operations | .78 | 4.03 | 1.17 | (.81) | 1.53 | 2.08 |
Distributions from net investment income | (.14) | (.16) | (.14) | (.16) | (.16) | (.39) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.31) | (.22) | (.14) | (.20) K | (.17) | (.39) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.77 | $ 19.30 | $ 15.49 | $ 14.46 | $ 15.47 | $ 14.11 |
Total Return B, C, D | 4.09% | 26.37% | 8.17% | (5.35)% | 10.88% | 17.84% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.52% A | 1.55% | 1.58% | 1.55% | 1.55% | 1.58% |
Expenses net of fee waivers, if any | 1.52% A | 1.55% | 1.58% | 1.55% | 1.55% | 1.58% |
Expenses net of all reductions | 1.52% A | 1.53% | 1.57% | 1.53% | 1.53% | 1.55% |
Net investment income (loss) | 1.34% A,L | .83% | .94% | 1.14% H | .71% | 1.19% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 311 | $ 319 | $ 304 | $ 404 | $ 621 | $ 832 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
L Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .37%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.65 | $ 14.95 | $ 13.91 | $ 14.91 | $ 13.61 | $ 11.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 K | .05 | .06 | .09 H | .02 | .08 |
Net realized and unrealized gain (loss) | .63 | 3.77 | 1.00 | (.96) | 1.38 | 1.88 |
Total from investment operations | .70 | 3.82 | 1.06 | (.87) | 1.40 | 1.96 |
Distributions from net investment income | - | (.06) | (.02) | (.10) | (.09) | (.30) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.17) | (.12) | (.02) | (.13) | (.10) | (.30) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.18 | $ 18.65 | $ 14.95 | $ 13.91 | $ 14.91 | $ 13.61 |
Total Return B, C, D | 3.78% | 25.72% | 7.64% | (5.89)% | 10.34% | 17.25% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.08% A | 2.08% | 2.08% | 2.08% | 2.09% | 2.10% |
Expenses net of fee waivers, if any | 2.08% A | 2.08% | 2.08% | 2.08% | 2.09% | 2.10% |
Expenses net of all reductions | 2.08% A | 2.06% | 2.07% | 2.06% | 2.07% | 2.07% |
Net investment income (loss) | .78% A,K | .30% | .44% | .61% H | .18% | .67% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 27 | $ 36 | $ 59 | $ 94 | $ 157 | $ 191 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
K Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.18)%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.63 | $ 14.97 | $ 13.95 | $ 14.95 | $ 13.65 | $ 11.98 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 K | .06 | .06 | .10 H | .03 | .08 |
Net realized and unrealized gain (loss) | .63 | 3.75 | 1.01 | (.96) | 1.38 | 1.89 |
Total from investment operations | .71 | 3.81 | 1.07 | (.86) | 1.41 | 1.97 |
Distributions from net investment income | (.07) | (.09) | (.05) | (.11) | (.10) | (.30) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.24) | (.15) | (.05) | (.14) | (.11) | (.30) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.10 | $ 18.63 | $ 14.97 | $ 13.95 | $ 14.95 | $ 13.65 |
Total Return B, C, D | 3.86% | 25.71% | 7.71% | (5.83)% | 10.32% | 17.24% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.01% A | 2.04% | 2.06% | 2.05% | 2.06% | 2.09% |
Expenses net of fee waivers, if any | 2.01% A | 2.04% | 2.06% | 2.05% | 2.06% | 2.09% |
Expenses net of all reductions | 2.01% A | 2.01% | 2.05% | 2.03% | 2.04% | 2.06% |
Net investment income (loss) | .85% A,K | .35% | .46% | .64% H | .21% | .68% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 261 | $ 264 | $ 246 | $ 302 | $ 419 | $ 502 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
K Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.12)%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.80 | $ 15.90 | $ 14.87 | $ 15.90 | $ 14.48 | $ 12.81 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .19 J | .24 | .23 | .28 G | .19 | .21 |
Net realized and unrealized gain (loss) | .66 | 3.98 | 1.05 | (1.03) | 1.47 | 1.98 |
Total from investment operations | .85 | 4.22 | 1.28 | (.75) | 1.66 | 2.19 |
Distributions from net investment income | (.23) | (.26) | (.25) | (.25) | (.23) | (.52) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.40) | (.32) | (.25) | (.28) | (.24) | (.52) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.25 | $ 19.80 | $ 15.90 | $ 14.87 | $ 15.90 | $ 14.48 |
Total Return B, C | 4.36% | 27.03% | 8.83% | (4.85)% | 11.55% | 18.45% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .97% A | .99% | 1.00% | .99% | .99% | 1.07% |
Expenses net of fee waivers, if any | .97% A | .99% | 1.00% | .99% | .99% | 1.07% |
Expenses net of all reductions | .97% A | .97% | .99% | .97% | .97% | 1.04% |
Net investment income (loss) | 1.89% A,J | 1.39% | 1.52% | 1.70% G | 1.28% | 1.70% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 679 | $ 636 | $ 546 | $ 723 | $ 1,316 | $ 1,540 |
Portfolio turnover rate F | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
J Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .92%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class Z
| Six months ended April 30, 2014 | Year ended October 31, |
| (Unaudited) | 2013 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 19.81 | $ 18.54 |
Income from Investment Operations | | |
Net investment income (loss) D | .20 J | .03 |
Net realized and unrealized gain (loss) | .67 | 1.24 |
Total from investment operations | .87 | 1.27 |
Distributions from net investment income | (.26) | - |
Distributions from net realized gain | (.17) | - |
Total distributions | (.43) | - |
Redemption fees added to paid in capital D | - I | - |
Net asset value, end of period | $ 20.25 | $ 19.81 |
Total Return B, C | 4.46% | 6.85% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .82% A | .83% A |
Expenses net of fee waivers, if any | .82% A | �� .83% A |
Expenses net of all reductions | .82% A | .80% A |
Net investment income (loss) | 2.04% A,J | .77% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 112 | $ 107 |
Portfolio turnover rate F | 42% A | 50% |
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 For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.07%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® 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, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Preferred securities and U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The 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
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), deferred trustees compensation, 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 | $ 474,641 |
Gross unrealized depreciation | (48,672) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 425,969 |
| |
Tax cost | $ 1,732,405 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (2,815,359) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $550 and a change in net unrealized appreciation (depreciation) of $(491) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $416,751 and $482,592, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 947 | $ 14 |
Class T | .25% | .25% | 788 | 7 |
Class B | .75% | .25% | 158 | 119 |
Class C | .75% | .25% | 1,312 | 62 |
| | | $ 3,205 | $ 202 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 51 |
Class T | 14 |
Class B* | 10 |
Class C* | 2 |
| $ 77 |
* 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
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 932 | .25 |
Class T | 387 | .25 |
Class B | 48 | .30 |
Class C | 309 | .24 |
Institutional Class | 655 | .20 |
Class Z | -** | .05 |
| $ 2,331 | |
* Annualized
** Amount represents twenty-five dollars.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $429. 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 $322, including three hundred eighty-six dollars from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $19 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 6,853 | $ 9,993 |
Class T | 2,251 | 3,119 |
Class B | - | 218 |
Class C | 979 | 1,491 |
Institutional Class | 7,291 | 8,774 |
Class Z | 1 | - |
Total | $ 17,375 | $ 23,595 |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net realized gain | | |
Class A | $ 6,584 | $ 2,917 |
Class T | 2,789 | 1,167 |
Class B | 307 | 229 |
Class C | 2,390 | 978 |
Institutional Class | 5,493 | 2,051 |
Class Z | 1 | - |
Total | $ 17,564 | $ 7,342 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 A | Six months ended April 30, 2014 | Year ended October 31, 2013 A |
Class A | | | | |
Shares sold | 2,537 | 5,624 | $ 49,772 | $ 97,285 |
Reinvestment of distributions | 646 | 758 | 12,430 | 12,002 |
Shares redeemed | (4,002) | (16,315) | (78,571) | (276,915) |
Net increase (decrease) | (819) | (9,933) | $ (16,369) | $ (167,628) |
Class T | | | | |
Shares sold | 650 | 1,308 | $ 12,666 | $ 22,307 |
Reinvestment of distributions | 249 | 255 | 4,764 | 4,007 |
Shares redeemed | (1,687) | (4,655) | (32,696) | (78,662) |
Net increase (decrease) | (788) | (3,092) | $ (15,266) | $ (52,348) |
Class B | | | | |
Shares sold | 22 | 17 | $ 417 | $ 283 |
Reinvestment of distributions | 15 | 26 | 278 | 396 |
Shares redeemed | (554) | (2,107) | (10,484) | (34,470) |
Net increase (decrease) | (517) | (2,064) | $ (9,789) | $ (33,791) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 A | Six months ended April 30, 2014 | Year ended October 31, 2013 A |
Class C | | | | |
Shares sold | 512 | 787 | $ 9,646 | $ 13,034 |
Reinvestment of distributions | 149 | 129 | 2,754 | 1,968 |
Shares redeemed | (1,156) | (3,176) | (21,722) | (51,899) |
Net increase (decrease) | (495) | (2,260) | $ (9,322) | $ (36,897) |
Institutional Class | | | | |
Shares sold | 3,280 | 4,395 | $ 65,481 | $ 77,113 |
Reinvestment of distributions | 582 | 586 | 11,367 | 9,415 |
Shares redeemed | (2,460) | (7,233) | (49,165) | (126,327) |
Net increase (decrease) | 1,402 | (2,252) | $ 27,683 | $ (39,799) |
Class Z | | | | |
Shares sold | - | 5 | $ - | $ 100 |
Reinvestment of distributions | - | - | 2 | - |
Net increase (decrease) | - | 5 | $ 2 | $ 100 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to April 30, 2014.
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
ADIF-USAN-0614
1.784871.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Diversified International
Fund - Class Z
Semiannual Report
April 30, 2014
(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.
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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.
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Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.27% | | | |
Actual | | $ 1,000.00 | $ 1,042.20 | $ 6.43 |
HypotheticalA | | $ 1,000.00 | $ 1,018.50 | $ 6.36 |
Class T | 1.52% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ 7.69 |
HypotheticalA | | $ 1,000.00 | $ 1,017.26 | $ 7.60 |
Class B | 2.08% | | | |
Actual | | $ 1,000.00 | $ 1,037.80 | $ 10.51 |
HypotheticalA | | $ 1,000.00 | $ 1,014.48 | $ 10.39 |
Class C | 2.01% | | | |
Actual | | $ 1,000.00 | $ 1,038.60 | $ 10.16 |
HypotheticalA | | $ 1,000.00 | $ 1,014.83 | $ 10.04 |
Institutional Class | .97% | | | |
Actual | | $ 1,000.00 | $ 1,043.60 | $ 4.91 |
HypotheticalA | | $ 1,000.00 | $ 1,019.98 | $ 4.86 |
Class Z | .82% | | | |
Actual | | $ 1,000.00 | $ 1,044.60 | $ 4.16 |
HypotheticalA | | $ 1,000.00 | $ 1,020.73 | $ 4.11 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 1.9 | 1.5 |
Sanofi SA (France, Pharmaceuticals) | 1.8 | 2.5 |
Bayer AG (Germany, Pharmaceuticals) | 1.7 | 1.7 |
ORIX Corp. (Japan, Diversified Financial Services) | 1.6 | 2.1 |
Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.4 | 1.5 |
| 8.4 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 21.1 | 23.0 |
Health Care | 16.1 | 14.4 |
Consumer Discretionary | 15.8 | 18.3 |
Consumer Staples | 11.9 | 11.9 |
Information Technology | 9.8 | 8.9 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United Kingdom | 17.4 | 17.4 |
Japan | 15.3 | 17.7 |
Germany | 8.4 | 9.1 |
United States of America | 7.1 | 7.3 |
France | 6.8 | 8.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 97.7% | | | Stocks and Equity Futures 99.5% | |
| Investment Companies 0.0% | | | Investment Companies 0.3% | |
| Other Investments 0.1% | | | Other Investments 0.0% | |
| Short-Term Investments and Net Other Assets (Liabilities) 2.2% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.2% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.9% |
| Shares | | Value (000s) |
Australia - 3.3% |
ALS Ltd. | 361,681 | | $ 2,520 |
Ansell Ltd. | 258,534 | | 4,345 |
Australia & New Zealand Banking Group Ltd. | 629,890 | | 20,171 |
BHP Billiton Ltd. sponsored ADR (d) | 289,036 | | 20,389 |
CSL Ltd. | 167,531 | | 10,650 |
Telstra Corp. Ltd. | 631,653 | | 3,063 |
Westfield Group unit | 645,269 | | 6,564 |
TOTAL AUSTRALIA | | 67,702 |
Austria - 0.2% |
Andritz AG | 52,900 | | 3,283 |
Bailiwick of Guernsey - 0.5% |
Resolution Ltd. | 2,040,824 | | 10,279 |
Bailiwick of Jersey - 2.0% |
Experian PLC | 756,300 | | 14,506 |
Shire PLC | 163,200 | | 9,334 |
Wolseley PLC | 107,958 | | 6,236 |
WPP PLC | 493,924 | | 10,650 |
TOTAL BAILIWICK OF JERSEY | | 40,726 |
Belgium - 2.9% |
Anheuser-Busch InBev SA NV (d) | 269,031 | | 29,323 |
Arseus NV | 54,000 | | 3,064 |
KBC Groupe SA | 370,977 | | 22,599 |
UCB SA | 54,600 | | 4,476 |
TOTAL BELGIUM | | 59,462 |
Bermuda - 0.1% |
Golar LNG Ltd. (NASDAQ) | 58,700 | | 2,595 |
Canada - 3.9% |
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 515,100 | | 14,517 |
Canadian Natural Resources Ltd. | 189,300 | | 7,713 |
CGI Group, Inc. Class A (sub. vtg.) (a) | 434,300 | | 15,659 |
Constellation Software, Inc. | 29,100 | | 6,445 |
First Quantum Minerals Ltd. | 238,600 | | 4,752 |
Imperial Oil Ltd. | 74,700 | | 3,648 |
Keyera Corp. | 16,800 | | 1,117 |
Potash Corp. of Saskatchewan, Inc. | 214,700 | | 7,761 |
Suncor Energy, Inc. | 265,200 | | 10,230 |
Common Stocks - continued |
| Shares | | Value (000s) |
Canada - continued |
Tourmaline Oil Corp. (a) | 86,300 | | $ 4,468 |
TransForce, Inc. | 104,800 | | 2,288 |
TOTAL CANADA | | 78,598 |
Cayman Islands - 1.6% |
GCL-Poly Energy Holdings Ltd. (a) | 16,510,000 | | 4,940 |
Ginko International Co. Ltd. | 18,000 | | 303 |
Greatview Aseptic Pack Co. Ltd. | 3,658,000 | | 2,232 |
PW Medtech Group Ltd. (a) | 5,181,000 | | 2,419 |
Qihoo 360 Technology Co. Ltd. ADR (a) | 32,400 | | 2,734 |
Sands China Ltd. | 1,533,600 | | 11,196 |
Springland International Holdings Ltd. | 3,559,000 | | 1,400 |
Tencent Holdings Ltd. | 73,100 | | 4,556 |
Yingde Gases Group Co. Ltd. | 1,943,000 | | 1,962 |
TOTAL CAYMAN ISLANDS | | 31,742 |
Denmark - 2.5% |
Genmab A/S (a) | 132,800 | | 4,934 |
ISS Holdings A/S (a) | 70,900 | | 2,468 |
Novo Nordisk A/S Series B | 850,140 | | 38,587 |
Vestas Wind Systems A/S (a) | 106,100 | | 4,709 |
TOTAL DENMARK | | 50,698 |
Finland - 0.3% |
Sampo Oyj (A Shares) (d) | 113,300 | | 5,626 |
France - 6.8% |
Air Liquide SA | 45,300 | | 6,480 |
Arkema SA | 48,400 | | 5,397 |
Atos Origin SA | 48,497 | | 4,187 |
AXA SA | 444,800 | | 11,586 |
BNP Paribas SA | 250,943 | | 18,838 |
Bureau Veritas SA | 297,600 | | 9,083 |
Cap Gemini SA | 69,000 | | 4,873 |
Kering SA | 35,500 | | 7,851 |
LVMH Moet Hennessy - Louis Vuitton SA | 22,468 | | 4,418 |
Publicis Groupe SA | 140,400 | | 11,960 |
Rexel SA | 181,500 | | 4,583 |
Sanofi SA | 330,975 | | 35,719 |
Schneider Electric SA | 72,200 | | 6,766 |
Solocal Group SA (a)(d) | 1,551,900 | | 3,552 |
Tarkett SA | 78,674 | | 2,805 |
TOTAL FRANCE | | 138,098 |
Common Stocks - continued |
| Shares | | Value (000s) |
Germany - 6.7% |
adidas AG | 90,600 | | $ 9,670 |
BASF AG (d) | 149,462 | | 17,300 |
Bayer AG (d) | 255,652 | | 35,468 |
Brenntag AG | 25,200 | | 4,557 |
Continental AG (d) | 34,600 | | 8,105 |
Drillisch AG | 49,200 | | 1,832 |
Fresenius SE & Co. KGaA | 98,100 | | 14,910 |
Gerry Weber International AG (Bearer) | 41,000 | | 2,161 |
Linde AG | 50,347 | | 10,439 |
OSRAM Licht AG (a) | 63,002 | | 3,298 |
ProSiebenSat.1 Media AG | 90,800 | | 3,970 |
SAP AG | 290,897 | | 23,512 |
SMA Solar Technology AG (d) | 28,700 | | 1,200 |
TOTAL GERMANY | | 136,422 |
Greece - 0.1% |
Jumbo SA | 146,641 | | 2,370 |
Hong Kong - 1.5% |
AIA Group Ltd. | 4,322,000 | | 20,961 |
Galaxy Entertainment Group Ltd. | 1,059,000 | | 8,312 |
Melco International Development Ltd. | 247,000 | | 757 |
TOTAL HONG KONG | | 30,030 |
India - 1.8% |
Apollo Hospitals Enterprise Ltd. | 199,507 | | 2,958 |
HDFC Bank Ltd. | 804,283 | | 10,065 |
Housing Development Finance Corp. Ltd. | 609,718 | | 9,077 |
ITC Ltd. | 1,141,123 | | 6,447 |
Lupin Ltd. | 127,912 | | 2,183 |
Pidilite Industries Ltd. | 524,041 | | 2,767 |
United Spirits Ltd. | 85,674 | | 3,932 |
TOTAL INDIA | | 37,429 |
Indonesia - 0.2% |
PT Bank Central Asia Tbk | 2,092,500 | | 1,991 |
PT Bank Rakyat Indonesia Tbk | 2,107,000 | | 1,804 |
TOTAL INDONESIA | | 3,795 |
Ireland - 1.7% |
Actavis PLC (a) | 50,000 | | 10,217 |
Covidien PLC | 2,728 | | 194 |
DCC PLC (United Kingdom) | 71,500 | | 3,661 |
Common Stocks - continued |
| Shares | | Value (000s) |
Ireland - continued |
Greencore Group PLC | 1,069,521 | | $ 4,715 |
Perrigo Co. PLC | 56,900 | | 8,243 |
Ryanair Holdings PLC sponsored ADR (a) | 147,800 | | 7,904 |
TOTAL IRELAND | | 34,934 |
Israel - 0.6% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 247,100 | | 12,073 |
Italy - 0.8% |
UniCredit SpA | 1,153,000 | | 10,302 |
World Duty Free SpA (a) | 446,008 | | 5,974 |
TOTAL ITALY | | 16,276 |
Japan - 15.3% |
ACOM Co. Ltd. (a)(d) | 730,600 | | 2,487 |
Ain Pharmaciez, Inc. | 77,700 | | 3,416 |
Aozora Bank Ltd. | 1,812,000 | | 5,388 |
Astellas Pharma, Inc. | 1,094,700 | | 12,175 |
Coca-Cola Central Japan Co. Ltd. | 115,000 | | 2,585 |
Don Quijote Holdings Co. Ltd. | 206,600 | | 10,872 |
Fuji Heavy Industries Ltd. | 138,000 | | 3,624 |
GMO Internet, Inc. | 281,500 | | 2,481 |
Honda Motor Co. Ltd. sponsored ADR (d) | 366,306 | | 12,198 |
Hoya Corp. | 613,800 | | 18,095 |
Japan Exchange Group, Inc. | 295,500 | | 5,833 |
Japan Tobacco, Inc. | 686,800 | | 22,545 |
KDDI Corp. | 241,700 | | 12,866 |
Keyence Corp. | 46,800 | | 18,029 |
Komatsu Ltd. | 396,800 | | 8,736 |
Leopalace21 Corp. (a) | 500,100 | | 2,583 |
Medical System Network Co. Ltd. (d) | 752,500 | | 3,217 |
Mitsubishi Electric Corp. | 436,000 | | 4,960 |
Mitsubishi UFJ Financial Group, Inc. | 2,077,500 | | 11,051 |
Nagaileben Co. Ltd. | 117,000 | | 2,252 |
Nakanishi, Inc. | 68,000 | | 2,321 |
NEC Corp. | 2,690,000 | | 7,552 |
Nippon Telegraph & Telephone Corp. | 90,200 | | 5,005 |
Nitori Holdings Co. Ltd. | 73,000 | | 3,345 |
Olympus Corp. (a) | 69,200 | | 2,112 |
OMRON Corp. | 151,700 | | 5,357 |
ORIX Corp. | 2,280,900 | | 32,952 |
Park24 Co. Ltd. | 116,100 | | 2,119 |
Rakuten, Inc. | 1,286,800 | | 16,640 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Sanix, Inc. (a)(d) | 338,800 | | $ 4,000 |
Seven & i Holdings Co., Ltd. | 224,200 | | 8,840 |
SHIMANO, Inc. | 53,700 | | 5,358 |
Shinsei Bank Ltd. | 1,985,000 | | 3,864 |
Ship Healthcare Holdings, Inc. | 95,400 | | 3,247 |
SoftBank Corp. | 362,600 | | 26,920 |
Sumitomo Mitsui Financial Group, Inc. | 124,900 | | 4,937 |
Toshiba Plant Systems & Services Corp. | 299,700 | | 4,406 |
Tsuruha Holdings, Inc. | 49,800 | | 5,008 |
VT Holdings Co. Ltd. | 366,900 | | 2,103 |
TOTAL JAPAN | | 311,479 |
Kenya - 0.2% |
Safaricom Ltd. | 31,403,100 | | 4,728 |
Korea (South) - 1.0% |
Hyundai Motor Co. | 14,250 | | 3,172 |
Naver Corp. | 13,379 | | 9,557 |
Orion Corp. | 6,412 | | 4,891 |
Samsung Electronics Co. Ltd. | 1,538 | | 1,999 |
TOTAL KOREA (SOUTH) | | 19,619 |
Luxembourg - 1.2% |
Altice S.A. (d) | 244,977 | | 13,999 |
Eurofins Scientific SA | 38,800 | | 10,766 |
TOTAL LUXEMBOURG | | 24,765 |
Marshall Islands - 0.1% |
Navigator Holdings Ltd. (a) | 62,300 | | 1,663 |
Netherlands - 3.2% |
AEGON NV | 2,212,100 | | 20,277 |
AerCap Holdings NV (a) | 77,600 | | 3,238 |
Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 169,600 | | 5,420 |
LyondellBasell Industries NV Class A | 88,700 | | 8,205 |
Royal DSM NV | 74,800 | | 5,363 |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 524,200 | | 22,478 |
TOTAL NETHERLANDS | | 64,981 |
New Zealand - 0.2% |
Ryman Healthcare Group Ltd. | 388,844 | | 2,900 |
Common Stocks - continued |
| Shares | | Value (000s) |
Norway - 0.5% |
BW LPG Ltd. (a)(d) | 403,565 | | $ 5,160 |
Telenor ASA | 247,800 | | 5,815 |
TOTAL NORWAY | | 10,975 |
Singapore - 0.6% |
Ezion Holdings Ltd. | 1,233,000 | | 2,233 |
Global Logistic Properties Ltd. | 2,237,000 | | 5,085 |
United Overseas Bank Ltd. | 329,000 | | 5,710 |
TOTAL SINGAPORE | | 13,028 |
South Africa - 1.0% |
Nampak Ltd. | 1,307,800 | | 4,873 |
Naspers Ltd. Class N | 167,500 | | 15,794 |
TOTAL SOUTH AFRICA | | 20,667 |
Spain - 2.2% |
Amadeus IT Holding SA Class A | 217,500 | | 9,039 |
Atresmedia Corporacion de Medios de Comunicacion SA | 109,182 | | 1,565 |
Criteria CaixaCorp SA | 1,038,562 | | 6,325 |
Grifols SA ADR | 160,519 | | 6,588 |
Inditex SA | 140,065 | | 21,016 |
TOTAL SPAIN | | 44,533 |
Sweden - 2.2% |
ASSA ABLOY AB (B Shares) | 100,600 | | 5,325 |
Nordea Bank AB | 881,000 | | 12,730 |
Svenska Cellulosa AB (SCA) (B Shares) | 599,600 | | 16,792 |
Svenska Handelsbanken AB (A Shares) | 212,000 | | 10,639 |
TOTAL SWEDEN | | 45,486 |
Switzerland - 5.4% |
Actelion Ltd. | 47,876 | | 4,703 |
Compagnie Financiere Richemont SA Series A | 113,494 | | 11,516 |
Nestle SA | 372,149 | | 28,761 |
Roche Holding AG (participation certificate) | 49,497 | | 14,520 |
Syngenta AG (Switzerland) | 55,402 | | 21,939 |
UBS AG | 1,389,224 | | 29,054 |
TOTAL SWITZERLAND | | 110,493 |
Taiwan - 0.9% |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 894,700 | | 17,983 |
Thailand - 0.1% |
Kasikornbank PCL (For. Reg.) | 399,200 | | 2,424 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - 17.4% |
Alabama Noor Hospitals Group PLC | 209,300 | | $ 3,527 |
Associated British Foods PLC | 163,300 | | 8,192 |
Barclays PLC | 1,011,180 | | 4,318 |
BG Group PLC | 1,008,869 | | 20,406 |
British American Tobacco PLC sponsored ADR | 161,400 | | 18,564 |
BT Group PLC | 1,807,400 | | 11,283 |
Bunzl PLC | 104,200 | | 2,957 |
Compass Group PLC | 430,100 | | 6,841 |
Diploma PLC | 350,900 | | 3,901 |
Direct Line Insurance Group PLC | 603,300 | | 2,550 |
Dunelm Group PLC | 394,400 | | 6,236 |
easyJet PLC | 192,200 | | 5,312 |
Exova Group Ltd. PLC (a) | 644,700 | | 2,397 |
Filtrona PLC | 706,200 | | 9,539 |
GlaxoSmithKline PLC | 380,100 | | 10,502 |
Hikma Pharmaceuticals PLC | 238,987 | | 6,262 |
HSBC Holdings PLC sponsored ADR | 433,497 | | 22,247 |
IMI PLC | 189,700 | | 4,804 |
InterContinental Hotel Group PLC | 103,180 | | 3,526 |
ITV PLC | 1,404,900 | | 4,317 |
Jazztel PLC (a) | 218,400 | | 3,351 |
Johnson Matthey PLC | 111,500 | | 6,162 |
Kingfisher PLC | 1,982,200 | | 13,993 |
Liberty Global PLC: | | | |
Class A (a) | 48,700 | | 1,939 |
Class C | 48,700 | | 1,872 |
Lloyds Banking Group PLC (a) | 15,282,100 | | 19,488 |
Meggitt PLC | 504,800 | | 4,063 |
Next PLC | 199,300 | | 21,940 |
Poundland Group PLC (a) | 338,134 | | 1,984 |
Prudential PLC | 1,066,210 | | 24,511 |
Reckitt Benckiser Group PLC | 177,313 | | 14,295 |
Reed Elsevier PLC | 280,300 | | 4,127 |
Rolls-Royce Group PLC | 726,000 | | 12,871 |
SABMiller PLC | 99,100 | | 5,389 |
Spectris PLC | 121,000 | | 4,546 |
St. James's Place Capital PLC | 897,100 | | 11,663 |
Standard Chartered PLC (United Kingdom) | 620,366 | | 13,423 |
Travis Perkins PLC | 220,300 | | 6,342 |
Vodafone Group PLC sponsored ADR | 407,981 | | 15,487 |
Whitbread PLC | 116,872 | | 8,051 |
TOTAL UNITED KINGDOM | | 353,178 |
Common Stocks - continued |
| Shares | | Value (000s) |
United States of America - 6.9% |
AbbVie, Inc. | 200,800 | | $ 10,458 |
Accuray, Inc. (a)(d) | 537,600 | | 4,516 |
Alexion Pharmaceuticals, Inc. (a) | 47,600 | | 7,530 |
Amgen, Inc. | 41,600 | | 4,649 |
Boston Scientific Corp. (a) | 228,000 | | 2,875 |
Celldex Therapeutics, Inc. (a) | 41,800 | | 627 |
Citigroup, Inc. | 63,000 | | 3,018 |
Fidelity National Information Services, Inc. | 75,200 | | 4,018 |
FMC Corp. | 26,500 | | 2,041 |
Gilead Sciences, Inc. (a) | 136,500 | | 10,714 |
Google, Inc.: | | | |
Class A (a) | 8,395 | | 4,490 |
Class C (a) | 8,395 | | 4,421 |
Las Vegas Sands Corp. | 133,000 | | 10,524 |
MasterCard, Inc. Class A | 144,800 | | 10,650 |
McGraw Hill Financial, Inc. | 159,200 | | 11,770 |
Mondelez International, Inc. | 116,400 | | 4,150 |
Monsanto Co. | 44,600 | | 4,937 |
Noble Energy, Inc. | 151,200 | | 10,853 |
PriceSmart, Inc. | 19,800 | | 1,902 |
ResMed, Inc. | 77,700 | | 3,873 |
The Blackstone Group LP | 146,100 | | 4,314 |
Verizon Communications, Inc. | 175,495 | | 8,201 |
Visa, Inc. Class A | 49,600 | | 10,049 |
TOTAL UNITED STATES OF AMERICA | | 140,580 |
TOTAL COMMON STOCKS (Cost $1,513,178) | 1,951,620
|
Preferred Stocks - 1.8% |
| | | |
Convertible Preferred Stocks - 0.1% |
United States of America - 0.1% |
NJOY, Inc.: | | | |
Series C (g) | 60,264 | | 1,020 |
Series D (g) | 18,951 | | 321 |
TOTAL UNITED STATES OF AMERICA | | 1,341 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Nonconvertible Preferred Stocks - 1.7% |
Germany - 1.7% |
Henkel AG & Co. KGaA | 131,700 | | $ 14,666 |
Volkswagen AG | 77,600 | | 20,896 |
TOTAL GERMANY | | 35,562 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC (C Shares) | 97,284,000 | | 164 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | | 35,726 |
TOTAL PREFERRED STOCKS (Cost $22,933) | 37,067
|
Government Obligations - 0.1% |
| Principal Amount (000s) | | |
United States of America - 0.1% |
U.S. Treasury Bills, yield at date of purchase 0.04% to 0.06% 5/8/14 to 5/29/14 (Cost $755) | | $ 755 | | 755
|
Preferred Securities - 0.1% |
| | | |
Ireland - 0.1% |
Baggot Securities Ltd. 10.24% (e)(f) (Cost $2,488) | 1,620 | | 2,504
|
Money Market Funds - 8.2% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.11% (b) | 41,344,765 | | $ 41,345 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 125,083,313 | | 125,083 |
TOTAL MONEY MARKET FUNDS (Cost $166,428) | 166,428
|
TOTAL INVESTMENT PORTFOLIO - 106.1% (Cost $1,705,782) | | 2,158,374 |
NET OTHER ASSETS (LIABILITIES) - (6.1)% | | (123,894) |
NET ASSETS - 100% | $ 2,034,480 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,504,000 or 0.1% of net assets. |
(f) Security is perpetual in nature with no stated maturity date. |
(g) 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 $1,341,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
NJOY, Inc. Series C | 6/7/13 | $ 487 |
NJOY, Inc. Series D | 2/14/14 | $ 321 |
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 | $ 15 |
Fidelity Securities Lending Cash Central Fund | 322 |
Total | $ 337 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment 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 | $ 321,135 | $ 305,618 | $ 14,176 | $ 1,341 |
Consumer Staples | 244,625 | 164,063 | 80,562 | - |
Energy | 70,086 | 70,086 | - | - |
Financials | 428,504 | 304,803 | 123,701 | - |
Health Care | 327,194 | 216,349 | 110,845 | - |
Industrials | 159,682 | 150,946 | 8,736 | - |
Information Technology | 196,372 | 172,860 | 23,512 | - |
Materials | 142,538 | 120,599 | 21,939 | - |
Telecommunication Services | 98,551 | 82,263 | 16,288 | - |
Government Obligations | 755 | - | 755 | - |
Preferred Securities | 2,504 | - | 2,504 | - |
Money Market Funds | 166,428 | 166,428 | - | - |
Total Investments in Securities: | $ 2,158,374 | $ 1,754,015 | $ 403,018 | $ 1,341 |
The following is a summary of transfers between Level 1 and Level 2 for the period endedApril 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total (000s) |
Level 1 to Level 2 | $ 24,921 |
Level 2 to Level 1 | $ 245,280 |
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, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $118,495) - See accompanying schedule: Unaffiliated issuers (cost $1,539,354) | $ 1,991,946 | |
Fidelity Central Funds (cost $166,428) | 166,428 | |
Total Investments (cost $1,705,782) | | $ 2,158,374 |
Foreign currency held at value (cost $21) | | 31 |
Receivable for investments sold | | 3,513 |
Receivable for fund shares sold | | 1,194 |
Dividends receivable | | 8,881 |
Distributions receivable from Fidelity Central Funds | | 132 |
Prepaid expenses | | 1 |
Other receivables | | 91 |
Total assets | | 2,172,217 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,228 | |
Payable for fund shares redeemed | 4,774 | |
Accrued management fee | 1,180 | |
Distribution and service plan fees payable | 525 | |
Other affiliated payables | 459 | |
Other payables and accrued expenses | 2,488 | |
Collateral on securities loaned, at value | 125,083 | |
Total liabilities | | 137,737 |
| | |
Net Assets | | $ 2,034,480 |
Net Assets consist of: | | |
Paid in capital | | $ 4,304,998 |
Undistributed net investment income | | 15,454 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,736,228) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 450,256 |
Net Assets | | $ 2,034,480 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($756,997.1 ÷ 37,992.28 shares) | | $ 19.93 |
| | |
Maximum offering price per share (100/94.25 of $19.93) | | $ 21.15 |
Class T: Net Asset Value and redemption price per share ($311,139.3 ÷ 15,738.21 shares) | | $ 19.77 |
| | |
Maximum offering price per share (100/96.50 of $19.77) | | $ 20.49 |
Class B: Net Asset Value and offering price per share ($26,719.9 ÷ 1,393.17 shares)A | | $ 19.18 |
| | |
Class C: Net Asset Value and offering price per share ($260,844.2 ÷ 13,659.84 shares)A | | $ 19.10 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($678,667.7 ÷ 33,506.31 shares) | | $ 20.25 |
| | |
Class Z: Net Asset Value, offering price and redemption price per share ($111.6 ÷ 5.51 shares) | | $ 20.25 |
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
Amounts in thousands Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 20,138 |
Special dividends | | 9,777 |
Income from Fidelity Central Funds | | 337 |
Income before foreign taxes withheld | | 30,252 |
Less foreign taxes withheld | | (1,369) |
Total income | | 28,883 |
| | |
Expenses | | |
Management fee | $ 7,076 | |
Transfer agent fees | 2,331 | |
Distribution and service plan fees | 3,205 | |
Accounting and security lending fees | 448 | |
Custodian fees and expenses | 131 | |
Independent trustees' compensation | 4 | |
Registration fees | 98 | |
Audit | 44 | |
Legal | 5 | |
Miscellaneous | 10 | |
Total expenses before reductions | 13,352 | |
Expense reductions | (19) | 13,333 |
Net investment income (loss) | | 15,550 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 106,559 | |
Foreign currency transactions | (48) | |
Futures contracts | 550 | |
Total net realized gain (loss) | | 107,061 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (39,527) | |
Assets and liabilities in foreign currencies | 67 | |
Futures contracts | (491) | |
Total change in net unrealized appreciation (depreciation) | | (39,951) |
Net gain (loss) | | 67,110 |
Net increase (decrease) in net assets resulting from operations | | $ 82,660 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 15,550 | $ 19,442 |
Net realized gain (loss) | 107,061 | 196,674 |
Change in net unrealized appreciation (depreciation) | (39,951) | 237,976 |
Net increase (decrease) in net assets resulting from operations | 82,660 | 454,092 |
Distributions to shareholders from net investment income | (17,375) | (23,595) |
Distributions to shareholders from net realized gain | (17,564) | (7,342) |
Total distributions | (34,939) | (30,937) |
Share transactions - net increase (decrease) | (23,061) | (330,363) |
Redemption fees | 13 | 17 |
Total increase (decrease) in net assets | 24,673 | 92,809 |
| | |
Net Assets | | |
Beginning of period | 2,009,807 | 1,916,998 |
End of period (including undistributed net investment income of $15,454 and undistributed net investment income of $17,279, respectively) | $ 2,034,480 | $ 2,009,807 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.47 | $ 15.63 | $ 14.61 | $ 15.63 | $ 14.25 | $ 12.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .16 K | .19 | .18 | .22 H | .14 | .17 |
Net realized and unrealized gain (loss) | .65 | 3.92 | 1.03 | (1.01) | 1.44 | 1.96 |
Total from investment operations | .81 | 4.11 | 1.21 | (.79) | 1.58 | 2.13 |
Distributions from net investment income | (.18) | (.21) | (.19) | (.20) | (.19) | (.45) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.35) | (.27) | (.19) | (.23) | (.20) | (.45) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.93 | $ 19.47 | $ 15.63 | $ 14.61 | $ 15.63 | $ 14.25 |
Total Return B, C, D | 4.22% | 26.69% | 8.47% | (5.15)% | 11.17% | 18.16% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.27% A | 1.31% | 1.32% | 1.31% | 1.32% | 1.34% |
Expenses net of fee waivers, if any | 1.27% A | 1.30% | 1.32% | 1.31% | 1.32% | 1.34% |
Expenses net of all reductions | 1.27% A | 1.28% | 1.31% | 1.29% | 1.30% | 1.31% |
Net investment income (loss) | 1.59% A,K | 1.08% | 1.20% | 1.38% H | .95% | 1.43% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 757 | $ 756 | $ 762 | $ 916 | $ 1,302 | $ 1,662 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
K Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .62%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.30 | $ 15.49 | $ 14.46 | $ 15.47 | $ 14.11 | $ 12.42 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .13 L | .14 | .14 | .18 H | .10 | .14 |
Net realized and unrealized gain (loss) | .65 | 3.89 | 1.03 | (.99) | 1.43 | 1.94 |
Total from investment operations | .78 | 4.03 | 1.17 | (.81) | 1.53 | 2.08 |
Distributions from net investment income | (.14) | (.16) | (.14) | (.16) | (.16) | (.39) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.31) | (.22) | (.14) | (.20) K | (.17) | (.39) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.77 | $ 19.30 | $ 15.49 | $ 14.46 | $ 15.47 | $ 14.11 |
Total Return B, C, D | 4.09% | 26.37% | 8.17% | (5.35)% | 10.88% | 17.84% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.52% A | 1.55% | 1.58% | 1.55% | 1.55% | 1.58% |
Expenses net of fee waivers, if any | 1.52% A | 1.55% | 1.58% | 1.55% | 1.55% | 1.58% |
Expenses net of all reductions | 1.52% A | 1.53% | 1.57% | 1.53% | 1.53% | 1.55% |
Net investment income (loss) | 1.34% A,L | .83% | .94% | 1.14% H | .71% | 1.19% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 311 | $ 319 | $ 304 | $ 404 | $ 621 | $ 832 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
L Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .37%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.65 | $ 14.95 | $ 13.91 | $ 14.91 | $ 13.61 | $ 11.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 K | .05 | .06 | .09 H | .02 | .08 |
Net realized and unrealized gain (loss) | .63 | 3.77 | 1.00 | (.96) | 1.38 | 1.88 |
Total from investment operations | .70 | 3.82 | 1.06 | (.87) | 1.40 | 1.96 |
Distributions from net investment income | - | (.06) | (.02) | (.10) | (.09) | (.30) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.17) | (.12) | (.02) | (.13) | (.10) | (.30) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.18 | $ 18.65 | $ 14.95 | $ 13.91 | $ 14.91 | $ 13.61 |
Total Return B, C, D | 3.78% | 25.72% | 7.64% | (5.89)% | 10.34% | 17.25% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.08% A | 2.08% | 2.08% | 2.08% | 2.09% | 2.10% |
Expenses net of fee waivers, if any | 2.08% A | 2.08% | 2.08% | 2.08% | 2.09% | 2.10% |
Expenses net of all reductions | 2.08% A | 2.06% | 2.07% | 2.06% | 2.07% | 2.07% |
Net investment income (loss) | .78% A,K | .30% | .44% | .61% H | .18% | .67% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 27 | $ 36 | $ 59 | $ 94 | $ 157 | $ 191 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
K Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.18)%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.63 | $ 14.97 | $ 13.95 | $ 14.95 | $ 13.65 | $ 11.98 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 K | .06 | .06 | .10 H | .03 | .08 |
Net realized and unrealized gain (loss) | .63 | 3.75 | 1.01 | (.96) | 1.38 | 1.89 |
Total from investment operations | .71 | 3.81 | 1.07 | (.86) | 1.41 | 1.97 |
Distributions from net investment income | (.07) | (.09) | (.05) | (.11) | (.10) | (.30) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.24) | (.15) | (.05) | (.14) | (.11) | (.30) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 19.10 | $ 18.63 | $ 14.97 | $ 13.95 | $ 14.95 | $ 13.65 |
Total Return B, C, D | 3.86% | 25.71% | 7.71% | (5.83)% | 10.32% | 17.24% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.01% A | 2.04% | 2.06% | 2.05% | 2.06% | 2.09% |
Expenses net of fee waivers, if any | 2.01% A | 2.04% | 2.06% | 2.05% | 2.06% | 2.09% |
Expenses net of all reductions | 2.01% A | 2.01% | 2.05% | 2.03% | 2.04% | 2.06% |
Net investment income (loss) | .85% A,K | .35% | .46% | .64% H | .21% | .68% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 261 | $ 264 | $ 246 | $ 302 | $ 419 | $ 502 |
Portfolio turnover rate G | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
K Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.12)%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.80 | $ 15.90 | $ 14.87 | $ 15.90 | $ 14.48 | $ 12.81 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .19 J | .24 | .23 | .28 G | .19 | .21 |
Net realized and unrealized gain (loss) | .66 | 3.98 | 1.05 | (1.03) | 1.47 | 1.98 |
Total from investment operations | .85 | 4.22 | 1.28 | (.75) | 1.66 | 2.19 |
Distributions from net investment income | (.23) | (.26) | (.25) | (.25) | (.23) | (.52) |
Distributions from net realized gain | (.17) | (.06) | - | (.03) | (.01) | - |
Total distributions | (.40) | (.32) | (.25) | (.28) | (.24) | (.52) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.25 | $ 19.80 | $ 15.90 | $ 14.87 | $ 15.90 | $ 14.48 |
Total Return B, C | 4.36% | 27.03% | 8.83% | (4.85)% | 11.55% | 18.45% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .97% A | .99% | 1.00% | .99% | .99% | 1.07% |
Expenses net of fee waivers, if any | .97% A | .99% | 1.00% | .99% | .99% | 1.07% |
Expenses net of all reductions | .97% A | .97% | .99% | .97% | .97% | 1.04% |
Net investment income (loss) | 1.89% A,J | 1.39% | 1.52% | 1.70% G | 1.28% | 1.70% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 679 | $ 636 | $ 546 | $ 723 | $ 1,316 | $ 1,540 |
Portfolio turnover rate F | 42% A | 50% | 34% | 48% | 59% | 92% |
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.
J Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .92%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class Z
| Six months ended April 30, 2014 | Year ended October 31, |
| (Unaudited) | 2013 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 19.81 | $ 18.54 |
Income from Investment Operations | | |
Net investment income (loss) D | .20 J | .03 |
Net realized and unrealized gain (loss) | .67 | 1.24 |
Total from investment operations | .87 | 1.27 |
Distributions from net investment income | (.26) | - |
Distributions from net realized gain | (.17) | - |
Total distributions | (.43) | - |
Redemption fees added to paid in capital D | - I | - |
Net asset value, end of period | $ 20.25 | $ 19.81 |
Total Return B, C | 4.46% | 6.85% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .82% A | .83% A |
Expenses net of fee waivers, if any | .82% A | .83% A |
Expenses net of all reductions | .82% A | .80% A |
Net investment income (loss) | 2.04% A,J | .77% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 112 | $ 107 |
Portfolio turnover rate F | 42% A | 50% |
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 For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.07%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® 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, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Preferred securities and U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The 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
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), deferred trustees compensation, 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 | $ 474,641 |
Gross unrealized depreciation | (48,672) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 425,969 |
| |
Tax cost | $ 1,732,405 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (2,815,359) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $550 and a change in net unrealized appreciation (depreciation) of $(491) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $416,751 and $482,592, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 947 | $ 14 |
Class T | .25% | .25% | 788 | 7 |
Class B | .75% | .25% | 158 | 119 |
Class C | .75% | .25% | 1,312 | 62 |
| | | $ 3,205 | $ 202 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 51 |
Class T | 14 |
Class B* | 10 |
Class C* | 2 |
| $ 77 |
* 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
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 932 | .25 |
Class T | 387 | .25 |
Class B | 48 | .30 |
Class C | 309 | .24 |
Institutional Class | 655 | .20 |
Class Z | -** | .05 |
| $ 2,331 | |
* Annualized
** Amount represents twenty-five dollars.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $429. 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 $322, including three hundred eighty-six dollars from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $19 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 6,853 | $ 9,993 |
Class T | 2,251 | 3,119 |
Class B | - | 218 |
Class C | 979 | 1,491 |
Institutional Class | 7,291 | 8,774 |
Class Z | 1 | - |
Total | $ 17,375 | $ 23,595 |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net realized gain | | |
Class A | $ 6,584 | $ 2,917 |
Class T | 2,789 | 1,167 |
Class B | 307 | 229 |
Class C | 2,390 | 978 |
Institutional Class | 5,493 | 2,051 |
Class Z | 1 | - |
Total | $ 17,564 | $ 7,342 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 A | Six months ended April 30, 2014 | Year ended October 31, 2013 A |
Class A | | | | |
Shares sold | 2,537 | 5,624 | $ 49,772 | $ 97,285 |
Reinvestment of distributions | 646 | 758 | 12,430 | 12,002 |
Shares redeemed | (4,002) | (16,315) | (78,571) | (276,915) |
Net increase (decrease) | (819) | (9,933) | $ (16,369) | $ (167,628) |
Class T | | | | |
Shares sold | 650 | 1,308 | $ 12,666 | $ 22,307 |
Reinvestment of distributions | 249 | 255 | 4,764 | 4,007 |
Shares redeemed | (1,687) | (4,655) | (32,696) | (78,662) |
Net increase (decrease) | (788) | (3,092) | $ (15,266) | $ (52,348) |
Class B | | | | |
Shares sold | 22 | 17 | $ 417 | $ 283 |
Reinvestment of distributions | 15 | 26 | 278 | 396 |
Shares redeemed | (554) | (2,107) | (10,484) | (34,470) |
Net increase (decrease) | (517) | (2,064) | $ (9,789) | $ (33,791) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 A | Six months ended April 30, 2014 | Year ended October 31, 2013 A |
Class C | | | | |
Shares sold | 512 | 787 | $ 9,646 | $ 13,034 |
Reinvestment of distributions | 149 | 129 | 2,754 | 1,968 |
Shares redeemed | (1,156) | (3,176) | (21,722) | (51,899) |
Net increase (decrease) | (495) | (2,260) | $ (9,322) | $ (36,897) |
Institutional Class | | | | |
Shares sold | 3,280 | 4,395 | $ 65,481 | $ 77,113 |
Reinvestment of distributions | 582 | 586 | 11,367 | 9,415 |
Shares redeemed | (2,460) | (7,233) | (49,165) | (126,327) |
Net increase (decrease) | 1,402 | (2,252) | $ 27,683 | $ (39,799) |
Class Z | | | | |
Shares sold | - | 5 | $ - | $ 100 |
Reinvestment of distributions | - | - | 2 | - |
Net increase (decrease) | - | 5 | $ 2 | $ 100 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to April 30, 2014.
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
ADIFZ-USAN-0614
1.9585028.100
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Asia
Fund - Institutional Class
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio B | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.47% | | | |
Actual | | $ 1,000.00 | $ 995.70 | $ 7.27 |
HypotheticalA | | $ 1,000.00 | $ 1,017.50 | $ 7.35 |
Class T | 1.77% | | | |
Actual | | $ 1,000.00 | $ 994.20 | $ 8.75 |
HypotheticalA | | $ 1,000.00 | $ 1,016.02 | $ 8.85 |
Class B | 2.27% | | | |
Actual | | $ 1,000.00 | $ 991.60 | $ 11.21 |
HypotheticalA | | $ 1,000.00 | $ 1,013.54 | $ 11.33 |
Class C | 2.22% | | | |
Actual | | $ 1,000.00 | $ 991.60 | $ 10.96 |
HypotheticalA | | $ 1,000.00 | $ 1,013.79 | $ 11.08 |
Institutional Class | 1.17% | | | |
Actual | | $ 1,000.00 | $ 997.00 | $ 5.79 |
HypotheticalA | | $ 1,000.00 | $ 1,018.99 | $ 5.86 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Samsung Electronics Co. Ltd. | 6.2 | 6.2 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.9 | 1.9 |
AIA Group Ltd. | 2.6 | 2.7 |
Tencent Holdings Ltd. | 2.4 | 2.4 |
China Construction Bank Corp. (H Shares) | 2.1 | 2.4 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1.8 | 0.0 |
Hyundai Motor Co. | 1.7 | 2.3 |
Bank of China Ltd. (H Shares) | 1.5 | 0.0 |
Hutchison Whampoa Ltd. | 1.4 | 0.0 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 1.3 | 2.2 |
| 24.9 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 30.2 | 34.6 |
Information Technology | 24.0 | 19.7 |
Consumer Discretionary | 13.6 | 11.7 |
Industrials | 8.1 | 6.9 |
Energy | 4.6 | 5.7 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 98.9% | | | Stocks 98.0% | |
| Short-Term Investments and Net Other Assets (Liabilities) 1.1% | | | Short-Term Investments and Net Other Assets (Liabilities) 2.0% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.9% |
| Shares | | Value |
Bermuda - 2.3% |
BW Offshore Ltd. | 117,300 | | $ 153,130 |
Cafe de Coral Holdings Ltd. | 196,000 | | 615,585 |
CSI Properties Ltd. | 14,580,000 | | 507,755 |
Great Eagle Holdings Ltd. | 442,000 | | 1,582,043 |
Hongkong Land Holdings Ltd. | 217,000 | | 1,519,000 |
Huabao International Holdings Ltd. | 420,000 | | 198,815 |
Luk Fook Holdings International Ltd. | 159,000 | | 451,183 |
Oriental Watch Holdings Ltd. | 1,280,000 | | 288,922 |
PAX Global Technology Ltd. (a) | 650,000 | | 338,710 |
Yue Yuen Industrial (Holdings) Ltd. | 263,500 | | 813,990 |
TOTAL BERMUDA | | 6,469,133 |
British Virgin Islands - 0.0% |
Michael Kors Holdings Ltd. (a) | 1,600 | | 145,920 |
Cayman Islands - 11.9% |
AAC Technology Holdings, Inc. | 128,500 | | 717,669 |
Baidu.com, Inc. sponsored ADR (a) | 2,600 | | 400,010 |
Bonjour Holdings Ltd. | 1,360,000 | | 233,305 |
China Liansu Group Holdings Ltd. | 53,000 | | 28,165 |
China Lilang Ltd. | 197,000 | | 127,048 |
China Lodging Group Ltd. ADR (a) | 38,800 | | 860,972 |
China Resources Cement Holdings Ltd. | 2,201,972 | | 1,528,013 |
China Sanjiang Fine Chemicals Ltd. | 1,262,000 | | 551,813 |
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. | 2,052,000 | | 624,629 |
Cimc Enric Holdings Ltd. | 422,000 | | 610,715 |
Ctrip.com International Ltd. sponsored ADR (a) | 9,400 | | 439,356 |
Daqo New Energy Corp. ADR (a) | 2,100 | | 86,247 |
ENN Energy Holdings Ltd. | 136,000 | | 950,761 |
GCL-Poly Energy Holdings Ltd. (a)(d) | 5,772,000 | | 1,727,219 |
Goodbaby International Holdings Ltd. | 251,000 | | 137,593 |
Greatview Aseptic Pack Co. Ltd. | 704,000 | | 429,504 |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 4,700 | | 133,574 |
Hosa International Ltd. | 1,420,000 | | 441,406 |
Hydoo International Holding Ltd. | 338,000 | | 136,456 |
iKang Healthcare Group, Inc. sponsored ADR | 1,900 | | 26,087 |
KWG Property Holding Ltd. | 2,601,500 | | 1,439,508 |
Lee & Man Paper Manufacturing Ltd. | 1,012,000 | | 549,535 |
Lifestyle International Holdings Ltd. | 749,500 | | 1,467,494 |
Longfor Properties Co. Ltd. | 576,000 | | 744,429 |
Melco Crown Entertainment Ltd. sponsored ADR | 24,200 | | 827,156 |
MGM China Holdings Ltd. | 403,600 | | 1,405,555 |
Sands China Ltd. | 389,200 | | 2,841,334 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Silicon Motion Technology Corp. sponsored ADR | 14,200 | | $ 235,578 |
Sino Biopharmaceutical Ltd. | 820,000 | | 642,001 |
Sitoy Group Holdings Ltd. | 484,000 | | 290,290 |
SOHO China Ltd. | 693,500 | | 551,905 |
SouFun Holdings Ltd. ADR | 55,100 | | 648,527 |
Springland International Holdings Ltd. | 4,086,000 | | 1,607,427 |
Tencent Holdings Ltd. | 110,700 | | 6,899,340 |
Value Partners Group Ltd. | 921,000 | | 591,592 |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 52,500 | | 1,785,000 |
Xinyi Glass Holdings Ltd. | 292,000 | | 229,745 |
Yingde Gases Group Co. Ltd. | 550,000 | | 555,466 |
Zhen Ding Technology Holding Ltd. | 222,400 | | 645,108 |
TOTAL CAYMAN ISLANDS | | 34,147,532 |
China - 15.3% |
Aluminum Corp. of China Ltd. (H Shares) (a) | 2,722,000 | | 975,913 |
Angang Steel Co. Ltd. (H Shares) (a) | 650,000 | | 394,044 |
Anhui Conch Cement Co. Ltd. (H Shares) | 277,500 | | 1,030,833 |
Bank of China Ltd. (H Shares) | 9,732,000 | | 4,280,451 |
BBMG Corp. (H Shares) | 165,000 | | 115,988 |
Beijing Jingneng Clean Energy Co. Ltd. (H Shares) | 1,160,000 | | 498,236 |
China Communications Construction Co. Ltd. (H Shares) | 1,982,000 | | 1,296,118 |
China Construction Bank Corp. (H Shares) | 8,928,000 | | 6,160,855 |
China Longyuan Power Grid Corp. Ltd. (H Shares) | 801,000 | | 824,458 |
China Merchants Bank Co. Ltd. (H Shares) | 965,000 | | 1,722,648 |
China Pacific Insurance Group Co. Ltd. (H Shares) | 815,200 | | 2,555,074 |
China Petroleum & Chemical Corp. (H Shares) | 4,178,000 | | 3,709,045 |
China Railway Construction Corp. Ltd. (H Shares) | 884,500 | | 731,289 |
China Railway Group Ltd. (H Shares) | 3,237,000 | | 1,440,439 |
China Shenhua Energy Co. Ltd. (H Shares) | 875,500 | | 2,371,420 |
China Suntien Green Energy Corp. Ltd. (H Shares) | 1,553,900 | | 525,119 |
Chongqing Changan Automobile Co. Ltd. (B Shares) | 105,613 | | 190,712 |
CSR Corp. Ltd. (H Shares) | 2,249,000 | | 1,641,871 |
Guangdong Kelon Electrical Holdings Ltd. Series H (a) | 320,000 | | 379,314 |
Guangzhou R&F Properties Co. Ltd. (H Shares) | 635,200 | | 829,133 |
Huadian Fuxin Energy Corp. Ltd. (H Shares) | 2,010,000 | | 938,507 |
Huadian Power International Corp. Ltd. (H Shares) | 1,996,000 | | 1,083,866 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 6,379,000 | | 3,811,568 |
Maanshan Iron & Steel Ltd. (H Shares) (a) | 2,538,000 | | 530,322 |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 383,500 | | 2,836,820 |
Shanghai Electric Group Co. Ltd. (H Shares) | 1,244,000 | | 487,783 |
Sinotrans Ltd. (H Shares) | 2,463,000 | | 1,359,694 |
Common Stocks - continued |
| Shares | | Value |
China - continued |
Weichai Power Co. Ltd. (H Shares) | 259,000 | | $ 901,979 |
Yantai Changyu Pioneer Wine Co. Ltd. (B Shares) | 43,700 | | 108,391 |
TOTAL CHINA | | 43,731,890 |
Hong Kong - 9.9% |
AIA Group Ltd. | 1,504,200 | | 7,295,019 |
Champion (REIT) | 1,908,000 | | 898,265 |
China Power International Development Ltd. | 1,648,000 | | 593,054 |
Dah Chong Hong Holdings Ltd. | 1,637,000 | | 1,040,947 |
Dah Sing Banking Group Ltd. | 192,400 | | 288,366 |
Dah Sing Financial Holdings Ltd. | 136,000 | | 606,066 |
Far East Horizon Ltd. | 1,442,000 | | 976,467 |
Fosun International Ltd. | 562,500 | | 680,547 |
Fosun International Ltd. rights 5/13/14 (a) | 43,875 | | 198 |
Galaxy Entertainment Group Ltd. | 294,000 | | 2,307,496 |
HKT Trust/HKT Ltd. unit | 1,725,000 | | 1,804,442 |
Hutchison Whampoa Ltd. | 299,000 | | 4,087,992 |
Hysan Development Co. Ltd. | 333,000 | | 1,423,839 |
Lenovo Group Ltd. | 1,406,000 | | 1,599,510 |
Magnificent Estates Ltd. | 2,296,000 | | 111,055 |
PCCW Ltd. | 2,157,000 | | 1,151,817 |
Singamas Container Holdings Ltd. | 1,552,000 | | 336,306 |
Techtronic Industries Co. Ltd. | 94,000 | | 299,473 |
Vitasoy International Holdings Ltd. | 550,000 | | 753,391 |
Wheelock and Co. Ltd. | 517,000 | | 2,127,229 |
TOTAL HONG KONG | | 28,381,479 |
India - 10.6% |
Apollo Tyres Ltd. | 158,882 | | 418,970 |
Axis Bank Ltd. | 54,016 | | 1,364,866 |
Balkrishna Industries Ltd. (a) | 6,513 | | 56,810 |
Bank of Baroda | 60,734 | | 822,625 |
Bharat Heavy Electricals Ltd. | 587,724 | | 1,758,349 |
Bharat Petroleum Corp. Ltd. | 55,718 | | 420,229 |
Bharti Infratel Ltd. (a) | 223,857 | | 800,377 |
Cairn India Ltd. | 202,955 | | 1,127,752 |
CESC Ltd. GDR (a) | 20,508 | | 154,673 |
Cox & Kings India Ltd. | 176,341 | | 441,328 |
Engineers India Ltd. | 40,101 | | 151,954 |
Havells India Ltd. | 13,915 | | 214,879 |
HCL Technologies Ltd. | 62,436 | | 1,452,234 |
Hexaware Technologies Ltd. | 127,769 | | 321,250 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Hindustan Petroleum Corp. Ltd. | 167,601 | | $ 894,344 |
Housing Development Finance Corp. Ltd. | 189,249 | | 2,817,477 |
IL&FS Transportation Networks Ltd. | 27,745 | | 60,835 |
IL&FS Transportation Networks Ltd. rights (a) | 2,944 | | 1,574 |
Ipca Laboratories Ltd. | 33,383 | | 474,969 |
Lupin Ltd. | 55,344 | | 944,361 |
Mahindra & Mahindra Ltd. | 39,252 | | 699,072 |
Max India Ltd. | 86,861 | | 307,754 |
McLeod Russel India Ltd. | 66,079 | | 295,145 |
MindTree Consulting Ltd. | 44,048 | | 1,036,258 |
Mphasis BFL Ltd. (a) | 35,444 | | 242,522 |
MRF Ltd. | 1,254 | | 426,806 |
NIIT Technologies Ltd. | 52,860 | | 355,643 |
NTPC Ltd. | 484,105 | | 933,858 |
Persistent Systems Ltd. | 1,732 | | 28,927 |
Petronet LNG Ltd. | 312,748 | | 750,823 |
Power Finance Corp. Ltd. | 74,559 | | 227,268 |
Punjab National Bank | 67,960 | | 906,971 |
Redington India Ltd. | 112,511 | | 164,434 |
Reliance Infrastructure Ltd. (a) | 34,936 | | 294,594 |
Rural Electrification Corp. Ltd. | 66,915 | | 263,932 |
Shriram City Union Finance Ltd. | 30,158 | | 591,210 |
Sintex Industries Ltd. | 193,191 | | 146,219 |
Sun Pharmaceutical Industries Ltd. | 120,304 | | 1,262,180 |
Tata Consultancy Services Ltd. | 10,024 | | 363,832 |
Tata Motors Ltd. | 291,011 | | 2,012,999 |
Tata Power Co. Ltd. | 323,530 | | 418,929 |
The Jammu & Kashmir Bank Ltd. | 36,088 | | 1,002,225 |
UPL Ltd. | 339,831 | | 1,510,548 |
Yes Bank Ltd. | 182,949 | | 1,336,894 |
TOTAL INDIA | | 30,278,899 |
Indonesia - 2.2% |
PT Adaro Energy Tbk | 3,058,500 | | 313,482 |
PT Bank Mandiri (Persero) Tbk | 2,111,300 | | 1,803,929 |
PT Bank Rakyat Indonesia Tbk | 3,357,800 | | 2,875,253 |
PT BISI International Tbk | 2,258,600 | | 120,144 |
PT Express Transindo Utama Tbk | 988,900 | | 110,766 |
PT Perusahaan Perkebunan London Sumatra Indonesia Tbk | 4,305,000 | | 912,274 |
PT Tempo Scan Pacific Tbk | 827,400 | | 207,539 |
TOTAL INDONESIA | | 6,343,387 |
Common Stocks - continued |
| Shares | | Value |
Israel - 0.0% |
Sarine Technologies Ltd. | 66,000 | | $ 145,824 |
Japan - 0.7% |
Fuji Media Holdings, Inc. | 34,500 | | 580,765 |
KDDI Corp. | 11,400 | | 606,825 |
SoftBank Corp. | 4,000 | | 296,963 |
Suzuki Motor Corp. | 22,300 | | 574,759 |
TOTAL JAPAN | | 2,059,312 |
Korea (South) - 17.6% |
AMOREPACIFIC Corp. | 567 | | 732,693 |
AMOREPACIFIC Group, Inc. | 1,705 | | 881,299 |
CJ E&M Corp. (a) | 3,046 | | 148,600 |
CJ O Shopping Co. Ltd. | 866 | | 305,795 |
Cosmax Bti, Inc. | 780 | | 31,824 |
Coway Co. Ltd. | 11,018 | | 869,197 |
Daesang Corp. | 19,320 | | 763,001 |
Dongbu Insurance Co. Ltd. | 13,546 | | 747,384 |
Dongwon Industries Co. | 478 | | 150,141 |
E1 Corp. | 2,359 | | 160,296 |
Fila Korea Ltd. | 1,782 | | 155,069 |
GAMEVIL, Inc. (a) | 4,509 | | 305,081 |
Hanwha Corp. | 26,490 | | 770,521 |
Hy-Lok Corp. | 15,676 | | 455,971 |
Hyundai Hysco Co. Ltd. | 24,467 | | 1,304,939 |
Hyundai Mobis | 11,884 | | 3,393,458 |
Hyundai Motor Co. | 22,305 | | 4,965,785 |
I-Sens, Inc. (a) | 597 | | 29,934 |
Interpark Corp. | 25,978 | | 290,433 |
InterPark INT Corp. | 6,599 | | 147,553 |
KEPCO Plant Service & Engineering Co. Ltd. | 14,048 | | 913,780 |
Kia Motors Corp. | 48,462 | | 2,687,904 |
Korea Zinc Co. Ltd. | 2,777 | | 915,273 |
Kumho Petro Chemical Co. Ltd. | 3,183 | | 268,973 |
LG Household & Health Care Ltd. | 3,278 | | 1,497,645 |
Naver Corp. | 1,642 | | 1,172,971 |
Samsung Electronics Co. Ltd. | 13,646 | | 17,739,413 |
Samsung Fire & Marine Insurance Co. Ltd. | 3,452 | | 818,643 |
Shinhan Financial Group Co. Ltd. | 85,660 | | 3,739,650 |
SK Hynix, Inc. (a) | 69,970 | | 2,719,288 |
SK Telecom Co. Ltd. | 4,001 | | 828,588 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
Sung Kwang Bend Co. Ltd. | 12,850 | | $ 300,385 |
WeMade Entertainment Co. Ltd. (a) | 725 | | 31,510 |
TOTAL KOREA (SOUTH) | | 50,242,997 |
Malaysia - 3.3% |
Glomac Bhd | 439,300 | | 148,116 |
Malayan Banking Bhd | 734,406 | | 2,228,542 |
Malaysian Plantations Bhd | 536,700 | | 736,986 |
Media Prima Bhd | 391,600 | | 298,876 |
SapuraKencana Petroleum Bhd (a) | 695,500 | | 918,806 |
Sunway Bhd | 314,900 | | 299,215 |
Tenaga Nasional Bhd | 894,000 | | 3,260,874 |
YTL Corp. Bhd | 3,437,000 | | 1,696,113 |
TOTAL MALAYSIA | | 9,587,528 |
Mauritius - 0.2% |
MakeMyTrip Ltd. (a) | 20,700 | | 438,633 |
Philippines - 1.6% |
Alliance Global Group, Inc. | 1,947,900 | | 1,361,236 |
Holcim Philippines, Inc. | 100,600 | | 31,371 |
Metropolitan Bank & Trust Co. | 502,180 | | 954,227 |
Philippine National Bank (a) | 20,976 | | 40,987 |
Security Bank Corp. | 714,296 | | 1,924,553 |
Vista Land & Lifescapes, Inc. | 1,051,700 | | 142,271 |
TOTAL PHILIPPINES | | 4,454,645 |
Singapore - 5.5% |
Cordlife Group Ltd. | 157,000 | | 148,397 |
Ezion Holdings Ltd. | 754,000 | | 1,365,223 |
First Resources Ltd. | 378,000 | | 774,874 |
Goodpack Ltd. | 48,000 | | 91,888 |
Keppel Corp. Ltd. | 375,000 | | 3,149,677 |
Mapletree Industrial (REIT) | 1,297,826 | | 1,490,683 |
Singapore Telecommunications Ltd. | 1,180,000 | | 3,604,850 |
United Overseas Bank Ltd. | 209,000 | | 3,627,535 |
Wing Tai Holdings Ltd. | 653,000 | | 1,041,717 |
Yanlord Land Group Ltd. | 481,000 | | 443,132 |
TOTAL SINGAPORE | | 15,737,976 |
Taiwan - 11.8% |
Acer, Inc. (a) | 1,202,000 | | 743,144 |
Advanced Semiconductor Engineering, Inc. | 1,427,000 | | 1,663,478 |
Common Stocks - continued |
| Shares | | Value |
Taiwan - continued |
ASUSTeK Computer, Inc. | 95,000 | | $ 982,579 |
Casetek Holdings | 27,000 | | 141,420 |
Catcher Technology Co. Ltd. | 251,000 | | 2,117,634 |
Cleanaway Co. Ltd. | 25,000 | | 141,718 |
Delta Electronics, Inc. | 254,000 | | 1,557,740 |
Fubon Financial Holding Co. Ltd. | 1,774,000 | | 2,293,547 |
Giant Manufacturing Co. Ltd. | 49,000 | | 383,352 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1,778,000 | | 5,104,334 |
HTC Corp. | 128,000 | | 657,705 |
King Slide Works Co. Ltd. | 11,000 | | 143,309 |
Merida Industry Co. Ltd. | 41,000 | | 274,552 |
Novatek Microelectronics Corp. | 321,000 | | 1,484,461 |
Pegatron Corp. | 351,000 | | 532,338 |
Sinopac Holdings Co. | 3,899,178 | | 1,738,541 |
Taishin Financial Holdings Co. Ltd. | 3,958,210 | | 1,797,665 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,832,393 | | 11,141,476 |
Tongtai Machine & Tool Co. Ltd. | 146,000 | | 147,619 |
Vanguard International Semiconductor Corp. | 496,000 | | 677,436 |
TOTAL TAIWAN | | 33,724,048 |
Thailand - 4.5% |
Charoen Pokphand Foods PCL (For. Reg.) | 641,900 | | 535,578 |
Delta Electronics PCL (For. Reg.) | 759,500 | | 1,337,809 |
Jasmine International Public Co. Ltd. | 1,157,300 | | 296,835 |
Kasikornbank PCL (For. Reg.) | 375,600 | | 2,280,760 |
Preuksa Real Estate PCL (For. Reg.) | 2,156,500 | | 1,492,757 |
Quality Houses PCL | 5,235,600 | | 527,443 |
Shin Corp. PLC NVDR | 773,700 | | 1,864,914 |
Thai Beverage PCL | 3,751,000 | | 1,765,247 |
Thai Tap Water Supply PCL (For. Reg.) | 513,300 | | 158,622 |
Thai Union Frozen Products PCL (For. Reg.) | 660,500 | | 1,428,770 |
Thanachart Capital PCL (For. Reg.) | 155,000 | | 166,448 |
Total Access Communication PCL NVDR | 205,500 | | 790,629 |
Toyo-Thai Corp. PCL | 122,500 | | 143,850 |
TOTAL THAILAND | | 12,789,662 |
United Kingdom - 0.2% |
Standard Chartered PLC (United Kingdom) | 27,351 | | 591,789 |
Common Stocks - continued |
| Shares | | Value |
United States of America - 1.3% |
Cognizant Technology Solutions Corp. Class A (a) | 33,500 | | $ 1,604,818 |
Las Vegas Sands Corp. | 27,100 | | 2,144,423 |
TOTAL UNITED STATES OF AMERICA | | 3,749,241 |
TOTAL COMMON STOCKS (Cost $248,757,464) | 283,019,895
|
Money Market Funds - 0.6% |
| | | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) (Cost $1,600,000) | 1,600,000 | | 1,600,000
|
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $250,357,464) | | 284,619,895 |
NET OTHER ASSETS (LIABILITIES) - 0.5% | | 1,549,116 |
NET ASSETS - 100% | $ 286,169,011 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 1,859 |
Fidelity Securities Lending Cash Central Fund | 3,492 |
Total | $ 5,351 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 39,401,991 | $ 37,388,992 | $ 2,012,999 | $ - |
Consumer Staples | 10,750,417 | 10,750,417 | - | - |
Energy | 13,174,002 | 9,464,957 | 3,709,045 | - |
Financials | 86,169,729 | 74,542,745 | 11,626,984 | - |
Health Care | 5,520,468 | 4,101,138 | 1,419,330 | - |
Industrials | 22,578,050 | 22,576,476 | 1,574 | - |
Information Technology | 68,977,653 | 56,172,699 | 12,804,954 | - |
Materials | 12,434,504 | 11,458,591 | 975,913 | - |
Telecommunication Services | 12,046,240 | 11,217,652 | 828,588 | - |
Utilities | 11,966,841 | 11,966,841 | - | - |
Money Market Funds | 1,600,000 | 1,600,000 | - | - |
Total Investments in Securities: | $ 284,619,895 | $ 251,240,508 | $ 33,379,387 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 8,120,533 |
Level 2 to Level 1 | $ 1,655,436 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,496,166) - See accompanying schedule: Unaffiliated issuers (cost $248,757,464) | $ 283,019,895 | |
Fidelity Central Funds (cost $1,600,000) | 1,600,000 | |
Total Investments (cost $250,357,464) | | $ 284,619,895 |
Cash | | 873 |
Foreign currency held at value (cost $6,093,304) | | 6,096,574 |
Receivable for investments sold | | 14,544,483 |
Receivable for fund shares sold | | 437,319 |
Dividends receivable | | 596,302 |
Distributions receivable from Fidelity Central Funds | | 866 |
Prepaid expenses | | 189 |
Other receivables | | 145,530 |
Total assets | | 306,442,031 |
| | |
Liabilities | | |
Payable for investments purchased | $ 14,781,512 | |
Payable for fund shares redeemed | 676,982 | |
Accrued management fee | 170,700 | |
Distribution and service plan fees payable | 100,833 | |
Notes payable to affiliates | 2,723,000 | |
Other affiliated payables | 75,234 | |
Other payables and accrued expenses | 144,759 | |
Collateral on securities loaned, at value | 1,600,000 | |
Total liabilities | | 20,273,020 |
| | |
Net Assets | | $ 286,169,011 |
Net Assets consist of: | | |
Paid in capital | | $ 244,640,586 |
Accumulated net investment loss | | (464,748) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 7,775,616 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 34,217,557 |
Net Assets | | $ 286,169,011 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($142,084,519 ÷ 4,795,670 shares) | | $ 29.63 |
| | |
Maximum offering price per share (100/94.25 of $29.63) | | $ 31.44 |
Class T: Net Asset Value and redemption price per share ($42,424,877 ÷ 1,469,710 shares) | | $ 28.87 |
| | |
Maximum offering price per share (100/96.50 of $28.87) | | $ 29.92 |
Class B: Net Asset Value and offering price per share ($7,441,600 ÷ 270,599 shares)A | | $ 27.50 |
| | |
Class C: Net Asset Value and offering price per share ($54,071,276 ÷ 1,988,486 shares)A | | $ 27.19 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($40,146,739 ÷ 1,317,708 shares) | | $ 30.47 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,168,483 |
Income from Fidelity Central Funds | | 5,351 |
Income before foreign taxes withheld | | 2,173,834 |
Less foreign taxes withheld | | (167,186) |
Total income | | 2,006,648 |
| | |
Expenses | | |
Management fee | $ 1,044,132 | |
Transfer agent fees | 389,273 | |
Distribution and service plan fees | 624,520 | |
Accounting and security lending fees | 77,348 | |
Custodian fees and expenses | 172,873 | |
Independent trustees' compensation | 594 | |
Registration fees | 66,381 | |
Audit | 47,688 | |
Legal | 720 | |
Miscellaneous | 26,516 | |
Total expenses | | 2,450,045 |
Net investment income (loss) | | (443,397) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 8,523,169 | |
Foreign currency transactions | (139,700) | |
Total net realized gain (loss) | | 8,383,469 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (10,008,872) | |
Assets and liabilities in foreign currencies | 4,561 | |
Total change in net unrealized appreciation (depreciation) | | (10,004,311) |
Net gain (loss) | | (1,620,842) |
Net increase (decrease) in net assets resulting from operations | | $ (2,064,239) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (443,397) | $ 2,621,540 |
Net realized gain (loss) | 8,383,469 | 28,149,471 |
Change in net unrealized appreciation (depreciation) | (10,004,311) | (972,592) |
Net increase (decrease) in net assets resulting from operations | (2,064,239) | 29,798,419 |
Distributions to shareholders from net investment income | (2,011,363) | (3,137,656) |
Distributions to shareholders from net realized gain | (13,483,906) | (1,067,553) |
Total distributions | (15,495,269) | (4,205,209) |
Share transactions - net increase (decrease) | (7,345,617) | (47,287,205) |
Redemption fees | 22,495 | 37,169 |
Total increase (decrease) in net assets | (24,882,630) | (21,656,826) |
| | |
Net Assets | | |
Beginning of period | 311,051,641 | 332,708,467 |
End of period (including accumulated net investment loss of $464,748 and undistributed net investment income of $1,990,012, respectively) | $ 286,169,011 | $ 311,051,641 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 31.34 | $ 28.87 | $ 28.70 | $ 32.97 | $ 25.96 | $ 15.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .30 | .34 | .35 | .25 | .19 |
Net realized and unrealized gain (loss) | (.10) | 2.59 | 1.37 | (2.62) | 7.09 | 10.07 |
Total from investment operations | (.12) | 2.89 | 1.71 | (2.27) | 7.34 | 10.26 |
Distributions from net investment income | (.26) | (.33) | (.31) | (.20) | (.12) | (.05) |
Distributions from net realized gain | (1.33) | (.09) | (1.23) | (1.81) | (.22) | - |
Total distributions | (1.59) | (.42) | (1.54) | (2.01) | (.34) | (.05) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 29.63 | $ 31.34 | $ 28.87 | $ 28.70 | $ 32.97 | $ 25.96 |
Total Return B,C,D | (.43)% | 10.10% | 6.36% | (7.44)% | 28.53% | 65.43% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.47% A | 1.41% | 1.42% | 1.39% | 1.44% | 1.54% |
Expenses net of fee waivers, if any | 1.47% A | 1.41% | 1.42% | 1.39% | 1.44% | 1.50% |
Expenses net of all reductions | 1.47% A | 1.38% | 1.38% | 1.35% | 1.40% | 1.41% |
Net investment income (loss) | (.13)% A | .99% | 1.24% | 1.12% | .86% | .94% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 142,085 | $ 155,104 | $ 160,427 | $ 179,346 | $ 189,255 | $ 131,564 |
Portfolio turnover rate G | 113% A | 95% | 95% | 119% | 138% | 91% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 30.53 | $ 28.13 | $ 27.98 | $ 32.20 | $ 25.40 | $ 15.43 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | .20 | .25 | .25 | .15 | .14 |
Net realized and unrealized gain (loss) | (.10) | 2.54 | 1.33 | (2.55) | 6.94 | 9.86 |
Total from investment operations | (.16) | 2.74 | 1.58 | (2.30) | 7.09 | 10.00 |
Distributions from net investment income | (.17) | (.25) | (.20) | (.12) | (.08) | (.04) |
Distributions from net realized gain | (1.33) | (.09) | (1.23) | (1.81) | (.22) | - |
Total distributions | (1.50) | (.34) | (1.43) | (1.93) | (.30) | (.04) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 28.87 | $ 30.53 | $ 28.13 | $ 27.98 | $ 32.20 | $ 25.40 |
Total Return B,C,D | (.58)% | 9.80% | 6.04% | (7.70)% | 28.13% | 65.06% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.77% A | 1.70% | 1.70% | 1.70% | 1.74% | 1.84% |
Expenses net of fee waivers, if any | 1.77% A | 1.70% | 1.70% | 1.69% | 1.74% | 1.75% |
Expenses net of all reductions | 1.77% A | 1.67% | 1.67% | 1.65% | 1.70% | 1.66% |
Net investment income (loss) | (.43)% A | .70% | .95% | .82% | .55% | .69% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 42,425 | $ 47,620 | $ 49,359 | $ 55,452 | $ 61,620 | $ 45,259 |
Portfolio turnover rate G | 113% A | 95% | 95% | 119% | 138% | 91% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 29.06 | $ 26.77 | $ 26.62 | $ 30.72 | $ 24.29 | $ 14.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.13) | .06 | .12 | .10 | .02 | .04 |
Net realized and unrealized gain (loss) | (.10) | 2.41 | 1.26 | (2.44) | 6.61 | 9.45 |
Total from investment operations | (.23) | 2.47 | 1.38 | (2.34) | 6.63 | 9.49 |
Distributions from net investment income | - | (.09) | - | - | - | (.03) |
Distributions from net realized gain | (1.33) | (.09) | (1.23) | (1.77) | (.21) | - |
Total distributions | (1.33) | (.18) | (1.23) | (1.77) | (.21) | (.03) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 27.50 | $ 29.06 | $ 26.77 | $ 26.62 | $ 30.72 | $ 24.29 |
Total Return B,C,D | (.84)% | 9.27% | 5.51% | (8.16)% | 27.48% | 64.23% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.27% A | 2.20% | 2.19% | 2.19% | 2.24% | 2.32% |
Expenses net of fee waivers, if any | 2.27% A | 2.20% | 2.19% | 2.18% | 2.24% | 2.25% |
Expenses net of all reductions | 2.27% A | 2.17% | 2.16% | 2.15% | 2.20% | 2.16% |
Net investment income (loss) | (.92)% A | .20% | .46% | .32% | .06% | .19% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,442 | $ 10,194 | $ 15,823 | $ 20,831 | $ 29,611 | $ 25,750 |
Portfolio turnover rate G | 113% A | 95% | 95% | 119% | 138% | 91% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 28.78 | $ 26.53 | $ 26.44 | $ 30.58 | $ 24.19 | $ 14.76 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) | .07 | .13 | .11 | .03 | .04 |
Net realized and unrealized gain (loss) | (.11) | 2.39 | 1.25 | (2.41) | 6.59 | 9.41 |
Total from investment operations | (.23) | 2.46 | 1.38 | (2.30) | 6.62 | 9.45 |
Distributions from net investment income | (.03) | (.12) | (.06) | (.04) | (.02) | (.03) |
Distributions from net realized gain | (1.33) | (.09) | (1.23) | (1.81) | (.22) | - |
Total distributions | (1.36) | (.21) | (1.29) | (1.85) | (.24) | (.03) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 27.19 | $ 28.78 | $ 26.53 | $ 26.44 | $ 30.58 | $ 24.19 |
Total Return B,C,D | (.84)% | 9.33% | 5.57% | (8.10)% | 27.58% | 64.21% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.22% A | 2.16% | 2.16% | 2.13% | 2.17% | 2.28% |
Expenses net of fee waivers, if any | 2.22% A | 2.16% | 2.16% | 2.13% | 2.17% | 2.25% |
Expenses net of all reductions | 2.22% A | 2.12% | 2.13% | 2.10% | 2.13% | 2.16% |
Net investment income (loss) | (.87)% A | .24% | .49% | .37% | .12% | .19% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 54,071 | $ 61,824 | $ 67,074 | $ 78,939 | $ 87,089 | $ 59,491 |
Portfolio turnover rate G | 113% A | 95% | 95% | 119% | 138% | 91% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 32.24 | $ 29.67 | $ 29.49 | $ 33.80 | $ 26.58 | $ 16.07 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .03 | .40 | .44 | .46 | .34 | .26 |
Net realized and unrealized gain (loss) | (.12) | 2.68 | 1.39 | (2.69) | 7.26 | 10.29 |
Total from investment operations | (.09) | 3.08 | 1.83 | (2.23) | 7.60 | 10.55 |
Distributions from net investment income | (.35) | (.41) | (.42) | (.29) | (.17) | (.05) |
Distributions from net realized gain | (1.33) | (.09) | (1.23) | (1.81) | (.22) | - |
Total distributions | (1.68) | (.51) J | (1.65) | (2.09) I | (.39) | (.05) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 30.47 | $ 32.24 | $ 29.67 | $ 29.49 | $ 33.80 | $ 26.58 |
Total Return B,C | (.30)% | 10.47% | 6.64% | (7.13)% | 28.87% | 65.94% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.17% A | 1.11% | 1.11% | 1.10% | 1.14% | 1.25% |
Expenses net of fee waivers, if any | 1.17% A | 1.11% | 1.11% | 1.10% | 1.14% | 1.25% |
Expenses net of all reductions | 1.17% A | 1.08% | 1.08% | 1.06% | 1.10% | 1.16% |
Net investment income (loss) | .17% A | 1.29% | 1.54% | 1.41% | 1.16% | 1.18% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 40,147 | $ 36,310 | $ 40,026 | $ 49,888 | $ 45,042 | $ 23,888 |
Portfolio turnover rate F | 113% A | 95% | 95% | 119% | 138% | 91% |
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.
I 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.
J Total distributions of $.51 per share is comprised of distributions from net investment income of $.413 and distributions from net realized gain of $.092 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® 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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014. Including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. 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.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC) 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 | $ 43,180,261 |
Gross unrealized depreciation | (9,182,298) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 33,997,963 |
| |
Tax cost | $ 250,621,932 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $166,273,549 and $186,529,223, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 184,464 | $ 3,300 |
Class T | .25% | .25% | 111,531 | 2,295 |
Class B | .75% | .25% | 43,669 | 32,900 |
Class C | .75% | .25% | 284,856 | 21,773 |
| | | $ 624,520 | $ 60,268 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 15,513 |
Class T | 3,860 |
Class B* | 7,209 |
Class C* | 997 |
| $ 27,579 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 192,350 | .26 |
Class T | 69,076 | .31 |
Class B | 13,180 | .30 |
Class C | 72,298 | .25 |
Institutional Class | 42,369 | .21 |
| $ 389,273 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $297 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 or other affiliated entities of 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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Fund's Statement of Assets and Liabilities. 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 | $ 5,588,000 | .31% | $ 98 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or
Semiannual Report
6. Committed Line of Credit - continued
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 $281 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $3,492. During the period, there were no securities loaned to FCM.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 1,258,600 | $ 1,813,789 |
Class T | 253,592 | 420,491 |
Class B | - | 51,393 |
Class C | 67,366 | 298,953 |
Institutional Class | 431,805 | 553,030 |
Total | $ 2,011,363 | $ 3,137,656 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Distributions to Shareholders - continued
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net realized gain | | |
Class A | $ 6,564,461 | $ 507,200 |
Class T | 2,044,109 | 157,899 |
Class B | 453,142 | 51,958 |
Class C | 2,799,874 | 227,303 |
Institutional Class | 1,622,320 | 123,193 |
Total | $ 13,483,906 | $ 1,067,553 |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 289,152 | 824,496 | $ 8,607,444 | $ 24,773,595 |
Reinvestment of distributions | 228,279 | 67,510 | 6,811,859 | 1,994,909 |
Shares redeemed | (670,659) | (1,500,614) | (19,756,651) | (44,694,536) |
Net increase (decrease) | (153,228) | (608,608) | $ (4,337,348) | $ (17,926,032) |
Class T | | | | |
Shares sold | 55,334 | 210,810 | $ 1,603,294 | $ 6,182,895 |
Reinvestment of distributions | 77,360 | 19,545 | 2,251,960 | 564,060 |
Shares redeemed | (222,758) | (425,275) | (6,404,619) | (12,356,062) |
Net increase (decrease) | (90,064) | (194,920) | $ (2,549,365) | $ (5,609,107) |
Class B | | | | |
Shares sold | 3,282 | 10,130 | $ 91,978 | $ 286,596 |
Reinvestment of distributions | 13,707 | 3,105 | 380,925 | 85,708 |
Shares redeemed | (97,160) | (253,486) | (2,663,559) | (7,070,284) |
Net increase (decrease) | (80,171) | (240,251) | $ (2,190,656) | $ (6,697,980) |
Class C | | | | |
Shares sold | 89,586 | 303,601 | $ 2,427,799 | $ 8,446,000 |
Reinvestment of distributions | 89,602 | 15,990 | 2,461,356 | 436,858 |
Shares redeemed | (339,223) | (699,221) | (9,189,452) | (19,141,307) |
Net increase (decrease) | (160,035) | (379,630) | $ (4,300,297) | $ (10,258,449) |
Semiannual Report
9. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Institutional Class | | | | |
Shares sold | 445,192 | 392,380 | $ 13,738,694 | $ 12,135,351 |
Reinvestment of distributions | 52,027 | 17,860 | 1,594,630 | 541,525 |
Shares redeemed | (305,866) | (632,861) | (9,301,275) | (19,472,513) |
Net increase (decrease) | 191,353 | (222,621) | $ 6,032,049 | $ (6,795,637) |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
AEAI-USAN-0614
1.784874.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Asia
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio B | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.47% | | | |
Actual | | $ 1,000.00 | $ 995.70 | $ 7.27 |
HypotheticalA | | $ 1,000.00 | $ 1,017.50 | $ 7.35 |
Class T | 1.77% | | | |
Actual | | $ 1,000.00 | $ 994.20 | $ 8.75 |
HypotheticalA | | $ 1,000.00 | $ 1,016.02 | $ 8.85 |
Class B | 2.27% | | | |
Actual | | $ 1,000.00 | $ 991.60 | $ 11.21 |
HypotheticalA | | $ 1,000.00 | $ 1,013.54 | $ 11.33 |
Class C | 2.22% | | | |
Actual | | $ 1,000.00 | $ 991.60 | $ 10.96 |
HypotheticalA | | $ 1,000.00 | $ 1,013.79 | $ 11.08 |
Institutional Class | 1.17% | | | |
Actual | | $ 1,000.00 | $ 997.00 | $ 5.79 |
HypotheticalA | | $ 1,000.00 | $ 1,018.99 | $ 5.86 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Samsung Electronics Co. Ltd. | 6.2 | 6.2 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.9 | 1.9 |
AIA Group Ltd. | 2.6 | 2.7 |
Tencent Holdings Ltd. | 2.4 | 2.4 |
China Construction Bank Corp. (H Shares) | 2.1 | 2.4 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1.8 | 0.0 |
Hyundai Motor Co. | 1.7 | 2.3 |
Bank of China Ltd. (H Shares) | 1.5 | 0.0 |
Hutchison Whampoa Ltd. | 1.4 | 0.0 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 1.3 | 2.2 |
| 24.9 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 30.2 | 34.6 |
Information Technology | 24.0 | 19.7 |
Consumer Discretionary | 13.6 | 11.7 |
Industrials | 8.1 | 6.9 |
Energy | 4.6 | 5.7 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 98.9% | | | Stocks 98.0% | |
| Short-Term Investments and Net Other Assets (Liabilities) 1.1% | | | Short-Term Investments and Net Other Assets (Liabilities) 2.0% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.9% |
| Shares | | Value |
Bermuda - 2.3% |
BW Offshore Ltd. | 117,300 | | $ 153,130 |
Cafe de Coral Holdings Ltd. | 196,000 | | 615,585 |
CSI Properties Ltd. | 14,580,000 | | 507,755 |
Great Eagle Holdings Ltd. | 442,000 | | 1,582,043 |
Hongkong Land Holdings Ltd. | 217,000 | | 1,519,000 |
Huabao International Holdings Ltd. | 420,000 | | 198,815 |
Luk Fook Holdings International Ltd. | 159,000 | | 451,183 |
Oriental Watch Holdings Ltd. | 1,280,000 | | 288,922 |
PAX Global Technology Ltd. (a) | 650,000 | | 338,710 |
Yue Yuen Industrial (Holdings) Ltd. | 263,500 | | 813,990 |
TOTAL BERMUDA | | 6,469,133 |
British Virgin Islands - 0.0% |
Michael Kors Holdings Ltd. (a) | 1,600 | | 145,920 |
Cayman Islands - 11.9% |
AAC Technology Holdings, Inc. | 128,500 | | 717,669 |
Baidu.com, Inc. sponsored ADR (a) | 2,600 | | 400,010 |
Bonjour Holdings Ltd. | 1,360,000 | | 233,305 |
China Liansu Group Holdings Ltd. | 53,000 | | 28,165 |
China Lilang Ltd. | 197,000 | | 127,048 |
China Lodging Group Ltd. ADR (a) | 38,800 | | 860,972 |
China Resources Cement Holdings Ltd. | 2,201,972 | | 1,528,013 |
China Sanjiang Fine Chemicals Ltd. | 1,262,000 | | 551,813 |
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. | 2,052,000 | | 624,629 |
Cimc Enric Holdings Ltd. | 422,000 | | 610,715 |
Ctrip.com International Ltd. sponsored ADR (a) | 9,400 | | 439,356 |
Daqo New Energy Corp. ADR (a) | 2,100 | | 86,247 |
ENN Energy Holdings Ltd. | 136,000 | | 950,761 |
GCL-Poly Energy Holdings Ltd. (a)(d) | 5,772,000 | | 1,727,219 |
Goodbaby International Holdings Ltd. | 251,000 | | 137,593 |
Greatview Aseptic Pack Co. Ltd. | 704,000 | | 429,504 |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 4,700 | | 133,574 |
Hosa International Ltd. | 1,420,000 | | 441,406 |
Hydoo International Holding Ltd. | 338,000 | | 136,456 |
iKang Healthcare Group, Inc. sponsored ADR | 1,900 | | 26,087 |
KWG Property Holding Ltd. | 2,601,500 | | 1,439,508 |
Lee & Man Paper Manufacturing Ltd. | 1,012,000 | | 549,535 |
Lifestyle International Holdings Ltd. | 749,500 | | 1,467,494 |
Longfor Properties Co. Ltd. | 576,000 | | 744,429 |
Melco Crown Entertainment Ltd. sponsored ADR | 24,200 | | 827,156 |
MGM China Holdings Ltd. | 403,600 | | 1,405,555 |
Sands China Ltd. | 389,200 | | 2,841,334 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Silicon Motion Technology Corp. sponsored ADR | 14,200 | | $ 235,578 |
Sino Biopharmaceutical Ltd. | 820,000 | | 642,001 |
Sitoy Group Holdings Ltd. | 484,000 | | 290,290 |
SOHO China Ltd. | 693,500 | | 551,905 |
SouFun Holdings Ltd. ADR | 55,100 | | 648,527 |
Springland International Holdings Ltd. | 4,086,000 | | 1,607,427 |
Tencent Holdings Ltd. | 110,700 | | 6,899,340 |
Value Partners Group Ltd. | 921,000 | | 591,592 |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 52,500 | | 1,785,000 |
Xinyi Glass Holdings Ltd. | 292,000 | | 229,745 |
Yingde Gases Group Co. Ltd. | 550,000 | | 555,466 |
Zhen Ding Technology Holding Ltd. | 222,400 | | 645,108 |
TOTAL CAYMAN ISLANDS | | 34,147,532 |
China - 15.3% |
Aluminum Corp. of China Ltd. (H Shares) (a) | 2,722,000 | | 975,913 |
Angang Steel Co. Ltd. (H Shares) (a) | 650,000 | | 394,044 |
Anhui Conch Cement Co. Ltd. (H Shares) | 277,500 | | 1,030,833 |
Bank of China Ltd. (H Shares) | 9,732,000 | | 4,280,451 |
BBMG Corp. (H Shares) | 165,000 | | 115,988 |
Beijing Jingneng Clean Energy Co. Ltd. (H Shares) | 1,160,000 | | 498,236 |
China Communications Construction Co. Ltd. (H Shares) | 1,982,000 | | 1,296,118 |
China Construction Bank Corp. (H Shares) | 8,928,000 | | 6,160,855 |
China Longyuan Power Grid Corp. Ltd. (H Shares) | 801,000 | | 824,458 |
China Merchants Bank Co. Ltd. (H Shares) | 965,000 | | 1,722,648 |
China Pacific Insurance Group Co. Ltd. (H Shares) | 815,200 | | 2,555,074 |
China Petroleum & Chemical Corp. (H Shares) | 4,178,000 | | 3,709,045 |
China Railway Construction Corp. Ltd. (H Shares) | 884,500 | | 731,289 |
China Railway Group Ltd. (H Shares) | 3,237,000 | | 1,440,439 |
China Shenhua Energy Co. Ltd. (H Shares) | 875,500 | | 2,371,420 |
China Suntien Green Energy Corp. Ltd. (H Shares) | 1,553,900 | | 525,119 |
Chongqing Changan Automobile Co. Ltd. (B Shares) | 105,613 | | 190,712 |
CSR Corp. Ltd. (H Shares) | 2,249,000 | | 1,641,871 |
Guangdong Kelon Electrical Holdings Ltd. Series H (a) | 320,000 | | 379,314 |
Guangzhou R&F Properties Co. Ltd. (H Shares) | 635,200 | | 829,133 |
Huadian Fuxin Energy Corp. Ltd. (H Shares) | 2,010,000 | | 938,507 |
Huadian Power International Corp. Ltd. (H Shares) | 1,996,000 | | 1,083,866 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 6,379,000 | | 3,811,568 |
Maanshan Iron & Steel Ltd. (H Shares) (a) | 2,538,000 | | 530,322 |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 383,500 | | 2,836,820 |
Shanghai Electric Group Co. Ltd. (H Shares) | 1,244,000 | | 487,783 |
Sinotrans Ltd. (H Shares) | 2,463,000 | | 1,359,694 |
Common Stocks - continued |
| Shares | | Value |
China - continued |
Weichai Power Co. Ltd. (H Shares) | 259,000 | | $ 901,979 |
Yantai Changyu Pioneer Wine Co. Ltd. (B Shares) | 43,700 | | 108,391 |
TOTAL CHINA | | 43,731,890 |
Hong Kong - 9.9% |
AIA Group Ltd. | 1,504,200 | | 7,295,019 |
Champion (REIT) | 1,908,000 | | 898,265 |
China Power International Development Ltd. | 1,648,000 | | 593,054 |
Dah Chong Hong Holdings Ltd. | 1,637,000 | | 1,040,947 |
Dah Sing Banking Group Ltd. | 192,400 | | 288,366 |
Dah Sing Financial Holdings Ltd. | 136,000 | | 606,066 |
Far East Horizon Ltd. | 1,442,000 | | 976,467 |
Fosun International Ltd. | 562,500 | | 680,547 |
Fosun International Ltd. rights 5/13/14 (a) | 43,875 | | 198 |
Galaxy Entertainment Group Ltd. | 294,000 | | 2,307,496 |
HKT Trust/HKT Ltd. unit | 1,725,000 | | 1,804,442 |
Hutchison Whampoa Ltd. | 299,000 | | 4,087,992 |
Hysan Development Co. Ltd. | 333,000 | | 1,423,839 |
Lenovo Group Ltd. | 1,406,000 | | 1,599,510 |
Magnificent Estates Ltd. | 2,296,000 | | 111,055 |
PCCW Ltd. | 2,157,000 | | 1,151,817 |
Singamas Container Holdings Ltd. | 1,552,000 | | 336,306 |
Techtronic Industries Co. Ltd. | 94,000 | | 299,473 |
Vitasoy International Holdings Ltd. | 550,000 | | 753,391 |
Wheelock and Co. Ltd. | 517,000 | | 2,127,229 |
TOTAL HONG KONG | | 28,381,479 |
India - 10.6% |
Apollo Tyres Ltd. | 158,882 | | 418,970 |
Axis Bank Ltd. | 54,016 | | 1,364,866 |
Balkrishna Industries Ltd. (a) | 6,513 | | 56,810 |
Bank of Baroda | 60,734 | | 822,625 |
Bharat Heavy Electricals Ltd. | 587,724 | | 1,758,349 |
Bharat Petroleum Corp. Ltd. | 55,718 | | 420,229 |
Bharti Infratel Ltd. (a) | 223,857 | | 800,377 |
Cairn India Ltd. | 202,955 | | 1,127,752 |
CESC Ltd. GDR (a) | 20,508 | | 154,673 |
Cox & Kings India Ltd. | 176,341 | | 441,328 |
Engineers India Ltd. | 40,101 | | 151,954 |
Havells India Ltd. | 13,915 | | 214,879 |
HCL Technologies Ltd. | 62,436 | | 1,452,234 |
Hexaware Technologies Ltd. | 127,769 | | 321,250 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Hindustan Petroleum Corp. Ltd. | 167,601 | | $ 894,344 |
Housing Development Finance Corp. Ltd. | 189,249 | | 2,817,477 |
IL&FS Transportation Networks Ltd. | 27,745 | | 60,835 |
IL&FS Transportation Networks Ltd. rights (a) | 2,944 | | 1,574 |
Ipca Laboratories Ltd. | 33,383 | | 474,969 |
Lupin Ltd. | 55,344 | | 944,361 |
Mahindra & Mahindra Ltd. | 39,252 | | 699,072 |
Max India Ltd. | 86,861 | | 307,754 |
McLeod Russel India Ltd. | 66,079 | | 295,145 |
MindTree Consulting Ltd. | 44,048 | | 1,036,258 |
Mphasis BFL Ltd. (a) | 35,444 | | 242,522 |
MRF Ltd. | 1,254 | | 426,806 |
NIIT Technologies Ltd. | 52,860 | | 355,643 |
NTPC Ltd. | 484,105 | | 933,858 |
Persistent Systems Ltd. | 1,732 | | 28,927 |
Petronet LNG Ltd. | 312,748 | | 750,823 |
Power Finance Corp. Ltd. | 74,559 | | 227,268 |
Punjab National Bank | 67,960 | | 906,971 |
Redington India Ltd. | 112,511 | | 164,434 |
Reliance Infrastructure Ltd. (a) | 34,936 | | 294,594 |
Rural Electrification Corp. Ltd. | 66,915 | | 263,932 |
Shriram City Union Finance Ltd. | 30,158 | | 591,210 |
Sintex Industries Ltd. | 193,191 | | 146,219 |
Sun Pharmaceutical Industries Ltd. | 120,304 | | 1,262,180 |
Tata Consultancy Services Ltd. | 10,024 | | 363,832 |
Tata Motors Ltd. | 291,011 | | 2,012,999 |
Tata Power Co. Ltd. | 323,530 | | 418,929 |
The Jammu & Kashmir Bank Ltd. | 36,088 | | 1,002,225 |
UPL Ltd. | 339,831 | | 1,510,548 |
Yes Bank Ltd. | 182,949 | | 1,336,894 |
TOTAL INDIA | | 30,278,899 |
Indonesia - 2.2% |
PT Adaro Energy Tbk | 3,058,500 | | 313,482 |
PT Bank Mandiri (Persero) Tbk | 2,111,300 | | 1,803,929 |
PT Bank Rakyat Indonesia Tbk | 3,357,800 | | 2,875,253 |
PT BISI International Tbk | 2,258,600 | | 120,144 |
PT Express Transindo Utama Tbk | 988,900 | | 110,766 |
PT Perusahaan Perkebunan London Sumatra Indonesia Tbk | 4,305,000 | | 912,274 |
PT Tempo Scan Pacific Tbk | 827,400 | | 207,539 |
TOTAL INDONESIA | | 6,343,387 |
Common Stocks - continued |
| Shares | | Value |
Israel - 0.0% |
Sarine Technologies Ltd. | 66,000 | | $ 145,824 |
Japan - 0.7% |
Fuji Media Holdings, Inc. | 34,500 | | 580,765 |
KDDI Corp. | 11,400 | | 606,825 |
SoftBank Corp. | 4,000 | | 296,963 |
Suzuki Motor Corp. | 22,300 | | 574,759 |
TOTAL JAPAN | | 2,059,312 |
Korea (South) - 17.6% |
AMOREPACIFIC Corp. | 567 | | 732,693 |
AMOREPACIFIC Group, Inc. | 1,705 | | 881,299 |
CJ E&M Corp. (a) | 3,046 | | 148,600 |
CJ O Shopping Co. Ltd. | 866 | | 305,795 |
Cosmax Bti, Inc. | 780 | | 31,824 |
Coway Co. Ltd. | 11,018 | | 869,197 |
Daesang Corp. | 19,320 | | 763,001 |
Dongbu Insurance Co. Ltd. | 13,546 | | 747,384 |
Dongwon Industries Co. | 478 | | 150,141 |
E1 Corp. | 2,359 | | 160,296 |
Fila Korea Ltd. | 1,782 | | 155,069 |
GAMEVIL, Inc. (a) | 4,509 | | 305,081 |
Hanwha Corp. | 26,490 | | 770,521 |
Hy-Lok Corp. | 15,676 | | 455,971 |
Hyundai Hysco Co. Ltd. | 24,467 | | 1,304,939 |
Hyundai Mobis | 11,884 | | 3,393,458 |
Hyundai Motor Co. | 22,305 | | 4,965,785 |
I-Sens, Inc. (a) | 597 | | 29,934 |
Interpark Corp. | 25,978 | | 290,433 |
InterPark INT Corp. | 6,599 | | 147,553 |
KEPCO Plant Service & Engineering Co. Ltd. | 14,048 | | 913,780 |
Kia Motors Corp. | 48,462 | | 2,687,904 |
Korea Zinc Co. Ltd. | 2,777 | | 915,273 |
Kumho Petro Chemical Co. Ltd. | 3,183 | | 268,973 |
LG Household & Health Care Ltd. | 3,278 | | 1,497,645 |
Naver Corp. | 1,642 | | 1,172,971 |
Samsung Electronics Co. Ltd. | 13,646 | | 17,739,413 |
Samsung Fire & Marine Insurance Co. Ltd. | 3,452 | | 818,643 |
Shinhan Financial Group Co. Ltd. | 85,660 | | 3,739,650 |
SK Hynix, Inc. (a) | 69,970 | | 2,719,288 |
SK Telecom Co. Ltd. | 4,001 | | 828,588 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
Sung Kwang Bend Co. Ltd. | 12,850 | | $ 300,385 |
WeMade Entertainment Co. Ltd. (a) | 725 | | 31,510 |
TOTAL KOREA (SOUTH) | | 50,242,997 |
Malaysia - 3.3% |
Glomac Bhd | 439,300 | | 148,116 |
Malayan Banking Bhd | 734,406 | | 2,228,542 |
Malaysian Plantations Bhd | 536,700 | | 736,986 |
Media Prima Bhd | 391,600 | | 298,876 |
SapuraKencana Petroleum Bhd (a) | 695,500 | | 918,806 |
Sunway Bhd | 314,900 | | 299,215 |
Tenaga Nasional Bhd | 894,000 | | 3,260,874 |
YTL Corp. Bhd | 3,437,000 | | 1,696,113 |
TOTAL MALAYSIA | | 9,587,528 |
Mauritius - 0.2% |
MakeMyTrip Ltd. (a) | 20,700 | | 438,633 |
Philippines - 1.6% |
Alliance Global Group, Inc. | 1,947,900 | | 1,361,236 |
Holcim Philippines, Inc. | 100,600 | | 31,371 |
Metropolitan Bank & Trust Co. | 502,180 | | 954,227 |
Philippine National Bank (a) | 20,976 | | 40,987 |
Security Bank Corp. | 714,296 | | 1,924,553 |
Vista Land & Lifescapes, Inc. | 1,051,700 | | 142,271 |
TOTAL PHILIPPINES | | 4,454,645 |
Singapore - 5.5% |
Cordlife Group Ltd. | 157,000 | | 148,397 |
Ezion Holdings Ltd. | 754,000 | | 1,365,223 |
First Resources Ltd. | 378,000 | | 774,874 |
Goodpack Ltd. | 48,000 | | 91,888 |
Keppel Corp. Ltd. | 375,000 | | 3,149,677 |
Mapletree Industrial (REIT) | 1,297,826 | | 1,490,683 |
Singapore Telecommunications Ltd. | 1,180,000 | | 3,604,850 |
United Overseas Bank Ltd. | 209,000 | | 3,627,535 |
Wing Tai Holdings Ltd. | 653,000 | | 1,041,717 |
Yanlord Land Group Ltd. | 481,000 | | 443,132 |
TOTAL SINGAPORE | | 15,737,976 |
Taiwan - 11.8% |
Acer, Inc. (a) | 1,202,000 | | 743,144 |
Advanced Semiconductor Engineering, Inc. | 1,427,000 | | 1,663,478 |
Common Stocks - continued |
| Shares | | Value |
Taiwan - continued |
ASUSTeK Computer, Inc. | 95,000 | | $ 982,579 |
Casetek Holdings | 27,000 | | 141,420 |
Catcher Technology Co. Ltd. | 251,000 | | 2,117,634 |
Cleanaway Co. Ltd. | 25,000 | | 141,718 |
Delta Electronics, Inc. | 254,000 | | 1,557,740 |
Fubon Financial Holding Co. Ltd. | 1,774,000 | | 2,293,547 |
Giant Manufacturing Co. Ltd. | 49,000 | | 383,352 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1,778,000 | | 5,104,334 |
HTC Corp. | 128,000 | | 657,705 |
King Slide Works Co. Ltd. | 11,000 | | 143,309 |
Merida Industry Co. Ltd. | 41,000 | | 274,552 |
Novatek Microelectronics Corp. | 321,000 | | 1,484,461 |
Pegatron Corp. | 351,000 | | 532,338 |
Sinopac Holdings Co. | 3,899,178 | | 1,738,541 |
Taishin Financial Holdings Co. Ltd. | 3,958,210 | | 1,797,665 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,832,393 | | 11,141,476 |
Tongtai Machine & Tool Co. Ltd. | 146,000 | | 147,619 |
Vanguard International Semiconductor Corp. | 496,000 | | 677,436 |
TOTAL TAIWAN | | 33,724,048 |
Thailand - 4.5% |
Charoen Pokphand Foods PCL (For. Reg.) | 641,900 | | 535,578 |
Delta Electronics PCL (For. Reg.) | 759,500 | | 1,337,809 |
Jasmine International Public Co. Ltd. | 1,157,300 | | 296,835 |
Kasikornbank PCL (For. Reg.) | 375,600 | | 2,280,760 |
Preuksa Real Estate PCL (For. Reg.) | 2,156,500 | | 1,492,757 |
Quality Houses PCL | 5,235,600 | | 527,443 |
Shin Corp. PLC NVDR | 773,700 | | 1,864,914 |
Thai Beverage PCL | 3,751,000 | | 1,765,247 |
Thai Tap Water Supply PCL (For. Reg.) | 513,300 | | 158,622 |
Thai Union Frozen Products PCL (For. Reg.) | 660,500 | | 1,428,770 |
Thanachart Capital PCL (For. Reg.) | 155,000 | | 166,448 |
Total Access Communication PCL NVDR | 205,500 | | 790,629 |
Toyo-Thai Corp. PCL | 122,500 | | 143,850 |
TOTAL THAILAND | | 12,789,662 |
United Kingdom - 0.2% |
Standard Chartered PLC (United Kingdom) | 27,351 | | 591,789 |
Common Stocks - continued |
| Shares | | Value |
United States of America - 1.3% |
Cognizant Technology Solutions Corp. Class A (a) | 33,500 | | $ 1,604,818 |
Las Vegas Sands Corp. | 27,100 | | 2,144,423 |
TOTAL UNITED STATES OF AMERICA | | 3,749,241 |
TOTAL COMMON STOCKS (Cost $248,757,464) | 283,019,895
|
Money Market Funds - 0.6% |
| | | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) (Cost $1,600,000) | 1,600,000 | | 1,600,000
|
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $250,357,464) | | 284,619,895 |
NET OTHER ASSETS (LIABILITIES) - 0.5% | | 1,549,116 |
NET ASSETS - 100% | $ 286,169,011 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 1,859 |
Fidelity Securities Lending Cash Central Fund | 3,492 |
Total | $ 5,351 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 39,401,991 | $ 37,388,992 | $ 2,012,999 | $ - |
Consumer Staples | 10,750,417 | 10,750,417 | - | - |
Energy | 13,174,002 | 9,464,957 | 3,709,045 | - |
Financials | 86,169,729 | 74,542,745 | 11,626,984 | - |
Health Care | 5,520,468 | 4,101,138 | 1,419,330 | - |
Industrials | 22,578,050 | 22,576,476 | 1,574 | - |
Information Technology | 68,977,653 | 56,172,699 | 12,804,954 | - |
Materials | 12,434,504 | 11,458,591 | 975,913 | - |
Telecommunication Services | 12,046,240 | 11,217,652 | 828,588 | - |
Utilities | 11,966,841 | 11,966,841 | - | - |
Money Market Funds | 1,600,000 | 1,600,000 | - | - |
Total Investments in Securities: | $ 284,619,895 | $ 251,240,508 | $ 33,379,387 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 8,120,533 |
Level 2 to Level 1 | $ 1,655,436 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,496,166) - See accompanying schedule: Unaffiliated issuers (cost $248,757,464) | $ 283,019,895 | |
Fidelity Central Funds (cost $1,600,000) | 1,600,000 | |
Total Investments (cost $250,357,464) | | $ 284,619,895 |
Cash | | 873 |
Foreign currency held at value (cost $6,093,304) | | 6,096,574 |
Receivable for investments sold | | 14,544,483 |
Receivable for fund shares sold | | 437,319 |
Dividends receivable | | 596,302 |
Distributions receivable from Fidelity Central Funds | | 866 |
Prepaid expenses | | 189 |
Other receivables | | 145,530 |
Total assets | | 306,442,031 |
| | |
Liabilities | | |
Payable for investments purchased | $ 14,781,512 | |
Payable for fund shares redeemed | 676,982 | |
Accrued management fee | 170,700 | |
Distribution and service plan fees payable | 100,833 | |
Notes payable to affiliates | 2,723,000 | |
Other affiliated payables | 75,234 | |
Other payables and accrued expenses | 144,759 | |
Collateral on securities loaned, at value | 1,600,000 | |
Total liabilities | | 20,273,020 |
| | |
Net Assets | | $ 286,169,011 |
Net Assets consist of: | | |
Paid in capital | | $ 244,640,586 |
Accumulated net investment loss | | (464,748) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 7,775,616 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 34,217,557 |
Net Assets | | $ 286,169,011 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($142,084,519 ÷ 4,795,670 shares) | | $ 29.63 |
| | |
Maximum offering price per share (100/94.25 of $29.63) | | $ 31.44 |
Class T: Net Asset Value and redemption price per share ($42,424,877 ÷ 1,469,710 shares) | | $ 28.87 |
| | |
Maximum offering price per share (100/96.50 of $28.87) | | $ 29.92 |
Class B: Net Asset Value and offering price per share ($7,441,600 ÷ 270,599 shares)A | | $ 27.50 |
| | |
Class C: Net Asset Value and offering price per share ($54,071,276 ÷ 1,988,486 shares)A | | $ 27.19 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($40,146,739 ÷ 1,317,708 shares) | | $ 30.47 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,168,483 |
Income from Fidelity Central Funds | | 5,351 |
Income before foreign taxes withheld | | 2,173,834 |
Less foreign taxes withheld | | (167,186) |
Total income | | 2,006,648 |
| | |
Expenses | | |
Management fee | $ 1,044,132 | |
Transfer agent fees | 389,273 | |
Distribution and service plan fees | 624,520 | |
Accounting and security lending fees | 77,348 | |
Custodian fees and expenses | 172,873 | |
Independent trustees' compensation | 594 | |
Registration fees | 66,381 | |
Audit | 47,688 | |
Legal | 720 | |
Miscellaneous | 26,516 | |
Total expenses | | 2,450,045 |
Net investment income (loss) | | (443,397) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 8,523,169 | |
Foreign currency transactions | (139,700) | |
Total net realized gain (loss) | | 8,383,469 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (10,008,872) | |
Assets and liabilities in foreign currencies | 4,561 | |
Total change in net unrealized appreciation (depreciation) | | (10,004,311) |
Net gain (loss) | | (1,620,842) |
Net increase (decrease) in net assets resulting from operations | | $ (2,064,239) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (443,397) | $ 2,621,540 |
Net realized gain (loss) | 8,383,469 | 28,149,471 |
Change in net unrealized appreciation (depreciation) | (10,004,311) | (972,592) |
Net increase (decrease) in net assets resulting from operations | (2,064,239) | 29,798,419 |
Distributions to shareholders from net investment income | (2,011,363) | (3,137,656) |
Distributions to shareholders from net realized gain | (13,483,906) | (1,067,553) |
Total distributions | (15,495,269) | (4,205,209) |
Share transactions - net increase (decrease) | (7,345,617) | (47,287,205) |
Redemption fees | 22,495 | 37,169 |
Total increase (decrease) in net assets | (24,882,630) | (21,656,826) |
| | |
Net Assets | | |
Beginning of period | 311,051,641 | 332,708,467 |
End of period (including accumulated net investment loss of $464,748 and undistributed net investment income of $1,990,012, respectively) | $ 286,169,011 | $ 311,051,641 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 31.34 | $ 28.87 | $ 28.70 | $ 32.97 | $ 25.96 | $ 15.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .30 | .34 | .35 | .25 | .19 |
Net realized and unrealized gain (loss) | (.10) | 2.59 | 1.37 | (2.62) | 7.09 | 10.07 |
Total from investment operations | (.12) | 2.89 | 1.71 | (2.27) | 7.34 | 10.26 |
Distributions from net investment income | (.26) | (.33) | (.31) | (.20) | (.12) | (.05) |
Distributions from net realized gain | (1.33) | (.09) | (1.23) | (1.81) | (.22) | - |
Total distributions | (1.59) | (.42) | (1.54) | (2.01) | (.34) | (.05) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 29.63 | $ 31.34 | $ 28.87 | $ 28.70 | $ 32.97 | $ 25.96 |
Total Return B,C,D | (.43)% | 10.10% | 6.36% | (7.44)% | 28.53% | 65.43% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.47% A | 1.41% | 1.42% | 1.39% | 1.44% | 1.54% |
Expenses net of fee waivers, if any | 1.47% A | 1.41% | 1.42% | 1.39% | 1.44% | 1.50% |
Expenses net of all reductions | 1.47% A | 1.38% | 1.38% | 1.35% | 1.40% | 1.41% |
Net investment income (loss) | (.13)% A | .99% | 1.24% | 1.12% | .86% | .94% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 142,085 | $ 155,104 | $ 160,427 | $ 179,346 | $ 189,255 | $ 131,564 |
Portfolio turnover rate G | 113% A | 95% | 95% | 119% | 138% | 91% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 30.53 | $ 28.13 | $ 27.98 | $ 32.20 | $ 25.40 | $ 15.43 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | .20 | .25 | .25 | .15 | .14 |
Net realized and unrealized gain (loss) | (.10) | 2.54 | 1.33 | (2.55) | 6.94 | 9.86 |
Total from investment operations | (.16) | 2.74 | 1.58 | (2.30) | 7.09 | 10.00 |
Distributions from net investment income | (.17) | (.25) | (.20) | (.12) | (.08) | (.04) |
Distributions from net realized gain | (1.33) | (.09) | (1.23) | (1.81) | (.22) | - |
Total distributions | (1.50) | (.34) | (1.43) | (1.93) | (.30) | (.04) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 28.87 | $ 30.53 | $ 28.13 | $ 27.98 | $ 32.20 | $ 25.40 |
Total Return B,C,D | (.58)% | 9.80% | 6.04% | (7.70)% | 28.13% | 65.06% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.77% A | 1.70% | 1.70% | 1.70% | 1.74% | 1.84% |
Expenses net of fee waivers, if any | 1.77% A | 1.70% | 1.70% | 1.69% | 1.74% | 1.75% |
Expenses net of all reductions | 1.77% A | 1.67% | 1.67% | 1.65% | 1.70% | 1.66% |
Net investment income (loss) | (.43)% A | .70% | .95% | .82% | .55% | .69% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 42,425 | $ 47,620 | $ 49,359 | $ 55,452 | $ 61,620 | $ 45,259 |
Portfolio turnover rate G | 113% A | 95% | 95% | 119% | 138% | 91% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 29.06 | $ 26.77 | $ 26.62 | $ 30.72 | $ 24.29 | $ 14.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.13) | .06 | .12 | .10 | .02 | .04 |
Net realized and unrealized gain (loss) | (.10) | 2.41 | 1.26 | (2.44) | 6.61 | 9.45 |
Total from investment operations | (.23) | 2.47 | 1.38 | (2.34) | 6.63 | 9.49 |
Distributions from net investment income | - | (.09) | - | - | - | (.03) |
Distributions from net realized gain | (1.33) | (.09) | (1.23) | (1.77) | (.21) | - |
Total distributions | (1.33) | (.18) | (1.23) | (1.77) | (.21) | (.03) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 27.50 | $ 29.06 | $ 26.77 | $ 26.62 | $ 30.72 | $ 24.29 |
Total Return B,C,D | (.84)% | 9.27% | 5.51% | (8.16)% | 27.48% | 64.23% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.27% A | 2.20% | 2.19% | 2.19% | 2.24% | 2.32% |
Expenses net of fee waivers, if any | 2.27% A | 2.20% | 2.19% | 2.18% | 2.24% | 2.25% |
Expenses net of all reductions | 2.27% A | 2.17% | 2.16% | 2.15% | 2.20% | 2.16% |
Net investment income (loss) | (.92)% A | .20% | .46% | .32% | .06% | .19% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,442 | $ 10,194 | $ 15,823 | $ 20,831 | $ 29,611 | $ 25,750 |
Portfolio turnover rate G | 113% A | 95% | 95% | 119% | 138% | 91% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 28.78 | $ 26.53 | $ 26.44 | $ 30.58 | $ 24.19 | $ 14.76 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) | .07 | .13 | .11 | .03 | .04 |
Net realized and unrealized gain (loss) | (.11) | 2.39 | 1.25 | (2.41) | 6.59 | 9.41 |
Total from investment operations | (.23) | 2.46 | 1.38 | (2.30) | 6.62 | 9.45 |
Distributions from net investment income | (.03) | (.12) | (.06) | (.04) | (.02) | (.03) |
Distributions from net realized gain | (1.33) | (.09) | (1.23) | (1.81) | (.22) | - |
Total distributions | (1.36) | (.21) | (1.29) | (1.85) | (.24) | (.03) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 27.19 | $ 28.78 | $ 26.53 | $ 26.44 | $ 30.58 | $ 24.19 |
Total Return B,C,D | (.84)% | 9.33% | 5.57% | (8.10)% | 27.58% | 64.21% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.22% A | 2.16% | 2.16% | 2.13% | 2.17% | 2.28% |
Expenses net of fee waivers, if any | 2.22% A | 2.16% | 2.16% | 2.13% | 2.17% | 2.25% |
Expenses net of all reductions | 2.22% A | 2.12% | 2.13% | 2.10% | 2.13% | 2.16% |
Net investment income (loss) | (.87)% A | .24% | .49% | .37% | .12% | .19% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 54,071 | $ 61,824 | $ 67,074 | $ 78,939 | $ 87,089 | $ 59,491 |
Portfolio turnover rate G | 113% A | 95% | 95% | 119% | 138% | 91% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 32.24 | $ 29.67 | $ 29.49 | $ 33.80 | $ 26.58 | $ 16.07 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .03 | .40 | .44 | .46 | .34 | .26 |
Net realized and unrealized gain (loss) | (.12) | 2.68 | 1.39 | (2.69) | 7.26 | 10.29 |
Total from investment operations | (.09) | 3.08 | 1.83 | (2.23) | 7.60 | 10.55 |
Distributions from net investment income | (.35) | (.41) | (.42) | (.29) | (.17) | (.05) |
Distributions from net realized gain | (1.33) | (.09) | (1.23) | (1.81) | (.22) | - |
Total distributions | (1.68) | (.51) J | (1.65) | (2.09) I | (.39) | (.05) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 30.47 | $ 32.24 | $ 29.67 | $ 29.49 | $ 33.80 | $ 26.58 |
Total Return B,C | (.30)% | 10.47% | 6.64% | (7.13)% | 28.87% | 65.94% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.17% A | 1.11% | 1.11% | 1.10% | 1.14% | 1.25% |
Expenses net of fee waivers, if any | 1.17% A | 1.11% | 1.11% | 1.10% | 1.14% | 1.25% |
Expenses net of all reductions | 1.17% A | 1.08% | 1.08% | 1.06% | 1.10% | 1.16% |
Net investment income (loss) | .17% A | 1.29% | 1.54% | 1.41% | 1.16% | 1.18% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 40,147 | $ 36,310 | $ 40,026 | $ 49,888 | $ 45,042 | $ 23,888 |
Portfolio turnover rate F | 113% A | 95% | 95% | 119% | 138% | 91% |
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.
I 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.
J Total distributions of $.51 per share is comprised of distributions from net investment income of $.413 and distributions from net realized gain of $.092 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® 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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014. Including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. 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.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC) 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 | $ 43,180,261 |
Gross unrealized depreciation | (9,182,298) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 33,997,963 |
| |
Tax cost | $ 250,621,932 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $166,273,549 and $186,529,223, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 184,464 | $ 3,300 |
Class T | .25% | .25% | 111,531 | 2,295 |
Class B | .75% | .25% | 43,669 | 32,900 |
Class C | .75% | .25% | 284,856 | 21,773 |
| | | $ 624,520 | $ 60,268 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 15,513 |
Class T | 3,860 |
Class B* | 7,209 |
Class C* | 997 |
| $ 27,579 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 192,350 | .26 |
Class T | 69,076 | .31 |
Class B | 13,180 | .30 |
Class C | 72,298 | .25 |
Institutional Class | 42,369 | .21 |
| $ 389,273 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $297 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 or other affiliated entities of 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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Fund's Statement of Assets and Liabilities. 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 | $ 5,588,000 | .31% | $ 98 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or
Semiannual Report
6. Committed Line of Credit - continued
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 $281 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $3,492. During the period, there were no securities loaned to FCM.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 1,258,600 | $ 1,813,789 |
Class T | 253,592 | 420,491 |
Class B | - | 51,393 |
Class C | 67,366 | 298,953 |
Institutional Class | 431,805 | 553,030 |
Total | $ 2,011,363 | $ 3,137,656 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Distributions to Shareholders - continued
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net realized gain | | |
Class A | $ 6,564,461 | $ 507,200 |
Class T | 2,044,109 | 157,899 |
Class B | 453,142 | 51,958 |
Class C | 2,799,874 | 227,303 |
Institutional Class | 1,622,320 | 123,193 |
Total | $ 13,483,906 | $ 1,067,553 |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 289,152 | 824,496 | $ 8,607,444 | $ 24,773,595 |
Reinvestment of distributions | 228,279 | 67,510 | 6,811,859 | 1,994,909 |
Shares redeemed | (670,659) | (1,500,614) | (19,756,651) | (44,694,536) |
Net increase (decrease) | (153,228) | (608,608) | $ (4,337,348) | $ (17,926,032) |
Class T | | | | |
Shares sold | 55,334 | 210,810 | $ 1,603,294 | $ 6,182,895 |
Reinvestment of distributions | 77,360 | 19,545 | 2,251,960 | 564,060 |
Shares redeemed | (222,758) | (425,275) | (6,404,619) | (12,356,062) |
Net increase (decrease) | (90,064) | (194,920) | $ (2,549,365) | $ (5,609,107) |
Class B | | | | |
Shares sold | 3,282 | 10,130 | $ 91,978 | $ 286,596 |
Reinvestment of distributions | 13,707 | 3,105 | 380,925 | 85,708 |
Shares redeemed | (97,160) | (253,486) | (2,663,559) | (7,070,284) |
Net increase (decrease) | (80,171) | (240,251) | $ (2,190,656) | $ (6,697,980) |
Class C | | | | |
Shares sold | 89,586 | 303,601 | $ 2,427,799 | $ 8,446,000 |
Reinvestment of distributions | 89,602 | 15,990 | 2,461,356 | 436,858 |
Shares redeemed | (339,223) | (699,221) | (9,189,452) | (19,141,307) |
Net increase (decrease) | (160,035) | (379,630) | $ (4,300,297) | $ (10,258,449) |
Semiannual Report
9. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Institutional Class | | | | |
Shares sold | 445,192 | 392,380 | $ 13,738,694 | $ 12,135,351 |
Reinvestment of distributions | 52,027 | 17,860 | 1,594,630 | 541,525 |
Shares redeemed | (305,866) | (632,861) | (9,301,275) | (19,472,513) |
Net increase (decrease) | 191,353 | (222,621) | $ 6,032,049 | $ (6,795,637) |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
AEA-USAN-0614
1.784873.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets
Fund - Institutional Class
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.55% | | | |
Actual | | $ 1,000.00 | $ 985.50 | $ 7.63 |
HypotheticalA | | $ 1,000.00 | $ 1,017.11 | $ 7.75 |
Class T | 1.81% | | | |
Actual | | $ 1,000.00 | $ 984.60 | $ 8.91 |
HypotheticalA | | $ 1,000.00 | $ 1,015.82 | $ 9.05 |
Class B | 2.30% | | | |
Actual | | $ 1,000.00 | $ 982.40 | $ 11.31 |
HypotheticalA | | $ 1,000.00 | $ 1,013.39 | $ 11.48 |
Class C | 2.30% | | | |
Actual | | $ 1,000.00 | $ 982.30 | $ 11.30 |
HypotheticalA | | $ 1,000.00 | $ 1,013.39 | $ 11.48 |
Institutional Class | 1.21% | | | |
Actual | | $ 1,000.00 | $ 987.40 | $ 5.96 |
HypotheticalA | | $ 1,000.00 | $ 1,018.79 | $ 6.06 |
Class Z | 1.04% | | | |
Actual | | $ 1,000.00 | $ 988.30 | $ 5.13 |
HypotheticalA | | $ 1,000.00 | $ 1,019.64 | $ 5.21 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 4.7 | 4.7 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.0 | 2.6 |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 2.1 | 1.7 |
Hyundai Motor Co. (Korea (South), Automobiles) | 1.5 | 1.4 |
Itau Unibanco Holding SA sponsored ADR (Brazil, Banks) | 1.5 | 1.4 |
| 12.8 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 20.9 | 26.7 |
Consumer Discretionary | 21.2 | 20.6 |
Information Technology | 18.2 | 14.6 |
Industrials | 15.0 | 13.1 |
Consumer Staples | 10.3 | 11.3 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
India | 10.0 | 11.4 |
Brazil | 9.5 | 11.7 |
Korea (South) | 9.0 | 8.1 |
Cayman Islands | 8.7 | 7.7 |
South Africa | 7.6 | 6.8 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 99.5% | | | Stocks 99.8% | |
| Short-Term Investments and Net Other Assets (Liabilities) 0.5% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.2% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.3% |
| Shares | | Value |
Australia - 1.0% |
iProperty Group Ltd. (a) | 534,595 | | $ 1,291,261 |
SEEK Ltd. | 87,552 | | 1,359,935 |
Sydney Airport unit | 346,004 | | 1,356,467 |
TOTAL AUSTRALIA | | 4,007,663 |
Bailiwick of Jersey - 0.4% |
WPP PLC | 73,600 | | 1,586,934 |
Bermuda - 1.2% |
Brilliance China Automotive Holdings Ltd. | 1,296,000 | | 2,002,603 |
Credicorp Ltd. (United States) | 20,914 | | 3,121,415 |
TOTAL BERMUDA | | 5,124,018 |
Brazil - 6.7% |
BB Seguridade Participacoes SA | 218,000 | | 2,554,699 |
CCR SA | 307,900 | | 2,409,622 |
Cielo SA | 178,860 | | 3,168,503 |
Estacio Participacoes SA | 194,600 | | 2,084,112 |
Iguatemi Empresa de Shopping Centers SA | 184,900 | | 1,838,427 |
Kroton Educacional SA | 96,400 | | 2,064,834 |
Linx SA | 63,700 | | 1,390,130 |
Multiplan Empreendimentos Imobiliarios SA | 84,608 | | 1,869,933 |
Odontoprev SA | 417,100 | | 1,674,199 |
Qualicorp SA (a) | 190,900 | | 1,855,277 |
Souza Cruz SA | 218,300 | | 1,992,333 |
Ultrapar Participacoes SA | 103,600 | | 2,600,977 |
Weg SA | 177,615 | | 2,143,568 |
TOTAL BRAZIL | | 27,646,614 |
British Virgin Islands - 0.4% |
Mail.Ru Group Ltd. GDR (a)(e) | 63,800 | | 1,733,446 |
Canada - 0.3% |
Valeant Pharmaceuticals International (Canada) (a) | 10,900 | | 1,457,610 |
Cayman Islands - 8.7% |
51job, Inc. sponsored ADR (a)(d) | 24,345 | | 1,641,827 |
Airtac International Group | 148,000 | | 1,592,084 |
Autohome, Inc. ADR Class A (d) | 44,200 | | 1,415,726 |
Baidu.com, Inc. sponsored ADR (a) | 12,713 | | 1,955,895 |
Baoxin Auto Group Ltd. | 39,000 | | 29,428 |
Biostime International Holdings Ltd. | 243,000 | | 1,614,160 |
Bitauto Holdings Ltd. ADR (a) | 53,655 | | 1,922,459 |
Cimc Enric Holdings Ltd. | 1,044,000 | | 1,510,867 |
ENN Energy Holdings Ltd. | 326,000 | | 2,279,029 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Ginko International Co. Ltd. | 52,000 | | $ 873,979 |
Greatview Aseptic Pack Co. Ltd. | 2,706,000 | | 1,650,904 |
Haitian International Holdings Ltd. | 680,000 | | 1,370,008 |
Melco Crown Entertainment Ltd. sponsored ADR | 39,300 | | 1,343,274 |
MGM China Holdings Ltd. | 396,000 | | 1,379,088 |
Sands China Ltd. | 217,800 | | 1,590,037 |
Shenzhou International Group Holdings Ltd. | 488,000 | | 1,680,599 |
SouFun Holdings Ltd. ADR | 133,485 | | 1,571,118 |
Tencent Holdings Ltd. | 140,100 | | 8,731,685 |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 43,865 | | 1,491,410 |
TOTAL CAYMAN ISLANDS | | 35,643,577 |
Chile - 0.0% |
Quinenco SA | 2,951 | | 6,537 |
China - 1.7% |
China Pacific Insurance Group Co. Ltd. (H Shares) | 773,600 | | 2,424,687 |
PICC Property & Casualty Co. Ltd. (H Shares) | 1,328,500 | | 1,751,239 |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 414,000 | | 3,062,434 |
TOTAL CHINA | | 7,238,360 |
Colombia - 0.5% |
Grupo de Inversiones Suramerica SA | 117,735 | | 2,296,853 |
Denmark - 0.4% |
Novo Nordisk A/S Series B sponsored ADR | 34,201 | | 1,552,383 |
Finland - 0.4% |
Kone Oyj (B Shares) (d) | 38,300 | | 1,637,636 |
France - 1.5% |
Bureau Veritas SA | 51,700 | | 1,577,972 |
LVMH Moet Hennessy - Louis Vuitton SA | 8,015 | | 1,576,205 |
Pernod Ricard SA | 13,700 | | 1,644,269 |
Safran SA | 23,700 | | 1,592,881 |
TOTAL FRANCE | | 6,391,327 |
Greece - 1.2% |
Folli Follie SA (a) | 47,100 | | 1,633,605 |
Greek Organization of Football Prognostics SA | 115,500 | | 1,842,748 |
Jumbo SA | 93,931 | | 1,518,172 |
TOTAL GREECE | | 4,994,525 |
Common Stocks - continued |
| Shares | | Value |
Hong Kong - 0.8% |
AIA Group Ltd. | 348,600 | | $ 1,690,629 |
Galaxy Entertainment Group Ltd. | 193,000 | | 1,514,785 |
TOTAL HONG KONG | | 3,205,414 |
India - 10.0% |
Axis Bank Ltd. | 70,512 | | 1,781,683 |
Bajaj Auto Ltd. | 60,192 | | 1,908,251 |
Grasim Industries Ltd. | 29,902 | | 1,320,937 |
Havells India Ltd. | 95,718 | | 1,478,102 |
HCL Technologies Ltd. | 86,885 | | 2,020,906 |
HDFC Bank Ltd. | 278,840 | | 3,489,316 |
Housing Development Finance Corp. Ltd. | 281,228 | | 4,186,831 |
ITC Ltd. | 537,954 | | 3,039,175 |
Larsen & Toubro Ltd. | 107,466 | | 2,305,757 |
Lupin Ltd. | 98,895 | | 1,687,493 |
Mahindra & Mahindra Ltd. | 130,037 | | 2,315,937 |
Mundra Port and SEZ Ltd. | 571,376 | | 1,782,856 |
Sun Pharmaceutical Industries Ltd. | 242,959 | | 2,549,025 |
Tata Consultancy Services Ltd. | 99,288 | | 3,603,768 |
Tata Motors Ltd. | 344,277 | | 2,381,454 |
Titan Co. Ltd. | 366,235 | | 1,667,000 |
Yes Bank Ltd. | 252,599 | | 1,845,859 |
Zee Entertainment Enterprises Ltd. | 366,050 | | 1,593,712 |
TOTAL INDIA | | 40,958,062 |
Indonesia - 5.9% |
PT ACE Hardware Indonesia Tbk | 23,655,800 | | 1,524,333 |
PT Astra International Tbk | 4,237,900 | | 2,721,654 |
PT Bank Central Asia Tbk | 3,148,800 | | 2,995,874 |
PT Bank Rakyat Indonesia Tbk | 3,411,900 | | 2,921,577 |
PT Global Mediacom Tbk | 9,154,500 | | 1,734,062 |
PT Indocement Tunggal Prakarsa Tbk | 954,600 | | 1,812,349 |
PT Jasa Marga Tbk | 3,417,300 | | 1,743,897 |
PT Kalbe Farma Tbk | 14,344,100 | | 1,916,848 |
PT Media Nusantara Citra Tbk | 6,597,900 | | 1,549,392 |
PT Semen Gresik (Persero) Tbk | 1,502,100 | | 1,929,350 |
PT Surya Citra Media Tbk | 6,596,400 | | 1,797,229 |
PT Tower Bersama Infrastructure Tbk | 2,578,700 | | 1,449,773 |
TOTAL INDONESIA | | 24,096,338 |
Common Stocks - continued |
| Shares | | Value |
Italy - 0.7% |
Pirelli & C. S.p.A. | 77,600 | | $ 1,300,513 |
Prada SpA | 212,300 | | 1,695,015 |
TOTAL ITALY | | 2,995,528 |
Japan - 0.8% |
Japan Tobacco, Inc. | 47,600 | | 1,562,533 |
SoftBank Corp. | 22,800 | | 1,692,688 |
TOTAL JAPAN | | 3,255,221 |
Kenya - 1.2% |
East African Breweries Ltd. | 459,462 | | 1,547,206 |
Kenya Commercial Bank Ltd. | 2,512,400 | | 1,414,867 |
Safaricom Ltd. | 12,229,800 | | 1,841,287 |
TOTAL KENYA | | 4,803,360 |
Korea (South) - 9.0% |
Grand Korea Leisure Co. Ltd. | 36,040 | | 1,501,812 |
Hotel Shilla Co. | 15,834 | | 1,331,889 |
Hyundai Mobis | 12,617 | | 3,602,764 |
Hyundai Motor Co. | 27,375 | | 6,094,521 |
KEPCO Plant Service & Engineering Co. Ltd. | 22,717 | | 1,477,671 |
Naver Corp. | 5,312 | | 3,794,653 |
Samsung Electronics Co. Ltd. | 14,897 | | 19,365,665 |
TOTAL KOREA (SOUTH) | | 37,168,975 |
Luxembourg - 0.5% |
Brait SA | 352,222 | | 1,897,288 |
Malaysia - 0.9% |
Astro Malaysia Holdings Bhd | 1,418,700 | | 1,448,052 |
Public Bank Bhd | 363,100 | | 2,241,482 |
TOTAL MALAYSIA | | 3,689,534 |
Mexico - 5.7% |
Alfa SA de CV Series A | 828,000 | | 2,180,321 |
Banregio Grupo Financiero S.A.B. de CV | 263,666 | | 1,523,822 |
El Puerto de Liverpool S.A.B. de CV Class C | 124,534 | | 1,282,488 |
Fomento Economico Mexicano S.A.B. de CV unit | 383,000 | | 3,495,165 |
Gruma S.A.B. de CV Series B (a) | 202,000 | | 1,784,576 |
Grupo Aeroportuario del Pacifico SA de CV Series B | 307,921 | | 1,851,845 |
Grupo Aeroportuario del Sureste SA de CV Series B | 151,700 | | 1,856,195 |
Grupo Aeroportuario Norte S.A.B. de CV | 327,700 | | 1,204,069 |
Grupo Financiero Banorte S.A.B. de CV Series O | 500,300 | | 3,316,659 |
Common Stocks - continued |
| Shares | | Value |
Mexico - continued |
Grupo Televisa SA de CV | 541,300 | | $ 3,550,810 |
Megacable Holdings S.A.B. de CV unit | 370,284 | | 1,468,654 |
TOTAL MEXICO | | 23,514,604 |
Netherlands - 0.4% |
Yandex NV (a) | 57,093 | | 1,512,965 |
Nigeria - 1.2% |
Dangote Cement PLC | 1,017,266 | | 1,431,138 |
Guaranty Trust Bank PLC GDR (Reg. S) | 223,954 | | 1,881,214 |
Nigerian Breweries PLC | 1,625,358 | | 1,517,608 |
TOTAL NIGERIA | | 4,829,960 |
Panama - 0.4% |
Copa Holdings SA Class A | 11,752 | | 1,589,811 |
Philippines - 4.2% |
Alliance Global Group, Inc. | 2,904,700 | | 2,029,869 |
Ayala Corp. | 126,530 | | 1,771,278 |
DMCI Holdings, Inc. | 1,193,040 | | 1,921,711 |
GT Capital Holdings, Inc. | 77,800 | | 1,513,238 |
International Container Terminal Services, Inc. | 361,940 | | 877,750 |
LT Group, Inc. | 4,229,300 | | 1,736,314 |
Metropolitan Bank & Trust Co. | 927,273 | | 1,761,975 |
Security Bank Corp. | 667,910 | | 1,799,574 |
SM Investments Corp. | 120,796 | | 1,964,713 |
SM Prime Holdings, Inc. | 5,381,200 | | 1,970,189 |
TOTAL PHILIPPINES | | 17,346,611 |
Russia - 2.4% |
Magnit OJSC GDR (Reg. S) | 64,866 | | 3,051,945 |
NOVATEK OAO GDR (Reg. S) | 28,586 | | 2,952,934 |
Sberbank (Savings Bank of the Russian Federation) | 1,849,800 | | 3,764,505 |
TOTAL RUSSIA | | 9,769,384 |
South Africa - 7.6% |
Aspen Pharmacare Holdings Ltd. | 105,793 | | 2,815,348 |
Bidvest Group Ltd. | 94,026 | | 2,578,442 |
Clicks Group Ltd. | 275,260 | | 1,678,431 |
Discovery Holdings Ltd. | 240,489 | | 2,084,749 |
Life Healthcare Group Holdings Ltd. | 567,793 | | 2,254,333 |
Mr Price Group Ltd. | 139,500 | | 2,099,030 |
MTN Group Ltd. | 228,400 | | 4,576,684 |
Nampak Ltd. | 551,543 | | 2,055,082 |
Common Stocks - continued |
| Shares | | Value |
South Africa - continued |
Naspers Ltd. Class N | 62,500 | | $ 5,893,256 |
Remgro Ltd. | 126,100 | | 2,536,863 |
Shoprite Holdings Ltd. | 151,815 | | 2,535,277 |
TOTAL SOUTH AFRICA | | 31,107,495 |
Sweden - 0.7% |
Atlas Copco AB (A Shares) | 54,300 | | 1,571,662 |
Investment AB Kinnevik (B Shares) | 36,500 | | 1,282,681 |
TOTAL SWEDEN | | 2,854,343 |
Switzerland - 1.4% |
Compagnie Financiere Richemont SA Series A | 15,769 | | 1,600,013 |
Dufry AG (a) | 7,560 | | 1,248,976 |
SGS SA (Reg.) | 600 | | 1,496,421 |
Swatch Group AG (Bearer) | 2,390 | | 1,532,956 |
TOTAL SWITZERLAND | | 5,878,366 |
Taiwan - 5.4% |
Delta Electronics, Inc. | 390,000 | | 2,391,805 |
ECLAT Textile Co. Ltd. | 127,000 | | 1,389,336 |
Giant Manufacturing Co. Ltd. | 211,000 | | 1,650,760 |
HIWIN Technologies Corp. | 151,000 | | 1,436,641 |
Merida Industry Co. Ltd. | 249,000 | | 1,667,402 |
St.Shine Optical Co. Ltd. | 71,000 | | 1,504,003 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,115,000 | | 12,253,136 |
TOTAL TAIWAN | | 22,293,083 |
Thailand - 2.5% |
Airports of Thailand PCL (For. Reg.) | 324,600 | | 1,956,026 |
Bangkok Dusit Medical Service PCL (For. Reg.) | 3,490,000 | | 1,596,168 |
Central Pattana PCL (For. Reg.) | 1,248,700 | | 1,746,096 |
Kasikornbank PCL (For. Reg.) | 526,200 | | 3,195,250 |
Minor International PCL (For. Reg.) | 2,211,000 | | 1,680,797 |
TOTAL THAILAND | | 10,174,337 |
Togo - 0.1% |
Ecobank Transnational, Inc. | 4,322,471 | | 363,233 |
Turkey - 2.0% |
Anadolu Hayat Sigorta A/S | 304,037 | | 636,425 |
Coca-Cola Icecek Sanayi A/S | 75,050 | | 1,757,582 |
Enka Insaat ve Sanayi A/S | 634,888 | | 1,924,313 |
Common Stocks - continued |
| Shares | | Value |
Turkey - continued |
TAV Havalimanlari Holding A/S | 245,000 | | $ 1,960,882 |
Tofas Turk Otomobil Fabrikasi A/S | 304,538 | | 1,860,501 |
TOTAL TURKEY | | 8,139,703 |
United Arab Emirates - 0.4% |
First Gulf Bank PJSC | 319,671 | | 1,510,037 |
United Kingdom - 4.1% |
Aberdeen Asset Management PLC | 201,900 | | 1,488,999 |
Alabama Noor Hospitals Group PLC | 84,104 | | 1,417,172 |
British American Tobacco PLC (United Kingdom) | 29,600 | | 1,709,252 |
Burberry Group PLC | 60,668 | | 1,521,113 |
Diageo PLC | 49,239 | | 1,508,674 |
Intertek Group PLC | 31,100 | | 1,525,919 |
Johnson Matthey PLC | 25,882 | | 1,430,274 |
Meggitt PLC | 169,600 | | 1,365,043 |
Mondi PLC | 95,988 | | 1,592,300 |
Prudential PLC | 70,417 | | 1,618,826 |
Rolls-Royce Group PLC | 93,265 | | 1,653,421 |
TOTAL UNITED KINGDOM | | 16,830,993 |
United States of America - 3.6% |
Colgate-Palmolive Co. | 26,272 | | 1,768,106 |
FMC Corp. | 21,537 | | 1,658,349 |
Google, Inc. Class C (a) | 2,600 | | 1,369,316 |
Kansas City Southern | 16,620 | | 1,676,626 |
MasterCard, Inc. Class A | 22,900 | | 1,684,295 |
Mead Johnson Nutrition Co. Class A | 20,030 | | 1,767,848 |
Philip Morris International, Inc. | 19,053 | | 1,627,698 |
Visa, Inc. Class A | 7,900 | | 1,600,619 |
Yahoo!, Inc. (a) | 48,800 | | 1,754,360 |
TOTAL UNITED STATES OF AMERICA | | 14,907,217 |
TOTAL COMMON STOCKS (Cost $353,915,599) | 396,009,345
|
Nonconvertible Preferred Stocks - 3.2% |
| Shares | | Value |
Brazil - 2.8% |
Ambev SA sponsored ADR | 729,180 | | $ 5,286,555 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR | 2,939 | | 139,779 |
Itau Unibanco Holding SA sponsored ADR | 372,255 | | 6,090,092 |
TOTAL BRAZIL | | 11,516,426 |
Colombia - 0.4% |
Grupo Aval Acciones y Valores SA | 2,232,243 | | 1,510,005 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC (C Shares) | 13,033,510 | | 22,006 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $13,632,771) | 13,048,437
|
Money Market Funds - 1.9% |
| | | |
Fidelity Cash Central Fund, 0.11% (b) | 3,492,667 | | 3,492,667 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 4,184,995 | | 4,184,995 |
TOTAL MONEY MARKET FUNDS (Cost $7,677,662) | 7,677,662
|
TOTAL INVESTMENT PORTFOLIO - 101.4% (Cost $375,226,032) | 416,735,444 |
NET OTHER ASSETS (LIABILITIES) - (1.4)% | (5,645,150) |
NET ASSETS - 100% | $ 411,090,294 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,733,446 or 0.4% 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 | $ 1,219 |
Fidelity Securities Lending Cash Central Fund | 20,057 |
Total | $ 21,276 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 86,460,106 | $ 80,824,718 | $ 5,635,388 | $ - |
Consumer Staples | 42,764,486 | 39,546,560 | 3,217,926 | - |
Energy | 5,553,911 | 5,553,911 | - | - |
Financials | 86,750,803 | 79,860,978 | 6,889,825 | - |
Health Care | 24,645,248 | 22,957,755 | 1,687,493 | - |
Industrials | 61,631,373 | 61,631,373 | - | - |
Information Technology | 74,531,711 | 62,278,575 | 12,253,136 | - |
Materials | 14,880,683 | 13,559,746 | 1,320,937 | - |
Telecommunication Services | 9,560,432 | 9,560,432 | - | - |
Utilities | 2,279,029 | 2,279,029 | - | - |
Money Market Funds | 7,677,662 | 7,677,662 | - | - |
Total Investments in Securities: | $ 416,735,444 | $ 385,730,739 | $ 31,004,705 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 6,132,566 |
Level 2 to Level 1 | $ 1,545,043 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $4,032,182) - See accompanying schedule: Unaffiliated issuers (cost $367,548,370) | $ 409,057,782 | |
Fidelity Central Funds (cost $7,677,662) | 7,677,662 | |
Total Investments (cost $375,226,032) | | $ 416,735,444 |
Foreign currency held at value (cost $30) | | 278 |
Receivable for investments sold | | 5,155,834 |
Receivable for fund shares sold | | 313,217 |
Dividends receivable | | 912,018 |
Distributions receivable from Fidelity Central Funds | | 2,829 |
Prepaid expenses | | 247 |
Other receivables | | 28,332 |
Total assets | | 423,148,199 |
| | |
Liabilities | | |
Payable for investments purchased | $ 6,247,494 | |
Payable for fund shares redeemed | 439,236 | |
Accrued management fee | 276,196 | |
Distribution and service plan fees payable | 105,541 | |
Other affiliated payables | 105,887 | |
Other payables and accrued expenses | 698,556 | |
Collateral on securities loaned, at value | 4,184,995 | |
Total liabilities | | 12,057,905 |
| | |
Net Assets | | $ 411,090,294 |
Net Assets consist of: | | |
Paid in capital | | $ 427,285,429 |
Undistributed net investment income | | 122,583 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (57,251,298) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 40,933,580 |
Net Assets | | $ 411,090,294 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($135,208,177 ÷ 6,081,368 shares) | | $ 22.23 |
| | |
Maximum offering price per share (100/94.25 of $22.23) | | $ 23.59 |
Class T: Net Asset Value and redemption price per share ($50,908,125 ÷ 2,294,687 shares) | | $ 22.19 |
| | |
Maximum offering price per share (100/96.50 of $22.19) | | $ 22.99 |
Class B: Net Asset Value and offering price per share ($8,785,907 ÷ 404,573 shares)A | | $ 21.72 |
| | |
Class C: Net Asset Value and offering price per share ($57,425,146 ÷ 2,650,280 shares)A | | $ 21.67 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($158,058,159 ÷ 7,085,176 shares) | | $ 22.31 |
| | |
Class Z: Net Asset Value, offering price and redemption price per share ($704,780 ÷ 31,615 shares) | | $ 22.29 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,640,420 |
Interest | | 2 |
Income from Fidelity Central Funds | | 21,276 |
Income before foreign taxes withheld | | 3,661,698 |
Less foreign taxes withheld | | (326,935) |
Total income | | 3,334,763 |
| | |
Expenses | | |
Management fee | $ 1,624,327 | |
Transfer agent fees | 544,135 | |
Distribution and service plan fees | 644,396 | |
Accounting and security lending fees | 105,664 | |
Custodian fees and expenses | 154,458 | |
Independent trustees' compensation | 804 | |
Registration fees | 64,934 | |
Audit | 54,726 | |
Legal | 960 | |
Miscellaneous | 21,269 | |
Total expenses | | 3,215,673 |
Net investment income (loss) | | 119,090 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (4,328,391) | |
Foreign currency transactions | (179,979) | |
Total net realized gain (loss) | | (4,508,370) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $341,639) | (2,480,428) | |
Assets and liabilities in foreign currencies | 24,923 | |
Total change in net unrealized appreciation (depreciation) | | (2,455,505) |
Net gain (loss) | | (6,963,875) |
Net increase (decrease) in net assets resulting from operations | | $ (6,844,785) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 119,090 | $ 1,405,290 |
Net realized gain (loss) | (4,508,370) | 41,473,017 |
Change in net unrealized appreciation (depreciation) | (2,455,505) | 2,826,987 |
Net increase (decrease) in net assets resulting from operations | (6,844,785) | 45,705,294 |
Distributions to shareholders from net investment income | (1,113,220) | (3,939,467) |
Distributions to shareholders from net realized gain | (185,954) | - |
Total distributions | (1,299,174) | (3,939,467) |
Share transactions - net increase (decrease) | (7,559,605) | (61,785,803) |
Redemption fees | 13,497 | 43,406 |
Total increase (decrease) in net assets | (15,690,067) | (19,976,570) |
| | |
Net Assets | | |
Beginning of period | 426,780,361 | 446,756,931 |
End of period (including undistributed net investment income of $122,583 and undistributed net investment income of $1,116,713, respectively) | $ 411,090,294 | $ 426,780,361 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.62 | $ 20.51 | $ 20.50 | $ 23.71 | $ 19.20 | $ 12.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | .08 | .22 | .21 | .12 | .10 |
Net realized and unrealized gain (loss) | (.34) | 2.23 | (.06) | (3.19) | 4.59 | 6.64 |
Total from investment operations | (.33) | 2.31 | .16 | (2.98) | 4.71 | 6.74 |
Distributions from net investment income | (.05) | (.20) | (.15) | (.11) | (.07) | (.14) |
Distributions from net realized gain | (.01) | - | - | (.13) | (.13) | - |
Total distributions | (.06) | (.20) | (.15) | (.24) | (.20) | (.14) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | .01 |
Net asset value, end of period | $ 22.23 | $ 22.62 | $ 20.51 | $ 20.50 | $ 23.71 | $ 19.20 |
Total Return B,C,D | (1.45)% | 11.34% | .80% | (12.69)% | 24.69% | 54.54% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.55% A | 1.56% | 1.54% | 1.54% | 1.56% | 1.60% |
Expenses net of fee waivers, if any | 1.55% A | 1.55% | 1.54% | 1.54% | 1.56% | 1.60% |
Expenses net of all reductions | 1.55% A | 1.50% | 1.48% | 1.47% | 1.50% | 1.53% |
Net investment income (loss) | .09% A | .38% | 1.07% | .92% | .59% | .70% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 135,208 | $ 146,378 | $ 160,464 | $ 202,477 | $ 286,970 | $ 216,187 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.55 | $ 20.44 | $ 20.43 | $ 23.61 | $ 19.14 | $ 12.49 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .03 | .16 | .15 | .07 | .07 |
Net realized and unrealized gain (loss) | (.33) | 2.22 | (.06) | (3.18) | 4.57 | 6.64 |
Total from investment operations | (.35) | 2.25 | .10 | (3.03) | 4.64 | 6.71 |
Distributions from net investment income | - I | (.14) | (.09) | (.04) | (.04) | (.07) |
Distributions from net realized gain | (.01) | - | - | (.13) | (.13) | - |
Total distributions | (.01) | (.14) | (.09) | (.16) J | (.17) | (.07) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | .01 |
Net asset value, end of period | $ 22.19 | $ 22.55 | $ 20.44 | $ 20.43 | $ 23.61 | $ 19.14 |
Total Return B,C,D | (1.54)% | 11.06% | .49% | (12.89)% | 24.38% | 54.17% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.81% A | 1.81% | 1.80% | 1.79% | 1.81% | 1.87% |
Expenses net of fee waivers, if any | 1.81% A | 1.81% | 1.80% | 1.79% | 1.81% | 1.85% |
Expenses net of all reductions | 1.81% A | 1.76% | 1.73% | 1.73% | 1.76% | 1.78% |
Net investment income (loss) | (.16)% A | .13% | .81% | .66% | .33% | .44% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 50,908 | $ 55,797 | $ 58,919 | $ 73,146 | $ 104,417 | $ 86,959 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.11 | $ 20.03 | $ 20.03 | $ 23.14 | $ 18.80 | $ 12.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.08) | .06 | .04 | (.03) | (.01) |
Net realized and unrealized gain (loss) | (.32) | 2.18 | (.06) | (3.13) | 4.49 | 6.55 |
Total from investment operations | (.39) | 2.10 | - | (3.09) | 4.46 | 6.54 |
Distributions from net investment income | - | (.02) | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.03) | (.12) | - |
Total distributions | - | (.02) | - | (.03) J | (.12) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | - I |
Net asset value, end of period | $ 21.72 | $ 22.11 | $ 20.03 | $ 20.03 | $ 23.14 | $ 18.80 |
Total Return B,C,D | (1.76)% | 10.50% | -% | (13.33)% | 23.77% | 53.34% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.30% A | 2.31% | 2.29% | 2.29% | 2.32% | 2.36% |
Expenses net of fee waivers, if any | 2.30% A | 2.31% | 2.29% | 2.29% | 2.32% | 2.35% |
Expenses net of all reductions | 2.30% A | 2.26% | 2.23% | 2.22% | 2.26% | 2.28% |
Net investment income (loss) | (.66)% A | (.37)% | .32% | .16% | (.17)% | (.05)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 8,786 | $ 11,391 | $ 15,994 | $ 21,304 | $ 31,159 | $ 27,580 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.06 | $ 20.00 | $ 20.00 | $ 23.13 | $ 18.80 | $ 12.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.08) | .06 | .04 | (.03) | (.01) |
Net realized and unrealized gain (loss) | (.32) | 2.18 | (.06) | (3.12) | 4.49 | 6.54 |
Total from investment operations | (.39) | 2.10 | - | (3.08) | 4.46 | 6.53 |
Distributions from net investment income | - | (.04) | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.05) | (.13) | - |
Total distributions | - | (.04) | - | (.06) | (.13) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | .01 |
Net asset value, end of period | $ 21.67 | $ 22.06 | $ 20.00 | $ 20.00 | $ 23.13 | $ 18.80 |
Total Return B,C,D | (1.77)% | 10.49% | -% | (13.33)% | 23.80% | 53.34% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.30% A | 2.31% | 2.29% | 2.28% | 2.30% | 2.34% |
Expenses net of fee waivers, if any | 2.30% A | 2.30% | 2.29% | 2.28% | 2.30% | 2.34% |
Expenses net of all reductions | 2.30% A | 2.25% | 2.23% | 2.22% | 2.24% | 2.28% |
Net investment income (loss) | (.66)% A | (.37)% | .32% | .17% | (.15)% | (.05)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 57,425 | $ 62,532 | $ 65,598 | $ 80,855 | $ 106,711 | $ 83,939 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.73 | $ 20.61 | $ 20.63 | $ 23.87 | $ 19.29 | $ 12.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .15 | .28 | .29 | .20 | .15 |
Net realized and unrealized gain (loss) | (.34) | 2.25 | (.06) | (3.21) | 4.62 | 6.65 |
Total from investment operations | (.29) | 2.40 | .22 | (2.92) | 4.82 | 6.80 |
Distributions from net investment income | (.12) | (.28) | (.24) | (.20) | (.11) | (.23) |
Distributions from net realized gain | (.01) | - | - | (.13) | (.13) | - |
Total distributions | (.13) | (.28) | (.24) | (.33) | (.24) | (.23) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | - H | .01 |
Net asset value, end of period | $ 22.31 | $ 22.73 | $ 20.61 | $ 20.63 | $ 23.87 | $ 19.29 |
Total Return B,C | (1.26)% | 11.73% | 1.08% | (12.41)% | 25.15% | 54.97% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.21% A | 1.23% | 1.22% | 1.21% | 1.22% | 1.30% |
Expenses net of fee waivers, if any | 1.21% A | 1.22% | 1.22% | 1.21% | 1.22% | 1.30% |
Expenses net of all reductions | 1.21% A | 1.18% | 1.16% | 1.14% | 1.17% | 1.23% |
Net investment income (loss) | .44% A | .71% | 1.39% | 1.25% | .93% | .99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 158,058 | $ 150,576 | $ 145,782 | $ 138,312 | $ 184,789 | $ 106,713 |
Portfolio turnover rate F | 100% A | 121% | 177% | 122% | 86% | 85% |
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
Financial Highlights - Class Z
| Six months ended April 30, 2014 | Year ended October 31, |
| (Unaudited) | 2013 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 22.73 | $ 21.33 |
Income from Investment Operations | | |
Net investment income (loss) D | .06 | .03 |
Net realized and unrealized gain (loss) | (.33) | 1.37 |
Total from investment operations | (.27) | 1.40 |
Distributions from net investment income | (.16) | - |
Distributions from net realized gain | (.01) | - |
Total distributions | (.17) | - |
Redemption fees added to paid in capital D,I | - | - |
Net asset value, end of period | $ 22.29 | $ 22.73 |
Total Return B,C | (1.17)% | 6.56% |
Ratios to Average Net Assets E,H | | |
Expenses before reductions | 1.04% A | 1.05% A |
Expenses net of fee waivers, if any | 1.04% A | 1.05% A |
Expenses net of all reductions | 1.04% A | 1.00% A |
Net investment income (loss) | .60% A | .62% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 705 | $ 107 |
Portfolio turnover rate F | 100% A | 121% |
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 For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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, 2014 (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, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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 as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 54,183,084 |
Gross unrealized depreciation | (14,121,981) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 40,061,103 |
| |
Tax cost | $ 376,674,341 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (51,004,288) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $203,119,094 and $213,770,576, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .80% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 171,654 | $ 4,140 |
Class T | .25% | .25% | 128,870 | 1,530 |
Class B | .75% | .25% | 49,655 | 37,453 |
Class C | .75% | .25% | 294,217 | 31,800 |
| | | $ 644,396 | $ 74,923 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
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 | $ 42,316 |
Class T | 5,481 |
Class B* | 6,588 |
Class C* | 2,973 |
| $ 57,358 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 207,582 | .30 |
Class T | 79,523 | .31 |
Class B | 15,005 | .30 |
Class C | 89,034 | .30 |
Institutional Class | 152,845 | .21 |
Class Z | 146 | .05 |
| $ 544,135 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $441 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $379 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $20,057. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 314,530 | $ 1,535,570 |
Class T | 2,453 | 390,398 |
Class B | - | 16,014 |
Class C | - | 114,064 |
Institutional Class | 791,098 | 1,883,421 |
Class Z | 5,139 | - |
Total | $ 1,113,220 | $ 3,939,467 |
From net realized gain | | |
Class A | $ 77,028 | $ - |
Class T | 29,431 | - |
Institutional Class | 79,110 | - |
Class Z | 385 | - |
Total | $ 185,954 | $ - |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013A | Six months ended April 30, 2014 | Year ended October 31, 2013A |
Class A | | | | |
Shares sold | 616,672 | 1,531,175 | $ 13,492,549 | $ 33,017,349 |
Reinvestment of distributions | 16,163 | 66,573 | 356,881 | 1,392,653 |
Shares redeemed | (1,023,807) | (2,949,139) | (22,219,541) | (63,054,707) |
Net increase (decrease) | (390,972) | (1,351,391) | $ (8,370,111) | $ (28,644,705) |
Class T | | | | |
Shares sold | 172,791 | 561,309 | $ 3,767,248 | $ 12,048,127 |
Reinvestment of distributions | 1,397 | 17,796 | 30,812 | 372,006 |
Shares redeemed | (354,184) | (986,849) | (7,664,029) | (20,912,996) |
Net increase (decrease) | (179,996) | (407,744) | $ (3,865,969) | $ (8,492,863) |
Class B | | | | |
Shares sold | 6,662 | 34,695 | $ 141,885 | $ 732,488 |
Reinvestment of distributions | - | 627 | - | 12,965 |
Shares redeemed | (117,224) | (318,597) | (2,496,551) | (6,698,614) |
Net increase (decrease) | (110,562) | (283,275) | $ (2,354,666) | $ (5,953,161) |
Semiannual Report
9. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013A | Six months ended April 30, 2014 | Year ended October 31, 2013A |
Class C | | | | |
Shares sold | 263,234 | 507,210 | $ 5,623,441 | $ 10,683,514 |
Reinvestment of distributions | - | 4,797 | - | 98,768 |
Shares redeemed | (447,291) | (957,148) | (9,390,914) | (19,925,235) |
Net increase (decrease) | (184,057) | (445,141) | $ (3,767,473) | $ (9,142,953) |
Institutional Class | | | | |
Shares sold | 819,963 | 1,298,034 | $ 18,062,614 | $ 27,937,972 |
Reinvestment of distributions | 36,756 | 84,781 | 813,036 | 1,776,730 |
Shares redeemed | (397,421) | (1,828,795) | (8,679,540) | (39,366,823) |
Net increase (decrease) | 459,298 | (445,980) | $ 10,196,110 | $ (9,652,121) |
Class Z | | | | |
Shares sold | 30,873 | 4,688 | $ 687,216 | $ 100,000 |
Reinvestment of distributions | 250 | - | 5,524 | - |
Shares redeemed | (4,196) | - | (90,236) | - |
Net increase (decrease) | 26,927 | 4,688 | $ 602,504 | $ 100,000 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
FAEMI-USAN-0614
1.800640.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.55% | | | |
Actual | | $ 1,000.00 | $ 985.50 | $ 7.63 |
HypotheticalA | | $ 1,000.00 | $ 1,017.11 | $ 7.75 |
Class T | 1.81% | | | |
Actual | | $ 1,000.00 | $ 984.60 | $ 8.91 |
HypotheticalA | | $ 1,000.00 | $ 1,015.82 | $ 9.05 |
Class B | 2.30% | | | |
Actual | | $ 1,000.00 | $ 982.40 | $ 11.31 |
HypotheticalA | | $ 1,000.00 | $ 1,013.39 | $ 11.48 |
Class C | 2.30% | | | |
Actual | | $ 1,000.00 | $ 982.30 | $ 11.30 |
HypotheticalA | | $ 1,000.00 | $ 1,013.39 | $ 11.48 |
Institutional Class | 1.21% | | | |
Actual | | $ 1,000.00 | $ 987.40 | $ 5.96 |
HypotheticalA | | $ 1,000.00 | $ 1,018.79 | $ 6.06 |
Class Z | 1.04% | | | |
Actual | | $ 1,000.00 | $ 988.30 | $ 5.13 |
HypotheticalA | | $ 1,000.00 | $ 1,019.64 | $ 5.21 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 4.7 | 4.7 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.0 | 2.6 |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 2.1 | 1.7 |
Hyundai Motor Co. (Korea (South), Automobiles) | 1.5 | 1.4 |
Itau Unibanco Holding SA sponsored ADR (Brazil, Banks) | 1.5 | 1.4 |
| 12.8 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 20.9 | 26.7 |
Consumer Discretionary | 21.2 | 20.6 |
Information Technology | 18.2 | 14.6 |
Industrials | 15.0 | 13.1 |
Consumer Staples | 10.3 | 11.3 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
India | 10.0 | 11.4 |
Brazil | 9.5 | 11.7 |
Korea (South) | 9.0 | 8.1 |
Cayman Islands | 8.7 | 7.7 |
South Africa | 7.6 | 6.8 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 99.5% | | | Stocks 99.8% | |
| Short-Term Investments and Net Other Assets (Liabilities) 0.5% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.2% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.3% |
| Shares | | Value |
Australia - 1.0% |
iProperty Group Ltd. (a) | 534,595 | | $ 1,291,261 |
SEEK Ltd. | 87,552 | | 1,359,935 |
Sydney Airport unit | 346,004 | | 1,356,467 |
TOTAL AUSTRALIA | | 4,007,663 |
Bailiwick of Jersey - 0.4% |
WPP PLC | 73,600 | | 1,586,934 |
Bermuda - 1.2% |
Brilliance China Automotive Holdings Ltd. | 1,296,000 | | 2,002,603 |
Credicorp Ltd. (United States) | 20,914 | | 3,121,415 |
TOTAL BERMUDA | | 5,124,018 |
Brazil - 6.7% |
BB Seguridade Participacoes SA | 218,000 | | 2,554,699 |
CCR SA | 307,900 | | 2,409,622 |
Cielo SA | 178,860 | | 3,168,503 |
Estacio Participacoes SA | 194,600 | | 2,084,112 |
Iguatemi Empresa de Shopping Centers SA | 184,900 | | 1,838,427 |
Kroton Educacional SA | 96,400 | | 2,064,834 |
Linx SA | 63,700 | | 1,390,130 |
Multiplan Empreendimentos Imobiliarios SA | 84,608 | | 1,869,933 |
Odontoprev SA | 417,100 | | 1,674,199 |
Qualicorp SA (a) | 190,900 | | 1,855,277 |
Souza Cruz SA | 218,300 | | 1,992,333 |
Ultrapar Participacoes SA | 103,600 | | 2,600,977 |
Weg SA | 177,615 | | 2,143,568 |
TOTAL BRAZIL | | 27,646,614 |
British Virgin Islands - 0.4% |
Mail.Ru Group Ltd. GDR (a)(e) | 63,800 | | 1,733,446 |
Canada - 0.3% |
Valeant Pharmaceuticals International (Canada) (a) | 10,900 | | 1,457,610 |
Cayman Islands - 8.7% |
51job, Inc. sponsored ADR (a)(d) | 24,345 | | 1,641,827 |
Airtac International Group | 148,000 | | 1,592,084 |
Autohome, Inc. ADR Class A (d) | 44,200 | | 1,415,726 |
Baidu.com, Inc. sponsored ADR (a) | 12,713 | | 1,955,895 |
Baoxin Auto Group Ltd. | 39,000 | | 29,428 |
Biostime International Holdings Ltd. | 243,000 | | 1,614,160 |
Bitauto Holdings Ltd. ADR (a) | 53,655 | | 1,922,459 |
Cimc Enric Holdings Ltd. | 1,044,000 | | 1,510,867 |
ENN Energy Holdings Ltd. | 326,000 | | 2,279,029 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Ginko International Co. Ltd. | 52,000 | | $ 873,979 |
Greatview Aseptic Pack Co. Ltd. | 2,706,000 | | 1,650,904 |
Haitian International Holdings Ltd. | 680,000 | | 1,370,008 |
Melco Crown Entertainment Ltd. sponsored ADR | 39,300 | | 1,343,274 |
MGM China Holdings Ltd. | 396,000 | | 1,379,088 |
Sands China Ltd. | 217,800 | | 1,590,037 |
Shenzhou International Group Holdings Ltd. | 488,000 | | 1,680,599 |
SouFun Holdings Ltd. ADR | 133,485 | | 1,571,118 |
Tencent Holdings Ltd. | 140,100 | | 8,731,685 |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 43,865 | | 1,491,410 |
TOTAL CAYMAN ISLANDS | | 35,643,577 |
Chile - 0.0% |
Quinenco SA | 2,951 | | 6,537 |
China - 1.7% |
China Pacific Insurance Group Co. Ltd. (H Shares) | 773,600 | | 2,424,687 |
PICC Property & Casualty Co. Ltd. (H Shares) | 1,328,500 | | 1,751,239 |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 414,000 | | 3,062,434 |
TOTAL CHINA | | 7,238,360 |
Colombia - 0.5% |
Grupo de Inversiones Suramerica SA | 117,735 | | 2,296,853 |
Denmark - 0.4% |
Novo Nordisk A/S Series B sponsored ADR | 34,201 | | 1,552,383 |
Finland - 0.4% |
Kone Oyj (B Shares) (d) | 38,300 | | 1,637,636 |
France - 1.5% |
Bureau Veritas SA | 51,700 | | 1,577,972 |
LVMH Moet Hennessy - Louis Vuitton SA | 8,015 | | 1,576,205 |
Pernod Ricard SA | 13,700 | | 1,644,269 |
Safran SA | 23,700 | | 1,592,881 |
TOTAL FRANCE | | 6,391,327 |
Greece - 1.2% |
Folli Follie SA (a) | 47,100 | | 1,633,605 |
Greek Organization of Football Prognostics SA | 115,500 | | 1,842,748 |
Jumbo SA | 93,931 | | 1,518,172 |
TOTAL GREECE | | 4,994,525 |
Common Stocks - continued |
| Shares | | Value |
Hong Kong - 0.8% |
AIA Group Ltd. | 348,600 | | $ 1,690,629 |
Galaxy Entertainment Group Ltd. | 193,000 | | 1,514,785 |
TOTAL HONG KONG | | 3,205,414 |
India - 10.0% |
Axis Bank Ltd. | 70,512 | | 1,781,683 |
Bajaj Auto Ltd. | 60,192 | | 1,908,251 |
Grasim Industries Ltd. | 29,902 | | 1,320,937 |
Havells India Ltd. | 95,718 | | 1,478,102 |
HCL Technologies Ltd. | 86,885 | | 2,020,906 |
HDFC Bank Ltd. | 278,840 | | 3,489,316 |
Housing Development Finance Corp. Ltd. | 281,228 | | 4,186,831 |
ITC Ltd. | 537,954 | | 3,039,175 |
Larsen & Toubro Ltd. | 107,466 | | 2,305,757 |
Lupin Ltd. | 98,895 | | 1,687,493 |
Mahindra & Mahindra Ltd. | 130,037 | | 2,315,937 |
Mundra Port and SEZ Ltd. | 571,376 | | 1,782,856 |
Sun Pharmaceutical Industries Ltd. | 242,959 | | 2,549,025 |
Tata Consultancy Services Ltd. | 99,288 | | 3,603,768 |
Tata Motors Ltd. | 344,277 | | 2,381,454 |
Titan Co. Ltd. | 366,235 | | 1,667,000 |
Yes Bank Ltd. | 252,599 | | 1,845,859 |
Zee Entertainment Enterprises Ltd. | 366,050 | | 1,593,712 |
TOTAL INDIA | | 40,958,062 |
Indonesia - 5.9% |
PT ACE Hardware Indonesia Tbk | 23,655,800 | | 1,524,333 |
PT Astra International Tbk | 4,237,900 | | 2,721,654 |
PT Bank Central Asia Tbk | 3,148,800 | | 2,995,874 |
PT Bank Rakyat Indonesia Tbk | 3,411,900 | | 2,921,577 |
PT Global Mediacom Tbk | 9,154,500 | | 1,734,062 |
PT Indocement Tunggal Prakarsa Tbk | 954,600 | | 1,812,349 |
PT Jasa Marga Tbk | 3,417,300 | | 1,743,897 |
PT Kalbe Farma Tbk | 14,344,100 | | 1,916,848 |
PT Media Nusantara Citra Tbk | 6,597,900 | | 1,549,392 |
PT Semen Gresik (Persero) Tbk | 1,502,100 | | 1,929,350 |
PT Surya Citra Media Tbk | 6,596,400 | | 1,797,229 |
PT Tower Bersama Infrastructure Tbk | 2,578,700 | | 1,449,773 |
TOTAL INDONESIA | | 24,096,338 |
Common Stocks - continued |
| Shares | | Value |
Italy - 0.7% |
Pirelli & C. S.p.A. | 77,600 | | $ 1,300,513 |
Prada SpA | 212,300 | | 1,695,015 |
TOTAL ITALY | | 2,995,528 |
Japan - 0.8% |
Japan Tobacco, Inc. | 47,600 | | 1,562,533 |
SoftBank Corp. | 22,800 | | 1,692,688 |
TOTAL JAPAN | | 3,255,221 |
Kenya - 1.2% |
East African Breweries Ltd. | 459,462 | | 1,547,206 |
Kenya Commercial Bank Ltd. | 2,512,400 | | 1,414,867 |
Safaricom Ltd. | 12,229,800 | | 1,841,287 |
TOTAL KENYA | | 4,803,360 |
Korea (South) - 9.0% |
Grand Korea Leisure Co. Ltd. | 36,040 | | 1,501,812 |
Hotel Shilla Co. | 15,834 | | 1,331,889 |
Hyundai Mobis | 12,617 | | 3,602,764 |
Hyundai Motor Co. | 27,375 | | 6,094,521 |
KEPCO Plant Service & Engineering Co. Ltd. | 22,717 | | 1,477,671 |
Naver Corp. | 5,312 | | 3,794,653 |
Samsung Electronics Co. Ltd. | 14,897 | | 19,365,665 |
TOTAL KOREA (SOUTH) | | 37,168,975 |
Luxembourg - 0.5% |
Brait SA | 352,222 | | 1,897,288 |
Malaysia - 0.9% |
Astro Malaysia Holdings Bhd | 1,418,700 | | 1,448,052 |
Public Bank Bhd | 363,100 | | 2,241,482 |
TOTAL MALAYSIA | | 3,689,534 |
Mexico - 5.7% |
Alfa SA de CV Series A | 828,000 | | 2,180,321 |
Banregio Grupo Financiero S.A.B. de CV | 263,666 | | 1,523,822 |
El Puerto de Liverpool S.A.B. de CV Class C | 124,534 | | 1,282,488 |
Fomento Economico Mexicano S.A.B. de CV unit | 383,000 | | 3,495,165 |
Gruma S.A.B. de CV Series B (a) | 202,000 | | 1,784,576 |
Grupo Aeroportuario del Pacifico SA de CV Series B | 307,921 | | 1,851,845 |
Grupo Aeroportuario del Sureste SA de CV Series B | 151,700 | | 1,856,195 |
Grupo Aeroportuario Norte S.A.B. de CV | 327,700 | | 1,204,069 |
Grupo Financiero Banorte S.A.B. de CV Series O | 500,300 | | 3,316,659 |
Common Stocks - continued |
| Shares | | Value |
Mexico - continued |
Grupo Televisa SA de CV | 541,300 | | $ 3,550,810 |
Megacable Holdings S.A.B. de CV unit | 370,284 | | 1,468,654 |
TOTAL MEXICO | | 23,514,604 |
Netherlands - 0.4% |
Yandex NV (a) | 57,093 | | 1,512,965 |
Nigeria - 1.2% |
Dangote Cement PLC | 1,017,266 | | 1,431,138 |
Guaranty Trust Bank PLC GDR (Reg. S) | 223,954 | | 1,881,214 |
Nigerian Breweries PLC | 1,625,358 | | 1,517,608 |
TOTAL NIGERIA | | 4,829,960 |
Panama - 0.4% |
Copa Holdings SA Class A | 11,752 | | 1,589,811 |
Philippines - 4.2% |
Alliance Global Group, Inc. | 2,904,700 | | 2,029,869 |
Ayala Corp. | 126,530 | | 1,771,278 |
DMCI Holdings, Inc. | 1,193,040 | | 1,921,711 |
GT Capital Holdings, Inc. | 77,800 | | 1,513,238 |
International Container Terminal Services, Inc. | 361,940 | | 877,750 |
LT Group, Inc. | 4,229,300 | | 1,736,314 |
Metropolitan Bank & Trust Co. | 927,273 | | 1,761,975 |
Security Bank Corp. | 667,910 | | 1,799,574 |
SM Investments Corp. | 120,796 | | 1,964,713 |
SM Prime Holdings, Inc. | 5,381,200 | | 1,970,189 |
TOTAL PHILIPPINES | | 17,346,611 |
Russia - 2.4% |
Magnit OJSC GDR (Reg. S) | 64,866 | | 3,051,945 |
NOVATEK OAO GDR (Reg. S) | 28,586 | | 2,952,934 |
Sberbank (Savings Bank of the Russian Federation) | 1,849,800 | | 3,764,505 |
TOTAL RUSSIA | | 9,769,384 |
South Africa - 7.6% |
Aspen Pharmacare Holdings Ltd. | 105,793 | | 2,815,348 |
Bidvest Group Ltd. | 94,026 | | 2,578,442 |
Clicks Group Ltd. | 275,260 | | 1,678,431 |
Discovery Holdings Ltd. | 240,489 | | 2,084,749 |
Life Healthcare Group Holdings Ltd. | 567,793 | | 2,254,333 |
Mr Price Group Ltd. | 139,500 | | 2,099,030 |
MTN Group Ltd. | 228,400 | | 4,576,684 |
Nampak Ltd. | 551,543 | | 2,055,082 |
Common Stocks - continued |
| Shares | | Value |
South Africa - continued |
Naspers Ltd. Class N | 62,500 | | $ 5,893,256 |
Remgro Ltd. | 126,100 | | 2,536,863 |
Shoprite Holdings Ltd. | 151,815 | | 2,535,277 |
TOTAL SOUTH AFRICA | | 31,107,495 |
Sweden - 0.7% |
Atlas Copco AB (A Shares) | 54,300 | | 1,571,662 |
Investment AB Kinnevik (B Shares) | 36,500 | | 1,282,681 |
TOTAL SWEDEN | | 2,854,343 |
Switzerland - 1.4% |
Compagnie Financiere Richemont SA Series A | 15,769 | | 1,600,013 |
Dufry AG (a) | 7,560 | | 1,248,976 |
SGS SA (Reg.) | 600 | | 1,496,421 |
Swatch Group AG (Bearer) | 2,390 | | 1,532,956 |
TOTAL SWITZERLAND | | 5,878,366 |
Taiwan - 5.4% |
Delta Electronics, Inc. | 390,000 | | 2,391,805 |
ECLAT Textile Co. Ltd. | 127,000 | | 1,389,336 |
Giant Manufacturing Co. Ltd. | 211,000 | | 1,650,760 |
HIWIN Technologies Corp. | 151,000 | | 1,436,641 |
Merida Industry Co. Ltd. | 249,000 | | 1,667,402 |
St.Shine Optical Co. Ltd. | 71,000 | | 1,504,003 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,115,000 | | 12,253,136 |
TOTAL TAIWAN | | 22,293,083 |
Thailand - 2.5% |
Airports of Thailand PCL (For. Reg.) | 324,600 | | 1,956,026 |
Bangkok Dusit Medical Service PCL (For. Reg.) | 3,490,000 | | 1,596,168 |
Central Pattana PCL (For. Reg.) | 1,248,700 | | 1,746,096 |
Kasikornbank PCL (For. Reg.) | 526,200 | | 3,195,250 |
Minor International PCL (For. Reg.) | 2,211,000 | | 1,680,797 |
TOTAL THAILAND | | 10,174,337 |
Togo - 0.1% |
Ecobank Transnational, Inc. | 4,322,471 | | 363,233 |
Turkey - 2.0% |
Anadolu Hayat Sigorta A/S | 304,037 | | 636,425 |
Coca-Cola Icecek Sanayi A/S | 75,050 | | 1,757,582 |
Enka Insaat ve Sanayi A/S | 634,888 | | 1,924,313 |
Common Stocks - continued |
| Shares | | Value |
Turkey - continued |
TAV Havalimanlari Holding A/S | 245,000 | | $ 1,960,882 |
Tofas Turk Otomobil Fabrikasi A/S | 304,538 | | 1,860,501 |
TOTAL TURKEY | | 8,139,703 |
United Arab Emirates - 0.4% |
First Gulf Bank PJSC | 319,671 | | 1,510,037 |
United Kingdom - 4.1% |
Aberdeen Asset Management PLC | 201,900 | | 1,488,999 |
Alabama Noor Hospitals Group PLC | 84,104 | | 1,417,172 |
British American Tobacco PLC (United Kingdom) | 29,600 | | 1,709,252 |
Burberry Group PLC | 60,668 | | 1,521,113 |
Diageo PLC | 49,239 | | 1,508,674 |
Intertek Group PLC | 31,100 | | 1,525,919 |
Johnson Matthey PLC | 25,882 | | 1,430,274 |
Meggitt PLC | 169,600 | | 1,365,043 |
Mondi PLC | 95,988 | | 1,592,300 |
Prudential PLC | 70,417 | | 1,618,826 |
Rolls-Royce Group PLC | 93,265 | | 1,653,421 |
TOTAL UNITED KINGDOM | | 16,830,993 |
United States of America - 3.6% |
Colgate-Palmolive Co. | 26,272 | | 1,768,106 |
FMC Corp. | 21,537 | | 1,658,349 |
Google, Inc. Class C (a) | 2,600 | | 1,369,316 |
Kansas City Southern | 16,620 | | 1,676,626 |
MasterCard, Inc. Class A | 22,900 | | 1,684,295 |
Mead Johnson Nutrition Co. Class A | 20,030 | | 1,767,848 |
Philip Morris International, Inc. | 19,053 | | 1,627,698 |
Visa, Inc. Class A | 7,900 | | 1,600,619 |
Yahoo!, Inc. (a) | 48,800 | | 1,754,360 |
TOTAL UNITED STATES OF AMERICA | | 14,907,217 |
TOTAL COMMON STOCKS (Cost $353,915,599) | 396,009,345
|
Nonconvertible Preferred Stocks - 3.2% |
| Shares | | Value |
Brazil - 2.8% |
Ambev SA sponsored ADR | 729,180 | | $ 5,286,555 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR | 2,939 | | 139,779 |
Itau Unibanco Holding SA sponsored ADR | 372,255 | | 6,090,092 |
TOTAL BRAZIL | | 11,516,426 |
Colombia - 0.4% |
Grupo Aval Acciones y Valores SA | 2,232,243 | | 1,510,005 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC (C Shares) | 13,033,510 | | 22,006 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $13,632,771) | 13,048,437
|
Money Market Funds - 1.9% |
| | | |
Fidelity Cash Central Fund, 0.11% (b) | 3,492,667 | | 3,492,667 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 4,184,995 | | 4,184,995 |
TOTAL MONEY MARKET FUNDS (Cost $7,677,662) | 7,677,662
|
TOTAL INVESTMENT PORTFOLIO - 101.4% (Cost $375,226,032) | 416,735,444 |
NET OTHER ASSETS (LIABILITIES) - (1.4)% | (5,645,150) |
NET ASSETS - 100% | $ 411,090,294 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,733,446 or 0.4% 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 | $ 1,219 |
Fidelity Securities Lending Cash Central Fund | 20,057 |
Total | $ 21,276 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 86,460,106 | $ 80,824,718 | $ 5,635,388 | $ - |
Consumer Staples | 42,764,486 | 39,546,560 | 3,217,926 | - |
Energy | 5,553,911 | 5,553,911 | - | - |
Financials | 86,750,803 | 79,860,978 | 6,889,825 | - |
Health Care | 24,645,248 | 22,957,755 | 1,687,493 | - |
Industrials | 61,631,373 | 61,631,373 | - | - |
Information Technology | 74,531,711 | 62,278,575 | 12,253,136 | - |
Materials | 14,880,683 | 13,559,746 | 1,320,937 | - |
Telecommunication Services | 9,560,432 | 9,560,432 | - | - |
Utilities | 2,279,029 | 2,279,029 | - | - |
Money Market Funds | 7,677,662 | 7,677,662 | - | - |
Total Investments in Securities: | $ 416,735,444 | $ 385,730,739 | $ 31,004,705 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 6,132,566 |
Level 2 to Level 1 | $ 1,545,043 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $4,032,182) - See accompanying schedule: Unaffiliated issuers (cost $367,548,370) | $ 409,057,782 | |
Fidelity Central Funds (cost $7,677,662) | 7,677,662 | |
Total Investments (cost $375,226,032) | | $ 416,735,444 |
Foreign currency held at value (cost $30) | | 278 |
Receivable for investments sold | | 5,155,834 |
Receivable for fund shares sold | | 313,217 |
Dividends receivable | | 912,018 |
Distributions receivable from Fidelity Central Funds | | 2,829 |
Prepaid expenses | | 247 |
Other receivables | | 28,332 |
Total assets | | 423,148,199 |
| | |
Liabilities | | |
Payable for investments purchased | $ 6,247,494 | |
Payable for fund shares redeemed | 439,236 | |
Accrued management fee | 276,196 | |
Distribution and service plan fees payable | 105,541 | |
Other affiliated payables | 105,887 | |
Other payables and accrued expenses | 698,556 | |
Collateral on securities loaned, at value | 4,184,995 | |
Total liabilities | | 12,057,905 |
| | |
Net Assets | | $ 411,090,294 |
Net Assets consist of: | | |
Paid in capital | | $ 427,285,429 |
Undistributed net investment income | | 122,583 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (57,251,298) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 40,933,580 |
Net Assets | | $ 411,090,294 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($135,208,177 ÷ 6,081,368 shares) | | $ 22.23 |
| | |
Maximum offering price per share (100/94.25 of $22.23) | | $ 23.59 |
Class T: Net Asset Value and redemption price per share ($50,908,125 ÷ 2,294,687 shares) | | $ 22.19 |
| | |
Maximum offering price per share (100/96.50 of $22.19) | | $ 22.99 |
Class B: Net Asset Value and offering price per share ($8,785,907 ÷ 404,573 shares)A | | $ 21.72 |
| | |
Class C: Net Asset Value and offering price per share ($57,425,146 ÷ 2,650,280 shares)A | | $ 21.67 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($158,058,159 ÷ 7,085,176 shares) | | $ 22.31 |
| | |
Class Z: Net Asset Value, offering price and redemption price per share ($704,780 ÷ 31,615 shares) | | $ 22.29 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,640,420 |
Interest | | 2 |
Income from Fidelity Central Funds | | 21,276 |
Income before foreign taxes withheld | | 3,661,698 |
Less foreign taxes withheld | | (326,935) |
Total income | | 3,334,763 |
| | |
Expenses | | |
Management fee | $ 1,624,327 | |
Transfer agent fees | 544,135 | |
Distribution and service plan fees | 644,396 | |
Accounting and security lending fees | 105,664 | |
Custodian fees and expenses | 154,458 | |
Independent trustees' compensation | 804 | |
Registration fees | 64,934 | |
Audit | 54,726 | |
Legal | 960 | |
Miscellaneous | 21,269 | |
Total expenses | | 3,215,673 |
Net investment income (loss) | | 119,090 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (4,328,391) | |
Foreign currency transactions | (179,979) | |
Total net realized gain (loss) | | (4,508,370) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $341,639) | (2,480,428) | |
Assets and liabilities in foreign currencies | 24,923 | |
Total change in net unrealized appreciation (depreciation) | | (2,455,505) |
Net gain (loss) | | (6,963,875) |
Net increase (decrease) in net assets resulting from operations | | $ (6,844,785) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 119,090 | $ 1,405,290 |
Net realized gain (loss) | (4,508,370) | 41,473,017 |
Change in net unrealized appreciation (depreciation) | (2,455,505) | 2,826,987 |
Net increase (decrease) in net assets resulting from operations | (6,844,785) | 45,705,294 |
Distributions to shareholders from net investment income | (1,113,220) | (3,939,467) |
Distributions to shareholders from net realized gain | (185,954) | - |
Total distributions | (1,299,174) | (3,939,467) |
Share transactions - net increase (decrease) | (7,559,605) | (61,785,803) |
Redemption fees | 13,497 | 43,406 |
Total increase (decrease) in net assets | (15,690,067) | (19,976,570) |
| | |
Net Assets | | |
Beginning of period | 426,780,361 | 446,756,931 |
End of period (including undistributed net investment income of $122,583 and undistributed net investment income of $1,116,713, respectively) | $ 411,090,294 | $ 426,780,361 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.62 | $ 20.51 | $ 20.50 | $ 23.71 | $ 19.20 | $ 12.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | .08 | .22 | .21 | .12 | .10 |
Net realized and unrealized gain (loss) | (.34) | 2.23 | (.06) | (3.19) | 4.59 | 6.64 |
Total from investment operations | (.33) | 2.31 | .16 | (2.98) | 4.71 | 6.74 |
Distributions from net investment income | (.05) | (.20) | (.15) | (.11) | (.07) | (.14) |
Distributions from net realized gain | (.01) | - | - | (.13) | (.13) | - |
Total distributions | (.06) | (.20) | (.15) | (.24) | (.20) | (.14) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | .01 |
Net asset value, end of period | $ 22.23 | $ 22.62 | $ 20.51 | $ 20.50 | $ 23.71 | $ 19.20 |
Total Return B,C,D | (1.45)% | 11.34% | .80% | (12.69)% | 24.69% | 54.54% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.55% A | 1.56% | 1.54% | 1.54% | 1.56% | 1.60% |
Expenses net of fee waivers, if any | 1.55% A | 1.55% | 1.54% | 1.54% | 1.56% | 1.60% |
Expenses net of all reductions | 1.55% A | 1.50% | 1.48% | 1.47% | 1.50% | 1.53% |
Net investment income (loss) | .09% A | .38% | 1.07% | .92% | .59% | .70% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 135,208 | $ 146,378 | $ 160,464 | $ 202,477 | $ 286,970 | $ 216,187 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.55 | $ 20.44 | $ 20.43 | $ 23.61 | $ 19.14 | $ 12.49 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .03 | .16 | .15 | .07 | .07 |
Net realized and unrealized gain (loss) | (.33) | 2.22 | (.06) | (3.18) | 4.57 | 6.64 |
Total from investment operations | (.35) | 2.25 | .10 | (3.03) | 4.64 | 6.71 |
Distributions from net investment income | - I | (.14) | (.09) | (.04) | (.04) | (.07) |
Distributions from net realized gain | (.01) | - | - | (.13) | (.13) | - |
Total distributions | (.01) | (.14) | (.09) | (.16) J | (.17) | (.07) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | .01 |
Net asset value, end of period | $ 22.19 | $ 22.55 | $ 20.44 | $ 20.43 | $ 23.61 | $ 19.14 |
Total Return B,C,D | (1.54)% | 11.06% | .49% | (12.89)% | 24.38% | 54.17% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.81% A | 1.81% | 1.80% | 1.79% | 1.81% | 1.87% |
Expenses net of fee waivers, if any | 1.81% A | 1.81% | 1.80% | 1.79% | 1.81% | 1.85% |
Expenses net of all reductions | 1.81% A | 1.76% | 1.73% | 1.73% | 1.76% | 1.78% |
Net investment income (loss) | (.16)% A | .13% | .81% | .66% | .33% | .44% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 50,908 | $ 55,797 | $ 58,919 | $ 73,146 | $ 104,417 | $ 86,959 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.11 | $ 20.03 | $ 20.03 | $ 23.14 | $ 18.80 | $ 12.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.08) | .06 | .04 | (.03) | (.01) |
Net realized and unrealized gain (loss) | (.32) | 2.18 | (.06) | (3.13) | 4.49 | 6.55 |
Total from investment operations | (.39) | 2.10 | - | (3.09) | 4.46 | 6.54 |
Distributions from net investment income | - | (.02) | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.03) | (.12) | - |
Total distributions | - | (.02) | - | (.03) J | (.12) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | - I |
Net asset value, end of period | $ 21.72 | $ 22.11 | $ 20.03 | $ 20.03 | $ 23.14 | $ 18.80 |
Total Return B,C,D | (1.76)% | 10.50% | -% | (13.33)% | 23.77% | 53.34% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.30% A | 2.31% | 2.29% | 2.29% | 2.32% | 2.36% |
Expenses net of fee waivers, if any | 2.30% A | 2.31% | 2.29% | 2.29% | 2.32% | 2.35% |
Expenses net of all reductions | 2.30% A | 2.26% | 2.23% | 2.22% | 2.26% | 2.28% |
Net investment income (loss) | (.66)% A | (.37)% | .32% | .16% | (.17)% | (.05)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 8,786 | $ 11,391 | $ 15,994 | $ 21,304 | $ 31,159 | $ 27,580 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.06 | $ 20.00 | $ 20.00 | $ 23.13 | $ 18.80 | $ 12.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.08) | .06 | .04 | (.03) | (.01) |
Net realized and unrealized gain (loss) | (.32) | 2.18 | (.06) | (3.12) | 4.49 | 6.54 |
Total from investment operations | (.39) | 2.10 | - | (3.08) | 4.46 | 6.53 |
Distributions from net investment income | - | (.04) | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.05) | (.13) | - |
Total distributions | - | (.04) | - | (.06) | (.13) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | .01 |
Net asset value, end of period | $ 21.67 | $ 22.06 | $ 20.00 | $ 20.00 | $ 23.13 | $ 18.80 |
Total Return B,C,D | (1.77)% | 10.49% | -% | (13.33)% | 23.80% | 53.34% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.30% A | 2.31% | 2.29% | 2.28% | 2.30% | 2.34% |
Expenses net of fee waivers, if any | 2.30% A | 2.30% | 2.29% | 2.28% | 2.30% | 2.34% |
Expenses net of all reductions | 2.30% A | 2.25% | 2.23% | 2.22% | 2.24% | 2.28% |
Net investment income (loss) | (.66)% A | (.37)% | .32% | .17% | (.15)% | (.05)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 57,425 | $ 62,532 | $ 65,598 | $ 80,855 | $ 106,711 | $ 83,939 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.73 | $ 20.61 | $ 20.63 | $ 23.87 | $ 19.29 | $ 12.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .15 | .28 | .29 | .20 | .15 |
Net realized and unrealized gain (loss) | (.34) | 2.25 | (.06) | (3.21) | 4.62 | 6.65 |
Total from investment operations | (.29) | 2.40 | .22 | (2.92) | 4.82 | 6.80 |
Distributions from net investment income | (.12) | (.28) | (.24) | (.20) | (.11) | (.23) |
Distributions from net realized gain | (.01) | - | - | (.13) | (.13) | - |
Total distributions | (.13) | (.28) | (.24) | (.33) | (.24) | (.23) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | - H | .01 |
Net asset value, end of period | $ 22.31 | $ 22.73 | $ 20.61 | $ 20.63 | $ 23.87 | $ 19.29 |
Total Return B,C | (1.26)% | 11.73% | 1.08% | (12.41)% | 25.15% | 54.97% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.21% A | 1.23% | 1.22% | 1.21% | 1.22% | 1.30% |
Expenses net of fee waivers, if any | 1.21% A | 1.22% | 1.22% | 1.21% | 1.22% | 1.30% |
Expenses net of all reductions | 1.21% A | 1.18% | 1.16% | 1.14% | 1.17% | 1.23% |
Net investment income (loss) | .44% A | .71% | 1.39% | 1.25% | .93% | .99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 158,058 | $ 150,576 | $ 145,782 | $ 138,312 | $ 184,789 | $ 106,713 |
Portfolio turnover rate F | 100% A | 121% | 177% | 122% | 86% | 85% |
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
Financial Highlights - Class Z
| Six months ended April 30, 2014 | Year ended October 31, |
| (Unaudited) | 2013 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 22.73 | $ 21.33 |
Income from Investment Operations | | |
Net investment income (loss) D | .06 | .03 |
Net realized and unrealized gain (loss) | (.33) | 1.37 |
Total from investment operations | (.27) | 1.40 |
Distributions from net investment income | (.16) | - |
Distributions from net realized gain | (.01) | - |
Total distributions | (.17) | - |
Redemption fees added to paid in capital D,I | - | - |
Net asset value, end of period | $ 22.29 | $ 22.73 |
Total Return B,C | (1.17)% | 6.56% |
Ratios to Average Net Assets E,H | | |
Expenses before reductions | 1.04% A | 1.05% A |
Expenses net of fee waivers, if any | 1.04% A | 1.05% A |
Expenses net of all reductions | 1.04% A | 1.00% A |
Net investment income (loss) | .60% A | .62% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 705 | $ 107 |
Portfolio turnover rate F | 100% A | 121% |
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 For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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, 2014 (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, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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 as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 54,183,084 |
Gross unrealized depreciation | (14,121,981) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 40,061,103 |
| |
Tax cost | $ 376,674,341 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (51,004,288) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $203,119,094 and $213,770,576, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .80% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 171,654 | $ 4,140 |
Class T | .25% | .25% | 128,870 | 1,530 |
Class B | .75% | .25% | 49,655 | 37,453 |
Class C | .75% | .25% | 294,217 | 31,800 |
| | | $ 644,396 | $ 74,923 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
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 | $ 42,316 |
Class T | 5,481 |
Class B* | 6,588 |
Class C* | 2,973 |
| $ 57,358 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 207,582 | .30 |
Class T | 79,523 | .31 |
Class B | 15,005 | .30 |
Class C | 89,034 | .30 |
Institutional Class | 152,845 | .21 |
Class Z | 146 | .05 |
| $ 544,135 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $441 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $379 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $20,057. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 314,530 | $ 1,535,570 |
Class T | 2,453 | 390,398 |
Class B | - | 16,014 |
Class C | - | 114,064 |
Institutional Class | 791,098 | 1,883,421 |
Class Z | 5,139 | - |
Total | $ 1,113,220 | $ 3,939,467 |
From net realized gain | | |
Class A | $ 77,028 | $ - |
Class T | 29,431 | - |
Institutional Class | 79,110 | - |
Class Z | 385 | - |
Total | $ 185,954 | $ - |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013A | Six months ended April 30, 2014 | Year ended October 31, 2013A |
Class A | | | | |
Shares sold | 616,672 | 1,531,175 | $ 13,492,549 | $ 33,017,349 |
Reinvestment of distributions | 16,163 | 66,573 | 356,881 | 1,392,653 |
Shares redeemed | (1,023,807) | (2,949,139) | (22,219,541) | (63,054,707) |
Net increase (decrease) | (390,972) | (1,351,391) | $ (8,370,111) | $ (28,644,705) |
Class T | | | | |
Shares sold | 172,791 | 561,309 | $ 3,767,248 | $ 12,048,127 |
Reinvestment of distributions | 1,397 | 17,796 | 30,812 | 372,006 |
Shares redeemed | (354,184) | (986,849) | (7,664,029) | (20,912,996) |
Net increase (decrease) | (179,996) | (407,744) | $ (3,865,969) | $ (8,492,863) |
Class B | | | | |
Shares sold | 6,662 | 34,695 | $ 141,885 | $ 732,488 |
Reinvestment of distributions | - | 627 | - | 12,965 |
Shares redeemed | (117,224) | (318,597) | (2,496,551) | (6,698,614) |
Net increase (decrease) | (110,562) | (283,275) | $ (2,354,666) | $ (5,953,161) |
Semiannual Report
9. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013A | Six months ended April 30, 2014 | Year ended October 31, 2013A |
Class C | | | | |
Shares sold | 263,234 | 507,210 | $ 5,623,441 | $ 10,683,514 |
Reinvestment of distributions | - | 4,797 | - | 98,768 |
Shares redeemed | (447,291) | (957,148) | (9,390,914) | (19,925,235) |
Net increase (decrease) | (184,057) | (445,141) | $ (3,767,473) | $ (9,142,953) |
Institutional Class | | | | |
Shares sold | 819,963 | 1,298,034 | $ 18,062,614 | $ 27,937,972 |
Reinvestment of distributions | 36,756 | 84,781 | 813,036 | 1,776,730 |
Shares redeemed | (397,421) | (1,828,795) | (8,679,540) | (39,366,823) |
Net increase (decrease) | 459,298 | (445,980) | $ 10,196,110 | $ (9,652,121) |
Class Z | | | | |
Shares sold | 30,873 | 4,688 | $ 687,216 | $ 100,000 |
Reinvestment of distributions | 250 | - | 5,524 | - |
Shares redeemed | (4,196) | - | (90,236) | - |
Net increase (decrease) | 26,927 | 4,688 | $ 602,504 | $ 100,000 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
FAEM-USAN-0614
1.800637.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets
Fund - Class Z
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.55% | | | |
Actual | | $ 1,000.00 | $ 985.50 | $ 7.63 |
HypotheticalA | | $ 1,000.00 | $ 1,017.11 | $ 7.75 |
Class T | 1.81% | | | |
Actual | | $ 1,000.00 | $ 984.60 | $ 8.91 |
HypotheticalA | | $ 1,000.00 | $ 1,015.82 | $ 9.05 |
Class B | 2.30% | | | |
Actual | | $ 1,000.00 | $ 982.40 | $ 11.31 |
HypotheticalA | | $ 1,000.00 | $ 1,013.39 | $ 11.48 |
Class C | 2.30% | | | |
Actual | | $ 1,000.00 | $ 982.30 | $ 11.30 |
HypotheticalA | | $ 1,000.00 | $ 1,013.39 | $ 11.48 |
Institutional Class | 1.21% | | | |
Actual | | $ 1,000.00 | $ 987.40 | $ 5.96 |
HypotheticalA | | $ 1,000.00 | $ 1,018.79 | $ 6.06 |
Class Z | 1.04% | | | |
Actual | | $ 1,000.00 | $ 988.30 | $ 5.13 |
HypotheticalA | | $ 1,000.00 | $ 1,019.64 | $ 5.21 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 4.7 | 4.7 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.0 | 2.6 |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 2.1 | 1.7 |
Hyundai Motor Co. (Korea (South), Automobiles) | 1.5 | 1.4 |
Itau Unibanco Holding SA sponsored ADR (Brazil, Banks) | 1.5 | 1.4 |
| 12.8 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 20.9 | 26.7 |
Consumer Discretionary | 21.2 | 20.6 |
Information Technology | 18.2 | 14.6 |
Industrials | 15.0 | 13.1 |
Consumer Staples | 10.3 | 11.3 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
India | 10.0 | 11.4 |
Brazil | 9.5 | 11.7 |
Korea (South) | 9.0 | 8.1 |
Cayman Islands | 8.7 | 7.7 |
South Africa | 7.6 | 6.8 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 99.5% | | | Stocks 99.8% | |
| Short-Term Investments and Net Other Assets (Liabilities) 0.5% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.2% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.3% |
| Shares | | Value |
Australia - 1.0% |
iProperty Group Ltd. (a) | 534,595 | | $ 1,291,261 |
SEEK Ltd. | 87,552 | | 1,359,935 |
Sydney Airport unit | 346,004 | | 1,356,467 |
TOTAL AUSTRALIA | | 4,007,663 |
Bailiwick of Jersey - 0.4% |
WPP PLC | 73,600 | | 1,586,934 |
Bermuda - 1.2% |
Brilliance China Automotive Holdings Ltd. | 1,296,000 | | 2,002,603 |
Credicorp Ltd. (United States) | 20,914 | | 3,121,415 |
TOTAL BERMUDA | | 5,124,018 |
Brazil - 6.7% |
BB Seguridade Participacoes SA | 218,000 | | 2,554,699 |
CCR SA | 307,900 | | 2,409,622 |
Cielo SA | 178,860 | | 3,168,503 |
Estacio Participacoes SA | 194,600 | | 2,084,112 |
Iguatemi Empresa de Shopping Centers SA | 184,900 | | 1,838,427 |
Kroton Educacional SA | 96,400 | | 2,064,834 |
Linx SA | 63,700 | | 1,390,130 |
Multiplan Empreendimentos Imobiliarios SA | 84,608 | | 1,869,933 |
Odontoprev SA | 417,100 | | 1,674,199 |
Qualicorp SA (a) | 190,900 | | 1,855,277 |
Souza Cruz SA | 218,300 | | 1,992,333 |
Ultrapar Participacoes SA | 103,600 | | 2,600,977 |
Weg SA | 177,615 | | 2,143,568 |
TOTAL BRAZIL | | 27,646,614 |
British Virgin Islands - 0.4% |
Mail.Ru Group Ltd. GDR (a)(e) | 63,800 | | 1,733,446 |
Canada - 0.3% |
Valeant Pharmaceuticals International (Canada) (a) | 10,900 | | 1,457,610 |
Cayman Islands - 8.7% |
51job, Inc. sponsored ADR (a)(d) | 24,345 | | 1,641,827 |
Airtac International Group | 148,000 | | 1,592,084 |
Autohome, Inc. ADR Class A (d) | 44,200 | | 1,415,726 |
Baidu.com, Inc. sponsored ADR (a) | 12,713 | | 1,955,895 |
Baoxin Auto Group Ltd. | 39,000 | | 29,428 |
Biostime International Holdings Ltd. | 243,000 | | 1,614,160 |
Bitauto Holdings Ltd. ADR (a) | 53,655 | | 1,922,459 |
Cimc Enric Holdings Ltd. | 1,044,000 | | 1,510,867 |
ENN Energy Holdings Ltd. | 326,000 | | 2,279,029 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Ginko International Co. Ltd. | 52,000 | | $ 873,979 |
Greatview Aseptic Pack Co. Ltd. | 2,706,000 | | 1,650,904 |
Haitian International Holdings Ltd. | 680,000 | | 1,370,008 |
Melco Crown Entertainment Ltd. sponsored ADR | 39,300 | | 1,343,274 |
MGM China Holdings Ltd. | 396,000 | | 1,379,088 |
Sands China Ltd. | 217,800 | | 1,590,037 |
Shenzhou International Group Holdings Ltd. | 488,000 | | 1,680,599 |
SouFun Holdings Ltd. ADR | 133,485 | | 1,571,118 |
Tencent Holdings Ltd. | 140,100 | | 8,731,685 |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 43,865 | | 1,491,410 |
TOTAL CAYMAN ISLANDS | | 35,643,577 |
Chile - 0.0% |
Quinenco SA | 2,951 | | 6,537 |
China - 1.7% |
China Pacific Insurance Group Co. Ltd. (H Shares) | 773,600 | | 2,424,687 |
PICC Property & Casualty Co. Ltd. (H Shares) | 1,328,500 | | 1,751,239 |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 414,000 | | 3,062,434 |
TOTAL CHINA | | 7,238,360 |
Colombia - 0.5% |
Grupo de Inversiones Suramerica SA | 117,735 | | 2,296,853 |
Denmark - 0.4% |
Novo Nordisk A/S Series B sponsored ADR | 34,201 | | 1,552,383 |
Finland - 0.4% |
Kone Oyj (B Shares) (d) | 38,300 | | 1,637,636 |
France - 1.5% |
Bureau Veritas SA | 51,700 | | 1,577,972 |
LVMH Moet Hennessy - Louis Vuitton SA | 8,015 | | 1,576,205 |
Pernod Ricard SA | 13,700 | | 1,644,269 |
Safran SA | 23,700 | | 1,592,881 |
TOTAL FRANCE | | 6,391,327 |
Greece - 1.2% |
Folli Follie SA (a) | 47,100 | | 1,633,605 |
Greek Organization of Football Prognostics SA | 115,500 | | 1,842,748 |
Jumbo SA | 93,931 | | 1,518,172 |
TOTAL GREECE | | 4,994,525 |
Common Stocks - continued |
| Shares | | Value |
Hong Kong - 0.8% |
AIA Group Ltd. | 348,600 | | $ 1,690,629 |
Galaxy Entertainment Group Ltd. | 193,000 | | 1,514,785 |
TOTAL HONG KONG | | 3,205,414 |
India - 10.0% |
Axis Bank Ltd. | 70,512 | | 1,781,683 |
Bajaj Auto Ltd. | 60,192 | | 1,908,251 |
Grasim Industries Ltd. | 29,902 | | 1,320,937 |
Havells India Ltd. | 95,718 | | 1,478,102 |
HCL Technologies Ltd. | 86,885 | | 2,020,906 |
HDFC Bank Ltd. | 278,840 | | 3,489,316 |
Housing Development Finance Corp. Ltd. | 281,228 | | 4,186,831 |
ITC Ltd. | 537,954 | | 3,039,175 |
Larsen & Toubro Ltd. | 107,466 | | 2,305,757 |
Lupin Ltd. | 98,895 | | 1,687,493 |
Mahindra & Mahindra Ltd. | 130,037 | | 2,315,937 |
Mundra Port and SEZ Ltd. | 571,376 | | 1,782,856 |
Sun Pharmaceutical Industries Ltd. | 242,959 | | 2,549,025 |
Tata Consultancy Services Ltd. | 99,288 | | 3,603,768 |
Tata Motors Ltd. | 344,277 | | 2,381,454 |
Titan Co. Ltd. | 366,235 | | 1,667,000 |
Yes Bank Ltd. | 252,599 | | 1,845,859 |
Zee Entertainment Enterprises Ltd. | 366,050 | | 1,593,712 |
TOTAL INDIA | | 40,958,062 |
Indonesia - 5.9% |
PT ACE Hardware Indonesia Tbk | 23,655,800 | | 1,524,333 |
PT Astra International Tbk | 4,237,900 | | 2,721,654 |
PT Bank Central Asia Tbk | 3,148,800 | | 2,995,874 |
PT Bank Rakyat Indonesia Tbk | 3,411,900 | | 2,921,577 |
PT Global Mediacom Tbk | 9,154,500 | | 1,734,062 |
PT Indocement Tunggal Prakarsa Tbk | 954,600 | | 1,812,349 |
PT Jasa Marga Tbk | 3,417,300 | | 1,743,897 |
PT Kalbe Farma Tbk | 14,344,100 | | 1,916,848 |
PT Media Nusantara Citra Tbk | 6,597,900 | | 1,549,392 |
PT Semen Gresik (Persero) Tbk | 1,502,100 | | 1,929,350 |
PT Surya Citra Media Tbk | 6,596,400 | | 1,797,229 |
PT Tower Bersama Infrastructure Tbk | 2,578,700 | | 1,449,773 |
TOTAL INDONESIA | | 24,096,338 |
Common Stocks - continued |
| Shares | | Value |
Italy - 0.7% |
Pirelli & C. S.p.A. | 77,600 | | $ 1,300,513 |
Prada SpA | 212,300 | | 1,695,015 |
TOTAL ITALY | | 2,995,528 |
Japan - 0.8% |
Japan Tobacco, Inc. | 47,600 | | 1,562,533 |
SoftBank Corp. | 22,800 | | 1,692,688 |
TOTAL JAPAN | | 3,255,221 |
Kenya - 1.2% |
East African Breweries Ltd. | 459,462 | | 1,547,206 |
Kenya Commercial Bank Ltd. | 2,512,400 | | 1,414,867 |
Safaricom Ltd. | 12,229,800 | | 1,841,287 |
TOTAL KENYA | | 4,803,360 |
Korea (South) - 9.0% |
Grand Korea Leisure Co. Ltd. | 36,040 | | 1,501,812 |
Hotel Shilla Co. | 15,834 | | 1,331,889 |
Hyundai Mobis | 12,617 | | 3,602,764 |
Hyundai Motor Co. | 27,375 | | 6,094,521 |
KEPCO Plant Service & Engineering Co. Ltd. | 22,717 | | 1,477,671 |
Naver Corp. | 5,312 | | 3,794,653 |
Samsung Electronics Co. Ltd. | 14,897 | | 19,365,665 |
TOTAL KOREA (SOUTH) | | 37,168,975 |
Luxembourg - 0.5% |
Brait SA | 352,222 | | 1,897,288 |
Malaysia - 0.9% |
Astro Malaysia Holdings Bhd | 1,418,700 | | 1,448,052 |
Public Bank Bhd | 363,100 | | 2,241,482 |
TOTAL MALAYSIA | | 3,689,534 |
Mexico - 5.7% |
Alfa SA de CV Series A | 828,000 | | 2,180,321 |
Banregio Grupo Financiero S.A.B. de CV | 263,666 | | 1,523,822 |
El Puerto de Liverpool S.A.B. de CV Class C | 124,534 | | 1,282,488 |
Fomento Economico Mexicano S.A.B. de CV unit | 383,000 | | 3,495,165 |
Gruma S.A.B. de CV Series B (a) | 202,000 | | 1,784,576 |
Grupo Aeroportuario del Pacifico SA de CV Series B | 307,921 | | 1,851,845 |
Grupo Aeroportuario del Sureste SA de CV Series B | 151,700 | | 1,856,195 |
Grupo Aeroportuario Norte S.A.B. de CV | 327,700 | | 1,204,069 |
Grupo Financiero Banorte S.A.B. de CV Series O | 500,300 | | 3,316,659 |
Common Stocks - continued |
| Shares | | Value |
Mexico - continued |
Grupo Televisa SA de CV | 541,300 | | $ 3,550,810 |
Megacable Holdings S.A.B. de CV unit | 370,284 | | 1,468,654 |
TOTAL MEXICO | | 23,514,604 |
Netherlands - 0.4% |
Yandex NV (a) | 57,093 | | 1,512,965 |
Nigeria - 1.2% |
Dangote Cement PLC | 1,017,266 | | 1,431,138 |
Guaranty Trust Bank PLC GDR (Reg. S) | 223,954 | | 1,881,214 |
Nigerian Breweries PLC | 1,625,358 | | 1,517,608 |
TOTAL NIGERIA | | 4,829,960 |
Panama - 0.4% |
Copa Holdings SA Class A | 11,752 | | 1,589,811 |
Philippines - 4.2% |
Alliance Global Group, Inc. | 2,904,700 | | 2,029,869 |
Ayala Corp. | 126,530 | | 1,771,278 |
DMCI Holdings, Inc. | 1,193,040 | | 1,921,711 |
GT Capital Holdings, Inc. | 77,800 | | 1,513,238 |
International Container Terminal Services, Inc. | 361,940 | | 877,750 |
LT Group, Inc. | 4,229,300 | | 1,736,314 |
Metropolitan Bank & Trust Co. | 927,273 | | 1,761,975 |
Security Bank Corp. | 667,910 | | 1,799,574 |
SM Investments Corp. | 120,796 | | 1,964,713 |
SM Prime Holdings, Inc. | 5,381,200 | | 1,970,189 |
TOTAL PHILIPPINES | | 17,346,611 |
Russia - 2.4% |
Magnit OJSC GDR (Reg. S) | 64,866 | | 3,051,945 |
NOVATEK OAO GDR (Reg. S) | 28,586 | | 2,952,934 |
Sberbank (Savings Bank of the Russian Federation) | 1,849,800 | | 3,764,505 |
TOTAL RUSSIA | | 9,769,384 |
South Africa - 7.6% |
Aspen Pharmacare Holdings Ltd. | 105,793 | | 2,815,348 |
Bidvest Group Ltd. | 94,026 | | 2,578,442 |
Clicks Group Ltd. | 275,260 | | 1,678,431 |
Discovery Holdings Ltd. | 240,489 | | 2,084,749 |
Life Healthcare Group Holdings Ltd. | 567,793 | | 2,254,333 |
Mr Price Group Ltd. | 139,500 | | 2,099,030 |
MTN Group Ltd. | 228,400 | | 4,576,684 |
Nampak Ltd. | 551,543 | | 2,055,082 |
Common Stocks - continued |
| Shares | | Value |
South Africa - continued |
Naspers Ltd. Class N | 62,500 | | $ 5,893,256 |
Remgro Ltd. | 126,100 | | 2,536,863 |
Shoprite Holdings Ltd. | 151,815 | | 2,535,277 |
TOTAL SOUTH AFRICA | | 31,107,495 |
Sweden - 0.7% |
Atlas Copco AB (A Shares) | 54,300 | | 1,571,662 |
Investment AB Kinnevik (B Shares) | 36,500 | | 1,282,681 |
TOTAL SWEDEN | | 2,854,343 |
Switzerland - 1.4% |
Compagnie Financiere Richemont SA Series A | 15,769 | | 1,600,013 |
Dufry AG (a) | 7,560 | | 1,248,976 |
SGS SA (Reg.) | 600 | | 1,496,421 |
Swatch Group AG (Bearer) | 2,390 | | 1,532,956 |
TOTAL SWITZERLAND | | 5,878,366 |
Taiwan - 5.4% |
Delta Electronics, Inc. | 390,000 | | 2,391,805 |
ECLAT Textile Co. Ltd. | 127,000 | | 1,389,336 |
Giant Manufacturing Co. Ltd. | 211,000 | | 1,650,760 |
HIWIN Technologies Corp. | 151,000 | | 1,436,641 |
Merida Industry Co. Ltd. | 249,000 | | 1,667,402 |
St.Shine Optical Co. Ltd. | 71,000 | | 1,504,003 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,115,000 | | 12,253,136 |
TOTAL TAIWAN | | 22,293,083 |
Thailand - 2.5% |
Airports of Thailand PCL (For. Reg.) | 324,600 | | 1,956,026 |
Bangkok Dusit Medical Service PCL (For. Reg.) | 3,490,000 | | 1,596,168 |
Central Pattana PCL (For. Reg.) | 1,248,700 | | 1,746,096 |
Kasikornbank PCL (For. Reg.) | 526,200 | | 3,195,250 |
Minor International PCL (For. Reg.) | 2,211,000 | | 1,680,797 |
TOTAL THAILAND | | 10,174,337 |
Togo - 0.1% |
Ecobank Transnational, Inc. | 4,322,471 | | 363,233 |
Turkey - 2.0% |
Anadolu Hayat Sigorta A/S | 304,037 | | 636,425 |
Coca-Cola Icecek Sanayi A/S | 75,050 | | 1,757,582 |
Enka Insaat ve Sanayi A/S | 634,888 | | 1,924,313 |
Common Stocks - continued |
| Shares | | Value |
Turkey - continued |
TAV Havalimanlari Holding A/S | 245,000 | | $ 1,960,882 |
Tofas Turk Otomobil Fabrikasi A/S | 304,538 | | 1,860,501 |
TOTAL TURKEY | | 8,139,703 |
United Arab Emirates - 0.4% |
First Gulf Bank PJSC | 319,671 | | 1,510,037 |
United Kingdom - 4.1% |
Aberdeen Asset Management PLC | 201,900 | | 1,488,999 |
Alabama Noor Hospitals Group PLC | 84,104 | | 1,417,172 |
British American Tobacco PLC (United Kingdom) | 29,600 | | 1,709,252 |
Burberry Group PLC | 60,668 | | 1,521,113 |
Diageo PLC | 49,239 | | 1,508,674 |
Intertek Group PLC | 31,100 | | 1,525,919 |
Johnson Matthey PLC | 25,882 | | 1,430,274 |
Meggitt PLC | 169,600 | | 1,365,043 |
Mondi PLC | 95,988 | | 1,592,300 |
Prudential PLC | 70,417 | | 1,618,826 |
Rolls-Royce Group PLC | 93,265 | | 1,653,421 |
TOTAL UNITED KINGDOM | | 16,830,993 |
United States of America - 3.6% |
Colgate-Palmolive Co. | 26,272 | | 1,768,106 |
FMC Corp. | 21,537 | | 1,658,349 |
Google, Inc. Class C (a) | 2,600 | | 1,369,316 |
Kansas City Southern | 16,620 | | 1,676,626 |
MasterCard, Inc. Class A | 22,900 | | 1,684,295 |
Mead Johnson Nutrition Co. Class A | 20,030 | | 1,767,848 |
Philip Morris International, Inc. | 19,053 | | 1,627,698 |
Visa, Inc. Class A | 7,900 | | 1,600,619 |
Yahoo!, Inc. (a) | 48,800 | | 1,754,360 |
TOTAL UNITED STATES OF AMERICA | | 14,907,217 |
TOTAL COMMON STOCKS (Cost $353,915,599) | 396,009,345
|
Nonconvertible Preferred Stocks - 3.2% |
| Shares | | Value |
Brazil - 2.8% |
Ambev SA sponsored ADR | 729,180 | | $ 5,286,555 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR | 2,939 | | 139,779 |
Itau Unibanco Holding SA sponsored ADR | 372,255 | | 6,090,092 |
TOTAL BRAZIL | | 11,516,426 |
Colombia - 0.4% |
Grupo Aval Acciones y Valores SA | 2,232,243 | | 1,510,005 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC (C Shares) | 13,033,510 | | 22,006 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $13,632,771) | 13,048,437
|
Money Market Funds - 1.9% |
| | | |
Fidelity Cash Central Fund, 0.11% (b) | 3,492,667 | | 3,492,667 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 4,184,995 | | 4,184,995 |
TOTAL MONEY MARKET FUNDS (Cost $7,677,662) | 7,677,662
|
TOTAL INVESTMENT PORTFOLIO - 101.4% (Cost $375,226,032) | 416,735,444 |
NET OTHER ASSETS (LIABILITIES) - (1.4)% | (5,645,150) |
NET ASSETS - 100% | $ 411,090,294 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,733,446 or 0.4% 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 | $ 1,219 |
Fidelity Securities Lending Cash Central Fund | 20,057 |
Total | $ 21,276 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 86,460,106 | $ 80,824,718 | $ 5,635,388 | $ - |
Consumer Staples | 42,764,486 | 39,546,560 | 3,217,926 | - |
Energy | 5,553,911 | 5,553,911 | - | - |
Financials | 86,750,803 | 79,860,978 | 6,889,825 | - |
Health Care | 24,645,248 | 22,957,755 | 1,687,493 | - |
Industrials | 61,631,373 | 61,631,373 | - | - |
Information Technology | 74,531,711 | 62,278,575 | 12,253,136 | - |
Materials | 14,880,683 | 13,559,746 | 1,320,937 | - |
Telecommunication Services | 9,560,432 | 9,560,432 | - | - |
Utilities | 2,279,029 | 2,279,029 | - | - |
Money Market Funds | 7,677,662 | 7,677,662 | - | - |
Total Investments in Securities: | $ 416,735,444 | $ 385,730,739 | $ 31,004,705 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 6,132,566 |
Level 2 to Level 1 | $ 1,545,043 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $4,032,182) - See accompanying schedule: Unaffiliated issuers (cost $367,548,370) | $ 409,057,782 | |
Fidelity Central Funds (cost $7,677,662) | 7,677,662 | |
Total Investments (cost $375,226,032) | | $ 416,735,444 |
Foreign currency held at value (cost $30) | | 278 |
Receivable for investments sold | | 5,155,834 |
Receivable for fund shares sold | | 313,217 |
Dividends receivable | | 912,018 |
Distributions receivable from Fidelity Central Funds | | 2,829 |
Prepaid expenses | | 247 |
Other receivables | | 28,332 |
Total assets | | 423,148,199 |
| | |
Liabilities | | |
Payable for investments purchased | $ 6,247,494 | |
Payable for fund shares redeemed | 439,236 | |
Accrued management fee | 276,196 | |
Distribution and service plan fees payable | 105,541 | |
Other affiliated payables | 105,887 | |
Other payables and accrued expenses | 698,556 | |
Collateral on securities loaned, at value | 4,184,995 | |
Total liabilities | | 12,057,905 |
| | |
Net Assets | | $ 411,090,294 |
Net Assets consist of: | | |
Paid in capital | | $ 427,285,429 |
Undistributed net investment income | | 122,583 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (57,251,298) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 40,933,580 |
Net Assets | | $ 411,090,294 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($135,208,177 ÷ 6,081,368 shares) | | $ 22.23 |
| | |
Maximum offering price per share (100/94.25 of $22.23) | | $ 23.59 |
Class T: Net Asset Value and redemption price per share ($50,908,125 ÷ 2,294,687 shares) | | $ 22.19 |
| | |
Maximum offering price per share (100/96.50 of $22.19) | | $ 22.99 |
Class B: Net Asset Value and offering price per share ($8,785,907 ÷ 404,573 shares)A | | $ 21.72 |
| | |
Class C: Net Asset Value and offering price per share ($57,425,146 ÷ 2,650,280 shares)A | | $ 21.67 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($158,058,159 ÷ 7,085,176 shares) | | $ 22.31 |
| | |
Class Z: Net Asset Value, offering price and redemption price per share ($704,780 ÷ 31,615 shares) | | $ 22.29 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,640,420 |
Interest | | 2 |
Income from Fidelity Central Funds | | 21,276 |
Income before foreign taxes withheld | | 3,661,698 |
Less foreign taxes withheld | | (326,935) |
Total income | | 3,334,763 |
| | |
Expenses | | |
Management fee | $ 1,624,327 | |
Transfer agent fees | 544,135 | |
Distribution and service plan fees | 644,396 | |
Accounting and security lending fees | 105,664 | |
Custodian fees and expenses | 154,458 | |
Independent trustees' compensation | 804 | |
Registration fees | 64,934 | |
Audit | 54,726 | |
Legal | 960 | |
Miscellaneous | 21,269 | |
Total expenses | | 3,215,673 |
Net investment income (loss) | | 119,090 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (4,328,391) | |
Foreign currency transactions | (179,979) | |
Total net realized gain (loss) | | (4,508,370) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $341,639) | (2,480,428) | |
Assets and liabilities in foreign currencies | 24,923 | |
Total change in net unrealized appreciation (depreciation) | | (2,455,505) |
Net gain (loss) | | (6,963,875) |
Net increase (decrease) in net assets resulting from operations | | $ (6,844,785) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 119,090 | $ 1,405,290 |
Net realized gain (loss) | (4,508,370) | 41,473,017 |
Change in net unrealized appreciation (depreciation) | (2,455,505) | 2,826,987 |
Net increase (decrease) in net assets resulting from operations | (6,844,785) | 45,705,294 |
Distributions to shareholders from net investment income | (1,113,220) | (3,939,467) |
Distributions to shareholders from net realized gain | (185,954) | - |
Total distributions | (1,299,174) | (3,939,467) |
Share transactions - net increase (decrease) | (7,559,605) | (61,785,803) |
Redemption fees | 13,497 | 43,406 |
Total increase (decrease) in net assets | (15,690,067) | (19,976,570) |
| | |
Net Assets | | |
Beginning of period | 426,780,361 | 446,756,931 |
End of period (including undistributed net investment income of $122,583 and undistributed net investment income of $1,116,713, respectively) | $ 411,090,294 | $ 426,780,361 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.62 | $ 20.51 | $ 20.50 | $ 23.71 | $ 19.20 | $ 12.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | .08 | .22 | .21 | .12 | .10 |
Net realized and unrealized gain (loss) | (.34) | 2.23 | (.06) | (3.19) | 4.59 | 6.64 |
Total from investment operations | (.33) | 2.31 | .16 | (2.98) | 4.71 | 6.74 |
Distributions from net investment income | (.05) | (.20) | (.15) | (.11) | (.07) | (.14) |
Distributions from net realized gain | (.01) | - | - | (.13) | (.13) | - |
Total distributions | (.06) | (.20) | (.15) | (.24) | (.20) | (.14) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | .01 |
Net asset value, end of period | $ 22.23 | $ 22.62 | $ 20.51 | $ 20.50 | $ 23.71 | $ 19.20 |
Total Return B,C,D | (1.45)% | 11.34% | .80% | (12.69)% | 24.69% | 54.54% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.55% A | 1.56% | 1.54% | 1.54% | 1.56% | 1.60% |
Expenses net of fee waivers, if any | 1.55% A | 1.55% | 1.54% | 1.54% | 1.56% | 1.60% |
Expenses net of all reductions | 1.55% A | 1.50% | 1.48% | 1.47% | 1.50% | 1.53% |
Net investment income (loss) | .09% A | .38% | 1.07% | .92% | .59% | .70% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 135,208 | $ 146,378 | $ 160,464 | $ 202,477 | $ 286,970 | $ 216,187 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.55 | $ 20.44 | $ 20.43 | $ 23.61 | $ 19.14 | $ 12.49 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .03 | .16 | .15 | .07 | .07 |
Net realized and unrealized gain (loss) | (.33) | 2.22 | (.06) | (3.18) | 4.57 | 6.64 |
Total from investment operations | (.35) | 2.25 | .10 | (3.03) | 4.64 | 6.71 |
Distributions from net investment income | - I | (.14) | (.09) | (.04) | (.04) | (.07) |
Distributions from net realized gain | (.01) | - | - | (.13) | (.13) | - |
Total distributions | (.01) | (.14) | (.09) | (.16) J | (.17) | (.07) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | .01 |
Net asset value, end of period | $ 22.19 | $ 22.55 | $ 20.44 | $ 20.43 | $ 23.61 | $ 19.14 |
Total Return B,C,D | (1.54)% | 11.06% | .49% | (12.89)% | 24.38% | 54.17% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.81% A | 1.81% | 1.80% | 1.79% | 1.81% | 1.87% |
Expenses net of fee waivers, if any | 1.81% A | 1.81% | 1.80% | 1.79% | 1.81% | 1.85% |
Expenses net of all reductions | 1.81% A | 1.76% | 1.73% | 1.73% | 1.76% | 1.78% |
Net investment income (loss) | (.16)% A | .13% | .81% | .66% | .33% | .44% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 50,908 | $ 55,797 | $ 58,919 | $ 73,146 | $ 104,417 | $ 86,959 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.11 | $ 20.03 | $ 20.03 | $ 23.14 | $ 18.80 | $ 12.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.08) | .06 | .04 | (.03) | (.01) |
Net realized and unrealized gain (loss) | (.32) | 2.18 | (.06) | (3.13) | 4.49 | 6.55 |
Total from investment operations | (.39) | 2.10 | - | (3.09) | 4.46 | 6.54 |
Distributions from net investment income | - | (.02) | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.03) | (.12) | - |
Total distributions | - | (.02) | - | (.03) J | (.12) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | - I |
Net asset value, end of period | $ 21.72 | $ 22.11 | $ 20.03 | $ 20.03 | $ 23.14 | $ 18.80 |
Total Return B,C,D | (1.76)% | 10.50% | -% | (13.33)% | 23.77% | 53.34% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.30% A | 2.31% | 2.29% | 2.29% | 2.32% | 2.36% |
Expenses net of fee waivers, if any | 2.30% A | 2.31% | 2.29% | 2.29% | 2.32% | 2.35% |
Expenses net of all reductions | 2.30% A | 2.26% | 2.23% | 2.22% | 2.26% | 2.28% |
Net investment income (loss) | (.66)% A | (.37)% | .32% | .16% | (.17)% | (.05)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 8,786 | $ 11,391 | $ 15,994 | $ 21,304 | $ 31,159 | $ 27,580 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.06 | $ 20.00 | $ 20.00 | $ 23.13 | $ 18.80 | $ 12.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.08) | .06 | .04 | (.03) | (.01) |
Net realized and unrealized gain (loss) | (.32) | 2.18 | (.06) | (3.12) | 4.49 | 6.54 |
Total from investment operations | (.39) | 2.10 | - | (3.08) | 4.46 | 6.53 |
Distributions from net investment income | - | (.04) | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.05) | (.13) | - |
Total distributions | - | (.04) | - | (.06) | (.13) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | - I | .01 |
Net asset value, end of period | $ 21.67 | $ 22.06 | $ 20.00 | $ 20.00 | $ 23.13 | $ 18.80 |
Total Return B,C,D | (1.77)% | 10.49% | -% | (13.33)% | 23.80% | 53.34% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.30% A | 2.31% | 2.29% | 2.28% | 2.30% | 2.34% |
Expenses net of fee waivers, if any | 2.30% A | 2.30% | 2.29% | 2.28% | 2.30% | 2.34% |
Expenses net of all reductions | 2.30% A | 2.25% | 2.23% | 2.22% | 2.24% | 2.28% |
Net investment income (loss) | (.66)% A | (.37)% | .32% | .17% | (.15)% | (.05)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 57,425 | $ 62,532 | $ 65,598 | $ 80,855 | $ 106,711 | $ 83,939 |
Portfolio turnover rate G | 100% A | 121% | 177% | 122% | 86% | 85% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.73 | $ 20.61 | $ 20.63 | $ 23.87 | $ 19.29 | $ 12.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .15 | .28 | .29 | .20 | .15 |
Net realized and unrealized gain (loss) | (.34) | 2.25 | (.06) | (3.21) | 4.62 | 6.65 |
Total from investment operations | (.29) | 2.40 | .22 | (2.92) | 4.82 | 6.80 |
Distributions from net investment income | (.12) | (.28) | (.24) | (.20) | (.11) | (.23) |
Distributions from net realized gain | (.01) | - | - | (.13) | (.13) | - |
Total distributions | (.13) | (.28) | (.24) | (.33) | (.24) | (.23) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | - H | .01 |
Net asset value, end of period | $ 22.31 | $ 22.73 | $ 20.61 | $ 20.63 | $ 23.87 | $ 19.29 |
Total Return B,C | (1.26)% | 11.73% | 1.08% | (12.41)% | 25.15% | 54.97% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.21% A | 1.23% | 1.22% | 1.21% | 1.22% | 1.30% |
Expenses net of fee waivers, if any | 1.21% A | 1.22% | 1.22% | 1.21% | 1.22% | 1.30% |
Expenses net of all reductions | 1.21% A | 1.18% | 1.16% | 1.14% | 1.17% | 1.23% |
Net investment income (loss) | .44% A | .71% | 1.39% | 1.25% | .93% | .99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 158,058 | $ 150,576 | $ 145,782 | $ 138,312 | $ 184,789 | $ 106,713 |
Portfolio turnover rate F | 100% A | 121% | 177% | 122% | 86% | 85% |
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
Financial Highlights - Class Z
| Six months ended April 30, 2014 | Year ended October 31, |
| (Unaudited) | 2013 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 22.73 | $ 21.33 |
Income from Investment Operations | | |
Net investment income (loss) D | .06 | .03 |
Net realized and unrealized gain (loss) | (.33) | 1.37 |
Total from investment operations | (.27) | 1.40 |
Distributions from net investment income | (.16) | - |
Distributions from net realized gain | (.01) | - |
Total distributions | (.17) | - |
Redemption fees added to paid in capital D,I | - | - |
Net asset value, end of period | $ 22.29 | $ 22.73 |
Total Return B,C | (1.17)% | 6.56% |
Ratios to Average Net Assets E,H | | |
Expenses before reductions | 1.04% A | 1.05% A |
Expenses net of fee waivers, if any | 1.04% A | 1.05% A |
Expenses net of all reductions | 1.04% A | 1.00% A |
Net investment income (loss) | .60% A | .62% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 705 | $ 107 |
Portfolio turnover rate F | 100% A | 121% |
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 For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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, 2014 (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, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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 as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 54,183,084 |
Gross unrealized depreciation | (14,121,981) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 40,061,103 |
| |
Tax cost | $ 376,674,341 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (51,004,288) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $203,119,094 and $213,770,576, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .80% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 171,654 | $ 4,140 |
Class T | .25% | .25% | 128,870 | 1,530 |
Class B | .75% | .25% | 49,655 | 37,453 |
Class C | .75% | .25% | 294,217 | 31,800 |
| | | $ 644,396 | $ 74,923 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
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 | $ 42,316 |
Class T | 5,481 |
Class B* | 6,588 |
Class C* | 2,973 |
| $ 57,358 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 207,582 | .30 |
Class T | 79,523 | .31 |
Class B | 15,005 | .30 |
Class C | 89,034 | .30 |
Institutional Class | 152,845 | .21 |
Class Z | 146 | .05 |
| $ 544,135 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $441 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $379 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $20,057. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 314,530 | $ 1,535,570 |
Class T | 2,453 | 390,398 |
Class B | - | 16,014 |
Class C | - | 114,064 |
Institutional Class | 791,098 | 1,883,421 |
Class Z | 5,139 | - |
Total | $ 1,113,220 | $ 3,939,467 |
From net realized gain | | |
Class A | $ 77,028 | $ - |
Class T | 29,431 | - |
Institutional Class | 79,110 | - |
Class Z | 385 | - |
Total | $ 185,954 | $ - |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013A | Six months ended April 30, 2014 | Year ended October 31, 2013A |
Class A | | | | |
Shares sold | 616,672 | 1,531,175 | $ 13,492,549 | $ 33,017,349 |
Reinvestment of distributions | 16,163 | 66,573 | 356,881 | 1,392,653 |
Shares redeemed | (1,023,807) | (2,949,139) | (22,219,541) | (63,054,707) |
Net increase (decrease) | (390,972) | (1,351,391) | $ (8,370,111) | $ (28,644,705) |
Class T | | | | |
Shares sold | 172,791 | 561,309 | $ 3,767,248 | $ 12,048,127 |
Reinvestment of distributions | 1,397 | 17,796 | 30,812 | 372,006 |
Shares redeemed | (354,184) | (986,849) | (7,664,029) | (20,912,996) |
Net increase (decrease) | (179,996) | (407,744) | $ (3,865,969) | $ (8,492,863) |
Class B | | | | |
Shares sold | 6,662 | 34,695 | $ 141,885 | $ 732,488 |
Reinvestment of distributions | - | 627 | - | 12,965 |
Shares redeemed | (117,224) | (318,597) | (2,496,551) | (6,698,614) |
Net increase (decrease) | (110,562) | (283,275) | $ (2,354,666) | $ (5,953,161) |
Semiannual Report
9. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013A | Six months ended April 30, 2014 | Year ended October 31, 2013A |
Class C | | | | |
Shares sold | 263,234 | 507,210 | $ 5,623,441 | $ 10,683,514 |
Reinvestment of distributions | - | 4,797 | - | 98,768 |
Shares redeemed | (447,291) | (957,148) | (9,390,914) | (19,925,235) |
Net increase (decrease) | (184,057) | (445,141) | $ (3,767,473) | $ (9,142,953) |
Institutional Class | | | | |
Shares sold | 819,963 | 1,298,034 | $ 18,062,614 | $ 27,937,972 |
Reinvestment of distributions | 36,756 | 84,781 | 813,036 | 1,776,730 |
Shares redeemed | (397,421) | (1,828,795) | (8,679,540) | (39,366,823) |
Net increase (decrease) | 459,298 | (445,980) | $ 10,196,110 | $ (9,652,121) |
Class Z | | | | |
Shares sold | 30,873 | 4,688 | $ 687,216 | $ 100,000 |
Reinvestment of distributions | 250 | - | 5,524 | - |
Shares redeemed | (4,196) | - | (90,236) | - |
Net increase (decrease) | 26,927 | 4,688 | $ 602,504 | $ 100,000 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
FAEMZ-USAN-0614
1.9585023.100
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Global Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio B | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,094.90 | $ 7.53 |
Hypothetical A | | $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,094.20 | $ 8.83 |
Hypothetical A | | $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,090.90 | $ 11.41 |
Hypothetical A | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,090.30 | $ 11.40 |
Hypothetical A | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,095.70 | $ 6.24 |
Hypothetical A | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Abraxas Petroleum Corp. (United States of America, Oil, Gas & Consumable Fuels) | 0.9 | 0.0 |
Super Micro Computer, Inc. (United States of America, Technology Hardware, Storage & Peripherals) | 0.9 | 0.0 |
Google, Inc. Class C (United States of America, Internet Software & Services) | 0.8 | 1.1 |
Brinker International, Inc. (United States of America, Hotels, Restaurants & Leisure) | 0.8 | 0.4 |
Tenneco, Inc. (United States of America, Auto Components) | 0.8 | 0.5 |
| 4.2 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Consumer Discretionary | 20.4 | 26.9 |
Information Technology | 20.1 | 20.4 |
Industrials | 16.9 | 14.6 |
Financials | 10.0 | 13.1 |
Energy | 9.8 | 6.9 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United States of America | 39.3 | 38.1 |
Canada | 8.9 | 6.9 |
Germany | 4.3 | 4.1 |
Korea (South) | 4.0 | 3.1 |
India | 3.2 | 2.6 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 96.7% | | | Stocks 99.5% | |
| Short-Term Investments and Net Other Assets (Liabilities) 3.3% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.5% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.7% |
| Shares | | Value |
Australia - 0.8% |
Ardent Leisure Group unit | 123,979 | | $ 307,521 |
Aristocrat Leisure Ltd. | 52,527 | | 245,452 |
Ausdrill Ltd. | 292,203 | | 252,455 |
Imdex Ltd. (a) | 74,343 | | 50,763 |
TOTAL AUSTRALIA | | 856,191 |
Bailiwick of Jersey - 0.9% |
Delphi Automotive PLC | 3,200 | | 213,888 |
Regus PLC | 117,700 | | 415,335 |
Shire PLC | 4,800 | | 274,522 |
TOTAL BAILIWICK OF JERSEY | | 903,745 |
Belgium - 1.3% |
Ackermans & Van Haaren SA | 4,100 | | 530,134 |
Anheuser-Busch InBev SA NV | 2,400 | | 261,590 |
Compagnie D'entreprises CFE SA | 2,617 | | 288,350 |
KBC Ancora (a) | 1,510 | | 55,347 |
Melexis NV | 7,200 | | 289,878 |
TOTAL BELGIUM | | 1,425,299 |
Bermuda - 1.8% |
China Gas Holdings Ltd. | 138,000 | | 224,276 |
China Singyes Solar Tech Holdings Ltd. | 78,000 | | 114,088 |
Freescale Semiconductor, Inc. (a) | 29,700 | | 652,509 |
Future Bright Holdings Ltd. | 642,000 | | 307,215 |
GasLog Ltd. | 4,900 | | 131,222 |
Nam Cheong Ltd. | 978,000 | | 276,932 |
Silverlake Axis Ltd. Class A | 332,000 | | 227,742 |
TOTAL BERMUDA | | 1,933,984 |
Brazil - 1.4% |
BB Seguridade Participacoes SA | 13,500 | | 158,204 |
CVC Brasil Operadora e Agencia de Viagens SA | 19,600 | | 143,017 |
Direcional Engenharia SA | 26,700 | | 130,282 |
Embraer SA | 13,700 | | 118,460 |
GAEC Educacao SA (a) | 13,500 | | 152,270 |
Kroton Educacional SA | 10,900 | | 233,472 |
Linx SA | 3,300 | | 72,016 |
Qualicorp SA (a) | 13,100 | | 127,313 |
Smiles SA | 10,200 | | 193,273 |
Weg SA | 16,380 | | 197,684 |
TOTAL BRAZIL | | 1,525,991 |
Common Stocks - continued |
| Shares | | Value |
British Virgin Islands - 0.4% |
Amira Nature Foods Ltd. (a)(d) | 17,000 | | $ 264,520 |
Epic Gas Ltd. (a) | 25,700 | | 194,556 |
TOTAL BRITISH VIRGIN ISLANDS | | 459,076 |
Canada - 8.9% |
AltaGas Ltd. | 4,300 | | 183,212 |
ATS Automation Tooling System, Inc. (a) | 19,300 | | 250,043 |
B2Gold Corp. (a) | 72,000 | | 206,925 |
Bellatrix Exploration Ltd. (a) | 23,100 | | 224,667 |
Black Diamond Group Ltd. | 6,500 | | 204,361 |
Canadian Energy Services & Technology Corp. | 3,900 | | 115,002 |
Canadian Natural Resources Ltd. | 15,900 | | 647,866 |
Canadian Pacific Railway Ltd. | 400 | | 62,457 |
Canam Group, Inc. Class A (sub. vtg.) | 16,400 | | 209,779 |
Canyon Services Group, Inc. (d) | 17,500 | | 240,774 |
CCL Industries, Inc. Class B | 3,000 | | 272,780 |
Constellation Software, Inc. | 1,500 | | 332,216 |
Descartes Systems Group, Inc. (a) | 6,650 | | 90,099 |
FirstService Corp. (sub. vtg.) | 5,500 | | 271,475 |
Gibson Energy, Inc. | 4,900 | | 130,810 |
Gildan Activewear, Inc. | 2,400 | | 122,688 |
Imperial Oil Ltd. | 11,300 | | 551,778 |
Inter Pipeline Ltd. | 9,300 | | 252,853 |
International Forest Products Ltd. (Interfor) Class A (sub. vtg.) (a) | 17,600 | | 266,878 |
Linamar Corp. | 6,200 | | 310,382 |
Magna International, Inc. Class A (sub. vtg.) | 3,100 | | 303,707 |
MDC Partners, Inc. Class A | 3,550 | | 86,691 |
Methanex Corp. | 7,200 | | 445,972 |
New Gold, Inc. (a) | 25,300 | | 127,879 |
Pason Systems, Inc. | 19,600 | | 544,340 |
PHX Energy Services Corp. | 21,500 | | 296,396 |
Raging River Exploration, Inc. (a) | 25,000 | | 220,109 |
RMP Energy, Inc. (a) | 22,200 | | 169,126 |
Saputo, Inc. | 5,000 | | 267,369 |
Stantec, Inc. | 4,000 | | 237,069 |
Stella-Jones, Inc. | 9,400 | | 256,944 |
Suncor Energy, Inc. | 12,500 | | 482,186 |
Tourmaline Oil Corp. (a) | 2,300 | | 119,087 |
Vermilion Energy, Inc. | 3,600 | | 239,540 |
Xtreme Drilling & Coil Services Corp. (a) | 152,500 | | 697,071 |
TOTAL CANADA | | 9,440,531 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - 1.2% |
Airtac International Group | 14,000 | | $ 150,603 |
China Cord Blood Corp. (a) | 31,800 | | 137,058 |
Kingsoft Corp. Ltd. | 47,000 | | 144,584 |
SouFun Holdings Ltd. ADR | 10,000 | | 117,700 |
Springland International Holdings Ltd. | 232,000 | | 91,268 |
Tencent Holdings Ltd. | 2,330 | | 145,216 |
Towngas China Co. Ltd. | 209,000 | | 238,304 |
Xinyi Solar Holdings Ltd. | 750,000 | | 201,214 |
TOTAL CAYMAN ISLANDS | | 1,225,947 |
China - 0.1% |
Harbin Power Equipment Co. Ltd. (H Shares) | 226,000 | | 132,050 |
Denmark - 2.4% |
Coloplast A/S Series B | 2,700 | | 226,539 |
GN Store Nordic A/S | 8,800 | | 212,312 |
Pandora A/S | 11,800 | | 793,758 |
Royal Unibrew A/S | 1,800 | | 280,037 |
SimCorp A/S | 8,100 | | 310,149 |
Spar Nord Bank A/S | 57,300 | | 644,359 |
Vestas Wind Systems A/S (a) | 2,900 | | 128,721 |
TOTAL DENMARK | | 2,595,875 |
Faroe Islands - 0.2% |
Bakkafrost | 13,600 | | 212,775 |
Finland - 0.2% |
Valmet Corp. (d) | 18,800 | | 218,047 |
France - 2.4% |
Altran Technologies SA | 25,600 | | 278,695 |
Bollore | 40 | | 25,488 |
Compagnie Plastic Omnium | 7,400 | | 251,527 |
Groupe Crit | 4,500 | | 297,170 |
Ipsos SA | 6,300 | | 244,204 |
Korian-Medica | 14,220 | | 534,237 |
Societe Generale Series A | 8,200 | | 509,657 |
Solocal Group SA (a)(d) | 96,500 | | 220,901 |
SR Teleperformance SA | 4,000 | | 229,135 |
TOTAL FRANCE | | 2,591,014 |
Germany - 4.3% |
Aareal Bank AG | 2,147 | | 97,327 |
Bechtle AG | 3,300 | | 293,054 |
Bertrandt AG | 1,700 | | 257,194 |
Common Stocks - continued |
| Shares | | Value |
Germany - continued |
CTS Eventim AG | 4,723 | | $ 300,758 |
Deutsche Annington Immobilien SE | 3,800 | | 109,656 |
Fresenius SE & Co. KGaA | 1,000 | | 151,984 |
FUCHS PETROLUB AG | 3,000 | | 275,986 |
GFT Technologies AG | 22,100 | | 263,434 |
Grenkeleasing AG | 2,400 | | 251,055 |
INDUS Holding AG | 5,828 | | 273,289 |
Infineon Technologies AG | 28,900 | | 335,951 |
Isra Vision AG | 2,200 | | 163,230 |
Jenoptik AG | 21,700 | | 361,416 |
Krones AG | 2,700 | | 258,014 |
MLP AG | 12,800 | | 87,015 |
Nemetschek AG | 3,300 | | 286,828 |
Open Business Club AG | 1,300 | | 166,180 |
RIB Software AG | 1,600 | | 24,895 |
Sixt AG | 7,000 | | 282,846 |
Wacker Construction Equipment AG | 16,500 | | 313,267 |
TOTAL GERMANY | | 4,553,379 |
Hong Kong - 0.0% |
Galaxy Entertainment Group Ltd. | 5,000 | | 39,243 |
India - 3.2% |
AIA Engineering Ltd. | 8,419 | | 84,246 |
Alembic Pharmaceuticals Ltd. (a) | 18,500 | | 91,403 |
Arvind Mills Ltd. (a) | 47,937 | | 145,802 |
Ashok Leyland Ltd. | 309,166 | | 114,050 |
Aurobindo Pharma Ltd. | 8,688 | | 82,551 |
Balkrishna Industries Ltd. (a) | 9,283 | | 80,971 |
Bharat Heavy Electricals Ltd. | 67,972 | | 203,358 |
Britannia Industries Ltd. | 8,699 | | 124,619 |
Dabur India Ltd. | 36,117 | | 107,336 |
Divi's Laboratories Ltd. | 3,272 | | 74,931 |
HDFC Bank Ltd. | 10,985 | | 137,463 |
Housing Development Finance Corp. Ltd. | 5,511 | | 82,046 |
Ipca Laboratories Ltd. | 2,726 | | 38,785 |
Lupin Ltd. | 3,774 | | 64,398 |
Max India Ltd. | 10,923 | | 38,701 |
Motherson Sumi Systems Ltd. | 97,280 | | 409,265 |
Mundra Port and SEZ Ltd. | 84,019 | | 262,163 |
Persistent Systems Ltd. | 9,281 | | 155,006 |
Rallis India Ltd. | 47,101 | | 141,932 |
Shriram Transport Finance Co. Ltd. | 3,346 | | 40,763 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Supreme Industries Ltd. (a) | 17,083 | | $ 129,181 |
Tata Consultancy Services Ltd. | 4,988 | | 181,045 |
Tata Motors Ltd. | 19,422 | | 134,347 |
Tech Mahindra Ltd. (a) | 7,556 | | 229,524 |
Torrent Pharmaceuticals Ltd. | 7,127 | | 68,298 |
UPL Ltd. | 36,184 | | 160,838 |
Wipro Ltd. | 8,022 | | 69,525 |
TOTAL INDIA | | 3,452,547 |
Indonesia - 0.1% |
PT Kalbe Farma Tbk | 143,600 | | 19,190 |
PT Matahari Department Store Tbk | 100,300 | | 130,130 |
TOTAL INDONESIA | | 149,320 |
Ireland - 0.7% |
Accenture PLC Class A | 2,900 | | 232,638 |
Actavis PLC (a) | 800 | | 163,464 |
Greencore Group PLC | 2,200 | | 9,699 |
Jazz Pharmaceuticals PLC (a) | 2,800 | | 377,720 |
TOTAL IRELAND | | 783,521 |
Israel - 1.6% |
CaesarStone Sdot-Yam Ltd. | 4,400 | | 229,592 |
Delta Galil Industries Ltd. | 7,100 | | 217,278 |
Formula Systems (1985) Ltd. | 4,200 | | 126,953 |
Ituran Location & Control Ltd. | 5,500 | | 132,553 |
Sarine Technologies Ltd. | 85,000 | | 187,804 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 15,600 | | 762,216 |
TOTAL ISRAEL | | 1,656,396 |
Italy - 1.6% |
Banca IFIS SpA | 22,300 | | 480,775 |
Brembo SpA | 17,300 | | 639,631 |
De Longhi SpA | 12,600 | | 273,397 |
Reply SpA | 2,925 | | 263,770 |
TOTAL ITALY | | 1,657,573 |
Japan - 1.9% |
Iriso Electronics Co. Ltd. | 6,600 | | 331,824 |
Iwatsuka Confectionary Co. Ltd. | 1,300 | | 71,208 |
Japan Aviation Electronics Industry Ltd. | 17,000 | | 289,333 |
Koshidaka Holdings Co. Ltd. | 2,100 | | 62,239 |
Okabe Co. Ltd. | 19,300 | | 264,859 |
Common Stocks - continued |
| Shares | | Value |
Japan - continued |
Ryoyo Electro Corp. | 14,300 | | $ 171,485 |
San-Ai Oil Co. Ltd. | 27,000 | | 179,586 |
Sasebo Heavy Industries Co. Ltd. (a) | 100 | | 112 |
Trans Cosmos, Inc. | 12,400 | | 230,692 |
Yusen Logistics Co. Ltd. | 13,400 | | 154,270 |
Yushin Precision Equipment Co. Ltd. | 8,400 | | 241,397 |
TOTAL JAPAN | | 1,997,005 |
Kenya - 0.2% |
Safaricom Ltd. | 1,541,700 | | 232,114 |
Korea (South) - 4.0% |
AMOREPACIFIC Corp. | 101 | | 130,515 |
Chong Kun Dang Pharmaceutical Corp. | 1,505 | | 106,928 |
Cosmax, Inc. (a) | 1,634 | | 109,925 |
Coway Co. Ltd. | 5,767 | | 454,952 |
EO Technics Co. Ltd. | 2,655 | | 177,326 |
FINETEC Corp. | 23,944 | | 267,693 |
Grand Korea Leisure Co. Ltd. | 3,120 | | 130,013 |
Halla Visteon Climate Control Corp. | 3,370 | | 140,593 |
Hansae Co. Ltd. | 5,930 | | 123,123 |
Hanssem Co. Ltd. | 3,338 | | 272,701 |
I-Sens, Inc. (a) | 3,510 | | 175,993 |
Interojo Co. Ltd. | 7,335 | | 146,260 |
KONA@I Co. Ltd. | 3,238 | | 120,669 |
Korea Aerospace Industries Ltd. | 3,960 | | 126,301 |
Korea Kolmar Co. Ltd. New | 4,150 | | 136,378 |
LG Hausys Ltd. | 836 | | 147,277 |
Loen Entertainment, Inc. | 10,921 | | 266,392 |
Lumens Co. Ltd. (a) | 21,596 | | 289,521 |
Paradise Co. Ltd. | 2,515 | | 93,482 |
PSK, Inc. | 10,980 | | 145,606 |
Samsung Electronics Co. Ltd. | 99 | | 128,697 |
SK Hynix, Inc. (a) | 950 | | 36,920 |
Suheung Capsule Co. Ltd. | 3,120 | | 115,516 |
Suprema, Inc. (a) | 4,754 | | 117,573 |
Wonik IPS Co. Ltd. (a) | 26,364 | | 262,849 |
TOTAL KOREA (SOUTH) | | 4,223,203 |
Liberia - 0.3% |
Royal Caribbean Cruises Ltd. | 4,900 | | 260,337 |
Luxembourg - 0.1% |
Oriflame Cosmetics SA SDR (d) | 2,800 | | 71,397 |
Common Stocks - continued |
| Shares | | Value |
Malaysia - 1.0% |
Berjaya Auto Bhd | 199,600 | | $ 127,255 |
Cahya Mata Sarawak Bhd | 32,600 | | 95,327 |
Globetronics Technology Bhd | 160,200 | | 176,772 |
Inari Amertron Bhd | 201,000 | | 161,416 |
Matrix Concepts Holdings Bhd | 196,900 | | 246,842 |
Multi-Purpose Holdings Bhd (a) | 215,400 | | 128,745 |
TIME dotCom Bhd | 96,900 | | 118,508 |
TOTAL MALAYSIA | | 1,054,865 |
Mexico - 0.5% |
Grupo Financiero Interacciones SA de CV | 21,400 | | 129,207 |
Infraestructura Energetica Nova S.A.B. de CV | 19,900 | | 103,616 |
Megacable Holdings S.A.B. de CV unit | 69,500 | | 275,657 |
TOTAL MEXICO | | 508,480 |
Netherlands - 0.9% |
LyondellBasell Industries NV Class A | 4,800 | | 444,000 |
NXP Semiconductors NV (a) | 7,300 | | 435,226 |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 2,800 | | 120,067 |
TOTAL NETHERLANDS | | 999,293 |
New Zealand - 0.5% |
Fisher & Paykel Healthcare Corp. | 71,126 | | 250,848 |
Kathmandu Holdings Ltd. | 75,515 | | 237,119 |
TOTAL NEW ZEALAND | | 487,967 |
Nigeria - 0.1% |
Dangote Cement PLC | 81,755 | | 115,017 |
Norway - 1.1% |
Cermaq ASA | 24,900 | | 294,269 |
Salmar ASA (a) | 21,500 | | 311,054 |
SpareBank 1 SR-Bank ASA (primary capital certificate) (d) | 25,500 | | 246,665 |
Veidekke ASA | 30,400 | | 326,027 |
TOTAL NORWAY | | 1,178,015 |
Philippines - 0.2% |
Alliance Global Group, Inc. | 186,500 | | 130,330 |
Universal Robina Corp. | 11,780 | | 38,584 |
TOTAL PHILIPPINES | | 168,914 |
Common Stocks - continued |
| Shares | | Value |
Poland - 0.2% |
Bank Zachodni WBK SA | 700 | | $ 85,892 |
ING Bank Slaski SA | 2,800 | | 125,774 |
TOTAL POLAND | | 211,666 |
Portugal - 0.1% |
Mota Engil Sgps SA | 12,500 | | 95,502 |
Russia - 0.1% |
Vozrozhdenie Bank | 14,400 | | 147,254 |
Singapore - 0.4% |
OSIM International Ltd. | 114,000 | | 263,699 |
SIIC Environment Holdings Ltd. (a) | 1,448,000 | | 192,882 |
TOTAL SINGAPORE | | 456,581 |
South Africa - 1.5% |
Bidvest Group Ltd. | 4,984 | | 136,674 |
Clicks Group Ltd. | 20,984 | | 127,952 |
Clover Industries Ltd. | 66,700 | | 122,996 |
Coronation Fund Managers Ltd. | 31,000 | | 299,053 |
FirstRand Ltd. | 31,700 | | 116,489 |
Mr Price Group Ltd. | 8,600 | | 129,403 |
MTN Group Ltd. | 3,500 | | 70,133 |
Naspers Ltd. Class N | 1,240 | | 116,922 |
Rand Merchant Insurance Holdings Ltd. | 46,500 | | 132,598 |
Royal Bafokeng Holdings (Pty) Ltd. (a) | 20,100 | | 129,918 |
Steinhoff International Holdings Ltd. | 24,900 | | 129,251 |
Super Group Ltd. (a) | 42,500 | | 114,446 |
TOTAL SOUTH AFRICA | | 1,625,835 |
Spain - 0.9% |
Amadeus IT Holding SA Class A | 6,000 | | 249,348 |
Banco Santander SA | 602 | | 5,986 |
Banco Santander SA (Spain) | 26,200 | | 260,577 |
Grifols SA | 4,600 | | 245,700 |
Let's Gowex SA (d) | 6,700 | | 190,367 |
TOTAL SPAIN | | 951,978 |
Sweden - 1.6% |
AarhusKarlshamn AB | 2,000 | | 133,586 |
AF AB (B Shares) | 6,900 | | 249,377 |
Fagerhult AB | 10,316 | | 512,452 |
JM AB (B Shares) | 7,900 | | 267,294 |
Net Entertainment NE AB | 8,700 | | 209,398 |
Common Stocks - continued |
| Shares | | Value |
Sweden - continued |
Net Entertainment NE AB (a) | 8,700 | | $ 4,014 |
Nibe Industrier AB (B Shares) | 9,800 | | 275,061 |
TOTAL SWEDEN | | 1,651,182 |
Switzerland - 2.5% |
Autoneum Holding AG | 2,570 | | 543,435 |
Belimo Holding AG (Reg.) | 80 | | 225,065 |
Bossard Holding AG | 1,904 | | 261,770 |
Comet Holding AG | 486 | | 299,298 |
Komax Holding AG (Reg.) | 1,717 | | 265,715 |
Pentair Ltd. | 2,900 | | 215,441 |
Siegfried Holding AG | 1,387 | | 259,718 |
Sika AG (Bearer) | 8 | | 32,351 |
TE Connectivity Ltd. | 9,100 | | 536,718 |
TOTAL SWITZERLAND | | 2,639,511 |
Taiwan - 1.8% |
Advanced Semiconductor Engineering, Inc. | 93,000 | | 108,412 |
Advantech Co. Ltd. | 18,000 | | 116,358 |
Delta Electronics, Inc. | 20,000 | | 122,657 |
Everlight Electronics Co. Ltd. | 46,000 | | 107,659 |
Largan Precision Co. Ltd. | 3,000 | | 187,466 |
MediaTek, Inc. | 9,000 | | 140,823 |
San Shing Fastech Corp. | 43,000 | | 125,726 |
Ton Yi Industrial Corp. | 85,000 | | 90,451 |
Topoint Technology Co. Ltd. | 218,903 | | 156,745 |
Ttfb Co. Ltd. | 13,000 | | 127,994 |
Tung Thih Electronic Co. Ltd. | 45,000 | | 183,488 |
Vanguard International Semiconductor Corp. | 101,000 | | 137,946 |
Yungtay Engineering Co. Ltd. | 96,000 | | 283,237 |
TOTAL TAIWAN | | 1,888,962 |
Thailand - 0.6% |
Kce Electronics PCL | 146,300 | | 158,235 |
Major Cineplex Group PCL (For. Reg.) | 131,200 | | 77,844 |
MC Group PCL | 147,100 | | 79,096 |
Mega Lifesciences PCL | 180,500 | | 126,618 |
Thaicom PCL | 186,300 | | 233,163 |
TOTAL THAILAND | | 674,956 |
Turkey - 0.1% |
Soda Sanayii AS | 87,000 | | 128,550 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - 3.0% |
BG Group PLC | 27,400 | | $ 554,221 |
Clarkson PLC | 6,200 | | 279,079 |
Close Brothers Group PLC | 10,300 | | 242,772 |
Dialog Semiconductor PLC (a) | 13,100 | | 331,045 |
Hikma Pharmaceuticals PLC | 9,048 | | 237,094 |
Hilton Food Group PLC | 33,000 | | 297,251 |
John David Group PLC | 9,200 | | 272,454 |
Mears Group PLC | 16,000 | | 136,018 |
Persimmon PLC | 11,400 | | 252,531 |
Prudential PLC | 13,350 | | 306,905 |
SABMiller PLC | 5,000 | | 271,875 |
TOTAL UNITED KINGDOM | | 3,181,245 |
United States of America - 39.3% |
3M Co. | 1,400 | | 194,726 |
Abraxas Petroleum Corp. (a) | 176,800 | | 965,323 |
Aceto Corp. | 19,800 | | 433,224 |
Activision Blizzard, Inc. | 7,000 | | 140,070 |
Agilent Technologies, Inc. | 5,700 | | 308,028 |
Alliance Data Systems Corp. (a) | 2,070 | | 500,733 |
Altisource Residential Corp. Class B | 7,400 | | 208,088 |
American Express Co. | 4,500 | | 393,435 |
American Public Education, Inc. (a) | 4,400 | | 152,240 |
AMN Healthcare Services, Inc. (a) | 19,600 | | 244,608 |
AmSurg Corp. (a) | 10,900 | | 472,079 |
Archer Daniels Midland Co. | 3,200 | | 139,936 |
Argan, Inc. | 16,500 | | 441,705 |
Atlas Air Worldwide Holdings, Inc. (a) | 341 | | 11,932 |
Boise Cascade Co. (a) | 1,500 | | 37,530 |
Boston Scientific Corp. (a) | 33,200 | | 418,652 |
Brinker International, Inc. | 17,600 | | 864,864 |
Brocade Communications Systems, Inc. (a) | 26,800 | | 249,508 |
Capital One Financial Corp. | 6,100 | | 450,790 |
Carrizo Oil & Gas, Inc. (a) | 3,000 | | 165,060 |
Caterpillar, Inc. | 6,000 | | 632,400 |
CBIZ, Inc. (a) | 75,300 | | 645,321 |
CBRE Group, Inc. (a) | 28,700 | | 764,568 |
CDW Corp. | 23,400 | | 659,646 |
Century Casinos, Inc. (a) | 87,800 | | 522,410 |
Church & Dwight Co., Inc. | 1,900 | | 131,119 |
Columbus McKinnon Corp. (NY Shares) | 5,100 | | 135,099 |
Continental Resources, Inc. (a) | 3,900 | | 540,228 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Cummins, Inc. | 800 | | $ 120,680 |
CVS Caremark Corp. | 10,900 | | 792,648 |
Diamondback Energy, Inc. (a) | 2,000 | | 143,880 |
Electronic Arts, Inc. (a) | 7,400 | | 209,420 |
EMC Corp. | 26,700 | | 688,860 |
Enanta Pharmaceuticals, Inc. (a) | 3,200 | | 119,072 |
EnerSys | 4,300 | | 290,594 |
Enservco Corp. (a)(d) | 37,400 | | 73,304 |
Esterline Technologies Corp. (a) | 4,300 | | 468,786 |
F5 Networks, Inc. (a) | 5,200 | | 546,884 |
FedEx Corp. | 1,940 | | 264,325 |
FelCor Lodging Trust, Inc. | 33,900 | | 312,897 |
Ferro Corp. (a) | 29,500 | | 382,910 |
Fidelity National Information Services, Inc. | 14,900 | | 796,107 |
FleetCor Technologies, Inc. (a) | 450 | | 51,359 |
Foot Locker, Inc. | 4,500 | | 209,385 |
G-III Apparel Group Ltd. (a) | 9,100 | | 653,107 |
Generac Holdings, Inc. | 7,700 | | 453,376 |
Gentex Corp. | 1,000 | | 28,670 |
Global Payments, Inc. | 3,700 | | 247,271 |
Global Power Equipment Group, Inc. | 7,700 | | 134,981 |
Google, Inc.: | | | |
Class A (a) | 1,455 | | 778,250 |
Class C (a) | 1,655 | | 871,622 |
Grand Canyon Education, Inc. (a) | 2,800 | | 120,736 |
Greatbatch, Inc. (a) | 3,600 | | 165,708 |
Hanesbrands, Inc. | 7,200 | | 591,048 |
Harley-Davidson, Inc. | 2,800 | | 207,032 |
Harman International Industries, Inc. | 3,500 | | 383,635 |
HCA Holdings, Inc. (a) | 6,000 | | 312,000 |
Hologic, Inc. (a) | 9,800 | | 205,653 |
Houston Wire & Cable Co. | 10,423 | | 129,871 |
Howard Hughes Corp. (a) | 500 | | 71,380 |
Huron Consulting Group, Inc. (a) | 4,400 | | 313,280 |
Illinois Tool Works, Inc. | 1,600 | | 136,368 |
Inphi Corp. (a) | 6,500 | | 96,135 |
Jarden Corp. (a) | 1,050 | | 60,008 |
Johnson Controls, Inc. | 8,100 | | 365,634 |
Jones Lang LaSalle, Inc. | 5,000 | | 579,450 |
JTH Holding, Inc. Class A (a) | 15,300 | | 416,160 |
Juniper Networks, Inc. (a) | 16,400 | | 404,916 |
Kroger Co. | 14,500 | | 667,580 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Ladder Capital Corp. Class A | 7,100 | | $ 127,019 |
Las Vegas Sands Corp. | 5,800 | | 458,954 |
Manitowoc Co., Inc. | 13,600 | | 432,208 |
Manpower, Inc. | 2,300 | | 187,082 |
Matador Resources Co. (a) | 12,000 | | 344,640 |
Matrix Service Co. (a) | 4,600 | | 142,462 |
McGraw Hill Financial, Inc. | 8,200 | | 606,226 |
McKesson Corp. | 2,800 | | 473,732 |
MetLife, Inc. | 8,250 | | 431,888 |
Msa Safety, Inc. | 2,600 | | 137,150 |
Murphy U.S.A., Inc. (a) | 9,275 | | 394,188 |
Newfield Exploration Co. (a) | 8,100 | | 274,185 |
NVIDIA Corp. | 6,400 | | 118,208 |
Old Dominion Freight Lines, Inc. (a) | 2,300 | | 139,449 |
Peabody Energy Corp. | 14,300 | | 271,843 |
PetSmart, Inc. (d) | 11,200 | | 758,016 |
Phillips 66 Co. | 6,900 | | 574,218 |
priceline.com, Inc. (a) | 475 | | 549,931 |
Providence Service Corp. (a) | 12,400 | | 503,564 |
PulteGroup, Inc. | 5,400 | | 99,306 |
QUALCOMM, Inc. | 7,700 | | 606,067 |
Retractable Technologies, Inc. (a) | 20,000 | | 73,800 |
Riverbed Technology, Inc. (a) | 19,500 | | 379,275 |
Sapient Corp. (a) | 14,300 | | 232,661 |
Skyworks Solutions, Inc. | 2,000 | | 82,100 |
SM Energy Co. | 5,900 | | 437,367 |
Southwest Airlines Co. | 23,800 | | 575,246 |
Sportsman's Warehouse Holdings, Inc. | 10,800 | | 113,724 |
Stryker Corp. | 400 | | 31,100 |
Super Micro Computer, Inc. (a) | 44,800 | | 912,128 |
Synergy Resources Corp. (a) | 24,800 | | 288,672 |
SYNNEX Corp. (a) | 3,700 | | 249,306 |
Synopsys, Inc. (a) | 100 | | 3,762 |
Tenneco, Inc. (a) | 13,400 | | 802,258 |
Textron, Inc. | 11,400 | | 466,260 |
The Blackstone Group LP | 9,600 | | 283,488 |
Total System Services, Inc. | 8,000 | | 254,160 |
TrueBlue, Inc. (a) | 4,800 | | 128,400 |
U.S. Bancorp | 4,800 | | 195,744 |
Union Pacific Corp. | 4,200 | | 799,806 |
United Therapeutics Corp. (a) | 3,600 | | 360,036 |
Universal Electronics, Inc. (a) | 7,500 | | 280,125 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Universal Technical Institute, Inc. | 4,800 | | $ 57,648 |
Urban Outfitters, Inc. (a) | 16,600 | | 591,873 |
Verizon Communications, Inc. | 13,700 | | 640,201 |
Viacom, Inc. Class B (non-vtg.) | 8,600 | | 730,828 |
Yum! Brands, Inc. | 7,200 | | 554,328 |
TOTAL UNITED STATES OF AMERICA | | 41,842,936 |
US Virgin Islands - 0.3% |
Altisource Asset Management Corp. (a) | 290 | | 283,693 |
TOTAL COMMON STOCKS (Cost $89,563,336) | 102,888,962
|
Nonconvertible Preferred Stocks - 0.0% |
| | | |
India - 0.0% |
Zee Entertainment Enterprises Ltd. (Cost $2,240) | 302,169 | | 3,858
|
Money Market Funds - 3.1% |
| | | |
Fidelity Cash Central Fund, 0.11% (b) | 802,727 | | 802,727 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 2,531,106 | | 2,531,106 |
TOTAL MONEY MARKET FUNDS (Cost $3,333,833) | 3,333,833
|
TOTAL INVESTMENT PORTFOLIO - 99.8% (Cost $92,899,409) | | 106,226,653 |
NET OTHER ASSETS (LIABILITIES) - 0.2% | | 219,952 |
NET ASSETS - 100% | $ 106,446,605 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 451 |
Fidelity Securities Lending Cash Central Fund | 10,450 |
Total | $ 10,901 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 21,694,024 | $ 21,559,677 | $ 134,347 | $ - |
Consumer Staples | 5,496,285 | 5,114,628 | 381,657 | - |
Energy | 10,395,584 | 10,395,584 | - | - |
Financials | 10,638,701 | 9,933,756 | 704,945 | - |
Health Care | 8,759,628 | 8,381,923 | 377,705 | - |
Industrials | 18,092,666 | 18,092,666 | - | - |
Information Technology | 21,168,499 | 20,990,562 | 177,937 | - |
Materials | 4,403,869 | 4,403,869 | - | - |
Telecommunication Services | 1,484,486 | 1,484,486 | - | - |
Utilities | 759,078 | 759,078 | - | - |
Money Market Funds | 3,333,833 | 3,333,833 | - | - |
Total Investments in Securities: | $ 106,226,653 | $ 104,450,062 | $ 1,776,591 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,400,241) - See accompanying schedule: Unaffiliated issuers (cost $89,565,576) | $ 102,892,820 | |
Fidelity Central Funds (cost $3,333,833) | 3,333,833 | |
Total Investments (cost $92,899,409) | | $ 106,226,653 |
Foreign currency held at value (cost $22,423) | | 21,492 |
Receivable for investments sold | | 5,357,261 |
Receivable for fund shares sold | | 9,644 |
Dividends receivable | | 205,196 |
Distributions receivable from Fidelity Central Funds | | 2,669 |
Prepaid expenses | | 79 |
Receivable from investment adviser for expense reductions | | 11,157 |
Other receivables | | 56,087 |
Total assets | | 111,890,238 |
| | |
Liabilities | | |
Payable for investments purchased | $ 2,602,274 | |
Payable for fund shares redeemed | 128,255 | |
Accrued management fee | 73,642 | |
Distribution and service plan fees payable | 28,758 | |
Other affiliated payables | 22,697 | |
Other payables and accrued expenses | 56,901 | |
Collateral on securities loaned, at value | 2,531,106 | |
Total liabilities | | 5,443,633 |
| | |
Net Assets | | $ 106,446,605 |
Net Assets consist of: | | |
Paid in capital | | $ 100,887,492 |
Accumulated net investment loss | | (110,752) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (7,637,773) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 13,307,638 |
Net Assets | | $ 106,446,605 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($34,268,799 ÷ 2,308,482 shares) | | $ 14.84 |
| | |
Maximum offering price per share (100/94.25 of $14.84) | | $ 15.75 |
Class T: Net Asset Value and redemption price per share ($20,147,494 ÷ 1,402,358 shares) | | $ 14.37 |
| | |
Maximum offering price per share (100/96.50 of $14.37) | | $ 14.89 |
Class B: Net Asset Value and offering price per share ($1,317,895 ÷ 98,496 shares)A | | $ 13.38 |
| | |
Class C: Net Asset Value and offering price per share ($14,062,756 ÷ 1,054,016 shares)A | | $ 13.34 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($36,649,661 ÷ 2,379,113 shares) | | $ 15.40 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
| Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 722,586 |
Income from Fidelity Central Funds | | 10,901 |
Income before foreign taxes withheld | | 733,487 |
Less foreign taxes withheld | | (53,522) |
Total income | | 679,965 |
| | |
Expenses | | |
Management fee Basic fee | $ 361,823 | |
Performance adjustment | (6,898) | |
Transfer agent fees | 114,808 | |
Distribution and service plan fees | 171,374 | |
Accounting and security lending fees | 23,499 | |
Custodian fees and expenses | 55,114 | |
Independent trustees' compensation | 199 | |
Registration fees | 57,945 | |
Audit | 51,201 | |
Legal | 223 | |
Miscellaneous | 1,848 | |
Total expenses before reductions | 831,136 | |
Expense reductions | (40,353) | 790,783 |
Net investment income (loss) | | (110,818) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 9,617,224 | |
Foreign currency transactions | (9,335) | |
Total net realized gain (loss) | | 9,607,889 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (272,494) | |
Assets and liabilities in foreign currencies | 1,084 | |
Total change in net unrealized appreciation (depreciation) | | (271,410) |
Net gain (loss) | | 9,336,479 |
Net increase (decrease) in net assets resulting from operations | | $ 9,225,661 |
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, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (110,818) | $ 230,594 |
Net realized gain (loss) | 9,607,889 | 16,749,024 |
Change in net unrealized appreciation (depreciation) | (271,410) | 6,178,412 |
Net increase (decrease) in net assets resulting from operations | 9,225,661 | 23,158,030 |
Distributions to shareholders from net investment income | (195,453) | (34,747) |
Distributions to shareholders from net realized gain | (407,917) | - |
Total distributions | (603,370) | (34,747) |
Share transactions - net increase (decrease) | 398,483 | (1,761,053) |
Redemption fees | 323 | 649 |
Total increase (decrease) in net assets | 9,021,097 | 21,362,879 |
| | |
Net Assets | | |
Beginning of period | 97,425,508 | 76,062,629 |
End of period (including accumulated net investment loss of $110,752 and undistributed net investment income of $195,519, respectively) | $ 106,446,605 | $ 97,425,508 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.64 | $ 10.40 | $ 9.57 | $ 11.41 | $ 9.04 | $ 6.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | .04 | .02 | (.03) | .01 | .04 |
Net realized and unrealized gain (loss) | 1.30 | 3.20 | .81 | (1.76) | 2.47 | 2.13 |
Total from investment operations | 1.29 | 3.24 | .83 | (1.79) | 2.48 | 2.17 |
Distributions from net investment income | (.02) | - | - | - | (.03) | (.01) |
Distributions from net realized gain | (.06) | - | - | (.05) | (.08) | - |
Total distributions | (.09) J | - | - | (.05) | (.11) | (.01) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.84 | $ 13.64 | $ 10.40 | $ 9.57 | $ 11.41 | $ 9.04 |
Total Return B, C, D | 9.49% | 31.15% | 8.67% | (15.81)% | 27.68% | 31.68% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.54% A | 1.38% | 1.43% | 1.51% | 1.89% | 2.22% |
Expenses net of fee waivers, if any | 1.45% A | 1.38% | 1.43% | 1.45% | 1.50% | 1.50% |
Expenses net of all reductions | 1.45% A | 1.35% | 1.40% | 1.43% | 1.44% | 1.43% |
Net investment income (loss) | (.14)% A | .33% | .22% | (.24)% | .13% | .53% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 34,269 | $ 33,694 | $ 26,961 | $ 36,367 | $ 30,383 | $ 6,997 |
Portfolio turnover rate G | 222% A | 211% | 155% | 140% | 179% | 258% |
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 $.09 per share is comprised of distributions from net investment income of $.024 and distributions from net realized gain of $.064 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.19 | $ 10.09 | $ 9.31 | $ 11.11 | $ 8.82 | $ 6.72 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | - I | - I | (.05) | (.01) | .02 |
Net realized and unrealized gain (loss) | 1.27 | 3.10 | .78 | (1.72) | 2.39 | 2.09 |
Total from investment operations | 1.24 | 3.10 | .78 | (1.77) | 2.38 | 2.11 |
Distributions from net investment income | - | - | - | - | (.01) | (.01) |
Distributions from net realized gain | (.06) | - | - | (.03) | (.08) | - |
Total distributions | (.06) | - | - | (.03) | (.09) | (.01) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.37 | $ 13.19 | $ 10.09 | $ 9.31 | $ 11.11 | $ 8.82 |
Total Return B, C, D | 9.42% | 30.72% | 8.38% | (15.97)% | 27.20% | 31.50% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.85% A | 1.68% | 1.71% | 1.80% | 2.32% | 2.50% |
Expenses net of fee waivers, if any | 1.70% A | 1.68% | 1.70% | 1.70% | 1.75% | 1.75% |
Expenses net of all reductions | 1.70% A | 1.64% | 1.68% | 1.68% | 1.70% | 1.69% |
Net investment income (loss) | (.38)% A | .04% | (.05)% | (.49)% | (.13)% | .27% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,147 | $ 19,193 | $ 15,731 | $ 24,180 | $ 23,237 | $ 10,494 |
Portfolio turnover rate G | 222% A | 211% | 155% | 140% | 179% | 258% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.27 | $ 9.43 | $ 8.74 | $ 10.46 | $ 8.31 | $ 6.37 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.05) | (.05) | (.10) | (.06) | (.02) |
Net realized and unrealized gain (loss) | 1.18 | 2.89 | .74 | (1.62) | 2.26 | 1.97 |
Total from investment operations | 1.12 | 2.84 | .69 | (1.72) | 2.20 | 1.95 |
Distributions from net investment income | - | - | - | - | - | (.01) |
Distributions from net realized gain | (.01) | - | - | - I | (.05) | - |
Total distributions | (.01) | - | - | - I | (.05) | (.01) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.38 | $ 12.27 | $ 9.43 | $ 8.74 | $ 10.46 | $ 8.31 |
Total Return B, C, D | 9.09% | 30.12% | 7.89% | (16.42)% | 26.64% | 30.62% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.36% A | 2.17% | 2.19% | 2.32% | 2.82% | 2.98% |
Expenses net of fee waivers, if any | 2.20% A | 2.17% | 2.19% | 2.20% | 2.25% | 2.25% |
Expenses net of all reductions | 2.20% A | 2.13% | 2.17% | 2.18% | 2.19% | 2.18% |
Net investment income (loss) | (.88)% A | (.45)% | (.54)% | (.99)% | (.62)% | (.22)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,318 | $ 1,331 | $ 1,401 | $ 1,926 | $ 2,731 | $ 2,162 |
Portfolio turnover rate G | 222% A | 211% | 155% | 140% | 179% | 258% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.26 | $ 9.41 | $ 8.73 | $ 10.46 | $ 8.31 | $ 6.37 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.05) | (.05) | (.10) | (.06) | (.02) |
Net realized and unrealized gain (loss) | 1.17 | 2.90 | .73 | (1.61) | 2.27 | 1.97 |
Total from investment operations | 1.11 | 2.85 | .68 | (1.71) | 2.21 | 1.95 |
Distributions from net investment income | - | - | - | - | - | (.01) |
Distributions from net realized gain | (.03) | - | - | (.02) | (.06) | - |
Total distributions | (.03) | - | - | (.02) | (.06) | (.01) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.34 | $ 12.26 | $ 9.41 | $ 8.73 | $ 10.46 | $ 8.31 |
Total Return B, C, D | 9.03% | 30.29% | 7.79% | (16.38)% | 26.68% | 30.62% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.32% A | 2.16% | 2.18% | 2.28% | 2.77% | 2.97% |
Expenses net of fee waivers, if any | 2.20% A | 2.16% | 2.18% | 2.20% | 2.25% | 2.25% |
Expenses net of all reductions | 2.20% A | 2.13% | 2.16% | 2.18% | 2.20% | 2.18% |
Net investment income (loss) | (.88)% A | (.45)% | (.53)% | (.99)% | (.63)% | (.22)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 14,063 | $ 13,055 | $ 9,421 | $ 11,632 | $ 7,986 | $ 3,378 |
Portfolio turnover rate G | 222% A | 211% | 155% | 140% | 179% | 258% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.18 | $ 10.78 | $ 9.88 | $ 11.76 | $ 9.31 | $ 7.07 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | .09 | .06 | - H | .04 | .06 |
Net realized and unrealized gain (loss) | 1.34 | 3.33 | .84 | (1.82) | 2.54 | 2.20 |
Total from investment operations | 1.35 | 3.42 | .90 | (1.82) | 2.58 | 2.26 |
Distributions from net investment income | (.06) | (.02) | - | - | (.05) | (.02) |
Distributions from net realized gain | (.06) | - | - | (.06) | (.08) | - |
Total distributions | (.13) I | (.02) | - | (.06) | (.13) | (.02) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 15.40 | $ 14.18 | $ 10.78 | $ 9.88 | $ 11.76 | $ 9.31 |
Total Return B, C | 9.57% | 31.74% | 9.11% | (15.60)% | 28.00% | 32.03% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.20% A | 1.02% | 1.06% | 1.18% | 1.43% | 1.88% |
Expenses net of fee waivers, if any | 1.20% A | 1.02% | 1.06% | 1.17% | 1.25% | 1.25% |
Expenses net of all reductions | 1.20% A | .99% | 1.03% | 1.15% | 1.19% | 1.18% |
Net investment income (loss) | .12% A | .69% | .59% | .04% | .38% | .78% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 36,650 | $ 30,153 | $ 22,548 | $ 28,725 | $ 12,936 | $ 1,148 |
Portfolio turnover rate F | 222% A | 211% | 155% | 140% | 179% | 258% |
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.
I Total distributions of $.13 per share is comprised of distributions from net investment income of $.064 and distributions from net realized gain of $.064 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® 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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 14,485,161 |
Gross unrealized depreciation | (1,234,885) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 13,250,276 |
| |
Tax cost | $ 92,976,377 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (2,712,771) |
2019 | (14,114,488) |
Total capital loss carryforward | $ (16,827,259) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $113,596,737 and $116,937,409, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the MSCI All Country World Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .69% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Institutional Class. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 44,737 | $ 909 |
Class T | .25% | .25% | 49,885 | 590 |
Class B | .75% | .25% | 6,756 | 5,091 |
Class C | .75% | .25% | 69,996 | 8,663 |
| | | $ 171,374 | $ 15,253 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
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 |
| $ 6,517 |
Class A | 2,058 |
Class T | 124 |
Class B | 266 |
Class C | $ 8,965 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 41,809 | .24 |
Class T | 29,486 | .30 |
Class B | 2,047 | .31 |
Class C | 18,861 | .27 |
Institutional Class | 22,605 | .14 |
| $ 114,808 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3,266 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $94 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $10,450. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser 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, 2014. 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 |
| | |
Class A | 1.45% | $ 15,541 |
Class T | 1.70% | 15,058 |
Class B | 2.20% | 1,067 |
Class C | 2.20% | 8,687 |
| | $ 40,353 |
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 59,620 | $ - |
Institutional Class | 135,833 | 34,747 |
Total | $ 195,453 | $ 34,747 |
From net realized gain | | |
Class A | $ 158,986 | $ - |
Class T | 85,532 | - |
Class B | 537 | - |
Class C | 27,029 | - |
Institutional Class | 135,833 | - |
Total | $ 407,917 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 302,518 | 373,063 | $ 4,361,503 | $ 4,494,237 |
Reinvestment of distributions | 14,554 | - | 202,003 | - |
Shares redeemed | (478,212) | (496,412) | (7,046,437) | (5,849,205) |
Net increase (decrease) | (161,140) | (123,349) | $ (2,482,931) | $ (1,354,968) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class T | | | | |
Shares sold | 88,303 | 216,464 | $ 1,231,315 | $ 2,510,696 |
Reinvestment of distributions | 6,209 | - | 83,505 | - |
Shares redeemed | (146,722) | (321,703) | (2,052,048) | (3,651,942) |
Net increase (decrease) | (52,210) | (105,239) | $ (737,228) | $ (1,141,246) |
Class B | | | | |
Shares sold | 4,443 | 5,625 | $ 55,303 | $ 60,358 |
Reinvestment of distributions | 41 | - | 513 | - |
Shares redeemed | (14,461) | (45,845) | (186,472) | (485,095) |
Net increase (decrease) | (9,977) | (40,220) | $ (130,656) | $ (424,737) |
Class C | | | | |
Shares sold | 102,031 | 323,235 | $ 1,308,106 | $ 3,465,927 |
Reinvestment of distributions | 2,025 | - | 25,331 | - |
Shares redeemed | (115,288) | (258,872) | (1,506,803) | (2,771,491) |
Net increase (decrease) | (11,232) | 64,363 | $ (173,366) | $ 694,436 |
Institutional Class | | | | |
Shares sold | 327,365 | 283,059 | $ 5,060,777 | $ 3,455,485 |
Reinvestment of distributions | 17,076 | 2,789 | 245,726 | 30,990 |
Shares redeemed | (92,482) | (250,158) | (1,383,839) | (3,021,013) |
Net increase (decrease) | 251,959 | 35,690 | $ 3,922,664 | $ 465,462 |
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 14% 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
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
AGLOI-USAN-0614
1.784881.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Global Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio B | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,094.90 | $ 7.53 |
Hypothetical A | | $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,094.20 | $ 8.83 |
Hypothetical A | | $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,090.90 | $ 11.41 |
Hypothetical A | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,090.30 | $ 11.40 |
Hypothetical A | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,095.70 | $ 6.24 |
Hypothetical A | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Abraxas Petroleum Corp. (United States of America, Oil, Gas & Consumable Fuels) | 0.9 | 0.0 |
Super Micro Computer, Inc. (United States of America, Technology Hardware, Storage & Peripherals) | 0.9 | 0.0 |
Google, Inc. Class C (United States of America, Internet Software & Services) | 0.8 | 1.1 |
Brinker International, Inc. (United States of America, Hotels, Restaurants & Leisure) | 0.8 | 0.4 |
Tenneco, Inc. (United States of America, Auto Components) | 0.8 | 0.5 |
| 4.2 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Consumer Discretionary | 20.4 | 26.9 |
Information Technology | 20.1 | 20.4 |
Industrials | 16.9 | 14.6 |
Financials | 10.0 | 13.1 |
Energy | 9.8 | 6.9 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United States of America | 39.3 | 38.1 |
Canada | 8.9 | 6.9 |
Germany | 4.3 | 4.1 |
Korea (South) | 4.0 | 3.1 |
India | 3.2 | 2.6 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 96.7% | | | Stocks 99.5% | |
| Short-Term Investments and Net Other Assets (Liabilities) 3.3% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.5% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.7% |
| Shares | | Value |
Australia - 0.8% |
Ardent Leisure Group unit | 123,979 | | $ 307,521 |
Aristocrat Leisure Ltd. | 52,527 | | 245,452 |
Ausdrill Ltd. | 292,203 | | 252,455 |
Imdex Ltd. (a) | 74,343 | | 50,763 |
TOTAL AUSTRALIA | | 856,191 |
Bailiwick of Jersey - 0.9% |
Delphi Automotive PLC | 3,200 | | 213,888 |
Regus PLC | 117,700 | | 415,335 |
Shire PLC | 4,800 | | 274,522 |
TOTAL BAILIWICK OF JERSEY | | 903,745 |
Belgium - 1.3% |
Ackermans & Van Haaren SA | 4,100 | | 530,134 |
Anheuser-Busch InBev SA NV | 2,400 | | 261,590 |
Compagnie D'entreprises CFE SA | 2,617 | | 288,350 |
KBC Ancora (a) | 1,510 | | 55,347 |
Melexis NV | 7,200 | | 289,878 |
TOTAL BELGIUM | | 1,425,299 |
Bermuda - 1.8% |
China Gas Holdings Ltd. | 138,000 | | 224,276 |
China Singyes Solar Tech Holdings Ltd. | 78,000 | | 114,088 |
Freescale Semiconductor, Inc. (a) | 29,700 | | 652,509 |
Future Bright Holdings Ltd. | 642,000 | | 307,215 |
GasLog Ltd. | 4,900 | | 131,222 |
Nam Cheong Ltd. | 978,000 | | 276,932 |
Silverlake Axis Ltd. Class A | 332,000 | | 227,742 |
TOTAL BERMUDA | | 1,933,984 |
Brazil - 1.4% |
BB Seguridade Participacoes SA | 13,500 | | 158,204 |
CVC Brasil Operadora e Agencia de Viagens SA | 19,600 | | 143,017 |
Direcional Engenharia SA | 26,700 | | 130,282 |
Embraer SA | 13,700 | | 118,460 |
GAEC Educacao SA (a) | 13,500 | | 152,270 |
Kroton Educacional SA | 10,900 | | 233,472 |
Linx SA | 3,300 | | 72,016 |
Qualicorp SA (a) | 13,100 | | 127,313 |
Smiles SA | 10,200 | | 193,273 |
Weg SA | 16,380 | | 197,684 |
TOTAL BRAZIL | | 1,525,991 |
Common Stocks - continued |
| Shares | | Value |
British Virgin Islands - 0.4% |
Amira Nature Foods Ltd. (a)(d) | 17,000 | | $ 264,520 |
Epic Gas Ltd. (a) | 25,700 | | 194,556 |
TOTAL BRITISH VIRGIN ISLANDS | | 459,076 |
Canada - 8.9% |
AltaGas Ltd. | 4,300 | | 183,212 |
ATS Automation Tooling System, Inc. (a) | 19,300 | | 250,043 |
B2Gold Corp. (a) | 72,000 | | 206,925 |
Bellatrix Exploration Ltd. (a) | 23,100 | | 224,667 |
Black Diamond Group Ltd. | 6,500 | | 204,361 |
Canadian Energy Services & Technology Corp. | 3,900 | | 115,002 |
Canadian Natural Resources Ltd. | 15,900 | | 647,866 |
Canadian Pacific Railway Ltd. | 400 | | 62,457 |
Canam Group, Inc. Class A (sub. vtg.) | 16,400 | | 209,779 |
Canyon Services Group, Inc. (d) | 17,500 | | 240,774 |
CCL Industries, Inc. Class B | 3,000 | | 272,780 |
Constellation Software, Inc. | 1,500 | | 332,216 |
Descartes Systems Group, Inc. (a) | 6,650 | | 90,099 |
FirstService Corp. (sub. vtg.) | 5,500 | | 271,475 |
Gibson Energy, Inc. | 4,900 | | 130,810 |
Gildan Activewear, Inc. | 2,400 | | 122,688 |
Imperial Oil Ltd. | 11,300 | | 551,778 |
Inter Pipeline Ltd. | 9,300 | | 252,853 |
International Forest Products Ltd. (Interfor) Class A (sub. vtg.) (a) | 17,600 | | 266,878 |
Linamar Corp. | 6,200 | | 310,382 |
Magna International, Inc. Class A (sub. vtg.) | 3,100 | | 303,707 |
MDC Partners, Inc. Class A | 3,550 | | 86,691 |
Methanex Corp. | 7,200 | | 445,972 |
New Gold, Inc. (a) | 25,300 | | 127,879 |
Pason Systems, Inc. | 19,600 | | 544,340 |
PHX Energy Services Corp. | 21,500 | | 296,396 |
Raging River Exploration, Inc. (a) | 25,000 | | 220,109 |
RMP Energy, Inc. (a) | 22,200 | | 169,126 |
Saputo, Inc. | 5,000 | | 267,369 |
Stantec, Inc. | 4,000 | | 237,069 |
Stella-Jones, Inc. | 9,400 | | 256,944 |
Suncor Energy, Inc. | 12,500 | | 482,186 |
Tourmaline Oil Corp. (a) | 2,300 | | 119,087 |
Vermilion Energy, Inc. | 3,600 | | 239,540 |
Xtreme Drilling & Coil Services Corp. (a) | 152,500 | | 697,071 |
TOTAL CANADA | | 9,440,531 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - 1.2% |
Airtac International Group | 14,000 | | $ 150,603 |
China Cord Blood Corp. (a) | 31,800 | | 137,058 |
Kingsoft Corp. Ltd. | 47,000 | | 144,584 |
SouFun Holdings Ltd. ADR | 10,000 | | 117,700 |
Springland International Holdings Ltd. | 232,000 | | 91,268 |
Tencent Holdings Ltd. | 2,330 | | 145,216 |
Towngas China Co. Ltd. | 209,000 | | 238,304 |
Xinyi Solar Holdings Ltd. | 750,000 | | 201,214 |
TOTAL CAYMAN ISLANDS | | 1,225,947 |
China - 0.1% |
Harbin Power Equipment Co. Ltd. (H Shares) | 226,000 | | 132,050 |
Denmark - 2.4% |
Coloplast A/S Series B | 2,700 | | 226,539 |
GN Store Nordic A/S | 8,800 | | 212,312 |
Pandora A/S | 11,800 | | 793,758 |
Royal Unibrew A/S | 1,800 | | 280,037 |
SimCorp A/S | 8,100 | | 310,149 |
Spar Nord Bank A/S | 57,300 | | 644,359 |
Vestas Wind Systems A/S (a) | 2,900 | | 128,721 |
TOTAL DENMARK | | 2,595,875 |
Faroe Islands - 0.2% |
Bakkafrost | 13,600 | | 212,775 |
Finland - 0.2% |
Valmet Corp. (d) | 18,800 | | 218,047 |
France - 2.4% |
Altran Technologies SA | 25,600 | | 278,695 |
Bollore | 40 | | 25,488 |
Compagnie Plastic Omnium | 7,400 | | 251,527 |
Groupe Crit | 4,500 | | 297,170 |
Ipsos SA | 6,300 | | 244,204 |
Korian-Medica | 14,220 | | 534,237 |
Societe Generale Series A | 8,200 | | 509,657 |
Solocal Group SA (a)(d) | 96,500 | | 220,901 |
SR Teleperformance SA | 4,000 | | 229,135 |
TOTAL FRANCE | | 2,591,014 |
Germany - 4.3% |
Aareal Bank AG | 2,147 | | 97,327 |
Bechtle AG | 3,300 | | 293,054 |
Bertrandt AG | 1,700 | | 257,194 |
Common Stocks - continued |
| Shares | | Value |
Germany - continued |
CTS Eventim AG | 4,723 | | $ 300,758 |
Deutsche Annington Immobilien SE | 3,800 | | 109,656 |
Fresenius SE & Co. KGaA | 1,000 | | 151,984 |
FUCHS PETROLUB AG | 3,000 | | 275,986 |
GFT Technologies AG | 22,100 | | 263,434 |
Grenkeleasing AG | 2,400 | | 251,055 |
INDUS Holding AG | 5,828 | | 273,289 |
Infineon Technologies AG | 28,900 | | 335,951 |
Isra Vision AG | 2,200 | | 163,230 |
Jenoptik AG | 21,700 | | 361,416 |
Krones AG | 2,700 | | 258,014 |
MLP AG | 12,800 | | 87,015 |
Nemetschek AG | 3,300 | | 286,828 |
Open Business Club AG | 1,300 | | 166,180 |
RIB Software AG | 1,600 | | 24,895 |
Sixt AG | 7,000 | | 282,846 |
Wacker Construction Equipment AG | 16,500 | | 313,267 |
TOTAL GERMANY | | 4,553,379 |
Hong Kong - 0.0% |
Galaxy Entertainment Group Ltd. | 5,000 | | 39,243 |
India - 3.2% |
AIA Engineering Ltd. | 8,419 | | 84,246 |
Alembic Pharmaceuticals Ltd. (a) | 18,500 | | 91,403 |
Arvind Mills Ltd. (a) | 47,937 | | 145,802 |
Ashok Leyland Ltd. | 309,166 | | 114,050 |
Aurobindo Pharma Ltd. | 8,688 | | 82,551 |
Balkrishna Industries Ltd. (a) | 9,283 | | 80,971 |
Bharat Heavy Electricals Ltd. | 67,972 | | 203,358 |
Britannia Industries Ltd. | 8,699 | | 124,619 |
Dabur India Ltd. | 36,117 | | 107,336 |
Divi's Laboratories Ltd. | 3,272 | | 74,931 |
HDFC Bank Ltd. | 10,985 | | 137,463 |
Housing Development Finance Corp. Ltd. | 5,511 | | 82,046 |
Ipca Laboratories Ltd. | 2,726 | | 38,785 |
Lupin Ltd. | 3,774 | | 64,398 |
Max India Ltd. | 10,923 | | 38,701 |
Motherson Sumi Systems Ltd. | 97,280 | | 409,265 |
Mundra Port and SEZ Ltd. | 84,019 | | 262,163 |
Persistent Systems Ltd. | 9,281 | | 155,006 |
Rallis India Ltd. | 47,101 | | 141,932 |
Shriram Transport Finance Co. Ltd. | 3,346 | | 40,763 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Supreme Industries Ltd. (a) | 17,083 | | $ 129,181 |
Tata Consultancy Services Ltd. | 4,988 | | 181,045 |
Tata Motors Ltd. | 19,422 | | 134,347 |
Tech Mahindra Ltd. (a) | 7,556 | | 229,524 |
Torrent Pharmaceuticals Ltd. | 7,127 | | 68,298 |
UPL Ltd. | 36,184 | | 160,838 |
Wipro Ltd. | 8,022 | | 69,525 |
TOTAL INDIA | | 3,452,547 |
Indonesia - 0.1% |
PT Kalbe Farma Tbk | 143,600 | | 19,190 |
PT Matahari Department Store Tbk | 100,300 | | 130,130 |
TOTAL INDONESIA | | 149,320 |
Ireland - 0.7% |
Accenture PLC Class A | 2,900 | | 232,638 |
Actavis PLC (a) | 800 | | 163,464 |
Greencore Group PLC | 2,200 | | 9,699 |
Jazz Pharmaceuticals PLC (a) | 2,800 | | 377,720 |
TOTAL IRELAND | | 783,521 |
Israel - 1.6% |
CaesarStone Sdot-Yam Ltd. | 4,400 | | 229,592 |
Delta Galil Industries Ltd. | 7,100 | | 217,278 |
Formula Systems (1985) Ltd. | 4,200 | | 126,953 |
Ituran Location & Control Ltd. | 5,500 | | 132,553 |
Sarine Technologies Ltd. | 85,000 | | 187,804 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 15,600 | | 762,216 |
TOTAL ISRAEL | | 1,656,396 |
Italy - 1.6% |
Banca IFIS SpA | 22,300 | | 480,775 |
Brembo SpA | 17,300 | | 639,631 |
De Longhi SpA | 12,600 | | 273,397 |
Reply SpA | 2,925 | | 263,770 |
TOTAL ITALY | | 1,657,573 |
Japan - 1.9% |
Iriso Electronics Co. Ltd. | 6,600 | | 331,824 |
Iwatsuka Confectionary Co. Ltd. | 1,300 | | 71,208 |
Japan Aviation Electronics Industry Ltd. | 17,000 | | 289,333 |
Koshidaka Holdings Co. Ltd. | 2,100 | | 62,239 |
Okabe Co. Ltd. | 19,300 | | 264,859 |
Common Stocks - continued |
| Shares | | Value |
Japan - continued |
Ryoyo Electro Corp. | 14,300 | | $ 171,485 |
San-Ai Oil Co. Ltd. | 27,000 | | 179,586 |
Sasebo Heavy Industries Co. Ltd. (a) | 100 | | 112 |
Trans Cosmos, Inc. | 12,400 | | 230,692 |
Yusen Logistics Co. Ltd. | 13,400 | | 154,270 |
Yushin Precision Equipment Co. Ltd. | 8,400 | | 241,397 |
TOTAL JAPAN | | 1,997,005 |
Kenya - 0.2% |
Safaricom Ltd. | 1,541,700 | | 232,114 |
Korea (South) - 4.0% |
AMOREPACIFIC Corp. | 101 | | 130,515 |
Chong Kun Dang Pharmaceutical Corp. | 1,505 | | 106,928 |
Cosmax, Inc. (a) | 1,634 | | 109,925 |
Coway Co. Ltd. | 5,767 | | 454,952 |
EO Technics Co. Ltd. | 2,655 | | 177,326 |
FINETEC Corp. | 23,944 | | 267,693 |
Grand Korea Leisure Co. Ltd. | 3,120 | | 130,013 |
Halla Visteon Climate Control Corp. | 3,370 | | 140,593 |
Hansae Co. Ltd. | 5,930 | | 123,123 |
Hanssem Co. Ltd. | 3,338 | | 272,701 |
I-Sens, Inc. (a) | 3,510 | | 175,993 |
Interojo Co. Ltd. | 7,335 | | 146,260 |
KONA@I Co. Ltd. | 3,238 | | 120,669 |
Korea Aerospace Industries Ltd. | 3,960 | | 126,301 |
Korea Kolmar Co. Ltd. New | 4,150 | | 136,378 |
LG Hausys Ltd. | 836 | | 147,277 |
Loen Entertainment, Inc. | 10,921 | | 266,392 |
Lumens Co. Ltd. (a) | 21,596 | | 289,521 |
Paradise Co. Ltd. | 2,515 | | 93,482 |
PSK, Inc. | 10,980 | | 145,606 |
Samsung Electronics Co. Ltd. | 99 | | 128,697 |
SK Hynix, Inc. (a) | 950 | | 36,920 |
Suheung Capsule Co. Ltd. | 3,120 | | 115,516 |
Suprema, Inc. (a) | 4,754 | | 117,573 |
Wonik IPS Co. Ltd. (a) | 26,364 | | 262,849 |
TOTAL KOREA (SOUTH) | | 4,223,203 |
Liberia - 0.3% |
Royal Caribbean Cruises Ltd. | 4,900 | | 260,337 |
Luxembourg - 0.1% |
Oriflame Cosmetics SA SDR (d) | 2,800 | | 71,397 |
Common Stocks - continued |
| Shares | | Value |
Malaysia - 1.0% |
Berjaya Auto Bhd | 199,600 | | $ 127,255 |
Cahya Mata Sarawak Bhd | 32,600 | | 95,327 |
Globetronics Technology Bhd | 160,200 | | 176,772 |
Inari Amertron Bhd | 201,000 | | 161,416 |
Matrix Concepts Holdings Bhd | 196,900 | | 246,842 |
Multi-Purpose Holdings Bhd (a) | 215,400 | | 128,745 |
TIME dotCom Bhd | 96,900 | | 118,508 |
TOTAL MALAYSIA | | 1,054,865 |
Mexico - 0.5% |
Grupo Financiero Interacciones SA de CV | 21,400 | | 129,207 |
Infraestructura Energetica Nova S.A.B. de CV | 19,900 | | 103,616 |
Megacable Holdings S.A.B. de CV unit | 69,500 | | 275,657 |
TOTAL MEXICO | | 508,480 |
Netherlands - 0.9% |
LyondellBasell Industries NV Class A | 4,800 | | 444,000 |
NXP Semiconductors NV (a) | 7,300 | | 435,226 |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 2,800 | | 120,067 |
TOTAL NETHERLANDS | | 999,293 |
New Zealand - 0.5% |
Fisher & Paykel Healthcare Corp. | 71,126 | | 250,848 |
Kathmandu Holdings Ltd. | 75,515 | | 237,119 |
TOTAL NEW ZEALAND | | 487,967 |
Nigeria - 0.1% |
Dangote Cement PLC | 81,755 | | 115,017 |
Norway - 1.1% |
Cermaq ASA | 24,900 | | 294,269 |
Salmar ASA (a) | 21,500 | | 311,054 |
SpareBank 1 SR-Bank ASA (primary capital certificate) (d) | 25,500 | | 246,665 |
Veidekke ASA | 30,400 | | 326,027 |
TOTAL NORWAY | | 1,178,015 |
Philippines - 0.2% |
Alliance Global Group, Inc. | 186,500 | | 130,330 |
Universal Robina Corp. | 11,780 | | 38,584 |
TOTAL PHILIPPINES | | 168,914 |
Common Stocks - continued |
| Shares | | Value |
Poland - 0.2% |
Bank Zachodni WBK SA | 700 | | $ 85,892 |
ING Bank Slaski SA | 2,800 | | 125,774 |
TOTAL POLAND | | 211,666 |
Portugal - 0.1% |
Mota Engil Sgps SA | 12,500 | | 95,502 |
Russia - 0.1% |
Vozrozhdenie Bank | 14,400 | | 147,254 |
Singapore - 0.4% |
OSIM International Ltd. | 114,000 | | 263,699 |
SIIC Environment Holdings Ltd. (a) | 1,448,000 | | 192,882 |
TOTAL SINGAPORE | | 456,581 |
South Africa - 1.5% |
Bidvest Group Ltd. | 4,984 | | 136,674 |
Clicks Group Ltd. | 20,984 | | 127,952 |
Clover Industries Ltd. | 66,700 | | 122,996 |
Coronation Fund Managers Ltd. | 31,000 | | 299,053 |
FirstRand Ltd. | 31,700 | | 116,489 |
Mr Price Group Ltd. | 8,600 | | 129,403 |
MTN Group Ltd. | 3,500 | | 70,133 |
Naspers Ltd. Class N | 1,240 | | 116,922 |
Rand Merchant Insurance Holdings Ltd. | 46,500 | | 132,598 |
Royal Bafokeng Holdings (Pty) Ltd. (a) | 20,100 | | 129,918 |
Steinhoff International Holdings Ltd. | 24,900 | | 129,251 |
Super Group Ltd. (a) | 42,500 | | 114,446 |
TOTAL SOUTH AFRICA | | 1,625,835 |
Spain - 0.9% |
Amadeus IT Holding SA Class A | 6,000 | | 249,348 |
Banco Santander SA | 602 | | 5,986 |
Banco Santander SA (Spain) | 26,200 | | 260,577 |
Grifols SA | 4,600 | | 245,700 |
Let's Gowex SA (d) | 6,700 | | 190,367 |
TOTAL SPAIN | | 951,978 |
Sweden - 1.6% |
AarhusKarlshamn AB | 2,000 | | 133,586 |
AF AB (B Shares) | 6,900 | | 249,377 |
Fagerhult AB | 10,316 | | 512,452 |
JM AB (B Shares) | 7,900 | | 267,294 |
Net Entertainment NE AB | 8,700 | | 209,398 |
Common Stocks - continued |
| Shares | | Value |
Sweden - continued |
Net Entertainment NE AB (a) | 8,700 | | $ 4,014 |
Nibe Industrier AB (B Shares) | 9,800 | | 275,061 |
TOTAL SWEDEN | | 1,651,182 |
Switzerland - 2.5% |
Autoneum Holding AG | 2,570 | | 543,435 |
Belimo Holding AG (Reg.) | 80 | | 225,065 |
Bossard Holding AG | 1,904 | | 261,770 |
Comet Holding AG | 486 | | 299,298 |
Komax Holding AG (Reg.) | 1,717 | | 265,715 |
Pentair Ltd. | 2,900 | | 215,441 |
Siegfried Holding AG | 1,387 | | 259,718 |
Sika AG (Bearer) | 8 | | 32,351 |
TE Connectivity Ltd. | 9,100 | | 536,718 |
TOTAL SWITZERLAND | | 2,639,511 |
Taiwan - 1.8% |
Advanced Semiconductor Engineering, Inc. | 93,000 | | 108,412 |
Advantech Co. Ltd. | 18,000 | | 116,358 |
Delta Electronics, Inc. | 20,000 | | 122,657 |
Everlight Electronics Co. Ltd. | 46,000 | | 107,659 |
Largan Precision Co. Ltd. | 3,000 | | 187,466 |
MediaTek, Inc. | 9,000 | | 140,823 |
San Shing Fastech Corp. | 43,000 | | 125,726 |
Ton Yi Industrial Corp. | 85,000 | | 90,451 |
Topoint Technology Co. Ltd. | 218,903 | | 156,745 |
Ttfb Co. Ltd. | 13,000 | | 127,994 |
Tung Thih Electronic Co. Ltd. | 45,000 | | 183,488 |
Vanguard International Semiconductor Corp. | 101,000 | | 137,946 |
Yungtay Engineering Co. Ltd. | 96,000 | | 283,237 |
TOTAL TAIWAN | | 1,888,962 |
Thailand - 0.6% |
Kce Electronics PCL | 146,300 | | 158,235 |
Major Cineplex Group PCL (For. Reg.) | 131,200 | | 77,844 |
MC Group PCL | 147,100 | | 79,096 |
Mega Lifesciences PCL | 180,500 | | 126,618 |
Thaicom PCL | 186,300 | | 233,163 |
TOTAL THAILAND | | 674,956 |
Turkey - 0.1% |
Soda Sanayii AS | 87,000 | | 128,550 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - 3.0% |
BG Group PLC | 27,400 | | $ 554,221 |
Clarkson PLC | 6,200 | | 279,079 |
Close Brothers Group PLC | 10,300 | | 242,772 |
Dialog Semiconductor PLC (a) | 13,100 | | 331,045 |
Hikma Pharmaceuticals PLC | 9,048 | | 237,094 |
Hilton Food Group PLC | 33,000 | | 297,251 |
John David Group PLC | 9,200 | | 272,454 |
Mears Group PLC | 16,000 | | 136,018 |
Persimmon PLC | 11,400 | | 252,531 |
Prudential PLC | 13,350 | | 306,905 |
SABMiller PLC | 5,000 | | 271,875 |
TOTAL UNITED KINGDOM | | 3,181,245 |
United States of America - 39.3% |
3M Co. | 1,400 | | 194,726 |
Abraxas Petroleum Corp. (a) | 176,800 | | 965,323 |
Aceto Corp. | 19,800 | | 433,224 |
Activision Blizzard, Inc. | 7,000 | | 140,070 |
Agilent Technologies, Inc. | 5,700 | | 308,028 |
Alliance Data Systems Corp. (a) | 2,070 | | 500,733 |
Altisource Residential Corp. Class B | 7,400 | | 208,088 |
American Express Co. | 4,500 | | 393,435 |
American Public Education, Inc. (a) | 4,400 | | 152,240 |
AMN Healthcare Services, Inc. (a) | 19,600 | | 244,608 |
AmSurg Corp. (a) | 10,900 | | 472,079 |
Archer Daniels Midland Co. | 3,200 | | 139,936 |
Argan, Inc. | 16,500 | | 441,705 |
Atlas Air Worldwide Holdings, Inc. (a) | 341 | | 11,932 |
Boise Cascade Co. (a) | 1,500 | | 37,530 |
Boston Scientific Corp. (a) | 33,200 | | 418,652 |
Brinker International, Inc. | 17,600 | | 864,864 |
Brocade Communications Systems, Inc. (a) | 26,800 | | 249,508 |
Capital One Financial Corp. | 6,100 | | 450,790 |
Carrizo Oil & Gas, Inc. (a) | 3,000 | | 165,060 |
Caterpillar, Inc. | 6,000 | | 632,400 |
CBIZ, Inc. (a) | 75,300 | | 645,321 |
CBRE Group, Inc. (a) | 28,700 | | 764,568 |
CDW Corp. | 23,400 | | 659,646 |
Century Casinos, Inc. (a) | 87,800 | | 522,410 |
Church & Dwight Co., Inc. | 1,900 | | 131,119 |
Columbus McKinnon Corp. (NY Shares) | 5,100 | | 135,099 |
Continental Resources, Inc. (a) | 3,900 | | 540,228 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Cummins, Inc. | 800 | | $ 120,680 |
CVS Caremark Corp. | 10,900 | | 792,648 |
Diamondback Energy, Inc. (a) | 2,000 | | 143,880 |
Electronic Arts, Inc. (a) | 7,400 | | 209,420 |
EMC Corp. | 26,700 | | 688,860 |
Enanta Pharmaceuticals, Inc. (a) | 3,200 | | 119,072 |
EnerSys | 4,300 | | 290,594 |
Enservco Corp. (a)(d) | 37,400 | | 73,304 |
Esterline Technologies Corp. (a) | 4,300 | | 468,786 |
F5 Networks, Inc. (a) | 5,200 | | 546,884 |
FedEx Corp. | 1,940 | | 264,325 |
FelCor Lodging Trust, Inc. | 33,900 | | 312,897 |
Ferro Corp. (a) | 29,500 | | 382,910 |
Fidelity National Information Services, Inc. | 14,900 | | 796,107 |
FleetCor Technologies, Inc. (a) | 450 | | 51,359 |
Foot Locker, Inc. | 4,500 | | 209,385 |
G-III Apparel Group Ltd. (a) | 9,100 | | 653,107 |
Generac Holdings, Inc. | 7,700 | | 453,376 |
Gentex Corp. | 1,000 | | 28,670 |
Global Payments, Inc. | 3,700 | | 247,271 |
Global Power Equipment Group, Inc. | 7,700 | | 134,981 |
Google, Inc.: | | | |
Class A (a) | 1,455 | | 778,250 |
Class C (a) | 1,655 | | 871,622 |
Grand Canyon Education, Inc. (a) | 2,800 | | 120,736 |
Greatbatch, Inc. (a) | 3,600 | | 165,708 |
Hanesbrands, Inc. | 7,200 | | 591,048 |
Harley-Davidson, Inc. | 2,800 | | 207,032 |
Harman International Industries, Inc. | 3,500 | | 383,635 |
HCA Holdings, Inc. (a) | 6,000 | | 312,000 |
Hologic, Inc. (a) | 9,800 | | 205,653 |
Houston Wire & Cable Co. | 10,423 | | 129,871 |
Howard Hughes Corp. (a) | 500 | | 71,380 |
Huron Consulting Group, Inc. (a) | 4,400 | | 313,280 |
Illinois Tool Works, Inc. | 1,600 | | 136,368 |
Inphi Corp. (a) | 6,500 | | 96,135 |
Jarden Corp. (a) | 1,050 | | 60,008 |
Johnson Controls, Inc. | 8,100 | | 365,634 |
Jones Lang LaSalle, Inc. | 5,000 | | 579,450 |
JTH Holding, Inc. Class A (a) | 15,300 | | 416,160 |
Juniper Networks, Inc. (a) | 16,400 | | 404,916 |
Kroger Co. | 14,500 | | 667,580 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Ladder Capital Corp. Class A | 7,100 | | $ 127,019 |
Las Vegas Sands Corp. | 5,800 | | 458,954 |
Manitowoc Co., Inc. | 13,600 | | 432,208 |
Manpower, Inc. | 2,300 | | 187,082 |
Matador Resources Co. (a) | 12,000 | | 344,640 |
Matrix Service Co. (a) | 4,600 | | 142,462 |
McGraw Hill Financial, Inc. | 8,200 | | 606,226 |
McKesson Corp. | 2,800 | | 473,732 |
MetLife, Inc. | 8,250 | | 431,888 |
Msa Safety, Inc. | 2,600 | | 137,150 |
Murphy U.S.A., Inc. (a) | 9,275 | | 394,188 |
Newfield Exploration Co. (a) | 8,100 | | 274,185 |
NVIDIA Corp. | 6,400 | | 118,208 |
Old Dominion Freight Lines, Inc. (a) | 2,300 | | 139,449 |
Peabody Energy Corp. | 14,300 | | 271,843 |
PetSmart, Inc. (d) | 11,200 | | 758,016 |
Phillips 66 Co. | 6,900 | | 574,218 |
priceline.com, Inc. (a) | 475 | | 549,931 |
Providence Service Corp. (a) | 12,400 | | 503,564 |
PulteGroup, Inc. | 5,400 | | 99,306 |
QUALCOMM, Inc. | 7,700 | | 606,067 |
Retractable Technologies, Inc. (a) | 20,000 | | 73,800 |
Riverbed Technology, Inc. (a) | 19,500 | | 379,275 |
Sapient Corp. (a) | 14,300 | | 232,661 |
Skyworks Solutions, Inc. | 2,000 | | 82,100 |
SM Energy Co. | 5,900 | | 437,367 |
Southwest Airlines Co. | 23,800 | | 575,246 |
Sportsman's Warehouse Holdings, Inc. | 10,800 | | 113,724 |
Stryker Corp. | 400 | | 31,100 |
Super Micro Computer, Inc. (a) | 44,800 | | 912,128 |
Synergy Resources Corp. (a) | 24,800 | | 288,672 |
SYNNEX Corp. (a) | 3,700 | | 249,306 |
Synopsys, Inc. (a) | 100 | | 3,762 |
Tenneco, Inc. (a) | 13,400 | | 802,258 |
Textron, Inc. | 11,400 | | 466,260 |
The Blackstone Group LP | 9,600 | | 283,488 |
Total System Services, Inc. | 8,000 | | 254,160 |
TrueBlue, Inc. (a) | 4,800 | | 128,400 |
U.S. Bancorp | 4,800 | | 195,744 |
Union Pacific Corp. | 4,200 | | 799,806 |
United Therapeutics Corp. (a) | 3,600 | | 360,036 |
Universal Electronics, Inc. (a) | 7,500 | | 280,125 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Universal Technical Institute, Inc. | 4,800 | | $ 57,648 |
Urban Outfitters, Inc. (a) | 16,600 | | 591,873 |
Verizon Communications, Inc. | 13,700 | | 640,201 |
Viacom, Inc. Class B (non-vtg.) | 8,600 | | 730,828 |
Yum! Brands, Inc. | 7,200 | | 554,328 |
TOTAL UNITED STATES OF AMERICA | | 41,842,936 |
US Virgin Islands - 0.3% |
Altisource Asset Management Corp. (a) | 290 | | 283,693 |
TOTAL COMMON STOCKS (Cost $89,563,336) | 102,888,962
|
Nonconvertible Preferred Stocks - 0.0% |
| | | |
India - 0.0% |
Zee Entertainment Enterprises Ltd. (Cost $2,240) | 302,169 | | 3,858
|
Money Market Funds - 3.1% |
| | | |
Fidelity Cash Central Fund, 0.11% (b) | 802,727 | | 802,727 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 2,531,106 | | 2,531,106 |
TOTAL MONEY MARKET FUNDS (Cost $3,333,833) | 3,333,833
|
TOTAL INVESTMENT PORTFOLIO - 99.8% (Cost $92,899,409) | | 106,226,653 |
NET OTHER ASSETS (LIABILITIES) - 0.2% | | 219,952 |
NET ASSETS - 100% | $ 106,446,605 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 451 |
Fidelity Securities Lending Cash Central Fund | 10,450 |
Total | $ 10,901 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 21,694,024 | $ 21,559,677 | $ 134,347 | $ - |
Consumer Staples | 5,496,285 | 5,114,628 | 381,657 | - |
Energy | 10,395,584 | 10,395,584 | - | - |
Financials | 10,638,701 | 9,933,756 | 704,945 | - |
Health Care | 8,759,628 | 8,381,923 | 377,705 | - |
Industrials | 18,092,666 | 18,092,666 | - | - |
Information Technology | 21,168,499 | 20,990,562 | 177,937 | - |
Materials | 4,403,869 | 4,403,869 | - | - |
Telecommunication Services | 1,484,486 | 1,484,486 | - | - |
Utilities | 759,078 | 759,078 | - | - |
Money Market Funds | 3,333,833 | 3,333,833 | - | - |
Total Investments in Securities: | $ 106,226,653 | $ 104,450,062 | $ 1,776,591 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,400,241) - See accompanying schedule: Unaffiliated issuers (cost $89,565,576) | $ 102,892,820 | |
Fidelity Central Funds (cost $3,333,833) | 3,333,833 | |
Total Investments (cost $92,899,409) | | $ 106,226,653 |
Foreign currency held at value (cost $22,423) | | 21,492 |
Receivable for investments sold | | 5,357,261 |
Receivable for fund shares sold | | 9,644 |
Dividends receivable | | 205,196 |
Distributions receivable from Fidelity Central Funds | | 2,669 |
Prepaid expenses | | 79 |
Receivable from investment adviser for expense reductions | | 11,157 |
Other receivables | | 56,087 |
Total assets | | 111,890,238 |
| | |
Liabilities | | |
Payable for investments purchased | $ 2,602,274 | |
Payable for fund shares redeemed | 128,255 | |
Accrued management fee | 73,642 | |
Distribution and service plan fees payable | 28,758 | |
Other affiliated payables | 22,697 | |
Other payables and accrued expenses | 56,901 | |
Collateral on securities loaned, at value | 2,531,106 | |
Total liabilities | | 5,443,633 |
| | |
Net Assets | | $ 106,446,605 |
Net Assets consist of: | | |
Paid in capital | | $ 100,887,492 |
Accumulated net investment loss | | (110,752) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (7,637,773) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 13,307,638 |
Net Assets | | $ 106,446,605 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($34,268,799 ÷ 2,308,482 shares) | | $ 14.84 |
| | |
Maximum offering price per share (100/94.25 of $14.84) | | $ 15.75 |
Class T: Net Asset Value and redemption price per share ($20,147,494 ÷ 1,402,358 shares) | | $ 14.37 |
| | |
Maximum offering price per share (100/96.50 of $14.37) | | $ 14.89 |
Class B: Net Asset Value and offering price per share ($1,317,895 ÷ 98,496 shares)A | | $ 13.38 |
| | |
Class C: Net Asset Value and offering price per share ($14,062,756 ÷ 1,054,016 shares)A | | $ 13.34 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($36,649,661 ÷ 2,379,113 shares) | | $ 15.40 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
| Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 722,586 |
Income from Fidelity Central Funds | | 10,901 |
Income before foreign taxes withheld | | 733,487 |
Less foreign taxes withheld | | (53,522) |
Total income | | 679,965 |
| | |
Expenses | | |
Management fee Basic fee | $ 361,823 | |
Performance adjustment | (6,898) | |
Transfer agent fees | 114,808 | |
Distribution and service plan fees | 171,374 | |
Accounting and security lending fees | 23,499 | |
Custodian fees and expenses | 55,114 | |
Independent trustees' compensation | 199 | |
Registration fees | 57,945 | |
Audit | 51,201 | |
Legal | 223 | |
Miscellaneous | 1,848 | |
Total expenses before reductions | 831,136 | |
Expense reductions | (40,353) | 790,783 |
Net investment income (loss) | | (110,818) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 9,617,224 | |
Foreign currency transactions | (9,335) | |
Total net realized gain (loss) | | 9,607,889 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (272,494) | |
Assets and liabilities in foreign currencies | 1,084 | |
Total change in net unrealized appreciation (depreciation) | | (271,410) |
Net gain (loss) | | 9,336,479 |
Net increase (decrease) in net assets resulting from operations | | $ 9,225,661 |
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, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (110,818) | $ 230,594 |
Net realized gain (loss) | 9,607,889 | 16,749,024 |
Change in net unrealized appreciation (depreciation) | (271,410) | 6,178,412 |
Net increase (decrease) in net assets resulting from operations | 9,225,661 | 23,158,030 |
Distributions to shareholders from net investment income | (195,453) | (34,747) |
Distributions to shareholders from net realized gain | (407,917) | - |
Total distributions | (603,370) | (34,747) |
Share transactions - net increase (decrease) | 398,483 | (1,761,053) |
Redemption fees | 323 | 649 |
Total increase (decrease) in net assets | 9,021,097 | 21,362,879 |
| | |
Net Assets | | |
Beginning of period | 97,425,508 | 76,062,629 |
End of period (including accumulated net investment loss of $110,752 and undistributed net investment income of $195,519, respectively) | $ 106,446,605 | $ 97,425,508 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.64 | $ 10.40 | $ 9.57 | $ 11.41 | $ 9.04 | $ 6.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | .04 | .02 | (.03) | .01 | .04 |
Net realized and unrealized gain (loss) | 1.30 | 3.20 | .81 | (1.76) | 2.47 | 2.13 |
Total from investment operations | 1.29 | 3.24 | .83 | (1.79) | 2.48 | 2.17 |
Distributions from net investment income | (.02) | - | - | - | (.03) | (.01) |
Distributions from net realized gain | (.06) | - | - | (.05) | (.08) | - |
Total distributions | (.09) J | - | - | (.05) | (.11) | (.01) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.84 | $ 13.64 | $ 10.40 | $ 9.57 | $ 11.41 | $ 9.04 |
Total Return B, C, D | 9.49% | 31.15% | 8.67% | (15.81)% | 27.68% | 31.68% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.54% A | 1.38% | 1.43% | 1.51% | 1.89% | 2.22% |
Expenses net of fee waivers, if any | 1.45% A | 1.38% | 1.43% | 1.45% | 1.50% | 1.50% |
Expenses net of all reductions | 1.45% A | 1.35% | 1.40% | 1.43% | 1.44% | 1.43% |
Net investment income (loss) | (.14)% A | .33% | .22% | (.24)% | .13% | .53% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 34,269 | $ 33,694 | $ 26,961 | $ 36,367 | $ 30,383 | $ 6,997 |
Portfolio turnover rate G | 222% A | 211% | 155% | 140% | 179% | 258% |
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 $.09 per share is comprised of distributions from net investment income of $.024 and distributions from net realized gain of $.064 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.19 | $ 10.09 | $ 9.31 | $ 11.11 | $ 8.82 | $ 6.72 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | - I | - I | (.05) | (.01) | .02 |
Net realized and unrealized gain (loss) | 1.27 | 3.10 | .78 | (1.72) | 2.39 | 2.09 |
Total from investment operations | 1.24 | 3.10 | .78 | (1.77) | 2.38 | 2.11 |
Distributions from net investment income | - | - | - | - | (.01) | (.01) |
Distributions from net realized gain | (.06) | - | - | (.03) | (.08) | - |
Total distributions | (.06) | - | - | (.03) | (.09) | (.01) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.37 | $ 13.19 | $ 10.09 | $ 9.31 | $ 11.11 | $ 8.82 |
Total Return B, C, D | 9.42% | 30.72% | 8.38% | (15.97)% | 27.20% | 31.50% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.85% A | 1.68% | 1.71% | 1.80% | 2.32% | 2.50% |
Expenses net of fee waivers, if any | 1.70% A | 1.68% | 1.70% | 1.70% | 1.75% | 1.75% |
Expenses net of all reductions | 1.70% A | 1.64% | 1.68% | 1.68% | 1.70% | 1.69% |
Net investment income (loss) | (.38)% A | .04% | (.05)% | (.49)% | (.13)% | .27% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,147 | $ 19,193 | $ 15,731 | $ 24,180 | $ 23,237 | $ 10,494 |
Portfolio turnover rate G | 222% A | 211% | 155% | 140% | 179% | 258% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.27 | $ 9.43 | $ 8.74 | $ 10.46 | $ 8.31 | $ 6.37 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.05) | (.05) | (.10) | (.06) | (.02) |
Net realized and unrealized gain (loss) | 1.18 | 2.89 | .74 | (1.62) | 2.26 | 1.97 |
Total from investment operations | 1.12 | 2.84 | .69 | (1.72) | 2.20 | 1.95 |
Distributions from net investment income | - | - | - | - | - | (.01) |
Distributions from net realized gain | (.01) | - | - | - I | (.05) | - |
Total distributions | (.01) | - | - | - I | (.05) | (.01) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.38 | $ 12.27 | $ 9.43 | $ 8.74 | $ 10.46 | $ 8.31 |
Total Return B, C, D | 9.09% | 30.12% | 7.89% | (16.42)% | 26.64% | 30.62% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.36% A | 2.17% | 2.19% | 2.32% | 2.82% | 2.98% |
Expenses net of fee waivers, if any | 2.20% A | 2.17% | 2.19% | 2.20% | 2.25% | 2.25% |
Expenses net of all reductions | 2.20% A | 2.13% | 2.17% | 2.18% | 2.19% | 2.18% |
Net investment income (loss) | (.88)% A | (.45)% | (.54)% | (.99)% | (.62)% | (.22)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,318 | $ 1,331 | $ 1,401 | $ 1,926 | $ 2,731 | $ 2,162 |
Portfolio turnover rate G | 222% A | 211% | 155% | 140% | 179% | 258% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.26 | $ 9.41 | $ 8.73 | $ 10.46 | $ 8.31 | $ 6.37 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.05) | (.05) | (.10) | (.06) | (.02) |
Net realized and unrealized gain (loss) | 1.17 | 2.90 | .73 | (1.61) | 2.27 | 1.97 |
Total from investment operations | 1.11 | 2.85 | .68 | (1.71) | 2.21 | 1.95 |
Distributions from net investment income | - | - | - | - | - | (.01) |
Distributions from net realized gain | (.03) | - | - | (.02) | (.06) | - |
Total distributions | (.03) | - | - | (.02) | (.06) | (.01) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.34 | $ 12.26 | $ 9.41 | $ 8.73 | $ 10.46 | $ 8.31 |
Total Return B, C, D | 9.03% | 30.29% | 7.79% | (16.38)% | 26.68% | 30.62% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.32% A | 2.16% | 2.18% | 2.28% | 2.77% | 2.97% |
Expenses net of fee waivers, if any | 2.20% A | 2.16% | 2.18% | 2.20% | 2.25% | 2.25% |
Expenses net of all reductions | 2.20% A | 2.13% | 2.16% | 2.18% | 2.20% | 2.18% |
Net investment income (loss) | (.88)% A | (.45)% | (.53)% | (.99)% | (.63)% | (.22)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 14,063 | $ 13,055 | $ 9,421 | $ 11,632 | $ 7,986 | $ 3,378 |
Portfolio turnover rate G | 222% A | 211% | 155% | 140% | 179% | 258% |
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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.18 | $ 10.78 | $ 9.88 | $ 11.76 | $ 9.31 | $ 7.07 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | .09 | .06 | - H | .04 | .06 |
Net realized and unrealized gain (loss) | 1.34 | 3.33 | .84 | (1.82) | 2.54 | 2.20 |
Total from investment operations | 1.35 | 3.42 | .90 | (1.82) | 2.58 | 2.26 |
Distributions from net investment income | (.06) | (.02) | - | - | (.05) | (.02) |
Distributions from net realized gain | (.06) | - | - | (.06) | (.08) | - |
Total distributions | (.13) I | (.02) | - | (.06) | (.13) | (.02) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 15.40 | $ 14.18 | $ 10.78 | $ 9.88 | $ 11.76 | $ 9.31 |
Total Return B, C | 9.57% | 31.74% | 9.11% | (15.60)% | 28.00% | 32.03% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.20% A | 1.02% | 1.06% | 1.18% | 1.43% | 1.88% |
Expenses net of fee waivers, if any | 1.20% A | 1.02% | 1.06% | 1.17% | 1.25% | 1.25% |
Expenses net of all reductions | 1.20% A | .99% | 1.03% | 1.15% | 1.19% | 1.18% |
Net investment income (loss) | .12% A | .69% | .59% | .04% | .38% | .78% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 36,650 | $ 30,153 | $ 22,548 | $ 28,725 | $ 12,936 | $ 1,148 |
Portfolio turnover rate F | 222% A | 211% | 155% | 140% | 179% | 258% |
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.
I Total distributions of $.13 per share is comprised of distributions from net investment income of $.064 and distributions from net realized gain of $.064 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® 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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 14,485,161 |
Gross unrealized depreciation | (1,234,885) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 13,250,276 |
| |
Tax cost | $ 92,976,377 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (2,712,771) |
2019 | (14,114,488) |
Total capital loss carryforward | $ (16,827,259) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $113,596,737 and $116,937,409, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the MSCI All Country World Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .69% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Institutional Class. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 44,737 | $ 909 |
Class T | .25% | .25% | 49,885 | 590 |
Class B | .75% | .25% | 6,756 | 5,091 |
Class C | .75% | .25% | 69,996 | 8,663 |
| | | $ 171,374 | $ 15,253 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
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 |
| $ 6,517 |
Class A | 2,058 |
Class T | 124 |
Class B | 266 |
Class C | $ 8,965 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 41,809 | .24 |
Class T | 29,486 | .30 |
Class B | 2,047 | .31 |
Class C | 18,861 | .27 |
Institutional Class | 22,605 | .14 |
| $ 114,808 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3,266 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $94 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $10,450. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser 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, 2014. 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 |
| | |
Class A | 1.45% | $ 15,541 |
Class T | 1.70% | 15,058 |
Class B | 2.20% | 1,067 |
Class C | 2.20% | 8,687 |
| | $ 40,353 |
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 59,620 | $ - |
Institutional Class | 135,833 | 34,747 |
Total | $ 195,453 | $ 34,747 |
From net realized gain | | |
Class A | $ 158,986 | $ - |
Class T | 85,532 | - |
Class B | 537 | - |
Class C | 27,029 | - |
Institutional Class | 135,833 | - |
Total | $ 407,917 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 302,518 | 373,063 | $ 4,361,503 | $ 4,494,237 |
Reinvestment of distributions | 14,554 | - | 202,003 | - |
Shares redeemed | (478,212) | (496,412) | (7,046,437) | (5,849,205) |
Net increase (decrease) | (161,140) | (123,349) | $ (2,482,931) | $ (1,354,968) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class T | | | | |
Shares sold | 88,303 | 216,464 | $ 1,231,315 | $ 2,510,696 |
Reinvestment of distributions | 6,209 | - | 83,505 | - |
Shares redeemed | (146,722) | (321,703) | (2,052,048) | (3,651,942) |
Net increase (decrease) | (52,210) | (105,239) | $ (737,228) | $ (1,141,246) |
Class B | | | | |
Shares sold | 4,443 | 5,625 | $ 55,303 | $ 60,358 |
Reinvestment of distributions | 41 | - | 513 | - |
Shares redeemed | (14,461) | (45,845) | (186,472) | (485,095) |
Net increase (decrease) | (9,977) | (40,220) | $ (130,656) | $ (424,737) |
Class C | | | | |
Shares sold | 102,031 | 323,235 | $ 1,308,106 | $ 3,465,927 |
Reinvestment of distributions | 2,025 | - | 25,331 | - |
Shares redeemed | (115,288) | (258,872) | (1,506,803) | (2,771,491) |
Net increase (decrease) | (11,232) | 64,363 | $ (173,366) | $ 694,436 |
Institutional Class | | | | |
Shares sold | 327,365 | 283,059 | $ 5,060,777 | $ 3,455,485 |
Reinvestment of distributions | 17,076 | 2,789 | 245,726 | 30,990 |
Shares redeemed | (92,482) | (250,158) | (1,383,839) | (3,021,013) |
Net increase (decrease) | 251,959 | 35,690 | $ 3,922,664 | $ 465,462 |
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 14% 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
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
AGLO-USAN-0614
1.784880.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Global Equity Income
Fund - Institutional Class
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,062.40 | $ 7.41 |
HypotheticalA | | $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,060.20 | $ 8.68 |
HypotheticalA | | $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,057.70 | $ 11.22 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,062.70 | $ 6.14 |
HypotheticalA | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
JPMorgan Chase & Co. (United States of America, Banks) | 2.1 | 1.1 |
Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 2.1 | 1.8 |
Wells Fargo & Co. (United States of America, Banks) | 2.1 | 1.8 |
Chevron Corp. (United States of America, Oil, Gas & Consumable Fuels) | 1.9 | 1.6 |
Microsoft Corp. (United States of America, Software) | 1.9 | 1.4 |
| 10.1 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 22.7 | 19.7 |
Consumer Discretionary | 12.4 | 12.6 |
Information Technology | 11.3 | 8.6 |
Industrials | 11.2 | 14.5 |
Consumer Staples | 11.2 | 14.0 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United States of America | 41.3 | 37.2 |
United Kingdom | 9.8 | 11.1 |
Japan | 6.7 | 5.8 |
Sweden | 5.0 | 4.7 |
Switzerland | 3.9 | 2.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 96.5% | | | Stocks 95.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) 3.5% | | | Short-Term Investments and Net Other Assets (Liabilities) 4.1% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.5% |
| Shares | | Value |
Australia - 1.0% |
Telstra Corp. Ltd. | 18,578 | | $ 90,092 |
Bailiwick of Jersey - 0.9% |
Wolseley PLC | 1,429 | | 82,539 |
Belgium - 1.0% |
Anheuser-Busch InBev SA NV | 800 | | 87,197 |
Canada - 3.9% |
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 2,220 | | 62,566 |
Constellation Software, Inc. | 290 | | 64,228 |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 130 | | 56,683 |
Potash Corp. of Saskatchewan, Inc. | 2,250 | | 81,333 |
Suncor Energy, Inc. | 2,260 | | 87,179 |
TOTAL CANADA | | 351,989 |
Denmark - 0.3% |
Spar Nord Bank A/S | 2,800 | | 31,487 |
France - 2.3% |
Bureau Veritas SA | 3,018 | | 92,114 |
Total SA (a) | 1,684 | | 120,480 |
TOTAL FRANCE | | 212,594 |
Germany - 1.4% |
AURELIUS AG | 799 | | 29,663 |
CompuGroup Medical AG | 400 | | 10,660 |
Siemens AG | 662 | | 87,331 |
TOTAL GERMANY | | 127,654 |
Greece - 0.3% |
Greek Organization of Football Prognostics SA | 1,900 | | 30,314 |
Hong Kong - 1.1% |
HKT Trust/HKT Ltd. unit | 96,000 | | 100,421 |
Ireland - 2.7% |
Accenture PLC Class A | 879 | | 70,513 |
FBD Holdings PLC | 2,500 | | 60,159 |
Greencore Group PLC | 18,388 | | 81,062 |
Irish Continental Group PLC unit | 900 | | 36,166 |
TOTAL IRELAND | | 247,900 |
Israel - 1.4% |
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 1,200 | | 62,072 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,400 | | 68,404 |
TOTAL ISRAEL | | 130,476 |
Common Stocks - continued |
| Shares | | Value |
Italy - 0.5% |
Lottomatica SpA | 1,400 | | $ 41,060 |
Japan - 6.7% |
Aozora Bank Ltd. | 23,000 | | 68,391 |
Astellas Pharma, Inc. | 6,600 | | 73,401 |
Hoya Corp. | 2,100 | | 61,910 |
Japan Tobacco, Inc. | 4,200 | | 137,871 |
KDDI Corp. | 1,000 | | 53,230 |
Leopalace21 Corp. (a) | 5,400 | | 27,889 |
Monex Group, Inc. | 19,400 | | 64,898 |
Nippon Telegraph & Telephone Corp. | 1,300 | | 72,141 |
Workman Co. Ltd. | 1,100 | | 44,222 |
TOTAL JAPAN | | 603,953 |
Kenya - 0.5% |
Safaricom Ltd. | 318,850 | | 48,005 |
Korea (South) - 0.5% |
Coway Co. Ltd. | 569 | | 44,888 |
Luxembourg - 0.7% |
Altice S.A. | 1,100 | | 62,859 |
Netherlands - 2.6% |
Exact Holdings NV | 1,900 | | 66,954 |
Koninklijke Philips Electronics NV | 2,868 | | 91,814 |
LyondellBasell Industries NV Class A | 843 | | 77,978 |
TOTAL NETHERLANDS | | 236,746 |
Norway - 0.6% |
Gjensidige Forsikring ASA | 2,700 | | 49,782 |
Panama - 0.0% |
Copa Holdings SA Class A | 5 | | 676 |
Singapore - 1.3% |
United Overseas Bank Ltd. | 7,000 | | 121,496 |
South Africa - 3.1% |
Astral Foods Ltd. | 7,400 | | 67,174 |
Lewis Group Ltd. | 14,800 | | 87,783 |
Nampak Ltd. | 9,700 | | 36,143 |
Reunert Ltd. | 13,600 | | 89,197 |
TOTAL SOUTH AFRICA | | 280,297 |
Spain - 0.6% |
Atresmedia Corporacion de Medios de Comunicacion SA | 3,600 | | 51,593 |
Common Stocks - continued |
| Shares | | Value |
Sweden - 5.0% |
Eniro AB (a) | 1,833 | | $ 14,546 |
Intrum Justitia AB | 3,240 | | 93,729 |
Nordea Bank AB | 10,410 | | 150,414 |
Svenska Cellulosa AB (SCA) (B Shares) | 2,060 | | 57,692 |
Svenska Handelsbanken AB (A Shares) | 2,770 | | 139,007 |
TOTAL SWEDEN | | 455,388 |
Switzerland - 3.9% |
Roche Holding AG (participation certificate) | 650 | | 190,675 |
TE Connectivity Ltd. | 1,200 | | 70,776 |
UBS AG | 3,150 | | 65,879 |
Vontobel Holdings AG | 770 | | 30,140 |
TOTAL SWITZERLAND | | 357,470 |
Taiwan - 2.1% |
MediaTek, Inc. | 4,000 | | 62,588 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 33,000 | | 129,809 |
TOTAL TAIWAN | | 192,397 |
United Kingdom - 9.8% |
Brit PLC (a) | 7,600 | | 27,300 |
British American Tobacco PLC (United Kingdom) | 2,300 | | 132,813 |
Direct Line Insurance Group PLC | 14,700 | | 62,123 |
Dunelm Group PLC | 1,836 | | 29,031 |
Ensco PLC Class A | 1,254 | | 63,264 |
Exova Group Ltd. PLC (a) | 1,800 | | 6,694 |
GlaxoSmithKline PLC | 4,047 | | 111,821 |
Hilton Food Group PLC | 11,195 | | 100,840 |
ITV PLC | 14,700 | | 45,171 |
Reckitt Benckiser Group PLC | 736 | | 59,337 |
Taylor Wimpey PLC | 29,598 | | 52,522 |
The Restaurant Group PLC | 5,520 | | 58,157 |
Vodafone Group PLC | 19,243 | | 73,058 |
WH Smith PLC | 3,430 | | 63,356 |
TOTAL UNITED KINGDOM | | 885,487 |
United States of America - 41.3% |
AbbVie, Inc. | 1,288 | | 67,079 |
Access Midstream Partners LP | 1,076 | | 63,861 |
American Tower Corp. | 826 | | 68,988 |
Amgen, Inc. | 1,191 | | 133,094 |
ARAMARK Holdings Corp. | 997 | | 28,105 |
Bank of America Corp. | 7,187 | | 108,811 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Booz Allen Hamilton Holding Corp. Class A | 2,000 | | $ 46,480 |
Capital One Financial Corp. | 1,109 | | 81,955 |
Chevron Corp. | 1,403 | | 176,105 |
Comcast Corp. Class A | 1,858 | | 96,170 |
Community Trust Bancorp, Inc. | 1,477 | | 54,457 |
ConocoPhillips Co. | 1,807 | | 134,278 |
CVB Financial Corp. | 4,439 | | 64,188 |
Danaher Corp. | 725 | | 53,201 |
Darden Restaurants, Inc. | 700 | | 34,797 |
Dr. Pepper Snapple Group, Inc. | 1,566 | | 86,788 |
Dun & Bradstreet Corp. | 566 | | 62,690 |
Eli Lilly & Co. | 34 | | 2,009 |
FedEx Corp. | 510 | | 69,488 |
H&R Block, Inc. | 2,185 | | 62,098 |
Hubbell, Inc. Class B | 407 | | 47,912 |
Johnson & Johnson | 1,211 | | 122,662 |
Johnson Controls, Inc. | 1,567 | | 70,734 |
JPMorgan Chase & Co. | 3,463 | | 193,857 |
Lakeland Financial Corp. | 1,332 | | 48,751 |
Lorillard, Inc. | 1,214 | | 72,136 |
MasterCard, Inc. Class A | 924 | | 67,960 |
McGraw Hill Financial, Inc. | 862 | | 63,728 |
Merck & Co., Inc. | 1,807 | | 105,818 |
Microsoft Corp. | 4,264 | | 172,266 |
MPLX LP | 1,116 | | 60,409 |
National Penn Bancshares, Inc. | 3,571 | | 34,889 |
Oracle Corp. | 2,077 | | 84,908 |
Psychemedics Corp. | 137 | | 2,159 |
QUALCOMM, Inc. | 837 | | 65,880 |
Sempra Energy | 662 | | 65,280 |
SunTrust Banks, Inc. | 1,300 | | 49,738 |
The Boeing Co. | 649 | | 83,734 |
U.S. Bancorp | 3,261 | | 132,984 |
United Technologies Corp. | 1,027 | | 121,525 |
Verizon Communications, Inc. | 2,361 | | 110,330 |
Verizon Communications, Inc. CDI | 980 | | 45,805 |
VF Corp. | 1,573 | | 96,095 |
Visa, Inc. Class A | 361 | | 73,142 |
W.R. Grace & Co. (a) | 300 | | 27,630 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Wells Fargo & Co. | 3,765 | | $ 186,895 |
Western Gas Partners LP | 730 | | 49,640 |
TOTAL UNITED STATES OF AMERICA | | 3,751,509 |
TOTAL COMMON STOCKS (Cost $7,799,138) | 8,676,269
|
Nonconvertible Preferred Stocks - 1.0% |
| | | |
Germany - 1.0% |
Volkswagen AG (Cost $87,908) | 330 | | 88,864
|
Money Market Funds - 2.5% |
| | | |
Fidelity Cash Central Fund, 0.11% (b) (Cost $225,126) | 225,126 | | 225,126
|
TOTAL INVESTMENT PORTFOLIO - 99.0% (Cost $8,112,172) | | 8,990,259 |
NET OTHER ASSETS (LIABILITIES) - 1.0% | | 91,563 |
NET ASSETS - 100% | $ 9,081,822 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 173 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,102,365 | $ 1,102,365 | $ - | $ - |
Consumer Staples | 1,007,548 | 787,538 | 220,010 | - |
Energy | 755,216 | 634,736 | 120,480 | - |
Financials | 2,074,552 | 2,008,673 | 65,879 | - |
Health Care | 887,782 | 585,286 | 302,496 | - |
Industrials | 1,018,810 | 839,665 | 179,145 | - |
Information Technology | 1,037,414 | 907,605 | 129,809 | - |
Materials | 223,084 | 223,084 | - | - |
Telecommunication Services | 593,082 | 447,883 | 145,199 | - |
Utilities | 65,280 | 65,280 | - | - |
Money Market Funds | 225,126 | 225,126 | - | - |
Total Investments in Securities: | $ 8,990,259 | $ 7,827,241 | $ 1,163,018 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 109,356 |
Level 2 to Level 1 | $ 204,447 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $7,887,046) | $ 8,765,133 | |
Fidelity Central Funds (cost $225,126) | 225,126 | |
Total Investments (cost $8,112,172) | | $ 8,990,259 |
Cash | | 379 |
Receivable for investments sold | | 62,369 |
Receivable for fund shares sold | | 451 |
Dividends receivable | | 35,239 |
Distributions receivable from Fidelity Central Funds | | 17 |
Prepaid expenses | | 6 |
Receivable from investment adviser for expense reductions | | 35,043 |
Total assets | | 9,123,763 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 885 | |
Accrued management fee | 5,190 | |
Distribution and service plan fees payable | 3,611 | |
Other affiliated payables | 2,038 | |
Other payables and accrued expenses | 30,217 | |
Total liabilities | | 41,941 |
| | |
Net Assets | | $ 9,081,822 |
Net Assets consist of: | | |
Paid in capital | | $ 7,922,697 |
Undistributed net investment income | | 26,527 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 254,167 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 878,431 |
Net Assets | | $ 9,081,822 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($3,292,472 ÷ 260,756 shares) | | $ 12.63 |
| | |
Maximum offering price per share (100/94.25 of $12.63) | | $ 13.40 |
Class T: Net Asset Value and redemption price per share ($1,770,448 ÷ 140,273 shares) | | $ 12.62 |
| | |
Maximum offering price per share (100/96.50 of $12.62) | | $ 13.08 |
Class C: Net Asset Value and offering price per share ($2,711,038 ÷ 215,125 shares)A | | $ 12.60 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($1,307,864 ÷ 103,470 shares) | | $ 12.64 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 129,463 |
Special dividends | | 64,920 |
Income from Fidelity Central Funds | | 173 |
Income before foreign taxes withheld | | 194,556 |
Less foreign taxes withheld | | (9,441) |
Total income | | 185,115 |
| | |
Expenses | | |
Management fee | $ 28,557 | |
Transfer agent fees | 9,101 | |
Distribution and service plan fees | 19,318 | |
Accounting fees and expenses | 2,111 | |
Custodian fees and expenses | 12,077 | |
Independent trustees' compensation | 15 | |
Registration fees | 46,770 | |
Audit | 35,039 | |
Legal | 12 | |
Miscellaneous | 222 | |
Total expenses before reductions | 153,222 | |
Expense reductions | (84,923) | 68,299 |
Net investment income (loss) | | 116,816 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 271,967 | |
Foreign currency transactions | (891) | |
Total net realized gain (loss) | | 271,076 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 100,760 | |
Assets and liabilities in foreign currencies | 188 | |
Total change in net unrealized appreciation (depreciation) | | 100,948 |
Net gain (loss) | | 372,024 |
Net increase (decrease) in net assets resulting from operations | | $ 488,840 |
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, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 116,816 | $ 65,903 |
Net realized gain (loss) | 271,076 | 110,778 |
Change in net unrealized appreciation (depreciation) | 100,948 | 700,327 |
Net increase (decrease) in net assets resulting from operations | 488,840 | 877,008 |
Distributions to shareholders from net investment income | (90,289) | (63,596) |
Distributions to shareholders from net realized gain | (97,735) | (3,859) |
Total distributions | (188,024) | (67,455) |
Share transactions - net increase (decrease) | 2,719,164 | 2,177,438 |
Total increase (decrease) in net assets | 3,019,980 | 2,986,991 |
| | |
Net Assets | | |
Beginning of period | 6,061,842 | 3,074,851 |
End of period (including undistributed net investment income of $26,527 and $0, respectively) | $ 9,081,822 | $ 6,061,842 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.20 | $ 10.15 | $ 10.00 |
Income from Investment Operations | | | |
Net investment income (loss) E | .19 H | .19 | .09 |
Net realized and unrealized gain (loss) | .56 | 2.05 | .16 |
Total from investment operations | .75 | 2.24 | .25 |
Distributions from net investment income | (.14) | (.18) | (.10) |
Distributions from net realized gain | (.18) | (.01) | - |
Total distributions | (.32) | (.19) | (.10) |
Net asset value, end of period | $ 12.63 | $ 12.20 | $ 10.15 |
Total Return B,C,D | 6.24% | 22.28% | 2.51% |
Ratios to Average Net Assets F,J | | | |
Expenses before reductions | 3.56% A | 4.37% | 7.41% A |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% A |
Expenses net of all reductions | 1.45% A | 1.43% | 1.44% A |
Net investment income (loss) | 3.09% A,H | 1.66% | 1.89% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 3,292 | $ 2,115 | $ 756 |
Portfolio turnover rate G | 108% A | 78% | 36% K |
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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.50%.
I For the period May 2, 2012 (commencement of operations) to October 31, 2012.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.20 | $ 10.14 | $ 10.00 |
Income from Investment Operations | | | |
Net investment income (loss) E | .18 H | .16 | .08 |
Net realized and unrealized gain (loss) | .55 | 2.06 | .15 |
Total from investment operations | .73 | 2.22 | .23 |
Distributions from net investment income | (.13) | (.15) | (.09) |
Distributions from net realized gain | (.18) | (.01) | - |
Total distributions | (.31) | (.16) | (.09) |
Net asset value, end of period | $ 12.62 | $ 12.20 | $ 10.14 |
Total Return B,C,D | 6.02% | 22.11% | 2.31% |
Ratios to Average Net Assets F,J | | | |
Expenses before reductions | 3.75% A | 4.80% | 7.68% A |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.70% A |
Expenses net of all reductions | 1.70% A | 1.68% | 1.69% A |
Net investment income (loss) | 2.84% A,H | 1.41% | 1.64% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 1,770 | $ 1,270 | $ 714 |
Portfolio turnover rate G | 108% A | 78% | 36% K |
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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.25%.
I For the period May 2, 2012 (commencement of operations) to October 31, 2012.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.18 | $ 10.14 | $ 10.00 |
Income from Investment Operations | | | |
Net investment income (loss) E | .14 H | .10 | .06 |
Net realized and unrealized gain (loss) | .55 | 2.06 | .15 |
Total from investment operations | .69 | 2.16 | .21 |
Distributions from net investment income | (.11) | (.11) | (.07) |
Distributions from net realized gain | (.17) | (.01) | - |
Total distributions | (.27) K | (.12) | (.07) |
Net asset value, end of period | $ 12.60 | $ 12.18 | $ 10.14 |
Total Return B,C,D | 5.77% | 21.40% | 2.12% |
Ratios to Average Net Assets F,J | | | |
Expenses before reductions | 4.36% A | 5.26% | 8.19% A |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.20% A |
Expenses net of all reductions | 2.20% A | 2.18% | 2.19% A |
Net investment income (loss) | 2.34% A,H | .91% | 1.14% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,711 | $ 1,445 | $ 666 |
Portfolio turnover rate G | 108% A | 78% | 36% L |
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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .75%.
I For the period May 2, 2012 (commencement of operations) to October 31, 2012.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 Total distributions of $.27 per share is comprised of distributions from net investment income of $.105 and distributions from net realized gain of $.169 per share.
L Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.22 | $ 10.15 | $ 10.00 |
Income from Investment Operations | | | |
Net investment income (loss) D | .21 G | .21 | .10 |
Net realized and unrealized gain (loss) | .55 | 2.07 | .16 |
Total from investment operations | .76 | 2.28 | .26 |
Distributions from net investment income | (.16) | (.20) | (.11) |
Distributions from net realized gain | (.18) | (.01) | - |
Total distributions | (.34) | (.21) | (.11) |
Net asset value, end of period | $ 12.64 | $ 12.22 | $ 10.15 |
Total Return B,C | 6.27% | 22.71% | 2.61% |
Ratios to Average Net Assets E,I | | | |
Expenses before reductions | 3.15% A | 4.46% | 7.23% A |
Expenses net of fee waivers, if any | 1.20% A | 1.20% | 1.20% A |
Expenses net of all reductions | 1.20% A | 1.18% | 1.19% A |
Net investment income (loss) | 3.34% A,G | 1.91% | 2.14% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 1,308 | $ 1,231 | $ 939 |
Portfolio turnover rate F | 108% A | 78% | 36% J |
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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.75%.
H For the period May 2, 2012 (commencement of operations) to October 31, 2012.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® Global Equity Income 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards, passive foreign investment companies (PFIC), partnerships, equity-debt classifications, and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,030,802 |
Gross unrealized depreciation | (164,960) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 865,842 |
| |
Tax cost | $ 8,124,417 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,777,638 and $4,203,101, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% 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, except for the Institutional Class. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
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% | $ 3,590 | $ |
Class T | .25% | .25% | 4,340 | |
Class C | .75% | .25% | 11,388 |
|
| | | $ 19,318 | $ |
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, and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 2,588 |
Class T | 919 |
Class C* | 290 |
| $ 3,797 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 3,390 | .24 |
Class T | 2,021 | .23 |
Class C | 2,959 | .26 |
Institutional Class | 731 | .12 |
| $ 9,101 | |
* Annualized
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $65 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $7 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
The investment adviser 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, 2014. 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 |
Class A | 1.45% | $ 30,301 |
Class T | 1.70% | 17,731 |
Class C | 2.20% | 24,543 |
Institutional Class | 1.20% | 12,289 |
| | $ 84,864 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $56 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 $3.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 34,357 | $ 21,341 |
Class T | 18,523 | 12,502 |
Class C | 21,786 | 10,500 |
Institutional Class | 15,623 | 19,253 |
Total | $ 90,289 | $ 63,596 |
From net realized gain | | |
Class A | $ 37,020 | $ 1,245 |
Class T | 20,549 | 822 |
Class C | 22,043 | 950 |
Institutional Class | 18,123 | 842 |
Total | $ 97,735 | $ 3,859 |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended, April 30, 2014 | Year ended October 31, 2013 | Six months ended, April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 104,022 | 119,194 | $ 1,285,875 | $ 1,351,801 |
Reinvestment of distributions | 5,578 | 1,927 | 68,773 | 21,243 |
Shares redeemed | (22,149) | (22,370) | (276,458) | (259,766) |
Net increase (decrease) | 87,451 | 98,751 | $ 1,078,190 | $ 1,113,278 |
Class T | | | | |
Shares sold | 68,886 | 33,371 | $ 845,256 | $ 382,233 |
Reinvestment of distributions | 3,076 | 1,184 | 37,952 | 12,976 |
Shares redeemed | (35,819) | (804) | (450,883) | (9,101) |
Net increase (decrease) | 36,143 | 33,751 | $ 432,325 | $ 386,108 |
Class C | | | | |
Shares sold | 121,800 | 88,544 | $ 1,492,893 | $ 997,819 |
Reinvestment of distributions | 3,375 | 1,023 | 41,647 | 11,159 |
Shares redeemed | (28,697) | (36,610) | (358,167) | (423,633) |
Net increase (decrease) | 96,478 | 52,957 | $ 1,176,373 | $ 585,345 |
Institutional Class | | | | |
Shares sold | 5,868 | 6,507 | $ 73,451 | $ 73,274 |
Reinvestment of distributions | 2,729 | 1,821 | 33,600 | 19,977 |
Shares redeemed | (5,897) | (56) | (74,775) | (544) |
Net increase (decrease) | 2,700 | 8,272 | $ 32,276 | $ 92,707 |
Semiannual Report
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were the owners of record of 31% 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 Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
AGEDI-USAN-0614
1.938144.101
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Global Equity Income
Fund - Class A, Class T, and Class C
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,062.40 | $ 7.41 |
HypotheticalA | | $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,060.20 | $ 8.68 |
HypotheticalA | | $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,057.70 | $ 11.22 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,062.70 | $ 6.14 |
HypotheticalA | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
JPMorgan Chase & Co. (United States of America, Banks) | 2.1 | 1.1 |
Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 2.1 | 1.8 |
Wells Fargo & Co. (United States of America, Banks) | 2.1 | 1.8 |
Chevron Corp. (United States of America, Oil, Gas & Consumable Fuels) | 1.9 | 1.6 |
Microsoft Corp. (United States of America, Software) | 1.9 | 1.4 |
| 10.1 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 22.7 | 19.7 |
Consumer Discretionary | 12.4 | 12.6 |
Information Technology | 11.3 | 8.6 |
Industrials | 11.2 | 14.5 |
Consumer Staples | 11.2 | 14.0 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United States of America | 41.3 | 37.2 |
United Kingdom | 9.8 | 11.1 |
Japan | 6.7 | 5.8 |
Sweden | 5.0 | 4.7 |
Switzerland | 3.9 | 2.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 96.5% | | | Stocks 95.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) 3.5% | | | Short-Term Investments and Net Other Assets (Liabilities) 4.1% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.5% |
| Shares | | Value |
Australia - 1.0% |
Telstra Corp. Ltd. | 18,578 | | $ 90,092 |
Bailiwick of Jersey - 0.9% |
Wolseley PLC | 1,429 | | 82,539 |
Belgium - 1.0% |
Anheuser-Busch InBev SA NV | 800 | | 87,197 |
Canada - 3.9% |
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 2,220 | | 62,566 |
Constellation Software, Inc. | 290 | | 64,228 |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 130 | | 56,683 |
Potash Corp. of Saskatchewan, Inc. | 2,250 | | 81,333 |
Suncor Energy, Inc. | 2,260 | | 87,179 |
TOTAL CANADA | | 351,989 |
Denmark - 0.3% |
Spar Nord Bank A/S | 2,800 | | 31,487 |
France - 2.3% |
Bureau Veritas SA | 3,018 | | 92,114 |
Total SA (a) | 1,684 | | 120,480 |
TOTAL FRANCE | | 212,594 |
Germany - 1.4% |
AURELIUS AG | 799 | | 29,663 |
CompuGroup Medical AG | 400 | | 10,660 |
Siemens AG | 662 | | 87,331 |
TOTAL GERMANY | | 127,654 |
Greece - 0.3% |
Greek Organization of Football Prognostics SA | 1,900 | | 30,314 |
Hong Kong - 1.1% |
HKT Trust/HKT Ltd. unit | 96,000 | | 100,421 |
Ireland - 2.7% |
Accenture PLC Class A | 879 | | 70,513 |
FBD Holdings PLC | 2,500 | | 60,159 |
Greencore Group PLC | 18,388 | | 81,062 |
Irish Continental Group PLC unit | 900 | | 36,166 |
TOTAL IRELAND | | 247,900 |
Israel - 1.4% |
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 1,200 | | 62,072 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,400 | | 68,404 |
TOTAL ISRAEL | | 130,476 |
Common Stocks - continued |
| Shares | | Value |
Italy - 0.5% |
Lottomatica SpA | 1,400 | | $ 41,060 |
Japan - 6.7% |
Aozora Bank Ltd. | 23,000 | | 68,391 |
Astellas Pharma, Inc. | 6,600 | | 73,401 |
Hoya Corp. | 2,100 | | 61,910 |
Japan Tobacco, Inc. | 4,200 | | 137,871 |
KDDI Corp. | 1,000 | | 53,230 |
Leopalace21 Corp. (a) | 5,400 | | 27,889 |
Monex Group, Inc. | 19,400 | | 64,898 |
Nippon Telegraph & Telephone Corp. | 1,300 | | 72,141 |
Workman Co. Ltd. | 1,100 | | 44,222 |
TOTAL JAPAN | | 603,953 |
Kenya - 0.5% |
Safaricom Ltd. | 318,850 | | 48,005 |
Korea (South) - 0.5% |
Coway Co. Ltd. | 569 | | 44,888 |
Luxembourg - 0.7% |
Altice S.A. | 1,100 | | 62,859 |
Netherlands - 2.6% |
Exact Holdings NV | 1,900 | | 66,954 |
Koninklijke Philips Electronics NV | 2,868 | | 91,814 |
LyondellBasell Industries NV Class A | 843 | | 77,978 |
TOTAL NETHERLANDS | | 236,746 |
Norway - 0.6% |
Gjensidige Forsikring ASA | 2,700 | | 49,782 |
Panama - 0.0% |
Copa Holdings SA Class A | 5 | | 676 |
Singapore - 1.3% |
United Overseas Bank Ltd. | 7,000 | | 121,496 |
South Africa - 3.1% |
Astral Foods Ltd. | 7,400 | | 67,174 |
Lewis Group Ltd. | 14,800 | | 87,783 |
Nampak Ltd. | 9,700 | | 36,143 |
Reunert Ltd. | 13,600 | | 89,197 |
TOTAL SOUTH AFRICA | | 280,297 |
Spain - 0.6% |
Atresmedia Corporacion de Medios de Comunicacion SA | 3,600 | | 51,593 |
Common Stocks - continued |
| Shares | | Value |
Sweden - 5.0% |
Eniro AB (a) | 1,833 | | $ 14,546 |
Intrum Justitia AB | 3,240 | | 93,729 |
Nordea Bank AB | 10,410 | | 150,414 |
Svenska Cellulosa AB (SCA) (B Shares) | 2,060 | | 57,692 |
Svenska Handelsbanken AB (A Shares) | 2,770 | | 139,007 |
TOTAL SWEDEN | | 455,388 |
Switzerland - 3.9% |
Roche Holding AG (participation certificate) | 650 | | 190,675 |
TE Connectivity Ltd. | 1,200 | | 70,776 |
UBS AG | 3,150 | | 65,879 |
Vontobel Holdings AG | 770 | | 30,140 |
TOTAL SWITZERLAND | | 357,470 |
Taiwan - 2.1% |
MediaTek, Inc. | 4,000 | | 62,588 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 33,000 | | 129,809 |
TOTAL TAIWAN | | 192,397 |
United Kingdom - 9.8% |
Brit PLC (a) | 7,600 | | 27,300 |
British American Tobacco PLC (United Kingdom) | 2,300 | | 132,813 |
Direct Line Insurance Group PLC | 14,700 | | 62,123 |
Dunelm Group PLC | 1,836 | | 29,031 |
Ensco PLC Class A | 1,254 | | 63,264 |
Exova Group Ltd. PLC (a) | 1,800 | | 6,694 |
GlaxoSmithKline PLC | 4,047 | | 111,821 |
Hilton Food Group PLC | 11,195 | | 100,840 |
ITV PLC | 14,700 | | 45,171 |
Reckitt Benckiser Group PLC | 736 | | 59,337 |
Taylor Wimpey PLC | 29,598 | | 52,522 |
The Restaurant Group PLC | 5,520 | | 58,157 |
Vodafone Group PLC | 19,243 | | 73,058 |
WH Smith PLC | 3,430 | | 63,356 |
TOTAL UNITED KINGDOM | | 885,487 |
United States of America - 41.3% |
AbbVie, Inc. | 1,288 | | 67,079 |
Access Midstream Partners LP | 1,076 | | 63,861 |
American Tower Corp. | 826 | | 68,988 |
Amgen, Inc. | 1,191 | | 133,094 |
ARAMARK Holdings Corp. | 997 | | 28,105 |
Bank of America Corp. | 7,187 | | 108,811 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Booz Allen Hamilton Holding Corp. Class A | 2,000 | | $ 46,480 |
Capital One Financial Corp. | 1,109 | | 81,955 |
Chevron Corp. | 1,403 | | 176,105 |
Comcast Corp. Class A | 1,858 | | 96,170 |
Community Trust Bancorp, Inc. | 1,477 | | 54,457 |
ConocoPhillips Co. | 1,807 | | 134,278 |
CVB Financial Corp. | 4,439 | | 64,188 |
Danaher Corp. | 725 | | 53,201 |
Darden Restaurants, Inc. | 700 | | 34,797 |
Dr. Pepper Snapple Group, Inc. | 1,566 | | 86,788 |
Dun & Bradstreet Corp. | 566 | | 62,690 |
Eli Lilly & Co. | 34 | | 2,009 |
FedEx Corp. | 510 | | 69,488 |
H&R Block, Inc. | 2,185 | | 62,098 |
Hubbell, Inc. Class B | 407 | | 47,912 |
Johnson & Johnson | 1,211 | | 122,662 |
Johnson Controls, Inc. | 1,567 | | 70,734 |
JPMorgan Chase & Co. | 3,463 | | 193,857 |
Lakeland Financial Corp. | 1,332 | | 48,751 |
Lorillard, Inc. | 1,214 | | 72,136 |
MasterCard, Inc. Class A | 924 | | 67,960 |
McGraw Hill Financial, Inc. | 862 | | 63,728 |
Merck & Co., Inc. | 1,807 | | 105,818 |
Microsoft Corp. | 4,264 | | 172,266 |
MPLX LP | 1,116 | | 60,409 |
National Penn Bancshares, Inc. | 3,571 | | 34,889 |
Oracle Corp. | 2,077 | | 84,908 |
Psychemedics Corp. | 137 | | 2,159 |
QUALCOMM, Inc. | 837 | | 65,880 |
Sempra Energy | 662 | | 65,280 |
SunTrust Banks, Inc. | 1,300 | | 49,738 |
The Boeing Co. | 649 | | 83,734 |
U.S. Bancorp | 3,261 | | 132,984 |
United Technologies Corp. | 1,027 | | 121,525 |
Verizon Communications, Inc. | 2,361 | | 110,330 |
Verizon Communications, Inc. CDI | 980 | | 45,805 |
VF Corp. | 1,573 | | 96,095 |
Visa, Inc. Class A | 361 | | 73,142 |
W.R. Grace & Co. (a) | 300 | | 27,630 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Wells Fargo & Co. | 3,765 | | $ 186,895 |
Western Gas Partners LP | 730 | | 49,640 |
TOTAL UNITED STATES OF AMERICA | | 3,751,509 |
TOTAL COMMON STOCKS (Cost $7,799,138) | 8,676,269
|
Nonconvertible Preferred Stocks - 1.0% |
| | | |
Germany - 1.0% |
Volkswagen AG (Cost $87,908) | 330 | | 88,864
|
Money Market Funds - 2.5% |
| | | |
Fidelity Cash Central Fund, 0.11% (b) (Cost $225,126) | 225,126 | | 225,126
|
TOTAL INVESTMENT PORTFOLIO - 99.0% (Cost $8,112,172) | | 8,990,259 |
NET OTHER ASSETS (LIABILITIES) - 1.0% | | 91,563 |
NET ASSETS - 100% | $ 9,081,822 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 173 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,102,365 | $ 1,102,365 | $ - | $ - |
Consumer Staples | 1,007,548 | 787,538 | 220,010 | - |
Energy | 755,216 | 634,736 | 120,480 | - |
Financials | 2,074,552 | 2,008,673 | 65,879 | - |
Health Care | 887,782 | 585,286 | 302,496 | - |
Industrials | 1,018,810 | 839,665 | 179,145 | - |
Information Technology | 1,037,414 | 907,605 | 129,809 | - |
Materials | 223,084 | 223,084 | - | - |
Telecommunication Services | 593,082 | 447,883 | 145,199 | - |
Utilities | 65,280 | 65,280 | - | - |
Money Market Funds | 225,126 | 225,126 | - | - |
Total Investments in Securities: | $ 8,990,259 | $ 7,827,241 | $ 1,163,018 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 109,356 |
Level 2 to Level 1 | $ 204,447 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $7,887,046) | $ 8,765,133 | |
Fidelity Central Funds (cost $225,126) | 225,126 | |
Total Investments (cost $8,112,172) | | $ 8,990,259 |
Cash | | 379 |
Receivable for investments sold | | 62,369 |
Receivable for fund shares sold | | 451 |
Dividends receivable | | 35,239 |
Distributions receivable from Fidelity Central Funds | | 17 |
Prepaid expenses | | 6 |
Receivable from investment adviser for expense reductions | | 35,043 |
Total assets | | 9,123,763 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 885 | |
Accrued management fee | 5,190 | |
Distribution and service plan fees payable | 3,611 | |
Other affiliated payables | 2,038 | |
Other payables and accrued expenses | 30,217 | |
Total liabilities | | 41,941 |
| | |
Net Assets | | $ 9,081,822 |
Net Assets consist of: | | |
Paid in capital | | $ 7,922,697 |
Undistributed net investment income | | 26,527 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 254,167 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 878,431 |
Net Assets | | $ 9,081,822 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($3,292,472 ÷ 260,756 shares) | | $ 12.63 |
| | |
Maximum offering price per share (100/94.25 of $12.63) | | $ 13.40 |
Class T: Net Asset Value and redemption price per share ($1,770,448 ÷ 140,273 shares) | | $ 12.62 |
| | |
Maximum offering price per share (100/96.50 of $12.62) | | $ 13.08 |
Class C: Net Asset Value and offering price per share ($2,711,038 ÷ 215,125 shares)A | | $ 12.60 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($1,307,864 ÷ 103,470 shares) | | $ 12.64 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 129,463 |
Special dividends | | 64,920 |
Income from Fidelity Central Funds | | 173 |
Income before foreign taxes withheld | | 194,556 |
Less foreign taxes withheld | | (9,441) |
Total income | | 185,115 |
| | |
Expenses | | |
Management fee | $ 28,557 | |
Transfer agent fees | 9,101 | |
Distribution and service plan fees | 19,318 | |
Accounting fees and expenses | 2,111 | |
Custodian fees and expenses | 12,077 | |
Independent trustees' compensation | 15 | |
Registration fees | 46,770 | |
Audit | 35,039 | |
Legal | 12 | |
Miscellaneous | 222 | |
Total expenses before reductions | 153,222 | |
Expense reductions | (84,923) | 68,299 |
Net investment income (loss) | | 116,816 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 271,967 | |
Foreign currency transactions | (891) | |
Total net realized gain (loss) | | 271,076 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 100,760 | |
Assets and liabilities in foreign currencies | 188 | |
Total change in net unrealized appreciation (depreciation) | | 100,948 |
Net gain (loss) | | 372,024 |
Net increase (decrease) in net assets resulting from operations | | $ 488,840 |
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, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 116,816 | $ 65,903 |
Net realized gain (loss) | 271,076 | 110,778 |
Change in net unrealized appreciation (depreciation) | 100,948 | 700,327 |
Net increase (decrease) in net assets resulting from operations | 488,840 | 877,008 |
Distributions to shareholders from net investment income | (90,289) | (63,596) |
Distributions to shareholders from net realized gain | (97,735) | (3,859) |
Total distributions | (188,024) | (67,455) |
Share transactions - net increase (decrease) | 2,719,164 | 2,177,438 |
Total increase (decrease) in net assets | 3,019,980 | 2,986,991 |
| | |
Net Assets | | |
Beginning of period | 6,061,842 | 3,074,851 |
End of period (including undistributed net investment income of $26,527 and $0, respectively) | $ 9,081,822 | $ 6,061,842 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.20 | $ 10.15 | $ 10.00 |
Income from Investment Operations | | | |
Net investment income (loss) E | .19 H | .19 | .09 |
Net realized and unrealized gain (loss) | .56 | 2.05 | .16 |
Total from investment operations | .75 | 2.24 | .25 |
Distributions from net investment income | (.14) | (.18) | (.10) |
Distributions from net realized gain | (.18) | (.01) | - |
Total distributions | (.32) | (.19) | (.10) |
Net asset value, end of period | $ 12.63 | $ 12.20 | $ 10.15 |
Total Return B,C,D | 6.24% | 22.28% | 2.51% |
Ratios to Average Net Assets F,J | | | |
Expenses before reductions | 3.56% A | 4.37% | 7.41% A |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% A |
Expenses net of all reductions | 1.45% A | 1.43% | 1.44% A |
Net investment income (loss) | 3.09% A,H | 1.66% | 1.89% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 3,292 | $ 2,115 | $ 756 |
Portfolio turnover rate G | 108% A | 78% | 36% K |
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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.50%.
I For the period May 2, 2012 (commencement of operations) to October 31, 2012.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.20 | $ 10.14 | $ 10.00 |
Income from Investment Operations | | | |
Net investment income (loss) E | .18 H | .16 | .08 |
Net realized and unrealized gain (loss) | .55 | 2.06 | .15 |
Total from investment operations | .73 | 2.22 | .23 |
Distributions from net investment income | (.13) | (.15) | (.09) |
Distributions from net realized gain | (.18) | (.01) | - |
Total distributions | (.31) | (.16) | (.09) |
Net asset value, end of period | $ 12.62 | $ 12.20 | $ 10.14 |
Total Return B,C,D | 6.02% | 22.11% | 2.31% |
Ratios to Average Net Assets F,J | | | |
Expenses before reductions | 3.75% A | 4.80% | 7.68% A |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.70% A |
Expenses net of all reductions | 1.70% A | 1.68% | 1.69% A |
Net investment income (loss) | 2.84% A,H | 1.41% | 1.64% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 1,770 | $ 1,270 | $ 714 |
Portfolio turnover rate G | 108% A | 78% | 36% K |
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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.25%.
I For the period May 2, 2012 (commencement of operations) to October 31, 2012.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.18 | $ 10.14 | $ 10.00 |
Income from Investment Operations | | | |
Net investment income (loss) E | .14 H | .10 | .06 |
Net realized and unrealized gain (loss) | .55 | 2.06 | .15 |
Total from investment operations | .69 | 2.16 | .21 |
Distributions from net investment income | (.11) | (.11) | (.07) |
Distributions from net realized gain | (.17) | (.01) | - |
Total distributions | (.27) K | (.12) | (.07) |
Net asset value, end of period | $ 12.60 | $ 12.18 | $ 10.14 |
Total Return B,C,D | 5.77% | 21.40% | 2.12% |
Ratios to Average Net Assets F,J | | | |
Expenses before reductions | 4.36% A | 5.26% | 8.19% A |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.20% A |
Expenses net of all reductions | 2.20% A | 2.18% | 2.19% A |
Net investment income (loss) | 2.34% A,H | .91% | 1.14% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,711 | $ 1,445 | $ 666 |
Portfolio turnover rate G | 108% A | 78% | 36% L |
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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .75%.
I For the period May 2, 2012 (commencement of operations) to October 31, 2012.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 Total distributions of $.27 per share is comprised of distributions from net investment income of $.105 and distributions from net realized gain of $.169 per share.
L Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.22 | $ 10.15 | $ 10.00 |
Income from Investment Operations | | | |
Net investment income (loss) D | .21 G | .21 | .10 |
Net realized and unrealized gain (loss) | .55 | 2.07 | .16 |
Total from investment operations | .76 | 2.28 | .26 |
Distributions from net investment income | (.16) | (.20) | (.11) |
Distributions from net realized gain | (.18) | (.01) | - |
Total distributions | (.34) | (.21) | (.11) |
Net asset value, end of period | $ 12.64 | $ 12.22 | $ 10.15 |
Total Return B,C | 6.27% | 22.71% | 2.61% |
Ratios to Average Net Assets E,I | | | |
Expenses before reductions | 3.15% A | 4.46% | 7.23% A |
Expenses net of fee waivers, if any | 1.20% A | 1.20% | 1.20% A |
Expenses net of all reductions | 1.20% A | 1.18% | 1.19% A |
Net investment income (loss) | 3.34% A,G | 1.91% | 2.14% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 1,308 | $ 1,231 | $ 939 |
Portfolio turnover rate F | 108% A | 78% | 36% J |
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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.75%.
H For the period May 2, 2012 (commencement of operations) to October 31, 2012.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® Global Equity Income 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 has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards, passive foreign investment companies (PFIC), partnerships, equity-debt classifications, and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,030,802 |
Gross unrealized depreciation | (164,960) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 865,842 |
| |
Tax cost | $ 8,124,417 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,777,638 and $4,203,101, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% 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, except for the Institutional Class. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
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% | $ 3,590 | $ |
Class T | .25% | .25% | 4,340 | |
Class C | .75% | .25% | 11,388 |
|
| | | $ 19,318 | $ |
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, and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 2,588 |
Class T | 919 |
Class C* | 290 |
| $ 3,797 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 3,390 | .24 |
Class T | 2,021 | .23 |
Class C | 2,959 | .26 |
Institutional Class | 731 | .12 |
| $ 9,101 | |
* Annualized
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $65 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $7 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
The investment adviser 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, 2014. 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 |
Class A | 1.45% | $ 30,301 |
Class T | 1.70% | 17,731 |
Class C | 2.20% | 24,543 |
Institutional Class | 1.20% | 12,289 |
| | $ 84,864 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $56 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 $3.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 34,357 | $ 21,341 |
Class T | 18,523 | 12,502 |
Class C | 21,786 | 10,500 |
Institutional Class | 15,623 | 19,253 |
Total | $ 90,289 | $ 63,596 |
From net realized gain | | |
Class A | $ 37,020 | $ 1,245 |
Class T | 20,549 | 822 |
Class C | 22,043 | 950 |
Institutional Class | 18,123 | 842 |
Total | $ 97,735 | $ 3,859 |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended, April 30, 2014 | Year ended October 31, 2013 | Six months ended, April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 104,022 | 119,194 | $ 1,285,875 | $ 1,351,801 |
Reinvestment of distributions | 5,578 | 1,927 | 68,773 | 21,243 |
Shares redeemed | (22,149) | (22,370) | (276,458) | (259,766) |
Net increase (decrease) | 87,451 | 98,751 | $ 1,078,190 | $ 1,113,278 |
Class T | | | | |
Shares sold | 68,886 | 33,371 | $ 845,256 | $ 382,233 |
Reinvestment of distributions | 3,076 | 1,184 | 37,952 | 12,976 |
Shares redeemed | (35,819) | (804) | (450,883) | (9,101) |
Net increase (decrease) | 36,143 | 33,751 | $ 432,325 | $ 386,108 |
Class C | | | | |
Shares sold | 121,800 | 88,544 | $ 1,492,893 | $ 997,819 |
Reinvestment of distributions | 3,375 | 1,023 | 41,647 | 11,159 |
Shares redeemed | (28,697) | (36,610) | (358,167) | (423,633) |
Net increase (decrease) | 96,478 | 52,957 | $ 1,176,373 | $ 585,345 |
Institutional Class | | | | |
Shares sold | 5,868 | 6,507 | $ 73,451 | $ 73,274 |
Reinvestment of distributions | 2,729 | 1,821 | 33,600 | 19,977 |
Shares redeemed | (5,897) | (56) | (74,775) | (544) |
Net increase (decrease) | 2,700 | 8,272 | $ 32,276 | $ 92,707 |
Semiannual Report
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were the owners of record of 31% 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 Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
AGED-USAN-0614
1.938153.101
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
International
Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,033.50 | $ 7.31 |
HypotheticalA | | $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,032.80 | $ 8.57 |
HypotheticalA | | $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,030.00 | $ 11.07 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,030.10 | $ 11.07 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,035.40 | $ 6.06 |
HypotheticalA | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Bayer AG (Germany, Pharmaceuticals) | 0.9 | 0.8 |
British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 0.8 | 0.9 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 0.8 | 0.0 |
SoftBank Corp. (Japan, Wireless Telecommunication Services) | 0.8 | 0.6 |
Novo Nordisk A/S Series B sponsored ADR (Denmark, Pharmaceuticals) | 0.7 | 0.6 |
| 4.0 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Consumer Discretionary | 23.0 | 24.0 |
Industrials | 21.0 | 18.3 |
Information Technology | 12.9 | 9.4 |
Health Care | 12.7 | 7.8 |
Financials | 10.3 | 17.1 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United States of America | 16.6 | 12.2 |
United Kingdom | 16.1 | 16.3 |
Japan | 10.1 | 13.4 |
Germany | 5.6 | 6.7 |
France | 5.3 | 7.0 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 99.0% | | | Stocks 99.6% | |
| Short-Term Investments and Net Other Assets (Liabilities) 1.0% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.4% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% |
| Shares | | Value |
Australia - 3.1% |
Amcor Ltd. | 40,561 | | $ 387,739 |
Carsales.com Ltd. | 47,089 | | 474,641 |
CSL Ltd. | 9,611 | | 610,985 |
DuluxGroup Ltd. | 77,619 | | 413,179 |
Flight Centre Travel Group Ltd. | 8,295 | | 414,200 |
iProperty Group Ltd. (a) | 180,177 | | 435,200 |
Ramsay Health Care Ltd. | 9,533 | | 396,844 |
realestate.com.au Ltd. | 8,861 | | 385,005 |
SEEK Ltd. | 28,807 | | 447,456 |
Sydney Airport unit | 96,573 | | 378,603 |
TOTAL AUSTRALIA | | 4,343,852 |
Austria - 0.3% |
Andritz AG | 6,146 | | 381,440 |
Bailiwick of Jersey - 1.5% |
Delphi Automotive PLC | 5,400 | | 360,936 |
Experian PLC | 27,331 | | 524,215 |
Shire PLC | 12,270 | | 701,746 |
WPP PLC | 27,000 | | 582,163 |
TOTAL BAILIWICK OF JERSEY | | 2,169,060 |
Belgium - 1.0% |
Anheuser-Busch InBev SA NV (d) | 8,780 | | 956,984 |
Arseus NV | 7,100 | | 402,873 |
TOTAL BELGIUM | | 1,359,857 |
Bermuda - 0.6% |
Credicorp Ltd. (United States) | 2,920 | | 435,810 |
Signet Jewelers Ltd. | 3,700 | | 374,884 |
TOTAL BERMUDA | | 810,694 |
Brazil - 2.7% |
BB Seguridade Participacoes SA | 39,400 | | 461,721 |
CCR SA | 52,700 | | 412,430 |
Cielo SA | 27,120 | | 480,431 |
Estacio Participacoes SA | 38,300 | | 410,182 |
Kroton Educacional SA | 19,000 | | 406,969 |
Linx SA | 18,000 | | 392,815 |
Qualicorp SA (a) | 41,500 | | 403,321 |
Souza Cruz SA | 45,800 | | 417,998 |
Ultrapar Participacoes SA | 18,800 | | 471,992 |
TOTAL BRAZIL | | 3,857,859 |
Common Stocks - continued |
| Shares | | Value |
British Virgin Islands - 0.3% |
Mail.Ru Group Ltd. GDR (Reg. S) (a) | 18,000 | | $ 489,060 |
Canada - 3.6% |
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 17,100 | | 481,930 |
AutoCanada, Inc. | 5,400 | | 344,875 |
Canadian National Railway Co. | 11,800 | | 691,173 |
Canadian Pacific Railway Ltd. | 3,900 | | 608,956 |
CGI Group, Inc. Class A (sub. vtg.) (a) | 13,200 | | 475,949 |
Cineplex, Inc. (d) | 9,360 | | 352,777 |
Constellation Software, Inc. | 1,550 | | 343,290 |
Jean Coutu Group, Inc. Class A (sub. vtg.) | 19,200 | | 386,960 |
Stantec, Inc. | 6,300 | | 373,384 |
Stella-Jones, Inc. | 12,900 | | 352,615 |
Valeant Pharmaceuticals International (Canada) (a) | 5,700 | | 762,236 |
TOTAL CANADA | | 5,174,145 |
Cayman Islands - 3.1% |
51job, Inc. sponsored ADR (a) | 6,400 | | 431,616 |
Autohome, Inc. ADR Class A | 12,100 | | 387,563 |
Baidu.com, Inc. sponsored ADR (a) | 2,900 | | 446,165 |
Bitauto Holdings Ltd. ADR (a) | 12,788 | | 458,194 |
Melco Crown Entertainment Ltd. sponsored ADR | 11,900 | | 406,742 |
MGM China Holdings Ltd. | 108,800 | | 378,901 |
Sands China Ltd. | 71,600 | | 522,712 |
SouFun Holdings Ltd. ADR | 35,410 | | 416,776 |
Tencent Holdings Ltd. | 14,800 | | 922,405 |
TOTAL CAYMAN ISLANDS | | 4,371,074 |
Denmark - 1.3% |
Coloplast A/S Series B | 5,200 | | 436,297 |
Novo Nordisk A/S Series B sponsored ADR | 21,200 | | 962,268 |
Vestas Wind Systems A/S (a) | 9,900 | | 439,428 |
TOTAL DENMARK | | 1,837,993 |
Finland - 0.7% |
Kone Oyj (B Shares) | 12,200 | | 521,649 |
Sampo Oyj (A Shares) (d) | 10,200 | | 506,463 |
TOTAL FINLAND | | 1,028,112 |
France - 5.3% |
Air Liquide SA | 4,620 | | 660,825 |
Bureau Veritas SA | 14,794 | | 451,538 |
Christian Dior SA (d) | 2,100 | | 431,625 |
Common Stocks - continued |
| Shares | | Value |
France - continued |
Dassault Systemes SA | 3,700 | | $ 454,955 |
Essilor International SA | 4,732 | | 506,091 |
L'Oreal SA (d) | 4,200 | | 722,532 |
Legrand SA | 7,500 | | 483,838 |
Pernod Ricard SA | 4,700 | | 564,092 |
Publicis Groupe SA | 6,000 | | 511,100 |
Safran SA | 8,800 | | 591,450 |
Schneider Electric SA | 7,839 | | 734,636 |
Sodexo SA | 4,000 | | 431,188 |
Solocal Group SA (a) | 201,200 | | 460,572 |
Zodiac Aerospace | 15,020 | | 499,174 |
TOTAL FRANCE | | 7,503,616 |
Germany - 5.3% |
adidas AG | 5,200 | | 554,990 |
Bayer AG (d) | 8,800 | | 1,220,865 |
Bayerische Motoren Werke AG (BMW) | 5,634 | | 704,877 |
Brenntag AG | 2,500 | | 452,103 |
CompuGroup Medical AG | 14,400 | | 383,774 |
Continental AG (d) | 2,400 | | 562,210 |
CTS Eventim AG | 5,798 | | 369,213 |
Deutsche Post AG | 18,035 | | 678,941 |
Fresenius SE & Co. KGaA | 3,300 | | 501,548 |
GEA Group AG | 9,482 | | 424,178 |
Henkel AG & Co. KGaA | 6,003 | | 616,125 |
Linde AG | 3,100 | | 642,752 |
ProSiebenSat.1 Media AG | 9,900 | | 432,851 |
TOTAL GERMANY | | 7,544,427 |
Hong Kong - 1.1% |
AIA Group Ltd. | 156,000 | | 756,564 |
Galaxy Entertainment Group Ltd. | 62,000 | | 486,615 |
Techtronic Industries Co. Ltd. | 124,500 | | 396,643 |
TOTAL HONG KONG | | 1,639,822 |
India - 2.9% |
Amara Raja Batteries Ltd. | 58,466 | | 396,607 |
Axis Bank Ltd. | 14,824 | | 374,570 |
Bajaj Auto Ltd. | 11,104 | | 352,027 |
Grasim Industries Ltd. | 1,879 | | 83,006 |
HCL Technologies Ltd. | 18,349 | | 426,790 |
HDFC Bank Ltd. | 40,614 | | 508,231 |
Housing Development Finance Corp. Ltd. | 37,395 | | 556,725 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
ITC Ltd. | 85,858 | | $ 485,055 |
Sun Pharmaceutical Industries Ltd. | 39,214 | | 411,417 |
Tata Consultancy Services Ltd. | 12,948 | | 469,962 |
TOTAL INDIA | | 4,064,390 |
Indonesia - 2.0% |
PT Astra International Tbk | 701,600 | | 450,580 |
PT Bank Central Asia Tbk | 434,700 | | 413,588 |
PT Bank Rakyat Indonesia Tbk | 524,400 | | 449,039 |
PT Global Mediacom Tbk | 1,936,700 | | 366,853 |
PT Indocement Tunggal Prakarsa Tbk | 198,500 | | 376,861 |
PT Semen Gresik (Persero) Tbk | 312,700 | | 401,643 |
PT Surya Citra Media Tbk | 1,289,900 | | 351,441 |
TOTAL INDONESIA | | 2,810,005 |
Ireland - 2.4% |
Accenture PLC Class A | 5,500 | | 441,210 |
Actavis PLC (a) | 2,356 | | 481,401 |
Covidien PLC | 5,400 | | 384,750 |
Ingersoll-Rand PLC | 7,000 | | 418,600 |
James Hardie Industries PLC CDI | 30,428 | | 387,832 |
Jazz Pharmaceuticals PLC (a) | 3,400 | | 458,660 |
Kerry Group PLC Class A | 5,800 | | 457,853 |
Perrigo Co. PLC | 3,100 | | 449,066 |
TOTAL IRELAND | | 3,479,372 |
Israel - 0.5% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 13,700 | | 669,382 |
Italy - 1.4% |
Azimut Holding SpA | 12,200 | | 379,981 |
Luxottica Group SpA | 6,900 | | 395,760 |
Pirelli & C. S.p.A. | 28,700 | | 480,989 |
Prada SpA | 48,000 | | 383,235 |
World Duty Free SpA (a) | 27,405 | | 367,086 |
TOTAL ITALY | | 2,007,051 |
Japan - 10.1% |
Astellas Pharma, Inc. | 55,600 | | 618,352 |
Bridgestone Corp. | 16,300 | | 583,538 |
Daikin Industries Ltd. | 9,600 | | 554,112 |
Daito Trust Construction Co. Ltd. | 4,000 | | 406,514 |
DENSO Corp. | 12,830 | | 583,804 |
Common Stocks - continued |
| Shares | | Value |
Japan - continued |
Dentsu, Inc. | 10,300 | | $ 423,143 |
Fuji Heavy Industries Ltd. | 19,500 | | 512,129 |
GMO Internet, Inc. | 55,100 | | 485,598 |
Hitachi Ltd. | 92,000 | | 654,218 |
Hoya Corp. | 14,900 | | 439,268 |
Japan Tobacco, Inc. | 19,900 | | 653,244 |
Kansai Paint Co. Ltd. | 31,000 | | 433,912 |
Keyence Corp. | 1,527 | | 588,261 |
Miraca Holdings, Inc. | 10,500 | | 454,981 |
Nakanishi, Inc. | 12,500 | | 426,713 |
Nippon Paint Co. Ltd. | 29,000 | | 448,183 |
OBIC Co. Ltd. | 13,200 | | 395,735 |
Olympus Corp. (a) | 15,900 | | 485,235 |
OMRON Corp. | 14,370 | | 507,416 |
ORIX Corp. | 40,200 | | 580,774 |
Park24 Co. Ltd. | 20,800 | | 379,643 |
Rakuten, Inc. | 43,100 | | 557,326 |
Ship Healthcare Holdings, Inc. | 10,600 | | 360,816 |
SMC Corp. | 1,900 | | 451,142 |
SoftBank Corp. | 14,630 | | 1,086,142 |
Tsuruha Holdings, Inc. | 3,700 | | 372,045 |
Unicharm Corp. | 8,300 | | 449,768 |
USS Co. Ltd. | 28,200 | | 410,718 |
TOTAL JAPAN | | 14,302,730 |
Kenya - 0.5% |
Kenya Commercial Bank Ltd. | 635,700 | | 357,997 |
Safaricom Ltd. | 2,682,400 | | 403,855 |
TOTAL KENYA | | 761,852 |
Korea (South) - 0.4% |
Naver Corp. | 810 | | 578,627 |
Luxembourg - 0.1% |
RTL Group SA | 880 | | 97,706 |
Mexico - 2.1% |
Banregio Grupo Financiero S.A.B. de CV | 62,325 | | 360,199 |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 5,020 | | 455,665 |
Grupo Aeroportuario del Pacifico SA de CV Series B | 64,100 | | 385,499 |
Grupo Aeroportuario Norte S.A.B. de CV | 98,700 | | 362,654 |
Grupo Financiero Banorte S.A.B. de CV Series O | 76,500 | | 507,145 |
Common Stocks - continued |
| Shares | | Value |
Mexico - continued |
Grupo Televisa SA de CV (CPO) sponsored ADR | 15,800 | | $ 518,398 |
Megacable Holdings S.A.B. de CV unit | 90,300 | | 358,156 |
TOTAL MEXICO | | 2,947,716 |
Netherlands - 0.8% |
Airbus Group NV | 10,500 | | 720,930 |
Yandex NV (a) | 14,200 | | 376,300 |
TOTAL NETHERLANDS | | 1,097,230 |
New Zealand - 0.3% |
EBOS Group Ltd. | 46,264 | | 374,998 |
Nigeria - 0.3% |
Guaranty Trust Bank PLC | 2,514,835 | | 410,608 |
Norway - 0.4% |
Schibsted ASA (B Shares) | 9,000 | | 516,899 |
Philippines - 1.1% |
Alliance Global Group, Inc. | 594,300 | | 415,310 |
GT Capital Holdings, Inc. | 20,620 | | 401,067 |
Security Bank Corp. | 156,986 | | 422,973 |
SM Investments Corp. | 23,785 | | 386,856 |
TOTAL PHILIPPINES | | 1,626,206 |
Russia - 0.7% |
Magnit OJSC GDR (Reg. S) | 10,995 | | 517,315 |
NOVATEK OAO GDR (Reg. S) | 4,900 | | 506,170 |
TOTAL RUSSIA | | 1,023,485 |
South Africa - 2.0% |
Aspen Pharmacare Holdings Ltd. | 15,000 | | 399,178 |
Life Healthcare Group Holdings Ltd. | 107,100 | | 425,224 |
Mr Price Group Ltd. | 28,500 | | 428,834 |
Nampak Ltd. | 122,200 | | 455,324 |
Naspers Ltd. Class N | 8,300 | | 782,624 |
Shoprite Holdings Ltd. | 25,000 | | 417,494 |
TOTAL SOUTH AFRICA | | 2,908,678 |
Spain - 1.0% |
Amadeus IT Holding SA Class A | 11,200 | | 465,450 |
Grifols SA ADR | 10,400 | | 426,816 |
Inditex SA | 3,882 | | 582,463 |
TOTAL SPAIN | | 1,474,729 |
Common Stocks - continued |
| Shares | | Value |
Sweden - 2.4% |
ASSA ABLOY AB (B Shares) | 9,606 | | $ 508,503 |
Atlas Copco AB (A Shares) (d) | 19,800 | | 573,092 |
Eniro AB (a) | 41,500 | | 329,335 |
Hexagon AB (B Shares) | 13,700 | | 436,566 |
Investment AB Kinnevik (B Shares) | 14,730 | | 517,641 |
Svenska Cellulosa AB (SCA) (B Shares) | 18,200 | | 509,707 |
Svenska Handelsbanken AB (A Shares) | 9,700 | | 486,775 |
TOTAL SWEDEN | | 3,361,619 |
Switzerland - 3.0% |
Compagnie Financiere Richemont SA Series A | 7,248 | | 735,424 |
DKSH Holding AG | 4,394 | | 361,965 |
Dufry AG (a) | 2,320 | | 383,284 |
Partners Group Holding AG | 1,504 | | 411,502 |
Schindler Holding AG (Reg.) | 2,930 | | 446,774 |
SGS SA (Reg.) | 190 | | 473,867 |
Sika AG (Bearer) | 115 | | 465,044 |
Swatch Group AG (Bearer) | 890 | | 570,850 |
TE Connectivity Ltd. | 6,700 | | 395,166 |
TOTAL SWITZERLAND | | 4,243,876 |
Taiwan - 0.8% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 280,000 | | 1,101,406 |
Thailand - 0.6% |
Airports of Thailand PCL (For. Reg.) | 64,500 | | 388,674 |
Kasikornbank PCL (For. Reg.) | 74,200 | | 450,566 |
TOTAL THAILAND | | 839,240 |
Turkey - 0.3% |
TAV Havalimanlari Holding A/S | 49,000 | | 392,176 |
United Kingdom - 16.1% |
Aberdeen Asset Management PLC | 63,700 | | 469,783 |
Ashtead Group PLC | 32,640 | | 481,931 |
Associated British Foods PLC | 10,200 | | 511,656 |
Babcock International Group PLC | 15,500 | | 312,472 |
Babcock International Group PLC rights 5/6/14 (a) | 5,961 | | 40,258 |
Berkeley Group Holdings PLC | 10,689 | | 414,005 |
British American Tobacco PLC (United Kingdom) | 20,493 | | 1,183,368 |
BT Group PLC | 114,000 | | 711,662 |
Bunzl PLC | 15,900 | | 451,274 |
Burberry Group PLC | 20,300 | | 508,977 |
Capita Group PLC | 25,600 | | 468,970 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - continued |
Compass Group PLC | 36,100 | | $ 574,161 |
Daily Mail & General Trust PLC Class A | 33,100 | | 455,192 |
Diageo PLC sponsored ADR | 7,636 | | 937,548 |
Diploma PLC | 37,290 | | 414,594 |
easyJet PLC | 15,200 | | 420,114 |
Elementis PLC | 86,039 | | 402,829 |
Filtrona PLC | 31,700 | | 428,178 |
Foxtons Group PLC | 77,400 | | 415,700 |
Galiform PLC | 77,758 | | 426,944 |
Halma PLC | 36,200 | | 343,189 |
IMI PLC | 15,675 | | 396,985 |
InterContinental Hotel Group PLC ADR | 11,966 | | 411,870 |
Intertek Group PLC | 9,000 | | 441,584 |
ITV PLC | 159,400 | | 489,818 |
Johnson Matthey PLC | 7,878 | | 435,349 |
Liberty Global PLC Class A (a) | 9,900 | | 394,218 |
Lloyds Banking Group PLC (a) | 676,400 | | 862,554 |
Meggitt PLC | 65,200 | | 524,769 |
Mondi PLC | 25,600 | | 424,666 |
Next PLC | 4,800 | | 528,402 |
Persimmon PLC | 22,700 | | 502,846 |
Prudential PLC | 35,020 | | 805,080 |
Reckitt Benckiser Group PLC | 9,100 | | 733,652 |
Rightmove PLC | 12,500 | | 508,631 |
Rolls-Royce Group PLC | 40,824 | | 723,736 |
Rotork PLC | 8,500 | | 371,845 |
SABMiller PLC | 14,500 | | 788,436 |
Schroders PLC | 8,900 | | 384,084 |
Senior Engineering Group PLC | 65,800 | | 317,514 |
Spectris PLC | 9,700 | | 364,399 |
Spirax-Sarco Engineering PLC | 7,700 | | 376,890 |
St. James's Place Capital PLC | 25,919 | | 336,965 |
Taylor Wimpey PLC | 250,950 | | 445,313 |
The Restaurant Group PLC | 34,715 | | 365,744 |
Whitbread PLC | 6,959 | | 479,383 |
TOTAL UNITED KINGDOM | | 22,787,538 |
United States of America - 16.6% |
A.O. Smith Corp. | 8,347 | | 390,306 |
Alexion Pharmaceuticals, Inc. (a) | 2,800 | | 442,960 |
Amazon.com, Inc. (a) | 1,200 | | 364,956 |
American Tower Corp. | 4,500 | | 375,840 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
AMETEK, Inc. | 7,100 | | $ 374,312 |
Amphenol Corp. Class A | 4,104 | | 391,316 |
AutoZone, Inc. (a) | 688 | | 367,316 |
Biogen Idec, Inc. (a) | 1,413 | | 405,701 |
BorgWarner, Inc. | 6,290 | | 390,861 |
Cerner Corp. (a) | 8,100 | | 415,530 |
Colgate-Palmolive Co. | 5,460 | | 367,458 |
Comcast Corp. Class A | 6,800 | | 351,968 |
Cummins, Inc. | 2,400 | | 362,040 |
Danaher Corp. | 4,769 | | 349,949 |
Discovery Communications, Inc. Class A (a) | 4,800 | | 364,320 |
Ecolab, Inc. | 3,370 | | 352,637 |
Estee Lauder Companies, Inc. Class A | 5,200 | | 377,364 |
Facebook, Inc. Class A (a) | 6,100 | | 364,658 |
Fidelity National Information Services, Inc. | 6,873 | | 367,224 |
Fiserv, Inc. (a) | 6,309 | | 383,461 |
FMC Corp. | 4,901 | | 377,377 |
Gartner, Inc. Class A (a) | 5,000 | | 344,700 |
Gilead Sciences, Inc. (a) | 5,600 | | 439,544 |
Google, Inc. Class C (a) | 820 | | 431,861 |
HEICO Corp. Class A | 3,500 | | 142,625 |
Home Depot, Inc. | 5,180 | | 411,862 |
Honeywell International, Inc. | 3,702 | | 343,916 |
J.B. Hunt Transport Services, Inc. | 5,100 | | 388,110 |
Kansas City Southern | 3,791 | | 382,436 |
Las Vegas Sands Corp. | 5,216 | | 412,742 |
MasterCard, Inc. Class A | 6,100 | | 448,655 |
McGraw Hill Financial, Inc. | 5,804 | | 429,090 |
McKesson Corp. | 2,600 | | 439,894 |
Mead Johnson Nutrition Co. Class A | 4,359 | | 384,725 |
Mettler-Toledo International, Inc. (a) | 1,800 | | 419,616 |
Moody's Corp. | 5,600 | | 439,600 |
NIKE, Inc. Class B | 4,900 | | 357,455 |
Pall Corp. | 4,900 | | 412,335 |
Philip Morris International, Inc. | 4,942 | | 422,195 |
PPG Industries, Inc. | 1,880 | | 364,006 |
Precision Castparts Corp. | 1,453 | | 367,740 |
priceline.com, Inc. (a) | 320 | | 370,480 |
QUALCOMM, Inc. | 4,700 | | 369,937 |
ResMed, Inc. | 8,000 | | 398,800 |
Rockwell Automation, Inc. | 3,000 | | 357,540 |
Roper Industries, Inc. | 2,600 | | 361,270 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Sherwin-Williams Co. | 1,900 | | $ 379,696 |
Sigma Aldrich Corp. | 3,600 | | 346,356 |
Starbucks Corp. | 4,700 | | 331,914 |
Stericycle, Inc. (a) | 3,200 | | 372,608 |
Teledyne Technologies, Inc. (a) | 4,300 | | 399,298 |
The Walt Disney Co. | 4,493 | | 356,475 |
Thermo Fisher Scientific, Inc. | 3,000 | | 342,000 |
TransDigm Group, Inc. | 2,100 | | 373,527 |
Union Pacific Corp. | 2,000 | | 380,860 |
United Technologies Corp. | 3,181 | | 376,408 |
Varian Medical Systems, Inc. (a) | 4,600 | | 365,930 |
Verisk Analytics, Inc. (a) | 6,600 | | 396,594 |
Visa, Inc. Class A | 2,200 | | 445,742 |
W.R. Grace & Co. (a) | 4,000 | | 368,400 |
Yahoo!, Inc. (a) | 11,700 | | 420,615 |
Yum! Brands, Inc. | 4,900 | | 377,251 |
TOTAL UNITED STATES OF AMERICA | | 23,612,362 |
TOTAL COMMON STOCKS (Cost $120,439,190) | 140,000,892
|
Nonconvertible Preferred Stocks - 0.3% |
| | | |
Germany - 0.3% |
Sartorius AG (non-vtg.) | 3,067 | | 399,119 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC Series C (a) | 5,470,416 | | 9,236 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $284,799) | 408,355
|
Money Market Funds - 3.4% |
| Shares | | Value |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) (Cost $4,878,324) | 4,878,324 | | $ 4,878,324 |
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $125,602,313) | 145,287,571 |
NET OTHER ASSETS (LIABILITIES) - (2.4)% | (3,455,488) |
NET ASSETS - 100% | $ 141,832,083 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 338 |
Fidelity Securities Lending Cash Central Fund | 13,120 |
Total | $ 13,458 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 32,767,936 | $ 31,790,013 | $ 977,923 | $ - |
Consumer Staples | 14,171,169 | 12,030,817 | 2,140,352 | - |
Energy | 978,162 | 978,162 | - | - |
Financials | 14,675,149 | 12,124,714 | 2,550,435 | - |
Health Care | 18,184,931 | 17,483,185 | 701,746 | - |
Industrials | 29,426,658 | 29,426,658 | - | - |
Information Technology | 18,615,174 | 17,513,768 | 1,101,406 | - |
Materials | 9,388,409 | 9,305,403 | 83,006 | - |
Telecommunication Services | 2,201,659 | 1,489,997 | 711,662 | - |
Money Market Funds | 4,878,324 | 4,878,324 | - | - |
Total Investments in Securities: | $ 145,287,571 | $ 137,021,041 | $ 8,266,530 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 1,055,648 |
Level 2 to Level 1 | $ 9,905,958 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $4,609,639) - See accompanying schedule: Unaffiliated issuers (cost $120,723,989) | $ 140,409,247 | |
Fidelity Central Funds (cost $4,878,324) | 4,878,324 | |
Total Investments (cost $125,602,313) | | $ 145,287,571 |
Foreign currency held at value (cost $17,313) | | 17,209 |
Receivable for investments sold | | 4,461,220 |
Receivable for fund shares sold | | 50,104 |
Dividends receivable | | 448,177 |
Distributions receivable from Fidelity Central Funds | | 4,934 |
Prepaid expenses | | 108 |
Receivable from investment adviser for expense reductions | | 33,795 |
Other receivables | | 233,954 |
Total assets | | 150,537,072 |
| | |
Liabilities | | |
Payable to custodian bank | $ 469,822 | |
Payable for investments purchased | 2,832,943 | |
Payable for fund shares redeemed | 132,705 | |
Accrued management fee | 104,483 | |
Distribution and service plan fees payable | 53,777 | |
Other affiliated payables | 37,156 | |
Other payables and accrued expenses | 195,779 | |
Collateral on securities loaned, at value | 4,878,324 | |
Total liabilities | | 8,704,989 |
| | |
Net Assets | | $ 141,832,083 |
Net Assets consist of: | | |
Paid in capital | | $ 201,201,594 |
Undistributed net investment income | | 39,521 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (78,899,685) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 19,490,653 |
Net Assets | | $ 141,832,083 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($50,982,907 ÷ 3,550,504 shares) | | $ 14.36 |
| | |
Maximum offering price per share (100/94.25 of $14.36) | | $ 15.24 |
Class T: Net Asset Value and redemption price per share ($58,711,321 ÷ 4,167,626 shares) | | $ 14.09 |
| | |
Maximum offering price per share (100/96.50 of $14.09) | | $ 14.60 |
Class B: Net Asset Value and offering price per share ($1,847,806 ÷ 141,507 shares)A | | $ 13.06 |
| | |
Class C: Net Asset Value and offering price per share ($20,505,664 ÷ 1,576,269 shares)A | | $ 13.01 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($9,784,385 ÷ 639,612 shares) | | $ 15.30 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,307,034 |
Income from Fidelity Central Funds | | 13,458 |
Income before foreign taxes withheld | | 1,320,492 |
Less foreign taxes withheld | | (93,841) |
Total income | | 1,226,651 |
| | |
Expenses | | |
Management fee Basic fee | $ 494,937 | |
Performance adjustment | 131,734 | |
Transfer agent fees | 186,648 | |
Distribution and service plan fees | 325,321 | |
Accounting and security lending fees | 36,670 | |
Custodian fees and expenses | 92,407 | |
Independent trustees' compensation | 277 | |
Registration fees | 46,868 | |
Audit | 44,680 | |
Legal | 380 | |
Miscellaneous | 797 | |
Total expenses before reductions | 1,360,719 | |
Expense reductions | (193,117) | 1,167,602 |
Net investment income (loss) | | 59,049 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 7,900,092 | |
Foreign currency transactions | (45,532) | |
Total net realized gain (loss) | | 7,854,560 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $23,554) | (3,411,009) | |
Assets and liabilities in foreign currencies | 8,927 | |
Total change in net unrealized appreciation (depreciation) | | (3,402,082) |
Net gain (loss) | | 4,452,478 |
Net increase (decrease) in net assets resulting from operations | | $ 4,511,527 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 59,049 | $ 465,401 |
Net realized gain (loss) | 7,854,560 | 18,319,822 |
Change in net unrealized appreciation (depreciation) | (3,402,082) | 9,778,382 |
Net increase (decrease) in net assets resulting from operations | 4,511,527 | 28,563,605 |
Distributions to shareholders from net investment income | (450,291) | (589,021) |
Share transactions - net increase (decrease) | (3,509,479) | (6,558,856) |
Redemption fees | 1,001 | 1,022 |
Total increase (decrease) in net assets | 552,758 | 21,416,750 |
| | |
Net Assets | | |
Beginning of period | 141,279,325 | 119,862,575 |
End of period (including undistributed net investment income of $39,521 and undistributed net investment income of $430,763, respectively) | $ 141,832,083 | $ 141,279,325 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.96 | $ 11.25 | $ 10.21 | $ 10.85 | $ 9.34 | $ 6.39 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .07 | .08 | .08 H | .06 | .09 |
Net realized and unrealized gain (loss) | .45 | 2.73 | 1.05 | (.53) | 1.69 | 2.88 |
Total from investment operations | .47 | 2.80 | 1.13 | (.45) | 1.75 | 2.97 |
Distributions from net investment income | (.07) | (.09) | (.09) | (.08) | (.08) | (.02) |
Distributions from net realized gain | - | - | (.01) | (.12) | (.16) | - |
Total distributions | (.07) | (.09) | (.09) K | (.19) L | (.24) | (.02) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.36 | $ 13.96 | $ 11.25 | $ 10.21 | $ 10.85 | $ 9.34 |
Total Return B,C,D | 3.35% | 24.99% | 11.19% | (4.25)% | 18.98% | 46.61% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.74% A | 1.74% | 1.78% | 1.64% | 1.45% | 1.27% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% | 1.45% | 1.45% | 1.27% |
Expenses net of all reductions | 1.44% A | 1.39% | 1.41% | 1.38% | 1.27% | 1.15% |
Net investment income (loss) | .29% A | .58% | .73% | .74% H | .66% | 1.22% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 50,983 | $ 49,797 | $ 40,624 | $ 40,364 | $ 49,058 | $ 43,389 |
Portfolio turnover rate G | 181% A | 138% | 142% | 254% | 490% | 414% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KTotal 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. LTotal 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.68 | $ 11.03 | $ 10.00 | $ 10.63 | $ 9.16 | $ 6.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - J | .04 | .05 | .05 H | .04 | .07 |
Net realized and unrealized gain (loss) | .45 | 2.66 | 1.04 | (.52) | 1.65 | 2.82 |
Total from investment operations | .45 | 2.70 | 1.09 | (.47) | 1.69 | 2.89 |
Distributions from net investment income | (.04) | (.05) | (.06) | (.05) | (.06) | (.01) |
Distributions from net realized gain | - | - | (.01) | (.12) | (.16) | - |
Total distributions | (.04) | (.05) | (.06) K | (.16) L | (.22) | (.01) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.09 | $ 13.68 | $ 11.03 | $ 10.00 | $ 10.63 | $ 9.16 |
Total Return B,C,D | 3.28% | 24.57% | 10.99% | (4.51)% | 18.65% | 46.23% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.95% A | 1.96% | 2.03% | 1.88% | 1.69% | 1.52% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.70% | 1.70% | 1.69% | 1.52% |
Expenses net of all reductions | 1.69% A | 1.64% | 1.66% | 1.62% | 1.51% | 1.41% |
Net investment income (loss) | .04% A | .33% | .48% | .49% H | .42% | .96% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 58,711 | $ 60,152 | $ 53,835 | $ 59,914 | $ 74,056 | $ 78,005 |
Portfolio turnover rate G | 181% A | 138% | 142% | 254% | 490% | 414% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KTotal 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. LTotal distributions of $.16 per share is comprised of distributions from net investment income of $.047 and distributions from net realized gain of $.116 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.68 | $ 10.22 | $ 9.26 | $ 9.84 | $ 8.51 | $ 5.86 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.02) | - J | - H,J | (.01) | .03 |
Net realized and unrealized gain (loss) | .41 | 2.48 | .96 | (.48) | 1.53 | 2.63 |
Total from investment operations | .38 | 2.46 | .96 | (.48) | 1.52 | 2.66 |
Distributions from net investment income | - | - | - | (.01) | (.03) | (.01) |
Distributions from net realized gain | - | - | - | (.09) | (.16) | - |
Total distributions | - | - | - | (.10) | (.19) | (.01) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.06 | $ 12.68 | $ 10.22 | $ 9.26 | $ 9.84 | $ 8.51 |
Total Return B,C,D | 3.00% | 24.07% | 10.37% | (4.99)% | 18.03% | 45.50% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.51% A | 2.51% | 2.54% | 2.39% | 2.20% | 2.02% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.20% | 2.20% | 2.20% | 2.02% |
Expenses net of all reductions | 2.19% A | 2.15% | 2.16% | 2.13% | 2.02% | 1.90% |
Net investment income (loss) | (.46)% A | (.17)% | (.02)% | (.01)% H | (.09)% | .47% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,848 | $ 2,228 | $ 2,745 | $ 4,241 | $ 8,737 | $ 10,661 |
Portfolio turnover rate G | 181% A | 138% | 142% | 254% | 490% | 414% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.63 | $ 10.18 | $ 9.23 | $ 9.84 | $ 8.51 | $ 5.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.02) | - J | - H,J | (.01) | .03 |
Net realized and unrealized gain (loss) | .41 | 2.47 | .96 | (.49) | 1.53 | 2.62 |
Total from investment operations | .38 | 2.45 | .96 | (.49) | 1.52 | 2.65 |
Distributions from net investment income | - | - | (.01) | (.01) | (.04) | (.01) |
Distributions from net realized gain | - | - | (.01) | (.11) | (.16) | - |
Total distributions | - | - | (.01) K | (.12) | (.19) L | (.01) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.01 | $ 12.63 | $ 10.18 | $ 9.23 | $ 9.84 | $ 8.51 |
Total Return B,C,D | 3.01% | 24.07% | 10.41% | (5.07)% | 18.12% | 45.26% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.49% A | 2.49% | 2.53% | 2.39% | 2.20% | 2.02% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.20% | 2.20% | 2.20% | 2.02% |
Expenses net of all reductions | 2.19% A | 2.14% | 2.16% | 2.13% | 2.02% | 1.90% |
Net investment income (loss) | (.46)% A | (.17)% | (.02)% | (.01)% H | (.09)% | .47% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,506 | $ 21,334 | $ 18,090 | $ 19,619 | $ 24,809 | $ 24,575 |
Portfolio turnover rate G | 181% A | 138% | 142% | 254% | 490% | 414% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KTotal 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. LTotal 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.87 | $ 11.99 | $ 10.87 | $ 11.54 | $ 9.91 | $ 6.77 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .11 | .11 | .12 G | .10 | .11 |
Net realized and unrealized gain (loss) | .48 | 2.89 | 1.13 | (.57) | 1.78 | 3.05 |
Total from investment operations | .52 | 3.00 | 1.24 | (.45) | 1.88 | 3.16 |
Distributions from net investment income | (.09) | (.12) | (.12) | (.11) | (.09) | (.02) |
Distributions from net realized gain | - | - | (.01) | (.12) | (.16) | - |
Total distributions | (.09) | (.12) | (.12) J | (.22) K | (.25) | (.02) |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.30 | $ 14.87 | $ 11.99 | $ 10.87 | $ 11.54 | $ 9.91 |
Total Return B,C | 3.54% | 25.20% | 11.56% | (4.01)% | 19.22% | 46.85% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.39% A | 1.39% | 1.48% | 1.35% | 1.19% | 1.00% |
Expenses net of fee waivers, if any | 1.20% A | 1.20% | 1.20% | 1.20% | 1.19% | 1.00% |
Expenses net of all reductions | 1.19% A | 1.14% | 1.16% | 1.12% | 1.01% | .89% |
Net investment income (loss) | .54% A | .83% | .98% | 1.00% G | .93% | 1.48% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,784 | $ 7,768 | $ 4,568 | $ 4,335 | $ 4,345 | $ 3,292 |
Portfolio turnover rate F | 181% A | 138% | 142% | 254% | 490% | 414% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment 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%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. JTotal 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. KTotal 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® 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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards, and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 21,520,448 |
Gross unrealized depreciation | (2,411,587) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 19,108,861 |
| |
Tax cost | $ 126,178,710 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2016 | $ (62,231,786) |
2017 | (23,967,872) |
Total capital loss carryforward | $ (86,199,658) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $127,569,091 and $132,272,357, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index,the MSCI All Country World ex USA Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .89% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 63,458 | $ 1,492 |
Class T | .25% | .25% | 147,654 | 1,814 |
Class B | .75% | .25% | 10,404 | 7,893 |
Class C | .75% | .25% | 103,805 | 7,006 |
| | | $ 325,321 | $ 18,205 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
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 | $ 5,111 |
Class T | 2,060 |
Class B* | 502 |
Class C* | 330 |
| $ 8,003 |
* When Class B and> Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 72,575 | .29 |
Class T | 73,276 | .25 |
Class B | 3,170 | .30 |
Class C | 29,572 | .28 |
Institutional Class | 8,055 | .19 |
| $ 186,648 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $658 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $131 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $13,120. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement |
Class A | 1.45% | $ 72,923 |
Class T | 1.70% | 73,733 |
Class B | 2.20% | 3,183 |
Class C | 2.20% | 29,674 |
Institutional Class | 1.20% | 8,058 |
| | $ 187,571 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $5,392 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 $154.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 236,147 | $ 304,584 |
Class T | 164,337 | 238,717 |
Institutional Class | 49,807 | 45,720 |
Total | $ 450,291 | $ 589,021 |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 291,255 | 542,469 | $ 4,117,816 | $ 6,750,503 |
Reinvestment of distributions | 15,568 | 23,725 | 216,239 | 277,180 |
Shares redeemed | (323,740) | (609,733) | (4,600,648) | (7,602,328) |
Net increase (decrease) | (16,917) | (43,539) | $ (266,593) | $ (574,645) |
Class T | | | | |
Shares sold | 203,205 | 451,400 | $ 2,826,506 | $ 5,558,789 |
Reinvestment of distributions | 11,818 | 20,410 | 161,196 | 234,026 |
Shares redeemed | (442,946) | (959,232) | (6,155,820) | (11,719,932) |
Net increase (decrease) | (227,923) | (487,422) | $ (3,168,118) | $ (5,927,117) |
Class B | | | | |
Shares sold | 337 | 6,302 | $ 4,444 | $ 70,561 |
Shares redeemed | (34,557) | (99,127) | (446,141) | (1,122,489) |
Net increase (decrease) | (34,220) | (92,825) | $ (441,697) | $ (1,051,928) |
Class C | | | | |
Shares sold | 101,383 | 239,470 | $ 1,305,449 | $ 2,763,917 |
Shares redeemed | (213,746) | (327,038) | (2,722,266) | (3,712,216) |
Net increase (decrease) | (112,363) | (87,568) | $ (1,416,817) | $ (948,299) |
Institutional Class | | | | |
Shares sold | 158,551 | 235,849 | $ 2,406,316 | $ 3,203,149 |
Reinvestment of distributions | 2,539 | 3,069 | 37,522 | 38,142 |
Shares redeemed | (43,693) | (97,820) | (660,092) | (1,298,158) |
Net increase (decrease) | 117,397 | 141,098 | $ 1,783,746 | $ 1,943,133 |
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
AICAPI-USAN-0614
1.784891.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
International
Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,033.50 | $ 7.31 |
HypotheticalA | | $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,032.80 | $ 8.57 |
HypotheticalA | | $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,030.00 | $ 11.07 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,030.10 | $ 11.07 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,035.40 | $ 6.06 |
HypotheticalA | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Bayer AG (Germany, Pharmaceuticals) | 0.9 | 0.8 |
British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 0.8 | 0.9 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 0.8 | 0.0 |
SoftBank Corp. (Japan, Wireless Telecommunication Services) | 0.8 | 0.6 |
Novo Nordisk A/S Series B sponsored ADR (Denmark, Pharmaceuticals) | 0.7 | 0.6 |
| 4.0 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Consumer Discretionary | 23.0 | 24.0 |
Industrials | 21.0 | 18.3 |
Information Technology | 12.9 | 9.4 |
Health Care | 12.7 | 7.8 |
Financials | 10.3 | 17.1 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United States of America | 16.6 | 12.2 |
United Kingdom | 16.1 | 16.3 |
Japan | 10.1 | 13.4 |
Germany | 5.6 | 6.7 |
France | 5.3 | 7.0 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 99.0% | | | Stocks 99.6% | |
| Short-Term Investments and Net Other Assets (Liabilities) 1.0% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.4% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% |
| Shares | | Value |
Australia - 3.1% |
Amcor Ltd. | 40,561 | | $ 387,739 |
Carsales.com Ltd. | 47,089 | | 474,641 |
CSL Ltd. | 9,611 | | 610,985 |
DuluxGroup Ltd. | 77,619 | | 413,179 |
Flight Centre Travel Group Ltd. | 8,295 | | 414,200 |
iProperty Group Ltd. (a) | 180,177 | | 435,200 |
Ramsay Health Care Ltd. | 9,533 | | 396,844 |
realestate.com.au Ltd. | 8,861 | | 385,005 |
SEEK Ltd. | 28,807 | | 447,456 |
Sydney Airport unit | 96,573 | | 378,603 |
TOTAL AUSTRALIA | | 4,343,852 |
Austria - 0.3% |
Andritz AG | 6,146 | | 381,440 |
Bailiwick of Jersey - 1.5% |
Delphi Automotive PLC | 5,400 | | 360,936 |
Experian PLC | 27,331 | | 524,215 |
Shire PLC | 12,270 | | 701,746 |
WPP PLC | 27,000 | | 582,163 |
TOTAL BAILIWICK OF JERSEY | | 2,169,060 |
Belgium - 1.0% |
Anheuser-Busch InBev SA NV (d) | 8,780 | | 956,984 |
Arseus NV | 7,100 | | 402,873 |
TOTAL BELGIUM | | 1,359,857 |
Bermuda - 0.6% |
Credicorp Ltd. (United States) | 2,920 | | 435,810 |
Signet Jewelers Ltd. | 3,700 | | 374,884 |
TOTAL BERMUDA | | 810,694 |
Brazil - 2.7% |
BB Seguridade Participacoes SA | 39,400 | | 461,721 |
CCR SA | 52,700 | | 412,430 |
Cielo SA | 27,120 | | 480,431 |
Estacio Participacoes SA | 38,300 | | 410,182 |
Kroton Educacional SA | 19,000 | | 406,969 |
Linx SA | 18,000 | | 392,815 |
Qualicorp SA (a) | 41,500 | | 403,321 |
Souza Cruz SA | 45,800 | | 417,998 |
Ultrapar Participacoes SA | 18,800 | | 471,992 |
TOTAL BRAZIL | | 3,857,859 |
Common Stocks - continued |
| Shares | | Value |
British Virgin Islands - 0.3% |
Mail.Ru Group Ltd. GDR (Reg. S) (a) | 18,000 | | $ 489,060 |
Canada - 3.6% |
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 17,100 | | 481,930 |
AutoCanada, Inc. | 5,400 | | 344,875 |
Canadian National Railway Co. | 11,800 | | 691,173 |
Canadian Pacific Railway Ltd. | 3,900 | | 608,956 |
CGI Group, Inc. Class A (sub. vtg.) (a) | 13,200 | | 475,949 |
Cineplex, Inc. (d) | 9,360 | | 352,777 |
Constellation Software, Inc. | 1,550 | | 343,290 |
Jean Coutu Group, Inc. Class A (sub. vtg.) | 19,200 | | 386,960 |
Stantec, Inc. | 6,300 | | 373,384 |
Stella-Jones, Inc. | 12,900 | | 352,615 |
Valeant Pharmaceuticals International (Canada) (a) | 5,700 | | 762,236 |
TOTAL CANADA | | 5,174,145 |
Cayman Islands - 3.1% |
51job, Inc. sponsored ADR (a) | 6,400 | | 431,616 |
Autohome, Inc. ADR Class A | 12,100 | | 387,563 |
Baidu.com, Inc. sponsored ADR (a) | 2,900 | | 446,165 |
Bitauto Holdings Ltd. ADR (a) | 12,788 | | 458,194 |
Melco Crown Entertainment Ltd. sponsored ADR | 11,900 | | 406,742 |
MGM China Holdings Ltd. | 108,800 | | 378,901 |
Sands China Ltd. | 71,600 | | 522,712 |
SouFun Holdings Ltd. ADR | 35,410 | | 416,776 |
Tencent Holdings Ltd. | 14,800 | | 922,405 |
TOTAL CAYMAN ISLANDS | | 4,371,074 |
Denmark - 1.3% |
Coloplast A/S Series B | 5,200 | | 436,297 |
Novo Nordisk A/S Series B sponsored ADR | 21,200 | | 962,268 |
Vestas Wind Systems A/S (a) | 9,900 | | 439,428 |
TOTAL DENMARK | | 1,837,993 |
Finland - 0.7% |
Kone Oyj (B Shares) | 12,200 | | 521,649 |
Sampo Oyj (A Shares) (d) | 10,200 | | 506,463 |
TOTAL FINLAND | | 1,028,112 |
France - 5.3% |
Air Liquide SA | 4,620 | | 660,825 |
Bureau Veritas SA | 14,794 | | 451,538 |
Christian Dior SA (d) | 2,100 | | 431,625 |
Common Stocks - continued |
| Shares | | Value |
France - continued |
Dassault Systemes SA | 3,700 | | $ 454,955 |
Essilor International SA | 4,732 | | 506,091 |
L'Oreal SA (d) | 4,200 | | 722,532 |
Legrand SA | 7,500 | | 483,838 |
Pernod Ricard SA | 4,700 | | 564,092 |
Publicis Groupe SA | 6,000 | | 511,100 |
Safran SA | 8,800 | | 591,450 |
Schneider Electric SA | 7,839 | | 734,636 |
Sodexo SA | 4,000 | | 431,188 |
Solocal Group SA (a) | 201,200 | | 460,572 |
Zodiac Aerospace | 15,020 | | 499,174 |
TOTAL FRANCE | | 7,503,616 |
Germany - 5.3% |
adidas AG | 5,200 | | 554,990 |
Bayer AG (d) | 8,800 | | 1,220,865 |
Bayerische Motoren Werke AG (BMW) | 5,634 | | 704,877 |
Brenntag AG | 2,500 | | 452,103 |
CompuGroup Medical AG | 14,400 | | 383,774 |
Continental AG (d) | 2,400 | | 562,210 |
CTS Eventim AG | 5,798 | | 369,213 |
Deutsche Post AG | 18,035 | | 678,941 |
Fresenius SE & Co. KGaA | 3,300 | | 501,548 |
GEA Group AG | 9,482 | | 424,178 |
Henkel AG & Co. KGaA | 6,003 | | 616,125 |
Linde AG | 3,100 | | 642,752 |
ProSiebenSat.1 Media AG | 9,900 | | 432,851 |
TOTAL GERMANY | | 7,544,427 |
Hong Kong - 1.1% |
AIA Group Ltd. | 156,000 | | 756,564 |
Galaxy Entertainment Group Ltd. | 62,000 | | 486,615 |
Techtronic Industries Co. Ltd. | 124,500 | | 396,643 |
TOTAL HONG KONG | | 1,639,822 |
India - 2.9% |
Amara Raja Batteries Ltd. | 58,466 | | 396,607 |
Axis Bank Ltd. | 14,824 | | 374,570 |
Bajaj Auto Ltd. | 11,104 | | 352,027 |
Grasim Industries Ltd. | 1,879 | | 83,006 |
HCL Technologies Ltd. | 18,349 | | 426,790 |
HDFC Bank Ltd. | 40,614 | | 508,231 |
Housing Development Finance Corp. Ltd. | 37,395 | | 556,725 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
ITC Ltd. | 85,858 | | $ 485,055 |
Sun Pharmaceutical Industries Ltd. | 39,214 | | 411,417 |
Tata Consultancy Services Ltd. | 12,948 | | 469,962 |
TOTAL INDIA | | 4,064,390 |
Indonesia - 2.0% |
PT Astra International Tbk | 701,600 | | 450,580 |
PT Bank Central Asia Tbk | 434,700 | | 413,588 |
PT Bank Rakyat Indonesia Tbk | 524,400 | | 449,039 |
PT Global Mediacom Tbk | 1,936,700 | | 366,853 |
PT Indocement Tunggal Prakarsa Tbk | 198,500 | | 376,861 |
PT Semen Gresik (Persero) Tbk | 312,700 | | 401,643 |
PT Surya Citra Media Tbk | 1,289,900 | | 351,441 |
TOTAL INDONESIA | | 2,810,005 |
Ireland - 2.4% |
Accenture PLC Class A | 5,500 | | 441,210 |
Actavis PLC (a) | 2,356 | | 481,401 |
Covidien PLC | 5,400 | | 384,750 |
Ingersoll-Rand PLC | 7,000 | | 418,600 |
James Hardie Industries PLC CDI | 30,428 | | 387,832 |
Jazz Pharmaceuticals PLC (a) | 3,400 | | 458,660 |
Kerry Group PLC Class A | 5,800 | | 457,853 |
Perrigo Co. PLC | 3,100 | | 449,066 |
TOTAL IRELAND | | 3,479,372 |
Israel - 0.5% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 13,700 | | 669,382 |
Italy - 1.4% |
Azimut Holding SpA | 12,200 | | 379,981 |
Luxottica Group SpA | 6,900 | | 395,760 |
Pirelli & C. S.p.A. | 28,700 | | 480,989 |
Prada SpA | 48,000 | | 383,235 |
World Duty Free SpA (a) | 27,405 | | 367,086 |
TOTAL ITALY | | 2,007,051 |
Japan - 10.1% |
Astellas Pharma, Inc. | 55,600 | | 618,352 |
Bridgestone Corp. | 16,300 | | 583,538 |
Daikin Industries Ltd. | 9,600 | | 554,112 |
Daito Trust Construction Co. Ltd. | 4,000 | | 406,514 |
DENSO Corp. | 12,830 | | 583,804 |
Common Stocks - continued |
| Shares | | Value |
Japan - continued |
Dentsu, Inc. | 10,300 | | $ 423,143 |
Fuji Heavy Industries Ltd. | 19,500 | | 512,129 |
GMO Internet, Inc. | 55,100 | | 485,598 |
Hitachi Ltd. | 92,000 | | 654,218 |
Hoya Corp. | 14,900 | | 439,268 |
Japan Tobacco, Inc. | 19,900 | | 653,244 |
Kansai Paint Co. Ltd. | 31,000 | | 433,912 |
Keyence Corp. | 1,527 | | 588,261 |
Miraca Holdings, Inc. | 10,500 | | 454,981 |
Nakanishi, Inc. | 12,500 | | 426,713 |
Nippon Paint Co. Ltd. | 29,000 | | 448,183 |
OBIC Co. Ltd. | 13,200 | | 395,735 |
Olympus Corp. (a) | 15,900 | | 485,235 |
OMRON Corp. | 14,370 | | 507,416 |
ORIX Corp. | 40,200 | | 580,774 |
Park24 Co. Ltd. | 20,800 | | 379,643 |
Rakuten, Inc. | 43,100 | | 557,326 |
Ship Healthcare Holdings, Inc. | 10,600 | | 360,816 |
SMC Corp. | 1,900 | | 451,142 |
SoftBank Corp. | 14,630 | | 1,086,142 |
Tsuruha Holdings, Inc. | 3,700 | | 372,045 |
Unicharm Corp. | 8,300 | | 449,768 |
USS Co. Ltd. | 28,200 | | 410,718 |
TOTAL JAPAN | | 14,302,730 |
Kenya - 0.5% |
Kenya Commercial Bank Ltd. | 635,700 | | 357,997 |
Safaricom Ltd. | 2,682,400 | | 403,855 |
TOTAL KENYA | | 761,852 |
Korea (South) - 0.4% |
Naver Corp. | 810 | | 578,627 |
Luxembourg - 0.1% |
RTL Group SA | 880 | | 97,706 |
Mexico - 2.1% |
Banregio Grupo Financiero S.A.B. de CV | 62,325 | | 360,199 |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 5,020 | | 455,665 |
Grupo Aeroportuario del Pacifico SA de CV Series B | 64,100 | | 385,499 |
Grupo Aeroportuario Norte S.A.B. de CV | 98,700 | | 362,654 |
Grupo Financiero Banorte S.A.B. de CV Series O | 76,500 | | 507,145 |
Common Stocks - continued |
| Shares | | Value |
Mexico - continued |
Grupo Televisa SA de CV (CPO) sponsored ADR | 15,800 | | $ 518,398 |
Megacable Holdings S.A.B. de CV unit | 90,300 | | 358,156 |
TOTAL MEXICO | | 2,947,716 |
Netherlands - 0.8% |
Airbus Group NV | 10,500 | | 720,930 |
Yandex NV (a) | 14,200 | | 376,300 |
TOTAL NETHERLANDS | | 1,097,230 |
New Zealand - 0.3% |
EBOS Group Ltd. | 46,264 | | 374,998 |
Nigeria - 0.3% |
Guaranty Trust Bank PLC | 2,514,835 | | 410,608 |
Norway - 0.4% |
Schibsted ASA (B Shares) | 9,000 | | 516,899 |
Philippines - 1.1% |
Alliance Global Group, Inc. | 594,300 | | 415,310 |
GT Capital Holdings, Inc. | 20,620 | | 401,067 |
Security Bank Corp. | 156,986 | | 422,973 |
SM Investments Corp. | 23,785 | | 386,856 |
TOTAL PHILIPPINES | | 1,626,206 |
Russia - 0.7% |
Magnit OJSC GDR (Reg. S) | 10,995 | | 517,315 |
NOVATEK OAO GDR (Reg. S) | 4,900 | | 506,170 |
TOTAL RUSSIA | | 1,023,485 |
South Africa - 2.0% |
Aspen Pharmacare Holdings Ltd. | 15,000 | | 399,178 |
Life Healthcare Group Holdings Ltd. | 107,100 | | 425,224 |
Mr Price Group Ltd. | 28,500 | | 428,834 |
Nampak Ltd. | 122,200 | | 455,324 |
Naspers Ltd. Class N | 8,300 | | 782,624 |
Shoprite Holdings Ltd. | 25,000 | | 417,494 |
TOTAL SOUTH AFRICA | | 2,908,678 |
Spain - 1.0% |
Amadeus IT Holding SA Class A | 11,200 | | 465,450 |
Grifols SA ADR | 10,400 | | 426,816 |
Inditex SA | 3,882 | | 582,463 |
TOTAL SPAIN | | 1,474,729 |
Common Stocks - continued |
| Shares | | Value |
Sweden - 2.4% |
ASSA ABLOY AB (B Shares) | 9,606 | | $ 508,503 |
Atlas Copco AB (A Shares) (d) | 19,800 | | 573,092 |
Eniro AB (a) | 41,500 | | 329,335 |
Hexagon AB (B Shares) | 13,700 | | 436,566 |
Investment AB Kinnevik (B Shares) | 14,730 | | 517,641 |
Svenska Cellulosa AB (SCA) (B Shares) | 18,200 | | 509,707 |
Svenska Handelsbanken AB (A Shares) | 9,700 | | 486,775 |
TOTAL SWEDEN | | 3,361,619 |
Switzerland - 3.0% |
Compagnie Financiere Richemont SA Series A | 7,248 | | 735,424 |
DKSH Holding AG | 4,394 | | 361,965 |
Dufry AG (a) | 2,320 | | 383,284 |
Partners Group Holding AG | 1,504 | | 411,502 |
Schindler Holding AG (Reg.) | 2,930 | | 446,774 |
SGS SA (Reg.) | 190 | | 473,867 |
Sika AG (Bearer) | 115 | | 465,044 |
Swatch Group AG (Bearer) | 890 | | 570,850 |
TE Connectivity Ltd. | 6,700 | | 395,166 |
TOTAL SWITZERLAND | | 4,243,876 |
Taiwan - 0.8% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 280,000 | | 1,101,406 |
Thailand - 0.6% |
Airports of Thailand PCL (For. Reg.) | 64,500 | | 388,674 |
Kasikornbank PCL (For. Reg.) | 74,200 | | 450,566 |
TOTAL THAILAND | | 839,240 |
Turkey - 0.3% |
TAV Havalimanlari Holding A/S | 49,000 | | 392,176 |
United Kingdom - 16.1% |
Aberdeen Asset Management PLC | 63,700 | | 469,783 |
Ashtead Group PLC | 32,640 | | 481,931 |
Associated British Foods PLC | 10,200 | | 511,656 |
Babcock International Group PLC | 15,500 | | 312,472 |
Babcock International Group PLC rights 5/6/14 (a) | 5,961 | | 40,258 |
Berkeley Group Holdings PLC | 10,689 | | 414,005 |
British American Tobacco PLC (United Kingdom) | 20,493 | | 1,183,368 |
BT Group PLC | 114,000 | | 711,662 |
Bunzl PLC | 15,900 | | 451,274 |
Burberry Group PLC | 20,300 | | 508,977 |
Capita Group PLC | 25,600 | | 468,970 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - continued |
Compass Group PLC | 36,100 | | $ 574,161 |
Daily Mail & General Trust PLC Class A | 33,100 | | 455,192 |
Diageo PLC sponsored ADR | 7,636 | | 937,548 |
Diploma PLC | 37,290 | | 414,594 |
easyJet PLC | 15,200 | | 420,114 |
Elementis PLC | 86,039 | | 402,829 |
Filtrona PLC | 31,700 | | 428,178 |
Foxtons Group PLC | 77,400 | | 415,700 |
Galiform PLC | 77,758 | | 426,944 |
Halma PLC | 36,200 | | 343,189 |
IMI PLC | 15,675 | | 396,985 |
InterContinental Hotel Group PLC ADR | 11,966 | | 411,870 |
Intertek Group PLC | 9,000 | | 441,584 |
ITV PLC | 159,400 | | 489,818 |
Johnson Matthey PLC | 7,878 | | 435,349 |
Liberty Global PLC Class A (a) | 9,900 | | 394,218 |
Lloyds Banking Group PLC (a) | 676,400 | | 862,554 |
Meggitt PLC | 65,200 | | 524,769 |
Mondi PLC | 25,600 | | 424,666 |
Next PLC | 4,800 | | 528,402 |
Persimmon PLC | 22,700 | | 502,846 |
Prudential PLC | 35,020 | | 805,080 |
Reckitt Benckiser Group PLC | 9,100 | | 733,652 |
Rightmove PLC | 12,500 | | 508,631 |
Rolls-Royce Group PLC | 40,824 | | 723,736 |
Rotork PLC | 8,500 | | 371,845 |
SABMiller PLC | 14,500 | | 788,436 |
Schroders PLC | 8,900 | | 384,084 |
Senior Engineering Group PLC | 65,800 | | 317,514 |
Spectris PLC | 9,700 | | 364,399 |
Spirax-Sarco Engineering PLC | 7,700 | | 376,890 |
St. James's Place Capital PLC | 25,919 | | 336,965 |
Taylor Wimpey PLC | 250,950 | | 445,313 |
The Restaurant Group PLC | 34,715 | | 365,744 |
Whitbread PLC | 6,959 | | 479,383 |
TOTAL UNITED KINGDOM | | 22,787,538 |
United States of America - 16.6% |
A.O. Smith Corp. | 8,347 | | 390,306 |
Alexion Pharmaceuticals, Inc. (a) | 2,800 | | 442,960 |
Amazon.com, Inc. (a) | 1,200 | | 364,956 |
American Tower Corp. | 4,500 | | 375,840 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
AMETEK, Inc. | 7,100 | | $ 374,312 |
Amphenol Corp. Class A | 4,104 | | 391,316 |
AutoZone, Inc. (a) | 688 | | 367,316 |
Biogen Idec, Inc. (a) | 1,413 | | 405,701 |
BorgWarner, Inc. | 6,290 | | 390,861 |
Cerner Corp. (a) | 8,100 | | 415,530 |
Colgate-Palmolive Co. | 5,460 | | 367,458 |
Comcast Corp. Class A | 6,800 | | 351,968 |
Cummins, Inc. | 2,400 | | 362,040 |
Danaher Corp. | 4,769 | | 349,949 |
Discovery Communications, Inc. Class A (a) | 4,800 | | 364,320 |
Ecolab, Inc. | 3,370 | | 352,637 |
Estee Lauder Companies, Inc. Class A | 5,200 | | 377,364 |
Facebook, Inc. Class A (a) | 6,100 | | 364,658 |
Fidelity National Information Services, Inc. | 6,873 | | 367,224 |
Fiserv, Inc. (a) | 6,309 | | 383,461 |
FMC Corp. | 4,901 | | 377,377 |
Gartner, Inc. Class A (a) | 5,000 | | 344,700 |
Gilead Sciences, Inc. (a) | 5,600 | | 439,544 |
Google, Inc. Class C (a) | 820 | | 431,861 |
HEICO Corp. Class A | 3,500 | | 142,625 |
Home Depot, Inc. | 5,180 | | 411,862 |
Honeywell International, Inc. | 3,702 | | 343,916 |
J.B. Hunt Transport Services, Inc. | 5,100 | | 388,110 |
Kansas City Southern | 3,791 | | 382,436 |
Las Vegas Sands Corp. | 5,216 | | 412,742 |
MasterCard, Inc. Class A | 6,100 | | 448,655 |
McGraw Hill Financial, Inc. | 5,804 | | 429,090 |
McKesson Corp. | 2,600 | | 439,894 |
Mead Johnson Nutrition Co. Class A | 4,359 | | 384,725 |
Mettler-Toledo International, Inc. (a) | 1,800 | | 419,616 |
Moody's Corp. | 5,600 | | 439,600 |
NIKE, Inc. Class B | 4,900 | | 357,455 |
Pall Corp. | 4,900 | | 412,335 |
Philip Morris International, Inc. | 4,942 | | 422,195 |
PPG Industries, Inc. | 1,880 | | 364,006 |
Precision Castparts Corp. | 1,453 | | 367,740 |
priceline.com, Inc. (a) | 320 | | 370,480 |
QUALCOMM, Inc. | 4,700 | | 369,937 |
ResMed, Inc. | 8,000 | | 398,800 |
Rockwell Automation, Inc. | 3,000 | | 357,540 |
Roper Industries, Inc. | 2,600 | | 361,270 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Sherwin-Williams Co. | 1,900 | | $ 379,696 |
Sigma Aldrich Corp. | 3,600 | | 346,356 |
Starbucks Corp. | 4,700 | | 331,914 |
Stericycle, Inc. (a) | 3,200 | | 372,608 |
Teledyne Technologies, Inc. (a) | 4,300 | | 399,298 |
The Walt Disney Co. | 4,493 | | 356,475 |
Thermo Fisher Scientific, Inc. | 3,000 | | 342,000 |
TransDigm Group, Inc. | 2,100 | | 373,527 |
Union Pacific Corp. | 2,000 | | 380,860 |
United Technologies Corp. | 3,181 | | 376,408 |
Varian Medical Systems, Inc. (a) | 4,600 | | 365,930 |
Verisk Analytics, Inc. (a) | 6,600 | | 396,594 |
Visa, Inc. Class A | 2,200 | | 445,742 |
W.R. Grace & Co. (a) | 4,000 | | 368,400 |
Yahoo!, Inc. (a) | 11,700 | | 420,615 |
Yum! Brands, Inc. | 4,900 | | 377,251 |
TOTAL UNITED STATES OF AMERICA | | 23,612,362 |
TOTAL COMMON STOCKS (Cost $120,439,190) | 140,000,892
|
Nonconvertible Preferred Stocks - 0.3% |
| | | |
Germany - 0.3% |
Sartorius AG (non-vtg.) | 3,067 | | 399,119 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC Series C (a) | 5,470,416 | | 9,236 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $284,799) | 408,355
|
Money Market Funds - 3.4% |
| Shares | | Value |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) (Cost $4,878,324) | 4,878,324 | | $ 4,878,324 |
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $125,602,313) | 145,287,571 |
NET OTHER ASSETS (LIABILITIES) - (2.4)% | (3,455,488) |
NET ASSETS - 100% | $ 141,832,083 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 338 |
Fidelity Securities Lending Cash Central Fund | 13,120 |
Total | $ 13,458 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 32,767,936 | $ 31,790,013 | $ 977,923 | $ - |
Consumer Staples | 14,171,169 | 12,030,817 | 2,140,352 | - |
Energy | 978,162 | 978,162 | - | - |
Financials | 14,675,149 | 12,124,714 | 2,550,435 | - |
Health Care | 18,184,931 | 17,483,185 | 701,746 | - |
Industrials | 29,426,658 | 29,426,658 | - | - |
Information Technology | 18,615,174 | 17,513,768 | 1,101,406 | - |
Materials | 9,388,409 | 9,305,403 | 83,006 | - |
Telecommunication Services | 2,201,659 | 1,489,997 | 711,662 | - |
Money Market Funds | 4,878,324 | 4,878,324 | - | - |
Total Investments in Securities: | $ 145,287,571 | $ 137,021,041 | $ 8,266,530 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 1,055,648 |
Level 2 to Level 1 | $ 9,905,958 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $4,609,639) - See accompanying schedule: Unaffiliated issuers (cost $120,723,989) | $ 140,409,247 | |
Fidelity Central Funds (cost $4,878,324) | 4,878,324 | |
Total Investments (cost $125,602,313) | | $ 145,287,571 |
Foreign currency held at value (cost $17,313) | | 17,209 |
Receivable for investments sold | | 4,461,220 |
Receivable for fund shares sold | | 50,104 |
Dividends receivable | | 448,177 |
Distributions receivable from Fidelity Central Funds | | 4,934 |
Prepaid expenses | | 108 |
Receivable from investment adviser for expense reductions | | 33,795 |
Other receivables | | 233,954 |
Total assets | | 150,537,072 |
| | |
Liabilities | | |
Payable to custodian bank | $ 469,822 | |
Payable for investments purchased | 2,832,943 | |
Payable for fund shares redeemed | 132,705 | |
Accrued management fee | 104,483 | |
Distribution and service plan fees payable | 53,777 | |
Other affiliated payables | 37,156 | |
Other payables and accrued expenses | 195,779 | |
Collateral on securities loaned, at value | 4,878,324 | |
Total liabilities | | 8,704,989 |
| | |
Net Assets | | $ 141,832,083 |
Net Assets consist of: | | |
Paid in capital | | $ 201,201,594 |
Undistributed net investment income | | 39,521 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (78,899,685) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 19,490,653 |
Net Assets | | $ 141,832,083 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($50,982,907 ÷ 3,550,504 shares) | | $ 14.36 |
| | |
Maximum offering price per share (100/94.25 of $14.36) | | $ 15.24 |
Class T: Net Asset Value and redemption price per share ($58,711,321 ÷ 4,167,626 shares) | | $ 14.09 |
| | |
Maximum offering price per share (100/96.50 of $14.09) | | $ 14.60 |
Class B: Net Asset Value and offering price per share ($1,847,806 ÷ 141,507 shares)A | | $ 13.06 |
| | |
Class C: Net Asset Value and offering price per share ($20,505,664 ÷ 1,576,269 shares)A | | $ 13.01 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($9,784,385 ÷ 639,612 shares) | | $ 15.30 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,307,034 |
Income from Fidelity Central Funds | | 13,458 |
Income before foreign taxes withheld | | 1,320,492 |
Less foreign taxes withheld | | (93,841) |
Total income | | 1,226,651 |
| | |
Expenses | | |
Management fee Basic fee | $ 494,937 | |
Performance adjustment | 131,734 | |
Transfer agent fees | 186,648 | |
Distribution and service plan fees | 325,321 | |
Accounting and security lending fees | 36,670 | |
Custodian fees and expenses | 92,407 | |
Independent trustees' compensation | 277 | |
Registration fees | 46,868 | |
Audit | 44,680 | |
Legal | 380 | |
Miscellaneous | 797 | |
Total expenses before reductions | 1,360,719 | |
Expense reductions | (193,117) | 1,167,602 |
Net investment income (loss) | | 59,049 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 7,900,092 | |
Foreign currency transactions | (45,532) | |
Total net realized gain (loss) | | 7,854,560 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $23,554) | (3,411,009) | |
Assets and liabilities in foreign currencies | 8,927 | |
Total change in net unrealized appreciation (depreciation) | | (3,402,082) |
Net gain (loss) | | 4,452,478 |
Net increase (decrease) in net assets resulting from operations | | $ 4,511,527 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 59,049 | $ 465,401 |
Net realized gain (loss) | 7,854,560 | 18,319,822 |
Change in net unrealized appreciation (depreciation) | (3,402,082) | 9,778,382 |
Net increase (decrease) in net assets resulting from operations | 4,511,527 | 28,563,605 |
Distributions to shareholders from net investment income | (450,291) | (589,021) |
Share transactions - net increase (decrease) | (3,509,479) | (6,558,856) |
Redemption fees | 1,001 | 1,022 |
Total increase (decrease) in net assets | 552,758 | 21,416,750 |
| | |
Net Assets | | |
Beginning of period | 141,279,325 | 119,862,575 |
End of period (including undistributed net investment income of $39,521 and undistributed net investment income of $430,763, respectively) | $ 141,832,083 | $ 141,279,325 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.96 | $ 11.25 | $ 10.21 | $ 10.85 | $ 9.34 | $ 6.39 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .07 | .08 | .08 H | .06 | .09 |
Net realized and unrealized gain (loss) | .45 | 2.73 | 1.05 | (.53) | 1.69 | 2.88 |
Total from investment operations | .47 | 2.80 | 1.13 | (.45) | 1.75 | 2.97 |
Distributions from net investment income | (.07) | (.09) | (.09) | (.08) | (.08) | (.02) |
Distributions from net realized gain | - | - | (.01) | (.12) | (.16) | - |
Total distributions | (.07) | (.09) | (.09) K | (.19) L | (.24) | (.02) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.36 | $ 13.96 | $ 11.25 | $ 10.21 | $ 10.85 | $ 9.34 |
Total Return B,C,D | 3.35% | 24.99% | 11.19% | (4.25)% | 18.98% | 46.61% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.74% A | 1.74% | 1.78% | 1.64% | 1.45% | 1.27% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% | 1.45% | 1.45% | 1.27% |
Expenses net of all reductions | 1.44% A | 1.39% | 1.41% | 1.38% | 1.27% | 1.15% |
Net investment income (loss) | .29% A | .58% | .73% | .74% H | .66% | 1.22% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 50,983 | $ 49,797 | $ 40,624 | $ 40,364 | $ 49,058 | $ 43,389 |
Portfolio turnover rate G | 181% A | 138% | 142% | 254% | 490% | 414% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KTotal 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. LTotal 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.68 | $ 11.03 | $ 10.00 | $ 10.63 | $ 9.16 | $ 6.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - J | .04 | .05 | .05 H | .04 | .07 |
Net realized and unrealized gain (loss) | .45 | 2.66 | 1.04 | (.52) | 1.65 | 2.82 |
Total from investment operations | .45 | 2.70 | 1.09 | (.47) | 1.69 | 2.89 |
Distributions from net investment income | (.04) | (.05) | (.06) | (.05) | (.06) | (.01) |
Distributions from net realized gain | - | - | (.01) | (.12) | (.16) | - |
Total distributions | (.04) | (.05) | (.06) K | (.16) L | (.22) | (.01) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.09 | $ 13.68 | $ 11.03 | $ 10.00 | $ 10.63 | $ 9.16 |
Total Return B,C,D | 3.28% | 24.57% | 10.99% | (4.51)% | 18.65% | 46.23% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.95% A | 1.96% | 2.03% | 1.88% | 1.69% | 1.52% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.70% | 1.70% | 1.69% | 1.52% |
Expenses net of all reductions | 1.69% A | 1.64% | 1.66% | 1.62% | 1.51% | 1.41% |
Net investment income (loss) | .04% A | .33% | .48% | .49% H | .42% | .96% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 58,711 | $ 60,152 | $ 53,835 | $ 59,914 | $ 74,056 | $ 78,005 |
Portfolio turnover rate G | 181% A | 138% | 142% | 254% | 490% | 414% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KTotal 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. LTotal distributions of $.16 per share is comprised of distributions from net investment income of $.047 and distributions from net realized gain of $.116 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.68 | $ 10.22 | $ 9.26 | $ 9.84 | $ 8.51 | $ 5.86 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.02) | - J | - H,J | (.01) | .03 |
Net realized and unrealized gain (loss) | .41 | 2.48 | .96 | (.48) | 1.53 | 2.63 |
Total from investment operations | .38 | 2.46 | .96 | (.48) | 1.52 | 2.66 |
Distributions from net investment income | - | - | - | (.01) | (.03) | (.01) |
Distributions from net realized gain | - | - | - | (.09) | (.16) | - |
Total distributions | - | - | - | (.10) | (.19) | (.01) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.06 | $ 12.68 | $ 10.22 | $ 9.26 | $ 9.84 | $ 8.51 |
Total Return B,C,D | 3.00% | 24.07% | 10.37% | (4.99)% | 18.03% | 45.50% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.51% A | 2.51% | 2.54% | 2.39% | 2.20% | 2.02% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.20% | 2.20% | 2.20% | 2.02% |
Expenses net of all reductions | 2.19% A | 2.15% | 2.16% | 2.13% | 2.02% | 1.90% |
Net investment income (loss) | (.46)% A | (.17)% | (.02)% | (.01)% H | (.09)% | .47% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,848 | $ 2,228 | $ 2,745 | $ 4,241 | $ 8,737 | $ 10,661 |
Portfolio turnover rate G | 181% A | 138% | 142% | 254% | 490% | 414% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.63 | $ 10.18 | $ 9.23 | $ 9.84 | $ 8.51 | $ 5.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.02) | - J | - H,J | (.01) | .03 |
Net realized and unrealized gain (loss) | .41 | 2.47 | .96 | (.49) | 1.53 | 2.62 |
Total from investment operations | .38 | 2.45 | .96 | (.49) | 1.52 | 2.65 |
Distributions from net investment income | - | - | (.01) | (.01) | (.04) | (.01) |
Distributions from net realized gain | - | - | (.01) | (.11) | (.16) | - |
Total distributions | - | - | (.01) K | (.12) | (.19) L | (.01) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.01 | $ 12.63 | $ 10.18 | $ 9.23 | $ 9.84 | $ 8.51 |
Total Return B,C,D | 3.01% | 24.07% | 10.41% | (5.07)% | 18.12% | 45.26% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.49% A | 2.49% | 2.53% | 2.39% | 2.20% | 2.02% |
Expenses net of fee waivers, if any | 2.20% A | 2.20% | 2.20% | 2.20% | 2.20% | 2.02% |
Expenses net of all reductions | 2.19% A | 2.14% | 2.16% | 2.13% | 2.02% | 1.90% |
Net investment income (loss) | (.46)% A | (.17)% | (.02)% | (.01)% H | (.09)% | .47% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,506 | $ 21,334 | $ 18,090 | $ 19,619 | $ 24,809 | $ 24,575 |
Portfolio turnover rate G | 181% A | 138% | 142% | 254% | 490% | 414% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KTotal 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. LTotal 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.87 | $ 11.99 | $ 10.87 | $ 11.54 | $ 9.91 | $ 6.77 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .11 | .11 | .12 G | .10 | .11 |
Net realized and unrealized gain (loss) | .48 | 2.89 | 1.13 | (.57) | 1.78 | 3.05 |
Total from investment operations | .52 | 3.00 | 1.24 | (.45) | 1.88 | 3.16 |
Distributions from net investment income | (.09) | (.12) | (.12) | (.11) | (.09) | (.02) |
Distributions from net realized gain | - | - | (.01) | (.12) | (.16) | - |
Total distributions | (.09) | (.12) | (.12) J | (.22) K | (.25) | (.02) |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.30 | $ 14.87 | $ 11.99 | $ 10.87 | $ 11.54 | $ 9.91 |
Total Return B,C | 3.54% | 25.20% | 11.56% | (4.01)% | 19.22% | 46.85% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.39% A | 1.39% | 1.48% | 1.35% | 1.19% | 1.00% |
Expenses net of fee waivers, if any | 1.20% A | 1.20% | 1.20% | 1.20% | 1.19% | 1.00% |
Expenses net of all reductions | 1.19% A | 1.14% | 1.16% | 1.12% | 1.01% | .89% |
Net investment income (loss) | .54% A | .83% | .98% | 1.00% G | .93% | 1.48% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,784 | $ 7,768 | $ 4,568 | $ 4,335 | $ 4,345 | $ 3,292 |
Portfolio turnover rate F | 181% A | 138% | 142% | 254% | 490% | 414% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment 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%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. JTotal 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. KTotal 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® 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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards, and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 21,520,448 |
Gross unrealized depreciation | (2,411,587) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 19,108,861 |
| |
Tax cost | $ 126,178,710 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2016 | $ (62,231,786) |
2017 | (23,967,872) |
Total capital loss carryforward | $ (86,199,658) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $127,569,091 and $132,272,357, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index,the MSCI All Country World ex USA Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .89% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 63,458 | $ 1,492 |
Class T | .25% | .25% | 147,654 | 1,814 |
Class B | .75% | .25% | 10,404 | 7,893 |
Class C | .75% | .25% | 103,805 | 7,006 |
| | | $ 325,321 | $ 18,205 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
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 | $ 5,111 |
Class T | 2,060 |
Class B* | 502 |
Class C* | 330 |
| $ 8,003 |
* When Class B and> Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 72,575 | .29 |
Class T | 73,276 | .25 |
Class B | 3,170 | .30 |
Class C | 29,572 | .28 |
Institutional Class | 8,055 | .19 |
| $ 186,648 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $658 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $131 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $13,120. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement |
Class A | 1.45% | $ 72,923 |
Class T | 1.70% | 73,733 |
Class B | 2.20% | 3,183 |
Class C | 2.20% | 29,674 |
Institutional Class | 1.20% | 8,058 |
| | $ 187,571 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $5,392 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 $154.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 236,147 | $ 304,584 |
Class T | 164,337 | 238,717 |
Institutional Class | 49,807 | 45,720 |
Total | $ 450,291 | $ 589,021 |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 291,255 | 542,469 | $ 4,117,816 | $ 6,750,503 |
Reinvestment of distributions | 15,568 | 23,725 | 216,239 | 277,180 |
Shares redeemed | (323,740) | (609,733) | (4,600,648) | (7,602,328) |
Net increase (decrease) | (16,917) | (43,539) | $ (266,593) | $ (574,645) |
Class T | | | | |
Shares sold | 203,205 | 451,400 | $ 2,826,506 | $ 5,558,789 |
Reinvestment of distributions | 11,818 | 20,410 | 161,196 | 234,026 |
Shares redeemed | (442,946) | (959,232) | (6,155,820) | (11,719,932) |
Net increase (decrease) | (227,923) | (487,422) | $ (3,168,118) | $ (5,927,117) |
Class B | | | | |
Shares sold | 337 | 6,302 | $ 4,444 | $ 70,561 |
Shares redeemed | (34,557) | (99,127) | (446,141) | (1,122,489) |
Net increase (decrease) | (34,220) | (92,825) | $ (441,697) | $ (1,051,928) |
Class C | | | | |
Shares sold | 101,383 | 239,470 | $ 1,305,449 | $ 2,763,917 |
Shares redeemed | (213,746) | (327,038) | (2,722,266) | (3,712,216) |
Net increase (decrease) | (112,363) | (87,568) | $ (1,416,817) | $ (948,299) |
Institutional Class | | | | |
Shares sold | 158,551 | 235,849 | $ 2,406,316 | $ 3,203,149 |
Reinvestment of distributions | 2,539 | 3,069 | 37,522 | 38,142 |
Shares redeemed | (43,693) | (97,820) | (660,092) | (1,298,158) |
Net increase (decrease) | 117,397 | 141,098 | $ 1,783,746 | $ 1,943,133 |
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
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Investment Sub-Advisers
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(U.K.) Inc.
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Fidelity Distributors Corporation
Smithfield, RI
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Fidelity Investments Institutional Operations Company, Inc.
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Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
AICAP-USAN-0614
1.784890.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Overseas
Fund - Institutional Class
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.32% | | | |
Actual | | $ 1,000.00 | $ 1,015.70 | $ 6.60 |
HypotheticalA | | $ 1,000.00 | $ 1,018.25 | $ 6.61 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 1,015.00 | $ 7.49 |
HypotheticalA | | $ 1,000.00 | $ 1,017.36 | $ 7.50 |
Class B | 2.11% | | | |
Actual | | $ 1,000.00 | $ 1,011.40 | $ 10.52 |
HypotheticalA | | $ 1,000.00 | $ 1,014.33 | $ 10.54 |
Class C | 2.10% | | | |
Actual | | $ 1,000.00 | $ 1,011.70 | $ 10.47 |
HypotheticalA | | $ 1,000.00 | $ 1,014.38 | $ 10.49 |
Institutional Class | .98% | | | |
Actual | | $ 1,000.00 | $ 1,017.20 | $ 4.90 |
HypotheticalA | | $ 1,000.00 | $ 1,019.93 | $ 4.91 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Sanofi SA (France, Pharmaceuticals) | 2.3 | 2.3 |
Nestle SA (Switzerland, Food Products) | 2.2 | 2.3 |
Naspers Ltd. Class N (South Africa, Media) | 2.0 | 1.5 |
Novo Nordisk A/S (Denmark, Pharmaceuticals) | 1.6 | 1.3 |
SoftBank Corp. (Japan, Wireless Telecommunication Services) | 1.4 | 1.9 |
| 9.5 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Consumer Discretionary | 26.4 | 27.4 |
Financials | 17.9 | 19.6 |
Information Technology | 12.2 | 14.2 |
Consumer Staples | 11.3 | 11.1 |
Health Care | 9.7 | 7.7 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United Kingdom | 19.2 | 18.2 |
Japan | 16.4 | 18.9 |
France | 9.5 | 9.4 |
Switzerland | 7.6 | 7.6 |
United States of America | 6.8 | 5.9 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 99.0% | | | Stocks 99.5% | |
| Short-Term Investments and Net Other Assets (Liabilities) 1.0% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.5% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value (000s) |
Australia - 3.2% |
AMP Ltd. | 186,173 | | $ 873 |
BHP Billiton Ltd. | 211,768 | | 7,458 |
Carsales.com Ltd. | 135,616 | | 1,367 |
CSL Ltd. | 81,771 | | 5,198 |
Fortescue Metals Group Ltd. | 208,017 | | 976 |
G8 Education Ltd. | 764,060 | | 3,315 |
iSelect Ltd. | 2,567,502 | | 2,683 |
Macquarie Group Ltd. | 41,347 | | 2,216 |
TOTAL AUSTRALIA | | 24,086 |
Bailiwick of Jersey - 1.0% |
Experian PLC | 129,200 | | 2,478 |
Glencore Xstrata PLC | 526,430 | | 2,831 |
WPP PLC | 111,296 | | 2,400 |
TOTAL BAILIWICK OF JERSEY | | 7,709 |
Belgium - 0.7% |
Ageas | 35,290 | | 1,517 |
KBC Groupe SA | 25,776 | | 1,570 |
UCB SA (d) | 29,600 | | 2,427 |
TOTAL BELGIUM | | 5,514 |
Bermuda - 0.8% |
Clear Media Ltd. | 1,278,000 | | 1,278 |
Oriental Watch Holdings Ltd. | 2,992,000 | | 675 |
Signet Jewelers Ltd. | 41,700 | | 4,225 |
TOTAL BERMUDA | | 6,178 |
Brazil - 1.2% |
Anhanguera Educacional Participacoes SA | 244,200 | | 1,511 |
BB Seguridade Participacoes SA | 279,900 | | 3,280 |
Cielo SA | 256,160 | | 4,538 |
TOTAL BRAZIL | | 9,329 |
British Virgin Islands - 0.4% |
Gem Diamonds Ltd. (a) | 408,700 | | 1,145 |
Mail.Ru Group Ltd.: | | | |
GDR (a)(e) | 4,200 | | 114 |
GDR (Reg. S) (a) | 66,705 | | 1,812 |
TOTAL BRITISH VIRGIN ISLANDS | | 3,071 |
Canada - 0.4% |
Bauer Performance Sports Ltd. (a) | 23,000 | | 319 |
Common Stocks - continued |
| Shares | | Value (000s) |
Canada - continued |
Entertainment One Ltd. (a) | 442,400 | | $ 2,211 |
MDC Partners, Inc. Class A (sub. vtg.) | 16,600 | | 405 |
TOTAL CANADA | | 2,935 |
Cayman Islands - 3.7% |
Autohome, Inc. ADR Class A (d) | 15,500 | | 496 |
Biostime International Holdings Ltd. | 519,000 | | 3,448 |
Bitauto Holdings Ltd. ADR (a) | 42,600 | | 1,526 |
Cimc Enric Holdings Ltd. | 688,000 | | 996 |
Ctrip.com International Ltd. sponsored ADR (a) | 50,900 | | 2,379 |
GCL-Poly Energy Holdings Ltd. (a) | 8,557,000 | | 2,561 |
Greatview Aseptic Pack Co. Ltd. | 1,720,000 | | 1,049 |
Hengdeli Holdings Ltd. | 16,193,000 | | 3,112 |
iKang Healthcare Group, Inc. sponsored ADR | 5,000 | | 69 |
Qunar Cayman Islands Ltd. sponsored ADR (d) | 16,300 | | 403 |
Sitoy Group Holdings Ltd. | 436,000 | | 262 |
SouFun Holdings Ltd. ADR | 188,600 | | 2,220 |
Springland International Holdings Ltd. | 851,000 | | 335 |
Tencent Holdings Ltd. | 110,900 | | 6,912 |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 62,900 | | 2,139 |
TOTAL CAYMAN ISLANDS | | 27,907 |
China - 0.2% |
TravelSky Technology Ltd. (H Shares) | 1,713,000 | | 1,306 |
Denmark - 2.9% |
Danske Bank A/S | 51,111 | | 1,444 |
Novo Nordisk A/S: | | | |
Series B | 14,315 | | 650 |
Series B sponsored ADR | 261,000 | | 11,847 |
Vestas Wind Systems A/S (a) | 177,000 | | 7,856 |
TOTAL DENMARK | | 21,797 |
France - 9.5% |
AXA SA (d) | 49,558 | | 1,291 |
AXA SA sponsored ADR (d) | 67,200 | | 1,687 |
Beneteau SA (a) | 86,400 | | 1,495 |
BNP Paribas SA | 62,616 | | 4,701 |
Bollore | 2,702 | | 1,722 |
Bollore (a) | 14 | | 9 |
Danone SA | 72,622 | | 5,362 |
Edenred SA | 49,400 | | 1,666 |
Gameloft Se (a) | 239,900 | | 2,386 |
Common Stocks - continued |
| Shares | | Value (000s) |
France - continued |
Groupe FNAC SA (a) | 1 | | $ 0 |
Havas SA | 379,200 | | 3,014 |
Iliad SA | 6,166 | | 1,664 |
Ipsos SA | 57,360 | | 2,223 |
LVMH Moet Hennessy - Louis Vuitton SA | 38,892 | | 7,648 |
Pernod Ricard SA | 35,600 | | 4,273 |
Safran SA | 49,400 | | 3,320 |
Sanofi SA | 80,690 | | 8,708 |
Sanofi SA sponsored ADR | 155,200 | | 8,350 |
Societe Generale Series A | 36,162 | | 2,248 |
Solocal Group SA (a) | 371,200 | | 850 |
Total SA (a) | 129,000 | | 9,229 |
TOTAL FRANCE | | 71,846 |
Germany - 4.4% |
adidas AG | 33,700 | | 3,597 |
Allianz SE (d) | 37,195 | | 6,473 |
Axel Springer Verlag AG (d) | 51,400 | | 3,138 |
Bayer AG | 62,240 | | 8,635 |
Commerzbank AG (a) | 23,500 | | 417 |
CTS Eventim AG | 40,101 | | 2,554 |
Deutsche Bank AG | 24,700 | | 1,088 |
Deutsche Boerse AG | 36,969 | | 2,708 |
Linde AG | 10,929 | | 2,266 |
SAP AG | 32,590 | | 2,634 |
TOTAL GERMANY | | 33,510 |
Hong Kong - 1.2% |
AIA Group Ltd. | 970,800 | | 4,708 |
Television Broadcasts Ltd. | 761,000 | | 4,746 |
TOTAL HONG KONG | | 9,454 |
India - 0.2% |
INFO Edge India Ltd. (a) | 79,770 | | 774 |
Just Dial Ltd. | 20,627 | | 403 |
TOTAL INDIA | | 1,177 |
Ireland - 2.9% |
C&C Group PLC | 1,352,500 | | 8,050 |
CRH PLC | 158,192 | | 4,606 |
Glanbia PLC | 157,200 | | 2,346 |
Common Stocks - continued |
| Shares | | Value (000s) |
Ireland - continued |
Kingspan Group PLC (United Kingdom) | 203,300 | | $ 3,822 |
Paddy Power PLC (Ireland) | 42,200 | | 3,255 |
TOTAL IRELAND | | 22,079 |
Isle of Man - 0.3% |
Playtech Ltd. | 184,213 | | 2,075 |
Israel - 0.4% |
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 33,700 | | 1,743 |
Sarine Technologies Ltd. | 561,000 | | 1,240 |
TOTAL ISRAEL | | 2,983 |
Italy - 2.0% |
Assicurazioni Generali SpA | 71,400 | | 1,667 |
Brunello Cucinelli SpA | 4,900 | | 141 |
Eni SpA | 75,500 | | 1,955 |
Eni SpA sponsored ADR (d) | 22,300 | | 1,152 |
Intesa Sanpaolo SpA | 681,200 | | 2,331 |
Lottomatica SpA | 36,500 | | 1,070 |
Prada SpA | 426,400 | | 3,404 |
Tod's SpA (d) | 23,087 | | 3,232 |
TOTAL ITALY | | 14,952 |
Japan - 16.4% |
Cosmos Pharmaceutical Corp. | 51,100 | | 5,463 |
Daiwa Securities Group, Inc. | 208,000 | | 1,556 |
DENSO Corp. | 33,000 | | 1,502 |
Dentsu, Inc. | 183,300 | | 7,530 |
Enigmo, Inc. (a)(d) | 62,000 | | 3,281 |
Fuji Media Holdings, Inc. | 68,900 | | 1,160 |
Fujitsu Ltd. | 231,000 | | 1,356 |
Hitachi Ltd. | 806,000 | | 5,732 |
Honda Motor Co. Ltd. | 118,700 | | 3,939 |
Hoya Corp. | 69,900 | | 2,061 |
Infomart Corp. | 23,200 | | 365 |
Japan Tobacco, Inc. | 138,600 | | 4,550 |
JTEKT Corp. | 97,900 | | 1,427 |
Kakaku.com, Inc. | 64,500 | | 918 |
Keyence Corp. | 15,900 | | 6,125 |
Mitsubishi Corp. | 152,100 | | 2,720 |
Mitsubishi Electric Corp. | 318,000 | | 3,617 |
Mitsubishi UFJ Financial Group, Inc. | 1,172,700 | | 6,238 |
Mitsubishi UFJ Financial Group, Inc. sponsored ADR | 179,900 | | 962 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
MS&AD Insurance Group Holdings, Inc. | 75,400 | | $ 1,689 |
NEC Corp. | 394,000 | | 1,106 |
NEXT Co. Ltd. (d) | 412,500 | | 3,583 |
Nomura Holdings, Inc. | 204,200 | | 1,182 |
Nomura Holdings, Inc. sponsored ADR | 40,900 | | 240 |
Olympus Corp. (a) | 57,600 | | 1,758 |
ORIX Corp. | 582,000 | | 8,408 |
Pigeon Corp. | 15,400 | | 689 |
Proto Corp. | 36,500 | | 503 |
Rakuten, Inc. | 812,900 | | 10,512 |
Shinsei Bank Ltd. | 299,000 | | 582 |
Ship Healthcare Holdings, Inc. | 52,200 | | 1,777 |
SMC Corp. | 8,900 | | 2,113 |
SoftBank Corp. | 143,000 | | 10,616 |
Sumitomo Mitsui Financial Group, Inc. | 146,600 | | 5,795 |
Suzuki Motor Corp. | 54,400 | | 1,402 |
THK Co. Ltd. | 67,300 | | 1,424 |
Tokio Marine Holdings, Inc. | 59,300 | | 1,746 |
Toyota Motor Corp. | 133,900 | | 7,234 |
Toyota Motor Corp. sponsored ADR | 16,700 | | 1,811 |
TOTAL JAPAN | | 124,672 |
Kenya - 0.1% |
East African Breweries Ltd. | 116,216 | | 391 |
Korea (South) - 1.8% |
Korea Express Co. Ltd. (a) | 21,449 | | 2,263 |
Naver Corp. | 12,225 | | 8,733 |
Samsung Electronics Co. Ltd. | 2,195 | | 2,853 |
TOTAL KOREA (SOUTH) | | 13,849 |
Netherlands - 1.4% |
AEGON NV | 109,900 | | 1,007 |
ASML Holding NV | 13,857 | | 1,128 |
ING Groep NV: | | | |
(Certificaten Van Aandelen) (a) | 193,910 | | 2,772 |
sponsored ADR (a)(d) | 59,300 | | 848 |
Koninklijke Philips Electronics NV | 158,706 | | 5,081 |
TOTAL NETHERLANDS | | 10,836 |
New Zealand - 0.1% |
EBOS Group Ltd. | 74,349 | | 603 |
Common Stocks - continued |
| Shares | | Value (000s) |
Nigeria - 0.1% |
Guinness Nigeria PLC | 395,662 | | $ 433 |
Nigerian Breweries PLC | 673,311 | | 629 |
TOTAL NIGERIA | | 1,062 |
Norway - 1.1% |
DNB ASA (d) | 184,200 | | 3,257 |
Schibsted ASA (B Shares) | 79,200 | | 4,549 |
Statoil ASA sponsored ADR | 23,300 | | 710 |
TOTAL NORWAY | | 8,516 |
Philippines - 0.6% |
Alliance Global Group, Inc. | 3,777,700 | | 2,640 |
Melco Crown Philippines Resort (a) | 6,035,900 | | 1,847 |
TOTAL PHILIPPINES | | 4,487 |
South Africa - 2.6% |
Clicks Group Ltd. | 385,766 | | 2,352 |
Distell Group Ltd. | 69,881 | | 830 |
Life Healthcare Group Holdings Ltd. | 272,900 | | 1,084 |
Naspers Ltd. Class N | 161,400 | | 15,219 |
TOTAL SOUTH AFRICA | | 19,485 |
Spain - 1.5% |
Atresmedia Corporacion de Medios de Comunicacion SA | 229,100 | | 3,283 |
Banco Bilbao Vizcaya Argentaria SA | 263,306 | | 3,243 |
Banco Santander SA | 3,002 | | 30 |
Banco Santander SA (Spain) | 141,110 | | 1,403 |
Grifols SA ADR | 75,580 | | 3,102 |
TOTAL SPAIN | | 11,061 |
Sweden - 2.1% |
Eniro AB (a) | 231,400 | | 1,836 |
Fenix Outdoor AB | 9,900 | | 560 |
Investment AB Kinnevik (B Shares) | 94,700 | | 3,328 |
Nordea Bank AB | 249,400 | | 3,604 |
Svenska Cellulosa AB (SCA) (B Shares) (d) | 199,900 | | 5,598 |
Swedbank AB (A Shares) | 51,612 | | 1,371 |
TOTAL SWEDEN | | 16,297 |
Switzerland - 7.6% |
Compagnie Financiere Richemont SA Series A | 75,936 | | 7,705 |
Credit Suisse Group AG | 163,141 | | 5,172 |
Credit Suisse Group AG sponsored ADR | 11,300 | | 358 |
Common Stocks - continued |
| Shares | | Value (000s) |
Switzerland - continued |
Nestle SA | 218,204 | | $ 16,860 |
Sika AG (Bearer) | 790 | | 3,195 |
Swatch Group AG (Bearer) | 12,750 | | 8,178 |
Swiss Re Ltd. | 19,790 | | 1,728 |
Syngenta AG (Switzerland) | 16,570 | | 6,562 |
UBS AG | 208,359 | | 4,358 |
UBS AG (NY Shares) | 108,277 | | 2,264 |
Zurich Insurance Group AG | 5,614 | | 1,608 |
TOTAL SWITZERLAND | | 57,988 |
Taiwan - 0.5% |
MediaTek, Inc. | 137,000 | | 2,144 |
Wowprime Corp. | 85,000 | | 1,282 |
TOTAL TAIWAN | | 3,426 |
Thailand - 0.2% |
Thai Beverage PCL | 2,900,000 | | 1,365 |
United Kingdom - 19.2% |
Alabama Noor Hospitals Group PLC | 53,600 | | 903 |
AstraZeneca PLC (United Kingdom) | 95,412 | | 7,531 |
Aviva PLC | 184,200 | | 1,642 |
Barclays PLC | 1,171,848 | | 5,004 |
Barclays PLC sponsored ADR | 52,625 | | 900 |
BG Group PLC | 163,618 | | 3,310 |
BHP Billiton PLC | 121,504 | | 3,945 |
BP PLC | 183,400 | | 1,548 |
BP PLC sponsored ADR | 49,166 | | 2,489 |
Brammer PLC | 438,500 | | 3,474 |
Burberry Group PLC | 163,100 | | 4,089 |
Dechra Pharmaceuticals PLC | 73,200 | | 853 |
Diageo PLC | 231,700 | | 7,099 |
Dunelm Group PLC | 195,800 | | 3,096 |
Exova Group Ltd. PLC (a) | 12,700 | | 47 |
Foxtons Group PLC | 194,600 | | 1,045 |
GlaxoSmithKline PLC | 168,000 | | 4,642 |
Hays PLC | 989,300 | | 2,517 |
HSBC Holdings PLC sponsored ADR | 183,891 | | 9,437 |
Intertek Group PLC | 62,300 | | 3,057 |
ITV PLC | 1,571,900 | | 4,830 |
Johnson Matthey PLC | 72,319 | | 3,996 |
Lloyds Banking Group PLC (a) | 5,005,899 | | 6,384 |
M&C Saatchi PLC | 887,505 | | 4,125 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Moneysupermarket.com Group PLC | 512,100 | | $ 1,574 |
Perform Group PLC (a) | 393,400 | | 1,431 |
Poundland Group PLC (a) | 74,176 | | 435 |
Prudential PLC | 100,209 | | 2,304 |
Reckitt Benckiser Group PLC | 39,300 | | 3,168 |
Rightmove PLC | 28,000 | | 1,139 |
Rio Tinto PLC | 94,332 | | 5,129 |
Rolls-Royce Group PLC | 164,274 | | 2,912 |
Royal Bank of Scotland Group PLC (a) | 120,080 | | 608 |
Royal Dutch Shell PLC: | | | |
Class A (United Kingdom) | 196,128 | | 7,754 |
Class B (United Kingdom) | 158,266 | | 6,720 |
SABMiller PLC | 155,100 | | 8,434 |
Standard Chartered PLC (United Kingdom) | 113,879 | | 2,464 |
Sthree PLC | 190,600 | | 1,305 |
Taylor Wimpey PLC | 1,004,100 | | 1,782 |
Travis Perkins PLC | 143,100 | | 4,119 |
Vodafone Group PLC | 885,709 | | 3,363 |
William Hill PLC | 893,066 | | 5,348 |
TOTAL UNITED KINGDOM | | 145,952 |
United States of America - 6.8% |
BlackRock, Inc. Class A | 7,500 | | 2,258 |
Boston Beer Co., Inc. Class A (a) | 4,700 | | 1,156 |
Deckers Outdoor Corp. (a)(d) | 25,000 | | 1,974 |
Dunkin' Brands Group, Inc. | 55,400 | | 2,521 |
eBay, Inc. (a) | 55,300 | | 2,866 |
Facebook, Inc. Class A (a) | 80,700 | | 4,824 |
Gilead Sciences, Inc. (a) | 10,200 | | 801 |
GNC Holdings, Inc. | 43,100 | | 1,940 |
Google, Inc.: | | | |
Class A (a) | 6,700 | | 3,584 |
Class C (a) | 6,700 | | 3,529 |
Lorillard, Inc. | 34,300 | | 2,038 |
MercadoLibre, Inc. (d) | 22,100 | | 2,061 |
Monsanto Co. | 26,700 | | 2,956 |
Nimble Storage, Inc. | 1,100 | | 27 |
priceline.com, Inc. (a) | 3,500 | | 4,052 |
Tiffany & Co., Inc. | 51,200 | | 4,479 |
TripAdvisor, Inc. (a) | 17,900 | | 1,445 |
Verizon Communications, Inc. CDI | 42,705 | | 1,996 |
Common Stocks - continued |
| Shares | | Value (000s) |
United States of America - continued |
Visa, Inc. Class A | 25,200 | | $ 5,106 |
Yahoo!, Inc. (a) | 56,500 | | 2,031 |
TOTAL UNITED STATES OF AMERICA | | 51,644 |
TOTAL COMMON STOCKS (Cost $615,373) | 739,542
|
Nonconvertible Preferred Stocks - 1.5% |
| | | |
Germany - 1.5% |
Sartorius AG (non-vtg.) | 16,700 | | 2,173 |
Volkswagen AG | 32,800 | | 8,833 |
TOTAL GERMANY | | 11,006 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC (C Shares) | 22,012,716 | | 37 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $7,577) | 11,043
|
Money Market Funds - 4.5% |
| | | |
Fidelity Cash Central Fund, 0.11% (b) | 4,997,879 | | 4,998 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 29,206,335 | | 29,206 |
TOTAL MONEY MARKET FUNDS (Cost $34,204) | 34,204
|
TOTAL INVESTMENT PORTFOLIO - 103.5% (Cost $657,154) | 784,789 |
NET OTHER ASSETS (LIABILITIES) - (3.5)% | (26,555) |
NET ASSETS - 100% | $ 758,234 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $114,000 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 (Amounts in thousands) |
Fidelity Cash Central Fund | $ 7 |
Fidelity Securities Lending Cash Central Fund | 133 |
Total | $ 140 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description (Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 201,034 | $ 187,461 | $ 13,573 | $ - |
Consumer Staples | 86,277 | 56,956 | 29,321 | - |
Energy | 34,867 | 7,661 | 27,206 | - |
Financials | 137,014 | 80,010 | 57,004 | - |
Health Care | 73,250 | 51,719 | 21,531 | - |
Industrials | 61,862 | 56,781 | 5,081 | - |
Information Technology | 92,528 | 89,894 | 2,634 | - |
Materials | 46,114 | 18,414 | 27,700 | - |
Telecommunication Services | 17,639 | 14,276 | 3,363 | - |
Money Market Funds | 34,204 | 34,204 | - | - |
Total Investments in Securities: | $ 784,789 | $ 597,376 | $ 187,413 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total (000s) |
Level 1 to Level 2 | $ 15,211 |
Level 2 to Level 1 | $ 95,851 |
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, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $28,233) - See accompanying schedule: Unaffiliated issuers (cost $622,950) | $ 750,585 | |
Fidelity Central Funds (cost $34,204) | 34,204 | |
Total Investments (cost $657,154) | | $ 784,789 |
Cash | | 175 |
Foreign currency held at value (cost $515) | | 515 |
Receivable for investments sold | | 5,981 |
Receivable for fund shares sold | | 530 |
Dividends receivable | | 2,656 |
Distributions receivable from Fidelity Central Funds | | 49 |
Prepaid expenses | | 1 |
Other receivables | | 76 |
Total assets | | 794,772 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,434 | |
Payable for fund shares redeemed | 1,109 | |
Accrued management fee | 385 | |
Distribution and service plan fees payable | 168 | |
Other affiliated payables | 159 | |
Other payables and accrued expenses | 77 | |
Collateral on securities loaned, at value | 29,206 | |
Total liabilities | | 36,538 |
| | |
Net Assets | | $ 758,234 |
Net Assets consist of: | | |
Paid in capital | | $ 700,576 |
Undistributed net investment income | | 4,636 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (74,607) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 127,629 |
Net Assets | | $ 758,234 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($68,156 ÷ 3,142.6 shares) | | $ 21.69 |
| | |
Maximum offering price per share (100/94.25 of $21.69) | | $ 23.01 |
Class T: Net Asset Value and redemption price per share ($319,948 ÷ 14,375.6 shares) | | $ 22.26 |
| | |
Maximum offering price per share (100/96.50 of $22.26) | | $ 23.07 |
Class B: Net Asset Value and offering price per share ($2,537 ÷ 120.1 shares)A | | $ 21.12 |
| | |
Class C: Net Asset Value and offering price per share ($20,927 ÷ 982.2 shares)A | | $ 21.31 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($346,666 ÷ 15,664.8 shares) | | $ 22.13 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 9,794 |
Income from Fidelity Central Funds | | 140 |
Income before foreign taxes withheld | | 9,934 |
Less foreign taxes withheld | | (473) |
Total income | | 9,461 |
| | |
Expenses | | |
Management fee Basic fee | $ 2,649 | |
Performance adjustment | 23 | |
Transfer agent fees | 758 | |
Distribution and service plan fees | 1,035 | |
Accounting and security lending fees | 185 | |
Custodian fees and expenses | 76 | |
Independent trustees' compensation | 2 | |
Registration fees | 53 | |
Audit | 40 | |
Legal | 2 | |
Miscellaneous | 11 | |
Total expenses | | 4,834 |
Net investment income (loss) | | 4,627 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 38,174 | |
Foreign currency transactions | (39) | |
Total net realized gain (loss) | | 38,135 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (31,554) | |
Assets and liabilities in foreign currencies | 14 | |
Total change in net unrealized appreciation (depreciation) | | (31,540) |
Net gain (loss) | | 6,595 |
Net increase (decrease) in net assets resulting from operations | | $ 11,222 |
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, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 4,627 | $ 6,363 |
Net realized gain (loss) | 38,135 | 35,511 |
Change in net unrealized appreciation (depreciation) | (31,540) | 138,935 |
Net increase (decrease) in net assets resulting from operations | 11,222 | 180,809 |
Distributions to shareholders from net investment income | (6,228) | (8,840) |
Distributions to shareholders from net realized gain | (2,640) | (1,437) |
Total distributions | (8,868) | (10,277) |
Share transactions - net increase (decrease) | 27,458 | (49,806) |
Redemption fees | 16 | 12 |
Total increase (decrease) in net assets | 29,828 | 120,738 |
| | |
Net Assets | | |
Beginning of period | 728,406 | 607,668 |
End of period (including undistributed net investment income of $4,636 and undistributed net investment income of $6,237, respectively) | $ 758,234 | $ 728,406 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 21.61 | $ 16.76 | $ 16.13 | $ 17.77 | $ 15.68 | $ 13.56 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .13 | .17 | .23 | .16 | .17 | .24 |
Net realized and unrealized gain (loss) | .21 | 4.97 | .64 | (1.54) | 2.16 | 2.12 |
Total from investment operations | .34 | 5.14 | .87 | (1.38) | 2.33 | 2.36 |
Distributions from net investment income | (.18) | (.25) | (.24) | (.21) | (.21) | (.24) |
Distributions from net realized gain | (.08) | (.04) | - | (.05) | (.03) | - |
Total distributions | (.26) | (.29) | (.24) | (.26) | (.24) | (.24) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 21.69 | $ 21.61 | $ 16.76 | $ 16.13 | $ 17.77 | $ 15.68 |
Total ReturnB,C,D | 1.57% | 31.13% | 5.51% | (7.95)% | 14.99% | 17.97% |
Ratios to Average Net AssetsF,H | | | | | |
Expenses before reductions | 1.32%A | 1.37% | 1.33% | 1.34% | 1.36% | 1.36% |
Expenses net of fee waivers, if any | 1.32%A | 1.37% | 1.33% | 1.34% | 1.36% | 1.36% |
Expenses net of all reductions | 1.32%A | 1.36% | 1.32% | 1.32% | 1.33% | 1.33% |
Net investment income (loss) | 1.18%A | .91% | 1.43% | .90% | 1.04% | 1.79% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 68 | $ 69 | $ 60 | $ 60 | $ 70 | $ 72 |
Portfolio turnover rateG | 34%A | 37% | 36% | 44% | 53% | 83% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.16 | $ 17.16 | $ 16.50 | $ 18.18 | $ 16.03 | $ 13.84 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .11 | .14 | .20 | .13 | .14 | .22 |
Net realized and unrealized gain (loss) | .22 | 5.11 | .66 | (1.59) | 2.23 | 2.17 |
Total from investment operations | .33 | 5.25 | .86 | (1.46) | 2.37 | 2.39 |
Distributions from net investment income | (.15) | (.21) | (.20) | (.17) | (.19) | (.20) |
Distributions from net realized gain | (.08) | (.04) | - | (.05) | (.03) | - |
Total distributions | (.23) | (.25) | (.20) | (.22) | (.22) | (.20) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 22.26 | $ 22.16 | $ 17.16 | $ 16.50 | $ 18.18 | $ 16.03 |
Total ReturnB,C,D | 1.50% | 30.96% | 5.32% | (8.17)% | 14.88% | 17.70% |
Ratios to Average Net AssetsF,H | | | | | |
Expenses before reductions | 1.50%A | 1.53% | 1.51% | 1.52% | 1.53% | 1.57% |
Expenses net of fee waivers, if any | 1.50%A | 1.53% | 1.51% | 1.51% | 1.53% | 1.57% |
Expenses net of all reductions | 1.50%A | 1.52% | 1.50% | 1.49% | 1.50% | 1.54% |
Net investment income (loss) | 1.00%A | .74% | 1.25% | .73% | .86% | 1.58% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 320 | $ 329 | $ 271 | $ 305 | $ 371 | $ 367 |
Portfolio turnover rateG | 34%A | 37% | 36% | 44% | 53% | 83% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 21.02 | $ 16.25 | $ 15.58 | $ 17.18 | $ 15.16 | $ 13.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .04 | .03 | .10 | .03 | .04 | .13 |
Net realized and unrealized gain (loss) | .20 | 4.85 | .63 | (1.51) | 2.10 | 2.08 |
Total from investment operations | .24 | 4.88 | .73 | (1.48) | 2.14 | 2.21 |
Distributions from net investment income | (.06) | (.07) | (.06) | (.08) | (.09) | (.07) |
Distributions from net realized gain | (.08) | (.04) | - | (.05) | (.03) | - |
Total distributions | (.14) | (.11) | (.06) | (.12)J | (.12) | (.07) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 21.12 | $ 21.02 | $ 16.25 | $ 15.58 | $ 17.18 | $ 15.16 |
Total ReturnB,C,D | 1.14% | 30.21% | 4.72% | (8.67)% | 14.15% | 17.09% |
Ratios to Average Net AssetsF,H | | | | | |
Expenses before reductions | 2.11%A | 2.12% | 2.09% | 2.10% | 2.11% | 2.12% |
Expenses net of fee waivers, if any | 2.11%A | 2.12% | 2.09% | 2.09% | 2.11% | 2.12% |
Expenses net of all reductions | 2.11%A | 2.11% | 2.07% | 2.07% | 2.09% | 2.08% |
Net investment income (loss) | .39%A | .16% | .67% | .15% | .28% | 1.04% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 3 | $ 3 | $ 3 | $ 4 | $ 7 | $ 8 |
Portfolio turnover rateG | 34%A | 37% | 36% | 44% | 53% | 83% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. JTotal 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 21.21 | $ 16.43 | $ 15.78 | $ 17.39 | $ 15.36 | $ 13.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .04 | .03 | .11 | .03 | .05 | .14 |
Net realized and unrealized gain (loss) | .21 | 4.89 | .64 | (1.52) | 2.12 | 2.09 |
Total from investment operations | .25 | 4.92 | .75 | (1.49) | 2.17 | 2.23 |
Distributions from net investment income | (.07) | (.10) | (.10) | (.07) | (.11) | (.09) |
Distributions from net realized gain | (.08) | (.04) | - | (.05) | (.03) | - |
Total distributions | (.15) | (.14) | (.10) | (.12) | (.14) | (.09) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 21.31 | $ 21.21 | $ 16.43 | $ 15.78 | $ 17.39 | $ 15.36 |
Total ReturnB,C,D | 1.17% | 30.16% | 4.78% | (8.67)% | 14.17% | 17.06% |
Ratios to Average Net AssetsF,H | | | | | |
Expenses before reductions | 2.10%A | 2.12% | 2.09% | 2.09% | 2.10% | 2.11% |
Expenses net of fee waivers, if any | 2.10%A | 2.12% | 2.09% | 2.09% | 2.10% | 2.11% |
Expenses net of all reductions | 2.10%A | 2.10% | 2.07% | 2.07% | 2.08% | 2.08% |
Net investment income (loss) | .40%A | .16% | .67% | .15% | .29% | 1.05% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 21 | $ 21 | $ 16 | $ 19 | $ 22 | $ 23 |
Portfolio turnover rateG | 34%A | 37% | 36% | 44% | 53% | 83% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.07 | $ 17.11 | $ 16.45 | $ 18.10 | $ 15.95 | $ 13.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .17 | .24 | .29 | .23 | .22 | .29 |
Net realized and unrealized gain (loss) | .21 | 5.08 | .65 | (1.59) | 2.23 | 2.14 |
Total from investment operations | .38 | 5.32 | .94 | (1.36) | 2.45 | 2.43 |
Distributions from net investment income | (.24) | (.31) | (.28) | (.24) | (.27) | (.31) |
Distributions from net realized gain | (.08) | (.04) | - | (.05) | (.03) | - |
Total distributions | (.32) | (.36)I | (.28) | (.29) | (.30) | (.31) |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 22.13 | $ 22.07 | $ 17.11 | $ 16.45 | $ 18.10 | $ 15.95 |
Total ReturnB,C | 1.72% | 31.63% | 5.91% | (7.70)% | 15.49% | 18.32% |
Ratios to Average Net AssetsE,G | | | | | |
Expenses before reductions | .98%A | 1.02% | .99% | 1.00% | 1.01% | 1.06% |
Expenses net of fee waivers, if any | .98%A | 1.02% | .99% | .99% | 1.01% | 1.06% |
Expenses net of all reductions | .98%A | 1.01% | .97% | .97% | .98% | 1.02% |
Net investment income (loss) | 1.52%A | 1.26% | 1.77% | 1.25% | 1.39% | 2.10% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 347 | $ 307 | $ 257 | $ 349 | $ 678 | $ 727 |
Portfolio turnover rateF | 34%A | 37% | 36% | 44% | 53% | 83% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount represents less than $.01 per share. ITotal distributions of $.36 per share is comprised of distributions from net investment income of $.314 and distributions from net realized gain of $.041 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® 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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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 as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 162,909 |
Gross unrealized depreciation | (49,192) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 113,717 |
| |
Tax cost | $ 671,072 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (98,262) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $147,021 and $127,902, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to its benchmark index, the MSCI EAFE Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .71% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 89 | $ 4 |
Class T | .25% | .25% | 828 | 10 |
Class B | .75% | .25% | 14 | 11 |
Class C | .75% | .25% | 104 | 11 |
| | | $ 1,035 | $ 36 |
Semiannual Report
5. 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 shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 8 |
Class T | 2 |
Class B* | 1 |
Class C* | 1 |
| $ 12 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 96 | .27 |
Class T | 329 | .20 |
Class B | 4 | .31 |
Class C | 31 | .30 |
Institutional Class | 298 | .18 |
| $ 758 | |
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income
Semiannual Report
7. Security Lending - continued
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 $133, including two hundred eighty nine dollars.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 576 | $ 874 |
Class T | 2,245 | 3,206 |
Class B | 8 | 13 |
Class C | 65 | 95 |
Institutional Class | 3,334 | 4,652 |
Total | $ 6,228 | $ 8,840 |
From net realized gain | | |
Class A | $ 256 | $ 144 |
Class T | 1,182 | 638 |
Class B | 11 | 7 |
Class C | 75 | 40 |
Institutional Class | 1,116 | 608 |
Total | $ 2,640 | $ 1,437 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 386 | 381 | $ 8,464 | $ 7,246 |
Reinvestment of distributions | 36 | 56 | 778 | 948 |
Shares redeemed | (455) | (864) | (9,937) | (16,342) |
Net increase (decrease) | (33) | (427) | $ (695) | $ (8,148) |
Class T | | | | |
Shares sold | 1,326 | 2,667 | $ 29,826 | $ 51,520 |
Reinvestment of distributions | 150 | 214 | 3,346 | 3,745 |
Shares redeemed | (1,934) | (3,829) | (43,462) | (73,469) |
Net increase (decrease) | (458) | (948) | $ (10,290) | $ (18,204) |
Class B | | | | |
Shares sold | 6 | 15 | $ 125 | $ 313 |
Reinvestment of distributions | 1 | 1 | 17 | 18 |
Shares redeemed | (27) | (62) | (572) | (1,123) |
Net increase (decrease) | (20) | (46) | $ (430) | $ (792) |
Class C | | | | |
Shares sold | 116 | 200 | $ 2,489 | $ 3,879 |
Reinvestment of distributions | 6 | 7 | 124 | 120 |
Shares redeemed | (119) | (208) | (2,537) | (3,808) |
Net increase (decrease) | 3 | (1) | $ 76 | $ 191 |
Institutional Class | | | | |
Shares sold | 2,100 | 958 | $ 46,894 | $ 18,221 |
Reinvestment of distributions | 198 | 298 | 4,371 | 5,176 |
Shares redeemed | (556) | (2,370) | (12,468) | (46,250) |
Net increase (decrease) | 1,742 | (1,114) | $ 38,797 | $ (22,853) |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers International II Fund was the owner of record of approximately 17% 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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
OSI-USAN-0614
1.784904.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Overseas
Fund - Class A, Class T, Class B and Class C
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.32% | | | |
Actual | | $ 1,000.00 | $ 1,015.70 | $ 6.60 |
HypotheticalA | | $ 1,000.00 | $ 1,018.25 | $ 6.61 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 1,015.00 | $ 7.49 |
HypotheticalA | | $ 1,000.00 | $ 1,017.36 | $ 7.50 |
Class B | 2.11% | | | |
Actual | | $ 1,000.00 | $ 1,011.40 | $ 10.52 |
HypotheticalA | | $ 1,000.00 | $ 1,014.33 | $ 10.54 |
Class C | 2.10% | | | |
Actual | | $ 1,000.00 | $ 1,011.70 | $ 10.47 |
HypotheticalA | | $ 1,000.00 | $ 1,014.38 | $ 10.49 |
Institutional Class | .98% | | | |
Actual | | $ 1,000.00 | $ 1,017.20 | $ 4.90 |
HypotheticalA | | $ 1,000.00 | $ 1,019.93 | $ 4.91 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Sanofi SA (France, Pharmaceuticals) | 2.3 | 2.3 |
Nestle SA (Switzerland, Food Products) | 2.2 | 2.3 |
Naspers Ltd. Class N (South Africa, Media) | 2.0 | 1.5 |
Novo Nordisk A/S (Denmark, Pharmaceuticals) | 1.6 | 1.3 |
SoftBank Corp. (Japan, Wireless Telecommunication Services) | 1.4 | 1.9 |
| 9.5 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Consumer Discretionary | 26.4 | 27.4 |
Financials | 17.9 | 19.6 |
Information Technology | 12.2 | 14.2 |
Consumer Staples | 11.3 | 11.1 |
Health Care | 9.7 | 7.7 |
Top Five Countries as of April 30, 2014 |
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United Kingdom | 19.2 | 18.2 |
Japan | 16.4 | 18.9 |
France | 9.5 | 9.4 |
Switzerland | 7.6 | 7.6 |
United States of America | 6.8 | 5.9 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014 | As of October 31, 2013 |
| Stocks 99.0% | | | Stocks 99.5% | |
| Short-Term Investments and Net Other Assets (Liabilities) 1.0% | | | Short-Term Investments and Net Other Assets (Liabilities) 0.5% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value (000s) |
Australia - 3.2% |
AMP Ltd. | 186,173 | | $ 873 |
BHP Billiton Ltd. | 211,768 | | 7,458 |
Carsales.com Ltd. | 135,616 | | 1,367 |
CSL Ltd. | 81,771 | | 5,198 |
Fortescue Metals Group Ltd. | 208,017 | | 976 |
G8 Education Ltd. | 764,060 | | 3,315 |
iSelect Ltd. | 2,567,502 | | 2,683 |
Macquarie Group Ltd. | 41,347 | | 2,216 |
TOTAL AUSTRALIA | | 24,086 |
Bailiwick of Jersey - 1.0% |
Experian PLC | 129,200 | | 2,478 |
Glencore Xstrata PLC | 526,430 | | 2,831 |
WPP PLC | 111,296 | | 2,400 |
TOTAL BAILIWICK OF JERSEY | | 7,709 |
Belgium - 0.7% |
Ageas | 35,290 | | 1,517 |
KBC Groupe SA | 25,776 | | 1,570 |
UCB SA (d) | 29,600 | | 2,427 |
TOTAL BELGIUM | | 5,514 |
Bermuda - 0.8% |
Clear Media Ltd. | 1,278,000 | | 1,278 |
Oriental Watch Holdings Ltd. | 2,992,000 | | 675 |
Signet Jewelers Ltd. | 41,700 | | 4,225 |
TOTAL BERMUDA | | 6,178 |
Brazil - 1.2% |
Anhanguera Educacional Participacoes SA | 244,200 | | 1,511 |
BB Seguridade Participacoes SA | 279,900 | | 3,280 |
Cielo SA | 256,160 | | 4,538 |
TOTAL BRAZIL | | 9,329 |
British Virgin Islands - 0.4% |
Gem Diamonds Ltd. (a) | 408,700 | | 1,145 |
Mail.Ru Group Ltd.: | | | |
GDR (a)(e) | 4,200 | | 114 |
GDR (Reg. S) (a) | 66,705 | | 1,812 |
TOTAL BRITISH VIRGIN ISLANDS | | 3,071 |
Canada - 0.4% |
Bauer Performance Sports Ltd. (a) | 23,000 | | 319 |
Common Stocks - continued |
| Shares | | Value (000s) |
Canada - continued |
Entertainment One Ltd. (a) | 442,400 | | $ 2,211 |
MDC Partners, Inc. Class A (sub. vtg.) | 16,600 | | 405 |
TOTAL CANADA | | 2,935 |
Cayman Islands - 3.7% |
Autohome, Inc. ADR Class A (d) | 15,500 | | 496 |
Biostime International Holdings Ltd. | 519,000 | | 3,448 |
Bitauto Holdings Ltd. ADR (a) | 42,600 | | 1,526 |
Cimc Enric Holdings Ltd. | 688,000 | | 996 |
Ctrip.com International Ltd. sponsored ADR (a) | 50,900 | | 2,379 |
GCL-Poly Energy Holdings Ltd. (a) | 8,557,000 | | 2,561 |
Greatview Aseptic Pack Co. Ltd. | 1,720,000 | | 1,049 |
Hengdeli Holdings Ltd. | 16,193,000 | | 3,112 |
iKang Healthcare Group, Inc. sponsored ADR | 5,000 | | 69 |
Qunar Cayman Islands Ltd. sponsored ADR (d) | 16,300 | | 403 |
Sitoy Group Holdings Ltd. | 436,000 | | 262 |
SouFun Holdings Ltd. ADR | 188,600 | | 2,220 |
Springland International Holdings Ltd. | 851,000 | | 335 |
Tencent Holdings Ltd. | 110,900 | | 6,912 |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 62,900 | | 2,139 |
TOTAL CAYMAN ISLANDS | | 27,907 |
China - 0.2% |
TravelSky Technology Ltd. (H Shares) | 1,713,000 | | 1,306 |
Denmark - 2.9% |
Danske Bank A/S | 51,111 | | 1,444 |
Novo Nordisk A/S: | | | |
Series B | 14,315 | | 650 |
Series B sponsored ADR | 261,000 | | 11,847 |
Vestas Wind Systems A/S (a) | 177,000 | | 7,856 |
TOTAL DENMARK | | 21,797 |
France - 9.5% |
AXA SA (d) | 49,558 | | 1,291 |
AXA SA sponsored ADR (d) | 67,200 | | 1,687 |
Beneteau SA (a) | 86,400 | | 1,495 |
BNP Paribas SA | 62,616 | | 4,701 |
Bollore | 2,702 | | 1,722 |
Bollore (a) | 14 | | 9 |
Danone SA | 72,622 | | 5,362 |
Edenred SA | 49,400 | | 1,666 |
Gameloft Se (a) | 239,900 | | 2,386 |
Common Stocks - continued |
| Shares | | Value (000s) |
France - continued |
Groupe FNAC SA (a) | 1 | | $ 0 |
Havas SA | 379,200 | | 3,014 |
Iliad SA | 6,166 | | 1,664 |
Ipsos SA | 57,360 | | 2,223 |
LVMH Moet Hennessy - Louis Vuitton SA | 38,892 | | 7,648 |
Pernod Ricard SA | 35,600 | | 4,273 |
Safran SA | 49,400 | | 3,320 |
Sanofi SA | 80,690 | | 8,708 |
Sanofi SA sponsored ADR | 155,200 | | 8,350 |
Societe Generale Series A | 36,162 | | 2,248 |
Solocal Group SA (a) | 371,200 | | 850 |
Total SA (a) | 129,000 | | 9,229 |
TOTAL FRANCE | | 71,846 |
Germany - 4.4% |
adidas AG | 33,700 | | 3,597 |
Allianz SE (d) | 37,195 | | 6,473 |
Axel Springer Verlag AG (d) | 51,400 | | 3,138 |
Bayer AG | 62,240 | | 8,635 |
Commerzbank AG (a) | 23,500 | | 417 |
CTS Eventim AG | 40,101 | | 2,554 |
Deutsche Bank AG | 24,700 | | 1,088 |
Deutsche Boerse AG | 36,969 | | 2,708 |
Linde AG | 10,929 | | 2,266 |
SAP AG | 32,590 | | 2,634 |
TOTAL GERMANY | | 33,510 |
Hong Kong - 1.2% |
AIA Group Ltd. | 970,800 | | 4,708 |
Television Broadcasts Ltd. | 761,000 | | 4,746 |
TOTAL HONG KONG | | 9,454 |
India - 0.2% |
INFO Edge India Ltd. (a) | 79,770 | | 774 |
Just Dial Ltd. | 20,627 | | 403 |
TOTAL INDIA | | 1,177 |
Ireland - 2.9% |
C&C Group PLC | 1,352,500 | | 8,050 |
CRH PLC | 158,192 | | 4,606 |
Glanbia PLC | 157,200 | | 2,346 |
Common Stocks - continued |
| Shares | | Value (000s) |
Ireland - continued |
Kingspan Group PLC (United Kingdom) | 203,300 | | $ 3,822 |
Paddy Power PLC (Ireland) | 42,200 | | 3,255 |
TOTAL IRELAND | | 22,079 |
Isle of Man - 0.3% |
Playtech Ltd. | 184,213 | | 2,075 |
Israel - 0.4% |
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 33,700 | | 1,743 |
Sarine Technologies Ltd. | 561,000 | | 1,240 |
TOTAL ISRAEL | | 2,983 |
Italy - 2.0% |
Assicurazioni Generali SpA | 71,400 | | 1,667 |
Brunello Cucinelli SpA | 4,900 | | 141 |
Eni SpA | 75,500 | | 1,955 |
Eni SpA sponsored ADR (d) | 22,300 | | 1,152 |
Intesa Sanpaolo SpA | 681,200 | | 2,331 |
Lottomatica SpA | 36,500 | | 1,070 |
Prada SpA | 426,400 | | 3,404 |
Tod's SpA (d) | 23,087 | | 3,232 |
TOTAL ITALY | | 14,952 |
Japan - 16.4% |
Cosmos Pharmaceutical Corp. | 51,100 | | 5,463 |
Daiwa Securities Group, Inc. | 208,000 | | 1,556 |
DENSO Corp. | 33,000 | | 1,502 |
Dentsu, Inc. | 183,300 | | 7,530 |
Enigmo, Inc. (a)(d) | 62,000 | | 3,281 |
Fuji Media Holdings, Inc. | 68,900 | | 1,160 |
Fujitsu Ltd. | 231,000 | | 1,356 |
Hitachi Ltd. | 806,000 | | 5,732 |
Honda Motor Co. Ltd. | 118,700 | | 3,939 |
Hoya Corp. | 69,900 | | 2,061 |
Infomart Corp. | 23,200 | | 365 |
Japan Tobacco, Inc. | 138,600 | | 4,550 |
JTEKT Corp. | 97,900 | | 1,427 |
Kakaku.com, Inc. | 64,500 | | 918 |
Keyence Corp. | 15,900 | | 6,125 |
Mitsubishi Corp. | 152,100 | | 2,720 |
Mitsubishi Electric Corp. | 318,000 | | 3,617 |
Mitsubishi UFJ Financial Group, Inc. | 1,172,700 | | 6,238 |
Mitsubishi UFJ Financial Group, Inc. sponsored ADR | 179,900 | | 962 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
MS&AD Insurance Group Holdings, Inc. | 75,400 | | $ 1,689 |
NEC Corp. | 394,000 | | 1,106 |
NEXT Co. Ltd. (d) | 412,500 | | 3,583 |
Nomura Holdings, Inc. | 204,200 | | 1,182 |
Nomura Holdings, Inc. sponsored ADR | 40,900 | | 240 |
Olympus Corp. (a) | 57,600 | | 1,758 |
ORIX Corp. | 582,000 | | 8,408 |
Pigeon Corp. | 15,400 | | 689 |
Proto Corp. | 36,500 | | 503 |
Rakuten, Inc. | 812,900 | | 10,512 |
Shinsei Bank Ltd. | 299,000 | | 582 |
Ship Healthcare Holdings, Inc. | 52,200 | | 1,777 |
SMC Corp. | 8,900 | | 2,113 |
SoftBank Corp. | 143,000 | | 10,616 |
Sumitomo Mitsui Financial Group, Inc. | 146,600 | | 5,795 |
Suzuki Motor Corp. | 54,400 | | 1,402 |
THK Co. Ltd. | 67,300 | | 1,424 |
Tokio Marine Holdings, Inc. | 59,300 | | 1,746 |
Toyota Motor Corp. | 133,900 | | 7,234 |
Toyota Motor Corp. sponsored ADR | 16,700 | | 1,811 |
TOTAL JAPAN | | 124,672 |
Kenya - 0.1% |
East African Breweries Ltd. | 116,216 | | 391 |
Korea (South) - 1.8% |
Korea Express Co. Ltd. (a) | 21,449 | | 2,263 |
Naver Corp. | 12,225 | | 8,733 |
Samsung Electronics Co. Ltd. | 2,195 | | 2,853 |
TOTAL KOREA (SOUTH) | | 13,849 |
Netherlands - 1.4% |
AEGON NV | 109,900 | | 1,007 |
ASML Holding NV | 13,857 | | 1,128 |
ING Groep NV: | | | |
(Certificaten Van Aandelen) (a) | 193,910 | | 2,772 |
sponsored ADR (a)(d) | 59,300 | | 848 |
Koninklijke Philips Electronics NV | 158,706 | | 5,081 |
TOTAL NETHERLANDS | | 10,836 |
New Zealand - 0.1% |
EBOS Group Ltd. | 74,349 | | 603 |
Common Stocks - continued |
| Shares | | Value (000s) |
Nigeria - 0.1% |
Guinness Nigeria PLC | 395,662 | | $ 433 |
Nigerian Breweries PLC | 673,311 | | 629 |
TOTAL NIGERIA | | 1,062 |
Norway - 1.1% |
DNB ASA (d) | 184,200 | | 3,257 |
Schibsted ASA (B Shares) | 79,200 | | 4,549 |
Statoil ASA sponsored ADR | 23,300 | | 710 |
TOTAL NORWAY | | 8,516 |
Philippines - 0.6% |
Alliance Global Group, Inc. | 3,777,700 | | 2,640 |
Melco Crown Philippines Resort (a) | 6,035,900 | | 1,847 |
TOTAL PHILIPPINES | | 4,487 |
South Africa - 2.6% |
Clicks Group Ltd. | 385,766 | | 2,352 |
Distell Group Ltd. | 69,881 | | 830 |
Life Healthcare Group Holdings Ltd. | 272,900 | | 1,084 |
Naspers Ltd. Class N | 161,400 | | 15,219 |
TOTAL SOUTH AFRICA | | 19,485 |
Spain - 1.5% |
Atresmedia Corporacion de Medios de Comunicacion SA | 229,100 | | 3,283 |
Banco Bilbao Vizcaya Argentaria SA | 263,306 | | 3,243 |
Banco Santander SA | 3,002 | | 30 |
Banco Santander SA (Spain) | 141,110 | | 1,403 |
Grifols SA ADR | 75,580 | | 3,102 |
TOTAL SPAIN | | 11,061 |
Sweden - 2.1% |
Eniro AB (a) | 231,400 | | 1,836 |
Fenix Outdoor AB | 9,900 | | 560 |
Investment AB Kinnevik (B Shares) | 94,700 | | 3,328 |
Nordea Bank AB | 249,400 | | 3,604 |
Svenska Cellulosa AB (SCA) (B Shares) (d) | 199,900 | | 5,598 |
Swedbank AB (A Shares) | 51,612 | | 1,371 |
TOTAL SWEDEN | | 16,297 |
Switzerland - 7.6% |
Compagnie Financiere Richemont SA Series A | 75,936 | | 7,705 |
Credit Suisse Group AG | 163,141 | | 5,172 |
Credit Suisse Group AG sponsored ADR | 11,300 | | 358 |
Common Stocks - continued |
| Shares | | Value (000s) |
Switzerland - continued |
Nestle SA | 218,204 | | $ 16,860 |
Sika AG (Bearer) | 790 | | 3,195 |
Swatch Group AG (Bearer) | 12,750 | | 8,178 |
Swiss Re Ltd. | 19,790 | | 1,728 |
Syngenta AG (Switzerland) | 16,570 | | 6,562 |
UBS AG | 208,359 | | 4,358 |
UBS AG (NY Shares) | 108,277 | | 2,264 |
Zurich Insurance Group AG | 5,614 | | 1,608 |
TOTAL SWITZERLAND | | 57,988 |
Taiwan - 0.5% |
MediaTek, Inc. | 137,000 | | 2,144 |
Wowprime Corp. | 85,000 | | 1,282 |
TOTAL TAIWAN | | 3,426 |
Thailand - 0.2% |
Thai Beverage PCL | 2,900,000 | | 1,365 |
United Kingdom - 19.2% |
Alabama Noor Hospitals Group PLC | 53,600 | | 903 |
AstraZeneca PLC (United Kingdom) | 95,412 | | 7,531 |
Aviva PLC | 184,200 | | 1,642 |
Barclays PLC | 1,171,848 | | 5,004 |
Barclays PLC sponsored ADR | 52,625 | | 900 |
BG Group PLC | 163,618 | | 3,310 |
BHP Billiton PLC | 121,504 | | 3,945 |
BP PLC | 183,400 | | 1,548 |
BP PLC sponsored ADR | 49,166 | | 2,489 |
Brammer PLC | 438,500 | | 3,474 |
Burberry Group PLC | 163,100 | | 4,089 |
Dechra Pharmaceuticals PLC | 73,200 | | 853 |
Diageo PLC | 231,700 | | 7,099 |
Dunelm Group PLC | 195,800 | | 3,096 |
Exova Group Ltd. PLC (a) | 12,700 | | 47 |
Foxtons Group PLC | 194,600 | | 1,045 |
GlaxoSmithKline PLC | 168,000 | | 4,642 |
Hays PLC | 989,300 | | 2,517 |
HSBC Holdings PLC sponsored ADR | 183,891 | | 9,437 |
Intertek Group PLC | 62,300 | | 3,057 |
ITV PLC | 1,571,900 | | 4,830 |
Johnson Matthey PLC | 72,319 | | 3,996 |
Lloyds Banking Group PLC (a) | 5,005,899 | | 6,384 |
M&C Saatchi PLC | 887,505 | | 4,125 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Moneysupermarket.com Group PLC | 512,100 | | $ 1,574 |
Perform Group PLC (a) | 393,400 | | 1,431 |
Poundland Group PLC (a) | 74,176 | | 435 |
Prudential PLC | 100,209 | | 2,304 |
Reckitt Benckiser Group PLC | 39,300 | | 3,168 |
Rightmove PLC | 28,000 | | 1,139 |
Rio Tinto PLC | 94,332 | | 5,129 |
Rolls-Royce Group PLC | 164,274 | | 2,912 |
Royal Bank of Scotland Group PLC (a) | 120,080 | | 608 |
Royal Dutch Shell PLC: | | | |
Class A (United Kingdom) | 196,128 | | 7,754 |
Class B (United Kingdom) | 158,266 | | 6,720 |
SABMiller PLC | 155,100 | | 8,434 |
Standard Chartered PLC (United Kingdom) | 113,879 | | 2,464 |
Sthree PLC | 190,600 | | 1,305 |
Taylor Wimpey PLC | 1,004,100 | | 1,782 |
Travis Perkins PLC | 143,100 | | 4,119 |
Vodafone Group PLC | 885,709 | | 3,363 |
William Hill PLC | 893,066 | | 5,348 |
TOTAL UNITED KINGDOM | | 145,952 |
United States of America - 6.8% |
BlackRock, Inc. Class A | 7,500 | | 2,258 |
Boston Beer Co., Inc. Class A (a) | 4,700 | | 1,156 |
Deckers Outdoor Corp. (a)(d) | 25,000 | | 1,974 |
Dunkin' Brands Group, Inc. | 55,400 | | 2,521 |
eBay, Inc. (a) | 55,300 | | 2,866 |
Facebook, Inc. Class A (a) | 80,700 | | 4,824 |
Gilead Sciences, Inc. (a) | 10,200 | | 801 |
GNC Holdings, Inc. | 43,100 | | 1,940 |
Google, Inc.: | | | |
Class A (a) | 6,700 | | 3,584 |
Class C (a) | 6,700 | | 3,529 |
Lorillard, Inc. | 34,300 | | 2,038 |
MercadoLibre, Inc. (d) | 22,100 | | 2,061 |
Monsanto Co. | 26,700 | | 2,956 |
Nimble Storage, Inc. | 1,100 | | 27 |
priceline.com, Inc. (a) | 3,500 | | 4,052 |
Tiffany & Co., Inc. | 51,200 | | 4,479 |
TripAdvisor, Inc. (a) | 17,900 | | 1,445 |
Verizon Communications, Inc. CDI | 42,705 | | 1,996 |
Common Stocks - continued |
| Shares | | Value (000s) |
United States of America - continued |
Visa, Inc. Class A | 25,200 | | $ 5,106 |
Yahoo!, Inc. (a) | 56,500 | | 2,031 |
TOTAL UNITED STATES OF AMERICA | | 51,644 |
TOTAL COMMON STOCKS (Cost $615,373) | 739,542
|
Nonconvertible Preferred Stocks - 1.5% |
| | | |
Germany - 1.5% |
Sartorius AG (non-vtg.) | 16,700 | | 2,173 |
Volkswagen AG | 32,800 | | 8,833 |
TOTAL GERMANY | | 11,006 |
United Kingdom - 0.0% |
Rolls-Royce Group PLC (C Shares) | 22,012,716 | | 37 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $7,577) | 11,043
|
Money Market Funds - 4.5% |
| | | |
Fidelity Cash Central Fund, 0.11% (b) | 4,997,879 | | 4,998 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 29,206,335 | | 29,206 |
TOTAL MONEY MARKET FUNDS (Cost $34,204) | 34,204
|
TOTAL INVESTMENT PORTFOLIO - 103.5% (Cost $657,154) | 784,789 |
NET OTHER ASSETS (LIABILITIES) - (3.5)% | (26,555) |
NET ASSETS - 100% | $ 758,234 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $114,000 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 (Amounts in thousands) |
Fidelity Cash Central Fund | $ 7 |
Fidelity Securities Lending Cash Central Fund | 133 |
Total | $ 140 |
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, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description (Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 201,034 | $ 187,461 | $ 13,573 | $ - |
Consumer Staples | 86,277 | 56,956 | 29,321 | - |
Energy | 34,867 | 7,661 | 27,206 | - |
Financials | 137,014 | 80,010 | 57,004 | - |
Health Care | 73,250 | 51,719 | 21,531 | - |
Industrials | 61,862 | 56,781 | 5,081 | - |
Information Technology | 92,528 | 89,894 | 2,634 | - |
Materials | 46,114 | 18,414 | 27,700 | - |
Telecommunication Services | 17,639 | 14,276 | 3,363 | - |
Money Market Funds | 34,204 | 34,204 | - | - |
Total Investments in Securities: | $ 784,789 | $ 597,376 | $ 187,413 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total (000s) |
Level 1 to Level 2 | $ 15,211 |
Level 2 to Level 1 | $ 95,851 |
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, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $28,233) - See accompanying schedule: Unaffiliated issuers (cost $622,950) | $ 750,585 | |
Fidelity Central Funds (cost $34,204) | 34,204 | |
Total Investments (cost $657,154) | | $ 784,789 |
Cash | | 175 |
Foreign currency held at value (cost $515) | | 515 |
Receivable for investments sold | | 5,981 |
Receivable for fund shares sold | | 530 |
Dividends receivable | | 2,656 |
Distributions receivable from Fidelity Central Funds | | 49 |
Prepaid expenses | | 1 |
Other receivables | | 76 |
Total assets | | 794,772 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,434 | |
Payable for fund shares redeemed | 1,109 | |
Accrued management fee | 385 | |
Distribution and service plan fees payable | 168 | |
Other affiliated payables | 159 | |
Other payables and accrued expenses | 77 | |
Collateral on securities loaned, at value | 29,206 | |
Total liabilities | | 36,538 |
| | |
Net Assets | | $ 758,234 |
Net Assets consist of: | | |
Paid in capital | | $ 700,576 |
Undistributed net investment income | | 4,636 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (74,607) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 127,629 |
Net Assets | | $ 758,234 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($68,156 ÷ 3,142.6 shares) | | $ 21.69 |
| | |
Maximum offering price per share (100/94.25 of $21.69) | | $ 23.01 |
Class T: Net Asset Value and redemption price per share ($319,948 ÷ 14,375.6 shares) | | $ 22.26 |
| | |
Maximum offering price per share (100/96.50 of $22.26) | | $ 23.07 |
Class B: Net Asset Value and offering price per share ($2,537 ÷ 120.1 shares)A | | $ 21.12 |
| | |
Class C: Net Asset Value and offering price per share ($20,927 ÷ 982.2 shares)A | | $ 21.31 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($346,666 ÷ 15,664.8 shares) | | $ 22.13 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 9,794 |
Income from Fidelity Central Funds | | 140 |
Income before foreign taxes withheld | | 9,934 |
Less foreign taxes withheld | | (473) |
Total income | | 9,461 |
| | |
Expenses | | |
Management fee Basic fee | $ 2,649 | |
Performance adjustment | 23 | |
Transfer agent fees | 758 | |
Distribution and service plan fees | 1,035 | |
Accounting and security lending fees | 185 | |
Custodian fees and expenses | 76 | |
Independent trustees' compensation | 2 | |
Registration fees | 53 | |
Audit | 40 | |
Legal | 2 | |
Miscellaneous | 11 | |
Total expenses | | 4,834 |
Net investment income (loss) | | 4,627 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 38,174 | |
Foreign currency transactions | (39) | |
Total net realized gain (loss) | | 38,135 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (31,554) | |
Assets and liabilities in foreign currencies | 14 | |
Total change in net unrealized appreciation (depreciation) | | (31,540) |
Net gain (loss) | | 6,595 |
Net increase (decrease) in net assets resulting from operations | | $ 11,222 |
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, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 4,627 | $ 6,363 |
Net realized gain (loss) | 38,135 | 35,511 |
Change in net unrealized appreciation (depreciation) | (31,540) | 138,935 |
Net increase (decrease) in net assets resulting from operations | 11,222 | 180,809 |
Distributions to shareholders from net investment income | (6,228) | (8,840) |
Distributions to shareholders from net realized gain | (2,640) | (1,437) |
Total distributions | (8,868) | (10,277) |
Share transactions - net increase (decrease) | 27,458 | (49,806) |
Redemption fees | 16 | 12 |
Total increase (decrease) in net assets | 29,828 | 120,738 |
| | |
Net Assets | | |
Beginning of period | 728,406 | 607,668 |
End of period (including undistributed net investment income of $4,636 and undistributed net investment income of $6,237, respectively) | $ 758,234 | $ 728,406 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 21.61 | $ 16.76 | $ 16.13 | $ 17.77 | $ 15.68 | $ 13.56 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .13 | .17 | .23 | .16 | .17 | .24 |
Net realized and unrealized gain (loss) | .21 | 4.97 | .64 | (1.54) | 2.16 | 2.12 |
Total from investment operations | .34 | 5.14 | .87 | (1.38) | 2.33 | 2.36 |
Distributions from net investment income | (.18) | (.25) | (.24) | (.21) | (.21) | (.24) |
Distributions from net realized gain | (.08) | (.04) | - | (.05) | (.03) | - |
Total distributions | (.26) | (.29) | (.24) | (.26) | (.24) | (.24) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 21.69 | $ 21.61 | $ 16.76 | $ 16.13 | $ 17.77 | $ 15.68 |
Total ReturnB,C,D | 1.57% | 31.13% | 5.51% | (7.95)% | 14.99% | 17.97% |
Ratios to Average Net AssetsF,H | | | | | |
Expenses before reductions | 1.32%A | 1.37% | 1.33% | 1.34% | 1.36% | 1.36% |
Expenses net of fee waivers, if any | 1.32%A | 1.37% | 1.33% | 1.34% | 1.36% | 1.36% |
Expenses net of all reductions | 1.32%A | 1.36% | 1.32% | 1.32% | 1.33% | 1.33% |
Net investment income (loss) | 1.18%A | .91% | 1.43% | .90% | 1.04% | 1.79% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 68 | $ 69 | $ 60 | $ 60 | $ 70 | $ 72 |
Portfolio turnover rateG | 34%A | 37% | 36% | 44% | 53% | 83% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.16 | $ 17.16 | $ 16.50 | $ 18.18 | $ 16.03 | $ 13.84 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .11 | .14 | .20 | .13 | .14 | .22 |
Net realized and unrealized gain (loss) | .22 | 5.11 | .66 | (1.59) | 2.23 | 2.17 |
Total from investment operations | .33 | 5.25 | .86 | (1.46) | 2.37 | 2.39 |
Distributions from net investment income | (.15) | (.21) | (.20) | (.17) | (.19) | (.20) |
Distributions from net realized gain | (.08) | (.04) | - | (.05) | (.03) | - |
Total distributions | (.23) | (.25) | (.20) | (.22) | (.22) | (.20) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 22.26 | $ 22.16 | $ 17.16 | $ 16.50 | $ 18.18 | $ 16.03 |
Total ReturnB,C,D | 1.50% | 30.96% | 5.32% | (8.17)% | 14.88% | 17.70% |
Ratios to Average Net AssetsF,H | | | | | |
Expenses before reductions | 1.50%A | 1.53% | 1.51% | 1.52% | 1.53% | 1.57% |
Expenses net of fee waivers, if any | 1.50%A | 1.53% | 1.51% | 1.51% | 1.53% | 1.57% |
Expenses net of all reductions | 1.50%A | 1.52% | 1.50% | 1.49% | 1.50% | 1.54% |
Net investment income (loss) | 1.00%A | .74% | 1.25% | .73% | .86% | 1.58% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 320 | $ 329 | $ 271 | $ 305 | $ 371 | $ 367 |
Portfolio turnover rateG | 34%A | 37% | 36% | 44% | 53% | 83% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 21.02 | $ 16.25 | $ 15.58 | $ 17.18 | $ 15.16 | $ 13.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .04 | .03 | .10 | .03 | .04 | .13 |
Net realized and unrealized gain (loss) | .20 | 4.85 | .63 | (1.51) | 2.10 | 2.08 |
Total from investment operations | .24 | 4.88 | .73 | (1.48) | 2.14 | 2.21 |
Distributions from net investment income | (.06) | (.07) | (.06) | (.08) | (.09) | (.07) |
Distributions from net realized gain | (.08) | (.04) | - | (.05) | (.03) | - |
Total distributions | (.14) | (.11) | (.06) | (.12)J | (.12) | (.07) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 21.12 | $ 21.02 | $ 16.25 | $ 15.58 | $ 17.18 | $ 15.16 |
Total ReturnB,C,D | 1.14% | 30.21% | 4.72% | (8.67)% | 14.15% | 17.09% |
Ratios to Average Net AssetsF,H | | | | | |
Expenses before reductions | 2.11%A | 2.12% | 2.09% | 2.10% | 2.11% | 2.12% |
Expenses net of fee waivers, if any | 2.11%A | 2.12% | 2.09% | 2.09% | 2.11% | 2.12% |
Expenses net of all reductions | 2.11%A | 2.11% | 2.07% | 2.07% | 2.09% | 2.08% |
Net investment income (loss) | .39%A | .16% | .67% | .15% | .28% | 1.04% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 3 | $ 3 | $ 3 | $ 4 | $ 7 | $ 8 |
Portfolio turnover rateG | 34%A | 37% | 36% | 44% | 53% | 83% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. JTotal 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 21.21 | $ 16.43 | $ 15.78 | $ 17.39 | $ 15.36 | $ 13.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .04 | .03 | .11 | .03 | .05 | .14 |
Net realized and unrealized gain (loss) | .21 | 4.89 | .64 | (1.52) | 2.12 | 2.09 |
Total from investment operations | .25 | 4.92 | .75 | (1.49) | 2.17 | 2.23 |
Distributions from net investment income | (.07) | (.10) | (.10) | (.07) | (.11) | (.09) |
Distributions from net realized gain | (.08) | (.04) | - | (.05) | (.03) | - |
Total distributions | (.15) | (.14) | (.10) | (.12) | (.14) | (.09) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 21.31 | $ 21.21 | $ 16.43 | $ 15.78 | $ 17.39 | $ 15.36 |
Total ReturnB,C,D | 1.17% | 30.16% | 4.78% | (8.67)% | 14.17% | 17.06% |
Ratios to Average Net AssetsF,H | | | | | |
Expenses before reductions | 2.10%A | 2.12% | 2.09% | 2.09% | 2.10% | 2.11% |
Expenses net of fee waivers, if any | 2.10%A | 2.12% | 2.09% | 2.09% | 2.10% | 2.11% |
Expenses net of all reductions | 2.10%A | 2.10% | 2.07% | 2.07% | 2.08% | 2.08% |
Net investment income (loss) | .40%A | .16% | .67% | .15% | .29% | 1.05% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 21 | $ 21 | $ 16 | $ 19 | $ 22 | $ 23 |
Portfolio turnover rateG | 34%A | 37% | 36% | 44% | 53% | 83% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.07 | $ 17.11 | $ 16.45 | $ 18.10 | $ 15.95 | $ 13.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .17 | .24 | .29 | .23 | .22 | .29 |
Net realized and unrealized gain (loss) | .21 | 5.08 | .65 | (1.59) | 2.23 | 2.14 |
Total from investment operations | .38 | 5.32 | .94 | (1.36) | 2.45 | 2.43 |
Distributions from net investment income | (.24) | (.31) | (.28) | (.24) | (.27) | (.31) |
Distributions from net realized gain | (.08) | (.04) | - | (.05) | (.03) | - |
Total distributions | (.32) | (.36)I | (.28) | (.29) | (.30) | (.31) |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 22.13 | $ 22.07 | $ 17.11 | $ 16.45 | $ 18.10 | $ 15.95 |
Total ReturnB,C | 1.72% | 31.63% | 5.91% | (7.70)% | 15.49% | 18.32% |
Ratios to Average Net AssetsE,G | | | | | |
Expenses before reductions | .98%A | 1.02% | .99% | 1.00% | 1.01% | 1.06% |
Expenses net of fee waivers, if any | .98%A | 1.02% | .99% | .99% | 1.01% | 1.06% |
Expenses net of all reductions | .98%A | 1.01% | .97% | .97% | .98% | 1.02% |
Net investment income (loss) | 1.52%A | 1.26% | 1.77% | 1.25% | 1.39% | 2.10% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 347 | $ 307 | $ 257 | $ 349 | $ 678 | $ 727 |
Portfolio turnover rateF | 34%A | 37% | 36% | 44% | 53% | 83% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount represents less than $.01 per share. ITotal distributions of $.36 per share is comprised of distributions from net investment income of $.314 and distributions from net realized gain of $.041 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® 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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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 as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 162,909 |
Gross unrealized depreciation | (49,192) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 113,717 |
| |
Tax cost | $ 671,072 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (98,262) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $147,021 and $127,902, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to its benchmark index, the MSCI EAFE Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .71% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 89 | $ 4 |
Class T | .25% | .25% | 828 | 10 |
Class B | .75% | .25% | 14 | 11 |
Class C | .75% | .25% | 104 | 11 |
| | | $ 1,035 | $ 36 |
Semiannual Report
5. 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 shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 8 |
Class T | 2 |
Class B* | 1 |
Class C* | 1 |
| $ 12 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 96 | .27 |
Class T | 329 | .20 |
Class B | 4 | .31 |
Class C | 31 | .30 |
Institutional Class | 298 | .18 |
| $ 758 | |
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income
Semiannual Report
7. Security Lending - continued
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 $133, including two hundred eighty nine dollars.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ 576 | $ 874 |
Class T | 2,245 | 3,206 |
Class B | 8 | 13 |
Class C | 65 | 95 |
Institutional Class | 3,334 | 4,652 |
Total | $ 6,228 | $ 8,840 |
From net realized gain | | |
Class A | $ 256 | $ 144 |
Class T | 1,182 | 638 |
Class B | 11 | 7 |
Class C | 75 | 40 |
Institutional Class | 1,116 | 608 |
Total | $ 2,640 | $ 1,437 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 386 | 381 | $ 8,464 | $ 7,246 |
Reinvestment of distributions | 36 | 56 | 778 | 948 |
Shares redeemed | (455) | (864) | (9,937) | (16,342) |
Net increase (decrease) | (33) | (427) | $ (695) | $ (8,148) |
Class T | | | | |
Shares sold | 1,326 | 2,667 | $ 29,826 | $ 51,520 |
Reinvestment of distributions | 150 | 214 | 3,346 | 3,745 |
Shares redeemed | (1,934) | (3,829) | (43,462) | (73,469) |
Net increase (decrease) | (458) | (948) | $ (10,290) | $ (18,204) |
Class B | | | | |
Shares sold | 6 | 15 | $ 125 | $ 313 |
Reinvestment of distributions | 1 | 1 | 17 | 18 |
Shares redeemed | (27) | (62) | (572) | (1,123) |
Net increase (decrease) | (20) | (46) | $ (430) | $ (792) |
Class C | | | | |
Shares sold | 116 | 200 | $ 2,489 | $ 3,879 |
Reinvestment of distributions | 6 | 7 | 124 | 120 |
Shares redeemed | (119) | (208) | (2,537) | (3,808) |
Net increase (decrease) | 3 | (1) | $ 76 | $ 191 |
Institutional Class | | | | |
Shares sold | 2,100 | 958 | $ 46,894 | $ 18,221 |
Reinvestment of distributions | 198 | 298 | 4,371 | 5,176 |
Shares redeemed | (556) | (2,370) | (12,468) | (46,250) |
Net increase (decrease) | 1,742 | (1,114) | $ 38,797 | $ (22,853) |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers International II Fund was the owner of record of approximately 17% 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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
OS-USAN-0614
1.784903.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value Leaders
Fund - Institutional Class
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 1,075.70 | $ 6.43 |
HypotheticalA | | $ 1,000.00 | $ 1,018.60 | $ 6.26 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 1,074.90 | $ 7.72 |
HypotheticalA | | $ 1,000.00 | $ 1,017.36 | $ 7.50 |
Class B | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,072.10 | $ 10.28 |
HypotheticalA | | $ 1,000.00 | $ 1,014.88 | $ 9.99 |
Class C | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,072.20 | $ 10.28 |
HypotheticalA | | $ 1,000.00 | $ 1,014.88 | $ 9.99 |
Institutional Class | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,077.50 | $ 5.15 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Exxon Mobil Corp. | 4.9 | 3.3 |
General Electric Co. | 4.5 | 5.1 |
Pfizer, Inc. | 3.9 | 4.4 |
Merck & Co., Inc. | 3.7 | 3.3 |
JPMorgan Chase & Co. | 2.8 | 2.5 |
Citigroup, Inc. | 2.8 | 2.7 |
Johnson & Johnson | 2.7 | 0.0 |
AT&T, Inc. | 2.6 | 1.4 |
Anadarko Petroleum Corp. | 2.1 | 1.3 |
Procter & Gamble Co. | 2.1 | 1.9 |
| 32.1 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 25.5 | 26.3 |
Energy | 14.2 | 12.5 |
Information Technology | 13.6 | 15.2 |
Health Care | 13.3 | 11.0 |
Industrials | 6.8 | 6.3 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014* | As of October 31, 2013** |
| Stocks 93.9% | | | Stocks and Equity Futures 94.5% | |
| Short-Term Investments and Net Other Assets (Liabilities) 6.1% | | | Short-Term Investments and Net Other Assets (Liabilities) 5.5% | |
* Foreign investments | 3.4% | | ** Foreign investments | 0.9% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 5.2% |
Auto Components - 1.1% |
Johnson Controls, Inc. | 7,603 | | $ 343,199 |
Automobiles - 1.3% |
Ford Motor Co. | 10,373 | | 167,524 |
General Motors Co. | 6,700 | | 231,016 |
| | 398,540 |
Diversified Consumer Services - 0.3% |
DeVry, Inc. | 1,967 | | 88,574 |
Media - 1.2% |
DISH Network Corp. Class A (a) | 2,006 | | 114,061 |
Time Warner Cable, Inc. | 2,000 | | 282,920 |
| | 396,981 |
Specialty Retail - 1.3% |
Foot Locker, Inc. | 4,100 | | 190,773 |
Office Depot, Inc. (a) | 58,500 | | 239,265 |
| | 430,038 |
TOTAL CONSUMER DISCRETIONARY | | 1,657,332 |
CONSUMER STAPLES - 6.1% |
Beverages - 0.4% |
PepsiCo, Inc. | 1,700 | | 146,013 |
Food & Staples Retailing - 1.7% |
CVS Caremark Corp. | 2,090 | | 151,985 |
Wal-Mart Stores, Inc. | 4,742 | | 377,985 |
| | 529,970 |
Food Products - 1.9% |
Kraft Foods Group, Inc. | 5,833 | | 331,664 |
Mondelez International, Inc. | 7,702 | | 274,576 |
| | 606,240 |
Household Products - 2.1% |
Procter & Gamble Co. | 8,029 | | 662,794 |
TOTAL CONSUMER STAPLES | | 1,945,017 |
ENERGY - 14.2% |
Energy Equipment & Services - 2.3% |
Dresser-Rand Group, Inc. (a) | 2,500 | | 151,100 |
National Oilwell Varco, Inc. | 2,300 | | 180,619 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Energy Equipment & Services - continued |
Schlumberger Ltd. | 1,300 | | $ 132,015 |
Weatherford International Ltd. (a) | 13,050 | | 274,050 |
| | 737,784 |
Oil, Gas & Consumable Fuels - 11.9% |
Anadarko Petroleum Corp. | 6,800 | | 673,336 |
Apache Corp. | 6,768 | | 587,462 |
Chevron Corp. | 2,825 | | 354,594 |
Exxon Mobil Corp. | 15,401 | | 1,577,216 |
Occidental Petroleum Corp. | 6,437 | | 616,343 |
| | 3,808,951 |
TOTAL ENERGY | | 4,546,735 |
FINANCIALS - 25.5% |
Banks - 13.3% |
Bank of America Corp. | 29,455 | | 445,949 |
Citigroup, Inc. | 18,625 | | 892,324 |
Fifth Third Bancorp | 23,305 | | 480,316 |
JPMorgan Chase & Co. | 16,225 | | 908,276 |
KeyCorp | 32,981 | | 449,861 |
U.S. Bancorp | 6,871 | | 280,199 |
Wells Fargo & Co. | 12,426 | | 616,827 |
Zions Bancorporation | 6,154 | | 177,974 |
| | 4,251,726 |
Capital Markets - 5.3% |
Ares Capital Corp. | 12,830 | | 220,291 |
Bank of New York Mellon Corp. | 4,600 | | 155,802 |
Carlyle Group LP | 2,800 | | 89,824 |
E*TRADE Financial Corp. (a) | 16,590 | | 372,446 |
Goldman Sachs Group, Inc. | 1,583 | | 252,995 |
Raymond James Financial, Inc. | 6,341 | | 315,148 |
State Street Corp. | 4,732 | | 305,498 |
| | 1,712,004 |
Consumer Finance - 2.1% |
Capital One Financial Corp. | 6,700 | | 495,130 |
Springleaf Holdings, Inc. (d) | 7,500 | | 172,350 |
| | 667,480 |
Insurance - 3.7% |
AFLAC, Inc. | 3,600 | | 225,792 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Insurance - continued |
Allstate Corp. | 3,240 | | $ 184,518 |
American International Group, Inc. | 5,164 | | 274,363 |
Fidelity National Financial, Inc. Class A | 7,595 | | 244,407 |
MetLife, Inc. | 3,100 | | 162,285 |
The Chubb Corp. | 987 | | 90,883 |
| | 1,182,248 |
Real Estate Investment Trusts - 1.1% |
CBL & Associates Properties, Inc. | 11,200 | | 203,504 |
Senior Housing Properties Trust (SBI) | 6,700 | | 157,249 |
| | 360,753 |
TOTAL FINANCIALS | | 8,174,211 |
HEALTH CARE - 13.3% |
Health Care Equipment & Supplies - 0.8% |
Boston Scientific Corp. (a) | 19,300 | | 243,373 |
Health Care Providers & Services - 1.1% |
HCA Holdings, Inc. (a) | 2,500 | | 130,000 |
Humana, Inc. | 2,100 | | 230,475 |
| | 360,475 |
Pharmaceuticals - 11.4% |
Johnson & Johnson | 8,400 | | 850,836 |
Merck & Co., Inc. | 20,450 | | 1,197,552 |
Pfizer, Inc. | 39,778 | | 1,244,256 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 3,800 | | 185,668 |
Zoetis, Inc. Class A | 5,397 | | 163,313 |
| | 3,641,625 |
TOTAL HEALTH CARE | | 4,245,473 |
INDUSTRIALS - 6.8% |
Aerospace & Defense - 0.1% |
Textron, Inc. | 592 | | 24,213 |
Air Freight & Logistics - 1.2% |
FedEx Corp. | 2,700 | | 367,875 |
Industrial Conglomerates - 4.5% |
General Electric Co. | 53,849 | | 1,448,000 |
Machinery - 0.4% |
Caterpillar, Inc. | 1,335 | | 140,709 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Road & Rail - 0.6% |
Hertz Global Holdings, Inc. (a) | 6,700 | | $ 190,749 |
TOTAL INDUSTRIALS | | 2,171,546 |
INFORMATION TECHNOLOGY - 13.6% |
Communications Equipment - 2.4% |
Brocade Communications Systems, Inc. (a) | 13,400 | | 124,754 |
Cisco Systems, Inc. | 21,064 | | 486,789 |
Juniper Networks, Inc. (a) | 5,900 | | 145,671 |
| | 757,214 |
Internet Software & Services - 0.4% |
Yahoo!, Inc. (a) | 3,900 | | 140,205 |
IT Services - 1.3% |
EVERTEC, Inc. | 9,300 | | 218,922 |
Xerox Corp. | 16,801 | | 203,124 |
| | 422,046 |
Semiconductors & Semiconductor Equipment - 1.6% |
Broadcom Corp. Class A | 799 | | 24,617 |
Intel Corp. | 17,962 | | 479,406 |
| | 504,023 |
Software - 6.3% |
Activision Blizzard, Inc. | 27,426 | | 548,794 |
Comverse, Inc. (a) | 18,423 | | 459,470 |
Symantec Corp. | 18,948 | | 384,265 |
Verint Systems, Inc. (a) | 14,108 | | 617,507 |
| | 2,010,036 |
Technology Hardware, Storage & Peripherals - 1.6% |
Apple, Inc. | 481 | | 283,833 |
Hewlett-Packard Co. | 6,758 | | 223,419 |
| | 507,252 |
TOTAL INFORMATION TECHNOLOGY | | 4,340,776 |
MATERIALS - 3.8% |
Chemicals - 0.8% |
Axiall Corp. | 3,200 | | 149,120 |
The Dow Chemical Co. | 2,141 | | 106,836 |
| | 255,956 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - continued |
Containers & Packaging - 0.6% |
Crown Holdings, Inc. (a) | 4,075 | | $ 192,218 |
Metals & Mining - 2.4% |
Agnico Eagle Mines Ltd. (Canada) | 10,100 | | 298,287 |
Freeport-McMoRan Copper & Gold, Inc. | 14,049 | | 482,864 |
| | 781,151 |
TOTAL MATERIALS | | 1,229,325 |
TELECOMMUNICATION SERVICES - 4.9% |
Diversified Telecommunication Services - 3.3% |
AT&T, Inc. | 23,433 | | 836,558 |
Level 3 Communications, Inc. (a) | 5,600 | | 240,968 |
| | 1,077,526 |
Wireless Telecommunication Services - 1.6% |
Sprint Corp. (a) | 6,200 | | 52,700 |
T-Mobile U.S., Inc. (a) | 15,406 | | 451,242 |
| | 503,942 |
TOTAL TELECOMMUNICATION SERVICES | | 1,581,468 |
UTILITIES - 0.5% |
Electric Utilities - 0.5% |
Exelon Corp. | 4,600 | | 161,138 |
TOTAL COMMON STOCKS (Cost $27,672,553) | 30,053,021
|
U.S. Treasury Obligations - 0.1% |
| Principal Amount | | |
U.S. Treasury Bills, yield at date of purchase 0.02% 5/1/14 (Cost $30,000) | | $ 30,000 | | 30,000
|
Money Market Funds - 5.5% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.11% (b) | 1,606,462 | | $ 1,606,462 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 159,250 | | 159,250 |
TOTAL MONEY MARKET FUNDS (Cost $1,765,712) | 1,765,712
|
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $29,468,265) | | 31,848,733 |
NET OTHER ASSETS (LIABILITIES) - 0.5% | | 144,957 |
NET ASSETS - 100% | $ 31,993,690 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 961 |
Fidelity Securities Lending Cash Central Fund | 159 |
Total | $ 1,120 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,657,332 | $ 1,657,332 | $ - | $ - |
Consumer Staples | 1,945,017 | 1,945,017 | - | - |
Energy | 4,546,735 | 4,546,735 | - | - |
Financials | 8,174,211 | 8,174,211 | - | - |
Health Care | 4,245,473 | 4,245,473 | - | - |
Industrials | 2,171,546 | 2,171,546 | - | - |
Information Technology | 4,340,776 | 4,340,776 | - | - |
Materials | 1,229,325 | 1,229,325 | - | - |
Telecommunication Services | 1,581,468 | 1,581,468 | - | - |
Utilities | 161,138 | 161,138 | - | - |
U.S. Government and Government Agency Obligations | 30,000 | - | 30,000 | - |
Money Market Funds | 1,765,712 | 1,765,712 | - | - |
Total Investments in Securities: | $ 31,848,733 | $ 31,818,733 | $ 30,000 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $149,370) - See accompanying schedule: Unaffiliated issuers (cost $27,702,553) | $ 30,083,021 | |
Fidelity Central Funds (cost $1,765,712) | 1,765,712 | |
Total Investments (cost $29,468,265) | | $ 31,848,733 |
Receivable for investments sold | | 582,718 |
Receivable for fund shares sold | | 47,268 |
Dividends receivable | | 35,081 |
Distributions receivable from Fidelity Central Funds | | 154 |
Prepaid expenses | | 22 |
Receivable from investment adviser for expense reductions | | 1,670 |
Other receivables | | 134 |
Total assets | | 32,515,780 |
| | |
Liabilities | | |
Payable for investments purchased | $ 209,393 | |
Payable for fund shares redeemed | 97,493 | |
Accrued management fee | 9,769 | |
Distribution and service plan fees payable | 11,231 | |
Other affiliated payables | 7,872 | |
Other payables and accrued expenses | 27,082 | |
Collateral on securities loaned, at value | 159,250 | |
Total liabilities | | 522,090 |
| | |
Net Assets | | $ 31,993,690 |
Net Assets consist of: | | |
Paid in capital | | $ 58,990,568 |
Undistributed net investment income | | 40,233 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (29,417,579) |
Net unrealized appreciation (depreciation) on investments | | 2,380,468 |
Net Assets | | $ 31,993,690 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($16,662,530 ÷ 1,128,097 shares) | | $ 14.77 |
| | |
Maximum offering price per share (100/94.25 of $14.77) | | $ 15.67 |
Class T: Net Asset Value and redemption price per share ($7,792,785 ÷ 527,332 shares) | | $ 14.78 |
| | |
Maximum offering price per share (100/96.50 of $14.78) | | $ 15.32 |
Class B: Net Asset Value and offering price per share ($520,300 ÷ 35,685 shares)A | | $ 14.58 |
| | |
Class C: Net Asset Value and offering price per share ($4,839,094 ÷ 335,864 shares)A | | $ 14.41 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($2,178,981 ÷ 146,404 shares) | | $ 14.88 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 313,000 |
Interest | | 4 |
Income from Fidelity Central Funds | | 1,120 |
Total income | | 314,124 |
| | |
Expenses | | |
Management fee Basic fee | $ 86,222 | |
Performance adjustment | (30,068) | |
Transfer agent fees | 41,118 | |
Distribution and service plan fees | 65,814 | |
Accounting and security lending fees | 6,108 | |
Custodian fees and expenses | 6,691 | |
Independent trustees' compensation | 60 | |
Registration fees | 26,669 | |
Audit | 27,733 | |
Legal | 101 | |
Miscellaneous | 406 | |
Total expenses before reductions | 230,854 | |
Expense reductions | (8,657) | 222,197 |
Net investment income (loss) | | 91,927 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 2,138,719 | |
Foreign currency transactions | 69 | |
Futures contracts | (21,003) | |
Total net realized gain (loss) | | 2,117,785 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (35,568) | |
Assets and liabilities in foreign currencies | (1) | |
Futures contracts | (12,341) | |
Total change in net unrealized appreciation (depreciation) | | (47,910) |
Net gain (loss) | | 2,069,875 |
Net increase (decrease) in net assets resulting from operations | | $ 2,161,802 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 91,927 | $ 176,674 |
Net realized gain (loss) | 2,117,785 | 3,425,945 |
Change in net unrealized appreciation (depreciation) | (47,910) | 3,254,893 |
Net increase (decrease) in net assets resulting from operations | 2,161,802 | 6,857,512 |
Distributions to shareholders from net investment income | - | (419,258) |
Share transactions - net increase (decrease) | 1,097,950 | (3,943,841) |
Total increase (decrease) in net assets | 3,259,752 | 2,494,413 |
| | |
Net Assets | | |
Beginning of period | 28,733,938 | 26,239,525 |
End of period (including undistributed net investment income of $40,233 and distributions in excess of net investment income of $51,694, respectively) | $ 31,993,690 | $ 28,733,938 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.73 | $ 10.82 | $ 9.96 | $ 10.12 | $ 9.30 | $ 8.63 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .10 | .13 | .10 | .07 H | .09 |
Net realized and unrealized gain (loss) | .99 | 3.01 | .85 | (.14) | .85 | .75 |
Total from investment operations | 1.04 | 3.11 | .98 | (.04) | .92 | .84 |
Distributions from net investment income | - | (.20) | (.12) | (.11) | (.09) | (.17) |
Distributions from net realized gain | - | - | - J | (.01) | (.01) | - |
Total distributions | - | (.20) | (.12) | (.12) | (.10) | (.17) |
Net asset value, end of period | $ 14.77 | $ 13.73 | $ 10.82 | $ 9.96 | $ 10.12 | $ 9.30 |
Total Return B,C,D | 7.57% | 29.24% | 10.00% | (.40)% | 9.91% | 10.13% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.29% A | 1.33% | 1.28% | 1.24% | 1.22% | 1.25% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.25% | 1.24% | 1.22% | 1.25% |
Expenses net of all reductions | 1.25% A | 1.23% | 1.24% | 1.23% | 1.21% | 1.25% |
Net investment income (loss) | .76% A | .82% | 1.26% | .91% | .75% H | 1.10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 16,663 | $ 15,339 | $ 14,705 | $ 15,484 | $ 25,431 | $ 28,585 |
Portfolio turnover rate G | 121% A | 87% | 94% | 161% | 51% | 56% |
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 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.75 | $ 10.82 | $ 9.96 | $ 10.08 | $ 9.27 | $ 8.58 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .04 | .07 | .10 | .07 | .05 H | .07 |
Net realized and unrealized gain (loss) | .99 | 3.02 | .85 | (.13) | .84 | .75 |
Total from investment operations | 1.03 | 3.09 | .95 | (.06) | .89 | .82 |
Distributions from net investment income | - | (.16) | (.09) | (.05) | (.07) | (.13) |
Distributions from net realized gain | - | - | - J | (.01) | (.01) | - |
Total distributions | - | (.16) | (.09) | (.06) | (.08) | (.13) |
Net asset value, end of period | $ 14.78 | $ 13.75 | $ 10.82 | $ 9.96 | $ 10.08 | $ 9.27 |
Total Return B,C,D | 7.49% | 28.97% | 9.68% | (.64)% | 9.62% | 9.90% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.58% A | 1.60% | 1.55% | 1.49% | 1.45% | 1.50% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.49% | 1.45% | 1.50% |
Expenses net of all reductions | 1.50% A | 1.48% | 1.49% | 1.48% | 1.45% | 1.49% |
Net investment income (loss) | .51% A | .57% | 1.01% | .67% | .52% H | .85% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,793 | $ 6,569 | $ 6,145 | $ 8,254 | $ 12,735 | $ 20,652 |
Portfolio turnover rate G | 121% A | 87% | 94% | 161% | 51% | 56% |
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 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 B
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.60 | $ 10.70 | $ 9.84 | $ 9.99 | $ 9.18 | $ 8.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - J | .01 | .05 | .02 | - H, J | .03 |
Net realized and unrealized gain (loss) | .98 | 2.99 | .85 | (.13) | .84 | .74 |
Total from investment operations | .98 | 3.00 | .90 | (.11) | .84 | .77 |
Distributions from net investment income | - | (.10) | (.03) | (.03) | (.02) | (.06) |
Distributions from net realized gain | - | - | - J | (.01) | (.01) | - |
Total distributions | - | (.10) | (.04) K | (.04) | (.03) | (.06) |
Net asset value, end of period | $ 14.58 | $ 13.60 | $ 10.70 | $ 9.84 | $ 9.99 | $ 9.18 |
Total Return B,C,D | 7.21% | 28.31% | 9.14% | (1.14)% | 9.11% | 9.19% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.09% A | 2.10% | 2.04% | 1.99% | 1.97% | 2.00% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 1.99% | 1.97% | 2.00% |
Expenses net of all reductions | 2.00% A | 1.98% | 1.99% | 1.98% | 1.97% | 2.00% |
Net investment income (loss) | .01% A | .07% | .51% | .16% | (.01)% H | .35% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 520 | $ 719 | $ 895 | $ 1,110 | $ 1,605 | $ 1,989 |
Portfolio turnover rate G | 121% A | 87% | 94% | 161% | 51% | 56% |
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 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 $.04 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.44 | $ 10.59 | $ 9.75 | $ 9.92 | $ 9.11 | $ 8.44 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - K | .01 | .05 | .02 | - I,K | .03 |
Net realized and unrealized gain (loss) | .97 | 2.95 | .84 | (.13) | .83 | .73 |
Total from investment operations | .97 | 2.96 | .89 | (.11) | .83 | .76 |
Distributions from net investment income | - | (.11) | (.05) | (.05) | (.02) | (.09) |
Distributions from net realized gain | - | - | - K | (.01) | (.01) | - |
Total distributions | - | (.11) | (.05) | (.06) | (.02) L | (.09) |
Net asset value, end of period | $ 14.41 | $ 13.44 | $ 10.59 | $ 9.75 | $ 9.92 | $ 9.11 |
Total Return B,C,D | 7.22% | 28.27% | 9.21% | (1.18)% | 9.12% | 9.28% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.08% A | 2.08% | 2.04% | 2.00% | 1.97% | 2.01% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 1.97% | 2.00% |
Expenses net of all reductions | 2.00% A | 1.97% | 1.99% | 1.98% | 1.97% | 2.00% |
Net investment income (loss) | .00% A, H | .07% | .51% | .16% | .00% H,I | .35% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,839 | $ 4,340 | $ 3,299 | $ 3,775 | $ 4,139 | $ 4,088 |
Portfolio turnover rate G | 121% A | 87% | 94% | 161% | 51% | 56% |
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 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 $.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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.81 | $ 10.89 | $ 10.04 | $ 10.19 | $ 9.35 | $ 8.70 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .07 | .14 | .18 | .14 | .10 G | .11 |
Net realized and unrealized gain (loss) | 1.00 | 3.02 | .83 | (.15) | .86 | .74 |
Total from investment operations | 1.07 | 3.16 | 1.01 | (.01) | .96 | .85 |
Distributions from net investment income | - | (.24) | (.16) | (.13) | (.11) | (.20) |
Distributions from net realized gain | - | - | - I | (.01) | (.01) | - |
Total distributions | - | (.24) | (.16) | (.14) | (.12) | (.20) |
Net asset value, end of period | $ 14.88 | $ 13.81 | $ 10.89 | $ 10.04 | $ 10.19 | $ 9.35 |
Total Return B,C | 7.75% | 29.65% | 10.30% | (.11)% | 10.28% | 10.26% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.00% A | .94% | .83% | .89% | .98% | 1.00% |
Expenses net of fee waivers, if any | 1.00% A | .94% | .83% | .89% | .98% | 1.00% |
Expenses net of all reductions | 1.00% A | .92% | .82% | .88% | .97% | 1.00% |
Net investment income (loss) | 1.01% A | 1.13% | 1.68% | 1.27% | .99% G | 1.35% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,179 | $ 1,767 | $ 1,195 | $ 523 | $ 841 | $ 2,341 |
Portfolio turnover rate F | 121% A | 87% | 94% | 161% | 51% | 56% |
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 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, 2014 (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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 3,247,400 |
Gross unrealized depreciation | (1,421,346) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,826,054 |
| |
Tax cost | $ 30,022,679 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2016 | $ (16,000,671) |
2017 | (14,819,668) |
2019 | (169,201) |
Total with expiration | $ (30,989,540) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $(21,003) and a change in net unrealized appreciation (depreciation) of $(12,341) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $19,162,261 and $17,832,585, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
Class of the Fund as compared to its benchmark index, the Russell 1000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .36% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 20,327 | $ - |
Class T | .25% | .25% | 18,818 | 415 |
Class B | .75% | .25% | 3,049 | 2,307 |
Class C | .75% | .25% | 23,620 | 3,644 |
| | | $ 65,814 | $ 6,366 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 1,375 |
Class T | 1,221 |
Class B* | 113 |
Class C* | 212 |
| $ 2,921 |
* 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
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 20,002 | .25 |
Class T | 11,054 | .29 |
Class B | 923 | .30 |
Class C | 6,901 | .29 |
Institutional Class | 2,238 | .20 |
| $ 41,118 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,188 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $29 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $159. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement |
Class A | 1.25% | $ 3,125 |
Class T | 1.50% | 3,289 |
Class B | 2.00% | 300 |
Class C | 2.00% | 1,939 |
| | $ 8,653 |
Semiannual Report
9. Expense Reductions - continued
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 $4.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ - | $ 265,618 |
Class T | - | 87,579 |
Class B | - | 8,055 |
Class C | - | 34,963 |
Institutional Class | - | 23,043 |
Total | $ - | $ 419,258 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 85,470 | 203,654 | $ 1,225,968 | $ 2,521,952 |
Reinvestment of distributions | - | 23,948 | - | 256,986 |
Shares redeemed | (74,917) | (469,651) | (1,076,201) | (5,674,710) |
Net increase (decrease) | 10,553 | (242,049) | $ 149,767 | $ (2,895,772) |
Class T | | | | |
Shares sold | 99,770 | 51,753 | $ 1,426,069 | $ 642,034 |
Reinvestment of distributions | - | 7,985 | - | 86,093 |
Shares redeemed | (50,199) | (149,714) | (722,448) | (1,818,182) |
Net increase (decrease) | 49,571 | (89,976) | $ 703,621 | $ (1,090,055) |
Class B | | | | |
Shares sold | - | 1,256 | $ - | $ 15,666 |
Reinvestment of distributions | - | 676 | - | 7,246 |
Shares redeemed | (17,197) | (32,653) | (244,526) | (386,596) |
Net increase (decrease) | (17,197) | (30,721) | $ (244,526) | $ (363,684) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class C | | | | |
Shares sold | 42,058 | 81,393 | $ 590,846 | $ 983,333 |
Reinvestment of distributions | - | 3,063 | - | 32,411 |
Shares redeemed | (29,122) | (73,114) | (410,692) | (871,726) |
Net increase (decrease) | 12,936 | 11,342 | $ 180,154 | $ 144,018 |
Institutional Class | | | | |
Shares sold | 108,931 | 46,209 | $ 1,604,875 | $ 589,474 |
Reinvestment of distributions | - | 2,131 | - | 22,951 |
Shares redeemed | (90,484) | (30,086) | (1,295,941) | (350,773) |
Net increase (decrease) | 18,447 | 18,254 | $ 308,934 | $ 261,652 |
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
AVLFI-USAN-0614
1.800658.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value Leaders
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2014
(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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning Account Value November 1, 2013 | Ending Account Value April 30, 2014 | Expenses Paid During Period* November 1, 2013 to April 30, 2014 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 1,075.70 | $ 6.43 |
HypotheticalA | | $ 1,000.00 | $ 1,018.60 | $ 6.26 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 1,074.90 | $ 7.72 |
HypotheticalA | | $ 1,000.00 | $ 1,017.36 | $ 7.50 |
Class B | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,072.10 | $ 10.28 |
HypotheticalA | | $ 1,000.00 | $ 1,014.88 | $ 9.99 |
Class C | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,072.20 | $ 10.28 |
HypotheticalA | | $ 1,000.00 | $ 1,014.88 | $ 9.99 |
Institutional Class | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,077.50 | $ 5.15 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Exxon Mobil Corp. | 4.9 | 3.3 |
General Electric Co. | 4.5 | 5.1 |
Pfizer, Inc. | 3.9 | 4.4 |
Merck & Co., Inc. | 3.7 | 3.3 |
JPMorgan Chase & Co. | 2.8 | 2.5 |
Citigroup, Inc. | 2.8 | 2.7 |
Johnson & Johnson | 2.7 | 0.0 |
AT&T, Inc. | 2.6 | 1.4 |
Anadarko Petroleum Corp. | 2.1 | 1.3 |
Procter & Gamble Co. | 2.1 | 1.9 |
| 32.1 | |
Top Five Market Sectors as of April 30, 2014 |
| % of fund's net assets | % of fund's net assets 6 months ago |
Financials | 25.5 | 26.3 |
Energy | 14.2 | 12.5 |
Information Technology | 13.6 | 15.2 |
Health Care | 13.3 | 11.0 |
Industrials | 6.8 | 6.3 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2014* | As of October 31, 2013** |
| Stocks 93.9% | | | Stocks and Equity Futures 94.5% | |
| Short-Term Investments and Net Other Assets (Liabilities) 6.1% | | | Short-Term Investments and Net Other Assets (Liabilities) 5.5% | |
* Foreign investments | 3.4% | | ** Foreign investments | 0.9% | |
Semiannual Report
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 5.2% |
Auto Components - 1.1% |
Johnson Controls, Inc. | 7,603 | | $ 343,199 |
Automobiles - 1.3% |
Ford Motor Co. | 10,373 | | 167,524 |
General Motors Co. | 6,700 | | 231,016 |
| | 398,540 |
Diversified Consumer Services - 0.3% |
DeVry, Inc. | 1,967 | | 88,574 |
Media - 1.2% |
DISH Network Corp. Class A (a) | 2,006 | | 114,061 |
Time Warner Cable, Inc. | 2,000 | | 282,920 |
| | 396,981 |
Specialty Retail - 1.3% |
Foot Locker, Inc. | 4,100 | | 190,773 |
Office Depot, Inc. (a) | 58,500 | | 239,265 |
| | 430,038 |
TOTAL CONSUMER DISCRETIONARY | | 1,657,332 |
CONSUMER STAPLES - 6.1% |
Beverages - 0.4% |
PepsiCo, Inc. | 1,700 | | 146,013 |
Food & Staples Retailing - 1.7% |
CVS Caremark Corp. | 2,090 | | 151,985 |
Wal-Mart Stores, Inc. | 4,742 | | 377,985 |
| | 529,970 |
Food Products - 1.9% |
Kraft Foods Group, Inc. | 5,833 | | 331,664 |
Mondelez International, Inc. | 7,702 | | 274,576 |
| | 606,240 |
Household Products - 2.1% |
Procter & Gamble Co. | 8,029 | | 662,794 |
TOTAL CONSUMER STAPLES | | 1,945,017 |
ENERGY - 14.2% |
Energy Equipment & Services - 2.3% |
Dresser-Rand Group, Inc. (a) | 2,500 | | 151,100 |
National Oilwell Varco, Inc. | 2,300 | | 180,619 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Energy Equipment & Services - continued |
Schlumberger Ltd. | 1,300 | | $ 132,015 |
Weatherford International Ltd. (a) | 13,050 | | 274,050 |
| | 737,784 |
Oil, Gas & Consumable Fuels - 11.9% |
Anadarko Petroleum Corp. | 6,800 | | 673,336 |
Apache Corp. | 6,768 | | 587,462 |
Chevron Corp. | 2,825 | | 354,594 |
Exxon Mobil Corp. | 15,401 | | 1,577,216 |
Occidental Petroleum Corp. | 6,437 | | 616,343 |
| | 3,808,951 |
TOTAL ENERGY | | 4,546,735 |
FINANCIALS - 25.5% |
Banks - 13.3% |
Bank of America Corp. | 29,455 | | 445,949 |
Citigroup, Inc. | 18,625 | | 892,324 |
Fifth Third Bancorp | 23,305 | | 480,316 |
JPMorgan Chase & Co. | 16,225 | | 908,276 |
KeyCorp | 32,981 | | 449,861 |
U.S. Bancorp | 6,871 | | 280,199 |
Wells Fargo & Co. | 12,426 | | 616,827 |
Zions Bancorporation | 6,154 | | 177,974 |
| | 4,251,726 |
Capital Markets - 5.3% |
Ares Capital Corp. | 12,830 | | 220,291 |
Bank of New York Mellon Corp. | 4,600 | | 155,802 |
Carlyle Group LP | 2,800 | | 89,824 |
E*TRADE Financial Corp. (a) | 16,590 | | 372,446 |
Goldman Sachs Group, Inc. | 1,583 | | 252,995 |
Raymond James Financial, Inc. | 6,341 | | 315,148 |
State Street Corp. | 4,732 | | 305,498 |
| | 1,712,004 |
Consumer Finance - 2.1% |
Capital One Financial Corp. | 6,700 | | 495,130 |
Springleaf Holdings, Inc. (d) | 7,500 | | 172,350 |
| | 667,480 |
Insurance - 3.7% |
AFLAC, Inc. | 3,600 | | 225,792 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Insurance - continued |
Allstate Corp. | 3,240 | | $ 184,518 |
American International Group, Inc. | 5,164 | | 274,363 |
Fidelity National Financial, Inc. Class A | 7,595 | | 244,407 |
MetLife, Inc. | 3,100 | | 162,285 |
The Chubb Corp. | 987 | | 90,883 |
| | 1,182,248 |
Real Estate Investment Trusts - 1.1% |
CBL & Associates Properties, Inc. | 11,200 | | 203,504 |
Senior Housing Properties Trust (SBI) | 6,700 | | 157,249 |
| | 360,753 |
TOTAL FINANCIALS | | 8,174,211 |
HEALTH CARE - 13.3% |
Health Care Equipment & Supplies - 0.8% |
Boston Scientific Corp. (a) | 19,300 | | 243,373 |
Health Care Providers & Services - 1.1% |
HCA Holdings, Inc. (a) | 2,500 | | 130,000 |
Humana, Inc. | 2,100 | | 230,475 |
| | 360,475 |
Pharmaceuticals - 11.4% |
Johnson & Johnson | 8,400 | | 850,836 |
Merck & Co., Inc. | 20,450 | | 1,197,552 |
Pfizer, Inc. | 39,778 | | 1,244,256 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 3,800 | | 185,668 |
Zoetis, Inc. Class A | 5,397 | | 163,313 |
| | 3,641,625 |
TOTAL HEALTH CARE | | 4,245,473 |
INDUSTRIALS - 6.8% |
Aerospace & Defense - 0.1% |
Textron, Inc. | 592 | | 24,213 |
Air Freight & Logistics - 1.2% |
FedEx Corp. | 2,700 | | 367,875 |
Industrial Conglomerates - 4.5% |
General Electric Co. | 53,849 | | 1,448,000 |
Machinery - 0.4% |
Caterpillar, Inc. | 1,335 | | 140,709 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Road & Rail - 0.6% |
Hertz Global Holdings, Inc. (a) | 6,700 | | $ 190,749 |
TOTAL INDUSTRIALS | | 2,171,546 |
INFORMATION TECHNOLOGY - 13.6% |
Communications Equipment - 2.4% |
Brocade Communications Systems, Inc. (a) | 13,400 | | 124,754 |
Cisco Systems, Inc. | 21,064 | | 486,789 |
Juniper Networks, Inc. (a) | 5,900 | | 145,671 |
| | 757,214 |
Internet Software & Services - 0.4% |
Yahoo!, Inc. (a) | 3,900 | | 140,205 |
IT Services - 1.3% |
EVERTEC, Inc. | 9,300 | | 218,922 |
Xerox Corp. | 16,801 | | 203,124 |
| | 422,046 |
Semiconductors & Semiconductor Equipment - 1.6% |
Broadcom Corp. Class A | 799 | | 24,617 |
Intel Corp. | 17,962 | | 479,406 |
| | 504,023 |
Software - 6.3% |
Activision Blizzard, Inc. | 27,426 | | 548,794 |
Comverse, Inc. (a) | 18,423 | | 459,470 |
Symantec Corp. | 18,948 | | 384,265 |
Verint Systems, Inc. (a) | 14,108 | | 617,507 |
| | 2,010,036 |
Technology Hardware, Storage & Peripherals - 1.6% |
Apple, Inc. | 481 | | 283,833 |
Hewlett-Packard Co. | 6,758 | | 223,419 |
| | 507,252 |
TOTAL INFORMATION TECHNOLOGY | | 4,340,776 |
MATERIALS - 3.8% |
Chemicals - 0.8% |
Axiall Corp. | 3,200 | | 149,120 |
The Dow Chemical Co. | 2,141 | | 106,836 |
| | 255,956 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - continued |
Containers & Packaging - 0.6% |
Crown Holdings, Inc. (a) | 4,075 | | $ 192,218 |
Metals & Mining - 2.4% |
Agnico Eagle Mines Ltd. (Canada) | 10,100 | | 298,287 |
Freeport-McMoRan Copper & Gold, Inc. | 14,049 | | 482,864 |
| | 781,151 |
TOTAL MATERIALS | | 1,229,325 |
TELECOMMUNICATION SERVICES - 4.9% |
Diversified Telecommunication Services - 3.3% |
AT&T, Inc. | 23,433 | | 836,558 |
Level 3 Communications, Inc. (a) | 5,600 | | 240,968 |
| | 1,077,526 |
Wireless Telecommunication Services - 1.6% |
Sprint Corp. (a) | 6,200 | | 52,700 |
T-Mobile U.S., Inc. (a) | 15,406 | | 451,242 |
| | 503,942 |
TOTAL TELECOMMUNICATION SERVICES | | 1,581,468 |
UTILITIES - 0.5% |
Electric Utilities - 0.5% |
Exelon Corp. | 4,600 | | 161,138 |
TOTAL COMMON STOCKS (Cost $27,672,553) | 30,053,021
|
U.S. Treasury Obligations - 0.1% |
| Principal Amount | | |
U.S. Treasury Bills, yield at date of purchase 0.02% 5/1/14 (Cost $30,000) | | $ 30,000 | | 30,000
|
Money Market Funds - 5.5% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.11% (b) | 1,606,462 | | $ 1,606,462 |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 159,250 | | 159,250 |
TOTAL MONEY MARKET FUNDS (Cost $1,765,712) | 1,765,712
|
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $29,468,265) | | 31,848,733 |
NET OTHER ASSETS (LIABILITIES) - 0.5% | | 144,957 |
NET ASSETS - 100% | $ 31,993,690 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 961 |
Fidelity Securities Lending Cash Central Fund | 159 |
Total | $ 1,120 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,657,332 | $ 1,657,332 | $ - | $ - |
Consumer Staples | 1,945,017 | 1,945,017 | - | - |
Energy | 4,546,735 | 4,546,735 | - | - |
Financials | 8,174,211 | 8,174,211 | - | - |
Health Care | 4,245,473 | 4,245,473 | - | - |
Industrials | 2,171,546 | 2,171,546 | - | - |
Information Technology | 4,340,776 | 4,340,776 | - | - |
Materials | 1,229,325 | 1,229,325 | - | - |
Telecommunication Services | 1,581,468 | 1,581,468 | - | - |
Utilities | 161,138 | 161,138 | - | - |
U.S. Government and Government Agency Obligations | 30,000 | - | 30,000 | - |
Money Market Funds | 1,765,712 | 1,765,712 | - | - |
Total Investments in Securities: | $ 31,848,733 | $ 31,818,733 | $ 30,000 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $149,370) - See accompanying schedule: Unaffiliated issuers (cost $27,702,553) | $ 30,083,021 | |
Fidelity Central Funds (cost $1,765,712) | 1,765,712 | |
Total Investments (cost $29,468,265) | | $ 31,848,733 |
Receivable for investments sold | | 582,718 |
Receivable for fund shares sold | | 47,268 |
Dividends receivable | | 35,081 |
Distributions receivable from Fidelity Central Funds | | 154 |
Prepaid expenses | | 22 |
Receivable from investment adviser for expense reductions | | 1,670 |
Other receivables | | 134 |
Total assets | | 32,515,780 |
| | |
Liabilities | | |
Payable for investments purchased | $ 209,393 | |
Payable for fund shares redeemed | 97,493 | |
Accrued management fee | 9,769 | |
Distribution and service plan fees payable | 11,231 | |
Other affiliated payables | 7,872 | |
Other payables and accrued expenses | 27,082 | |
Collateral on securities loaned, at value | 159,250 | |
Total liabilities | | 522,090 |
| | |
Net Assets | | $ 31,993,690 |
Net Assets consist of: | | |
Paid in capital | | $ 58,990,568 |
Undistributed net investment income | | 40,233 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (29,417,579) |
Net unrealized appreciation (depreciation) on investments | | 2,380,468 |
Net Assets | | $ 31,993,690 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($16,662,530 ÷ 1,128,097 shares) | | $ 14.77 |
| | |
Maximum offering price per share (100/94.25 of $14.77) | | $ 15.67 |
Class T: Net Asset Value and redemption price per share ($7,792,785 ÷ 527,332 shares) | | $ 14.78 |
| | |
Maximum offering price per share (100/96.50 of $14.78) | | $ 15.32 |
Class B: Net Asset Value and offering price per share ($520,300 ÷ 35,685 shares)A | | $ 14.58 |
| | |
Class C: Net Asset Value and offering price per share ($4,839,094 ÷ 335,864 shares)A | | $ 14.41 |
| | |
Institutional Class: Net Asset Value, offering price and redemption price per share ($2,178,981 ÷ 146,404 shares) | | $ 14.88 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2014 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 313,000 |
Interest | | 4 |
Income from Fidelity Central Funds | | 1,120 |
Total income | | 314,124 |
| | |
Expenses | | |
Management fee Basic fee | $ 86,222 | |
Performance adjustment | (30,068) | |
Transfer agent fees | 41,118 | |
Distribution and service plan fees | 65,814 | |
Accounting and security lending fees | 6,108 | |
Custodian fees and expenses | 6,691 | |
Independent trustees' compensation | 60 | |
Registration fees | 26,669 | |
Audit | 27,733 | |
Legal | 101 | |
Miscellaneous | 406 | |
Total expenses before reductions | 230,854 | |
Expense reductions | (8,657) | 222,197 |
Net investment income (loss) | | 91,927 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 2,138,719 | |
Foreign currency transactions | 69 | |
Futures contracts | (21,003) | |
Total net realized gain (loss) | | 2,117,785 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (35,568) | |
Assets and liabilities in foreign currencies | (1) | |
Futures contracts | (12,341) | |
Total change in net unrealized appreciation (depreciation) | | (47,910) |
Net gain (loss) | | 2,069,875 |
Net increase (decrease) in net assets resulting from operations | | $ 2,161,802 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 (Unaudited) | Year ended October 31, 2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 91,927 | $ 176,674 |
Net realized gain (loss) | 2,117,785 | 3,425,945 |
Change in net unrealized appreciation (depreciation) | (47,910) | 3,254,893 |
Net increase (decrease) in net assets resulting from operations | 2,161,802 | 6,857,512 |
Distributions to shareholders from net investment income | - | (419,258) |
Share transactions - net increase (decrease) | 1,097,950 | (3,943,841) |
Total increase (decrease) in net assets | 3,259,752 | 2,494,413 |
| | |
Net Assets | | |
Beginning of period | 28,733,938 | 26,239,525 |
End of period (including undistributed net investment income of $40,233 and distributions in excess of net investment income of $51,694, respectively) | $ 31,993,690 | $ 28,733,938 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.73 | $ 10.82 | $ 9.96 | $ 10.12 | $ 9.30 | $ 8.63 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .10 | .13 | .10 | .07 H | .09 |
Net realized and unrealized gain (loss) | .99 | 3.01 | .85 | (.14) | .85 | .75 |
Total from investment operations | 1.04 | 3.11 | .98 | (.04) | .92 | .84 |
Distributions from net investment income | - | (.20) | (.12) | (.11) | (.09) | (.17) |
Distributions from net realized gain | - | - | - J | (.01) | (.01) | - |
Total distributions | - | (.20) | (.12) | (.12) | (.10) | (.17) |
Net asset value, end of period | $ 14.77 | $ 13.73 | $ 10.82 | $ 9.96 | $ 10.12 | $ 9.30 |
Total Return B,C,D | 7.57% | 29.24% | 10.00% | (.40)% | 9.91% | 10.13% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.29% A | 1.33% | 1.28% | 1.24% | 1.22% | 1.25% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.25% | 1.24% | 1.22% | 1.25% |
Expenses net of all reductions | 1.25% A | 1.23% | 1.24% | 1.23% | 1.21% | 1.25% |
Net investment income (loss) | .76% A | .82% | 1.26% | .91% | .75% H | 1.10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 16,663 | $ 15,339 | $ 14,705 | $ 15,484 | $ 25,431 | $ 28,585 |
Portfolio turnover rate G | 121% A | 87% | 94% | 161% | 51% | 56% |
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 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.75 | $ 10.82 | $ 9.96 | $ 10.08 | $ 9.27 | $ 8.58 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .04 | .07 | .10 | .07 | .05 H | .07 |
Net realized and unrealized gain (loss) | .99 | 3.02 | .85 | (.13) | .84 | .75 |
Total from investment operations | 1.03 | 3.09 | .95 | (.06) | .89 | .82 |
Distributions from net investment income | - | (.16) | (.09) | (.05) | (.07) | (.13) |
Distributions from net realized gain | - | - | - J | (.01) | (.01) | - |
Total distributions | - | (.16) | (.09) | (.06) | (.08) | (.13) |
Net asset value, end of period | $ 14.78 | $ 13.75 | $ 10.82 | $ 9.96 | $ 10.08 | $ 9.27 |
Total Return B,C,D | 7.49% | 28.97% | 9.68% | (.64)% | 9.62% | 9.90% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.58% A | 1.60% | 1.55% | 1.49% | 1.45% | 1.50% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.49% | 1.45% | 1.50% |
Expenses net of all reductions | 1.50% A | 1.48% | 1.49% | 1.48% | 1.45% | 1.49% |
Net investment income (loss) | .51% A | .57% | 1.01% | .67% | .52% H | .85% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,793 | $ 6,569 | $ 6,145 | $ 8,254 | $ 12,735 | $ 20,652 |
Portfolio turnover rate G | 121% A | 87% | 94% | 161% | 51% | 56% |
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 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 B
| Six months ended April 30, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.60 | $ 10.70 | $ 9.84 | $ 9.99 | $ 9.18 | $ 8.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - J | .01 | .05 | .02 | - H, J | .03 |
Net realized and unrealized gain (loss) | .98 | 2.99 | .85 | (.13) | .84 | .74 |
Total from investment operations | .98 | 3.00 | .90 | (.11) | .84 | .77 |
Distributions from net investment income | - | (.10) | (.03) | (.03) | (.02) | (.06) |
Distributions from net realized gain | - | - | - J | (.01) | (.01) | - |
Total distributions | - | (.10) | (.04) K | (.04) | (.03) | (.06) |
Net asset value, end of period | $ 14.58 | $ 13.60 | $ 10.70 | $ 9.84 | $ 9.99 | $ 9.18 |
Total Return B,C,D | 7.21% | 28.31% | 9.14% | (1.14)% | 9.11% | 9.19% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.09% A | 2.10% | 2.04% | 1.99% | 1.97% | 2.00% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 1.99% | 1.97% | 2.00% |
Expenses net of all reductions | 2.00% A | 1.98% | 1.99% | 1.98% | 1.97% | 2.00% |
Net investment income (loss) | .01% A | .07% | .51% | .16% | (.01)% H | .35% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 520 | $ 719 | $ 895 | $ 1,110 | $ 1,605 | $ 1,989 |
Portfolio turnover rate G | 121% A | 87% | 94% | 161% | 51% | 56% |
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 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 $.04 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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.44 | $ 10.59 | $ 9.75 | $ 9.92 | $ 9.11 | $ 8.44 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - K | .01 | .05 | .02 | - I,K | .03 |
Net realized and unrealized gain (loss) | .97 | 2.95 | .84 | (.13) | .83 | .73 |
Total from investment operations | .97 | 2.96 | .89 | (.11) | .83 | .76 |
Distributions from net investment income | - | (.11) | (.05) | (.05) | (.02) | (.09) |
Distributions from net realized gain | - | - | - K | (.01) | (.01) | - |
Total distributions | - | (.11) | (.05) | (.06) | (.02) L | (.09) |
Net asset value, end of period | $ 14.41 | $ 13.44 | $ 10.59 | $ 9.75 | $ 9.92 | $ 9.11 |
Total Return B,C,D | 7.22% | 28.27% | 9.21% | (1.18)% | 9.12% | 9.28% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.08% A | 2.08% | 2.04% | 2.00% | 1.97% | 2.01% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 1.97% | 2.00% |
Expenses net of all reductions | 2.00% A | 1.97% | 1.99% | 1.98% | 1.97% | 2.00% |
Net investment income (loss) | .00% A, H | .07% | .51% | .16% | .00% H,I | .35% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,839 | $ 4,340 | $ 3,299 | $ 3,775 | $ 4,139 | $ 4,088 |
Portfolio turnover rate G | 121% A | 87% | 94% | 161% | 51% | 56% |
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 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 $.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, 2014 | Years ended October 31, |
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.81 | $ 10.89 | $ 10.04 | $ 10.19 | $ 9.35 | $ 8.70 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .07 | .14 | .18 | .14 | .10 G | .11 |
Net realized and unrealized gain (loss) | 1.00 | 3.02 | .83 | (.15) | .86 | .74 |
Total from investment operations | 1.07 | 3.16 | 1.01 | (.01) | .96 | .85 |
Distributions from net investment income | - | (.24) | (.16) | (.13) | (.11) | (.20) |
Distributions from net realized gain | - | - | - I | (.01) | (.01) | - |
Total distributions | - | (.24) | (.16) | (.14) | (.12) | (.20) |
Net asset value, end of period | $ 14.88 | $ 13.81 | $ 10.89 | $ 10.04 | $ 10.19 | $ 9.35 |
Total Return B,C | 7.75% | 29.65% | 10.30% | (.11)% | 10.28% | 10.26% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.00% A | .94% | .83% | .89% | .98% | 1.00% |
Expenses net of fee waivers, if any | 1.00% A | .94% | .83% | .89% | .98% | 1.00% |
Expenses net of all reductions | 1.00% A | .92% | .82% | .88% | .97% | 1.00% |
Net investment income (loss) | 1.01% A | 1.13% | 1.68% | 1.27% | .99% G | 1.35% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,179 | $ 1,767 | $ 1,195 | $ 523 | $ 841 | $ 2,341 |
Portfolio turnover rate F | 121% A | 87% | 94% | 161% | 51% | 56% |
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 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, 2014 (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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 3,247,400 |
Gross unrealized depreciation | (1,421,346) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,826,054 |
| |
Tax cost | $ 30,022,679 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2016 | $ (16,000,671) |
2017 | (14,819,668) |
2019 | (169,201) |
Total with expiration | $ (30,989,540) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $(21,003) and a change in net unrealized appreciation (depreciation) of $(12,341) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $19,162,261 and $17,832,585, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
Class of the Fund as compared to its benchmark index, the Russell 1000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .36% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
Class A | -% | .25% | $ 20,327 | $ - |
Class T | .25% | .25% | 18,818 | 415 |
Class B | .75% | .25% | 3,049 | 2,307 |
Class C | .75% | .25% | 23,620 | 3,644 |
| | | $ 65,814 | $ 6,366 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 1,375 |
Class T | 1,221 |
Class B* | 113 |
Class C* | 212 |
| $ 2,921 |
* 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
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Average Net Assets* |
Class A | $ 20,002 | .25 |
Class T | 11,054 | .29 |
Class B | 923 | .30 |
Class C | 6,901 | .29 |
Institutional Class | 2,238 | .20 |
| $ 41,118 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,188 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $29 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $159. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement |
Class A | 1.25% | $ 3,125 |
Class T | 1.50% | 3,289 |
Class B | 2.00% | 300 |
Class C | 2.00% | 1,939 |
| | $ 8,653 |
Semiannual Report
9. Expense Reductions - continued
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 $4.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2014 | Year ended October 31, 2013 |
From net investment income | | |
Class A | $ - | $ 265,618 |
Class T | - | 87,579 |
Class B | - | 8,055 |
Class C | - | 34,963 |
Institutional Class | - | 23,043 |
Total | $ - | $ 419,258 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class A | | | | |
Shares sold | 85,470 | 203,654 | $ 1,225,968 | $ 2,521,952 |
Reinvestment of distributions | - | 23,948 | - | 256,986 |
Shares redeemed | (74,917) | (469,651) | (1,076,201) | (5,674,710) |
Net increase (decrease) | 10,553 | (242,049) | $ 149,767 | $ (2,895,772) |
Class T | | | | |
Shares sold | 99,770 | 51,753 | $ 1,426,069 | $ 642,034 |
Reinvestment of distributions | - | 7,985 | - | 86,093 |
Shares redeemed | (50,199) | (149,714) | (722,448) | (1,818,182) |
Net increase (decrease) | 49,571 | (89,976) | $ 703,621 | $ (1,090,055) |
Class B | | | | |
Shares sold | - | 1,256 | $ - | $ 15,666 |
Reinvestment of distributions | - | 676 | - | 7,246 |
Shares redeemed | (17,197) | (32,653) | (244,526) | (386,596) |
Net increase (decrease) | (17,197) | (30,721) | $ (244,526) | $ (363,684) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2014 | Year ended October 31, 2013 | Six months ended April 30, 2014 | Year ended October 31, 2013 |
Class C | | | | |
Shares sold | 42,058 | 81,393 | $ 590,846 | $ 983,333 |
Reinvestment of distributions | - | 3,063 | - | 32,411 |
Shares redeemed | (29,122) | (73,114) | (410,692) | (871,726) |
Net increase (decrease) | 12,936 | 11,342 | $ 180,154 | $ 144,018 |
Institutional Class | | | | |
Shares sold | 108,931 | 46,209 | $ 1,604,875 | $ 589,474 |
Reinvestment of distributions | - | 2,131 | - | 22,951 |
Shares redeemed | (90,484) | (30,086) | (1,295,941) | (350,773) |
Net increase (decrease) | 18,447 | 18,254 | $ 308,934 | $ 261,652 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Company
Boston, MA
(Fidelity Investment logo)(registered trademark)
AVLF-USAN-0614
1.800655.110
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 23, 2014 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
| |
Date: | June 23, 2014 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | June 23, 2014 |